2010
spring Make a fresh start with
Sydney Property Market Wrap
Closing the deal on your house
Feng shui & Real estate sydney in profile
10 tips to put some spring into your home first impressions really do count when selling A home
before you sell, do your homework
Welcome to Spring Spring is typically the busiest time on the real estate calendar. We understand that selling or buying a property is one of the biggest financial decisions you’ll ever make. As Australia’s number one property site we believe that knowing your market can give you a competitive edge. If you are selling, take advantage of the millions of house hunters that search on realestate.com.au each month. Selecting the right agent is also critical to a successful sale, so ensure you visit the Find an Agent section of our site. If you are buying, keep track of new properties as they come onto the market by signing up to realestate.com.au’s email alerts. Know your market – get the latest suburb profile in your area featuring recent sales, median house prices and supply and demand data.
Keep up-to-date on the latest real estate news with realestate.com.au’s fortnightly e-newsletter. Go to the myrealestate section on realestate.com.au to sign up today.
On behalf of the team at realestate.com.au, I hope you enjoy this Spring magazine to give you a taste of what our site has to offer. Greg Ellis CEO, realestate.com.au
CONTENTs 03 Sydney in profile
04 First impressions really do count when selling a home 05 Feng shui & real estate 06 Sydney property market wrap 08 B efore you sell, do your homework 09 Closing the deal on your house 10 10 tips to put some spring into your home
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sydney in profile Since the start of 2009, the Sydney residential property market has staged an impressive turnaround. Between the end of the ‘property boom’ way back in 2003 and the emergence from the GFC in late 2008, the Sydney market has been a weak performer. Home values during this period were mostly going backwards or were at best, flat. While the Sydney market languished between 2003 and 2008, most other capital city markets saw ongoing value gains. The result is that the value differential between Sydney and other large capital cities has become significantly narrower. Five years ago Sydney prices were 42% higher than in Melbourne and 39% higher for Brisbane. By May 2010, the price gap had narrowed to just 8% for Melbourne and 16% for Brisbane.
property market overview may 2010 Sydney
National
Median price, houses:
$602,250
$500,000
Median price, units:
$447,000
$419,000
Median price, all dwellings:
$517,250
$468,000
Capital gains, houses (12 months):
11.4%
12.2%
Capital gains, units (12 months):
12.5%
11.6%
Capital gains, all dwellings (12 months):
11.3%
12.1%
Average time on market, houses:
28 days
35 days
Average time on market, units:
25 days
32 days
Average vendor discount, houses:
5.4%
5.2%
Average vendor discount, units:
4.8%
6.5%
Average weekly rent, houses:
$514/wk (up 0.7% year on year)
$429/wk
Average weekly rent, units:
$487/wk (up 2% year on year)
$420/wk
Average gross rental yields, houses:
4.1%
4.0%
Average gross rental yields, units:
5.1%
4.8%
See page 6-7 for more detailed information.
Average vendor discount is the difference between the listing price (as quoted on real estate portals and newspapers) and the selling price, then averaged by geographic areas. All claims referred to on this page are sourced from RP Data May 2010, unless expressed otherwise.
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First impressions really do count when selling a home Angela Esnouf, President of the Australasian Association of Professional Organisers A recent survey by realestate.com.au of users of our “buy” section revealed that over half (56%) of these potential property buyers were turned off by a house filled with clutter. So if you are gearing up for the spring selling season, here are some handy tips… How to de-clutter your home: Ask for advice. Friends can’t be brutally honest, but your agent can. • Clutter likes to hide in corners, on shelves and under beds. Hunt it down. • Decide what is moving with you: recycle, throw out, or donate the rest. The Salvation Army has many donation depots around the country and your unwanted goods will help someone in need. • Get a jump-start on packing. Anything personal such as trinkets and photos should be packed first. • Whittle down your book collection. An overflowing bookshelf is a turn-off. •
Create space in the kitchen by clearing surfaces. Let the buyer see your counter tops, walls and even the fridge door. • Create space in cupboards too. Keep only what you need for now. Buyers want to know their stuff will fit. • Get the whole family on board. Children’s toys and teenage posters have no place in your selling plan. Cull ruthlessly. • Store the boxes you’ve packed somewhere else until that ‘Sold’ sign goes up. • Hire a professional organiser to help get the job done. •
Visit www.aapo.org.au to find a professional organiser in your city.
