Archive for Investing

Good opportunity for buyers near Perth’s inner city

Good opportunity for buyers near Perth’s inner cityNEW
09 September 2017
Author: REIWA President Hayden Groves

If you were to ask people in Sydney or Melbourne whether it was possible to secure a house – not just an apartment, but a house – within 10 kilometres of the CBD for under $500,000, you’d likely be met with mirth.

Purchasing any property in Sydney or Melbourne for under $500,000 is challenging, let alone finding a property for that price just a few kilometres away from the city. It’s this point of difference that keeps the dream of home ownership alive for many more people in Western Australia than it does in other parts of the country.

For instance, unlike the major markets on the east coast, you don’t need to move miles away from the city to be able to get onto the property ladder. There are numerous suburbs within 10 kilometres of the city that offer fantastic value to savvy buyers and investors.

Perth’s 10 cheapest suburbs within 10 kilometres of the CBD
A recent report by reiwa.com revealed Perth’s 10 cheapest suburbs within 10 kilometres of the city. Nollamara, located 10 kilometres north of the CBD, took out first spot with a median house price of $410,000 for the year to June 2017. This is extraordinarily good value, and doesn’t even factor the suburb’s lower quartile price, which sits at $375,000.

Other suburbs to make the list were Cloverdale, Belmont, Redcliffe, Bentley, Embleton, Osborne Park, Kewdale, Morley and Carlisle. And of these 10 suburbs, seven were located east of the city.

The eastern corridor of Perth’s inner city is a growing area that presents particularly good value. With the Perth Stadium and surrounding infrastructure nearing completion, the opportunity is certainly there for savvy buyers and investors to purchase in a fast growing area at a relatively affordable price.

Get in quick!
We are very lucky here in Perth that there are still great bargains to be had in and around the CBD, but as WA’s population inevitably grows, it is unlikely inner city living will remain this attainable. By 2050, the state’s population is expected to have almost doubled, and as we’ve seen in most major cities around the world, as population density increases so too does the cost of real estate.

The Perth property market currently favours buyers, but property markets are cyclical and conditions will change. With signs emerging that we may have finally found, or be close to finding, the ‘floor’ of our local housing market, I would advise buyers to act sooner rather than later if you’re wanting to secure an affordable house close to the city.

Speak to a local REIWA agent in your area to discuss the options available to you.

Stamp Duty axed for first home buyers!

On June 1st, NSW premier Gladys Berejiklian announced that first home buyers across the state will be exempt from paying stamp duty on existing and new homes up to $650,000. There will also be stamp duty concessions for properties between $650,000 and $800,000.

The changes, which will come into effect 1st July 2017, also include a $10,000 grant for builders of new homes up to $750,000, and purchasers of new properties worth up to $600,000. The previous $5000 New Home Grant Scheme will end.

As part of the reform to address housing affordability, the government has said that the stamp duty charged on lender’s mortgage insurance will also be abolished. For an individual with $50,000 in savings looking to purchase a $800,000 home, this could mean saving approximately $2900.

Foreign investment

In an effort to slow down the competition first home buyers face, foreign investors will now pay double the stamp duty surcharge – from 4% to 8% – and land tax will increase from 0.75% to 2%.

Investors

To decelerate investor competition for first home buyers in entering the market, the government will axe the ability for investors to defer paying stamp duty on residential off the plan purchases,

In addition, the State government has committed to increasing the supply of land as a means to tackle the current constraints, adding that $3 billion will be invested in infrastructure.

The exemption, is said to benefit about 25,000 first home buyers every year, with an average of $8000 worth of savings for new or existing homes.

First time I ever got involved renovating a property personally. A lot of work but very rewarding.

My husband did most of the work.
My son Merv was a great help removing the wall paper.
Bob Russell my tradesman, good for A to Z jobs, if you know what I mean, did the painting.
Mike helped with all the jobs and redecorating.


The end result is very good.
For lease now at $385 a week
28 Banks Ave, Hillarys
Behind Whitfords Shopping Centre.
Great location. Possible for commercial use too.

Interest rates this Month unchanged. RBA kept it on hold

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Interest rate update from the RBA today

April 4, 2017

The RBA have decided to keep cash rates unchanged today.

april

The REIQ welcomes the RBA decision to leave cash rates on hold at the current historic low of 1.5 per cent.

REIQ CEO Antonia Mercorella said the housing market throughout Queensland, and most of the country, would benefit from continued low rates.

“Our economy in regional Queensland is far from strong and giving people access to affordable loans is a key part in strengthening the housing market, which underpins the broader regional economy,” she said.

Conditions in the global economy have improved over recent months. Both global trade and industrial production have picked up. Labour markets have tightened in many countries. Above-trend growth is expected in a number of advanced economies, although uncertainties remain. In China, growth is being supported by higher spending on infrastructure and property construction. This composition of growth and the rapid increase in borrowing mean that the medium-term risks to Chinese growth remain. The improvement in the global economy has contributed to higher commodity prices, which are providing a significant boost to Australia’s national income.

