21 Mar ‘Mum and Dad’ home buyers face settlement risk
The head of a national real estate network has warned that “mums and dads” who paid deposits on multiple off-the-plan properties could be at risk if valuations fail to match prices.
Speaking to REB, Century 21 Australia chairman Charles Tarbey warned of the increasing number of new properties “coming out of the ground” at a time when prices are beginning to moderate.
“They do run a risk. We talked about this very heavily last year. In some areas it can be quite a substantial risk,” Mr Tarbey said.
“In great strong capital cities, the risk is probably reduced, but the reality is there are more and more homes coming onto the market in terms of established homes as well as newer properties, and the demand for those properties is tapering off.”
“If that occurs then you start to get the more worrying concerns which are valuations meeting expectations of the contract price down the track.”
The CoreLogic – Moody’s Analytics Australian Forecast Home Value Index, released last month, found that property price growth is likely to slow across Australia over the coming years.
The cooling property market comes at a time when a record number of new properties are coming onto the market.
The report looked at the top 20 regions for expected unit settlements over the 24 months to December 2017…MORE