Edition 4, Feb 2017
NDEPENDENT PROPERTY NEWS Reporting on the Ashfield - Petersham property market
Property Values grew by $10,000/ month during 2016!
elcome to the first of our Property Market Reports for 2017. I trust the festive season was a good one for you, the headaches have gone and you’re now wide eyed and bushy tailed ready for a ripping 2017! I have recently been perusing the latest property market analysis by CoreLogic, one of Australia’s leading property market analysts. It makes fascinating reading, especially the point that Sydneysiders saw dwelling values increase by approximately $10,000 a month during the past year to create a significant boost in the wealth of home owners. Tim Lawless, head of Research for CoreLogic, makes the point that that over the past year, the median price dwelling values in Sydney rose by an average of 15.5%. Since the Global Financial Crisis, CoreLogic’s index shows that Sydney’s median price has risen by 97.5% since January 2009. Melbourne’s dwelling values increased by 83.5% over the same time frame. Mr Lawless said that increases in other capital city’s dwelling values rose by much less to highlight just how strong the Sydney and Melbourne housing market conditions have been over the past eight years. The comparison is resulting in a considerable number of home owners looking to leverage their new found equity by purchasing in popular tourism locations or in other capital cities to capitalise on the price differential. It will be interesting to see what 2017 has to offer. We will keep you posted each quarter. Tim Simpson Principal/Licensee Residential
Ashfield: 28 Hercules St phone 02 8753 2300 sales 02 8753 2333
What’s happening to our property market in 2017?
orecasts are well and truly mixed as to what is likely to happen to Sydney’s property market in 2017. In some ways this is a repeat of what occurred at the end of 2015 when there were numerous predictions of property values falling because of a glut in home unit development and prices becoming unaffordable. At the end of 2015 media forecasters were saying that Sydney would have a gross over-supply of property because of all the new apartments under construction. Well, in came the Chinese investors to snap up many of them, while further to that, the New South Wales economy picked up, leading us to where we are today: A forecast by the State Government that almost 185,000 new houses and apartments will be added to the Sydney property market by 2021. According to the somewhat ‘bullish’, NSW Planning Minister, Rob Stokes, we’re heading towards the biggest
housing construction boom in Sydney’s history because Sydney’s population is expected to grow by 2.1 million people in the next two decades. If he is correct, that population growth will easily mop up the supply. It is interesting to note that the sector in our state’s economy giving the greatest momentum at present is manufacturing. This is great news for employment and if confidence in the economy grows, who knows, we might see more gains in property values to come in the very near future.
What’s happening now? Mid-January saw a staggering 100% auction clearance rate. We thought the 8090% in December would rarely be topped but that is what’s happening. Market analyst CoreLogic believes that if interest rates are lowered by another 0.25% by mid-year, Sydney could easily see median price gains of up to 18%. Expectations of a slow- down in the value of units continues to be aired. The QBE forecasts have the pace of prices of units slowing down to a 6.8% increase by 2019 - hardly a poor scenario!.
Good news for small business owners We understand that a number of banks are changing their lending policies to make it easier for selfemployed people to borrow funds for purchasing property. Westpac, CBA and St George are among those that have relaxed lending policies for small and medium-sized enterprise Auctions
(SME) owners, lowering the requirement to present financial records as income verification from two years’ to one year. Furthermore, they no longer require tax returns. Westpac and CBA have increased the Loan to Value ratio for SME buyers to 90% from the previous 80% of the purchased property’s value.
Glowroar Pty Ltd ABN 53 056 002 950 Trading as Brough & Taylor
Petersham: 448 Parramatta Rd emails phone 02 9509 0300 sales 02 9509 2333 website:
firstname.lastname@example.org email@example.com www.broughandtaylor.com.au
Demand exceeds supply: A great time to be a seller!
emand for apartments in the Sydney CBD and inner west suburbs is continuing to exceed supply so that once again we have more buyers than properties available to meet demand. The strength of demand continues to make it a very good time to be a seller. Up to end of year, auction clearance rates were staggeringly high and prices particularly firm with the result many people followed the trend that we mentioned earlier last year of investors taking profits to either invest elsewhere, extend their homes, or buy where there is a substantial price differential. Other people have taken profits and bought elsewhere to either reduce debt or have money for other purposes. There is a certain amount of sense in this because as we have mentioned previously research by Knight Frank has revealed that
there are more than 26,000 apartments under construction and while Sydney’s growth will undoubtedly see them being taken up, this increase is likely to result in a slow-down in the pace of price growth
Cycle is incredible We have to say that in our many years of working in this region, we have not seen a property market cycle like this one. Cycles typically reach a high point, a large number of properties come onto the market leading to prices plateauing before adjusting downwards as the market takes stock of an over-supply. The market finally bottoms and then gradually climbs upwards to another peak. This process hasn’t happened in years, possibly because interest rates have been so attractive, possibly because of the number of overseas investors and the growth in the local economy and possibly
because the Sydney market has reached a point like London and New York where demand is constant. Whatever, the reason, it definitely remains a seller’s market.
