Jim Byrne Real Estate Property News

How to sell your home for more

2011-04-17T16:04:00.000-07:00

How to sell your home for more
By Rebecca Mitchell

In most cases, once the decision has been made by a home owner that they want to sell, they usually want the sale completed quickly and with a minimum of fuss and bother. After all, keeping your home clean and tidy at all times and then having strangers traipse through at any time of the day or night can get a little tiring. So what can sellers do at their end to make the sale process happen quickly?

Research the marketplace
The first step is to educate yourself by researching the market and, more importantly, your competition. Attend open homes to check out other properties for sale in your local area in the same price bracket. What makes them appealing and what turns you off? Listen to comments from other people at the inspection. Don't just rely on the asking price though. It is paramount you research recent sales too. Sold prices are a true indication of realistic property values.

Pre-sale preparation
Having your home presented well is one of the main things any home owner can do to ensure their property sells quickly and for a good price. Depending on the budget, there are a range of things that can be done to spruce up a property and make it more appealing to buyers. With enough hands and the right advice you may even have the place sale-worthy in one weekend.
If your budget is limited then cleaning and de-cluttering are the first steps - all you need are some cleaning products, a little elbow grease and a ruthless eye. Where necessary, wash down walls and ceilings. If carpets are very dirty consider hiring a steam cleaning kit or employ a professional if the budget allows. Use floor rugs to hide bad stains. The next step is to de-clutter. The goal is to make rooms look bigger by removing unnecessary furniture and knick knacks that make a room feel overdone and messy. For inspiration check out furniture catalogues and design magazines. Consider adding inexpensive design accessories such as scatter cushions, lamps, picture frames and fresh flowers.

With any house sale it is paramount the kitchen and bathroom look clean, fresh and neat. Remove excess clutter from bench tops. Don't overlook inside the cupboards though. Any interested buyer will want to check cupboard space so it's no good having a clean exterior if inside your cupboards is dirty and messy.

If your budget stretches a little further then you might consider minor improvements that can be done quickly by a home handyperson. A fresh coat of paint can make the world of difference to tired walls and ceilings and will get rid of any lingering smells. Updating old and damaged blinds and light fittings will instantly lift a room that is looking a little dated.

A complete bathroom or kitchen renovation is not only costly but takes time. Sometimes replacing one or two items such as tap ware, bathroom vanity or shower screen, along with a fresh coat of paint, can instantly freshen these rooms. Don't overlook or neglect your outdoor areas. Hit your local nursery and stock up on pot plants - you can always take these with you when you move. Use flowering annuals to add splashes of colour and indoor plants to add life to dark shady areas of your garden. Your entry should invite buyers to inspect further so don't overlook your front door and entry hall.
If you have a larger budget but are short on time, employ the professionals. A pre-sale stylist can cast a professional eye over your home and provide impartial advice. They can assist with furniture hire and storage if some of your belongings need to be removed temporarily.

Your first open home
Once you have completed your pre-sale makeover and employed a real estate agent to take care of the sale, the next step is to prepare for the open homes. If you are selling in winter get rid of these stale, musty winter smells by opening doors and windows early in the morning. Once the home smells fresh, close them up and turn on heaters so the home is warm and inviting for visitors. Use fresh flowers to add colour and sweet, natural smells.
You should not be present during inspections (unless the agent expressly asks you to). It can put buyers off making them feel like they are imposing. If you have a dog, take them with you. Where possible, leave parking spaces free around the property for buyers. You are spending a lot of money on advertising and it's a shame if people are turned away because they can't find a park.

Finally, your goal is to ensure that your property presents at its best and is price comparable to others for sale. The rest is up to your real estate agent who, through a well devised marketing campaign, will attract buyers to inspect and work hard to negotiate a quick sale. Good luck and should you be considering selling please contact our office for obligation free advice and guidance.

Rebecca Mitchell is a property styling and presentation expert based in Sydney's Northern Beaches.

Financial matters to consider when buying your first home

2011-03-21T16:23:00.000-07:00

Financial matters to consider when buying your first home

21-Mar-2011 Courtesy of the REIV
First home buyers have dropped recently as interest rates have risen, assistance has dropped and prices have also risen. This makes it even more important to be aware of the many costs associated with purchasing your own home when working out your budget – after all you want to have as much available for the actual property.
Financial assistance
In addition to the $7,000 first home owners grant those buying or building a new home can access thousands more before 1 July 2011. Check with the State Revenue Office to ensure you understand the eligibility requirements.
Borrowing costs
Before beginning the search for a new home, you should ascertain how much you can afford to borrow then obtain loan pre-approval from the bank. When combined with your savings the amount you borrow has to cover more than just the cost of the property, such as the loan establishment fee, mortgage insurance and stamp duty.
Fees will vary from lender to lender, so be prepared to shop around for the best loan to suit your needs.
Stamp duty
In Victoria, stamp duty on a property is currently can be as high as six per cent depending on the value of the property. In the middle of the year the Government has promised to cut it by 20 per cent for first home buyers.
Valuation report
It may be worthwhile obtaining an independent valuation report on a property to indicate its current market value. The valuation must be conducted by a Certified Practising Valuer.
Legal costs
Obtain assistance and advice from a Solicitor will help you navigate through the contractual process. Fees are negotiable, so shop around and compare rates.
Building and pest inspection reports
Undertaking such a report may save you thousands of dollars in the future and will highlight to you the need to undertake work on the property and possibly make allowances in your budget for it.

