NRAS properties overpriced: Buyers agent Patrick Bright

Buyers agent Patrick Bright says he would avoid properties being sold under the National Rental Affordability Scheme which have seller commission fees set too high.

Bright says NRAS properties should be valued lower than what they are being sold at.

“I wouldn't touch an NRAS property for several reasons. And yes the valuations should be a lot lower,” Bright tweeted.

Property Observer noted banks have been refusing to lend on some NRAS properties saying they are overpriced given hefty spruiker fees – some say as much as $25,000.

“$25,000 for an intro to a developer is in my opinion a complete rip off and it’s just being passed onto the buyer,” Bright wrote on linkedin in further comments on the Property Observer article.

“(I would) love to see a planner justify how that would be putting your client’s interests ahead of your own.

“I am sure the FPA (Financial Planning Association of Australia) would come up with an argument though as they have done pretty well to water down FOFA (Future of Financial Advice reforms) from what it should have and could have been. As per usual lobbyists get to the pollies and the public continue to suffer.”

Property commentator Margaret Lomas recently write that re-sellers can receive a $25,000 plus commission to sell NRAS properties which inflate the price.