National Property Buyers http://www.nationalpropertybuyers.com.au Australian Buyers Agents and Buyers Advocate Thu, 25 May 2017 05:20:30 +0000 en-US hourly 1 https://wordpress.org/?v=4.7.5 Downsizers: how to overcome the challenges of moving on http://www.nationalpropertybuyers.com.au/downsizers-overcome-challenge-moving/ Thu, 18 May 2017 23:58:36 +0000 http://www.nationalpropertybuyers.com.au/?p=12602 The post Downsizers: how to overcome the challenges of moving on appeared first on National Property Buyers.

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Downsizers face some of the toughest decisions in the real estate market as to whether or not they sell their home. That’s why expert advice to assist in making the best decisions is more valuable at this stage of life than in any other.

Stay or go?

It’s understandable that many downsizers don’t want to move on from the homes they raised a family in over the last two or three decades. They have an enormous emotional attachment. But there comes a time in every family when the kids move out and the majority of the house becomes unused.

Downsizers who choose to stay in the family home face the ongoing need for upkeep, which can cost considerable time and money as homes become older. Maintenance of big three and four bedroom homes on larges blocks with multiple living areas and sprawling gardens becomes a burden. Many people at this stage of life would prefer to be out enjoying their retirement and travelling rather than pulling out weeds and vacuuming.

On the other hand selling the property can be incredibly intimidating. Dealing with the Selling Agent and the stress of the sales process are rarely enticing prospects for anyone. Let alone having to box up years of possessions and the anxiety of moving.

Then there’s the prospect of trying to get the highest sale price.

There is a lot riding on this transaction. The property needs to sell for enough to purchase the next home without being tied to a big mortgage as well as covering immediate costs like stamp duty. At this stage of life, having enough funds available to alleviate mortgage stress in retirement is crucial.

The next step

If all of that wasn’t enough, downsizers then need to find their next property. Finding the perfect property is perhaps more important for downsizers than other buyers in the market because they need a home to suit a specific lifestyle, as well as being close to important amenities.

They need something that is a more manageable size than a four bedroom home on a big block, but also accommodates enough room when the grand kids stay over. They also need to find something on a single level, or at the very least with a main bedroom on the ground floor to avoid going up and down stairs every day.

Proximity to amenities is another major concern. Being close to family or friends is important, but even more so is being close to public transport, shopping and health care facilities. Access to these amenities becomes more significant as time goes by. Buying the right property that accommodates those needs over time is crucial and unfortunately is no easy task.

Looking at this situation it’s no wonder many downsizers can feel utterly overwhelmed.

So what help is available?

Downsizers often have a massive market place advantage due to the size of their properties. Three bedroom family homes on large land will attract families and buyers looking for large properties to update or redevelop. These buyers are typically highly emotional because they want a home that accommodates their lifestyle and often prepared to pay more to get it.

However, vendors still need to make sure they do everything to get the best result possible. That’s why they should engage an NPB Vendor Advocate.

The challenges of downsizing aren't anywhere near as overwhelming with professional support and advice.

The challenges of downsizing aren’t anywhere near as overwhelming with professional support and advice.

Vendor Advocacy services have become incredibly popular in the last few years as downsizers seek independent advice to guide them through the sales process.

NPB Vendor Advocacy has helped dozens of downsizer clients through this process, dealing directly with the Selling Agent, negotiating commissions and ensuring vendors get the best result. Better still, the service is free.

Securing the next property is the other part of the equation and for that downsizers need to engage a Buyer’s Agent.

The state of the market has changed significantly in the last four years over the most recent growth cycle, especially in Sydney and Melbourne, let alone in the 20 or 30 years since many home owners were last in the market. Having an experienced professional to manage the entire searching and purchase process is more important than ever.

National Property Buyers Buyer’s Agents will be able to find property that fits a downsizers criteria faster than anyone else, using their intimate knowledge of the market to identify the best properties in the most suitable locations. Their negotiating skills will then secure the property at the lowest price.

National Property Buyers offers both Vendor Advocacy and Buyer’s Agent services, ensuring downsizers are looked after from selling their current home to buying their new one.

For more information on these services, watch these short explained videos here

 

by Ashley Koenig

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The 2017 budget is largely ineffective for property buyers http://www.nationalpropertybuyers.com.au/2017-budget/ Fri, 12 May 2017 03:42:38 +0000 http://www.nationalpropertybuyers.com.au/?p=12594 The post The 2017 budget is largely ineffective for property buyers appeared first on National Property Buyers.

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There were some serious expectation on the 2017 federal budget to address housing affordability and property supply issues. Some of the proposed measures will have a positive effect on the market, but overall this budget is just fluffing around the edges.

We’ve ranked the most important proposals regarding real estate on their anticipated impact, if they are passed in full.

 

Downsizer incentives

From the 1st of July, 2018, people aged over 65 will be able to contribute $300,000 from the sale of their property into their superannuation. Both members in a couple will be able to contribute this amount each, totalling $600,000 from one sale. The property must have been a place of residence for at least 10 years. The contributions will be subject to the Age Pension assets test and will not be exempt from the tax free $1.6 million super cap.

The intention of the policy is to encourage those in the over 65 demographic to sell their three or four family home and free up stock. And it may work to entice owners to sell, perhaps sooner than they would have otherwise. However whether these types of properties, particularly those closer to the CBD, will be affordable for younger families is another matter.

First home buyers super savings

First home buyers will be able to contribute a maximum of $15,000 per annum, and a maximum of $30,000 per person into their superannuation to assist in saving for a deposit.

Buyers will be able to salary sacrifice contributions directly into their super and then withdraw the amount plus any gains made to put towards a deposit.

However the measure is not going to have a significant benefit for most first home buyers looking to purchase within 15km to 20km of the city, as the market will move too fast for these savings to assist in a meaningful way. It will provide better value for more affordable value further out from the CBD’s of major cities.

Federal budget 2017: The First Home Buyer Super Saver Scheme doesn't go far enough in terms of helping first home buyers.

Federal budget 2017: The First Home Buyer Super Saver Scheme doesn’t go far enough in terms of helping first home buyers.

The best thing government can do to assist first home buyers is reduce or remove the upfront costs associated with buying a house. The Victorian government has done this with the removal of stamp duty for first home buyers purchasing property under $600,000. If the federal government wants to make life easier for first home buyers, this is the type of policy they should adopt.

One big picture benefit of a policy like this is to get younger people to be more engaged with their superannuation. It could represent a shift in mindset from superannuation being something out of sight and out of mind, to being something younger people engage with on a regular basis.

Charges to foreign owners who leave properties vacant

Although the intention of this policy makes sense, it doesn’t go far enough in achieving what it sets out to do.

Under the policy, foreign owners who leave their property vacant for at least six months of the year will be charged an annual levy. The amount will be equivalent to the foreign investment application fee. These fees range in value depending on the value of purchase. For example, property under $1million attracts a $5,000 fee; property that’s more than $1million and less than $2million attracts fees of $10,100.

While it is good to see a measure to encourage those foreign owners who are holding vacant properties to either lease or sell them, this levy won’t be enough. If a foreign investor has enough money to buy a property and not worry about generating an income to subsidise the mortgage, they won’t be concerned about this fee. It would have to be much higher to incentivise owners to lease.

Changes to negative gearing

Yes, you read right. Changes to negative gearing will be made. Again, the budget is only fiddling at the edges rather than making any substantial changes.

From July 1, landlords will only be able to make deductions of items they have actually purchased, not items that previous owners have bought.

Investors will also not be able to claim travel costs incurred when inspecting, maintaining or collecting rent from a property.

Negative gearing is a hot button issue at the moment, and the government is really only implementing these measures as a way of being seen to be doing something. The effect these changes will have to the motivation to invest is negligible. The most it will do is likely force some property owners to better plan their holidays to location where they have investment properties.

