Archive for Investing – Page 2

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.

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.

 

 

 

Oops! Under Offer already! Didn’t even came to market!

Almost about to come and…..GONE!

37 Orient Circuit, Hillarys

While Sellers had painters and cleaners preparing the house to go to market I was busy working my own database and showing the property to prospective buyers.

It is now Under Contract!

  1. Are you thinking of selling? I am looking for more homes to sell.

Double-storey home, with self-contained living on the ground floor.
The ground-floor master bedroom and ensuite is offset by a gorgeous open-plan living space, which flows seamlessly outside to a private courtyard.
Upstairs are three minor bedrooms and the second bathroom as well as a private balcony where you can enjoy views of the tree-lined reserve nearby.
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.

New GST legislation passes for purchasers of new residential

 

  • New GST

NEW

The Federal Government has passed legislation that will require purchasers of new residential property sales to remit the GST directly to the Australian Taxation Office (ATO) as part of settlement.

Announced as part of last year’s Federal Budget, this reform is designed to improve the integrity of GST on property transactions. According to the ATO website, some developers were failing to remit the GST to the ATO despite having claimed GST credits on their construction costs.

The legislation specifies;

  • purchasers of new residential property transactions will be required to withhold 1/11th of the purchase price and pay this to the ATO,
  • the developer will receive a credit for this GST through the normal GST business activity statement lodgement,
  • a reduced withholding tax rate of seven per cent can be used where the margin scheme has been applied,
  • developers will now be required to provide purchasers with information that assists them with determining whether the withholding applies,
  • special transitional provisions are included for project delivery agreements.

This change will take effect on 1 July 2018, however the Government have announced it will introduce a transitional arrangement to this budget measure, which will exclude contracts signed before 1 July 2018, as long as the transaction settles before 1 July 2020.

For more information about this new legislation, visit ato.gov.au.

Housing affordability has declined in all states and territories, according to a new report.

New report shows housing affordability has declined in Western AustraliaNEW
12 March 2018

The Real Estate Institute of Australia (REIA) have released the findings of its latest Housing Affordability Report, which found housing affordability declined in Western Australia in the December 2017 quarter.

The national report, which is produced in partnership with Adelaide Bank, showed housing affordability had declined across all states and territories, and rental affordability had declined in every state and territory except for Western Australia and New South Wales.

REIA President Malcolm Gunning said a coordinated and aligned approach by all three levels of Government were needed to address the housing affordability issue.

“We need to address this with some urgency and reform the planning and approval process. We need all tiers of Government involved and implementing change.

“REIA believes a first step in this is the appointment of a Minister of Property Services. This would also recognise the importance of the property sector as a driver of economic growth and employment. Property investment supported by historically low interest rates has been a significant contributor to growth in the Australian economy since 2013-14 as we transition away from a decade-long reliance on mining,” Mr Gunning said.

Housing affordability results for WA
There was a mixed bag of results across WA in the December 2017 quarter, with housing affordability worsening over the quarter but improving when compared to the December 2016 quarter.

The report found the proportion of income required to meet loan repayments increased 1.5 per cent to 23.9 per cent in the three months to December 2017 and declined by 0.3 per cent decline compared to the December 2016 quarter.

First home buyers

The number of first home buyers in WA decreased to 3,996 in the December 2017 quarter, a decrease of 9.8 per cent over the quarter but an increase of 4.9 per cent compared to the same time last year.

Of all Australian first home buyers over the quarter, 12.9 per cent were from WA, while the proportion of first home buyers in the state’s owner-occupier market was 34 per cent.

The average loan to first home buyers increased to $316,067, an increase of 4.1 per cent over the quarter but a decrease of 1.5 per cent compared to the December quarter 2016.

Loans

The total number of loans (excluding refinancing) in WA decreased to 11,744, a decrease of 4.2 per cent over the quarter and a decrease of 2.7 per cent compared to the same time last year.

