11 Mar The Current State of the Real Estate Market
What’s the real estate market in Brisbane looking like today? In this vlog Henry Wong has a quick look at a couple of topics that have affected the state of play, including the Royal Commission and banks lending habits. Here’s the transcript from the vlog:
Hi, I’m Henry Wong for RE/MAX United Vision. We’re here today to talk about what’s happening in the current market. So right now, we’ve just had the release of the royal commission investigating in the finance sector. The banks, insurance companies.
We’ve also seen the banks tighten up on their lending mainly for developments… for investments as well. So what we’re seeing actually is from buyers is that banks are actually… instead of taking a benchmark to measure a buyer’s expenses, they’re actually really drilling it down. As to how much takeaway you have each week, what’s that $100 that you spend every week you take out in cash? All the little nitty gritty stuff.
They’re getting really, really down to detail as to how you spend your money. I guess a good thing is … So that means the banks are more in tune with lending you to what you can afford. Because generally speaking, most buyers severely underestimate how much they actually spend on their living expenses.
So I guess it’s a good thing. Also because of that, you see … Instead of having this many buyers, now we’ve actually got this many buyers. You’re actually seeing less buyers in the marketplace.
So good thing for buyers is that if you’ve got your finances in place, you should have less competition. Now on the other note for sellers … because of all this, we actually have seen a slight correction in prices. Not as much as in Sydney and Melbourne, however there is a bit of a correction in prices, generally speaking Brisbane-wide.
But the good thing is if you’re selling a property, generally you need to buy to move somewhere else. So if you’re selling in the market that you may not get your dream price, chances are whoever you’re buying from … they probably won’t get their dream price either.
So whether the market goes up, goes down, it doesn’t matter when you sell. So on that note, I guess whether you’re buying or you’re selling, you’re doing it for your own reasons. And it doesn’t really matter how the market’s going.