Everyone’s heading to Victoria…
Victoria is the most popular destination in the country for people moving from other states. It’s also Australia’s fastest growing state at 1.7 per cent, compared to an overall Australian growth rate of 1.3 per cent, according to figures released by the Australian Bureau of Statistics (ABS) today.
ABS director of demography Beidar Cho says that over the year to September 2015, only Victoria and Queensland experienced net increases from interstate migration.
“Victoria gained 11,200 people from interstate migration, which is up from 8,500 people in the previous year, and Queensland gained 6,900 people, which is up from 5,900 people in the previous year,” Cho says.
All the other states and territories recorded net interstate migration losses, with New South Wales recording the largest loss at 7,500 people, despite the state growing by 102,200 people over the year ending September 2015. Victoria narrowly exceeded NSW’s growth, with an increase of 102,300 people overall.
Prior to 2010, Victoria’s proportion of Net Overseas Migration (NOM) remained steady at approximately a quarter of all NOM to Australia. This began to change after 2012 when the proportion of NOM to Victoria and NSW began to climb as the proportion of NOM to Western Australia and Queensland began to drop.
In the year ending September 2015, NSW continued to receive the highest proportion of NOM at 40 per cent. Victoria increased its proportion to 33 per cent of Australia’s total whilst WA and Queensland both received around 10 per cent.
Australia’s population grew by 313,200 people (1.3 per cent) to reach 23.9 million by the end of September 2015.
Net overseas migration contributed 167,700 people to the population (7 per cent lower than the previous year) and accounted for 54 per cent of Australia’s total population growth.
Net overseas migration was the major contributor to population change in NSW, Victoria and South Australia.
Over the year, natural increase contributed 145,600 people to Australia’s population, made up of 298,200 births (4 per cent lower than the previous year) and 152,700 deaths (1 per cent higher than the previous year).
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Sydney property prices fall in Dec quarter
The Residential Property Price Index (RPPI) for Sydney fell 1.6 per cent in the December quarter 2015 following positive quarterly growth over the last three years, according to figures released today by the Australian Bureau of Statistics (ABS).
Sydney established house prices fell 2.1 per cent and attached dwellings prices fell 0.8 per cent in the December quarter 2015.
Annually, Sydney residential property prices rose 13.9 per cent.
In other capital cities in the December quarter 2015, the RPPI rose in Melbourne (+1.6 per cent), Brisbane (+1.6 per cent), Adelaide (+0.9 per cent), Canberra (+2.8 per cent), Perth (+0.5 per cent) and Hobart (+2.5 per cent) and fell in Darwin (-1.8 per cent ).
For the weighted average of the eight capital cities, the RPPI rose 0.2 per cent in the December quarter 2015 and rose 8.7 per cent over the previous year.
The total value of Australia’s 9.6 million residential dwellings increased $31.6 billion to $5.9 trillion. The mean price of dwellings in Australia is now $612,100.
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Perth’s fastest selling suburbs
Heathridge, Leederville and Shenton Park top the list of Perth suburbs that have recorded faster than average selling days for the year to February 2016.
Although Perth buyers are still in a good position to take their time finding the right home, Real Estate Institute of Western Australia (REIWA) president Hayden Groves says reiwa.com’s latest data shows a number of suburbs were experiencing faster than average turnover.
“The average selling days for the overall Perth market for the year to February 2016 is 62 days, however when we drill down to suburb level we see numerous pockets across the metropolitan area where it takes much less time to sell and where buyers need to act quickly to secure their purchase,” he says.
LJ Hooker Joondalup senior sales consultant Mark Pitman says he’s not surprised Heathridge takes out top place in the data findings.
“A lot of Joondalup infrastructure is now being completed. What it comes down to is good infrastructure, we’ve got good roads, good schools attracting families and shopping amenities,” he says.
“Ocean Reef Road has just been upgraded, we’ve now got direct route to the beach,” he adds.
The analysis also shows that half of the suburbs on the list had an overall median price (across houses and units) below $500,000 – traditionally the first homeowner market.
“First homebuyers remain active in the Perth property market with current market conditions continuing to entice this demographic to take their first step into home ownership,” Groves says.
