C21 Market Pulse | August 2021 | Australia

A U G U S T

M A R K E T

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P U L S E

C21

PUBLISHER Century 21 Australia Pty Ltd

CONTRIBUTORS Chris Gray Tim Lawless Connectnow Home Beautiful Terri Scheer Mobilia Group

EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600

ADVERTISING ENQUIRIES Century 21 Australia

WELCOME TO THE

AUGUST 2021 ISSUE OF

C21 MARKET PULSE

(02) 8295 0600

DISCLAIMER We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 Australia Pty Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability.

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C O N T E N T S A U G U S T

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HINDSIGHT 02

WALK IN WONDERS

What's your biggest regret?

How to plan the perfect walk in wardrobe.

Your Empire CEO, Chris Gray

Home Beautiful

PROPERTY MARKET UPDATE

05

ALL ABOUT STYLE

Growth cycle tapering as housing becomes less

Styling tips and tricks.

affordable.

Mobilia Group

CoreLogic Head of Research, Tim Lawless

WATER WORRIES

06

Waterproof your property.

Terri Scheer Insurance Distribution Channel Manager, Sarah Barton C21 MARKET PULSE

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HINDSIGHT

WHAT'S YOUR BIGGEST REGRET?

B Y C H R I S G R A Y, C E O, YO U R E M P I R E

Hindsight is an amazing thing, and most people would have acted differently if they had a chance to go back in time.

I’ve always been a contrarian

• Was about to exchange on a

That is 10 years ago but fees like

investor and in my 10+ years

property in San Remo, central coast

yesterday! Now the property is

hosting on Sky News Business,

NSW, sent contract to a solicitor

worth more than double. I’m not

I’ve often suggested to the

who advised a 3x3 deck at the rear

talking because of the massive

viewers that a good time to invest

was illegal. Pulled the pin thinking

current property boom but also

was in the middle of the Global

it was a big issue when in reality it

the most you get in TD is 0.72%

Financial Crisis, the banking royal

could’ve been a few hundred $$ to

whereas even with downturn

commission, the credit crunch

easily fix. That property went from

property is returning better than

or any other down turn. I’ve also

$270k to now worth over $800k.

that.

suggested that it’s still worth

Lesson here is take advice and you

investing in the boom times too,

make the decision.

as long as they’re buying a quality property at an unemotional valuation price as opposed to an emotional auction bid.

another. Could have held both but

• Now that I think about it, my

bridging loans were sky high in

biggest regret is lending $900,000

early 2000.

to a developer for mezzanine finance to develop an apartment

This week I thought it would be

block in Leichhardt Sydney, at 30%

a good idea to gather property

interest. The development went

owners’ biggest regrets so that they

pear-shaped, and I only managed to

and others could learn from them.

recover $150,000, even though the

So, I emailed over 10,000 people

loan was guaranteed. The developer

and these are some of the replies:

just sent the company into

• My biggest regret was not buying a house+boat+Pajero package in

• Selling our first home to build

voluntary liquidation and continued trading through other companies.

• In 1989 I built a luxury home in Mentone a suburb of Melbourne.

500 sq metre build on 1800 square metres of land. Valued at a million dollars loan at the time with a loan of $500k interest rates went to 18% default rate 23%, in the recession we had to have according to Keating, couldn't afford the loan, sold in the recession for $500k.

Woy Woy around 2000, when it

• My biggest regret is not buying

Next door, smaller land had 10

was offered for $250,000 for a

more when I had opportunities. One

flats on it, they were occupied all

waterfront property, with a private

in particular – an agent knew I was

through the recession and now

jetty, a new boat, a new Mitsubishi

interested in a property going to

worth $450k each. Hindsight is a

Pajero. I've been beating myself

auction on a Tuesday – he “flicked”

wonderful thing.

up for listening to my now ex, ever

it on the Friday before at a lower

since...

price than I was prepared to pay.

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• In 2008 I had some inheritance, so I decided to invest. After doing

much research and listening to certain ‘experts’ as well as my own research I bought several investment properties over the space of 4 years. One in Jacana Vic, Springfield Lakes QLD, North Haven SA, Seaford Meadows SA,

10 years’ time and have regrets: 1) Buy when (i) you can afford to buy and (ii) have enough cash to hold on for the short term 2) Buy in the best (blue chip) location you can afford to, even if it

Rockingham WA, Muswellbrook

means buying a smaller property

NSW and Bowen QLD and

3) Buy with a focus on a 10, 20 or

Toowoomba QLD. 12 years later my entire portfolio has grown by 4% some of the properties like Bowen and Muswellbrook at one point declined by as much as 30% and even now are not the same price I bought them for 10 years ago.

even 30-year time frame, rather than speculating on whether you’re going to make a profit in the next year or two 4) Fail fast and learn from your own and others mistakes.