The average loan size increased to $352,796, an increase of 6.8 per cent over the quarter and 0.5 per cent compared to the December quarter 2016.

Perth rental market

Rental affordability in WA remained stable during the December quarter, with the proportion of family income required to meet the median rent remaining at 16.4 per cent, the same as the previous quarter but a decrease of 1.3 percentage points compared to the year before.

For more information about the WA property market, visit the WA market page.

https://reiwa.com.au/

Regional WA outperforms Perth for price growth in latest quarter

Regional WA’s overall median house price increased 2.9 per cent during the December 2017 quarter, outperforming the Perth Metro region.

REIWA President Hayden Groves said eight regional centres experienced positive median house price growth, with Karratha the top performer with a 13.5 per cent improvement.

“Busselton, Albany and Esperance also recorded strong price growth, lifting 9.8 per cent, 7.2 per cent and 6.3 per cent respectively.

“Pleasingly, house prices improved across the board, with centres both north and south of Perth showing positive growth. Consumer sentiment in WA improved considerably in the December quarter, up 13.5 per cent which has had a positive flow on effect to the property market. West Australians are feeling more optimistic and buyer enthusiasm is returning,” Mr Groves said.

Kalgoorlie/Boulder, Northam and Port Hedland were the only regions to record declines.

“After recording a significant 19.5 per cent increase in median house price in the September quarter, Port Hedland’s median house price had a minor adjustment in the December quarter,” Mr Groves said.

View the REIWA Regional WA Outperforms Perth for Price Growth

Perth property market begins its recovery in December quarter

Perth property market begins its recovery in December quarterNEW
06 February 2018

The Perth property market ended 2017 on a positive note, with December quarter data showing improvements in median prices, sales activity, listing levels and average selling days.

REIWA President Hayden Groves said it boded well for Perth that all key indicators had improved over the quarter.

“The Perth market found its floor and stabilised in the back half of 2017. We now appear to be entering a recovery phase, though REIWA remains cautious about expectations of rapid growth in the next 12 months,” Mr Groves said.

Median house and unit price
Perth’s preliminary median house price increased 1.2 per cent to $516,000 in the December quarter 2017.

“Once all sales have settled, we expect the final December quarter median to lift to $520,000, which is a notable improvement on the September quarter median of $510,000.

“On an annual basis, the Perth market is very stable. We’ve observed consistent price levels between the December 2016 and 2017 quarters which is a strong signifier the market has turned a corner,” Mr Groves said.

Perth’s median unit price is $405,000 for the December 2017 quarter which is a 1.3 per cent increase on the September quarter.

“It’s encouraging to see Perth’s house and unit medians increase over the quarter because it suggests one sector hasn’t recovered at the expense of the other,” Mr Groves said.

Sales activity
There were 4,946 dwelling sales in Perth in the December quarter.

Mr Groves said this figure was expected to lift to 6,700 once all sales had settled, putting it significantly above the September quarter sales figure.

“Traditionally, the September quarter outperforms the December quarter, but that wasn’t the case in 2017. The December quarter is on track to record 14 per cent more sales than the September quarter,” Mr Groves said.

REIWA analysis shows the composition of sales shifted in the December quarter in Perth, with more transactions occurring above $700,000.

“We’ve observed a surge of activity in Perth’s aspirational suburbs, with buyers recognising there is good opportunity to secure a home in these areas which might have previously been considered unattainable by many,” Mr Groves said.

“This spike in sales above $700,000 has also contributed to Perth’s median house price increasing over the quarter.”

Listings for sale
There were 13,088 properties for sale in Perth at the end of the December quarter.

Mr Groves said this was on par with the September quarter figure and six per cent less than the December 2016 quarter figure.

“There were 800 fewer listings in Perth at the end of 2017 than there was in 2016 and some 1,300 less than there were at the same time 2015. We have consistently seen stock levels decline over the last two years as the market trends towards parity,” Mr Groves said.