 

Overall, the measures proposed in this budget regarding property are going to be largely ineffective. There are some positives, but there is little in the way of immediate, practical impact on buyers’ ability to purchase property.

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Rent bidding apps: How are they going to help the landlord? http://www.nationalpropertybuyers.com.au/rent-bidding-help-landlord/ Fri, 05 May 2017 06:07:54 +0000 http://www.nationalpropertybuyers.com.au/?p=12581 The post Rent bidding apps: How are they going to help the landlord? appeared first on National Property Buyers.

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The relationship between landlord and tenant could be set for a shakeup with the arrival of rental apps, with at least three launching to the Australian property market in the coming months. Much of the focus is in on how much better these platforms will make the application process for tenants. But key to the process is how much easier they will make life for the landlord. It may not be all that much at all.

 

Rental apps Rentberry, Live Offer and Rentwolf are all intent on disrupting the rental market.

The common theme among all of these platforms is that they directly connect tenants and landlords, bypassing property managers to make the application process more transparent. Tenants can offer their own lease terms directly to the landlord, including rental amount and length of lease and start date. They will also be able to see offers made by their competition.

Landlords would pay $14 per month to use Rentwolf to manage everything from leasing the property to maintenance, akin to a “Netflix style approach” said CEO and founder Chris Martino.

According to Martino there are approximately 3,000 people signed onto the waiting list to use Rentwolf when it launches at the end of May. Of those subscribed, approximately 260 are landlords.

A landlord should seriously consider how much work is involved in managing their property if they choose to do so through a rental app.

A landlord should seriously consider how much work is involved in managing their property if they choose to do so through a rental app.

While it remains to be seen as to how these apps will be received by tenants, NPB Senior Property Manager Ivonne Di Perna believes landlords will need to be prepared to do a whole lot more work if they manage their property through an app.

“These apps could basically turn landlords into private property managers. Doing all of the open for inspections, assessing all the applications, answering questions from applicants, negotiating the lease terms, checking employment and rental histories and references. All that can be a lot of work on top of their day job.”

“If you’ve got a really popular property it’s going to take a long time to properly vet applications. Or if you’ve got a property that doesn’t have a lot of interest it’s probably not going to be too fun turning up for open for inspections weeks on end.”

Di Perna also has concerns for inexperienced landlords when it comes to dealing with the any number of potential issues that come with managing a property.

“What happens when a tenant is in arrears and the landlord has to take them to VCAT (Victorian Civil Administrative Tribunal)? Do they know how to submit an application for a hearing? Are they really going to have time to represent themselves to resolve an issue?”

“Then there’s knowing and keeping up to date with changes in legislation, bond lodgement processes, doing all of the routine inspections and dealing with maintenance issues themselves. It’s a big can of worms for someone who doesn’t know what they’re doing.”

The competitive offering system can have pitfalls for both tenants and landlords said NPB Senior Property Manager Tracey Farrell.

“If someone puts an offer in for a higher weekly or a longer lease term, it could deter other prospective applicants from submitting an offer” says Farrell.

“They may think they have no chance of getting the property and withdraw. The landlord is just losing out on a better selection of applicants in that case.”

“On the other hand, tenants could put in a high offer and hope that a landlord overlooks their history. Getting a bad tenant is the worst thing that can happen to a landlord, no matter how much they pay.”

With all offers on the table during the application process landlords could find themselves in a difficult situation when they need to reject applicants. They may have to justify and defend their decision to applicants who feel they put forward the most competitive offer but still missed out.

National Property Buyers Senior Advocate Rob Di Vita also had concerns that investors will miss out on claiming tax deductible expenses if they use an app to manage their property.

“Investors can obviously make more deductions going through a professional property manager. An investor might save a bit of money in management costs but they miss out on deducting all of those expenses.”

“At the end of the day, I don’t think you can put a price on having the comfort of knowing that a professional is managing your best interests and doing everything they can to get you the best results for an investment. A good property manager is worth their weight in gold.”

by Antony Bucello

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Opportunities aplenty in these suburbs http://www.nationalpropertybuyers.com.au/suburb-hotspots/ Fri, 21 Apr 2017 05:24:39 +0000 http://www.nationalpropertybuyers.com.au/?p=12563 The post Opportunities aplenty in these suburbs appeared first on National Property Buyers.

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Suburbs that offer buyers the best opportunities are always highly sought after. These are some of the best from Melbourne, Brisbane, Adelaide and Sydney.

 

Hampton/Hampton East, Victoria.

Located 14kms south east of the Melbourne CBD, Hampton and Hampton East are among some of the most sought after bayside areas. 

The suburbs are perfectly serviced by train transport and the Nepean Highway to get into the city, as well as a number of parks, an excellent choice of schools and plenty of shopping options. As a result the suburbs are keenly sought by families who want access to key amenities and the desired beach side lifestyle. Of course, property closer to the water is hotly contested.

The suburbs are populated by mainly decent sized housing stock and home to a generally older demographic that have either paid off, or are in the process of paying off, the family home. As a result, there are opportunities to secure quality family homes as people downsize.

Hampton East will likely offer buyers with some more opportunity in comparison to Hampton with a median house price of just under $1.2 million, while still being only a few kilometres to the beach.

There are also options for buyers looking for development opportunities to build their dream home. National Property Buyers secured one such property, recently purchasing a home on 645sqm in Smith Street, Hampton for $1.5 million that is ideal to develop a new house.

Activity in the area is strong and we anticipate this to continue with median values moving 16% in the last 12 months. A property purchased by National Property Buyers close to the Hampton East/Moorabbin border for $923,000 in October 2015 would likely be worth up to $1.1million based on recent comparable sales. That’s an increase of approximately 19% in 18 months.

For buyers looking for quality beachside living close to amenities these areas are ideal. But they are highly sought after as a result and expertise to secure property is a necessity.

by Antony Bucello

 

Margate, Queensland

Margate, located 26kms to the North East of the Brisbane CBD on the Redcliffe peninsula is a coastal strip that features one of the biggest attractions for buyers in Brisbane: the only metropolitan area with access to sand beaches, seven kilometres in fact. Thanks to rapid transformations occurring in the Morton Bay area, buyers will be looking to suburbs like Margate to enjoy the beachside lifestyle.

The area has become one of Queensland’s fastest growing economies thanks to a boost in infrastructure investment. These include the construction of the Redcliffe rail extension running into nearby Kippa Ring which will allow increased rail access into the CBD, while the widening of the Gateway Motorway will allow a better commute.

The combination of investment in infrastructure and population growth is also transforming the region’s visitor economy in anticipation for the area to become a tourism destination. This is evident at the moment with some high rise complexes popping up, which will likely increase in the coming years, along with the development of the foreshore precinct.

At present, housing stock is the best option for investors to look at. Margate is still an affordable pocket of the peninsula and as a result is a hot spot for investors who are looking for short term gain as well as stability and sustainable growth. Growing interest in the suburb is evident from the 19% growth in median house prices over the previous three years, up to $417,000.

by Stephen McGee

 

Semaphore, South Australia

The beach side suburb of Semaphore has seen plenty of activity over the start of the year with people seeking quality lifestyle options.

Semaphore has a quality beachside lifestyle that buyers relish, but is perfectly positioned just 16kms north west of the CBD for easy access to the city for work – most residents would be in the surf within an hour of knock off!

The biggest draw card for the area is Semaphore Road with trendy eateries and quirky shopping, and of course the access to the gorgeous beach front. The suburb also enjoys the service of the train line, arterial roads such as the Port River Expressway and Port Road to get into and around the city, as well as a choice of schools. As such, the area is particularly popular with families.

