The Construction Boom Truth!
Why is NOW a good time to buy without FEAR?
I am visiting the latest house and land estates on the Gold Coast and Brisbane. I have to say these are very interesting times that we are in!
If you are looking to buy a property or listening to the news, the chances are that you know we're currently in a Construction Boom!
But what's really behind it? Is this just the natural market growth, or are there other unique never-seen-before factors driving it?
Unless you have behind-the-scenes insights, it can bring up a lot of market fear!
It raises questions like ... “should I buy? should I wait?”
What is the actual reason behind the crazy market prices?
Let me share where the Construction Boom is coming from ... It's not about inflation of prices. Instead, it's coming from a significant global issue you’ve probably heard about….COVID!
If you have seen my video here, you probably noticed that the properties behind me are under construction, using steel frames which is not the usual building standard.
Steel frames are far more expensive than timber framing; however, timber framings come from Canada yet are unavailable due to the current global crisis. All of Canada's supply is sold to the USA first to fulfil their big property boom.
Developers and builders are currently trying to find solutions to provide quality materials and services and deliver products at reasonable prices. This is where steel frames come in!
Steel frames are indeed more expensive, and we are seeing price increases of over 70% just on frames pushing building quotes of the roof (no pun intended here).
On a positive note, it is termite, mould, damp, and fire-resistant!
Did you know these properties under construction were sold a long time ago? And, that traditionally, builders and developers purchase their land five years plus in advance? However, when the global pandemic hit, guess what ... all their existing land got SOLD at record speed! This is why there are no ready-built new homes for sale. In our industry, if you find one, we call them a "unicorn"!
At Developments Direct, we have exclusive relationships with the strongest, largest, and most reputable builders and developers. It is very interesting, though, when we sit down with them, they are scratching their heads, wondering where they will find the next new land.
Most of our projects bought by our clients are off-market or exclusively through our long-standing relationships.
If you are a buyer wanting to purchase, note that the days off not being 'market-ready, aka pre-approved or ready to go, are long gone. You must be a cash buyer or hold a pre-approval in your hand to be taken seriously as everything sells within hours. Every development stage increases significantly in price, and you can be looking at a minimum of 3-5% price increase just on the land plus another 3-5% for the house.
You will find that if you're a cash buyer and pre-approved, you might get lucky and be able to get in first.
I am heading with this ... unless you have strong established relationships in the industry, it is very tough for buyers. Hence, this is why our clients come to us for our help. We are speaking, seeing builders and developers every single day. We have our ear on the ground and our finger on the pulse.
We understand and breathe the development market!
So, if you (or know someone) are in the market to purchase new and want sound expert advice on how to buy right in a fast escalating market, simply get in touch.
We would love to chat with you and explore how we can help you too!
At Developments Direct, buying New is made EASY!
Warmest Regards
Susana Tuya
Principal, Property Matchmaker & Coach
https://www.developmentsdirect.com.au
𝘞𝘪𝘵𝘩 𝘥𝘦𝘤𝘢𝘥𝘦𝘴 𝘰𝘧 𝘦𝘹𝘱𝘦𝘳𝘪𝘦𝘯𝘤𝘦 𝘪𝘯 𝘵𝘩𝘦 𝘗𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘢𝘯𝘥 𝘵𝘩𝘦 𝘚𝘦𝘳𝘷𝘪𝘤𝘦 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺, 𝘸𝘦 𝘱𝘳𝘰𝘷𝘪𝘥𝘦 𝘣𝘦𝘴𝘱𝘰𝘬𝘦 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺 𝘴𝘰𝘭𝘶𝘵𝘪𝘰𝘯𝘴. 𝘞𝘦 𝘢𝘭𝘪𝘨𝘯 𝘰𝘶𝘳𝘴𝘦𝘭𝘷𝘦𝘴 𝘸𝘪𝘵𝘩 𝘵𝘩𝘦 𝘣𝘦𝘴𝘵 𝘪𝘯 𝘵𝘩𝘦 𝘮𝘢𝘳𝘬𝘦𝘵, 𝘪𝘯𝘤𝘭𝘶𝘥𝘪𝘯𝘨 𝘳𝘦𝘱𝘶𝘵𝘢𝘣𝘭𝘦 𝘣𝘶𝘪𝘭𝘥𝘦𝘳𝘴 𝘢𝘯𝘥 𝘥𝘦𝘷𝘦𝘭𝘰𝘱𝘦𝘳𝘴.
𝘈𝘴𝘬 𝘶𝘴 𝘩𝘰𝘸 𝘸𝘦 𝘢𝘳𝘦 𝘥𝘪𝘧𝘧𝘦𝘳𝘦𝘯𝘵 𝘧𝘳𝘰𝘮 𝘵𝘳𝘢𝘥𝘪𝘵𝘪𝘰𝘯𝘢𝘭 𝘳𝘦𝘢𝘭 𝘦𝘴𝘵𝘢𝘵𝘦 𝘣𝘳𝘰𝘬𝘦𝘳𝘴. 𝘞𝘦 𝘢𝘳𝘦 𝘩𝘦𝘳𝘦 𝘵𝘰 𝘩𝘦𝘭𝘱!