“Declining listing levels combined with notable improvements in sales activity has helped restore net-demand. With buyer activity increasing, stock levels are being absorbed faster,” Mr Groves said.

Average selling days
It was 10 days faster to sell in the December quarter than it was in the September quarter, with it taking on average 60 days to secure a sale.

It’s been two years since it was this quick to sell in Perth. The combination of sellers’ preparedness to meet the market and buyer appetite for well-priced property has significantly shortened days-on-market,” Mr Groves said.

View more WA market information

https://reiwa.com.au/about-us/news/perth-property-market-begins-its-recovery-in-december-quarter/

New listing hitting the market in Sorrento.

2 Hermite Rise, Sorrento

Located on a large 801sqm lot is this large two storey family home in the perfect location.

This quality Federation built, double brick and tile home comprises of 5 bedrooms and 3 bathrooms plus a study.

The main living includes open concept meals and family room with garage entry and a functional kitchen with granite bench tops and a scullery window. The adjoining games room opens to the outdoor entertaining area with decking and a pitched pergola. There is a grassed area perfect for a trampoline or family dog.

The home features separates zones, the ground floor compiles of the master bedroom and ensuite, the guest bedroom and study. All children/minor bedrooms are on the second level. Windows on the upper level all have beautiful views of the Sorrento skyline.

Entertain your family and guests in the beautiful underground, crystal-clear pool that’s just screaming to be enjoyed this summer.

Located just minutes from Hillarys Boat Harbor and a short stroll to Perth’s best coastal café strip. Seacrest Park Community Sporting Facility is just down the road and the popular and highly-sought after Sacred Heart College only a 10 minute walk away. This location offers proximity to beautiful beaches with public transport conveniently located at your doorstep.

sacred Heart College is just the other side of the park

There is everything to offer for a family looking to reside with lifestyle…

More features include:
* 5 bedrooms plus study
* 3 bathrooms
* Open plan indoor and outdoor entertaining
* Reverse cycle air conditioning
* Solar panels
* Master suite with ensuite
* Double lock up garage with extra parking for boat or trailer
* Workshop

For more information, please contact Alycee on 0416 188 752.


Read More→

New listing: The Entrance to Paradise

Magnificent gardens and luxurious roses await you beyond the electric gates.
This is a place where you wake up in the morning to the sounds of nature, experiencing a magical moment in your life.
A self-sufficient wonderland – only in Perth could you reside on a 13,000 square meter block with manicured lawns and gardens and still be only a 30 minute drive from the CBD.
But it’s the stillness and peace of mind that will disarm you, which only a property like this can provide.
Impeccably presented family sized home in a semi-rural Eden replete with fruit and nut orchards, vegetable beds and vineyards.
It is like a country /colonial style home with all the modern amenities. The grand formal areas dress to receive the most prestigious visitor.
Reverse cycle air con throughout the house.
This is one home that truly must been seen to be appreciated. Come experience the country charm and to hear the sound of the birds.

WHAT’S INSIDE THE HOME?
• Vast, open-plan kitchen, with adjoining meals/family areas – all high ceilings
• Large master bedroom with adjoining ensuite boasting oversized shower and separate toilet
• The children’s wing has 3 other spacious bedrooms all with built in robes, another complete bathroom and an
activity area. There are 4 toilets in total in the property
• Sunken lounge with a log fire and formal dining room
• Stunning chef’s kitchen with feature granite tops, dishwasher and plenty of storage / bench space and casual
meals area, family room with wood fire
• Separate Games/theatre room with bar
• Study
• A well-appointed laundry with plenty of storage and bench space and its own separate toilet
• Office totally separated from the home with a powder room which can be converted into granny flat/teenagers
retreat
• Security alarm system

