I have been a building consultant for 16 years advising people before they buy a home, townhouse, unit etc. My business covers the entire greater Sydney area and well business at the moment has never been better. Enquiry is through the roof and we can't keep up with the demand. Normally a time to think about expanding right!. Well I'd love to think its all going to keep going on, but just as easily as it arrived in a the form of FHOG (first home buyers grant) it will go. Prime Minister Rudd is in control and what he says for the moment goes and what he says is that the FHOG extension will be lifted because all good things come to an end. As much as I like the current boom I have been in business long enough to know I have to brace myself for the next couple of years.
Lets have a little look at this latest boom. According to the banks First Home Buyers account for 25% of the loan market. My own business stats show similar. My big conveyancing clients are flat out, valuers I know are flat out, real estate agents in those sub $500k areas are flat out. Agents are telling me about record numbers of people at open for inspections. One house I recently inspected in Sydney's south was listed in that magic price range. The house was according to the agent a perfect start for first home buyers (according to my inspection a basket case) but still managed to exceed the agent's and owner's expectations by over $30,000. More like a first home buyers frenzy!
What will happen when FHOG ends? Not much I suspect. I should plan a break but no, I better hold on to all my money!