Interest rates on Hold

2011-02-28T20:08:00.000-08:00

According to the Reserve Bank, "The global economy is continuing its expansion, led by very strong growth in the Asian region. Commodity prices have risen further over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative."

"Australia's terms of trade are at their highest level since the early 1950s and national income is growing strongly. Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices. In the household sector thus far, in contrast, there continues to be caution in spending and borrowing, and a higher rate of saving out of current income. The effects of the natural disasters over the summer have reduced output, but production levels should recover over the months ahead, and there will be a mild boost to demand from the rebuilding efforts as they get under way."

"Asset values have generally been little changed over recent months and overall credit growth remains quite subdued, notwithstanding evidence of some greater willingness to lend. Business balance sheets generally are being strengthened, and the run-up in household leverage has abated."

"The labour market firmed in 2010, with unusually strong growth in employment and a decline in the rate of unemployment. Most leading indicators suggest further growth in employment, though most likely at a slower pace. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn."

"Inflation is consistent with the medium-term objective of monetary policy, having declined significantly from its peak in 2008. These moderate outcomes are being assisted by the high level of the exchange rate, the earlier decline in wages growth and strong competition in some key markets, which have worked to offset large rises in utilities prices. Production losses due to weather are temporarily raising prices for some agricultural produce, but these should fall back later in the year. Overall, looking through these temporary effects, the Bank expects that inflation over the year ahead will continue to be consistent with the 2-3 per cent target."

REIV 01/03/2011

New government announces changes

2011-01-18T15:27:00.001-08:00

New government announces changes

The Minister for Planning, Matthew Guy, has announced a number of changes to government policy.

The government has decided to retain the Growth Areas Authority, with broader powers. In addition, the government plans to overhaul the role of Vic Urban, including selling off a large amount of their $450 million land holding, moving the timing of GAIC so that 100 per cent of it is deferrable to statement of compliance, and maintaining a commitment to an 18 month PSP process.

UDIA has been actively pursuing similar policies.

Three months of little change for renters

2010-11-28T18:41:00.000-08:00

29-Nov-2010

The metropolitan rental market continues to be in a state of imbalance, with vacancies more than outweighed by renters.

The rental vacancy rate for Melbourne in September was 1.4 per cent, a minor reduction compared to June when it was 1.5 per cent.

In the inner city the vacancy rate improved from 1.1 to 1.4 per cent; in the middle suburbs it reduced from two per cent to 1.8 per cent; and the outer suburbs retained the tightest rental market, with a 0.7 per cent rental vacancy rate compared to 0.8 per cent in June.

The lack of available rental homes continues to drive increases in rents. According to the Office of Housing, the rent for a three-bedroom home has, depending on the location, increased by between 3.9 and 11 per cent over the last year. The comparative figure for a two-bedroom unit or apartment is a rise of between 3.1 and 8.3 per cent.

There continues to be no improvement possible in the short- to medium-term.

Conditions in the regional Victoria rental market was very similar to the metropolitan one, with a rental vacancy rate of 0.7 per cent in September compared to one per cent in June.

The Bendigo region continues to have the lowest level of available rental homes, with a vacancy rate of 0.2 per cent compared to 0.4 in June. In the Geelong region it dropped from 1.3 per cent in June to 0.9 per cent in September and in the Ballarat region there was a small improvement from one to 1.2 per cent.

Weekly Market Comment, November 22nd 2010

2010-11-23T14:30:00.000-08:00

November 22nd

According to the REIV we are at the start of the busiest 4 week period in Melbourne Residential auction history. Whilst there were over 1000 auctions gazetted for the weekend, as is becoming normal, many were not reported. 893 auctions were reported and we saw an average result of 59%. As an overall clearance rate for the week, this estimate will be close but probably revised down possibly 1 or 2 percentage points. Total sales were also fairly low at only 1047 reported for the week.

There are another three weeks of auctions meant to be in excess of 1000. Add this to the usual private sales for the week and we should see total sales of around 1400 per week. I would hazard a guess it may end up being closer to 1200 per week. It is definitely a buyers’ market at the moment.

However, good property still sells very well. The auction of a 3 level warehouse apartment located in Ascot Vale and was quoted at $550,000 - $595,000. Warehouse apartments have become hugely popular, and seem to sell well in all types of markets. This property in particular had a great floor plan and had some ‘wow’ factor about it. The auction was opened on a genuine bid of $500,000 and announce on the market at $605,000. There were five bidders in total, which for this market is strong competition. The comparable were showing that the property was worth low $600,000’s, the property sold at $656,000.

I notice the media are still talking about low quotes. One of the reporters even saying “if you want a fair idea of what the house you want to buy at auction is worth, add up to 15% on the advertised price and you might be somewhere near the final result”. That is absolutely ridiculous. You could end up paying 20% more than a property is worth. They still have not got it yet! The media and even government departments like Consumer Affairs still want to have a say in how a property is priced. For some reason they just don’t get it. The vendors’ agent is contractually obligated to assist only the vendor. No legislation will ever stand up to scrutiny that weakens the position of the party who is paying for assistance over the party that is not.

Furthermore the media are not really looking at one of the more important changes to legislation. Section 55 of the Estate Agents Act is being changed. The rules previously required a Real Estate agent, his relatives, or employees, to undergo a full independent assessment by the director of CAV with supporting documentation involving a written valuation by an independent Valuer if they wanted to purchase any piece of real estate their agency’s selling. The process is long winded and penalties for breach are serious.

