Properties which nobody wants could offer the best returns, if you are willing to take the plunge

Terrified of building costs, tight supplies and high interest rates, buyers are avoiding properties that made money for generations of homeowners.

Renovating an historic or run-down home takes courage but can be a potential gold mine.

The residential market in 2023 is most unusual. Prices are rising even though interest rates are also increasing. Up to a third of buyers don’t need a mortgage and – nobody wants to do any renovation work!

The blowout in building costs, supply difficulties and sluggish response times from some local councils have combined to create a market in which the perfect property is the one that is perfectly ready to inhabit,

But for those willing to take the plunge and renovate, the rewards may be lucrative.

In today’s episode we hear a top buyer’s advocate tell of how renovation work can make a major difference to the price of a property as we enter an exceptional period of demand.

It’s a case of a “contrarian investing opportunity” mapped on to the residential property market.

Who is the guest?

Dean Berman of Berman Buys, a Sydney-based buyer’s agency.

Why him?

Berman is a top buyers’ advocate who has also challenged the percentage based fee approach in his industry by operating with the same flat fee since 2018.

What are the topics this time?

The “renovation scared” market;

High-yielding regional properties;

Buyers’ advocates and how they charge;

Property investors and the new high-end super tax.

Question of the week

In relation to the looming extra tax on unrealised gains in super over $3m which property holders are going to face, how about this? Councils value properties to assess rates to be paid. If this valuation is done every two or three years, couldn’t the difference between valuations, act as an acceptable capital gains figure that can then be taxed?

Step 2. As a person cannot sell a bedroom to pay the tax, could the tax debt then become a

debt that is similar to HELP (HECS).

Step 3. If the property is not sold until after death, then the government gets all that is owed to them. Would it work?

Questions always welcome to the podcast, via [e-mail]