Headline inflation rates have moved higher in most countries, partly reflecting the higher commodity prices. Core inflation remains low. Long-term bond yields are higher than last year, although in a historical context they remain low. Interest rates have increased in the United States and there is no longer an expectation of additional monetary easing in other major economies. Financial markets have been functioning effectively.

The Australian economy is continuing its transition following the end of the mining investment boom. Recent data are consistent with ongoing moderate growth. Most measures of business confidence are at, or above, average and non-mining business investment has risen over the past year. At the same time, some indicators of conditions in the labour market have softened recently. In particular, the unemployment rate has moved a little higher and employment growth is modest. The various forward-looking indicators still point to continued growth in employment over the period ahead. Wage growth remains slow.

The outlook continues to be supported by the low level of interest rates. Lenders have recently announced increases in mortgage rates, particularly those paid by investors. Financial institutions remain in a good position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.

Inflation remains quite low. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent. The rise in underlying inflation is expected to be a bit more gradual with growth in labour costs remaining subdued.

Conditions in the housing market continue to vary considerably around the country. In some markets, conditions are strong and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for two decades.

Growth in household borrowing, largely to purchase housing, continues to outpace growth in household income. By reinforcing strong lending standards, the recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness. Lenders need to ensure that the serviceability metrics that they use are appropriate for current conditions. A reduced reliance on interest-only housing loans in the Australian market would also be a positive development.

Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

10 Perth suburbs selling quicker now than they did during the ‘boom’

29 March 2017

Rossmoyne, North Beach and Mount Lawley are among Perth’s top 10 suburbs selling property faster now than they did during the ‘boom’.

REIWA President Hayden Groves said it was easy to get caught up in general Perth market talk, but it was important to look deeper to see how individual suburbs were performing.

“reiwa.com analysis shows Perth’s average selling day figure is currently 66 days, which is notably higher than in 2013 when it took on average 41 days to sell a property. However, if we dig a little deeper and look at average selling days at a suburb level, there are numerous areas of Perth selling significantly quicker now than they did in the boom,” Mr Groves said.

Rossmoyne experienced the biggest improvement in average selling days, with reiwa.com data revealing it is now 22 days quicker to sell in the area than it was in the year to January 2014.

“Churchlands, Glen Forrest and Dalkeith are also experiencing faster selling times, with each suburb improving by 15 days in the year to January 2017 compared to the year to January 2014,” Mr Groves said.

Interestingly, eight of the 10 suburbs on the list have an annual median house price (for the year to January 2017) above $750,000, with four of those above the $1 million mark.

“These results show the quickest sales are happening in the suburbs that predominantly cater to the trade-up sector of the residential property market. Buyers looking to take the next step in their property journey clearly recognise there is good opportunity in the current market to take advantage of more affordable house prices to upgrade to a new home,” Mr Groves said.

Glen Forrest and Helena Valley were the only suburbs on the list with a median house price below $750,000, coming in at $534,000 and $557,000 respectively for the year to January 2017.

Lots buyers around. What are they waiting for to submit an offer?

I have been driving around the coastal suburbs and I am amazed by the numbers of properties on the market that have not been sold yet.
Superb properties!
Great prices!
And buyers are not moving on them!
What are they waiting for?
Trump? That is old news and far away.
Mining boom?
That is gone and not coming back!
Jobs?
A lots of jobs around but not same salary as it was before GFC.
Real Estate sells in ANY MARKET.
People move because they’re…
Downsizing in size
Downsizing mortgage
Upsizing for new babies or parents moving in
Change of schools
Moving closer to family
Retiring, etc, etc, etc.
So, there is never a “bad market” only you may not get your price because you are chasing the market down.
Be smart! Sell today. Tomorrow may cost you thousands of more dollars to sell what you should have sold 3 months ago.
Good luck!

A bedsitter in the Lodge of Seacrest Village

Meet me at the lounge and I will take you around to visit this fabulous bedsitter, freshly painted, new carpets and great courtyard overlooking park bush.

The good thing when you decide to sell your unit in Seacrest Village is that you don’t have to leave 33% behind. All the money from the sales is 100% yours.

This is a smashing unit for downsizing in style. No steps, no elevator. Walk to the Lodge and carry on to the right up to number 119.

There is a caretaker who looks after the grounds in the whole complex.
Swimming pool and the bowling green for your entertainment.
The good thing about Seacrest Retirement Village is that still there is a Bus run to the Shopping Centre. So, hop on the Bus and do your shopping.
Seacrest Retirement complex – it is a place to relax, make friends, enjoy your lifestyle.

Strata Monthly levies for this unit are $137.00 plus $80.00 special levies

How to maximise your selling price

21 December 2016
Author: REIWA President Hayden Groves

Often home owners who decide to sell finally get around to completing jobs around the house they had been intending to do for years.

Fixing the paving, painting the front fence and repairing the side gate are typical examples of ‘little’ jobs that fit into the “I must get to that one day” category.

