Archive for Property – Page 2

Over 10 per cent of house sales in Perth now sell above $1 million

Sales above $1 million now account for 11 per cent of all house sales in the Perth Metro region.

REIWA President Hayden Groves said there had been a steady increase in the proportion of sales above $1 million in Perth since 2012.

“It’s interesting that the proportion of sales occurring above $1 million has increased during a time when the Perth property market and the WA economy have experienced a difficult few years.

“In the year to June 2012, only seven per cent of house sales in the Perth Metro region were above $1 million, six years later this figure has grown to 11 per cent – the highest it’s ever been,” Mr Groves said.

The five suburbs to record the most house sales above $1 million dollars in the year to June 2018 were Nedlands (95 sales), Cottesloe (93 sales), Floreat (89 sales), Claremont (77 sales) and Mosman Park (75 sales).

“Buyers clearly recognise there is excellent opportunity in these aspirational suburbs to purchase high quality family homes at prices we are not likely to see again as the market recovers,” Mr Groves said.

Data also shows the number of Perth suburbs with a median house price equal to or above $1 million has increased.

“There are 37 suburbs across the metro area with a median house price at or exceeding $1 million, a notable increase on the 31 suburbs recorded at the same time last year,” Mr Groves said.

“Demand in these suburbs has clearly strengthened. reiwa.com analysis shows 25 of those 37 suburbs are selling faster than the overall Perth Metro region figure, which indicates buyers need to act quickly in these areas to ensure they don’t miss out.”

House sales increase significantly in Pilbara region

2018

There was a significant increase in house sales in the Pilbara region during the June 2018 quarter.
REIWA President Hayden Groves said reiwa.com data showed sales activity had increased a significant 24.7 per cent in Karratha and 16.1 per cent in Port Hedland.

“Sales were also up on an annual basis, with activity in Karratha increasing 41.2 per cent between the June 2017 and 2018 quarters and 5.2 per cent in Port Hedland,” Mr Groves said.

This increase in sales has put downward pressure on listing levels, with reiwa.com data showing there were 27.4 per cent fewer properties for sale in Karratha compared to the June 2017 quarter and 32.3 per cent fewer in Port Hedland.

“With sales activity increasing significantly this quarter, listing stock in the Pilbara region is now being absorbed at such a rate that there’s genuine competition amongst buyers for quality properties,” Mr Groves said.

reiwa.com data also shows house prices in Karratha and Port Hedland have stabilised.

“Karratha’s median house price should settle at $315,000 for the June 2018 quarter, while Port Hedland’s median house price should come in at $205,000. Both median house prices have held up well over the last year, with little change recorded in either price,” Mr Groves said.

“It’s no secret the Pilbara region’s housing market was greatly affected by the WA market downturn. However, the June 2018 quarter results are very encouraging and indicate the Pilbara region is finding its feet again.

“The Pilbara region is one to watch over the next 12 months. The announcement of three new mining projects in the region by BHP, Rio Tinto and FMG has gone a long way to restoring confidence in the area. These new projects are expected to create 20,000 local jobs in the 2018-19 financial year, which will support population growth in the region and improve demand for housing in the area

Landlords vital in the fight against homelessness

Homelessness remains a problem in WA and there is much to be done to help our fellow West Australians affected by this.
National Homelessness Week kicks off on Monday 6 August, with this year’s campaign reminding Australians ‘there’s always something you can do’.

As part of the campaign, Shelter WA will be running a series of events in the metro area to raise awareness of homelessness across the state. Landlords Making A Difference is one of these events (details available at shelterwa.org.au), with WA landlords invited to attend to hear from government, industry and not-for-profit sector speakers about the actions they can take – small and large – to help in the fight against homelessness.

WA needs more diverse rental housing

The private rental market plays a vital role in helping to provide safe, affordable and accessible housing. Recently, REIWA met with Shelter WA to discuss our shared priorities of delivering a more diverse range of rental properties to accommodate WA’s changing housing needs.

