Bartercard Australia CEO Clive van Deventer (pictured) says a significant jump in investor property sales and enquiries has led to record listings across five of the eight countries in which it operates.
"Australia is particularly a hot spot where we presently have $65 million in listings with a further $35 million plus in other countries, and its allowing vendors to circumvent the real estate agencies and act as private sellers to plunge sales-associated costs," says van Deventer.
Bartercard, a subsidiary of BPS Technology (ASX:BPS) has 250 properties currently listed in Australia, New Zealand, South Africa, the UK and Thailand with an average trade dollar component of 35 per cent. Van Deventer says this equates to potential savings of more than $35 million in cash on real estate for its members.
"Selling a $500,000 property through a real estate agent can attract up to $17,500 in commission and advertising costs, whereas when a vendor sells through Bartercard they only pay a 6.5 per cent cash fee on the digital currency component, which equates to approximately $8000 on a $500,000 listing based on a 25 per cent trade dollar component," he says.
"From an investor's perspective they are reducing their cash outlay and borrowing less from the bank. Extra cash payments they make on top of the cashless deposit reduces the life of the loan, and if they do sell the property for a capital gain they convert the digital currency straight into cash."
Joanne Rahn, property developer and owner of swim and resort-wear label Glamorous Life in Surfers Paradise, recently listed three investment properties on Bartercard's real estate site at around $300,000 each. They were picked up by a buyer in less than 24 hours of listing.
She says the properties, in Brisbane's Bayside area, each included a 30 per cent, or $90,000 trade component in Bartercard's digital currency and are currently under contract.
"I built the properties and was prepared to take a profit in trade dollars if it meant a quick sale and minimal disruption to my existing tenants," says Rahn.
"Because it's largely investors who purchase real estate through Bartercard, there are less inspections and the properties typically sell faster."
The business owner, who has already poured $20,000 of the digital currency into renovating her residential property on the Gold Coast, says she will invest the trade dollar profits from the future sales into further renovations, or reinvest them into the next development.
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