I’m not sure what it is like in your country but holy crap real estate has been mental here in Australia! I don’t really understand it, I don’t get how a deadly virus can change the landscape of buying property and how the prices have increased so ridiculously much! Don’t get me wrong I am super happy for people who are selling for premium dollar because that is our ultimate goal, but when premium dollar is so far out of the realms of normal, it’s a bloody big worry for the average blue collar worker who is fast being priced out of the market. It’s the same with the rental market. There are people being booted out of their homes because sellers want to capitalize on the current market, and that’s all good, but what happens to the tenants? I tell you what happens, they are homeless and living out of their cars. Rents in our particular town have increased so much that even 2 average income earners with a family will struggle to make it all work. This is the devastating consequence of this current market that is sweeping the world. And that’s the other thing, how come this is world wide? I just don’t get it!
Most real estate agents are rubbing their hands together, look at me I sold this property for $70,000 over the asking price, multiple offers blah blah blah but to be honest, any fool can sell a property in this market! Real Estate commissions are ridiculously high, advertising incurred by sellers is high! There are some agents who aren’t charging the earth, who are giving back to the community by reduced fees and pitching in for advertising, but there are more that are not. I find this gross, I don’t care what anyone says no agency is worth $20,000 per property, and you could do 5 property sales in a week if not more! That’s bullshit! So why am I in real estate you might ask? Well to start with it’s all I know and I am well experienced, and my hubby works for developers that wanted me to go back into real estate to sell their land developments. So it was kind of obligation with the bosses.
Argh I will probably ruffle a few feathers and that’s ok, I am just very frustrated at the moment, it’s a daily fight to compete for listings, even in our own office, and I haven’t had a day off in weeks. I can see all this coming to a screaming halt and a lot of people are going to be very financially fatigued. I hope I am wrong, but real estate is cyclical so be prepared is all I am saying. Interest rates will go up again and BOOM without warning there will not be enough money to go around in the household budget. I really hope I am wrong because not having enough money to feed your children or pay the mortgage is super scary!
The other side is if real estate does go to crap, then many real estate agents will be out of jobs. My goal while I still have a job is to get rid of as much debt as possible and find a side hustle! I am a firm believer is diversification and not putting all your eggs in one real estate basket!!