Property has once again become a hot topic after the Reserve Bank of Australia (RBA) slashed rates to a record low earlier this month.
The cut of 0.25 percentage points has provided welcome relief for some homeowners with mortgages, but not all lenders have passed on the full cut to their customers. However, there is a widely held belief among property experts that the RBA may cut rates once more before the end of this year.
The latest rate cuts mean property is looking like a more attractive long-term investment option than term deposits – the Real Estate Institute of Queensland (REIQ) reports an average of between six and seven per cent growth across Sunshine Coast property in the past 12 months compared with less than two per cent on offer through savings in a bank.
Homeowners who are looking to sell will also benefit from the latest rate cut thanks to a slight loosening of home-loan requirements. The Federal Government’s plan to allow first-home buyers to buy a property with a five per cent deposit will also allow more buyers to begin actively looking at property on the Sunshine Coast.
With a drop in listings across the region, those who offer a well-presented property to the market with a holistic marketing strategy are continuing to get good prices for their properties.
The difference between a discreet online campaign that attracts only those who are actively looking for a property to buy, and a comprehensive print and online campaign that attracts a wider range of buyers could be tens of thousands of dollars in the sale price.
CoreLogic RP Data studied the sales history of 850,000 houses over a two-year period, with analysts investigating where each property was advertised, its time on the market, the offer price and the value of the final deal. The study of major cities found Brisbane properties advertised in both print and online had a 12.5 per cent increase in success rate of sales, spent eight fewer days on the market and achieved a 5.8 per cent increase in the sale price.
According to the sales figures at the time, this was a difference of $27,697.
Define Property Agents’ Ross Cattle says the only way to “100 per cent make sure you maximise your price is to use a premium price formula”.
He says this formula is based on covering every aspect of marketing. “These days, it’s a matter of a complete package of online, news print, Facebook, databases, videos, street marketing, good signage,” he says.
“If you really want to make sure you nailed it and got that premium price, it’s simple – don’t miss any of the segments where buyers come from. If you miss one portion of the market, it could cost you thousands and thousands of dollars.”
Data from Enhanced Media Metrics Australia found that of the 1.8 million likely property buyers, more than one million read property content in print or online formats, and all buyers are more likely to read print than online content.
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Key points
- The RBA has slashed rates to a record low of 1.25 per cent.
- The REIQ reports an average of between six and seven per cent growth in property across the Coast in the past 12 months.
- With a drop in listings across the region, those who offer a well-presented property with a holistic marketing strategy are getting the best prices for their properties.
- A study of 850,000 houses over two years found Brisbane properties advertised in print and online had a 12.5 per cent increase in success rate of sales, spent eight fewer days on the market and achieved a 5.8 per cent increase in the sale price.