Strong growth in the suburb has seen median housing values move 8.72% to $592,500 within the last year. Buyers are increasingly viewing Adelaide as a quality place to live, with a level of liveability rivalling that of the eastern states. Suburbs like Semaphore that are well developed and close to the sought after beach side lifestyle will be high on the list of buyers.

by Adam Stone

 

Belrose/Frenchs Forest, New South Wales

Set 18kms north of the Sydney CBD, these leafy suburbs offer great opportunities for buyers looking to secure a solid family home that has been renovated or needs renovation within the $1.46 to $1.5 million market. As a result of the recent redevelopment, the streetscapes of Belrose and Frenchs Forest are experiencing a substantial transformation. Buyers who are looking for opportunities to establish their dream property is driving an increase in knock down rebuilds.

Families in particular are attracted to the suburbs thanks to being already well serviced by established infrastructure. However they are also benefitting from a raft of recent upgrades and new amenities. These include redeveloped library facilities, the forthcoming 4 Pines Brewery in Belrose and the opening of the Glenrose Shopping Village. There has also been upgraded infrastructure for the Northern Beaches Hospital, which accompany the easy 10 minute drive to the beach and access to the CBD. The area also offers a number of good schools.

In addition to these man made amenities, Belrose and Frenchs Forest also boast a number of natural attractions. They are only a 10 minute drive to Sydney’s northern beaches and Belrose backs onto the Garigal National Park for the outdoor enthusiast.

Owner occupier activity will see prices move upwards and continue to grow following the completion of development.

by Simone Luxford

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MARKET INSIGHTS – Q1, 2017 http://www.nationalpropertybuyers.com.au/market-insights-q1-2017/ Wed, 05 Apr 2017 06:00:12 +0000 http://www.nationalpropertybuyers.com.au/?p=12401 The post MARKET INSIGHTS – Q1, 2017 appeared first on National Property Buyers.

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Welcome to the new look edition of Market Insights, providing expert analysis of property markets across the country.
Market Update

Diversity in growth across the national property market is a win for buyers over the first quarter of 2017.

Much has been made of the latest CoreLogic data showing a 12.9% increase in national dwelling values over the past year, spearheaded by significant growth in Melbourne and Sydney. Most of the commentary in response to this data has focused on the fact that values have not risen this quickly since 2010, which, if you choose to believe, presents challenges to buyers.

However this is not the case. This perspective only tells part of the story. The national market actually has more opportunities than buyers may realize.

The advantage buyers have at the moment is a variety in growth rate and price points across the capital cities. YoY growth has been exceptionally strong in Melbourne (15.9%) and Sydney (18.9%), but has been far steadier, but no less consistent in Brisbane (3.7%) and Adelaide (3.4%).

Property in the two largest markets offers buyers the likelihood of strong growth in the near term, if they purchase quality property in the right locations. For other prospective purchasers smaller markets such as Brisbane and Adelaide are likely better options with lower price points and growth that is easier to keep pace with. These cities also have the benefit of the best rental yields of the five largest cities. Both investor and owner occupier buyers continue to look to these markets as a result.

What is clear is that buyers shouldn’t wait for the market to present an opportunity. There is a belief in the market that values will dip or substantially drop off, which will allow buyers to purchase at a lower price. However this is highly unlikely to happen. Growth shows little signs of abating, particularly with stock levels being down by 4% in capital cities on levels at the same time last year and continuing strong demand.

Buyers also need to remember that quality property in sought after locations will be far less susceptible to a correction. Good property will always attract significant demand. The key lesson is to not wait.

Market Overview

Melbourne has experienced particularly strong growth over the first quarter of 2017. Lower stock levels in the housing section of the market has seen strong competition within 20kms of the CBD at auction day which has contributed to continued growth.

We have observed an increase in off market opportunities in the last month or so, as well as an increase in private sales as a preference for vendors going to auction.

One of the biggest pieces of news to influence the Melbourne market was the announcement that the state government would scrap stamp duty for first home buyers for purchases under $600,000. Although this won’t take effect until the 1st of July, we believe that first home buyers will likely hold off purchasing over the next quarter.

When they do return to the market they will have a significant influence on property in the $450,000 to $550,000 bracket. Competition in this range will be very strong and prices could inflate. However, buyers need to consider whether it will be worth holding back until then. The market will likely keep moving upward and values could overtake whatever savings they hope to make from the stamp duty removal.

At the higher end of the market, we have seen an easing in competition around the $1.25 million to $1.75 million bracket, but there are still instances where properties will come under intense competition.

We saw this recently when an unrenovated three bedroom period home in Footscray went for $283,000 above reserve. We anticipated strong competition, but as the house wasn’t even livable, we were surprised by the result. Conversely, a three bedroom townhouse in a superb location in Northcote that we believed would attract a number of buyers passed in to us due to little interest. That won’t be the case with every sale, but there has been a noticeable easement as buyers currently assess their options to move or renovate and remain where they are.

Suburb Hotspots

Epping

Located 26km north of the Melbourne CBD, certain pockets of Epping are quickly showing good value for investment and owner occupier buyers.

With access to two train stations, buyers will find areas well serviced by Epping plaza shopping centre, shopping strips, the Northern Hospital, and a selection of schools. Median prices in the suburb have grown approximately 20% in the last 15 months or so to $495,500, as buyers follow growth along train line.

One of the biggest drivers of growth in the area will be the construction of the Mernda rail extension, which is scheduled to be completed by 2019. A further three stations along eight kilometres of track will continue on from South Morang station (on the eastern border of Epping), and make its way along Plenty Road up to Mernda. More people will be drawn to this area once they have increased rail access and as a result, we expect growth in Epping to be stimulated as people look for property as close to the city as possible.

The suburb is also attractive to buyers due to newer housing stock available as well as the plentiful opportunities to renovate or redevelop. These development opportunities are attracting younger couples or young families wanting to create there dream home and investors looking for developments. We anticipate the next year or so to be a good opportunity for buyers to secure property in the suburb.

Fawkner

Fawkner is continuing to show strong growth as buyers look for good value property in the north. The suburb offers one of the best opportunities within the middle ring out of the CBD, being only 12kms from the city centre.

Buyers are looking at the area as they find better value than neighbouring areas such as Coburg, Pascoe Vale and Reservoir, where median prices can range from the mid $700,000’s up to $1million.

Fawkner has a more affordable median price of approximately $650,000, however prices are likely to quickly move beyond this point. Strong growth has seen home values move up 14% in the last twelve months, from $570,000 to $650,000. Every indication is pointing to this growth continuing and if buyers want to find affordable options they need to look at Fawkner quickly.

Most of the stock available in the suburb is older housing on good sized blocks which is fine to live in as is, but offers excellent opportunities to add value later on. Developers are also beginning to move into the area as they too are finding more value for large allotments. In turn, this would likely bring younger buyers or renters wanting more low maintenance property.

We expect growth to not only continue as a result of this buyer movement, but also because suburbs further north such as Cambellfield are more industrial with fewer residential options.

by Antony Bucello
Market Overview

The Brisbane market is not slowing down. Units within the inner ring of the CBD are struggling to maintain value let alone appreciate, but the housing market is powering on.

Lower stock levels in the most sought after areas within 10kms of the CBD are seeing glass ceilings broken. We have encountered a number of properties being sold before they get onto market and when they do, many buyers underestimate the intensity of the market and miss out. For example, a property we appraised in Chelmer (7kms south of the CBD) for $850,000 – $900,000 sold at auction for $1million.

Another factor is the investors from Sydney or Australian expats from overseas. Whereas six months ago owner occupiers would be spending more than investors, the reverse is now the case. Equity rich investors from Sydney are finding ­excellent value in Brisbane and are bringing budgets of $750,000 plus.

We have also seen strong activity in suburbs 20-30kms from the CBD where some suburbs have shown a dramatic spike in sales prices this quarter, albeit in lower price brackets. But this won’t be for long. Owner occupiers are finding competition for lower priced property is pushing up value.

