Community concern about the state of the housing market in Australia has been highlighted by a recent poll of Guardian Australia readers.
They expressed concern over rising prices, higher rents, the lack of new homes being built, and the absence of radical thinking to solve these problems.
As an experienced agency in your area, the concerns expressed in the Guardian survey are common points of conversation between clients and our agents.
There is a simmering discontent with the current state of the real estate market in Australia.
A lot of this appears to be from a lack of government action rather than the continuing trend of rising prices and rents, which are seen as a consequence of the problem.
For example, the Guardian survey found only 9% believed the housing system was “largely working well” and “does not require change”.
Given the importance of residential accommodation, which is the biggest capital class in Australia, this is a significant rebuke of federal and state governments of all stripes.
Nearly half of respondents (43%) believed the system was “fundamentally broken”.
Two-thirds (68%) believed solutions should include “additional support to not-for-profit community housing providers to deliver social housing”. A majority (57%) backed allowing first-home buyers to use super, and 54% wanted a shared equity scheme in which the government used public funds to invest in private home purchases by those who might qualify for a scheme.
The Federal Government pledged $3 billion for social housing last year after negotiations with the Greens. Its election promise to deliver a “Help to Buy” shared equity scheme faces political opposition and has not been delivered.
If you’re considering buying or selling a home right now, many of the solutions are long-term and will not help you. You may wish to instead focus on these fundamental tasks when looking for a new property.
Secure finance
The best way to set a budget is to ask a lender how much it is prepared to loan. Once all the details are agreed upon, you will receive a pre-approved loan that usually extends for a 12-week period. You will then be in a position to make an offer or bid with confidence.
Research regime
You should focus time on researching the market. Only consider properties similar to the ones you want to buy or sell. Comparisons with superior or inferior properties will give you a bad read of the market. You should be confident you know how much your property is worth, and how much you should offer for a target purchase.
Due diligence
Be thorough when inspecting a property. While building and pest inspections are mandatory if you’re buying with a mortgage, they won’t answer all your questions. Sometimes, it pays to seek an additional building evaluation. If you’re purchasing an apartment, you need to know everything about the strata committee and any upcoming works.
Making an offer
Be disciplined when making an offer or bidding at auction. Your market research will serve you well in these circumstances. Always make a fair value offer but keep a little of your money back for any subsequent negotiation.