Now is the time to sell any regional property 'with flies on it'

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on October 21, 2021
Now is the time to sell any regional property 'with flies on it'

Regional markets have cashed in on the great Covid migration, but now is the time to sell for investors in the bush, according to one expert.

Executive Chairman of Raine & Horne, Angus Raine, said a robust residential market presents regional and city property owners with a perfect opportunity to sell a property with any encumbrances.

"Every property has features that will appeal to buyers. However, some houses and apartments in regional Australia and even our capital cities may tick fewer boxes based on size, style and location," Mr Raine said.

"It might be that an apartment has no parking or balcony, it's a tiny bedsit, or it's a house located on a main road or across from a railway line.

"A bull market smooths out the detractors and gets properties moving.

"However, this situation won’t last forever, and with talk that the banking regulator might pull the reins further with more borrowing limits, it’s time for regional owners considering a sale to make a move."

Mr Raine is referencing the macroprudential policies APRA due to take effect next month, which will affect the borrowing power of potential buyers. 

Mr Raine's sentiment is reinforced by NAB's most recent quarterly survey. 

The report from NAB stated that, "the survey is also pointing to a market that has passed its peak rate of growth after the COVID-led dip in 2020."

Recent internal communication of a major Queensland real estate agent - not Raine & Horne - observed by Savings.com.au shows agents are marketing homes to potential buyers under the guise of 'get in before the regulation comes'. 

Regional markets cash in on COVID migration

It's been well documented the trend of locked down residents moving regional to escape restrictions. 

According to Raine & Horne, properties in regional towns such as Bathurst, Tamworth and Wollongong with 'deal breakers' are selling in days rather than weeks or months.

Principal of Raine & Horne Wollongong, Matthew Ivanoff, says a shortage of listings in the Illawarra makes it the perfect time for owners to sell a property with a few issues.

"The exodus of buyers from Sydney in the wake of lockdowns continues, and if a property in Wollongong has a shortcoming and it is marketed correctly, then the chances of achieving a high price and a rapid sale multiply," Mr Ivanoff said.

"It’s hard to put a value on what you’ll get for a home with a few limitations. But with listings down 10% compared to this time last year in our region, apartments without balconies or houses on busy roads are selling in days rather than weeks."

Co-Principal of Raine & Horne Bathurst, Michelle Mackay, said properties with some limitations are 'probably' selling twice as fast currently as they would in a softer market on the Central Tablelands.

"Even properties that need plenty of work are selling faster right now, because of listing being down about 80% compared to what we usually carry. Virtually everything is selling before auction and above expectation," Ms Mackay said.

"Indeed, more vendors recognise that the strength of the market now is a great opportunity for them to sell these properties."


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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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