Despite this competition it is still a factor that buyers are sometimes not prepared with financial approvals in place and ready to move forward on a cash basis. They are struggling to secure property over the ‘war ready’ hardened, serious buyers and as such need to engage the services of a property expert to have the best chance to secure property.

Suburb Hotspots

Margate

Margate, 26kms North East of the CBD on the Redcliffe peninsula, is a coastal strip which features one of the biggest attractions for buyers in Brisbane: the only metropolitan area with access to seven kilometres of sand beaches. Thanks to rapid transformations occurring in the Morton Bay area, buyers will be looking to suburbs like Margate to enjoy the beachside lifestyle.

Increasing investment in infrastructure is boosting the area to become one of Queensland’s fastest growing economies. The construction of the Redcliffe rail extension running into nearby Kippa Ring allows resident’s rail access into the CBD, while the widening of the Gateway Motorway will allow a better commute into the city.

The combination of investment in infrastructure and population growth is also transforming the region’s visitor economy in anticipation for the area to become a tourism destination. The facilitation of commercial opportunities by the Morton Bay City Council along the foreshore areas will help to encourage local business growth, strengthen the tourism economy and enhance the lifestyle of residents living on the Redcliffe Peninsula and greater Moreton Bay Region. This is evident at the moment with some high rise complexes popping up, which will likely increase in the coming years.

At present, housing stock is the best option for investors to look at. Margate is still an affordable pocket of the peninsula and as a result is a hot spot for investors who are looking for short term gain as well as stability and sustainable growth. Growing interest in the suburb is evident from the 19% growth in median house prices over the previous three years, up to $417,000.

Ormiston

Considered the gem of the Redlands this suburb is a rising star of the coastal areas of Brisbane. The suburb is well established with wide leafy tree lined streets, excellent access to all major roads and close proximity to shops and large town centres of Cleveland and Capalaba.

Ormiston is also very tightly held. Families who are looking to settle into a quality area are attracted to Ormiston due to the larger blocks of 600 to 800 square metres and selection of quality primary and secondary schools, including the nationally renowned Ormiston College. There is also a large contingency of older residence who have lived in the suburb for long periods. As a result, property in the suburb is closely held and highly sought after. For investor buyers the suburb is exceptionally attractive in that regard, with strong opportunities to secure long term tenants complementing capital growth.

Although Ormiston is well established and desired by buyers, the suburb still offers good affordability for buyers to get into the area. Rapid growth over the last few years has seen an increase of median house prices rise 13.3% to $595,000. Comparable property in the southern cities of Sydney and Melbourne would far exceed this price point, so for interstate buyers Ormiston is absolutely a suburb to watch.

by Stephen McGee
Market Overview

The South Australian market has been on fire over the last quarter. The main driver for the strong activity Adelaide has experienced this quarter is the lower than usual levels of stock.

In the last quarter of 2016 a longer than usual winter contributed to vendors holding back from taking their property to market. There was an expectation that levels would increase over the summer however this wasn’t the case as this attitude continued into the first quarter of 2017. As a result competition has been strong and prices are showing good growth.

Buyers are becoming increasingly frustrated as less options are available and they are offering above asking prices in some situations to secure their desired property. In this instance it’s important they seek expert advice to understand the most cost effective way of securing property.

However, Adelaide still offers the most affordable median price point of all of the mainland capitals. As a result buyers are finding Adelaide a superb alternative to Sydney and Melbourne. Many owner occupiers are coming here due to the excellent quality of living, while investors from the eastern markets are finding more bang for their buck.

Sydneysiders in particular are seeing excellent value in the SA capital. Investors with budgets between $500,000 and $600,000 are common and they can secure quality investment options close to the CBD.

Recent examples of quality investments in only the last month have been properties in Lockleys and Dover Gardens.

A three bedroom property on 815sqm with a 19m street frontage in Lockleys was sold for $720,000. Ideally positioned just seven kilometres to the CBD and just five kilometres to some of the best beaches in the city, as well as being close to a number of schools and parks, the property caters to a number of buying types and is an excellent investment opportunity.

Likewise for a three bedroom home in Dover Gardens. Set on 800sqm, the property is only a couple of kilometres to the beach, schools and Brighton train station, while it’s only a 20 minute drive to the CBD via nearby Marion Road. Currently under zoning to allow for redevelopment of two dwellings and generating a rental yield of 3.6%, the purchase price of $491,000 represents excellent value for buyers coming from the east. We expect this to not only continue, but for competition to increase.

Suburb Hotspots

Semaphore

The beach side suburb of Semaphore 16kms North West of the Adelaide CBD has seen plenty of activity over the start of the year with people seeking quality lifestyle options.

Semaphore has a quality beachside lifestyle that buyers relish, but is perfectly positioned for easy access to the city for work – most residents would be in the surf within an hour of knock off! The biggest draw card for the area is the easy access to the beach, trendy Semaphore Road with eateries and quirky shopping and proximity to the CBD. The suburb is also perfectly serviced by the train line, arterial roads such as the Port River Expressway and Port Road for access into and around the city, shopping and schools.

Families will find plenty of good options in Semaphore due to the quality infrastructure and lifestyle. Growth has been strong as a result as median housing values have moved 8.72% to $592,500 within the last twelve months. More and more people are seeing Adelaide as a quality place to live, with a level of livability rivaling that of the eastern states. Suburbs like Semaphore that are well developed and close to the sought after beach side lifestyle will be high on the list of buyers.

Largs Bay

Largs Bay, just north of Semaphore is a suburb to watch carefully in the coming months.

The suburb is more affordable with a median house price of $487,000 and like Semaphore, Largs Bay enjoys easy access to some of the best beaches in the Metropolitan area and the train line allows for easy access into the CBD. It is likely to benefit from the submarine construction as people move into the area for work.

However, the suburb is likely to attract significant interest with the redevelopment of the Fort Largs Police Academy site.

The 7.4 hectare site occupies a superb location facing the beach and will be redeveloped to accommodate 250 new homes, with key amenities and features unique to Largs Bay to be maintained and incorporated into the site. The heritage listed Fort Largs will be transformed into a residential and public space with the Drill Hall to become a community space and the former barracks to be converted to apartments.

Utilising these existing assets will create a unique selling point for the suburb which will attract buyers to the area. With the new development, coupled with the enviable beach side location and lifestyle, affordability compared to nearby areas and the Submarine construction, Largs Bay will demand the attention of savvy buyers.

by Adam Stone
Market Overview

The Sydney market has seen impressive gains in the first quarter of 2017 with strong growth continuing.

Speculation of a property bubble burst that has cropped up in the last month or so is questionable. If Sydney property prices start to slow (sudden interest rate increases would be the most likely culprit) it will be more than likely a mild correction, not a downhill slide.

We are continuing to see a lack of property stock driving higher prices. Many vendors who want to sell their properties are holding off from doing so because availability of stock in Sydney is low and they are fearful they will not be able to find a new home in time for their own settlement day. In turn, competition for available listings is strong due to low stock levels which is continuing to fuel higher prices. An increase in interest rates may mean a continued lack of available stock and the competition in certain areas will remain strong.

Infrastructure projects such as the WestConnex, NorthConnex and the Norwest train line are all under construction and will cater for Sydney’s population growth, which recently released ABS figures confirmed hit five million in June 2016.

We have seen and will continue to see increased market activity in close proximity to these projects. There are some great opportunities for investors and first home buyers to purchase property along the Norwest Rail Line which is due for completion in 2019. The train line is already drawing buyers to suburbs such as Baulkham Hills, Castle Hill and Kellyville where property can be purchased within walking distance to the station and major shopping hubs. Investors with budgets up to $850,000 are able to buy good quality two bedroom, two bathroom units with parking. The huge commuter car parks and bus interchanges at each station will make commuting more convenient and are a huge drawcard for these areas.