Now the safeguards that were in place have been hand balled to the vendors solicitor or conveyancer. Most people in this profession would have absolutely no idea of what is a fair price or not. I wonder if these professions even have professional indemnity insurance to appraise the value of a home. It is bizarre that the Minister for Consumer Affairs is more worried about cutting down on paperwork than safeguarding vulnerable consumers.

Next weekend we have the State Election. Whilst the outcome may change a few things, the uncertainty may play heavily on the market. If we have anything close to a hung parliament like our Federal politicians are currently enduring then we are in for some interesting times between now and Christmas.

Article courtesy of JPP Buyers advocates www.jpp.com.au

Most home buyers to pay investor rates of stamp duty this weekend

2010-11-15T00:40:00.000-08:00

Thousands of home buyers seeking to purchase one of the 3,020 homes up for auction between now and when the polls close on 27 November will face high stamp duty rates due to bracket creep.

REIV CEO Enzo Raimondo said that at the last election four years ago, a discount for the principal place of residence was introduced; however, it cuts out at $550,000 and has not been adjusted even though property prices have increased significantly.

"Four years ago the median house price was around $400,000, so it made sense to cap the discount; however, the median house price is now $565,000. This significantly reduces the benefit of a policy designed to help average home buyers.

"The failure to increase the discount for a principal place of residence means that someone buying a home worth just over $550,000 is paying an extra $3000 in tax for no sensible reason.

"For example, stamp duty on a home sold for $550,000 today is $24,970, yet if you pay one extra dollar — $550,001 — the stamp duty jumps to $28,070. Why?

"The current stamp duty rates are unfair and need to be reduced.

"The commitment on Thursday to cut stamp duty rates for pensioners shows that with the right policies, the state government can improve housing affordability and that reform is possible.

"John Brumby cut stamp duty four years ago and, given the tax on an average home has increased by 25 per cent in four years, there is no reason why can't do it again and equally no reason why Ted Baillieu can't match him," Mr Raimondo concluded.

Article Courtesy of REIV

Weekly Market Comment

2010-11-15T00:05:00.000-08:00

November 8th

Clearance rate plummets to 61%! What will happen to the property market?

Simple, it will slow down for the next six weeks then take off again in March next year. Good property is still selling very well at all levels of the market; from the multi-million dollar mark to the excellent investment options that are out there.

45 Dickens Street in Elwood sold under the hammer for $3.335M after 4 separate bidders fought out an epic battle. 800 sqm of land with a beautiful period home. On the other end of the scale, 5/202 Lennox Street Richmond, a delightful 2 bedroom renovated apartment, quoted low at $450k+ (this style of quoting is soon to be outlawed) went on the market at $520k and sold under the hammer for $539k. A very good price for any investor.

There are now 4 main factors slowing the market down. All of which are temporary and will probably be low priority factors by February or March next year. Then the market will do what it does every time our economy goes into overdrive. Prices will sky-rocket.

We have federal politicians who have no idea how to handle the parliament yet. This year’s election still has no real winners. And this makes the average mom & dad nervous. Wait until we have a bill that Julia Gillard really needs to get passed. If Ms Gillard needs to “buy” the Greens vote, but can’t afford it, then she may have to compromise with the Liberal party instead. That will make for very interesting governance!

Secondly, we have a State election here in three weeks, and the commentators are predicting another hung parliament. Won’t that be fun!! As many voters move away from the Labor party, unfortunately some of them vote for the Greens. If the Greens candidate does not get up then the vote goes back to the Labor party through preference distribution!!

Thirdly, we have interest rates going up. They have reached 4.75% and this puts them in an “average” category. They are not excessively high nor are they historically low. This is the greatest indicator of where price will go in the short term. As our economy strengthens, the RBA cash rate goes up and house prices increase. Whilst there is always a short term hiccup, overall property prices will rise sharply: probably starting about March next year.

Finally, the banks themselves are the fourth factor. When was the last time three out of four banks did not put up their own variable rates in the same week the RBA raised the cash rate? Only CBA have bumped their rate and the press are eating them alive. The indecision of the other “three pillars” will also be weighing heavily on people’s minds.

All these factors, except Australia’s growing economy will be sorted out by early next year. There is now a six week window for canny investors to get into the market before the jump in the first half of next year. If you purchase well now, you should have excellent growth throughout 2011.

If you are interested in purchasing a property this year please give us a call.

Article Courtesy of Ian James JPP Buyer Advocates www.jpp.com.au

Display Homes as an Investment

2009-11-13T20:42:00.000-08:00

Did you know...

Display homes can be great for investment for the astute buyer.
Because the home you are buying has all the bells and whistles you are able to depreciate a good deal of chattels such as Ovens, Cook tops, Alarm systems, Carpets, and so much more.

1. You will have a guaranteed tenant giving you a 7% return on your investment and the builder will hand the property back in excellent condition.

2. Builder’s usually want to extend the period of the lease if the display village has a longer life.

3. You can sell the home after the 2 to 3 year period as the display village comes to an end and at which point the home will have increased in value and still be like new.

4. Another option is to let the property once the builders lease is coming to an end.
We have become the Display Home Specialists for the South East and would be happy to discuss with you further opportunities to purchase Display Homes and assist you in all aspects of Real Estate.

