Tag Archives: Buying property
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REIWA Perth sales activity on the rise
Perth sales activity on the rise
NEW
04 March 2016
Sales activity in the Perth metro area increased significantly in February.
REIWA President Hayden Groves said the market had enjoyed a healthy rebound following the Christmas and New Year dip.
“reiwa.com data shows sales activity in Perth lifted 16 per cent over the month and five per cent when compared to November 2015.
“We’ve also seen that weekly sales over the last three weeks are higher than they were at the same time last year. While it’s too early to call this a trend it’s a good indicator that mobility in the market is beginning to improve,” Mr Groves said.
At a sub-regional level, the Central sub-region had the strongest increase in sales activity over the month lifting a healthy 37 per cent, followed by the North West sub-region with a 24 per cent lift.
“Baldivis in the South West sub-region and Canning Vale in the South East sub-region were the top selling suburbs in February, followed by Scarborough in the Central sub-region,” Mr Groves said.
Perth’s median house price etched back 1.1 per cent in the three months to February, coming in at $529,000.
Listings
Mr Groves said there had been a three per cent increase in listings stock in February which wasn’t surprising as vendors traditionally returned to the market at the start of the year.
“This is a marginal increase given the time of year, but it’s significant to note that listings are now eight per cent lower than they were in November which suggests this could be the early stages of a correction in a market of prolonged higher than average stock levels,” Mr Groves said.
Rental market
Perth’s overall median rent price held firm at $400 per week in the three months to February 2016.
In terms of houses and units, Mr Groves said the median price for both was unchanged over the month at $400 and $380 per week respectively, but each had dipped $10 per week when compared to November 2015.
“While tenants are still in a good position to secure a competitively priced lease in Perth, it’s encouraging for investors that rent prices are appearing to steady in 2016,” Mr Groves said.
Rental listings in the Perth metro area declined three per cent in February but remain above the long term average.
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Ellenbrook Arbor Grove Market Day
What is a buyer home inspection?
The following article is taken from Realestate.com.au website
09 JUN 2015
You’ve found a home you like and are waiting at the door. Now what?
A buyer’s first inspection of a prospective property is kind of like going on a blind date. You have almost certainly seen some photos (always showing the home in its most flattering light) but will likely have many unanswered questions.
Will you ‘click’? Will it meet your non-negotiable criteria? What will it look like? Has it had a hard life? Will its internal wall colours make you cringe – or make you smile?
What is the point of a buyer inspection?
Independent buyer’s agent Catherine Cashmore says a property inspection is a golden opportunity to educate yourself about the bricks and mortar before you spend hundreds of thousands of dollars buying it.
She strongly advises all buyers inspect prospective homes or investments more than twice if planning to purchase.
Often a property looks great online or in a glossy brochure but as soon as you pull up at the curb you know it is not ‘the one’. Perhaps it backs a smelly industrial site or is next to a busy, noisy road? Perhaps its bedrooms are too small for your double beds?
You simply cannot know some things unless you have visited the site in person.
Photos can be illusive, so always make time for an inspection.
“Remember, the property is being presented for ‘sale’ so any visible flaws will be covered over,” Cashmore says. “For example, a dab of fresh paint can obscure cracks in the wall or careful placing of furniture can divert your eye away from possible defects.”
Cashmore strongly cautions against buying property without walking through it. “Whether a buyer or investor, do not purchase a property sight unseen,” she says.
“At the least, make sure an independent buyer advocate that you have paid and works for you inspects the home on your behalf. Photos can be illusive and you leave yourself open to the potential of buying a dud that’s impossible to sell on if you buy sight unseen. Don’t do it.”
Inspect and save: Could a property inspection save you thousands?
What should you look for?
Everything that determines if this is somewhere you or future tenants want to live. But don’t let groovy cushion covers sway you. This is your chance to probe this property, to measure, to push and to pull.
- Does everything open and shut?
- Do lights turn on and off without flickering?
