Archive for Property

Mixed results for Perth rental market in June quarter

Perth’s rental market produced mixed results in the June 2018 quarter, with stable dwelling rents, subdued leasing activity, declining listings and faster leasing times.
REIWA President Hayden Groves said the June quarter’s mixed results were not unusual given Perth’s rental market was in a transitional phase.

“Although the worst of the downturn appears to be behind us, it’s not uncommon to see results fluctuate as the market transitions into a recovery.

“The change in seasons has also contributed to this quarter’s results, with the cooler weather impacting activity levels. We tend to see activity slow during the winter months before picking up again in spring,” Mr Groves said.

Median rent prices

Perth’s overall median rent price remained stable in the June quarter, holding at $350 per week for a fifth consecutive quarter.

“Rent prices have been stable since the June 2017 quarter, which is pleasing. After experiencing prolonged periods of freefalling rent prices, the stability we’ve observed over the last 12 months is a welcome change and should provide landlords with confidence,” Mr Groves said.

Although Perth’s overall rent was stable, reiwa.com analysis shows 102 suburbs across the metro area did experience median rent price growth.

“The five best performing suburbs for rent price growth in the June quarter were Attadale (up 75.8 per cent to $580 per week), Jolimont (up 50.9 per cent to $423 per week), Burswood (up 33.3 per cent to $480 per week), Booragoon (up 28.4 per cent to $475 per week) and Hamersley (up 28.4 per cent to $430 per week),” Mr Groves said.

“Other top performing suburbs were Karawara, North Fremantle, Mount Nasura, Mount Claremont and Hillarys.”

Leasing activity

There were 12,633 properties leased during the June 2018 quarter.

Mr Groves said leasing activity had declined 10.4 per cent over the June quarter and was down 4.1 per cent compared to the June 2017 quarter.

“The latest population figures for WA shows migration into the state has declined by five per cent, which has likely influenced leasing activity levels in Perth. The rental market feels the impact of changes in population first, with new migrants to the state relying on rental accommodation to set themselves up.

“Tenants are also not moving as much as they were when prices were declining and there were good deals to be had. After 12 months of stable rent prices, lower activity levels suggest tenants are feeling confident rental prices have found a floor and therefore more inclined to stay put,” Mr Groves said.

Despite the overall reduction in leasing activity, reiwa.com data shows there were 71 suburbs across the metro area which saw leasing activity improve.

“The five suburbs which saw the biggest improvement in activity were Brookdale (up 88.9 per cent), Ocean Reef (up 75 per cent), Kallaroo (up 63.6 per cent), Parmelia (up 48.3 per cent) and Hamersley (up 46.2 per cent).”

Rental listings

There were 8,293 properties for rent in Perth at the end of the June 2018 quarter.

Mr Groves said this figure was 2.5 per cent lower than the March 2018 quarter figure and 22.9 per cent lower than the June 2017 quarter.

“Rental listings in the metro area have declined significantly over the last 12 months, with far fewer properties available for rent this year compared to last.

“A key driver for this improvement is the slowdown of new dwelling commencements. With less new properties coming onto the market, existing rental stock is being soaked up faster, putting downward pressure on listing volumes,” Mr Groves said.

Average leasing time

It took 46 days on average to find a tenant in the June quarter, which is two days faster than the March quarter.

“It is also six days faster to lease a property than it was during last year’s June quarter, which is a notable improvement,” Mr Groves said.

“Although leasing activity softened during the June quarter, activity levels remain above long term averages. This, combined with rapidly decreasing listings means tenants are needing to act fa

House sales down in June, but 31 Perth suburbs buck trend

reiwa.com data shows Perth house sales were down in June, but 31 suburbs across the metro area defied this trend to record more sales in June than they did in May.

REIWA President Hayden Groves said a further eight suburbs also saw sales volumes stabilise over the month.

“While house sales activity in Perth decreased in June this is not unexpected with the onset of winter, but our analysis also shows a substantial number of suburbs saw sales volumes improve during the month.

“Duncraig, Mosman Park, Waikiki, Dayton and Palmyra were the five best performing suburbs, with each recording significant improvements in the number of houses sold between May and June.

“Other suburbs to perform well were Butler, Kelmscott, Tapping, Baldivis and Joondalup, which rounded out the top 10 in terms of sales volume,” Mr Groves said.

reiwa.com data shows eight of the 10 best performing suburbs in June had median house prices below $550,000, which were traditionally areas with a lot of first home buyer activity.

“Mosman Park was the only million dollar suburb to make the top 10 in June, with sales volumes in the suburb lifting back to normal levels in June after declining in May,” Mr Groves said.

