The Property Downturn is Not Bad News: Comment

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Some analysts have said this week that the projected 10 percent drop in house prices across Australia will kill ILU sales and be the death of the DMF. This is ignorant because it fails to take into account the main driver of demand for village community accommodation, being health – often referred to as not copying with the family home. Falling house values will not affect this.

Large numbers of potential residents are single with few – if any – family members to leave their estate. There are a massive number of them out there; marketers will just have to be more strategic in their messages and sale processes as jittery prospects will be seeking reassurance. Membership to the RVA, ACSA and ACAA is vital in all promotional material; accreditation is something of a guarantee and is increasingly recognised by communities, government and the media.

Bear in mind how many residents say moving into a village community was the best thing they ever did – and should have done so 10 years sooner. Remember also the Sydney property collapse of October 2003 when values fell by 30 percent – many aggressive marketers doubled in size (Ray White just one example) while conservative marketers lost massive market share (read L.J. Hooker and many other boutique firms). And regarding the DMF – it works and offers exception lifestyle value; a reverse mortgage without the risk. Case studies and clarifying the value proposition are essential to any selling kit.

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