The Next Level in Black Friday Deals
In what’s billed as the biggest Black Friday deal ever, a Melbourne Property Developer Offers $100,000.
As the housing market cools, developers and agents have been forced to offer sweeteners sometimes worth tens of thousands of dollars, ranging appliance packages and rental guarantees to stamp duty payments.
Caydon Property Group is taking that to the next level by taking part in the global Black Friday shopping event, in what it’s describing as an “industry first”.
From 6am AEDT on Friday, buyers will be able to book one of 100 “VIP appointments” on the developer’s website to “lock in the savings” on one of eight projects in Cremorne, Moonee Ponds, Ivanhoe, Northcote, Preston and Flemington.
Caydon international marketing director Steve Williams said there had already been strong interest in the deal with more than 5000 visits to the website, which he said was “fairly robust” and should hold up under the traffic.
Mr. Williams said across the portfolio there were five apartments or townhouses that had a $100,000 price reduction. “Every apartment has a discount of at least 5 per cent, then some are up to 10-11 per cent,” he said.
Mr. Williams denied the move was desperate. “This is in no way anything other than being innovative and trying out the seasonal approach,” he said.
Sucker Trap
I sense desperation. Regardless, 5-11% off is no super deal. It’s a sucker trap.
Mike “Mish” Shedlock
Australia has a Federal election due before mid May next year. Barring a minor miracle for the incumbent Liberal Party the Labor (opposition) party will take over government. Two key campaign policies of Labor are the removal of franking credits on dividends and negative gearing tax advantages for investment property. Bad news for the Australian stock market and worse news for the property market should they proceed. The 40% declines in Australian property that some commentators are predicting might yet be conservative as the nation moves towards recession.
“Two key campaign policies of Labor are the removal of franking credits on dividends and negative gearing tax advantages for investment property.”
From what I have been reading of politicians from across the world, they are the slimiest beings that you can meet on this planet.
They will promise anything to get elected. Once elected they will promptly forget the promises too. Especially when it is likely to impact the economy. Basic principle for any party is to keep the party (pun unintended) going till they demit office.
Unless you have a system where promises made have to be kept, this charade will continue and promises will remain just that!
I had to look up negative geared, “where rental income is less than mortgage interest costs,” but now it’s clear. Another version of lose money on every unit and make it up on volume, or in this case a greater fool and/or tax write offs.
I learned a new phrase today, so the day is off to a good start. And the laundry just finished, so productivity everywhere :-).
But the tax rates here are high and people hate seeing there taxes go to the government.. Like I said this is the most popular way to decrease that.. It is alright when house prices are going up 10%+ per year.. When house prices top it may soon be a different matter.
“Every apartment has a discount of at least 5 per cent, then some are up to 10-11 per cent,” he said.
Even if price had only doubled in the last 5 years (when ZIRP was in vogue across the world), then also 10% drop means it is 80% higher than 5 years ago. If that is cheap, I have a bridge to sell.
The movie has probably just got started. The only question that remains is what will RBA do? Because if RBA does not intervene (IMHO, unlikely) I fully expect home prices to follow the Hemingway’s way to bankruptcy-slowly at first and then all of a sudden.
We do live in interesting times where you get a housing bubble every decade across the world.
Australia had an open doors immigration policy for Chinese and brought in a lot of middle class Chinese to buy overpriced apartments.
Also despite Australia having a policy of turning asylum seeker boats away and putting these migrants to Nauru island for years to stop the human smuggling and stop the drownings Australia had previously allowed so many humanitarian migrants into Australia that they and their children have been bringing wives and husbands from their native country to Australia through family re-unification so this population has also been increasing and making sure there is demand for rental apartments that fit large families.
Just to keep an obvious bubble going on for a short while many Australians are ready to sell their country.
The government will not let housing go down without a fight.. Many politicians have got rental properties that they have negatively geared the mortgage repayments. Taxes are so high in Australia and the popular way of reducing the tax bill is getting a rental property and negative gear the mortgage. They brought in a first home owners grant. I don’t know if they still have that. But they can always fiddle with that.. Increase the amount of the grant. That brings in the first homeowners and that can be used as their deposit.. Who knows what else the government will do to save the housing market. I’ve been waiting for a bust for years.. We have a population of 23 million and we are running out of livable land.. Wtf. That’s one of the excuses I have heard why house prices are so high..
” We have a population of 23 million and we are running out of livable land.. Wtf. That’s one of the excuses I have heard why house prices are so high..”
That’s the classic one. It’s scary to ponder how well indoctrinated, and outright stupid, one’s so called fellow man would have to be, to believe something so obviously idiotic. In a conversation about selling overpriced units in a high-rise condo tower, nonetheless….. Bloody priceless.
I remember my farming relatives from rural Minnesota touting this logic during an agricultural land boom in the 1980s. Supposedly the growth of Chicago was taking so much land out of agriculture land prices could only go up, which they did until the inevitable bust. These same relatives never recognized the possible connection between their subsidy checks and land values. Agricultural land prices in the area are booming again.
Land prices going up due to “overpopulation,” just may become an at least possible explanation, once global population is counted in trillions rather than billions. But, tah-dah, there are plenty of other natural resources than will limit population growth, long before outright lack of space to cram in another human becomes an issue.
Regardless, until that day, rising land prices will forever remain little more than a measure of how genuinely unfree people are to do as they please with what they have. And to not be forced to subsidize others against their will.
Dimwitted restrictions on utilizing land as efficiently as possible, in addition to outright theft funded subsidies, has turned out to be one of, if not the, most effective means for government to steal wealth, resources and purchasing power from productive people, in order to hand it to their favorite sycophants. That’s the reason why land prices have gone up since governments removed each and every restriction on redistributing wealth as they please in 1971. Not something else.