- Do taps work and is the water flow adequate?
- Are there signs of water damage (i.e. peeling or bubbled paint work, mould, stained ceilings)?
- Do doors close smoothly or stick?
- Walk around the edge of each room and look up as well as down to gauge dimensions
- Walk around the outside of the property to check fences and the condition of the building’s exterior including gutters and down-pipes
Ignore the furniture and decor – take a tape measure with you and measure the bedrooms.
“Often hired furniture is smaller than real furniture and can obscure a room’s size,” Cashmore reveals. “Bedrooms need to be at least 3m x 3m in size – otherwise the room is a ‘study’ not a bedroom.”
Ignore the furniture and decor – turn your attention to floorspace.
Common missteps: 7 first home buyer mistakes
Ask lots and lots of questions
Buyers should try and arrange a time with the agent to visit the home on a private inspection.
Use this access to find out why the vendor is selling and ask questions that will help you work out the real value of the property.
Questions to ask yourself may include:
- Can I live with the floor plan?
- Is the toilet at the rear of the home too far from the bedrooms?
- Do the bedrooms run off the living area and be affected by television noise at night?
- Is the home going to adequately cater for my needs over the next seven to 10 years?
- Can I extend the property if I outgrow the home?
“When attending an open for inspection, it’s hard to think clearly with crowds of competing buyers squashing in and out of the rooms,” Cashmore says.
Try and visit during the day and turn off the lights to assess natural light.
“Don’t be afraid to open cupboards to assess storage space. When on a private inspection try and visit during the day and turn off the lights to assess natural light. Is it too dark to read a newspaper without putting the light on? Is there anything you can do to improve the situation? i.e. – sky lights for example.
“Concentrate on the things you can’t change (orientation, location) – not those you can.”
Good news for home owners and people looking to enter the property market at the moment
The following article is a blog by Kate Jones that appeared on the realestate.com.au website on 29 MAY 2015
Rates set to remain steady in coming months
Interest rates are tipped to stay on hold for June, and possibly for the rest of the year, as the economy absorbs two earlier rate cuts.
Rates are currently at 2% after they were cut by 0.25% in February and again in May.
Market Economics managing director Stephen Koukoulas says the Reserve Bank will sit tight in June.
“There’ll be no change in June and for quite a few months,” he says.
“We’re at 2% and the economy is ok – it’s not strong, but certainly not any weaker than it was.”
Minutes of the RBA’s Monetary Policy meeting in May echoed this assessment of the economy, stating “forces underpinning developments in the domestic economy were much as they had been for some time”.
The minutes revealed the RBA had considered decreasing rates in either May or June, but opted for May to take advantage of revised growth forecasts by Reserve Bank staff.
RBA data suggests economic growth is expected to continue at a lacklustre pace for the next 12 months before picking up gradually in 2016/17.
Increased consumer confidence, a downward shift in unemployment rates and a cooling property market in Sydney are key to reviving our lagging economy, financial experts say.
Whilst he expects rates to remain on hold this year, Collins House independent financial advisor Dominic Alafaci says the RBA may consider raising rates if Sydney’s overheated real estate prices don’t get under control soon.
“Whilst we expect the Reserve Bank to maintain its easing bias for the medium term, there will be some upward pressure on the overall cost of borrowing especially for investment purposes as regulators attempt to contain a potential property bubble,” he says.
On the flipside, interest rates could be cut even further if the economy needs a boost to speed up growth.
“Rates will remain stable for the near term unless the economy falls away in the third quarter whereby the Reserve Bank may cut rates sooner rather than later to help stimulate the economy and improve employment growth,” he says.
With interest rates now at new record lows, Alafaci says there’s a good case for homeowners to stick to a variable rate or split to lock in fixed rates for part of their loan.
“As a rate rise is not on the cards this calendar year, keeping the bulk of your home loan variable would be worth considering,” he says.
