How has COVID-19 affected property development projects?

If rent covers mortgage just dont sell. When project is finished they will have a vaccine or the virus is contained?

also have to look at gst implications if you hold and then change your mind and sell.

 

I was going to put one recently completed unit (project with 4 units) up for sale but have decided to just sit tight and rent them all out instead. The market feels just too jittery

 

I have considered renting as an alternate, but I am not sure if it is a lesser risk. The amount of lay offs expected and government's willingness to transfer the liability of non payments to landlord does not provide any comfort.

Centrelink payment will not be sufficient.

The only respite is low rates.

Is there anything that I am missing?

 

Two homes on the market this week and now opens are banned. Private inspections are allowed.

Yippie. Im obviously gonna get a great price

I do agree with the restrictions though.

 

Our house went on the market just as this hit - two weeks ago (we've just built new and vacated the old house) . So far one cancelled inspection..... and no enquiries.

 

It will stop all the neighbours coming to see who weren't going to buy it anyway.
Anyone who is genuinely looking will still do a private inspection however my main concern is people holding off on buying because they think there are bargains to come if they wait or people just scared off committing at the moment due to all the unknowns in the economy/life/jobs

 

This is what my agent says, that real buyers will come. No sticky beaks.

I'm sure some will hold off and wait for bargains but others who have sold or committed in another way will still want to buy possibly.

I've resolved that I will be fair and reasonable, but not a bleeding sheep to the slaughter. If I don't get something reasonable. I won't sell.

I got 4 real buyers coming this evening. Fingers crossed.

 

@Westminster rea.com said they would refund my marketing fees if it didn't sell. Domain don't offer that yet. Interesting times. I've only gone with Rea.com.

 

Yes they are trying madly to keep their listings up too

 

Containers have 60+ day lead. They haven't seen post CV supply issues. Many Chinese suppliers can't resume supply now to customers out if China as are all locked down for 90 days plus plus ...Chinese factories are now returning and scaling back

I call bs on their claim

 

Not sure about others but we decided to re-start our build on 16 April - we decided there was minimal risk to getting supplies and were ok to build and rent if selling wasn't possible.

We also thought further Govt support would be announced - I thought longer job seeker extension but what is being rumoured to be announced this week may help re new home buyer help.

 

Any update on this??