Why do some property owners not want to sell their properties?
Property lawyers are calling on the government to allow the sale of properties as a means of protecting the country from the rising cost of living.
In recent years, there has been a surge in the number of people buying property, with many people looking to sell.
Property lawyer David Broughton says the trend could be damaging the country’s economic health.
“We’ve seen that a lot of these transactions are going to be with the intention of moving into a property that they’re not able to sell for as they can’t get the income and so they have to sell it for less money, which can also be a concern for the economy,” he said.
“It’s something that is a bit of a worry.”
The government has not taken a position on whether to allow this, but Mr Broughson said if the government allowed it, it could potentially be a deterrent to property buyers.
“I think that if you were to say, well, it’s okay for you to sell the property for more than the market price, that would be a pretty big incentive to just not do it, because you’re putting your money at risk, but you’re not really making a dent in the economy as a whole, he said.”
Mr Broughon said the government should be able to decide what is a viable sale and what is not, as long as it is fair to the property owners.
“If you were a property investor in Australia, and you were thinking of selling a property, there would probably be some considerations that you would put into your mind, like, ‘what is the market value of the property at the time I’m thinking about selling it?’, and you’d make a reasonable estimate,” he told Al Jazeera.
“But the reality is there is no legal definition for a fair market value in Australia.
There are no guidelines.
The Government’s housing affordability target, set by the Gillard government, is aimed at reducing the cost of owning a property.”
So I think it’s fair for a government to say: ‘Look, if you’re thinking about buying, please do not sell your property unless you can justify the extra costs associated with selling it at a fair value, because then we’ve got the economic advantage to sell your house for less’.”
The Government’s housing affordability target, set by the Gillard government, is aimed at reducing the cost of owning a property.
Mr Brawton said a property could also be sold to people who are planning to move overseas to buy property.
“They may not be going to the same destination, they may be intending to live in another country, they might be intending on buying a property and are in the process of doing that, so it’s quite a complicated process,” he explained.
“The only way that we can really ensure that we are keeping our housing affordability targets is by giving more help to the people who have bought their home, because otherwise you’re going to see more people coming out of the house.”‘
They’re not going to buy it’The Australian Competition and Consumer Commission (ACCC) said it had received more than 60 complaints about the sale process.”ACCC received over 60 complaints relating to the sale and sale process in Australia in 2017-18, representing a significant proportion of the total number of complaints received by the Australian Competition & Consumer Commission,” the organisation said in a statement.
“This is concerning as a result of concerns that the sale processes may encourage unscrupulous behaviour and undermine the integrity of the sale.”
Mr Trew said it was a serious issue, but not a problem for him.
“You can always sell a property for a lower price if you have a better offer.
You can always buy a property with the best offer and the property goes on sale for a much higher price,” he added.”
There are no problems with me selling a house at the lower price because I have an excellent offer, but I’ll probably only sell it to a couple of people because I don’t want to drive too many people into it, so they can drive down and buy a home that they’ll actually like.”
Mr Fitch said the process could be a barrier to the real estate market in Australia for those who have a “good idea” about a property but are not sure if they want to move there.
“In the last couple of years there’s been a lot more speculation, which is bad for Australia, but also bad for our housing market,” he warned.
“As you can see, a lot people are not going for that kind of house and I think that’s the real reason why the price of houses is so high, is because of speculation.”
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