“Although those who prefer to eliminate uncertainty from a cash flow perspective or who are fearful of potential increased borrowing costs for investment purposes, may wish to lock in a fixed rate loan with part of their facility.”
The Federal and State budgets and the real estate industry.
The Federal Budget has some incentives for the Real Estate sector as explained in this article by REIWA. The Real Estate Industry of WA also welcomed the retention of the stamp duty exemption in the State Budget. REIWA President David Airey said the exemption on stamp duty for homes under $430,000 is a huge benefit to all first time buyers.
Real estate sector comes out on top in Federal Budget
NEW
14 May 2015
Wins for small businesses and the retention of key tax arrangements that benefit housing investment are the big positives for real estate in the 2015-16 Federal Budget.
The Real Estate Institute of Australia (REIA) haswelcomed the Federal Budget, announced Tuesday, with Chief Executive Officer Amanda Lynch congratulating Treasurer Joe Hockey on listening to the real estate sector.
“The Government is to be commended for ensuring stability within the sector in continuing the current tax arrangements as they relate to both Capital Gains Tax and negative gearing.
“With other sectors of the economy slowing, housing will play an increasingly important role and it is pleasing to see the Government has not tampered with tax arrangements that have been proven to help stimulate housing investment in Australia,” said Ms Lynch.
Ms Lynch said if negative gearing had been abolished, it would have resulted in a dwindling supply of properties for rent, escalating rent prices and reduced opportunities for low to middle income earning Australians to create wealth for self-funded retirement.
The wins for small businesses included tax cuts, immediate deductibility for professional expenses, capital gains tax roll over relief for changes to entity structure, changes to the fringe benefits tax system for work related electronic devices and expanding accelerated depreciation.
“We strongly welcome the small business package that will give business owners meaningful incentives to hire, invest in equipment and importantly grow their livelihood,” Ms Lynch said.
REIA also commended the Federal Government for listening to the real estate industry on the issue of foreign investment.
“We welcome the commitment of $67.2 million over four years to improve compliance and strengthen enforcement. We have long argued the Foreign Investment Review Board was caught asleep at the wheel. Compliance is now in the hands of the Australian Tax Office (ATO) to the funding needed to ensure the ATO has some teeth in enforcing the new regulations,” Ms Lynch said.
Infrastructure was another positive out of the 2015-16 Federal Budget, with the Australian Government committing to providing Western Australia with $499.1 million towards economic infrastructure projects in WA for 2014-15.
The Government has also pledged to establish a five billion dollar Northern Australia Infrastructure Facility that will be available for major infrastructure projects such as ports and railways in WA, the Northern Territory and Queensland.
View the 2015-16 Federal Budget.
Debt reduction the best strategy with low rates
The following post by Joe Sirianni appears in The Real Estate Conversations blog – to see article on the blog go to;
Use these rates to take years off your mortgage term and save hundreds of thousands of dollars in interest.
Debt reduction, rather than improved household cash flow, provides the best financial opportunities in the current record low interest rate environment. Last week’s decision by the Reserve Bank to further reduce the cash rate reinforces the merits of this strategy. Every mortgage holder would be well advised to make the most of these rates while they can.
This current interest rate situation may last for quite a while but it may also be short lived. The truth is, no one knows how long we are going to enjoy these rates. Record low rates tend to focus our intention on the obvious opportunities associated with cheap finance however, they actually present us all with an amazingly powerful opportunity to reduce our debts faster.
There are obvious financial benefits to making larger repayments in a low interest rate environment. Many appear to be heeding the message, with one major bank recently revealing that up to half of its customers plan to get ahead on their mortgage repayments by keeping their repayments at the same level. However, Smartline suggests it is a worthy strategy for anyone with a mortgage on their owner-occupier home.
Paying down debt that does not offer you a tax deduction on the interest expense is always going to be worthwhile. Foregoing the higher household cash flow benefit now provides major long-term financial benefits that every home owner would appreciate – taking years off your mortgage term and saving hundreds of thousands of dollars in interest.
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