WHAT AWAITS YOU OUTSIDE?
• Amazing rear yard space with huge all-weather pitched patio area complete with pizza oven and barbecue
• A large gazebo with pitched roof for entertaining
• A massive cellar with sink
• Abundance of native Australian flora and fauna plus fruit and nut orchards, including citrus and stone fruits such as peaches, nectarines, apricots, loquats (agent’s favourite), three varieties of plums, apples, pears, avocados, custard apples (another agent favourite), figs, olives, macadamias and almonds
• A healthy vegetable garden and producing vineyard
• How can you forget the roses? The most amazing quantity of species throughout the garden
• Exterior lights surrounding the property all the way to the vineyard

WHAT ELSE?
• Water licence, with 14 stations to maintain the property
• Reverse cycle air-conditioning
• Children’s playground
• 2 cubby-houses/lookout for children and adults
• Two fireplaces
• Solar hot water
• Lock-up electric gate
• Exterior lights around the property
• Couple of large sheds

The worst is likely over for the Perth property market with stable conditions recorded in September quarter

The Perth property market continues to stabilise with preliminary September quarter data revealing steady or improved levels across most key market indicators.

REIWA President Hayden Groves said conditions in the September quarter had mirrored those experienced in the June quarter, which indicated the Perth property market may have finally found its floor.

“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results. Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment,” Mr Groves said.

Median house and unit price
Perth’s preliminary median house price for the September quarter came in at $499,000.

“Once all sales have settled, we expect the revised September quarter median to lift to around $515,000, an increase on the June quarter’s $510,000 median,” Mr Groves said.

REIWA analysis shows Perth’s median house price only experienced a marginal one per cent decline when compared to the same time last year.

“Comparatively, between the September quarters in 2015 and 2016, Perth’s quarterly median house price declined by 2.3 per cent. These longer term trends are a good indicator as to the positive direction the market is headed, as the rate of decline is slower than it was two years ago,” Mr Groves said.

Perth’s preliminary median unit price is $395,000 for the three months to September. reiwa.com data projects this figure will lift to $407,000 once all sales have settled, putting it on par with the June quarter median.

“It bodes well for the market that Perth’s house and unit prices are exhibiting signs of recovery simultaneously,” Mr Groves said.

Sales activity
There were 6,960 property sales in Western Australia in the September quarter.

Mr Groves said this preliminary figure was expected to lift to around 8,000 once all sales had settled.

“In the Perth metro region, property sales increased in the September quarter. Once all transactions have settled, we expect sales to exceed 6000, up from 5,730 in June quarter.

“REIWA analysis shows despite softer market conditions, this quarter’s projected sales figure is not far off the 10 year quarterly average of 6,780. Given the challenging economic factors facing the state, it’s a testament to the strength of our local market that it has held up relatively well through the downturn,” Mr Groves said.

Listings for sale
Stock levels in Perth continue to decline, falling from 14,071 at the end of June 2017 to 13,043 at the end of September.

Mr Groves said after a prolonged period of rising listings across the metro area, it was pleasing to see substantial declines occurring.

“The September quarter listing figure is 7.3 per cent lower than the figure recorded at the end of June and 7.9 per cent lower than the figure recorded at the end of September 2016.

“With sales activity trending up and listing levels declining, this has improved net demand across the metro area and contributed to the healthy sales figures we’ve seen this quarter,” Mr Groves said.

 

Average selling days and discounting

It took on average 70 days to sell a house in Perth in the September quarter.

“This quarter’s average selling day figure is two days slower than it was in the June quarter, but two days faster than it was in the September quarter 2016,” Mr Groves said.

The proportion of vendors required to discount their asking price improved to 53.4 per cent in the September quarter. This is 1.8 per cent less than the June quarter and 4.5 per cent less than the same time last year.

“It’s pleasing to see fewer sellers needing to reduce their asking price. It means they are listening to the advice of their REIWA agents and pricing their homes competitively from the start, negating the need to discount their original asking price,” Mr Groves said.

See the original article here.