We currently have a number of displays for sale in the South Eastern suburbs.

Only a few are listed below:
Rawdon Hill Constructions
Burbank Group of Companies
Carlisle Homes

Why wait?
Contact Wendy Byrne on 9707 0400

Thinking of selling that block of land you have been holding on to!

2009-11-13T16:48:00.000-08:00

Why not contact Wendy Byrne?

Wendy has been selling land developments in the Southeast for the past 7 years. After working for developers like AV Jennings, in The Chase Estate Berwick and Arena in Officer, Wendy has gained an understaning for land that most estate agents sales people cannot match.
So if you are thinking of selling why would you contact anyone else?
Ring now to discover what that gem you have been holding onto is worth.

2009-10-08T21:11:00.000-07:00

FREE Roof Insulation Up to $1600.00 *
AUSTRALIAN GOVERNMENT ENERGY EFFICENT HOME PACKAGE
BE QUICK… DON’T MISS OUT – AS THERE IS LIMITED GOVERNMENT FUNDING $$$

The Energy Efficient Homes Package will install ceiling insulation in up to 2.9 million homes.
This practical step will help households reduce their energy use, cut their power bills by around $200 a year, and increase the comfort and value of their homes.
The Home Insulation Program offers ceiling insulation worth up to $1,600 to owner-occupiers, landlords and tenants.

The program targets homes that are currently un-insulated, or have very little ceiling insulation and were built before the mandatory thermal performance requirements under the Building Code of Australia were introduced commencing in 2003.

If the total cost of installation is less than $1,600 there will be no more for the householder to pay. This will be the case for most households. If the cost of the insulation is more than $1,600, the householder will ordinarily have to pay the difference, or the full amount if they are ineligible.

The program commenced with its announcement on 3 February 2009 under a rebate scheme. From 1 July 2009 to 31 August 2009 there were separate arrangements for owner- occupiers and rental properties. This program now covers all eligible households and is in effect from 1 September 2009 to 31 December 2011 or until the date when Program funds have been fully allocated, whichever occurs first.

Householders who wish to participate in the program should read the Program guidelines before arranging insulation.
The insulation must be installed by an insulation installer who is registered on the Australian Government’s Installer Provider Register.

The $1,600 insulation assistance is an alternative to the $1,600 solar hot water rebate. Householders cannot access both $1,600 assistance packages for the same home.

There are guidelines that need to be read and understood that cover:
· who is eligible
· who is not eligible
· technical requirements for installation
· how to arrange installation and who can install

For more information visit www.environment.gov.au/energyefficiency/insulation/index.html
Or call Energy Efficient Homes Package Call Centre on 1800 808 571.
* Conditions Apply ■

Home Buyer Show opens in 4 weeks!

2009-09-03T21:03:00.000-07:00

Discover the smart way to finance, find and buy your next home or investment property at the upcoming Melbourne Home Buyer Show from Friday 2 to Sunday 4 October at the Melbourne Exhibition Centre, Southbank!It is only a matter of time before interest rates go up and the Government grants will be phased out next year – so if you‘re looking to buy any property in the next 12 months you simply can‘t afford to miss the Home Buyer Show. Independent experts will show you how to take advantage of what could be the best buying conditions for a long time. Here are just some of the show highlights:
Seminar Topics include: All you need to know about securing the First Home Owner Grants; Top 10 mortgage tips and traps you need to know; Starting from scratch – a beginners guide to investing in property; How to negotiate a property purchase and bid at auction; How to pick the next property hotspots in Victoria and the best suburbs to buy in and more! Click here to view the full timetable.
Dedicated Property Investor and Apartment Buyer Zones plus our huge New Development Map and Free Exhibitor Seminars. Click here for full details.
Get up close and personal with Australia‘s leading property, finance and building experts in the new ING Lounge with the Experts Feature. It‘s a unique opportunity to fire questions at people in the know on your specific issues as you chill out on big comfy lounge chairs. Click here to view the full timetable.
Over 120 exhibitors will showcase the latest apartments, new homes, house & land packages, off the plan developments, land estates, home loans, property inspection companies plus a wide range of New Products, Show Specials and much more!

Adults $15 for tickets at the door or just$10 for website bookings.Concession $12 for tickets at the door.Children FREE under 16 years of age when accompanied by an adult.Ticket includes FREE entry to the Trading & Investing Seminars & Expo next door (save $15).

Its Our Birthday!

