Themes and Dreams
10 Jul 2020, Lynette McFadden
Here we are in July and the world for many of us continues to offer both significant challenges and unexpected opportunities. It’s relevant to note that one of the biggest questions ( for myself included) is: which of these challenges or opportunities should I truly focus on and which should I leave behind?
Can you envisage the future?
Are you like me and astounded at the choices – and at the constant rhetoric about the economy and our community – or are you one for just moving forward anyway? Remaining pragmatic and purposeful in a sea of uncertainty. At an industry level, and being collaborative by nature, I’m intuitively choosing the latter: to work hard within the current marketplace. And, to be fair, there’s plenty to work with.
Here are some of the themes I’m noticing.
It’s busy out there.
Yes, it is. It may not stay that way, but at this point in time there’s a massive push from buyers to be settled and that demand is creating some very strong results, especially in the auction rooms. Three properties that went to auction at Harcourts gold over a recent ten-day period stand out:
3 Ashdale Lane – 6 bidders and sold for $1,505,000
506 Ilam Road – 2 bidders, “on the market” (selling) at $1,050,000 and additional bidding saw it sell for $1,143,000
7 Wherstead Road – 3 bidders, “on the market” (selling) at $340,000 and sold for $460,000
The position of property owners in all of this is interesting. At a time when many are choosing to wait-out the post- COVID-19-lockdown world, the shortage of properties available for sale (usually referred to in our industry as ‘stock’, a term I use for soup rather than property!) means those actually on the market are getting excellent prices based on scarcity. Markets universally work this way and to those securing the benefits of that, well done.
“I’m not travelling, so I’m definitely buying.”
That’s right, a whole new demographic – mostly would-be first-home buyers who had planned to travel or to take up lengthy overseas working adventures – is now determined to make the most of carefully accumulated savings. Purchasing property is high on the list, in fact, it’s at the top and this is fuelling interest in both new homes in outlying locations and character properties in well-regarded areas (think good schools close by). This is proving a positive in so many ways: earlier access to the property ladder for buyers and large open home attendance numbers for sellers.
“I’ve got to get some investments.”
Yes, at the other end of the property spectrum are those that are wondering and, in some cases, worrying about their retirement futures and therefore looking to supplement their KiwiSaver with additional rental income.
Buoyed by enticing lending rates and disappointed with the corresponding extremely low interest rates for savings, these are active, educated and cautious purchasers. If you are a member of this group, work with a consultant who understands your requirements, appetite for risk and timeframes. Better still, work with someone who actually has investment property (for obvious reasons).
Now, the last of the trends and perhaps the most important.
Many of us have come out of lockdown with a new set of values and thoughts. I’m noticing that people are genuinely trying to be kinder and more connected. Coupled with this is a requirement for more: more service; more value; and not just occasionally but every time. It’s a time for being customer/client-obsessed – and adaptive.
So, are you up to it? Are these the challenges and changes you’ve been noticing?
Remember, it’s all part of a bigger set of opportunities that everyone and every industry can take part in. I’m definitely up for it and here’s a good luck wish if you are too!
Stay warm this winter.