Got items too good to throw away? Donate them today at your local Salvos Stores! Visit salvosstores.com.au or call 13 SALVOS to find your nearest store.
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Feng Shui and Real Estate Feng Shui means ‘Wind and Water’. It is the Chinese art focusing on the flow of Qi (life’s energy) and a way of understanding how it moves in our surroundings and how our buildings, their interiors and our environment affect us.
Elizabeth Wiggins Real Estate Sales Agent and Feng Shui Expert. Qi (chee) is in everything. It connects people with their surroundings and is in a constant state of change. When we use Feng Shui we work to enhance the Sheng (good) Qi and deflect or neutralise the Sha (negative) Qi. Applying Feng Shui principles when selling your home could result in great financial gain. Often a home fails to reach the seller’s desired price because of small repairs unattended to or unattractive presentation. Feng Shui remedies, such as these outlined below, can bring a house alive and make it more inviting to prospective buyers. The entrance is arguably the most important area to consider when selling a home, so ensure it is as attractive as possible by following some of these simple guidelines:
•
Place a fresh, clean welcome mat at the front door.
•
Plants can lift the energy of a space and are great placed on either side of the front door.
•
Ensure the path to the main entry is clean and well lit. Cut back any overhead branches. Opening up the space really helps to get the energy flowing from outside into the home.
•
Clean your windows – this signifies a clear vision.
•
Place a vase of fresh flowers in the entry to greet prospective buyers. They bring Sheng Qi (positive energy) into the space.
•
A metal wind chime in the front garden will help harmonise any challenging energy.
•
Ensure all water features are clean and flow well; stagnant water is not good Feng Shui.
•
Clean your stove and oven thoroughly. You’d be amazed at how many people open the stove when inspecting a house.
Getting the energy right in a home can have a subtle yet powerful impact on the overall impression and ultimately on the final sale price.
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Sydney Property Property News You Should Know Understanding how the property market is performing is critical when you’re thinking of buying a property – whether it’s your own home or an investment property. Here’s an in-depth look at what’s been going on recently in the Sydney and wider New South Wales property market.
Sydney House & Unit Values The beginning of 2009 saw the Sydney housing market turn a corner. Between January 2009 and May 2010 Sydney home values (houses and units combined) have surged by 17.8%, which is the highest rate of growth since September 2003. The median price of a Sydney house is now $602,250 (20% higher than the national average) and the median Sydney unit price is now $447,000 (6.6% higher than the national average).
For median house/ unit price information on your suburb, visit realestate.com.au’s ‘Suburb Profiles’.
Source: rpdata.com, RP Data – Rismark
australia’s biggest growth centre Despite the slowdown, the Sydney residential market is still showing some positive drivers. Population growth into New South Wales is once again the highest of any state or territory: more residents are deciding to stay in New South Wales rather than leave for other states and overseas migrants continue to choose Sydney as the most popular migration destination.
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Sydney’s most searched suburbs on realestate.com.au 1
castle hill
2
baulkham hills
3
mosman
4
sydney
Over the 2009 calendar year, New South Wales accounted for 26.8% of the nation’s overall growth – higher than any other state and the largest share of population growth since 2002.
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hornsby
6
cronulla
7
parramatta
Homes are selling faster in Sydney Homes are still selling faster than the national average – just 28 days for houses and 25 days for units, which suggests that demand continues to outweigh supply.
8
blacktown
9
chatswood
10
dee why
Source: Omniture Discover. May 2010 to July 2010. Most searched Sydney suburbs within ‘buy’.
Market Wrap auction clearance rates Auction clearance rates in Sydney are also reflecting a slowdown in market conditions. Auction clearances have been below 70% since the start of May, highlighting the lower level of market sentiment. Since June Sydney’s week- to- week clearance rates have stabilised between 55% and 60% – a far cry from last year when auction clearance rates were consistently above 70%. For weekly ‘Auction Results’ by suburb, visit the ‘Experts’ area on realestate.com.au Value Gains Value gains in the Sydney housing market are now slowing in line with the national trend. In the months of April and May, value growth in Sydney more than halved, with month-to -month increases of just 0.4% compared with month-to -month gains averaging 1.0% since January 2009. The slower market conditions can be attributed to higher interest rates, falling housing finance volumes and volatile consumer confidence. Adding to this is the normal uncertainty surrounding a federal election that also provides a dampening effect on the market.