2009-09-02T19:02:00.001-07:00

Australian Residential Markets Continue to record solid gains in July

2009-09-02T18:41:00.000-07:00

RP Data – Rismark Home Value Index Release
Over the first seven months of the year Australian home values increased across every capital city, rising by 5.9 percent nationally.
Based on Australia’s largest property database, owned by rpdata.com which includes roughly 145,000 sales for the first seven months of 2009, Australia’s housing recovery has continued in the month of July with solid across-the-board capital gains.
According to the market respected RP Data-Rismark Home Value Index, Australian home values rose by +0.9 percent in the month of July 2009. This brings total capital growth in the first seven months of 2009 to 5.9 percent.
Underpinned by historically low mortgage rates and only small rises in unemployment, Australian home values have now risen 1.8 percent past their February 2008 peak.
Rpdata.com national research director Tim Lawless, said, “Not only has Australia’s residential property market outperformed the other major western markets, it has also provided superior returns compared to shares, commercial property, superannuation, hedge funds and private equities. Australia’s residential market has been further supported by low mortgage default rates, at just 0.6 percent, compared with 5 percent in the US and 3 percent in the UK.”
“Every mainland capital city has experienced solid growth during the first seven months of the year. “ Mr Lawless said.
Melbourne and Sydney home values have led the charge in 2009, rising by 8.5 percent and 6.6 percent respectively. Darwin is the strongest of all the capital cities, with home values increasing by 10.8 percent. Brisbane (+3.8 percent), Canberra (+5.4 percent), Perth (+2.5 percent) and Adelaide (+1.9 percent) have also experienced gains. Perth is no longer the laggard of Australian housing having outperformed Adelaide in the year to date.
Continuing the trend observed in the second quarter of 2009, houses (+1.1 percent) have outperformed units (+0.5 percent) in the month of July. In the three months to end July, house values increased by 2.4 percent while unit values rose by 1.6 percent.
Rismark International managing Director Christopher Joye said, “Notwithstanding headwinds associated with the withdrawal of the first time buyers boost in December, a steepening yield curve that is gradually driving up the cost of fixed rate loans, and the RBA’s shift to a tightening bias, we believe the housing market will grind out further modest gains over the course of the next 12 months.”
Mr Joye said “Home values are now increasing steadily in all areas including Australia’s most expensive suburbs. This has eviscerated the popular myth that the recovery was being driven exclusively by first timers at the cheaper end of the market. While first time buyers did initially furnish the early momentum, upgraders and investors have now taken over the baton as we anticipated. This is reflected in the superior performance of houses compared with units since the first quarter of 2009.”
After a long delay, the ABS’s house price data has finally fallen into line with the RP Data-Rismark findings. According to the ABS, detached houses experienced 4.2 percent growth in the second quarter of 2009. As expected, the ABS was also forced to make substantial upward revisions to its first quarter estimates as well. The ABS’s ‘compositional bias’— whereby record numbers of first timers buying cheaper homes gave the appearance of a big house price decline in the first quarter based on their stratified ‘median price’ index—reversed out in the second quarter with the large 4.2 percent (positive) correction.
In contrast, the RP Data-Rismark Index, which is reported by the RBA in its Statement on Monetary Policy and removes these compositional biases using a hedonic regression model, includes all property types (the ABS excludes apartments, semis and terraces, which are up to 30 percent of sales). Based on the RP Data-Rismark Index Australian dwelling values actually rose in the first quarter by 2.6 percent and by a lesser 2.3 percent in the second quarter of 2009.
Importantly, the RP Data-Rismark Index was the first to identify the recovery of Australia’s housing market in February 2009. All other index providers have now fallen into line.
National rental yields have remained largely unchanged with the gross annualised rental yield for units being 5.2 percent while house rental yields are slightly lower at 4.4 percent.
While there has been some media reporting that the RBA was concerned about a house price bubble, Glenn Stevens, the Governor of the RBA, poured cold water over these allegations in recent testimony to Parliament.
Following a series of questions about whether Australia was in the grip of a house price bubble, Governor Stevens responded, “I never used the word “bubble” [in his previous speech]…but I noticed it has been freely used by various other people who reported the speech.” Stevens continued: “Relative to mean income, [Australian] dwelling prices have actually declined since about the end of 2003…I thought that showed that you could have an adjustment here in a way that was not really disruptive – unlike some of other adjustments that we are seeing in other countries.”
Dr Malcolm Edey, Assistant Governor of the RBA, reinforced these remarks in a subsequent speech, commenting: “Australia experienced its last major housing boom in the 2002–2003 period. For a number of years after that, the market went through a period of correction, when house prices were mostly either falling or were rising more slowly than incomes. This was also a period when construction of new housing was fairly subdued. Hence, the twin problems of overpriced housing and overbuilding that occurred in the United States in the run-up to the crisis were avoided in Australia.”
*TECHNICAL NOTE: Readers should be aware of three technical points. First, the monthly RP Data-Rismark Hedonic Index compares month-to-month index results. For example, the first quarter of 2009 index results compare the end of March index with the end of December index. Another way to measure index returns is to combine all the months together in a quarter and compare them to the previous quarter’s pooled index. So you would combine all sales in January, February and March and compute an index value. You would then compare this to the pooled October, November, and December index value. The problem here is that because many home sales are reported by the Valuer Generals offices with a 1-3 month delay, the sample sizes in the more recent months are smaller than the earlier month. So in the first quarter of 2009, January’s sales will dominate because there are more January sales than February and March. In practice, however, there will in the end be a much higher number of sales in February and March. This is the approach used by the ABS. To overcome this problem, RP Data-Rismark treats each month separately. The other issue is that the ABS uses a stratified median price index. If more lower valued homes are selling because of an increase in, say, first time buyer activity, median price indices can report lower returns when in fact house prices be rising. RP Data-Rismark’s hedonic regression method overcomes this problem. Finally, unlike the ABS Index, which excludes terraces, semi-detached homes and apartments, the RP Data-Rismark Hedonic Index includes all properties.
City by City Summary
Sydney Sydney home values increased by 6.6 percent over the first seven months of 2009 – the third strongest performance of any mainland capital. House values rose by 7.2 percent over this period compared with unit values rising 5.4 percent. Gross rental yields in Sydney are outperforming the national average with houses returning 4.5 percent (national 4.4 percent) and units returning 5.6 percent (national 5.2 percent).
Melbourne Melbourne is the second best performing capital city market with home values up 8.5 percent over the first seven months of 2009. House values are up 8.7 percent and unit values are up 8.1 percent. Melbourne’s median house value is 19 percent, or $112,000 lower than Sydney house values, reflecting a significant value differential. This may be one of the reasons why Melbourne’s housing market performance has been so strong. Melbourne’s rental market hasn’t kept pace with capital growth however, with rental yields now the lowest of any capital city. Melbourne houses are returning a gross yield of 4.2 percent and Melbourne units are returning a gross yield of 4.8 percent.
Brisbane Despite the fact that South East Queensland remains the population growth epicentre of Australia and the city is home to some of the largest infrastructure projects in the nation, growth in home prices has been relatively subdued. Home values are up just 3.8 percent over the first seven months of ‘09 compared to the national increase of 5.9 percent. Market conditions are improving, however, with houses and units taking just 29 days and 26 days respectively to sell. Brisbane’s unit values, at $349,666, are the most affordable of any mainland capital city providing a very strong value proposition to potential buyers.
Adelaide Adelaide home values have been relatively flat over 2009, recording growth of just 1.9 percent to July. In 2007 Adelaide was one of the best performing cities with growth in housing prices peaking at 24 percent for the 12 months ending December 2007. The Adelaide unit market has well and truly outperformed houses, with unit values up by 4.5 percent over the first seven months of 2009 (compared with a 1.3 percent increase in house values).
Perth Perth housing values are finally improving, recording a 2.5 percent increase over the first seven months of 2009. Perth values still have some way to go before recovering, with home values about $25,000 lower than the 2007 peak. Market conditions have improved, however, with houses and units selling much quicker than they were a year ago. Over the June quarter houses averaged 32 days to sell (compared with 59 days last year) and units averaged just 25 days to sell (46 days last year).
Darwin The northern capital continues to show strong growth with the market seemingly unaffected by the Global Financial Crisis. Values are up 21.3 percent over the last year and over the last five years value growth has averaged 15.4 percent per annum. The rental market has kept pace with housing values and Darwin is still providing the highest rental yields of any capital city.
Canberra Canberra home values have increased by 5.4 percent over the first seven months of 2009 which is just slightly lower than the national average. Houses are outperforming units with house values up 5.8 percent over the last seven months and unit values up by just 3.7 percent. The Canberra rental market is still very strong with rental yields the second highest of any capital city after Darwin. Canberra houses are providing a gross rental return of 5.1 percent and units are returning a gross yield of 5.7 percent.
Ends. Additional information – please contact Mitch Koper at RP Data on 0417 771 778 or Christopher Joye on 0414 980 264.
Key statistics, tables and graphs available in the PDF (185kb).
www.rpdata.com

