While the property market may be cooling, Bartercard property sales are heating up and more vendors are turning to sell real estate through the cash-alternative marketplace to achieve a faster sale.
It is being forecast that in the coming months, buyers will see the stronger opportunities in a falling market, while investors may incur losses and especially if they’re selling a unit compared to a house.
The Alternative: Cashless Trade Dollar components
As a result of the current market position, 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 increase 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 property 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 recently 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.
Bartercard members, whether it’s business owners, developers, builders or investors, welcome sales on Bartercard when they have spare capacity off-peak or when they have excess stock. This allows them to earn Trade Dollars which they then use to purchase business and lifestyle goods from other members while conserving cash. 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.
Bartercard is predominantly cashless trading, with members purchasing everything from printer cartridges to a wedding package or commercial pizza oven, resulting in increased sales. However, Bartercard real estate requires a minimum 20% Trade Dollar component to list on its property site, which allows the buyer to finance 80% and negates the need to pay LMI.
For more information and to start searching, visit bartercardproperty.com today.