So, after much headache and over

You’re never going to have the

350K out of pocket to support the

perfect knowledge and even after

portfolio over the ten years I am

almost 30 years of investing, I still

selling the lot. How could I have got

learn new things.

it so wrong if I had bought just one property in Sydney, I would be a millionaire by now.

• My biggest regret was not buying

Action takers are the ones that get the best results and the most common theme in all the results was that “I wish I had bought more”

ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor professionals – searching, negotiating, renovating and managing

in 2020 because of the uncertainty

property on their behalf. Chris has spent over

around COVID...

10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where

There are definitely some common themes there!

he’s interviewed various heads of property

Here’s a few of my thoughts to

figures. Chris is a qualified accountant,

ensure that you don't look back in

buyers’ agent and mortgage broker. For more

research companies and major industry

information, visit www.yourempire.com.au and follow Chris on

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Facebook: @ChrisGraySydney CENTURY 21

CELEBRATING 50 YEARS

P R O P E R T Y M A R K E T U P DAT E

GROWTH CYCLE TAPERING AS HOUSING BECOMES LESS AFFORDABLE

BY T I M L AW L E S S , H E A D O F R E S E A R C H , CO R E LO G I C

Australian housing values increased a further 1.6% in July, according to CoreLogic’s national home value index. The latest rise takes housing values 14.1% higher over the first seven months of the year and 16.1% higher over the past twelve months.

CoreLogic's research director, Tim Lawless, described the market as strong, but losing steam. “The 16.1% lift in national housing values over the past year is the fastest pace of annual growth since February 2004, however the monthly growth rate has been trending lower since

support related to housing) has

in the slowdown here, along with

expired. It is however, encouraging

the negative impact on consumer

to see additional measures being

sentiment as the city moves

rolled out for households and

through an extended lockdown

businesses as the latest COVID

period.”

outbreak worsens.

Although the pace of growth has

“On the flip side, demand is being

slowed, housing values continue

stocked by record low mortgage

to rise at a rate that is well above

rates and the prospect that

average across most areas of the

interest rates will remain low for an

country.

extended period of time. Dwelling sales are tracking approximately 40% above the five-year average while active listings remain about -26% below the five-year average.

The mismatch between demand and advertised supply remains a key factor placing upwards pressure on housing prices,” Mr Lawless said.

The previously stronger performance across regional markets relative to the capital cities has normalised through 2021. After the combined regional areas of Australia recorded stronger housing market conditions through the second half of 2020, the first seven months of 2021 shows an almost

March this year when the national

The pace of dwelling price

equal rate of growth in dwelling

index rose 2.8%.”

appreciation has slowed across each

values across the combined

of the capital cities. Sydney has

regional and capital markets

recorded the sharpest reduction,

with values up 14.5% and 14.0%

with the monthly capital gain falling

respectively.

Mr Lawless attributes the lower rate of growth in housing values to several factors. “With dwelling values rising more in a month than incomes are rising in a year, housing is moving out of reach for many members of the community. Along with declining home affordability, much of the earlier COVID related fiscal support (particularly fiscal

from 3.7% in March to 2.0% in July.

According to Mr Lawless, “Sydney is the most expensive capital city by some margin and it has also been the city where values have risen the most over the first seven months of the year. Worsening affordability is likely a key contributing factor

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Click here to read the full article

WAT E R WO R R I E S

WATERPROOF YOUR PROPERTY Water damage is one of the biggest risks to a landlord’s rental property and can be costly to mop up.

Water dripping through the ceiling, unexplained dampness or a leaking hot water system can result in a water damage claim. If water damage isn’t identified early, it can impact an insurance claim if it’s found to be a long-term leak.

Prevention is better than cure when

BY SARAH BARTON, INSURANCE DISTRIBUTION CHANNEL MANAGER, TERRI SCHEER

to regularly clean the gutters at their

including the two most recent

tenant’s property.

routine inspections which occurred

MONITOR WET SPACES

prior to the damage, photos of the

Leaking sinks and basins can often

and a tradesman’s causation report

lead to water damaged cabinetry.

entered the property.

property inspections, consider

Always read the PDS in your policy

checking inside cupboards in wet areas like bathrooms and kitchens for any signs of dampness. For example, dampness can cause timber in drawers and cupboards to swell and warp if not removed.