The Northern Beaches also continues to offer strong growth and good return on investment. The revamp of the Dee Why town centre and Warringah Mall as well as the release of newly built apartments in low rise blocks has made this area an attractive prospect for home owners and investors alike. Beach side living with access to amenities and CBD express buses will continue to drive prices on the Northern Beaches.

Suburb Hotspots

Belrose/Frenchs Forest

With the median sitting around $1.46m – $1.48m these leafy suburbs offer great opportunities for buyers looking to secure a solid family home that has been renovated or needs renovation. Set 18kms north of the Sydney CBD, the streetscapes of Belrose and Frenchs Forest are seeing a significant transformation with an increase in knock down rebuilds by buyers who are looking to establish their dream property.

The suburbs are already well serviced by established infrastructure which is attracting family buyers, but the area has benefitted further from a raft of recent upgrades and new amenities. These include the Glenrose Shopping Village opening, a revamped library precinct and the imminent arrival of the 4 Pines Brewery in Belrose. There has also been upgraded infrastructure for the Northern Beaches Hospital, which accompany the easy 10 minute drive to the beach and access to the CBD.

The area also offers a number of schools, in addition to natural attractions. Belrose backs onto the Garigal National Park and the suburbs are only a 10 minute drive to Sydney’s northern beaches.

As a result of the continuing redevelopment of property in the area coupled with the amenities and infrastructure already in place, expect to see owner occupier activity move prices upward and continue to grow when development is complete.

Castle Hill

The construction of the Norwest rail line running from the CBD extending to Rouse Hill 42kms North West of the city is drawing more activity close to new stations along the upgraded rail line. Castle Hill, 30kms North West of the CBD, will be one such area, benefiting from the new Castle Hill station that will run through the middle of the suburb.

The new train station will complement the established Castle Towers shopping district and combined will become an exceptionally attractive area for investors and first home buyers looking for property close to key amenities.

Buyers with budgets of up to the mid $800,000’s to low $900,000’s will find good quality two bedroom, two bathroom units with parking. However they will need to ensure they buy within walking distance to the train station and shopping district to see maximum growth. As a result property that sits within a couple of kilometres around this area will likely be in high demand.

The suburb has a strong unit rental yield of 3.49% and median unit prices have seen steady growth of 4.38% in the last year for a median price of $835,000. We expect this to increase in the coming year as buyers move in before competition really starts to intensify.

by Simone Luxford
Lewis Street, Brighton, SOUTH AUSTRALIA

Client type and budget:

Investor client with a $600,000 budget. Full Premium Service – Search, Assess and Negotiate

Property:

A spacious property on a massive 864sqm block in a prime location. An ideal redevelopment opportunity minutes to schools, Westfield’s Marion, parks and less than two kilometres to the beach and Brighton train station and 15kms to the CBD.

Client’s brief:

The client’s primary aim was to purchase a property located in an inner city or metro area that had strong re-development potential. The client was a surgeon at an Adelaide hospital and had little time to research the planning requirements for property development, let alone spend the time searching or buying a property and therefore needed expert advice.

Solution:

The client engaged National Property Buyers on a Premium Service to secure their property. South Australian State Manager Adam Stone undertook a comprehensive search, assessment and negotiation process to secure the best property to fit the client’s specific criteria.

Brighton was identified early on in the search phase as a suitable suburb to review. Well serviced by lifestyle amenities, the area had also experienced strong capital growth in recent times and showed signs of strong growth potential in the future.

When this property came to the market, it was immediately apparent it would suit the clients brief perfectly. Situated on a large well-proportioned block with a 23m frontage the property had an opportunity to develop with a pair of two detached dwellings.  In addition, there were numerous lifestyle amenities nearby, many within walking distance which included Brighton station, the beach, schools and Westfield’s Marion shopping centre.

The Selling Agent was not accepting offers prior to auction and unsurprisingly the property attracted a large crowd at auction day.

Competition to secure the property was strong and there were a number of bidders pursuing the property. Adam’s confident bidding saw off the other bidders and put the client in the ideal position to secure the property.

However, bidding quickly reached the clients upper limit. Adam knew that the property would be perfect for the client, so with their blessing, Adam pushed a bit harder to secure the property. Taking into account the strong capital growth in the area and the value add opportunities to redevelop, Adam believed that pushing a bit harder would be beneficial in the long run.

Purchase:

Adam’s decision was vindicated and the property was successfully purchased for $607,000. Although this was slightly over the client’s initial budget, the property was perfect for the clients brief and was worth pursuing. According to CoreLogic data, median house prices in the suburb have moved up 4% in the three months following the purchase, further confirmation that the decision to pursue the property was the right one.

Wellington Street, Virginia, QUEENSLAND

Client type:

Previous NPB client looking to sell their mother’s property through NPB’s Vendor Advocacy service

Property:

A 1950’s three bedroom home in original condition on 1,214m2 over two allotments.

Client’s brief:

The client’s wanted to sell the property with as little stress as possible and did not want to deal directly with a Selling Agent.

Solution:

Previous clients of National Property Buyers’ Buyer Agent service needed to sell their mother’s property with as little stress as possible, due to a strong sentimental connection with the home. To do this they engaged QLD State Manager Steve McGee to handle the campaign as Vendor Advocate.

Steve assessed the property and found that the home was set over two, 607m2 allotments. However with Steve’s experience in this field he also knew that the property could be reconfigured into three, approximately 405m2 allotments, although council approval would be required. Regardless, the site presented excellent opportunities for numerous buyer types.

In addition, Steve advised the vendors that the best course of action would be to engage a Selling Agent who knows the area intimately and would have a strong database of buyers who would be looking for this type of property, as well as a working knowledge of small developments such as this.

Following the client’s mother moving into her new residence the property was ready to launch to market. With the vendor’s approval Steve contacted two reputable Selling Agents who knew the local area exceptionally well and were able to tap into a strong buying pool.

As both of the agents informed Steve that they had a potential buyer, Steve advised the vendors to engage both Selling Agents on an ‘open listing’ (meaning either can sell the property). However, Steve advised the clients to do so only if the Selling Agent’s promoted the property to their existing database and were not to be marketed publicly. Further, the agents would have only two weeks to field the best offers before the vendors signed an exclusive authority with only one agent.

With all in agreeance and the engagements signed, the Selling Agents contacted their buyer databases. They soon returned to Steve with offers ranging from $700,000 to $750,000. Steve knew the massive potential of the property and advised the agents that their buyers would need at least $800,000 to secure the property.

The agents then came back with revised offers, one which was especially favourable with a 14 day due diligence period and a three month settlement.

Result:

The property was sold for a superb result of $816,000. Better still, through Steve’s advice to access the Selling Agent’s existing database the vendors saved more money by not having to spend anything on marketing and advertising, and they avoided the stress of numerous inspections.

Grevillia Road, Oak Park, VICTORIA

Client type and budget:

An investor client with a budget of $800,000. Full service – Search, Assess and Negotiate

Property:

A brand new three bedroom townhouse in a boutique block of three

Client’s brief:

A time poor client in the financial services industry was looking to secure an investment property within the inner or middle ring of suburbs outside the CBD. The investor wanted to find something flexible that could be suit a family or young professionals and that was close to transport, roads into the CBD and close to schools.

Solution:

The inner northern was immediately identified as a good starting point to find a property that suited the clients brief.

Senior Buyer’s Agent Brenton Potter knew the North West area of the city intimately having grown up and lived there. Suburbs like Oak Park, Fawkner and Pascoe Vale have shown excellent growth in recent years and were selected as such.

