The south-east Queensland property market has been experiencing a period of upheaval for several years. High volumes of newcomers to the region have led to a property shortage and soaring prices.
Today, the real estate market in Queensland’s south-east is beginning to face a slow decline, yet the impacts of the boom remain for recent buyers. What will boomtime chaos mean for owners in the future?
The challenges of the boom
While the property boom was a driving force in supporting a thriving south-east Queensland economy, boomtime buyers are now beginning to feel the effects of an under-sourced real estate market.
During the property boom, many buyers reported feeling pressured by agents to purchase unconditionally as homes were snapped up quickly. Some buyers were even told they’d be excluded from bidding if they insisted on a conditional contract.
A growing cohort of unconditional purchases meant that clauses for valuations, finance approval, and even building and pest inspections were often voided, leaving buyers in financial trouble.
Buyers facing hardship
Now that the real estate boom has begun to slow, some buyers have been left financially responsible for severe property damage cause by undetected pests or structural flaws.
As a direct result of unconditional purchases, buyers are now forced to pay out large sums of money to repair damage and deficits or live in potentially hazardous conditions.
Other buyers find themselves facing high mortgage repayments and rising interest rates on properties that were sold above their true value. Boomtime scarcity forced prices up with no guarantee of financial return.
What this means for owners
Unfortunately, many new south-east Queensland property owners have been left with nowhere to turn in the face on unclear laws.
Banks and peak real estate bodies consider a building a pest inspection an essential step in the homebuying process, and this is a standard clause in the contract of sale.
However, buyers who have agreed to remove the clause may be legally vulnerable if their home is affected by undetected flaws. These homeowners may not be able to access financial support to repair damage to their homes.
What the experts say
“Your home is likely one of biggest financial investments you’ll ever make,” says Andrew Mackintosh, a veteran building inspector in Brisbane. “Without the building inspection, these buyers have taken a massive risk, and some of them are now facing the consequences. In three decades working in this industry, I’ve never seen buyers forced to take such risks.”
What’s next for Queensland buyers?
Unfortunately, many buyers will now have to face the challenges of boomtime purchasing.
In a post-boom property market, their experiences providing a clear warning about the importance of building and pest inspections for all property purchases.