Source: rpdata.com, RP Data – Rismark
All claims referred to on these pages are sourced from RP Data May 2010, unless expressed otherwise.
Our ‘Suburb Profiles’ provides detailed information on your suburb including: • Median sales price • Supply (no. of advertised properties) and Demand (no. of people looking) data • Recent sales Visit realestate.com.au today to research your suburb.
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before you sell, do your homework When selling your property some of the key decisions you need to address are: •
Marketing Campaign tips The more buyers who see your property, the better your chances of selling at the right price in the least amount of time. So it’s important to take an active role in the development of the marketing campaign for your property. 1. Understand your online advertising options Advertising your property online is crucial with : •
(Nielsen Australian Property Search Report 2008)
Finding the right agent
•
Determining the value of your property
•
Selecting the right marketing campaign.
Finding an agent •
Talk to family and friends. It‘s worth asking family, friends and neighbours who’ve sold property recently about their experiences and recommendations.
•
Look out for properties with ‘Sold’ stickers. Taking note of the agent sign boards out the front of sold properties is a good indication of which agents are doing well in your local area.
Property valuation Getting the right valuation for your property will set the overall tone for your marketing campaign. •
Local real estate agents will be able to give you the most accurate property valuations.
•
Do your own homework as well; research property prices in your area before you engage an agent.
•
Check out the ‘Suburb Profiles’ on realestate.com.au that give you some useful property information such as Recent Sales, Median House/Unit price and Supply and Demand by suburb.
out of 10 people using the internet to search 9 for properties to buy
•
It’s estimated that 55% of enquiries for property are generated via advertising on the internet. What advertising generated the most property enquiries last year?
Source: Macquarie Relationship Banking, Real Estate Benchmarking Survey, Nov 2009
2. Visit agents to check their professionalism Ask to see examples of flyers and advertising they have produced for properties like yours. 3. Discuss advertising options When you meet with your shortlist of agents, ask them how they recommend advertising your property – this will impact on the number of potential buyers that see your property. 4. Track your campaign Ensure your agent keeps you updated throughout the sales process. If your property is on realestate.com.au ask your agent to register you to receive a weekly vendor’s report by email so that you can see how many times your property has been viewed.
realestate.com.au’s ‘Find an Agent’ section will help you find the right real estate agent to sell your home. Search by agency name or suburb, see a list of local agents, and view the properties each agent has for sale, rent or has recently sold.
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Closing the deal on your house There is a lot more to closing the deal on the sale of your home than just accepting an offer. We take a look at what else needs to be done. Geoffrey Lush is a freelance writer who specialises in the business and property sectors. He has contributed articles to numerous property investment magazines, online real estate portals and newspapers in Australia and New Zealand. Exchange contracts. If you are selling privately (i.e. not at an auction), your solicitor or conveyancer will prepare the contractual details. Your contract should specify the: •
Price
•
Settlement date (the date on which the full purchase price is paid and the purchaser takes possession of the property)
Provided all parties agree, there’s no reason why changes cannot be made. Acknowledge the ‘cooling-off’ period. The ‘cooling-off period’ refers to a period of time during which the purchaser may cancel the contract. The cooling-off period is not available for properties purchased at auction. This period commences immediately after the exchange of contracts and lasts for a defined amount of time that varies from state to state. In Western Australia there is no cooling-off period. Complete the conveyancing process.
•
hattels (movable possessions which may be C included in the sale)
•
Special conditions (you may have agreed with the purchaser to complete some work on the property prior to settlement date).
Even after you and the purchaser have exchanged contracts, the conveyancing process continues. The purchaser’s legal advisor will undoubtedly make thorough enquiries to the relevant authorities, for example, the local council and water authorities.
Your legal advisor is responsible for the contract and should ensure it contains nothing detrimental to the sale of your property. It is a good idea to confirm which chattels remain in the property.
In all states, paperwork for the Transfer of Land, Notice of Sale and Requisitions must also be prepared. At settlement date, all rates and taxes must be paid up to the point when your property is transferred to the purchaser.
The purchaser is entitled to a final inspection of the property prior to settlement date. If you’ve altered or made any adjustments to the property after the acceptance of the offer, the purchaser is entitled to request that the property be returned to its original condition.
Once the final contract is completed, it is sent to you for your signature. You should return this document to the purchaser when they take possession of the property.
Each party signs a copy of the contract of sale. The purchaser keeps the copy you have signed and you retain the copy they have signed. This process is referred to as the ‘exchange of contracts’.