What is the role of a real estate agent?

2009-08-26T16:19:00.001-07:00

What is the role of a real estate agent?

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Agents understand that buying or selling property is as much a matter of the heart as the head. Drawing on their vast property expertise and knowledge of your area an agent will:
Provide a realistic indication of the value of your property.
Help you decide whether to list the property for sale, put the property out to tender or to auction.

Organise, attend and record prospective buyers at open for inspection days.

Manage enquiries about your property.

Provide access to more potential buyers via their own prospect database.

Handle sale negotiations on your behalf and strive to achieve the best possible result.
Advise on and coordinate the marketing of your property, including preparation of flyers, floor plans and photography.

Prepare a professional advertising program for newspapers and online.

Prepare a Contract of Sale.

Provide guidance on conveyancing, legal and financial services.

www.realestate.com.au

Estate agents gear for bumper spring season

2009-08-24T20:44:00.000-07:00

Real estate agents can look forward to a bumper spring selling season, statistics from RP data today revealed.
According to the property information provider, nearly 34,000 pre-listing reports, known as Comparative Market Analysis or CMAs, have been prepared by estate agents in the last two weeks, a 5 per cent rise on July’s pre-listings.
RP Data executive general manager David Williams said today’s data also represented a 36 per cent increase on this time last year.
“CMA activity has been trending upwards since the start of the year, signalling a dramatic increase in pre-listing activity and industry compliance,” Mr Williams said.
Other recent data releases from RP Data also point to healthy market conditions.
The national weighted average clearance rate is nudging 80 per cent and property values have increased by 4.5 per cent over the first half of 2009.
http://www.rebonline.com.au

Attention All Landlords Preparing for Tax Time!

2009-08-19T21:17:00.000-07:00

What can you claim?
This year the Tax Office will be paying particular attention to investors with regards to:
1. Rental Properties
2. Dividends and Interest
3. Sales of Investments
4. Avoiding dodgy tax schemes
5. Savings for Retirement
It is important that you take the time to careful review your accounts and seek independent professional advice to assist you with preparing for tax time to avoid mistakes and costly fines.
Following is an overview of what can be claimed*. Remember, you need to have documentation to support all of your claims.
Advertising for a Tenant – This is a claimable expense if you have incurred advertising costs.
Body Corporate Fees – These are most commonly paid quarterly and cover the running costs of the building. It covers repairs, insurance, gardening, communal lighting, pest control, etc. This is a deductible expense.
Capital Works – This deduction is known as the “Special building write-off” and is based on the actual cost of construction to the owner. Building construction costs can be claimed and include engineering, drafting, architect fees, surveyor fees and excavation costs.
When a new owner is unable to determine the cost associated with building construction, an estimate can be provided by a qualified person such as a quantity surveyor.
Structural Improvements include extensions, alterations and improvements constructed after 26th February 1992.