The property at Grevillia Road was quickly identified as suiting the clients brief perfectly: A brand new three bedroom townhouse close to the Snell Grove shopping village, parks and minutes to the Northern Golf Club were key attractions. Best of all the property was only 750 metres to the Oak Park station and had easy access to Pascoe Vale Road into the CBD. All boxes were ticked.

Available through private sale, a considered analysis and assessment was needed to formulate an accurate offer that satisfied the Vendors without over paying.

Brenton conducted a thorough analysis of the property and submitted an offer, which was far more satisfactory to the Vendors than the competition without exceeding the $729,000 asking price.

Purchase:

The Vendors accepted Brenton’s offer and the property was purchased for $725,000 – $4,000 under the asking price and $75,000 under the client’s budget.

A rental assessment has been conducted by NPB Property Management and the property is anticipated to attract up to $450 per week, which would equate to a 3.23% yield to the owner.

Eveline Street, Margate, QUEENSLAND

Client type and budget:

An investor client with a budget of $1,400,000. Full Service – Search, Assess and Negotiate

Property:

Three standalone adjoining blocks in the emerging Redcliffe Peninsula. All a walk to water, schools, shops and cafes.

Client’s brief:

The client had a very specific brief to meet. With a budget of up to $1.4 million, they wanted to purchase a high end property in a high growth area, or make two purchases. If the client had the opportunity to make two purchases, the properties had to be in good condition with the ability to add value while also being tenant ready.

Solution:

NPB advocates sourced this property through their off market networks. At 1,365qm, the three combined allotments were a rare offering and would attract intense competition once on the market as a potential development site.

NPB advocates were the first agents through the property and recognized the excellent opportunity presented. An offer was quickly submitted before the property went onto the market.

Purchase:

An offer was submitted to the vendors which triggered negotiations. Thanks to NPB advocates expertise in this space, the three properties were purchased for $1,022,000. This was an excellent result for the buyer as it was almost $380,000 under their budget and $103,000 under the asking price.

To find out how National Property Buyers can assist you achieve an outstanding result with your property transaction, contact the relevant state manager here

 

Melbourne

The rental market in Melbourne saw a very strong opening quarter to 2017. The January/February period is often the busiest in the calendar year for rentals as tenants move into new properties to start new jobs or study and this was reflected in the activity NPB Property Management saw this year.

Competition was exceptionally strong for NPB property and most properties were leased within a couple of weeks of coming onto the market, with most securing tenants within 1 to 2 inspections. Tenants were also consistently offering above the asking price in order to strengthen their position when negotiating their application.

Furthermore, tenants were also offering more than the required one month to six week bond up front. In some cases, it was not uncommon for prospective tenants to offer three to six month’s rent upfront, such was the level of activity on the market.

NPB Property Management found that areas in the inner west and inner north were particularly popular, especially with young professionals who want to be close to the CBD in areas that offer some slightly more affordable options.

We had a two bedroom apartment in Ascot Vale that had in excess of 50 people in attendance at the only inspection and a two bedroom Villa in Fawkner which attracted 40. Both properties were leased to young professionals who wanted to be close to transport into the CBD.

Vacancy rates for NPB property achieved a superb 1.1%, compared to the overall rental market at 2.4% as per REIV data.

by Ivonne Di Perna

 

Brisbane

NPB Property Management QLD experienced the high volume of tenant enquiries and quickly secured tenants early in the quarter as anticipated. Most properties experienced limited vacancy times for owners as property were let on the first inspection within the existing tenants notice period. As a result of NPB Property Management QLD’s diligence in securing tenants for this period, the office achieved an outstanding vacancy rate of 1.5% at the end of the quarter.

Houses outperformed units in demand and applications received and were not restricted to a particular area.

We secured a number of successful lettings that proved the benefit of working closely with a Buyer’s Agent, in particular houses in Scarborough and Birkdale. We secured tenants for both of these properties after only the first inspection and also achieved rental increases.

As these properties were purchased by our Buyer’s Agent service, we were able to negotiate for the vendor to rent back for a short period before taking them to the rental market. This allowed our clients to receive rental income immediately upon settlement, and gave the PM department time to advertise for a new tenant.

Units were rented to either students or professionals wanting easy access to study or work, while houses were sought by families where schooling was a huge requirement.

The second half of the quarter eased slightly in terms of number of enquiries, however this is as expected with the rental cycle. Historically this should pick up again in the next quarter.

by Tracey Farrell

 

Adelaide

The Adelaide rental market was exceptionally strong over the first quarter of 2017. Ordinarily activity is the most intense over January and February and normally quietens down by mid-March. However that has not been the case this year. The market is continuing at a rapid pace and shows no signs of slowing down.

Many of the applicants on the market at the moment are families or young couples and a number of those seem to be relocating from interstate for work. As a result larger houses with three or four bedrooms are attracting plenty of attention. This is especially true of properties located close to the beach or the CBD that are close to good schools.

One example was a property we had in Morphetville. The property was within a 15 minute drive to the beach with a choice of good schools nearby, so it was no surprise we had over 25 groups through on the first open and let for over the asking price.

There seem to be plenty of prospective tenants still out and about looking for their new home and this is benefiting our landlords a great deal with opportunities for increased rents and very low vacancy periods between tenants. In fact, most of our landlords have had no vacancy period if their property has been available for lease between the outgoing and ingoing tenants, much to their delight.

Finally, landlords are beginning to see some increases in rent roll out across the board, especially in sought after beach side and inner metro suburbs

by Katherine Skinner

If you want to know more about any of the markets covered in this edition don’t hesitate to contact our State Managers here. 

Or if you would like one of our experienced advocates to contact you to assist with your transaction, fill out our Help Us Help You form!

The post MARKET INSIGHTS – Q1, 2017 appeared first on National Property Buyers.

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No, there is not a property bubble in Melbourne and Sydney http://www.nationalpropertybuyers.com.au/property-bubble-melbourne-sydney/ Fri, 24 Mar 2017 04:32:26 +0000 http://www.nationalpropertybuyers.com.au/?p=12367 The post No, there is not a property bubble in Melbourne and Sydney appeared first on National Property Buyers.

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Speculation on a bubble has been extensively covered in the media over the past week, but is it all as ominous as it seems? No.

Although price growth in Melbourne and Sydney has been stronger over the last three to four years than anywhere else in the country, speculation – particularly by media outlets – that the cities are experiencing a bubble and headed for a housing collapse are incorrect. Why?

The nature of a bubble is that at some stage it will burst. Something would have to trigger that to happen.

At this stage, the most likely trigger would be a significant and sudden increase in interest rates set by the banks or the cash rate set by the RBA which could cause a drop off in prices. But that is not going to happen.

Sydney's growth has been strong, but speculation of a bubble is incorrect.

Sydney’s growth has been strong, but speculation of a bubble is incorrect.

The cash rate has been steadily decreasing since October, 2011 when it was at 4.75%. When it does eventually rise, it will do so in steady increments of 25 basis points. There has only been one instance of a larger increase in a single month in the last 22 years, way back in February 2000 when rates went up by 50 basis points.

The point is that a significant and sudden rise in interest rates is at this stage the most likely trigger for a price fall. But that isn’t going to happen.

What is more likely to happen is an easing of prices and at worst a slight correction. If that occurs – and it still may not eventuate – values would only drop by a few percent.

A key factor to growth in Sydney at the moment is lower stock levels. There is a catch 22 situation present, whereby vendors are reluctant to sell for fear it will be too hard to find a property, and buyers find it hard to buy because there are less houses for sale. As a result, many buyers are paying too much for property in order to secure it, doing themselves a disservice and pushing prices higher.

Vendors waiting for the fabled drop in prices are also not helping their cause by waiting as the market moves beyond them.

The reality is that it is possible for buyers to locate and secure property at the moment. However they do need expert guidance in order to find property as quickly as possible and for the lowest price.

This leads to the other factor at play in the housing discussion: buying quality property.

