Breaking Square | 11th May 2024

I came across this video, (see link below), that I thought may be of interest. It talks to a time where being an owner builder was common, especially after the war and our obsession with architecture. It is quite fascinating to watch – it’s a short video.

Fast forward to today and with regulation and red tape; that is supposed to ensure quality and compliance. However, you have to wonder if all the regulation has facilitated improved quality and compliance. I know from first-hand experience, there is not a single new dwelling that does not experience a leak from the bath or shower or a leaking roof.

It appears quality and workmanship has depleted and with tight margins, some builders and subcontractors are taking short cuts.

So is it possible for a generation to start building their own homes again; I think not and I am not suggesting they should. This is just an interesting look at a time where homes in large numbers were built by Owner Builders and at a time where population growth and birth rates were spiking. I would hazard a guess, the need for housing was very similar as it is today.

So, for all the compliance and regulations we have, why do we have so many issues with defects in our new buildings, it’s a good question, but I am not sure it will ever be answered. Here’s the link if you wish to watch the video: https://www.youtube.com/watch?v=kQcU33KqPns

I spoke last week about the perceived change in buyer’s attitudes towards property and the certain reluctance to make offers straightaway, this change has come about due to the change in the commentary about interest rates and the likelihood they will not be cut for some time and the fringe commentary that they may go up. This chatter has changed how buyers are engaging; however I feel it is just a moment in time and with the RBA holding rates for a period, this will be the new normal and everyone will get on with things.

Some good news, whilst the last several weeks have been slow on the rental front, this week we have seen an up-tick in attendees at our inspections and we expect to have all properties rented by the middle of next week. As I mentioned before in regard to buyers, I think tenants were just taking a breather and are now back in droves.

We continue to be bombarded with emails from buyer agents seeking properties for their clients, they are obviously struggling as well to source properties. The lack of supply is not going away and will continue for the rest of the year. Surprisingly we are now getting emails from mortgage brokers asking to send through any off-market properties we have, as they will pass them on to their pre-approved clients. This is a first for us, I have never had a mortgage broker reach out…

Just quickly, all eyes will be on the Budget next week and I am sure there will be debate about whether or not it is inflationary, along with the tax cuts coming on 1 July. CPI numbers come out in July; these will be closely scrutinised as it will determine what the RBA does in August. These numbers will not be affected by the tax cuts or any budget measures, as it will be too soon to see any impact these may have on spending.

With all of this in mind, it appears the herd mentality is back in play again, and soon a bell will ring somewhere in the universe and the buyers and sellers will return, it happens all the time.

Tomorrow is Mother’s Day; in case you need a reminder. Happy Mother’s Day to every mum. If your mum is anything like my wife, she is the glue in the family, she keeps it all together. Mothers around the world should be celebrated and cherished. So, I hope you have a nice day tomorrow, if you are lucky enough to still have your mother around.

Until next week, stay safe and be kind.