“Perth continues to present good opportunities for buyers, especially in the more affordable end of the market.

“The latest reiwa.com data suggests suburbs in the $550,000 and below price bracket are seeing healthy activity levels, with first home buyers taking advantage of the conditions to secure their first property before prices inevitably rise again.

“In terms of the overall market, REIWA expects house sales activity to remain moderate in Perth throughout winter, with improvements expected during spring.”
info@reiwa.com.au

Seven common mistakes investors makeI

uWhen it comes to winning big in real estate, many turn to property investment. But achieving success takes time and patience, with only a handful making it past their first investment.
To ensure you don’t fall into the property trap talk to an expert and do research.

1. Don’t buy in an overheated market

Momentum Wealth Research Advisor Shaun Strickland said many investors see reports of unprecedented growth in one area and assume this must be the next ‘boom’ suburb.

“If you are reading about a boom in the media, chances are it is already too late to be buying in the suburb. Instead, investors need to be identifying areas that are likely to outperform in the long-term, which is where the advice of a professional buyer’s agent could prove invaluable,” Mr Strickland said.

2. Not doing enough homework

The property market is always changing, and you will never know EVERYTHING there is to know about real estate. But, doing your homework nonetheless is essential and studying the suburb you wish to buy in will make it worth your while.

Mr Strickland believes research is the cornerstone to a successful property investment.

“Identifying high-performing properties requires analysis of demand and supply, knowledge of the local demographic, consistent market monitoring and awareness of other key growth factors,” he said.

“Once investors have narrowed their search to a specific suburb, they will then need to assess the potential of individual streets and properties.”

Another common mistake investors make is that they tend to only research properties within five kilometres of their current location.

Mr Strickland also said “whilst it’s a natural reaction for investors to look in areas they are most familiar with, this could result in them missing out on key investment opportunities elsewhere.”

3. No backup cash

According to Momentum Wealth Finance Team Leader Caylum Merrick, many investors fall into the trap of not saving up a sufficient cash buffer once they’ve actually acquired a property, which could leave them in a disadvantaged position should unexpected scenarios arise such as property repairs, rises in interest rates or tenants leaving a property.

Mr Merrick advises investors to set aside a cash buffer to cover unexpected costs for each property in their portfolio.

“We also advise investors to work with an experienced property manager to understand any of the potential costs that could occur for their particular property,” he said.

Find a property manager

4. Cross-collateralisation

This is when more than one property is used as security for a loan or multiple loans.

“Cross-collateralisation can significantly reduce an investor’s ability to borrow in the future, so it is especially important to seek the help of a mortgage specialist who fully understands their financial needs and long-term investment goals.

“Choosing the right loan strategy from the start can significantly maximise an investor’s borrowing capacity and give them more flexibility moving forward,” Mr Merrick said.

5. No plan, no gain

All property investors have one goal – to build a lucrative property portfolio. However getting there without a plan or goal will backfire. As the old saying goes, if you fail to plan you plan to fail.

You need to have an end vision of where you want to end up and then follow a strategic plan to get there.

6. Thinking with your heart not your head

With the Perth property market starting to show signs of recovery and stabilisation, interest will grow from property investors, meaning buyers need to act fast to secure their ideal property.

An investment should be look at as a business decision. Making an ’emotional purchase’ is to be avoided at all costs. A decision driven by your heart can lead you to over-capitalise rather than prioritise the best outcome for your investment goals.

Base your decision on facts, statistics and research.

7. Choosing to self-manage

Seeking the advice of a professional can help you avoid making simple mistakes, and they can also play a vital role in helping investors identify opportunities to maximise rental returns.

“Property investment experts can assist investors in identifying properties with the highest growth prospects that a single investor may not be able to discover or analyse on his or her own,” Mr Strickland said.

It can be very daunting trying to handle all aspects of property investment on your own, especially if you have a portfolio of more than one or two properties.

Momentum Wealth Asset Management Advisor Clare Christiansen said property managers play an important role not only in the day-to-day running of properties, but also in supporting an investor’s overall investment strategy and protecting their long-term wealth.

“Property investment doesn’t stop at the acquisition of a property,” she said.

“Savvy investors will also realise that smart asset management is key to their long-term wealth strategy.”

Read more about why property managers are vital to a successful investment.

REIWA information!

You can now add a reiwa.comXtend campaign to your listing and the feedback from our members has been positive!

reiwa.com Xtend offers a new way of advertising in which you can add a re-marketing campaign to your listing. It will automatically create a range of adverts of your listing which will appear across thousands of different sites, getting your property back in front of people who are actively searching in your area.

