A property person once said to me. “you need to zig while markets zag”.
He was referring to the very obvious trends that develop in residential real estate.
For example, when the first home buyers are out in the market, they are everywhere.
Right now there are two forces combining and exposing a soft section of the market that is usually hot property.
The adage has always been “buyer the worst house in the best street”.
Then you can add your improvements and benefit from the capital gains.
For years shows like The Block fuelled DIY-ers to take on these run-down projects and turn the ugly ducklings in to swans.
But in the current market it is not the ugly ducklings or the worst houses that people are buying.
They are chasing the swans.
With build costs and wait times at extreme levels, buyers are preferring to the comfort and convenience of a finished home.
This is also being pushed by the large volume of cashed-up southerners crossing the border and seeing value in the price differential between the states.
It does lead to the question and pardon the pun but is now the time to land bank a renovator?
Certainly for the first home buyers I have always supported buying a home at an affordable price that you can add value to yourself. Live a bit rough early and let time do some work on the value.
It’s these moments in a market when the savvy buyer moves in a different direction to the crowd. Some food for thought.
Also last week we fare welled a stalwart of the property industry Geoff Easdale.
Vale Geoff and rest in peace my friend.