The little jobs matter
When preparing your home for sale, these ‘little’ jobs are important in achieving an expedient sale at the highest possible selling price. This is because buyers typically notice the little jobs too; an ill-fitting gate is easily and cheaply repaired, yet can loom large in the buyer’s mind as a more major problem that hints at other areas of the property being neglected.

Beware of over-capitalising
Of course, you need to be cautious about “over-capitalising” when preparing to sell. Replacing a bathroom and renovating a kitchen are expensive and, depending on the property and its location, may prove counterproductive in the effort to achieve the best price.

For example, if you were to take a quality home on a lot worth $700,000 in a suburb where the median house price was of that same value, then investing in a new kitchen and bathroom that cost, say, $80,000 may not be the best idea, as it is probably more difficult to sell that property at $800,000. This is partly because it is already above the suburb’s median house price.

Conversely, an original cottage in a well-established affluent suburb is more likely to benefit from renovations when preparing to sell due to the higher demand for “finished” properties in those sought-after areas.

How to present your home for sale
Obviously, each property and circumstance engenders a variety of options for sellers when preparing to sell, and opinions from real estate agents on the matter are, as always, subjective.

In general terms however, presenting a clean and tidy home is always going to help your cause in selling at the best price.

A client once suggested to me that you should “present it like you don’t live in it” – which is probably a fair description.

Paint out bright colours on internal walls, de-clutter by storing away trinkets and excess family photos, clear the fridge of magnets and kids’ school art and place items neatly in storage cupboards.

Small things do make a difference. Paint and gardens are two areas of focus that can make a disproportionate difference to the selling price (relative to their cost and the effort involved).

These tasks can usually be completed by the seller themselves which helps keep costs down and can make an amazing difference to the presentation of the home and therefore the price of the property.

To find a REIWA real estate agent to help sell your home, visit reiwa.com AgentFinder.

Perth’s median house price increases again

Perth’s median house price increased by nearly two per cent in the three months to December 2016.

REIWA President Hayden Groves said reiwa.com data showed the median house price had lifted 1.9 per cent to $535,000 over the three month period.

“This is the second month in a row that we’ve seen an increase in the median house price, which is a welcome trend and suggests that the trade-up sector of the market is recovering.

“Since the second half of 2016, we’ve seen prices across the metro area start to lift on a monthly basis. If you’re a buyer waiting for the ‘bottom of the market’, you would be wise to make a buying decision soon should this trend continue.

“The benefit of buying now is that there is currently less competition from other buyers, so you’re more likely to find a home or investment property that genuinely meets your needs,” Mr Groves said.

Listings for sale in Perth experienced an 11 per cent decline in December, with 13,883 listings recorded in the metro area.

“It’s not unusual for listing volumes to drop off in December as the market tends to be quieter over the festive period. More significantly though, listings in December 2016 were three per cent lower than in December 2015 which is a good indication that we’ve seen supply peak,” Mr Groves said.

Perth rental market
In line with seasonal trends, leasing activity in Perth’s rental market moderated slightly in December, dropping back two per cent over the month. However, when compared to December 2015, activity has escalated by a noteworthy 27 per cent.

“We expect to see a slowdown in leasing activity across the month as people prepare for the holidays, so a two per cent drop isn’t a concern. The hike in the number of properties leased on an annual basis however is very pleasing and there’s been a significant increase compared to the same time in December 2015.

“Despite listings for rent remaining above the long term average, tenants are still very active in the market and recognise they have good choice to secure a home at a competitive price,” Mr Groves said.

Another positive sign for the Perth rental market is that the median house and unit prices remained steady over the three months to December 2016, holding at $380 and $340 per week respectively.

For more information about your local property market, visit the WA market section.

4 year old dolls, boy or girl to stand in the corner like well behaved children

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Secluded hideaway in Innaloo waiting for you to start to live a whole new lifestyle

3/2 Lilacdale Road Innaloo

This inviting residence presents a spacious single level floor plan that is perfectly appointed for everyday living.
With no strata fees, this low maintenance stand-alone villa is ideal for the first homebuyer, investor, singles or if you are thinking of down sizing.
Privately positioned at the rear of a quiet boutique group of only three and immaculately maintained. This is a property you can move into and enjoy. It is situated in front of an amazing private grassy open space with few trees, it is like having you own massive backyard maintenance free. This open space is maintained by the City of Stirling.

This home provides a comfortable living environment and offers a practical and compact open plan design. The villa consists of three bedrooms, two with walk in robes, 2 bathrooms, powder room, formal lounge and dining area. Features include BreezeAir evaporate air conditioning, key locked security screens and security doors, alarm, dishwasher and solar energy unit with six panels wired to the grid for payback of energy from the State Government. There is a gorgeous small backyard with low maintenance reticulated garden beds and a pitched roofed Shire approved pergola allowing the beautiful natural sunlight into the house.

The villa has a massive remote controlled lockable garage and for the security minded, has an entrance through to the kitchen. The home is situated at the end of a cul de sac and very close to buses and Stirling Train Station and is within a 10 minute drive to three major shopping centres.
This lovely home is looking for a new owner to the sadness of the current owner that has had the most enjoyable time living there.