How does it work?

  • Create
    We’ll create free banner ads for you based on your reiwa.com listing. If you change any information such as price, this will automatically change on the advert.
  • Match
    We’ll match your property to people who have already searched for a similar property type, price, suburb and/or local area (including surrounding suburbs)
  • Display
    We’ll follow property seekers wherever they go online and drive traffic back to your property on reiwa.com, so you can get the most out of your investment.

How do I purchase Xtend for my listing?

To purchase a reiwa.com Xtend campaign simply, add a reiwa.com Xtend package to your listing via the Manage Listings on the REIWA members’ site. When you add a new listing or choose to update an existing listing, you will see a new reiwa.com Xtend tab in Listing Wizard. Watch this quick tutorial to see how easy it is!

Your listing must be active and published on reiwa.com for the campaign to work, so make sure you check your listing expiration date. We even send a weekly email of any listings that are due to expire so keep an eye on your inbox.

More information

For more information, visit the reiwa.com Xtend page.

If you have any questions about reiwa.com Xtend, please contact your REIWA Member Engagement Team on 9380 8288 or email member.engagement@reiwa.com.au

The 10 Perth suburbs where tenants are snapping up rentals the fastest

White Gum Valley, Scarborough and Shenton Park are among the 10 Perth suburbs where landlords are finding tenants for their rental properties the fastest.

REIWA President Hayden Groves said while on average it takes Perth landlords 45 days to secure a tenant for their rental, numerous suburbs across the metro area were experiencing faster leasing times.

“In White Gum Valley for example, landlords are finding tenants for their rental properties in approximately 27 days – 18 days faster than the Perth Metro average, while in Scarborough and Shenton Park it takes 28 days and in Pearsall and Leederville 29 days,” Mr Groves said.

What condition should the property be in at settlement?

One of the most widely misunderstood elements of real estate is what condition a property should be in at settlement or possession.

What does ‘buying as inspected’ really mean?

In short, a property is sold “as inspected”. If there was dust on a ceiling fan when you first inspected before contracting to buy then the fan can be dusty at settlement. The same goes for a dirty oven, a blown light globe or a squeaky laundry door. If it was dirty, blown or squeaky at inspection before purchase then so it should be at settlement.

Buyers will typically expect that the property is handed over to them spick n’ span and thankfully most house-proud sellers leave their homes in an appropriate condition when moving out, however legally there is no obligation for them to do so.

What should you expect at settlement?

If you’re buying a home, it’s smart to have a realistic expectation of what to expect at settlement.

Unless otherwise specified in the contract, the seller is under no obligation to have the property professionally cleaned for settlement and it is surprising how few buyers ask that such a condition be included.

The seller’s only obligation under the contract (Clause 6.1(b) 2 of the General Conditions) is to “…remove from the Property, before possession, all vehicles, rubbish and chattels, other than the Property Chattels.”

Many modern contracts to purchase include provision for essential plumbing, gas and electrical components to be working at settlement. Hence, if at settlement the toilet cistern leaks then the seller ought to make good because the contract says so.

It is trickier when, for example, a telephone jack doesn’t work at settlement. It is not strictly electrical but it is probably reasonable for a buyer to assume that it was functioning at inspection. This is partly because, caveat emptor (buyer beware) has all but disappeared according to some legal practitioners. The onus is probably on the seller to disclose (in this case) that the telephone jack didn’t work.

How to ensure you’re happy with the property at settlement

My view is that buyers need to take reasonable steps to ensure the property they have bought will be presented to them in a condition they are satisfied with.

This can be achieved by either contracting with the seller to guarantee it and/or being more thorough when inspecting the property in the first instance. Ask the agent if it’s ok to turn on taps, flush loos, flick switches, open and close doors, open the oven, turn on the dishwasher and so on before making an offer to purchase.

Buyers ought to have a realistic expectation of what to expect at settlement when buying an established home and acknowledge that opinions of presentation are subjective.

If you’re unsure about what to expect, it’s a good idea to speak with the agent selling the property about your concerns.

info@reiwa.com.au

Best time to buy in Perth since 2013

March 2018 quarter has revealed it’s the best time to buy in Perth since 2013.

The Index, released quarterly, assesses whether it’s better to buy or rent in Perth based on past and current trends in the economic and property market climate.

REIWA President Hayden Groves said the March 2018 quarter index showed the annual rate of house price growth required over 10 years to break even in the Buy-Rent Index had declined from 3.3 per cent to 3.1 per cent over the quarter, suggesting an improvement for prospective homebuyers weighing up the decision.

