We all know that different demographic groups search for different types of properties – but how do cultural factors affect property purchasing decisions, and how can you benefit from understanding them?
Blogger: Gavin Smith, director & general manager, State Custodians
Over the past year, there has been a substantial increase of foreign buyers purchasing Australian properties. We also have a multicultural society so the chances of someone from a different culture purchasing your property or competing with you when purchasing is quite high. The key could be to keep these superstitions in mind and use them to work in your favour.
A few property superstitions:
• Numbers with 8 in it are considered lucky (Chinese)
• Number 4 is unlucky as it means death (Chinese and Japanese)
• If your house is facing north or facing traffic (eg. T intersection) it will bring bad luck (Chinese)
• It is unlucky if you can see the back door directly from the front door, good energy will pass straight through the house (Chinese)
• If you have black ants in your home, you’ll become rich (Phillipines)
Selling a property
There are certain nationalities that believe in certain superstitions which may affect where they buy however, not everyone from that culture may take these superstitions as seriously as others, particularly second generation Chinese-Australians.
If you want to appeal to a foreign buyer, you will need to do your research and find out what appeals to them. Apart from the superstitions above, you may want to advertise your property where foreign buyers look and in their own language. For example Juwai.com is one of the most popular places Chinese buyers go to look for property. The founders say Australia is the second most “searched market” on their site and they expect Chinese sales to top $5.4 billion this financial year.
Buying a property
If you are having trouble purchasing a property due to other buyers and investors swooping in, then it may be time to rethink your buying strategy.
People of different cultures may have certain superstitions which affect what property they will look to buy. So you may have better luck with properties that are considered unlucky by others.
If you are able to show a vendor that you are already conditionally pre-approved for a home loan, you may have a better chance of winning that property over other buyers. Back this up with a formal pre-approval you will be ideally placed to get your finance approved quickly and lock your purchase in ahead of other buyers who may take longer.
As the property market heats up, you may have to change your buying and selling tactics in order to be successful.
About the Blogger
Gavin Smith is Director & General Manager of State Custodians and has over 20 years’ experience in leadership roles within the banking services sector. An expert in personal finance, securitised lending and the mortgage industry, Gavin has a Post Graduate Degree in Management from the Australian Graduate School of Management (UNSW), including several mortgage and securitisation qualifications.