Dampener? The one dampener on the horizon is the possibility of an interest rate increase. This could cause a market slow-down so if you’re interested in capitalising on the current buoyancy it could be better to act now rather than wait in the hope it will rise even further. If you’re interested in discovering what your property is worth in today’s market with a view to possibly selling it, please feel welcome to call us. We can give you an indication of price, what you could do to enhance your return and give an indication of who we think the likely buyer will be. We’ve been achieving remarkable prices as indicated in the adjoining story.
SOLD FOR A WHOPPING $821,000!
ur recent auction of a two bedroom, one bathroom unit in Alt Street, Ashfield was a huge success…. achieving an outstanding result of $821,000. Thanks to a strong marketing program we had by auction day issued 16 contracts. On auction day there were 14 registered buyers. The property attracted an opening bid of $650,000 which was followed by a frenetic bidding war of 30 additional bids culminating in an outstanding price and a very happy vendor. Anyone interested in selling should note that we have a number of cashed up prospective buyers, some being those who missed out on this property. They’re aware of the price this property achieved and are ready
to purchase– so if you’re interested in selling, now is an excellent time to contact us.
A tip for prospective sellers: It has to be said this 95.7sqm unit proved that quality renovations do reap profitable results. This unit was nicely presented, having been fully renovated and fitted with stainless steel kitchen appliances. It featured an ultra-modern bathroom, built-in wardrobes in the bedrooms, a laundry, a lock-up garage and quality blinds throughout. There is a strong demand for units of all categories – renovated and un-renovated, but there’s no doubt that something special does bring keen buyer competition.
Uncluttered living room to give a sense of space Well designed, well finished kitchen Presentation really does have an impact on property price outcomes and it certainly had a bearing on the fantastic result we achieved for this property. If you’re thinking of selling, we
have a unique brochure on presentation that can help you spend wisely – attending to what really matters. Call us and we’ll email you a copy.
Property For sale
2/120 Frederick Street, Ashfield $670,000
Inspection: By appointment call Gino Morvillo 0413 092 677
Nothing to Spend, Just Move In! Opportunity Knocks!
This attractive, spacious two bedroom strata title apartment is located within a small well-maintained security block of only six units. This apartment has it all: convenience, a quiet outlook and brand new renovations throughout. * Two generous bedrooms, main with built-in wardrobe * Separate eat-in kitchen with brand new stove and flooring * Generous internal laundry * New luxury bathroom * New light fittings, blinds, internal doors wall-to-wall carpets throughout * Two balconies Water Rates: * On title parking spot $174.26 pq approx. convenient lane-way access Strata Levies: * Security intercom $770.70 pq approx. Council Rates: * Size 104 sqm $296.80 pq approx.
Rental Market Report:
Vendor Testimonial 11/36 Alt Street Ashfield Vendor Testimonial 11/36 Alt Street Ashfield
From: Nick Forsythe (DHL AU) Sent: Monday, 23 January 2017 8:55 AM To: firstname.lastname@example.org; From: Nick Forsytheginom@brough.net.au (DHL AU) [mailto:Nick.Forsythe@dhl.com] From: Nick Sent: Forsythe (DHL AU) [mailto:Nick.Forsythe@dhl.com] Monday, 23 January 2017 8:55 AM Subject: Testimonial 11/36 Alt Street Ashfield
To: email@example.com; Sent: Monday, 23 January 2017 firstname.lastname@example.org 8:55 AM Hi Tim Subject: and Gino, Testimonial 11/36 Alt Street Ashfield To: email@example.com; firstname.lastname@example.org RE: Brough & Taylor Sale of Property Subject: Testimonial 11/36 Alt Street Ashfield Hi Tim and Gino,
I recently property RE: sold Brough a & Taylor Sale of with PropertyTim Simpson and Gino Morvillo from Brough & Taylor Real Estate. Hi Tim and Gino, I recently sold a property with Tim Simpson and Gino Morvillo from Brough & Taylor Real Estate.
From the beginning the process was very easy, and the team RE: Brough & Taylor Salethe ofprocess Property From the beginning was very easy, and the team at Brough were at Brough were very to any my prepared requests very responsive to anyresponsive of my requests to help get theof property for to help get the listing, property prepared forremaining listing,tenancy as well as well as dealing with any issues.as dealing with I recently sold a property withissues. Tim Simpson and Gino Morvillo from Brough any remaining tenancy Throughout the campaign when there was an open home, Tim and Gino were & Taylor Real Estate. punctual, and also ensured they waited around long enough for prospective buyers, not rushing off to the next open home. was an open home, Tim Throughout thejustcampaign when there Fromand the beginning the process was very easy, andatthey the team at Brough were Gino were also ensured In the end, wepunctual, got a price thatand exceeded our expectations auction,waited with a hot around very responsive towith any of of my requests to helpnot getjust the rushing propertyoff prepared long enough forplenty prospective buyers, to the for auction bidders. next open home. listing, as well as dealing with any remaining tenancy issues. I wouldn’t hesitate to recommend Tim and Gino for future sales. With their years of experience, it certainly added value to the
campaign. Throughout the campaign was an open home, Tim and Gino In the end, we got awhen price there that exceeded our expectations at were auction, with ensured a hot auction with plenty bidders. punctual, andRegards, also they waited aroundoflong enough for prospective Nick Forsythe buyers, not just rushing off to the next open home. I wouldn’t hesitate to recommend Tim and Gino for future With years experience, it certainly added value In thesales. end, we gottheir a price thatof exceeded our expectations at auction, with a hot to the auction withcampaign. plenty of bidders.