Like Sydney, Melbourne is highly unlikely to see a collapse in prices.

Like Sydney, Melbourne is highly unlikely to see a collapse in prices.

“Quality property will always be better insulated from market influences” says NPB Victorian State Manager, Antony Bucello.

“The better the property, the better its prospect for capital growth, and the better protected it is against negative value fluctuations.”

“Like Sydney, we have seen strong growth in Melbourne, but we are incredibly unlikely to see a collapse. There will likely be a slowing of growth, perhaps around the 5% mark across the market, but better quality properties will or course perform better.”

If there is a price correction, poorer quality property will be hit harder by a decrease in value than higher quality stock. Property that is well constructed and designed, and located close to transport and amenities will always retain its value better.

Of course, finding and purchasing that type of property doesn’t happen by magic or just luck. It takes expert advice and insight to find the best quality property.

By Simone Luxford

The post No, there is not a property bubble in Melbourne and Sydney appeared first on National Property Buyers.

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The three consequences of the Stamp Duty changes http://www.nationalpropertybuyers.com.au/three-consequences-stamp-duty-changes/ Fri, 10 Mar 2017 01:48:51 +0000 http://www.nationalpropertybuyers.com.au/?p=12207 The post The three consequences of the Stamp Duty changes appeared first on National Property Buyers.

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As of the 1st of July, first home buyers in Victoria will not have to pay stamp duty on property up to $600,000. A sliding concession scale will apply for property purchased between $600,000 and $750,000.

The new policies were announced by the Victorian government last Sunday and are some of the most significant to directly assist buyers in recent years.

This sounds like a golden opportunity at first, but there are a few factors at play before buyers get too excited.

There’s going to be more competition

First home buyers are going to play a bigger part on auction day. Unburdened by stamp duty, they can afford to bid with a bit more confidence than they otherwise would. There will be more competition as a result which will likely have an effect on prices. 

First home buyers should consider how they can best take advantage of the changes to Stamp Duty

First home buyers should consider how they can best take advantage of the changes to Stamp Duty

Properties priced at the entry level – around $450,000 to $500,000 – will attract the most attention. This will especially be the case for townhouses and apartments, and properties in the middle ring out from the city (more than 10kms). Buyers need to be prepared that if they go after property after the 1st of July, there will likely be more activity around this type of stock.

Housing stock in estates further out will likely provide buyers with the more options where there is more supply.   

Don’t over pay

Having $15,000 or more knocked off your mortgage is a dream for a home owner. But buyers should be wary of over paying for property.

First home buyers can absolutely push a bit harder in order to get their desired property – if they need to. For example, if at auction it comes down to two, three, or four thousand, buyers should go for it. They do have an advantage, after all.

But they do need to be wary of over spending. Adding their Stamp Duty savings to their budget will 1) inflate the value of the property, and 2) take away the savings they are making. Buyers need to remember they should get the property for the lowest possible price, using all of the savings would only work against them in the long term.

Having said that, the stamp duty savings does allow buyers to look at properties that may have previously been just out of their price range. In that regard the savings are a great opportunity.

It may not be worth waiting for July 1

If buyers are thinking of holding off until after the changes come in on the 1st of July, they shouldn’t. For buyers who were previously wanting to spend up to $600,000, they would save about $15,000 in stamps under the old system. If they wait until July to get those savings growth in the market will likely over take the savings they will make.

For example, median dwelling prices in Melbourne were $610,000 at the end of February according to recent CoreLogic data. In the three months to March, the median unit price moved up 5.5%, or a bit over $33,000. How much prices move between now and July only time will tell, but it is almost certain prices are going to continue creeping upwards.

If buyers wait until these policies take affect they may lose out on most or all of the savings as the market moves upward. They shouldn’t wait if they are looking at the perfect home now. They should seriously consider pursuing it now. 

Exactly what affect the abolishment of Stamp Duty will have on the market remains to be seen, but buyers will need to be aware of potential factors like increased competition or paying too much for a property.

Thankfully these are issues that can be handled by an experience Buyers Agent. With the savings made from not paying Stamp Duty, investing in the expertise of a Buyer’s Agent would be the best thing for first home buyers to do to get an advantage over the rest of the market.

by Antony Bucello

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Dani Wales on buying and renovating http://www.nationalpropertybuyers.com.au/dani-wales-buying-renovating/ Fri, 24 Feb 2017 05:16:20 +0000 http://www.nationalpropertybuyers.com.au/?p=12193 The post Dani Wales on buying and renovating appeared first on National Property Buyers.

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Renovation gurus and The Block alumni Dan Reilly and Dani Wales have again proven that hard work, smart planning, and savvy buying are key to property renovation success. Their latest project, a double fronted Victorian in Seddon, was purchased for $462,000 in 2013. Three years later after an extensive renovation the property was sold for $1,300,000. So how did they achieve such a superb result?

Dani speaks about the experience buying the home, and what buyers need to do if they are looking to renovate.

 

Dan and Dani had very specific criteria when they began looking for their next renovation project, way back in 2013. They ideally wanted a freestanding, double fronted period home in desperate need of a renovation and that could one day accommodate a family.

They chose to look in the western suburbs of Melbourne, where there was a good choice of stock to fit their criteria and at more affordable prices.

The Sydenham street property initially wasn’t the couples preferred purchase. Although it fit almost all of their criteria, they believed a better option would be on the market. They found what they were looking for in a dilapidated double fronted home in nearby Kingsville. Unfortunately, they were out bid at auction.

Incredibly, they found that the Sydenham street property was still on the market.

“It had hung around for months” said Dani. “I couldn’t believe that it had still not found a buyer when we decided to go after it.”

Dan and Dani bit the bullet and put forward a price. Unfortunately, they received no response from the agent.

At this point they decided to engage Buyer Agent, Antony Bucello from National Property Buyers on an Assess and Negotiate service to assist in getting the property off the market.

Antony provided a comprehensive assessment of the property and helped the couple formulate a revised offer, one they were confident would secure them the property. The key to this negotiation was to submit an offer attractive enough to secure the property, but not pay too much and eat into the renovation budget.

The property had only the bare bones in place upon purchase. An immense challenge but it also provided a blank canvas for renovating.

The property had only the bare bones in place upon purchase. An immense challenge but it also provided a blank canvas for renovating.

Said Dani in her blog, Basic Habitat: “were worried about outlaying too much money on a property that wasn’t even liveable at the time. However, with the knowledge from our Buyer’s Agent coupled with the reporting on the area, those concerns were eased.”

“Our Buyers Advocate had access to data and reports that we didn’t, and after perusing a mountain of information we were confident that if we increased our purchase budget a little further that we would still be able to execute the build within our overall budget.”

Thankfully, Antony was able to negotiate the purchase and Dan and Dani set to work.

And work they did. The property only had two front rooms at the commencement of the renovation and there were no walls or ceiling. The house is now a stunning three bedroom, two storey family home.

“We wanted to really maximise the space and liveability” said Dani. “Putting a second storey on was a gamble, but it definitely paid off.”

The house has undergone a superb resurrection with “great storage and entertaining spaces” throughout. The decisions made and the work put in were vindicated when a superb sale result was achieved after the couple reluctantly decided to sell the property.

For buyers wanting to do something similar, they should be warned: buying a property to renovate and potentially sell requires and enormous amount of planning and hard work.

Thankfully, an experienced hand like Dani has come key advice.

 

The most important thing is to thoroughly research the area you are thinking of buying in. While this seems obvious, you can never do too much, according to Dani.

“You need to research the area, but you really need to look closely at the actual location you want to buy in.”

“Spend time in the area, drive through the streets. We spent a lot of time doing this to get a real feel for the location”.

Buyers need to view the area from the perspective that someone will be living there for a long period of time; be aware of not only amenities, but the street scape, traffic – essentially everything.