BRING IN THE PROFESSIONALS

a number of ways landlords can

Organising a certified plumber

damage and identify any waterrelated issues.

CHECK YOUR WATER BILLS Landlords should closely review their quarterly water bills for discrepancies. Unexpected increases in water usage may signal a leaking

which determines how the water

When undertaking regular routine

it comes to water damage. There’s protect their property from water

damage, itemised quotes or invoices

to inspect your property can be worthwhile expense. Often, they’ll

to ensure you are adequately insured.

For further information, visit www.terrischeer.com.au or call 1800 804 016.

ABOUT THE CONTRIBUTOR Terri Scheer Insurance Pty Ltd ABN 76 070 874 798 (Terri Scheer) provides insurance cover for landlords, helping to protect them

be able to find water-related issues

against the risks associated with owning a

that may not be easily identifiable.

rental property. These include malicious

Plumbers have professional equipment to measure the flow

damage by tenants, accidental damage, landlord’s legal liability and loss of rental income. Terri Scheer acts on behalf of AAI

rates of waste water pipes to check

Limited ABN 48 005 297 807 AFSL 230859

whether there’s any out-of-sight

trading as ‘Vero Insurance’, the insurer which

blockages.

issues the insurance cover. Terri Scheer has

urgent action to address it.

LANDLORD INSURANCE

financial situation or needs. If you are

CLEAR GUTTERS

Landlords who water-proof their

pipe underground and may require

Clearing gutters should be part of every property’s maintenance routine. When gutters are blocked with leaves and debris, rainwater has nowhere else to go except to overflow or wash back through the eaves and into the home’s wall cavities.

Landlords may engage a professional

not taken into account the reader’s objectives, interested in any of Terri Scheer’s insurance products, the relevant Product Disclosure

properties can help prevent

Statement should be considered first. It can

potential damage but sometimes

be viewed online at www.terrischeer.com.au

the unforeseen occurs. They should protect themselves against these potential risks. Landlord insurance can provide reassurance that they won’t be left out of pocket if their property is damaged.

or obtained by calling 1800 804 016. Based in Adelaide, Terri Scheer services all states, territories and capital cities.

DISCLAIMER The information contained in this article is intended to be of a general nature only. Terri Scheer does not

If a claim is required, landlords will need to compile documents

accept any legal responsibility for any loss incurred as a result of reliance upon it.

Insurance issued by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you.

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Contact Terri Scheer on 1800 804 016 or visit our CENTURY 21

website at www.terrischeer.com.au for a copy.

WA L K I N WO N D E R S

HOW TO PLAN THE PERFECT WALK IN WARDROBE If you've spent years jamming scrunched-up t-shirts into tiny corners and hours digging through dishevelled racks for something to wear, having a walk-in wardrobe will change your life.

A designated space to organise your clothing and accessories makes you more efficient, beautifully organised and allows you to look after your clothes

BY HOME BEAUTIFUL

to have its place," says Matt. "If

With a sliding door style, you also

your walk-in is to accommodate

have the option of using mirrored

two people, you'll want to start by

doors to reflect light, which can

designing two separate sections, and

really brighten up a small, pokey

assess how much full-length and

bedroom."

half-length hanging space each will need for dresses, coats and pants; then work in dedicated shelves for shoes, and spaces for other items like bags and hats."

"Consider extra overhead lights, internal lights, and for an extra special touch, use LED strip lighting to illuminate the underside of your beautiful wardrobe," said Matt.

"Pull-out hanging racks are great for scarves and ties while drawers and wire baskets keep folded items neat and allow easy access," said Matt

Must have features for designing your ultimate wardrobe:

Rushmore.

1. GET SKY-HIGH WITH YOUR STORAGE

customising your entire wardrobe

2. KEEP IT SLEEK BY CONCEALING

"A well-designed walk-in wardrobe

using modular components will

"For the best impression, consider

better. Even where there is no space for a luxurious walk-in wardrobe,

ensure no space is wasted. Using modular flat packs that you can assemble by yourself, you'll be amazed at how much you can fit in with careful planning and design.

We spoke to Kinsman Wardrobes Senior Designer Matt Rushmore to learn tricks of the trade to know where to start and how to move forward from there.

1. DESIGN FOR YOUR STORAGE NEEDS "A walk-in wardrobe can certainly achieve this with flexibility for differing layouts, compartment heights and various storage accessories, allowing everything

sliding doors to conceal everything in your walk-in wardrobe, creating a sleek, streamlined look for the bedroom," says Matt. "No matter how neat you are, you'll appreciate having door panels to hide parts of your wardrobe which you don't really want on show, such as internal laundry hampers."

