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Interest Rates are they coming down or going up?

The current housing market is awaiting the savvy buyer. With the consecutive rises by the reserve bank, European PIGS Economy treat, Revolving door Labour Prime Minister and now threat of a coming election.

If you have cash – that is no bank finance required - you are KING. The last three real estate contracts written, in Everton Park and McDowall, have been cash unconditional. The savvy buyers have purchased at well discounted prices. Motivated sellers have taken the offers and moved on.

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Tighten bank conditions, over jealous building inspections, have made these contracts very attractive. Remember when you negotiate on a property there are three levels of negotiations: price, time and conditions. Which one is more important to you, in the current market make your offer as attractive as possible.

I don’t believe that these conditions will be sustainable due to the housing shortage, so if you are cashed up make the move now. This particular mille second in time is a buyers market.

We must do better on housing supply says Swan

Australia must do better in the supply of housing - a supply gap that could grow to 600,000 by 2028/29, Treasurer Wayne Swan has warned.

Mr Swan told a Property Council conference in Canberra that the National Housing Supply Council estimates the country's housing stock is currently short of 178,400 dwellings.

"It seems that the supply of housing in Australia is not as responsive as it could be, and this has been the case for some time now," Mr Swan said in a prepared speech on Monday.

He said reasons for this supply shortage were impediments created by various regulations, slow planning and zoning processes, and complex, uncertain and time-consuming systems for charging developers for infrastructure.

"In the worst-case scenario, it can take as long as 15 years to proceed from the identification of suitable land to a completed house," Mr Swan said.

"We can do better than this."

He said commonwealth and state treasuries and premiers' departments were now fully engaged in the process of designing reforms to improve the operation of the housing market.

"I'm determined to see the Australian government play a role in reforming the housing market for the long term, embedding better practices in planning and zoning and developer charging," he said.

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Mr Swan reeled off a number of initiatives undertaken by the federal government in its efforts to improve the functioning of the housing market.

These included a $6.2 billion national affordable housing agreement with the states, $5.2 million of stimulus money to build more than 19,300 in public housing stock, and a $512 million housing affordability fund.

This is on top of a national rental affordability scheme that encourages institutional investors to deliver low-cost rental housing, the first-home saver account and a more generous first-home owners grant during the global financial crisis.

The government is also committed to $27.7 billion in urban and regional road infrastructure that will help support housing.

"These are all important steps and they will all contribute to improving the functioning of the Australian housing market and, in particular, the supply of low-cost housing," he said.

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Busy busy week!

Open Home Inspection Times for This Week

Busy busy week! find my updated list of properties under contract and OPEN FOR INSPECTIONS for Saturday 5.09.09.

http://www.askmadeleine.com/id14.html

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The Truth About Auctions

The Truth About Auctions

Recently I was at the Madeleine Hicks Real Estate National Elite Retreat where the elite of the elite met to discuss the current market trends.

In the changing market it was a consensus amongst the group that auctions were the best marketing strategy.  This is not my view.

I only auction unique properties or when I am instructed to auction e.g. mortgagee in possession.

Auctions are a seller’s worst nightmare.  The seller losses control. Notoriously buyers come in low and if there are only one or two buyers on the day the seller is pressured into making a decision there and then.  The buyer is expecting an answer, the auctioneer is waiting, the agent is waiting, the crowd is waiting, the neighbours are waiting, and the seller is panicked - forced into making decisions.

The Truth About Auctions

Recently I went with a friend to another agent’s in room auctions to help them through the auction process.  My friends were keen to buy.  I gave them some auction tips, we were one of two interested parties, and we were able to slow the auction right down.  The auction stalled the agent came across and asked them to increase their offer.  I advised them to hold fast.

The agent then went and spoke to the seller.  Reading the non-verbals I could see the pressure mounting around the poor seller.  The agent came back to us.  We said nothing.

Finally, the auctioneer asked for more bids from the floor. Silence.

Going once, Going twice, Sold!

My friends bought the property of their dreams for $20,000 under what they were prepared to pay.

Before you enter into an auction campaign just …ask Madeleine for a second opinion.

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A Day is a Long Time in Real Estate

A Day is a Long Time in Real Estate

On Saturday 8th of August I was lucky enough to be awarded the number one metropolitan Sales Person within the Madeleine Hicks Real Estate Franchise for 2008/2009 for New South Wales and Queensland.  Its the second year I have achieved this.

With this in mind you'd think that I'd know my stuff.  Yeah! I'm the expert!  No way. With the goal posts moving every day I am reminded how much this industry is motivated by emotions rather than pure business rules of supply and demand.

A Day is a Long Time in Real Estate

"Madeleine the property is over priced" ... "I want 4 bed 2 bath 2 car etc and I don't want to pay any more than $$$ and I want it now!" ...  "Madeleine my property is worth $$$$ because I've loved it for so many years and lots of sweat and tears went into this home"...  In the middle of all this emotion is reality and my day consists of wading through the quagmire and finding this elusive reality.

Today I have a truck load of quagmire to get through!!! Wish me luck.

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Basic Economics – Supply v’s Demand

Basic Economics - Supply v's Demand

The market place at the moment is experiencing a lack of stock, as we say it in the industry, more buyers than sellers.  Sellers  are awaiting the warmer months prior to putting their homes on the market.  This seasonal shortage is typical in comparison with previous years.

The one changing force this year is that  the first home owners grant halves on the first of October.  This is putting pressure on buyers to find the right home now before they lose the $7000.00 hand out from the Fedreal Government.

Once again we are seeing multiple offers on properties under the $500,000 bracket. Basic economic high demand low supply prices rise, even in the midst of the current economy.

If your thinking of putting your home on the market, do it now take advantage of these pressure cMadeleine Hicks Real Estate conditions.

For more information ...ask Madeleine 0413 733 617