Generally, settlement takes place some four to six weeks following the exchange of contracts.
Once all parties have signed a contract, it cannot be altered or changed. However, there may be unforeseen circumstances that require changes.
Settle the property.
On settlement day the balance of the purchase price is paid and the title deeds (legal documents stating property ownership) are handed over. When payment is confirmed, the keys are handed over to the purchaser.
This publication is necessarily brief and general in nature, and is not to be relied upon as professional advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.
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TV celebrity and interior designer Shaynna Blaze-Vaughan shares her top tips to get your house looking fabulous for the spring selling season. Paint This is the easiest and cheapest way to get a fresh and clean change to a room. Spring brings a whole new light into the home, and walls can look dirty very quickly. Adding a fresh coat of paint is cheap if you provide the labour, but don’t go bold or too dramatic as it will limit your market potential.
Fabric Patterns, texture and colour can add a breath of fresh air. Stunning fabrics can be made into cushions, throws, divider screens and wall hangings to give life to a dull colour scheme.
Wildberry Designs
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tips to put some spring into your home
Shaynna is also a presenter on Selling Houses Australia. Visit her website www.shaynnablaze.com or www.shaynnablaze/blogspot.com for more tips & ideas.
Flowers Fresh flowers not only add a visual feast but can bring a hint of fragrance as you walk by. Lighting Subtle and indirect lighting can give a whole new atmosphere to an interior scheme and it doesn’t just have to be for evenings. Dark corners of rooms can be brought to life with a simple lamp. You don’t have to always highlight large areas – look at subtle ways to introduce light, such as back lighting a statue or plant. An interesting lamp can double as a feature as well as lighting.
blankcanvas interiors
10 blankcanvas interiors
Clutter Spring cleaning always comes to mind this time of year, but never so more than when you are selling. Buyers have no emotional attachment to your collections – so if it is gathering dust or doesn’t add to your interior, pack it away or move it on permanently. Spring is the perfect time to make decisions on what is necessary and what is taking up valuable space.
Flooring Thread-bare carpets and ‘traffic patterns’ wearing into your flooring is a major red-alert to buyers and can seem more costly to fix than it really is. An update to your flooring might not be needed to the whole house; perhaps just the ‘high traffic’ areas. A dramatic rug can also add instant appeal and lift a room by adding colour and texture.
Maintenance We all have jobs we put off till tomorrow. Make a list of what needs to be done to get your home into perfect condition as it is the little details that sometimes get forgotten. Remember, buyers turn on all taps and open all doors, so make sure something this simple doesn’t turn into a major reason for a buyer not to purchase. Spend where needed The big budget areas, such as the bathroom or kitchen, need some careful planning. If the major appliances and structure are in good condition maybe all the area needs is a basic ‘freshen up’, such as re-tiling and new taps and accessories. Sometimes simple changes such as these might be enough to give a new lease of life and give added value rather than doing a full renovation.
furniture Receive 15% off your next purchase on already discount offer discounted items or your next styling hire when you bring this coupon into our Sydney store. Valid until 1 November 2010 at Sydney store only. Ph (02) 9310 1666
blankcanvas interiors
Artwork Move around your artwork – it is easy to get used to a certain look but just by moving around your artwork and pictures you can create a whole new feel, costing you nothing at all. Furniture If you aren’t inclined to move your artwork, look at how you can reposition your room layout. Take out most of the pieces in the room and start again, bringing back a major piece (like a sofa) and then some accessories like a rug or lamp and then slowly bring back the rest of the furniture. You might like the new feeling of space and put some pieces in another room.
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realestate.com.au offers a
lot more than just listings. we provide tools and information to help you find the right property and sell at the right time.
Property email alerts
Tell us what you’re looking for and we’ll send you property alerts when a matching property is added to the site. Simply register on myrealestate.
realestate.com.au on your Mobile View properties and check inspection times while you’re out and about.
Local Voices
Find out what people really think of their street and local area. Inspection /Auction Times
Plan your weekend viewing by saving your Open For Inspection and Auction schedules straight to your calendar.
Auction results reveal the market’s vital signs
Keep your finger on the pulse with weekly auction results for your suburb.
Suburb Profiles
Provides you with property data and trends including: • Median house/unit sales price • Supply (no. of advertised properties) and Demand (no. of people looking) data • Recent sales.
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AUGUST 2010