Southern investors a good influence on the economy
RAINE and Horne principal Joseph Ireland is deep in positive real estate negotiations following an auction over the weekend.
Mr Ireland held an auction on Saturday at the Regent Hotel for three properties which saw three face to face registered bidders and two phone bidders.
A townhouse complex of eight units at Temora St, Gracemere, with four bedrooms each and rented for an average of $260 per week, was listed however was passed in.
A duplex pair with three bedrooms, two bathrooms and one car garage on Diploma St at Norman Gardens did sell through normal auction conditions.
A local community organisation bought the property for $500,000 to house their own residential disability clients.
Both of these homes were ideally designed for investors as they have multiple incomes and it is rare to have them empty, which means they are a lower risk investment.
111 Springfield Drive, Norman Gardens, is a four bedroom with four bathrooms, and while it didn't sell, Mr Ireland is still in negotiations with the Victorian phone investors.
He said there had been an increase of interest from southern buyers and he believed once the state budget was out of the way and Adani was confirmed "we will see more activity”.
In the last six months vacancy rates have tightened, from two years ago when they were almost double figures.
"We will definitely see an increase but I think we will see more buyers and more communication, more buyers from the below the border,” he said.
Some people may not warm to the idea of southern investors buying up our land, rather than locals, but Mr Ireland said southern interest has added benefits.
"They will drive the price and the added interest will move the prices in an upwards direction,” he said.
Mr Ireland reflected on 2005 when prices rose by 30 per cent.
While it would be nice, he doesn't think it will happen again, yet.
"The investors came in and drove the price of the lower value stock up and that drove the rise,” he said.
"The current market is also seeing buyers reluctant to make quick buys.
"Buyers are really doing their research and coming to the market with a pre-conceived idea of what they want and once they do see that, they jump on it.
"Sellers are also cautious to sell their homes because they are worried they won't get what they paid for, particularly if they are really top end homes.”