C21 Market Pulse | October 2020 | Australia

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PUBLISHER Century 21 Australia Pty Ltd

CONTRIBUTORS Chris Gray Tim Lawless Bradley Beer On The Move

EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600

ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600

WELCOME TO THE

OCTOBER 2020 ISSUE OF

C21 MARKET PULSE

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.

For more information on our Privacy Policy please refer to: www.century21.com.au/privacy

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BUILDING WEALTH

Why you should never wait for a budget to make

What you need to know about building an

your decision.

investment property.

Your Empire CEO, Chris Gray

BMT Tax Depreciation, Bradley Beer

PROPERTY MARKET UPDATE

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MOVE SMARTER

Six of the eight capital cities record a rise in home

Common moving mistakes.

values over September.

On The Move

Corelogic Head of Research, Tim Lawless

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FENCE-SITTING

WHY YOU SHOULD NEVER WAIT FOR A BUDGET TO MAKE YOUR DECISION Chris Gray began his property investing journey when he was 22 years old. With only $35,000, he spent the next nine years learning about investing firsthand, and applying that knowledge to his own portfolio now worth over $15m.

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

they know the true implications.

The same goes for events like elections. The majority of people sit on the fence, do very little and are comfortable doing nothing as all their family, friends and colleagues

sellers of property

Often these events don’t change the property market that much and so standing on the sidelines, doesn’t actually give buyers and sellers

try and time the market. When something like a budget comes along they often freeze and sit on the fence until everything

they miss out on an

"Often these events don't change the property market that much and so standing on the sidelines, doesn't actually give buyers and sellers any advantage.."

has been announced and then they may wait some more time to make sure

opportunity that they could turn to their advantage.

competition pushing up the prices at auction. In fact, most properties wouldn’t even go to auction with that much of a lack of demand.

price then gives them a significant upside when the fence sitters all jump off in their herd mentality and all hit the market together.

This budget has probably done very little to change our current property market.

Up to 10,000 more first home buyers will be able to get a loan to

Contrarians on

build a new home or buy a newly

the other hand,

built home with a deposit of at least

love events like

5 per cent and the purchase cap

elections and

will also be lifted from $750,000 to

budgets as the

$950,000. That’s good news for first

lack of activity by

home buyers but do you really want

the majority, gives them the chance to

have more choice over property that is available and it

C21 MARKET PULSE

better price as there’s a lack of

Buying a better property at a better

are doing nothing as well.

any advantage. If anything Many buyers and

allows them to negotiate a much

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a brand new home 30-40km from inner city surrounded by 1,000’s of others. Personally I would rather a second hand one with no incentives

much closer to the city where land is

However, if you are keen on getting

in a shorter supply.

into your next home or building a

The personal income tax cuts will make a few thousand dollars difference per year for the individual person. Now that might make a difference to the average Aussie but

property portfolio, getting a second job or doing a few hours of Uber driving each week would give you more money than waiting for a

ABOUT THE CONTRIBUTOR

budget bonus.

Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for

$50/wk won’t change anything for

So my tip as always is to never time

young professionals in the inner city.

the market. Buy when:

More government spending and

1) You have the deposit to buy

behalf. Chris has spent over 10 years as the

2) Can get a mortgage

Business channel, where he’s interviewed

business incentives to hire more people will reduce unemployment and give people more money to spend on housing, both from a renters and a buyers perspective and

time-poor people – searching, negotiating, renovating and managing property on their

3) Have enough cash buffer to give

host of ‘Your Property Empire’ on Sky News various heads of property research companies and major industry figures. Chris

you piece of mind for the next

is a qualified accountant, buyer’s agent and

year or two.

mortgage broker. For more information visit www.yourempire.com.au,

so that is a good thing.

www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.

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EXPANDING NETWORK

NEW C21 OFFICE OPENS IN BURWOOD NSW An experienced team of real estate professionals have opened an agency in Sydney’s inner west under the Century 21 brand.

Directors Eugene Ganke, Jada Vi, Betty Lu, and Ricky Kong are a team that are passionate about property.

Together they will operate the Burwood real estate business after having worked together in different roles across independent and franchise agencies.

“We are incredibly excited to be partnering with the bold and dynamic Century 21 brand whose vision and values really resonated with us,” said Mr Ganke who has over 10 years of industry experience.