Perth’s 10 fastest selling suburbs
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Aussies prepared for worst with mortgages
A new study by Mortgage Choice has found that almost one in four Australians have a financial buffer of more than 12 months’ wages in their mortgage.
According to the 2016 Money survey, 23.4 per cent of respondents are not only up-to-date with their mortgage repayments but have the equivalent of at least 12 months’ wages sitting in their offset account or paid off their loan. By comparison, in 2015, just 13 per cent of respondents said they were in the same financial position.
Mortgage Choice CEO John Flavell says it’s pleasing to see that so many Australians are building a significant financial “safety net” into their mortgage.
“Contrary to popular belief, it’s becoming more and more apparent that Australian homeowners are feeling pretty confident about their finances and are making financial decisions that reflect this confidence,” he says.
“The survey found that the vast majority of mortgage holders are ‘very comfortable’ managing their debt.
“Of course, this data’s hardly surprising when you consider that interest rates are currently sitting at 60-year lows, resulting in significantly lower mortgage repayments for most homeowners.
“Of the respondents surveyed, 83.3 per cent said they were either making additional mortgage repayments each month or had a decent amount of savings stored in their offset account.”
With interest rates so low, Flavell says now is the perfect time for mortgage holders to ramp up their mortgage repayments or plug more money into their offset account.
“The more money you contribute towards your mortgage each month or the more money you have in your offset account, the faster you’ll pay off your debt.
“Data from the Australian Bureau of Statistics shows that the average gross wage for an Australian full-time worker is approximately $81,000 a year,” he said.
“If the average worker was to have their net salary ($61,441) sitting in their offset account, they could potentially shave seven years off a $350,000 home loan with an interest rate of 5 per cent. Better yet, they’d be able to save themselves more than $153,000 in interest*.
“Having a substantial amount of money in your offset account or contributing additional funds to your mortgage each month can help you to shave years off the life of your loan and potentially save you thousands of dollars in interest.”
Across the nation, borrowers in Victoria and New South Wales had the biggest financial buffer in their mortgage, with 27.4 per cent and 26 per cent respectively stating that they have more than 12 months’ wages in their home loan.
Western Australia wasn’t far behind, with 24.3 per cent stating that they had more than 12 months’ wages in their mortgage, while 19.8 per cent and 19.5 per cent of respondents in Queensland and South Australia were in the same position.
“It’s interesting to note that Victoria and NSW are the frontrunners in this particular field, given that property prices (and therefore mortgages) are among the highest in the country,” Flavell says.
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Standing out from the crowd
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This personal trainer and life coach has the momentum he needs to keep building on his $1.8 million portfolio and become an elite investor with 10-plus properties.
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API-143 2016-03-14
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Who’s the seller now?
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Denise and Steve Trenorden signed a contract on a bargain house in Adelaide… and then it was repossessed by the seller’s bank.
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API-143 2016-03-11
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Fears gaol reopening could hurt area
Proposals by the NSW Government to reopen Parramatta Gaol will “stop the exciting urban renewal proposals for North Parramatta”, according to the Urban Taskforce.
“The NSW Government seems to now have two contradictory approaches for the renewal of North Parramatta,” CEO Chris Johnson says.
“On one hand UrbanGrowth NSW proposes new residential towers around the old gaol and the proposed light rail will connect the precinct ,while on the other hand the government proposes to reopen the gaol, which doesn’t send a welcoming signal to incoming residents.”
Johnson says the state government has given a positive focus to Parramatta as the second CBD for Sydney, reflected in some strategic planning and the announcement of the proposed light rail.
“This has led to strong market interest in developing residential and commercial buildings in the city centre and in the North Parramatta campus. Their proposal to relocate the Power House museum to Parramatta adds to the build-up in confidence that the city is becoming a very desirable place to live and work in.
“The confidence that is growing about Parramatta’s maturity as a cosmopolitan centre could be set back by the reopening of a gaol on the city’s doorstep,” he adds.
“The reopening would certainly be a setback for the government’s recently announced plans to provide much-needed housing on the land adjacent to the old gaol.
