Business & Investment

Real estate market cracks you want to avoid

Another day, another story about an apartment on the verge of collapse.

This time around, a 10-story tower in Canterbury, New South Wales.

Recent evaluations from structural engineers Herald Sun The tower is’Major risks‘To the resident.

Collapse will lead to’Catastrophic damage‘To the other two apartments nearby. There are already obvious signs of cracking.

The horror story for the inhabitants reflects Sydney’s Mascot Tower and Opal Tower in 2018/19.

Both towers were evacuated for similar reasons. Investors lose everything. Residents lost their homes without assistance.

One of the largest beneficiaries of budget spending on COVID (state and federal combined) was the large construction sector.

Whether it’s a home and land package or an unplanned apartment, we’ve already seen the value of land skyrocket in new real estate.Buyers jump on Home Builder grants.

However, chasing newly built real estate poses a great risk to investors.

Grants that bribe homebuyers to buy dangerous long-term investments aren’t worth it.

The problem is not limited to Sydney and apartments.

Last year there was a letter from a reader who preyed on this. He bought a brand new townhouse.

I have a new property that I bought unplanned here in Melbourne and is covered by a 7 year builder warranty …

Still, all year round, they suffer from the extreme challenge of having them attend to solve maintenance problems such as roof leaks, hanger bedroom dropouts, and tank leaks.

When you pay a lot of money for a dilapidated new construction, you want to take care of the property and make it last longer (I bought the new construction to avoid maintenance and peace of mind, but this and this builder company just had a problem) Such

Not sure how to get them to attend to fix maintenance issues at once?

It’s covered by a builder’s warranty-an unplanned purchase warranty, but they don’t seem to care at all?

Of course, the truth is that they don’t care.

Like everything else in the development sector, insurance is mandatory in Victoria, but it’s not worth the written paper.

There are numerous loopholes in it. In my experience, making money for repairs is very difficult and completely impossible.

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It is paid only as a last resort.

When a builder dies, disappears, or goes bankrupt.

Second, there is the problem of oversupply, especially in Melbourne.

Months of strict blockades, mandatory repressive vaccines on the horizon, many residents leaving the city, no international students flying, and city vacancy rates at record levels After the deployment of the apartment apocalypse when reached, it’s hard to date when everyone improves.

It’s not short-term, but it’s true.

Especially for developers of large apartments.

This sector is in trouble.

This is one of the reasons the state government is pushing international students back to Australia.

Who else intends to occupy a high-rise empty tower and a new tower under construction?

Earlier this month, my good friend Pete Wargent in Buyers Buyers compiled a list of the “dangerous zone” suburbs of Sydney and Melbourne.

Suburbs where there is a risk of oversupply of apartments.

A warning for investors to steer clearly.

please look:

Don’t get me wrong here.

There is a lot of wealth to be made from property, especially if you have insider knowledge of how to time a cycle. As well as information about exactly what, where and when to buy.

It shows exactly how to do this through equity and real estate investments. Cycles, trends, forecasts..

However, for now, I will repeat the lesson again.

If you want to make money from investing in the real estate market, don’t buy a brand new home or apartment.

Wealthy people do not get rich by owning a building.

They get rich by owning the land.

Good luck,

Catherine Cashmore Signature

Catherine Cashmore,
Editor, Daily Reckoning Australia

PS: Australian real estate expert Catherine Cashmore reveals why she thinks we’ll see the biggest real estate boom of our lives in the next five years. Click here for more information.

Real estate market cracks you want to avoid Real estate market cracks you want to avoid

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