3. LIGHT YOUR WAY TO ORGANISED LIVING "Lighting is a key consideration when planning any walk-in wardrobe, as this layout tends to be closed-in by design and will block out some of the main lighting in the room, which becomes most apparent at night.

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always puts storage first," says Matt.

"So for your ultimate walk-in, make sure it maximizes storage space with the height extended right up to the ceiling. The top shelf may be tricky to reach without a step ladder, but you'll love having a space to store items that you don't need access to on a day-to-day basis."

2. UP THE LUXE FACTOR WITH YOUR FINISHES "Another exciting feature of a modern walk-in wardrobe is the choice of external and internal finishes, which can successfully match the other elements of your home's style. For example, Kinsman Wardrobes offers an external finish called Beton which looks like

textured concrete - a popular finish used within modern industrial-style kitchens and bathrooms."

"For interiors, the fabric-like Greige Linen finish is a stunning new choice which can match back with bedding or upholstered furniture, making your wardrobe feel luxe and designled," suggests Matt. "Similarly, wardrobe handles with various finishes from brushed gold to matt black can be selected to match your existing interior design elements."

3. CREATE THE ULTIMATE ‘GLAM SPACE’ EXPERIENCE "The ultimate walk-in robe will always feature a full-length mirror within its layout, so you can try on various outfits to your heart's content," says Matt. "Make sure there's sufficient flattering lighting above the space – with Kinsman Wardrobes' tech accessories you can control the lighting via your phone."

"You can even use the cabinetry as speakers for music to get you in the right mood when getting glam," said Matt.

Click here to read the full article

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ALL ABOUT STYLE

STYLING TIPS & TRICKS

BY MOBILIA GROUP There are hundreds of decisions that go into styling a home - curious to know if you're making the right choices?

Our top stylists have teamed up to bring you their top tips when styling your property.

Here are our top 4 interior design do's and don’ts to help you avoid costly decisions:

3. MATCHING FURNITURE Whilst coordinating furniture and accessories will create cohesiveness, it can also leave spaces looking dull and lacking personality.

Adding splashes of colour and experimenting with different textures is a great way to break up the room and bring it to life.

4. ARTWORK The right artwork can liven up any

1. SCALE & PROPORTION

space, alternatively if the room does

ABOUT THE CONTRIBUTOR

Choosing the right size furniture for

not have any windows choose a bright print or a mirror is a great way

Mobilia Group was established in 2010,

the room size is key.

Make sure all rooms are measured correctly to avoid overcrowding the space.

to create reflection.

Mobilia offers clients a range of services, including Furniture Hire, Property Styling,

Always consider the room size and wall space available to avoid hanging an oversized or undersized artwork.

Incorrect furniture size and

long term Rental Packages as well as Turnkey packages.

With its fleet of trucks and their own warehouse and furniture, the Mobilia Team provides flexible and competitive packages,

shape can lead to a room looking

Remember providing that essential

in both Premium & Royal Series ranges.

unbalanced and result in not

first impression online, in print or

The Property Styling Division, with a

maximising the space you have.

at inspection, staging and styling

dedicated team of experienced and

shows each property to its greatest

passionate Stylists, offers a range of styles

2. WRONG RUG SIZE Selecting a rug that is the right

advantage, and creates a desirable lifestyle look for every interior.

tailored to suit contemporary and character homes. Whether to sell or to live in, a Mobilia Stylist can create a stylish, inspired interior

size for the room can make all the

By highlighting a property’s best

for your property.

difference.

features, property styling attracts

In 2018, Mobilia Group launched their

A small rug will leave the room feeling empty without character, whilst an oversized rug will

the largest target market to assist in achieving the maximum price as quickly as possible

Projects Division which provides a ‘one stop’ shop for Selling Agents and vendors including a range of services. From renovations, to builds, our experienced team can assist across a vast range of repair and

overcrowd the space.

maintenance services.

For more information visit: mobiliagroup.com.au or call (02) 9553 1188 Images supplied by Mobilia Group.

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Styling Packages Only $1750 Designed exclusively for Century 21 clients, you can secure your styling package which includes: Staging of up to 4 bedrooms, 1 living area, 1 dining area, 1 kitchen, 1 outdoor set and up to 3 bathrooms with accessories and artworks.

Call Deema 0450 493 166 www.mobiliagroup.com.au

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