Cleaning/Gardening – This is deductible and includes internal and external cleaning. Owners who do the cleaning themselves can only claim the cost of materials, not their own labour.

Commissions and Management Fees – Commissions and management fees are deductible and are usually charged as a percentage of the rent.

Depreciation – This is essentially a deduction for the cost of furniture, fixtures and fittings based on the asset’s effective life stipulation in the Depreciation Schedule. You can obtain a Depreciation Schedule from a suitably qualified person such as a quantity surveyor. This is often overlooked by property owners and can provide excellent tax deductions.
Example of depreciable assets:
· Air conditioning units (excluding ducts, pipes and vents)
· Lights, both fitted and freestanding, and including shades
· Removable floor coverings, rugs
· Garbage bins and compactors
· Window coverings
· Dishwashers
· Electronic security assets, intercoms
· Freestanding furniture
· Heaters, ceiling fans
· Hot water systems (including solar hot water heaters)
· Refrigerators, freezers, stoves, cook tops and range hoods
· Swimming pool filtration and cleaning systems
· Television sets, DVD players
· Washing machines, dryers.

Insurance – Insurance on building, contents, public liability and landlord insurance are deductible.

Interest – Interest on a loan to purchase, build, improve or repair a property is deductible. The purpose of the loan must be income-producing purposes.

Legal Expenses – These are generally incurred when a tenant defaults on rent and includes filing fees for the Small Claims Tribunal.
Office Supplies – This includes stationery, rent books, postage, and a percentage of computer costs can be deductible.
Pest Control – Pest control is deductible.

Rates – Rates, including council, water and sewerage, are deductible.

Repairs – Repairs are deductible subject to the following definition. “Repairing” is restoring or replacing the item to the condition it was in before it deteriorated without changing its essential character.
Any other repair, which improves the function or extends its life, may be considered an improvement rather than repair and is not an immediate deductible expense.

Travel – Travel is deductible if used for the collection of rent, repairs, inspections and preparing the property for new tenants.
Included are motor vehicle travel and airline travel as well as accommodation, car hire and meals. If the rental property is in a different town to the taxpayer’s residence, travel must be pro-rated to the actual number of days spent attending to the property.

The Australian Taxation Office is increasingly using data matching to check on claims made by taxpayers. However, the ATO does make mistakes. Since the Australian Taxation System works under “self-assessment”, it is up to you to be able to substantiate and prove you are entitled to any claims you make. The best way to do this is to organise your receipts for your rental property so you get everything to which you are legally entitled. ■

* This is a summary of important items that can be claimed and is not a full comprehensive list.

Add us on Facebook!

2009-08-18T21:35:00.001-07:00

Follow our group on Facebook-

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Add comments, testimonials our ask general questions about the Real Estate Market!

PROPERTY PRICES RISE

2009-08-17T18:31:00.000-07:00

Resilient housing market bucks overseas trends!
___________________________________________

Indications of stabilisation in the Australian residential housing market as strong. The first quarter of 2009 saw Australian home prices increase. This is exciting news for the property market, which is buckling the dramatic downward trend seen in many overseas markets.

An April report release by RPDATA ( http://www.rpdata.com.au/ ) saw house and flat prices rise by 1.6 percent in the March quarter, with the growth occuring in February at 0.9 percent and March at 0.6 percent.
The positive outcome followed modest 3 percent falls in value of capitial city homes during 2008. largely due to mortgage rates peaking at 9.6 percent in August.
Improved housing affordability has been the main driver behind the price increases. According to the RP Data's director of Research, Tim Lawless, while the boost to the First Home Owner Grant (FHOG) certainly sparked demand , and the supply of available properties has been low, the dramatic drop in interest rates has been the key factor.

The first homebuyer sector represents less than 30 percent of all property sales, while the 3 percent interest rate as at May 2009 is the lowest offical cash rate seen for 49 years. As a result, the ratio of total household interest payments to disposable income has fallen rapidaly from 15 percent to 10 percent according to Christopher Joye, Managing Director of Rismark International.
Both Sydney and Melbourne achieved growth of 2.4 percent in Median house prices, while Darwin home values grew by 2.8 percent. Sydney's median rose to $514,695 while Melbourne's rose to $426,423.

Melbourne also recorded the shortest average time on the market for houses, with the average home selling in 41 Days, 14 Days less than the national average of 55 Days. Brisbane enjoyed modest growth in the first three months of the year, with Median house values up by 1.4 percent.

The figures highlight the importance of keeping a close eye on the facts and maintaining an objective and balanced perspective amdist the deluge of negativity that is bombarding are airwaves.

House Hunting the Easy Way!