After: the renovation focused on creating new living areas and added another level. Photo credit: Elizabeth Allnutt

After: the renovation focused on creating new living areas and added another level. Photo credit: Elizabeth Allnutt

This also extends to finding and choosing a builder, which is “one of the most important things” in any renovation said Dani.

“Finding the right builder, one that you can form a strong relationship with, is really important. You want to feel comfortable to be able to ask them anything.”

“Do your research and take your time to find the best one for you. Read reviews, ask family and friends. Don’t rush to the first option.”

 

Budget is the next big thing. As any renovator, or fan of renovating shows on television will know, having a realistic budget and sticking to it is vital. Not having enough allocated in reserve is where many renovators can come unstuck.

“You do need to be realistic and be prepared with your budget” says Dani. “You need at least 5% on top of your estimated construction budget for contingencies.”

Having an additional 5% on top of your base budget allocated for emergencies might seem significant, but not when you come across any nasty surprises ­– which is almost certain to happen.

 

After: the property has been completely resurrected. Photo credit: Elizabeth Allnutt

After: the property has been completely resurrected. Photo credit: Elizabeth Allnutt

Finally, Plan everything. “Absolutely everything” says Dani.

“You need to be 100% sure of every element. Layout, fixtures, fittings, even any furniture you intend on putting into the property once completed. Everything. And you need to be making those decisions at the start and sticking to them.”

Deciding on exactly what the end result will be may seem like a daunting task initially, but it will pay off later on.

“Knowing every aspect of your renovation before you actually begin helps enormously when it comes to budgeting, and even just getting through any hiccups that may arise” says Dani. “You know how much you can spend, and how much you may have up your sleeve, and can plan accordingly.”

“Being as organised as you can at the very beginning means less delays and less stress during construction. And hell, you may actually even enjoy the process.”

It’s this level of planning and extensive research with property experts and tradesman that will put renovators in the best position. Always speak to a property expert before making a decision on what to purchase.

 

by Rob Di Vita

The post Dani Wales on buying and renovating appeared first on National Property Buyers.

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How property can be a great use of your super http://www.nationalpropertybuyers.com.au/property-can-great-use-super/ Thu, 09 Feb 2017 23:21:09 +0000 http://www.nationalpropertybuyers.com.au/?p=12170 The post How property can be a great use of your super appeared first on National Property Buyers.

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Super funds are usually a mystery to most Australians, but they can actually be an incredibly useful way of investing in property. But getting the right advice from a financial professional is crucial.

40% of Australians don’t know how much is in their superannuation fund, according to findings from the MLC Wealth Sentiment Survey in 2016.

This perhaps isn’t surprising given the long term nature of Superannuation. Most people put it off as something to think about later. The problem with that attitude is that by the time people turn their attention to their fund it can be too late to meaningfully improve their balance.

Investing the time to manage a fund years before retirement is crucial, and investing in property through a super fund can be an excellent way of utilising those funds. The key advantage of property over other investment assets is the long term stability.

Purchasing property through a super fund can be a great way to utilise your funds. Speaking to a financial adviser and finance professional first is essential.

Purchasing property through a super fund can be a great way to utilise your funds. Speaking to a financial adviser and finance professional first is essential.

“Property investment in a super fund is often favoured by people who don’t like seeing their super balance rise and fall with the share market” said Joe Virgona, Certified Financial Planner with Your Money Manager.

“In that regard it can be a good option for people who want some more control over their super.”

One of the key advantages of purchasing property through a SMSF is that the loan is paid off via not only the rental income, but also the super contributions.

That’s in addition to a buyers own income, although how much they can contribute will depend on the contribution caps in place. For example, for the 2016-2017 financial year anyone aged under 50 years would be able to make before tax contributions of up to $30,000 without incurring additional tax charges.

It is important to note that these restrictions are susceptible to changes in legislation and buyers need to speak to a qualified financial expert before making additional contributions.

Setting up the appropriate structures to purchase with a SMSF will also require the expertise of an accountant and financial planner before the purchase can be made.

“An accountant will need to set up the structures for a self-managed super fund and a financial planner will need to prepare an investment strategy for the fund” said Virgona.

“There are initial costs to establish a self-managed super fund. It typically costs anywhere from $3,500 to $5,500 to establish the correct structures and get everything set up. In addition to the initial set-up, there are ongoing audit costs and obligations as well.”

Despite the initial costs, investing in property through a superfund can be a good option for some people, according to Virgona.

“It is an option for people to consider should they be looking at what they can do with their super fund. It can be a way to buy an investment property but as there are a number of restrictions to consider, investors should seek advice as the first step”.

Once the fund is properly set up, buying the right property is crucial.

“People would obviously be relying on these investments to fund their retirement, so it would need to be a quality investment” said NPB Buyer Advocate, Rob Di Vita.

“Having said that, the philosophy is that the investment would be sold off once someone is approaching retirement. It would be a long term hold, during which time the property would almost certainly appreciate.

Of course, having the peace of mind that a quality purchase has been made is always a good thing”.

National Property Buyers is not a financial adviser. Speak to a financial adviser and finance professionals before making any decisions. 

by Antony Bucello

 

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What buyers in Sydney can’t afford to do http://www.nationalpropertybuyers.com.au/buyers-sydney-cant-afford/ Fri, 27 Jan 2017 03:18:30 +0000 http://www.nationalpropertybuyers.com.au/?p=12145 The post What buyers in Sydney can’t afford to do appeared first on National Property Buyers.

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Younger buyers looking to get into the Sydney market have had to contend with a number of years of accelerated growth. While they may be reticent to spend more money to purchase property, investing in the expertise of a Buyer Agent to secure their property is now vital.

 

House prices in Sydney have reached a new record median price of $1.1 million, according to Domain property data. Competition looks to be just as intense in 2017 as it has been in previous years as stock levels remain low.

Younger buyers are probably looking at this scenario and wondering exactly how they will purchase. Barnaby Joyce has already made the ‘helpful’ observation that people should move to regional areas where property is cheaper rather than in the competitive metro markets, but they need not do that.

The best thing younger buyers can do to buy in a highly contested and fast moving market like Sydney is to engage a Buyer Agent.

Most will baulk at the thought of having to put up more money just to buy a house. Engaging an advocate seems like a waste of money when they can do it themselves.

But rather than thinking of engaging a Buyer Agent as an expense, the service should be looked at as an investment.

House hunters in Sydney can't afford to find property without expert advice

House hunters in Sydney can’t afford to find property without expert advice

In a highly competitive market like Sydney its vital buyers have access to expertise and experience to help them purchase as quickly as possible.

“Part of the issue is that buyers entering the market for the first time don’t know what they don’t know” said NSW State Manager, Simone Luxford. “They’re learning about property buying while they’re trying to buy and that drags out the process.”

A common scenario is buyers looking in areas that don’t meet their budgets. They can often be outbid at auction, which then prolongs their search. The problem of repeatedly missing out on property in a hyper competitive market like Sydney is that prices quickly move beyond buyers budgets.

“Buyers who are getting their first property are still understanding the market. They can almost always misjudge where they should be looking or the type of property they should go after.

“A Buyer Agent will actually be able to advise them on where they should be looking and how they can get a property off the market.”

Despite this invaluable insight, first time buyers see engaging a Buyer Agent as an unnecessary expense.

“First home buyers in particular need expert advice. There’s so much about the market and the buying process they don’t know, but don’t realise they don’t know” said Simone.

“If that inexperience results in them spending months and months looking for property while prices continue to rise, then investing in an expert to assist makes perfect sense.

Any money they may have saved not engaging an advocate is chewed up as prices rise, so they can easily end up worse off in the long run. Considering that you can’t afford not to have an advocate in your corner.”

For advice on how a Buyer Agent will help in your property search, call National Property Buyers today.

by Brenton Potter

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