Regards, NicktoForsythe I wouldn’t hesitate recommend Tim and Gino for future sales. With their years of experience, it certainly added value to the campaign. Regards,
We’re bucking the trend!
espite there being many reports of rising rental property vacancies around Sydney, we can tell you that our office is not holding vacancies for long. We are definitely bucking the trend. In fact we urgently need houses and units to rent. Because of our central location and being well known for our fair but exacting approach to tenants, we’re constantly fielding enquiries. And as we’re heading into our busiest period for letting properties, we know the enquiry rate is going to exceed supply and that we will not have enough properties on our books to meet demand. As a consequence, may we stress that if you have been remotely concerned about the quality of management you have received from elsewhere, please contact us. If you have a rental property that needs good management to overcome a vacancy or simply be better managed, please contact us as we’re particularly keen to add more properties to our property management portfolio. Our property management team is second to none with an outstanding reputation for being hard working and for attending to enquiries promptly. We are more than happy to assess your property, give you advice as to what could be done to improve your returns, give you an indication of the rental level that we would expect to achieve and you can take it from there.
INTRODUCING A TEAM MEMBER:
Dean Foundas Property Manager
ean Foundas is an enthusiastic and dedicated member of our property management team. He enjoys assisting our clients to make the process of renting out a property a positive experience. On a day-to-day basis, Dean’s role involves ensuring all rent payments are up-to-date, obtaining quotes for repairs and maintenance, organising repairs to be carried out and ensuring they are
completed properly, liaising with owners and tenants, reviewing rents to ensure they are at market rate and all general property management duties. Dean is adept at problem solving. He is flexible and always happy to lend a hand. Dean enjoys the happy and co-operative team environment at Brough and Taylor. He says there’s never a dull moment, it’s always busy and challenging, but that’s
what makes it great. Dean is a well qualified licenced Real Estate Agent. In his spare time, Dean is a car enthusiast who enjoys working on his vehicle. If you’re interested in professional property management services, talk to Dean on 8753 2306. He welcomes your call.
Strata, Owner or Tenant? Who is responsible in
the event of things going wrong?
here does the responsibility begin and end for property owners of residential or commercial strata units? Whether it is from a repairs (and) or maintenance perspective, through to personal liability, the lines are often confusing to owners. A common claim scenario that we see is a burst pipe located within a wall. With water escaping, there is a repair to be dealt with, along with any resultant damage. The repair of the pipe sits with the strata up to the point of the wall being ready for paint. Property owners are responsible for the paint and any resultant damage to items they own such as carpets. Where the property is leased, the tenant must turn to their own insurance for damaged possessions.
Three parties, three policies In this situation, you have three parties involved and three separate insurance policies, with no overlap. A burst pipe scenario can become more complicated where the water originates in one unit but goes on to penetrate another unit, usually directly below. In this instance, assuming it is a sudden and unforeseen, the owner and (or) occupant of the unit below would be responsible for their own costs. In short, it is effectively treated as though the burst pipe occurred within their own
by Anthony Scott Managing Director, Watkins Taylor Stone
strata unit, not the unit above. The waters are murky, if you will pardon the pun, where negligence or maintenance issues come into play.
Negligence An accidental overflowing of a kitchen sink is an example of negligence. Deteriorating waterproof membranes in a bathroom is maintenance. Depending on the proximate cause, property owners themselves may be liable for damage to both their tenant’s contents and any other property subsequently damaged. This well and truly reinforces the importance of holding a landlord’s insurance policy that includes Public Liability, whilst keeping the property well maintained.
Liability Continuing with liability, nothing sharpens the focus like a slip and fall incident, for example where a tenant or visitor has fallen over within the property boundaries. A fall on common property, such as walkways and corridors, would usually see action brought against the strata. A fall within the strata lot could see action brought against the property owner. What about parking? Increasingly strata developments will see a car space on title in lieu of a garage. In this situation, if the third party falls
over within the designated car space, the property owner could be deemed liable. The strata and its insurance is unlikely to extend to the individual lot owner in this situation, putting the onus once again on property owners to have their own Landlord Insurance policy.
Insurance Where a property owner does not have the benefit of an insurance policy for their investment property, consider how they will defend claims brought against them, from legal costs through to possible court awarded compensation to a third party. Premiums for residential strata investment units start as low as $3.25 per week, whilst commercial strata investment premiums will vary depending on usage. Insurance is a small price to pay for peace of mind.