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- Nice views! Higher taxes? 💵& Underquoting 🤔
Nice views! Higher taxes? 💵& Underquoting 🤔
Agenda free insights
Welcome to Property Hack! Shedding light on the confusing world of property!
Underquoting - When the price guide does not give the most accurate pricing 🤔 How to spot underquoting and how is it being addressed.
Downsizing? After nearly 30 years in the suburbs, this couple moved to a Harbourside apartment. Here's how they adapted to the change.
“View tax” - Like a place with views? You may find yourself paying more tax in this part of Australia.
Let’s go!
Underquoting
"I'd like to offer the asking price"
“You’re going to have to do much better than that"
What is it?
Underquoting occurs when a property is advertised at a price lower than it’s expected selling price - with the aim to attract more buyers and increased competition.
Fair Trading (NSW, Australia) says that underquoting laws are in place so that, “buyers don’t waste money and time on property inspections, getting reports and attending auctions for properties that will likely be out of their price range”.
In the UK, business practices such as “bait advertising techniques” are considered unfair and are prohibited, including where a guide price does not reflect what the seller is willing to accept.
The Federal Trade Commission (FTC) in the USA says that, "claims in advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based.”
Ways to prepare yourself:
Comparing the advertised price with recent sales of comparable properties in the area, attend multiple inspections, consider current market trends and seek advice from trusted professionals.
And for professionals, NSW Fairtrading provides guidance here to avoid a fine (that can reach up to $22,000 and a loss of commission).
Downsizing
“Ferry rides to work… those perks help you to forget and not regret”
Meet June and Robert:
After nearly 30 years in the suburbs, this couple moved to a Harbourside apartment. Sixteen years later, they're still happy there.
How did they know it was the right move?
The right time
The ongoing maintenance and house upkeep pushed them to seek a low-maintenance lifestyle. Moving to a strata apartment meant no more maintenance worries, allowing for easier travel.
“Coming to a place with strata, you don’t have to think. The maintenance is taken care of. We could go off travelling and it felt a lot easier to do so.”
Financially, the move freed up capital to further invest.
The right place & area
After 18 months of searching, they’d nearly given up. Then, the agent mentioned a new listing.
“From the moment we walked in, we knew — it ticked all the boxes”.
They felt comfortable purchasing in that particular building; being built by a reputable builder, alongside reviewing previous strata minutes and bi-laws.
The new area came with a range of perks: being closer to the city and transport, great views and lovely harbour walks.
“Ferry rides to work… those perks help you to forget and not regret”
Challenges, transitioning & would you do anything different
Moving to a place with strata meant there was an adjustment; transitioning from a home to then needing to ask permission for things like air conditioning.
“I would have been less frustrated with strata if I’d adopted the right mindset from the beginning”.
Moving to a smaller space meant simplifying belongings - getting rid of things that were not needed - which they felt was liberating.
Parting thoughts: If moving to a new place, focus on all the perks to ease the transition.
Quote for the week:
"Life is really simple, but we insist on making it complicated." - Confucius
“View tax”
Re-named the “View Tax”, Gold Coast Council is in the spotlight after owners of higher floor apartments have received increased rate hikes (some up to 50% higher).
The Gold Coast council in Australia has implemented a controversial "view tax", significantly raising rates for high-rise apartment owners based on floor level. Owners on the 40th floor and above face up to 50% rate hikes, and graduated increases for lower floors. The council claims this ensures fairness across ratepayer categories and reflects property values.
Queensland’s Strata Community Association criticises the move as outrageous during a cost-of-living crisis. Some residents view it as a fair "wealth tax", while others argue it unfairly targets some residents. The changes have sparked debate about equitable rate structures and their impact on apartment living affordability.
Read the full article here
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Information in this newsletter is general in nature. Undertake independent research and seek trusted professionals. Names are changed for privacy.