“The proposed urban renewal will reinforce the connection to jobs in the Westmead Medical Precinct and have all of this connected by light rail.
“There must be other options for a new gaol that doesn’t disrupt the exciting urban renewal of Parramatta and its surroundings.”
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Renting out a property can be very competitive, so you want to make sure you attract the right type of tenants.
BY PAUL WILSON
Though marketing your property may fall under the responsibility of your property manager, you still need to communicate your expectations when it comes to getting the right tenants.
Doing so will help empower your property manager – they may be great at the admin behind managing your property but might not have the flair for marketing.
Whether you have a property manager or not, you need to be proactive – landlords need to do everything they can to attract enquiries from the right type of tenants.
Here are our top tips to attract the best tenants…
The property description
When it comes to the property description, you need to find the balance between too much and too little information.
Not enough information may frustrate prospective tenants and look like you have something to hide. You need to communicate the features and benefits of the property, and really sell the sizzle.
Put yourself in the tenant’s place and think about what you would want from a home, because you are selling it as a home, not temporary accommodation. Tenants are looking for comfort, convenience and stability.
Noteworthy features include things like air conditioning, ceiling fans, recent renovations, pet-friendly, a dishwasher, heating, a pool, car accommodation and storage.
Some other key benefits are locality (distance to schools, shopping, transport, etc.), a fast broadband area, and easy access to major highways or central business districts.
When writing your description, be clear and concise, highlight things that are important to tenants and play up the benefits they’ll receive by renting your property.
Visuals
Your photos should complement and enhance your description. They’re the first thing the prospective tenant will look at and are what will draw them to your listing.
Be sure to clearly depict the features and benefits you’ve listed in your description.
People generally spend a lot of time in the kitchen and bathroom, so it’s a good idea to include photos of these areas – particularly if they’re large or recently renovated.
Presentation and inspections
If you’ve successfully attracted interest with your listing, the final part of the marketing process is the inspection itself.
At the inspection, good presentation is an absolute must and is the most influential factor for tenants in making their decision.
Good presentation will make for a good inspection, but there needs to be congruency between the description, the photos on your listing and what tenants see when they arrive.
Of course, your property needs to be spotless inside and out, but you should also think about the small cosmetic enhancements you can make.
If you have the luxury of the property being empty prior to inspection, you can do a bit more to ensure it’s as presentable as possible. A fresh coat of paint will go a long way to making a place look new and clean, and a neat garden and mown lawn are essential.
Also, make sure you fix anything that’s broken as tenants will be on the lookout for things like this.
It can be a little trickier if your property is currently tenanted, so it’s a good idea to get the co-operation of the tenants. Give them notice as early as possible of any maintenance appointments and upcoming inspections.
In essence, you need to make your property as attractive as possible – both physically and when representing it in your listing.
A little effort will go a long way in attracting the right type of tenants and will make your job as landlord much easier in the long-term.
The amount your property attracts in rental income, as well as its presentation, reflects the value of your property. Following the above tips will not only assist in securing good long-term tenants but will also underpin the overall value of your property as well.
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Market movement as two capital cities shift in favour of buyers
Posted on Monday, December 14 2015 at 11:10 AM
Brisbane and Darwin have shifted from balanced markets in favour of buyers, while Sydney and Melbourne remain favourable for sellers, according to the latest Commonwealth Bank CoreLogic RP Data Home Buyers Index.
The October quarter (August to October) Home Buyers Index – which provides an
indication of how well market conditions are suited to buyers or sellers –
found that while the national property market continues to be balanced, there
was a slight shift in favour of buyers.
At a state-level, the Queensland, Western Australian,
Tasmania and Northern Territory property markets remain in favour of buyers;
Victoria and the Australian Capital Territory favour sellers; while New South
Wales and South Australia remain balanced.
Brisbane and Darwin recorded the most significant
movements quarter-on-quarter, moving from balanced markets to ones that favour
buyers; Adelaide has shifted in favour of sellers after previously being a
balanced market. Sydney, Melbourne and Canberra remain sellers’ markets.
Dan Huggins, executive general manager home buying,
Commonwealth Bank, says: “While the national property market remains balanced,
Brisbane, Darwin and Adelaide have experienced the most notable shifts.