“It’s great to have received so

Fellow Director Jada Vi offers six

Century 21 Chairman and Owner

years of real estate experience

Charles Tarbey is pleased to have

said each member of the team

this young team come together

brought a wealth of knowledge

under the C21 brand and is

and skills that complement each

confident of their success.

area of real estate.

“The passion and drive that these

“Our combined focus will be to

individuals have for real estate

ensure that the sale or management

is inspiring. By leveraging the

of our customers most valuable

strength of the C21 brand, training

assets are given the highest priority

and technology, I am sure they will

and utmost care.”

achieve their immediate goal of

The new team believes there is a gap in the local market for

The new office will benefit from

agents which they will aim to fill.

the continued partnership that

They will offer sales, property management and

“Our combined focus will be to ensure that the sale or management of our customers most valuable assets are given the highest priority and utmost care.”

our own agency. We look forward to growing with this global brand for many years to come and leveraging their processes and platforms to deliver a level of service and care that is unmatched”.

Mr Tarbey said.

Cantonese and Mandarin speaking

project marketing

much support to start

being the best agency in Burwood,”

services with an emphasis on delivering exceptional service.

Century 21 have with Bauer Media across the Home Beautiful website and magazine.

With the majority of that audience owning or paying off their own home, having ownership in sight or looking to invest, the initiative not only showcases C21 properties

The office

to consumers with an interest in

will be

property, it also generates strong

rounded out by Betty

buyer and seller leads for the network.

Lu who has

experience in real estate and running her own business, and rising star Ricky Kong who in his first year with a major franchise made the Top 100 agents list on GCI.

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The story New C21 offi ce opens in Burwood NSW, fi rst appeared on Elite Agent.

Article Link: https://eliteagent.com/new-c21-offi ceopens-in-burwood-nsw/

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

SIX OF THE EIGHT CAPITAL CITIES RECORD A RISE IN HOME VALUES OVER SEPTEMBER Lower home values in Melbourne and Sydney continue to weigh down the national housing market while the remaining capitals record a lift through September.

September marked a striking turn in housing market sentiment; consumer confidence increased, new listings rose, and six of the eight capital cities recorded a rise in home values over the month. However, falling values in Melbourne and Sydney, which make up approximately 40% of Australian’s housing stock by number and

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

0.4% rise in the combined regionals

while capital city values have fallen

index. Although the national index

by 2.6% over the same period. In

was down over the month, the 0.1%

September, every ‘rest of state’

decline was the smallest since

region, except Western Australia,

values started to reduce in May

recorded a lift in housing values.

this year.

Mr Lawless believes the resilience

According to CoreLogic's head of

in regional values can be attributed

research, Tim Lawless, Melbourne

to a number of factors. “From

remains the main drag on the

a cyclical perspective, regional

headline results. “By far the weakest

areas weren’t recording the same

result across the capital cities,

growth conditions pre-COVID,

Melbourne housing values were

so home values in these markets

down 0.9% in September. Since

are often more affordable, and

peaking in March, Melbourne

don’t have a high base to fall from.

values are down 5.5%. With restrictions starting to

“The rate of decline across Sydney's market has been consistently easing since July, and the remaining capital cities have all returned to some level of growth.”

55% by value, pushed the national reading into a fifth straight month of decline.

CoreLogic’s September home value

lift and private home inspections once

a transition of demand away from the cities towards the major regional centres, particularly those that are

again permitted,

adjacent to the larger capitals where

we expect to see

residents can commute back to

activity lift in

the cities if required. Remote

October.”

working arrangements are no doubt

The rate of decline across Sydney’s market

has been consistently easing since July, and the remaining capital cities have all returned to some level of growth.

index results showed a 0.1% fall

Regional markets have continued

in dwelling values nationally. This

to out-perform relative to the

was comprised of a 0.2% drop in

capital cities. At a broad level, the

the combined capitals index and a

combined regionals index has slipped only 0.8% since March

C21 MARKET PULSE

Anecdotally we are also observing

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a factor in supporting demand in these markets, but lifestyle opportunities and a desire for lower density housing options are also playing a part.”

Click here to read the full article

BUILDING WEALTH

WHAT YOU NEED TO KNOW ABOUT BUILDING AN INVESTMENT PROPERTY When thinking of an investment property, your first thought probably isn’t an empty block of land. But did you know that there are many advantages to building an investment property?

Not only can you build the property to be fit-for-purpose, there are long-term financial benefits that can boost your cash flow.

