Category Archives: Advertising

MARKET UPDATE 15 NOVEMBER 2013

I’m seeing nothing that convinces me that anything has changed or turned around.  Whenever you see an article telling you differently, please read it all, to the end, where oft lies the truth or a disclaimer!

In my City the Council has foregone $35 million in developer fees to ‘kickstart’ new projects.  If a project can’t stand on its own with those ‘normal’ fees in place and has to rely on the local authority taking a haircut, then the project’s chances of failure are high. I’ll keep an eye on the list of projects that have miraculously ‘come on’ during this amnesty period to see how they fare.  A couple of phone calls and I discovered that many of the projects were going to go ahead anyway, and that the ‘discount’ on local government fees was just a bonus.  Government interference in free enterprise – it never works.

So everything is going UP is it?  Almost every real estate article you read says so so it must BE SO!  No.

Big sale of a site in Southport for 3 million dollars!  Wow!  Whoop-de-doo!  How about the poor schmuck who got his timing wrong when he paid 5 and a half million dollars for it at the very peak of the craziness in early 2007. Add to the obvious loss of 2.5 million dollars the holding costs over nearly 7 years and I wouldn’t be surprised if he watched double that go down the toilet.

Of course there’s always going to be the “odd” sale that surprises everyone. I know that.  But they are rare and there’s always some quirky reason why someone has apparently paid too much. I know of one in a capital city where everyone said the buyer was “nuts”.  But was he?  No-one at the time (not even local guru agents) knew that the blocks of land either side were already held by interests associated with him and that securing the third parcel made the whole piece of land so much more valuable as a height restriction went from 4 to 8 or 10 stories as a result.  Smart I’d say.

I lived at a fairly famous Resort on the northern end of the Gold Coast many years ago because I wanted to try the lifestyle.  6 months was enough. I was ‘out of there’… In the early 1990’s vacant blocks of land (non-waterfront) were changing hands for $500,000.00 and all the “wannabes” lapped it up.  It was fine marketing spin at its very best.  So exclusive and so magnificent was the Resort that today, more than 20 years later, dry blocks are selling for….wait for it…..$500,000.00… Oh dear.

Last but not least – commercial. Tenants renegotiating rents down 50% or more and basically holding landlords to ransom is the business of the day.  My local newspaper is full of “Mortgagee In Possession”, “Liquidator”, “Owner wants out”, “Overseas investor quits holdings” and other negative headlined commercial property for sale. These local agents are so duplicitous it makes me sick.  One one page they talk up the market like its the 2004 rocket sled, and yet at the back of the paper they try and suck you into a BARGAIN as a bunch of poor sods are forced to offload their property as drastically discounted prices.

I rest my case and step off my soapbox for this week.

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ANY FOOL CAN SELL A DOLLAR FOR SIXTY CENTS!

Today I received the following flyer in my letterbox and of course was very interested to know what the property had sold for.  I searched online for the original advertisement and found it advertised at “Range $759,000 – $819,000”.  This is a most ridiculous practice and if any Agent ever suggests it to you – tell them NO!  If you, as a buyer, were confronted with an advertisement like this, where would your first offer lie?  At $805,000?  No, I didn’t think so.  You would treat the lower figure as a price the Sellers MAY accept so you would pitch under that.

Of course that actually happened, with offers starting at around $705,000.00

Good Grief!

Good Grief!

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PROVENCE, S’IL VOUS PLAIT?

Provence-Alpes-Cote d’Azure?  or Providence Rhode Island?

Neither!  Provenance… which is from the French provenir, “to come from”.  The word refers to the chronology of the ownership or location of a historical object, but I like to think it can be applied to residential housing of any age.  Allow me to explain how proper “provenance” can add tens or even hundreds of thousands of dollars to the final selling price of your home.

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UPSIDE DOWN – THE MARKET – 28 NOVEMBER 2012

You just have to laugh at the Sydney Morning Herald (SMH) this morning with their article headlined Sydney housing most affordable since 2009

It quotes the “Housing Industry Association-Commonwealth Bank housing affordability index” as revealing “…the city’s housing is now more reasonably priced, relative to incomes, than at any time in the past decade.”

Where this report really drops itself in the can is with the following statement…”A year ago it took two average full-time wages to affordably service a mortgage for a median priced Sydney house, but that has dipped to 1.84 average full-time wages.”  What on earth does “affordably service” mean?  After you’ve paid the mortgage you can have an overseas holiday every year, send two kids to private school and go out to posh restaurants twice a week or, its baked beans, no holidays and we can’t afford to have kids?  What a load of rubbish…

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MARKET – 19 NOVEMBER 2012

Mortgagee-In-Possession, In Receivership, Divorce, Bankruptcy Forces Sale, Bank Repossession, Overseas Vendor Quitting Market, Major Investor Consolidates.

Over the last 25 years I’ve read, watched, analysed, bought, sold and commented on the realities of the real estate market.

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ACE #1

ACE (Aspect, Contour and Elevation)…amongst other things!

This post will be broken into 2, 3 or more parts and is a rambling recollection of issues I’ve encountered over the years.

Many of the points I’ll raise are still the cause of much grief as people fail to ask, heed or properly interpret professional advice and rely far too much on advertising, promotional blurb and spin.

Talk to your future neighbours.  Don’t be shy. They know what’s going on.

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LEGS IN THE AIR

Really, do you have to do that to get someone’s attention?  Thankfully not when it comes to advertising real estate but I’ve seen some pretty crazy attempts to position a property ahead of the pack.  In Spain for instance, there’s a series of ads where the creative staff were asked at what point do people come to the realisation: “I need a house”. One answer was: “When you’re having sex in the car.”

The Spanish being Spanish (I’ve got Spanish blood – mmm – don’t give me any ideas!) grabbed this notion and ran with it.  A series of ads ensued, so naughty in their original form that they had to be watered down for TV.  Hilarious. (I know you are going to Google to find them, and don’t deny it!)

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ENDORPHINS

People become emotionally tied up in a residential real estate purchase.  Real Estate agents just ‘love it’ when someone shows all the hallmarks of being in love with a property.

Your brain turns to mush and all sorts of uninhibited emotions take over as you stare quietly into the magnificent view, run your hands tantalisingly over the smooth marble finishes and imagine yourself surrounded by admiring friends as they ooh and ahh over your clever and astute purchase.

Remember the sound when a needle falls off an old fashioned vinyl record?  That’s the sound that careers through your head as the realisation you’ve been duped arrives like an unwelcome freight train in the middle of the night.

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