Currently, the WA rental market does not adequately cater to those most at risk of homelessness, with Anglicare WA’s 2018 Rental Affordability Snapshot highlighting this issue. The snapshot found less than a quarter of rental properties in Perth are affordable for families where one parent is earning the minimum wage and the other is caring for small children, while even fewer properties are affordable to those who receive a pension or other forms of income support.

While these big, systemic issues can feel beyond the scope of any individual, there are still plenty of things landlords can do to make a difference. For example, allowing pets in the home can make a big difference to someone who is fleeing family violence and looking for a new place to rent, but is fearful of leaving their pet behind.

Victims of family violence at risk

Family violence is a key contributor to homelessness. Victims of family violence suffer significant hardships when they are forced to leave a rental home. They are at risk of homelessness, loss of employment opportunities and disruption to their children’s education. They also frequently carry the financial burden when a tenancy ends, such as paying unpaid bills they are not wholly responsible for.

Supporting these victims is just one way landlords can make a difference. REIWA recognises the role our industry plays and we are supportive of the Government’s efforts to amend the Residential Tenancies Act to better assist victims of family violence. We have been working with the Government to ensure appropriate safeguards are in place to maintain a supportive environment for property investment, while ensuring victims have better protection within the context of a residential setting.

We all have a part to play in helping those who struggle to find appropriate housing opportunities. I encourage everyone to look at the small ways they can help make a big difference to those sleeping rough on our streets this Homelessness Week.

Support WA’s homeless

If you’d like to help out those sleeping rough on our streets, please consider donating.

By doing so, you’ll be helping REIWA’s Community REInvestpartner, The Salvation Army, provide much-needed services to those in need such as meals, accommodation and crisis counselling.

Donate now

313 West Coast Drive, Trigg is for sale!

Asking price is $5.500,000

 

Why would you want to live anywhere else? This beautifully designed masterpiece combines location with luxury and boasts spectacular, uninterrupted ocean views.

Ray White is proud to be the listing agent of 313 West Coast Drive.

Finished to the highest of quality, this Webb and Brown Neaves built home creates a perfect balance between indoor and outdoor living. Featuring five bedrooms, four bathrooms and two double garages, you will be only meters from the crystal blue waters of the Indian Ocean.

With a scullery, built in coffee machine, integrated floor to ceiling fridge, granite bench tops and mesmerising ocean views, the kitchen really is the star of the home.

The light and bright open-plan family/dining and kitchen area flows seamlessly with the expansive balcony to create the ideal vibe for entertaining. Impress your guests with stunning 180-degree sunset views while enjoying a glass of bubbles.

The west-facing master suite is located on the third storey and offers holiday-style luxury in the comfort of your own home. The four minor bedrooms are all double in size and offer either walk-in or built-in robes, two of which also have ensuites.

Outside continues to impress, the large alfresco entertaining area features an outdoor kitchenette complete with a mini-fridge, sink and BBQ. Listen to the beats from your built-in surround sound system and enjoy the hot summer days in your very own sparkling below-ground pool and spa.

It doesn’t end there, other features include:

  • Smart home with tablet controls
  • Ducted reverse-cycle air-conditioning throughout
  • Central vacuum System
  • Security alarm
  • Separate theatre room
  • Electric window shades
  • 2 x 500 litre underground water tanks
  • Solar panels
  • High ceilings
  • Italian travertine tiles throughout
  • Parking for 7 cars

 

Located on arguably Perth’s best coastal café strip, you will have it all in arms reach from your spectacular Trigg home. Relish in a location that offers it all.

Words do not do this home justice, you need to see to believe!

View by appointment only, call Alycce on 0416 188 752.

 

 

 

Ocean front in Trigg for sale

Webb & Brown Neaves 3 storey high with an elevator for sale for the first time.
625m2 of building including 4 car garage.
5 large bedrooms, 4 bathrooms, study, home office, theater, fabulous kitchen with all the toys and technology of today’s modern existence.
Swimming pool
Pictures arrebentar than a thousand words.
Call to view
Price tag: $5.5
Everything you dream off!
Call to view!

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