2009-07-19T17:54:00.000-07:00

Trying to find the right house to buy or rent can be a frustrating,
time-consuming affair. At fi rst, looking for a new home can be fun,
but as time passes and you become foot-weary inspecting one
home after another it can become a tedious chore.
However, Jim Byrne Real Estate has an easy way to fi nd you the
ideal home, one that will fi t the bill and facilitate finding the home
you want.
A search facility called Premium Tracker, which has been designed
by experts, has been set up on Jim Byrne Real Estate’s website that
enables purchasers to look for a home on the web. The facility offers
purchasers a far wider range of search criteria than other similar
sites.
Buyers can enter any one of a number of details that will enable
them to locate a home. For example they can specify how many
bedrooms and bathrooms they want, or how many car spaces, and
whether or not they want a lock-up garage or a carport.
Among other things, purchasers can specify the price range, which
suburb or suburbs they are interested in and whether they are selling
a home and whether or not they need fi nance.
The agency’s Principal, Jim Byrne, told Property News that one
problem facing both purchasers and tenants when they were looking
for a new home was the huge amount of choices facing them.
“Some people fi nd it daunting to face such a bewildering array of
properties. Rather than scroll through an endless number of homes

on some sites we give them the opportunity to key in those aspects
of the property they believe are most important. Then they can review
only those dwellings they know will suit them,” Jim said.
“When they’ve entered their search criteria, as well as looking at
properties already listed, they can be sent an email or SMS advising
them when a suitable home is put on the market.”
Asked for his opinion of the state of the market, Jim applauded the
Federal Government’s decision to extend the First Home Owners Boost
(FHOB) and said the decision would not just help fi rst homebuyers but
strengthen the market across the board.
“We strongly believe the grants have not only reinforced the lower
end of the market but also other sectors. The fact that houses in the
cheaper bracket have held their prices and in some cases actually
risen has seen a fl ow on effect, with many properties in the mid-range
also holding up well,” Jim said.
The First Home Owner Grant (FHOG) scheme initially paid a grant
of $7,000 to eligible fi rst homeowners but late last year the Federal
Government announced a First Home Owner Boost (FHOB). It doubled
the grant to $14,000 for those buying an established home and
trebled it to $21,000 for those buying a new home or building their
fi rst home.
The boost was set to expire at the end of June but in the May
Budget the Federal Government announced it was extending it for
another six months. The grants will continue as they are until 30
September and then from October until December will be reduced
from $14,000 to $10,500 for established homes and from $21,000
to $14,000 for newly constructed homes.
If you are buying, selling or leasing remember the team at Jim
Byrne Real Estate comprises experts with many years experience in
real estate. They can guide you about the best way to approach the
market and if you are a fi rst homebuyer they can also advise you
about which benefi ts you are entitled to.
In Victoria, the State Government is also making a contribution to
the First Home Owners Grants.
In regional Victoria the First Home Owners Grant for a newly
constucted home can be upto $36,500 but only for a limited time.
To find out more or visit the State Revenue Office Website –
www.sro.vic.gov.au

What is the role of a real estate agent?

2009-07-13T19:11:00.001-07:00

What is the role of a real estate agent?

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Advertising Your Property

2009-05-26T17:25:00.001-07:00

There are many ways to advertise your property. While it is important to get the right advertising mix, facts show that:
9 out of 10 people use the internet to search for properties to buy*
40% of enquiry about your property will be generated from your online advertising^
Most people spend only a small proportion of their marketing budget online
Some people don't realise that there are many different ways to advertise your property online which can significantly increase the number of people who will see your property.
realestate.com.au is Australia's No. 1 real estate website and gives you almost double the number of property seekers than any other site in Australia.

Did You Know?
Online advertising products such as Guaranteed Top Spot, eBrochure and Feature Property can increase the number of people who see your property – and the amount of enquiry.
See Advertising your property online for more information.

Nielsen Online, Market Intelligence, March 2009
Did you know: most people still spend less on their online advertising than they do on traditional forms of advertising.
*Nielsen Online, Australian Property Report, 2008
**Unique Browsers are the number of individual visitors to a websiteeach month. Even if someone visits a few times, they are onlycounted once. Yes - that's a lot of people visiting realestate.com.au!

Realestate.com.au -Facts & statistics

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How To Understand Property Cycles

2009-05-14T16:30:00.000-07:00

'Over the Long Term Property Values Increase'

Understanding property cycles is one of the biggest challenges in real estate.
Many novice investors believe that having read a few articles on the subject or done some basic research they know what is involved. However, property cycles are not as straightforward as some authors would have investors believe.

The key to investing in real estate is timing. As any experienced stock market or property investor will tell you, it’s all but impossible to pick when a market has peaked or bottomed.
There are always those who will tell you they ‘picked the top of the market’ or ‘got it right when it bottomed’. But, the reality is, it rarely happens. Instead, in short, experienced investors try to pick a trend, whether a market is rising or falling.

For a property investor to accurately pick the trends, they need to know what a property cycle is.

Property cycles in Australia generally last between seven to 10 years. They operate within the broader economy and are subject to and influenced by those factors that are impacting on the economy as a whole.

Those factors include interest rates, inflation and employment. And of course that immeasurable factor – market confidence.

It is true that the underlying force driving the property market is a growing population. So, what you see in a rising market is that the demand for housing is on the increase, that there is a shortage of both rental accommodation and established and new housing.

According to the standard texts on property markets, the rules of supply and demand then come into play and investors and property developers step in to meet the demand by buying and building more homes.

The reality is that other factors such as interest rates are the real arbitrators of whether or not that new investment takes place.

What we are seeing at the moment is a classic example of a real estate market that is bottoming and is now moving into an upturn cycle as interest rates fall.
Providing the interest rates remain low the market should continue to rise.

It has already proved highly resilient as is evidenced by the release of data that showed the residential market overall fell only 2.6 per cent last year.