Some “good news” for FTBs on the front page, one developer is now offering to pay your mortgage for six months if you sign up now (Tyrellstown I think, I hear them advertise on the radio too). The article goes on to list other developers competing with each other on incentives.
Also interesting to note the main section of the IT is 32 pages, while the property section is 38 pages.
I guess we are now definitely into the “Incentive Phase” of the bubble. If I am not mistaken it was about sixt to eight months ago in the US when major incentives were being offered to prespective buyers. I guess we are on course, as a number of people had predicted.
Well I heard him on the radio (today fm matt cooper) and he said he didn’t think the market warrented a cut.
I wouldn’t be surprised if the developer somehow continues to own the properties for the 6 month period as part of the deal or is somewhow avail of tax break/loop hole to offset payments against tax and thus wouldn’t loose too much profit in the long run. They ain’t doing it for the good fo their health which they have stated.
Cutting price is cutting into margin and they wouldn’t like that, even thought he said they were not stuck for money after selling 1900 houses since 2001. This is the only bit I felt he was being totally honest about
We’ll see how long it is before we see developers advertising “Reduced To Sell” type offers.
This is a line in the sand, a watershed I believe.
Yeah listened to matt cooper aswell. builders are very reluntant to reduce their prices as they know that other builders will just start competing aswell. but that will change soon. like how an investor can bail out of an apartment complex by undercutting the other sellers , any stretched builder will drop if he really needs to sell off his remaining units.
i got a bad taste in my mouth reading about all these schemes because in reality what is happening is that they are attracting ftbs to buy property which is going to worth less next year than now. its somewhat immoral. like selling a car knowing the brakes are f*cked.
Also. All this property prices falling…stuff not selling…i am predicting that it will be in the mainstream news by the end of the month. its gonna be a shocker.