Brisbane and Darwin have moved in favour of buyers, while Adelaide’s moved in
favour of sellers.”
The top five buyers’ markets in Australia are:
1. Northern, SA
2. Wide Bay-Burnett, Qld
3. Central West, Qld
4. Far West, NSW
5. Pilbara, WA.
The top five sellers’ markets in Australia are:
1. Sydney, NSW
2. Melbourne, VIC
3. Adelaide, SA
4. Canberra, ACT
5. Central Highlands, VIC.
“CommBank’s Home
Buyers Index shows there are opportunities for buyers and sellers across
Australia,” Huggins says. “Prospective buyers should ensure they do their
research and consult a home lending specialist, so they can make an informed
decision about where to buy.”
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Business confidence influencing property markets
Business confidence influencing property markets
Posted on Monday, December 07 2015 at 2:58 PM
Current business and consumer confidence will continue to have a positive effect on Australian property into 2016, according to Property Outlook, the 2016 forecast report by Colliers International.
“We’ve experienced a sustained increase in business confidence over the
past 12 months,” CEO Australia and New Zealand at Colliers International John
Kenny says. “This confidence is having a positive impact across the property
sector, and this optimism is starting to flow through to several of our
occupier markets, as businesses become more confident in leasing office space.”
The Sydney CBD office market has experienced improving conditions since
early 2015, with a significant decline in vacancy over the year. That run’s
expected to continue to spread to other markets with Melbourne CBD office,
Sydney industrial and national neighbourhood and large format centres likely to
experience particularly strong demand conditions in the year ahead.
Despite this return of occupiers across the country, there’ll still be
pockets where this doesn’t lead to rental growth. In some markets, elevated
levels of supply are offsetting the strong growth in tenant demand. Similarly,
those locations affected by parts of the economy experiencing a slowdown, such
as those markets dependent on the mining sector, will be the under-performers
in 2016.
Consumer confidence levels, which have remained elevated for some time,
are another contributing factor in the overall strong performance of the
property sector.
“The strong residential housing market, increasing consumer confidence
and the lower Australian dollar are all factors that have contributed to the
current state of our economy,” national director of research Nerida Conisbee
says. “Right now, Australian interest
rates remain stable at their historic low of 2 per cent. Nevertheless, the
Reserve Bank continues to suggest that it’s not averse to cutting rates and is
waiting on key economic releases post-Christmas. For now, although GDP growth
remains below average, business surveys suggest that the services sector will
continue to improve, which will support the Victorian and New South Wales
economies in particular.
“All of these factors continue to make Australia a very attractive destination
for offshore capital, and this flood of both local and offshore activity will
continue to hold the property sector in good stead for 2016.”
Investment in Australian commercial property in 2015 is set to reach $35
billion, of which domestic purchasers account for around half. Australian
investors are now increasingly moving offshore, spending approximately $5
billion overseas in 2015. That’s more than double the 2014 level but
significantly lower than the almost $28 billion in 2007, when Australian
investors were the third highest offshore investors in the world.
“Very few Australian groups are entering international markets at this
stage, with around 90 per cent of this year’s offshore acquisition activity
made by two groups – Australian Super and Lend Lease,” Conisbee says.
According to the report, next year this growth in Australian groups
investing offshore will continue, although the types of investors in the market
will be different from the previous cycle. In 2007, the most dominant purchasers
were Australian institutions. In the current cycle, these institutions are
increasingly being funded by offshore groups, looking to partner with them
because of their expertise in Australian property. The dominant groups going
offshore will continue to be Australian superannuation funds as they seek to
diversify their investment into direct property. Finding the scale necessary in
Australia is increasingly difficult and offshore markets provide a significant
pool in which to invest.
At a regional level, the focus remains firmly on China and the continued
effect it has on all aspects of property. From the significant capital flows
that are investing in property across the region to the Chinese banks that are
starting to make their mark on occupier markets and the flow of tourists
increasingly dominating tourist spending and hotel usage. India is also
considered to be a major player next year but not so much from the outflow of
capital but rather the gradual opening of that country to investment and the opportunities
for regional investors that will create.
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