PROPERTY isbeing pre-sold to investors up to 12 months in advance in arecent trend that hasseen the local housing industry “verge on the border of crisis”.
Peter Hurst of award-winning Hurst Homes believes the surge in property pre-sales should be viewed as a huge step forward for the city’s growth.
Investors and developersare buying up land before it enters the free marketdue toa skyrocketing demand for housing in Wagga’s newest estates.
Samantha Brunskill,a leading property developer in Wagga, said the increase inmulti-stage pre-sales is a“roadblock” for families looking to build a new home.
“There’s less than a dozen blocks around the citythat people can buy now because they’re all being sold off before they enter the free market,” she said.
“It’s specifically a problem because there’s a lack of development land available that people can build on themselves.”
Pre-sale generally refers to homes that are only partially built or in construction at the time of purchase.
The homebuyer, whether a company, investor or a mum or dad, enters a contract with a building company to buy a house with pre-agreed uponspecifications.
Egan Valuers director Chris Egan said that demand for land is so strong in Wagga thatproperty is often 100 per cent pre-sold by the time it goes up online.
“They take interest from the developers and the private builders and by the time they have a title for the lot, it’s all been bought and sold,” he said.
“I should be able to go to Tattonor Estella and choose to build a house –but it’s just not possible because of the rise in investor activity.”
Mr Egan partly blames councilbecause it is failing to do enough utility headworks in areaswhere“demand is already outweighing supply”.
Pre-sale agreements have long been criticised by experts because the buyer has to foot the costs for any non-essential upgrades to the property.
But Peter Hurst of Hurst Homes, an award-winning Wagga buildingcompany, said the surge in pre-sales should be viewed as a huge step forward for the city.
“We’ve seen pre-sales a lot recently;when there’s good momentum and positivity in the market we see pre-sales become more prevalent,” he said.
“There’s a cross section (of pre-sale buyers)and it varies. At Estella Rise, it’s a broad range of people, it’s not all just builders and investors.
“It’sa big point of employment and a massive contributor to the economy andit further proves at some stage Wagga will be recognised as a massive regional centre.”
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