Victoria: Inspections of occupied properties banned during coronavirus

Good Morning All!

Almost spilled my morning coffee when reading this article on Domain! I would like to hear your thoughts about Victorian ban on inspections of occupied properties during the coronavirus.

How do people suppose to sell their properties if even private inspections are banned? There is only limited amount of properties listed for sale that are in vacant possession, no owned occupied or tenanted. What do you think the impact of the ban is on selling prices?

Here is the link to the article...

Inspections of occupied properties in Victoria banned during coronavirus

 

That means if you have to sell your property you have to kick your tenants out?

What happens if you want to sell your own PPOR though? Do you have to move out first before selling?

 

I was wondering the same... If it is your PPOR, do you need to buy and settle first and move to the new place while selling yours. Great in theory, but not all people have means to do that.

If QLD type of COVID-19 residential tenancy legislation will be introduced in Victoria, it will be now guaranteed that tenants will be kicked out, if the landlord needs to sell.

 

My friend got exactly that notice in an IP in Carlton when he wanted to inspect. Tenant says he needs to be in self isolation

 

So what happens to prices? Will definitely be less stock on the market as everyone will wait for the ban to be lifted.

 

I have a relative with an immune compromised child who has been forced to have inspections as the owner is selling. Legislation seems reasonable to me given the circumstances we are in.

 

On the flipside, what's going to happen when the restrictions are relaxed and all the vacant properties hit the market?

• Will there be sufficient demand from buyers/tenants to sustain prices?
• Will PMs/lessors be more particular in their tenant selection and knock off those tenants who didn't pay rent over the crisis?

 

According to the article in Domain (link below) real estate market is expected to come to a grinding halt after the private inspections of homes already occupied were banned.

Coronavirus: Victoria's property market tipped to slow in wake of new government restrictions

Real Estate Institute of Victoria president Leah Calnan said 95 per cent of properties for sale or rent were occupied, meaning only a fraction of transactions could occur.

This will have a massive impact on everyone working in the industry and probably impacts many regular contributors on this forum as well.

As Rolf mentioned above, hopefully innovation e.g. virtual inspections will create the new way for the industry going forward.

 

I suspect this will depend a lot on who has jobs. If unemployment is high, there won't be as much demand. With such high levels of household debt in Australia, it's hard to see a V shape recovery.

This would depend on the vacancy rate and how desperate the LL gets. I suspect you will be better renting to someone, even if they failed to pay rent during a 1 in 100 year event, than to leave your rental vacant.

 

In VIC, they tried that Gavl online auction thing a few weeks, I watched a few sessions last weekend, people are bidding, but quite a lot of passed-in results. But recently looks like a lot more properties are being withdrawn now.

 

I think I saw an article that only 3 out of like 30 Gavl auctions resulted in a sale (on that first weekend where physical auctions were banned).

 

Banning physical auctions will not have so dramatic impact on the industry than actually banning private inspections all together in the properties that are occupied.

I spoke to my friend a few hours ago. She actually just bought the new PPOR (last week) with the long settlement and is putting her current PPOR to the market. The idea was that she sells her house and hopefully can time the settlements close to each other. She was devastated and in panic. We managed to find the solution for her. She is moving to our holiday house temporarily, so her house will not be occupied and can be put to the market.

 

Interesting to see Vic govt stamp duty revenue after all of this. If you thought the Commonwealth budget was in a bad position!

Maybe this is the kick to the guts they need to move to a land tax. Just think of their revenue in this situation if they had a broad based land tax in place instead of relying on property transactions.

What an incredible restriction they've put in place given the inconsistencies we are seeing every day - who saw the news tonight? Thousands at the Vic market, loads of people at Bunnings and K-Mart.

 

I think they did this to stop the property market from freefalling. Much like NSE circuit breaker stopped the market from trading completely twice last month.

 

I'm amazed how people can go to markets in flocks without caring crap. Technically though, they're going for groceries, so can they be fined? Probably not?

 

selling with a tenant in for me has always been a bad idea anyway. I guess you can't really just test the market nowadays and this will increase the cost of selling (less rent or have to pay rent to move out of your PPOR for a bit). I would be less inclined to stage and would get ready for a very long campaign (good agent with fair commission especially in these tough times)

At the end of the day the buyer pool is really small as pretty much just those who have sold PPOR already or are seriously cashed up. The general view (and I agree) that most properties will be cheaper in 6-12 months time than now.

Buy then sell is too risky (always been my preferred way) and selling now then buy is even riskier (lack of good PPOR stock) unless you are ready to rent for a while and you hate your current place

 

Victorian government to reverse private real estate inspection ban after industry backlash

 

Finally common sense prevails...

Maybe the government realised the value of the stamp duty that they would have missed out...