Welcome to The Buzz July Issue 2020

The ‘vacuum effect’

In a recent article Core Logic’s head of research, Eliza Owen discussed the “vacuum effect”. This is a phenomenon where a stimulus, such as Government subsidies, brings forward a decision by potential homebuyers. It prompts them to act immediately. As a result, all the potential buyers, current and foreseeable future, are ‘sucked up’. Thus, their buying activity gets compressed into a short period.

Experienced agents will have seen this occur on the coast in 2008. At that time, the First Home Buyers Grant was doubled from $7000 to $14,000. In the next six months, 5 times more first home buyer purchases occurred than was usual. Consequently, prices for suitable homes jumped. And, in some instances, I was able to negotiate sales more than $40,000 above previous expectation. When the dust settled, first home buyers disappeared for many years.

Last month we looked at the introduction of Homebuilder to the grants and loan schemes designed to stimulate housing construction and sales. And now there is the recent addition of the Queensland Government’s regional home building boost grant (see the link below). It seems likely we will have another ‘vacuum effect” owing to these policies. Proof of this is that land sales have gone ballistic.

How might this impact you?

What impact will these schemes have on you if you’re not thinking of buying your first home or building a home? “None” did I hear you say?

But are you thinking of selling an existing property in a suburb where vacant land is for sale? If so, then your competitor may have up to a $55,000 price advantage. Because that’s how much governments may give to a buyer if they buy that land and build a new home instead of purchasing your property. When resold those properties will still have that start-up cost-benefit. For that reason, you’re going to need some great dialogue and marketing. Firstly, to tempt buyers to buy your home instead. And, importantly, to achieve the sale price you want!

Unfortunately, Government policy on housing and the economy is typically driven by short term desires, such as re-election. Therefore, it’s usually short-sighted and poorly considered. And, as a result, it often fails to achieve it’s intended goals. Instead, it creates many unforeseen side effects with significant negative consequences. As in the above example, there are usually a few winners and many losers.

The “vacuum effect’ is real and will have an impact across many segments of our real estate markets. Most importantly you need to understand how it may affect the market for your property.

Now is a great time to give me a call to discuss. Discover how you can be one of the winners!

Real estate and finance news

A selection of real estate and finance articles are useful reading in this month’s issue.

Check out the latest on:

  • The economic cliff
  • Property sales market forecasts and analyses
  • The impact of COVID-19- now and future

If you are a first home buyer here in Queensland, then things are even better. On top of the previous grants and loans, you can now get an extra $5,000 from the Regional Home Building Boost Grant.

For more information:




 Local News

The latest local happenings:

  • Our new runway is now open
  • The Sekisui appeal denied
  • Where local jobs are at risk

Tips & Advice

Next are some great tips for:

  • How to add value to your home
  • Outdoor living areas

Property Reports:

Finally, learn everything about the market where you live or have an investment:

  • A June Quarter 2020 Sales Report for your suburb/s of interest

For all this and more, see icons below. Now follow the links for your report and to read the full articles.

Thinking about real estate? Please call us to have a chat and discover how we can help!