“To put that into perspective, Perth’s annual house price growth rate has been 5.9 per cent for the last 15 years. Based on the March 2018 quarter Index, house prices in Perth would only need to grow by more than 3.1 per cent annually for buying to be considered more financially beneficial than renting,” Mr Groves said.

“This improvement in buying conditions can be attributed to the Perth median house price softening by 1.9 per cent during the March quarter, while the median house rent price increased $5 to $360 per week. We also saw the 10 year average mortgage rate drop to 6.43 per cent, which means home owners are paying less on their mortgage repayments.

“This is the most affordable buying environment we’ve seen in Perth for some time, so if you’ve been weighing up whether to buy, now is the time to take advantage of favourable market conditions,” Mr Groves said.

Mr J-Han Ho, a Property Researcher and Senior Lecturer in the School of Economics and Finance at Curtin University, said the data indicated a continued improvement for the home buyer in the near future.

“Our analysis shows home buyers gaining an advantage, largely due to the low interest rates for home loans, home ownership costs continuing to be affordable and the median rents stabilising,” Mr Ho said.

Saying good bye to a lovely neighbour!

We will all miss you, Rebekah!

Catching up with all of the neighbours in my street at the Angling Club to farewell Rebekah, who is moving out of the house next door to me.

She’s only moving away to a nearby street but I will miss her a lot.

Hopefully she will continue to help me out every Thursday with my Community commitments.

My neighnours are the most caring. Every time someone moves in or leaves, we have a party together.

We also have our angel in the street, Lynnette; organiser of lunches, parties and Christmas do’s.

Today she has planned a lovely lunch at the Angling club in Marmion.

Good bye Rob , Rebekah, family and your gorgeous dogs!

Do you often see your neighbours?

 

Real Facts. Pictures worth a thousand words.

Member Real Facts 22 May 2018 Sales activity experienced stability over the week, with REIWA members reporting no change in weekly sales at 538.

The overall steadiness in weekly sales is attributed to a seven per cent rise in house sales, a four per cent fall in unit sales, and a 34 per cent fall in vacant land sales over 1th2 e week. 2 3 PROPERTY SALES TOP SELLING SUBURBS

Total properties listed for sale grew over week to 14,896. Listings for houses and units both remained stable.

Whilst listings for vacant HOUSES 418 North of the River
Morley 9 land increased by four per cent. UNITS 72 Bayswater 7

The total number of listings recorded this week are on par with levels seen four weeks ago, but are one per cent lower than levels seen a year ago.

LAND 48 Member Real Facts 22 May 2018 Turning to the rental market, REIWA members reported total properties available for rent fell to 8,324 over the week.

Location! Location! Location! Free Park!

37 Orient Circuit, Hillarys

Make an offer! Asking price: $775000

Professionally freshly painted walls, ceilings and doors, display presentation facing a park!

Double-storey home, with self-contained living on the ground floor.
The upper-floor master bedroom and ensuite flows seamlessly outside to a private Balcony where you can enjoy views of the tree-lined reserve nearby.

Also upstairs are three minor bedrooms and the second bathroom.
You’re so close to the coast where you can enjoy an enviable lifestyle, including golden beaches, Hillarys Marina, with specialty shops and restaurants and public transport.
The home’s kitchen boasts soft-closing cabinetry, dual stainless-steel sink, dishwasher, oversized cavity for a combined fridge/freezer, gas cooktops, 600ml oven and pantry plus a third toilet of the adjacent laundry.
Reverse-cycle, ducted air-conditioning services upstairs and the living areas downstairs.
The double lock-up garage and low maintenance gardens round-out this wonderful home.

 

 

 

Spacious family home!

31 Coldstream Circuit, Merriwa

Asking price: $339000

Owners moved overseas and this home needs to be sold and is ready for you!

Use a bit of “elbow grease” and change this “plain Jane” into your “castle”

Brand new painting, professionally done.
Brand new carpets professionally laid.
The electrician did his bit and fixed any unsafe wiring. Everything is perfect.
The tree cutter removed a tree that was covering this beauty.
The plumber had a go and the house is “spic and span”
A fantastic 630 square meter corner block with 4 bedrooms and 2 bathrooms, open concept kitchen, meals and family room and there is also another living area which is the formal lounge.

Everything smells fresh, new and “homey” and is great for a family, a first home buyer or investor and totally ready to move in.

Complete with a double lock up garage, security alarm system and a massive backyard for you to enjoy and entertain all close proximity to all amenities and transportation.

This looks good but all it needs is you!