"Um, what exactly is the 'two-tier market' in Qld?"

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From: Curious Onlooker


Sorry if this sounds too basic, but what exactly is meant by the term "two-tier" market, when referring to Qld?

Cheers,

Curious Onlooker
 
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Reply: 1
From: Les .



G'day CO,

Two-tier means "two-level" - and the term applies to the situation where some (very few, thankfully) developers or marketers put an extra high price on a property (the second level) then onsell it to unsuspecting buyers. The first level is, of course, "normal" price - or the price a similar property would fetch from a person who is aware of the area.

If you wonder HOW this happens, simply consider what your reaction would be if you live in a large city, then just happen to visit a country town. In this town, you might hear of a property that will sell for only $70k (and it's 4 bedroom on half an acre). What would your reaction be???

In that fictitious town, it is possible that a local would not pay more than $50k for it. But, to you, as a visitor, it sounds like a "real deal".

In both cases (country town, or Gold Coast - or ANYWHERE else) the best way to protect yourself is to enlist a separate, local valuer to provide you with a valuation - NOT the one the marketers provide for you. The $150 you spend might be CHEAP insurance. Or at least ask 2 or 3 other Real Estate agents just what kind of price you would pay for (say) a 3br house with dbl lockup, etc. and get an idea of "local" prices.

In my opinion, if a Rental Guarantee is on offer, beware !! (e.g. they guarantee you $250 per week - or $13k per year for two years, but charge you $40k extra on the purchase price) - who's winning ??

Regards,


Les
 
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Thanks Les

Reply: 1.1
From: Curious Onlooker


Funny, it actually sounded more sinister than that .. another form of caveat emptor..

Cheers,

Curious Onlooker
 
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Thanks Les

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From: Anonymous


I am wearing these bandaids on my fingers to remind myself that the 'two tier market' can get your fingers burnt.

( i know some who were burnt so badly they have no fingers, so i am lucky)

signed 'ouch'
 
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