In a cooling property market, more vendors are turning to sell real estate through Bartercard, a cash-alternative marketplace to achieve a faster sale.
While experts forecast the coming months will present the strongest opportunities for buyers in a falling market, investors are most likely to incur a loss and seven times more likely to do so if they are selling a unit compared to a house. According to news.com.au and a data-led property analysis from CoreLogic, approximately 29.2% of Brisbane units sold in the June 2018 quarter were at a loss, and Brisbane’s slice of lossmaking resales Australia-wide was at its highest in almost four years.
Consequently, more investors are turning to Bartercard to sell at the full price by factoring in a ‘cashless’ Trade Dollar component into the sale which currently averages 30% of the price. Investors can then use these Trade Dollars to offset a range of cash costs from raw materials and equipment to development, electricals and renovations.
Bartercard’s Property Specialist Carl Hassard said Bartercard listings are on the uptick and defying market trends – often selling quickly and at the asking price. He said Bartercard’s property site contains listings at a mix of price points.
“Earlier this year we settled 16 apartments we sold off the plan for a developer in Brisbane which helped him get his construction finance.”
Breaking into the market
Using Trade Dollars to break into the current property market at a lower cash price is a double win for Bartercard members and their families. One New Zealand member helped his daughter to purchase a $475,000 house in Yarrabilba, Queensland, by covering the $125,000 Trade Dollar component. She was approved for a $350,000 cash loan to secure her first home.
To earn Trade Dollars, Bartercard members, who are largely business owners but also developers, builders and investors, welcome sales on Bartercard when they have spare capacity off peak or when they have excess stock. Bartercard has a mix of members across almost every industry including development and construction.
In 2018, Bartercard opened its property market across Australia and New Zealand that lets New Zealand-based buyers secure investment property with a 20% deposit instead of the required 35% in New Zealand. Many use Trade Dollars as their deposit, and finance the rest without the added cost of lenders mortgage insurance (LMI).
Bartercard’s property site has over 220 listings worth over $130 million which includes nearly T$35 million in Trade Dollars.
Whilst Bartercard is predominantly cashless trading, where members are exchanging everything from a hamburger to a wedding package, Bartercard real estate requires a minimum 20% Trade Dollar component to list on its property site. This enables the buyer to finance 80% and negates the need to pay LMI.
For more information and to start searching, visit bartercardproperty.com.