You can claim depreciation on

BY BRADLEY BEER, B M T TA X D E P R E C I AT I O N

property is that you can claim

depreciation of 25 per cent. While

every depreciation dollar available.

vinyl flooring has an effective life

You can claim capital works for

of 10 years and a diminishing value

a total of forty years, while plant

rate of 20 per cent. This means you

and equipment is claimed over

can claim more from carpet sooner

each asset’s individual effective

than you would from vinyl flooring.

life, in the low value pool or as an immediate deduction.

Remember the low-value pool and immediate deduction

The effective life of assets will boost your cash flow sooner

There are several incentives that can accelerate depreciation

Building an investment property

deductions further for new

gives you the freedom to choose

plant and equipment assets. It’s

everything from the paint colour to

important to remember these when

the clothesline.

deciding on assets to install when building your investment property.

all capital works and plant and

Low maintenance is always a top

equipment

priority, it’s also important to keep

The low-value pool is available for

the effective life of different assets

assets that are valued at, or cost,

in mind. The effective life of an

$1,000 or less. When in the pool,

asset determines the number of

depreciation is accelerated.

Depreciation is the natural wear and tear of a building and its assets over time. You can claim depreciation on the capital works (structural component) and plant and equipment assets (easily removable fixtures and fittings) of an investment property.

A bonus of building an investment

years that the asset depreciates across. A shorter effective life generally results in a higher rate of depreciation.

The immediate deduction is also available for some eligible plant and equipment assets costing less than $300. This means you can

For example, carpet holds an

immediately deduct the cost of that

effective life of 8 years and

asset in the year of purchase.

a diminishing value rate of

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What happens if you live in the

Get a tax depreciation

tax depreciation schedules for all

property before renting it out?

schedule completed sooner

types of investment properties,

rather than later

Australia wide.

new the property yourself before

It’s recommended that you have

To learn more about depreciation or

opening it to tenants, it’s important

a tax depreciation schedule

get an obligation-free estimate of

to understand the tax implications

completed as soon as your

likely depreciation deductions for

of doing so.

investment property is built and

your investment property, contact

genuinely available for rent.

BMT on 1300 728 726.

While it may be appealing to use

Living in the property, even for a very short time, affects what

This will mean that you can start

you can claim over the lifetime

claiming depreciation sooner. Even

of the investment. All plant and

if the property is only available for

equipment items will be classed

part of the financial year, you can

as previously used, and therefore

still claim depreciation through

not eligible for depreciation. You

partial year deductions.

won’t be able to claim any other deductions for expenses such as interest repayment or insurance for this time, either.

BMT Tax Depreciation has been the specialist in the industry for over twenty years and has completed more than 700,000

ABOUT THE CONTRIBUTOR Article provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation.

Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.

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MOVE SMARTER

COMMON MOVING MISTAKES

BY ON THE MOVE From forgetting to check whether your sofa will fit through the door of your new home to injuring yourself trying to save money on removal experts – here’s a list of common moving mistakes to avoid. Thank us later…

hesitate to ask your friends for help, you can always repay the favour when they move.

Make sure your household is fully

FORGETTING ABOUT UTILITY CONNECTIONS

insured to cover the move. You

Nothing is worse than enduring the

items may break during the process.

“It will be fine, let’s worry about it at the time” is not the attitude to take when moving home. Trust us. It takes at least a month to pack up your life in an organised manner, so don’t kid yourself – you don’t want to be having a last-minute panic when you suddenly realise you’re never going to get everything together for the time the removal van arrives.

you can’t take a hot shower at the end of the day because you forgot have to both cancel at your current place and arrange a new connection at your new home. Alternatively use a utilities connections company and let them organise things for you.

While it might seem like a great way to save money, you could seriously

unfortunately it is a possibility that

FORGETTING TO NOTIFY RELEVANT COMPANIES OF YOUR CHANGE OF ADDRESS From your employer and your children’s school to the taxation office, it can be a pain but it’s vital to update anyone that might try to contact you via post of your change

NOT MEASURING FURNITURE

of address.

This one is easily forgotten in the chaos of the move, but what happens when you get to your new place and the removal experts can’t fit your sofa through the front door? Measure your furniture and

TAKING ON TOO MUCH YOURSELF

might not want to think about it, but

stress of moving only to discover

to get connected. Remember you

LEAVING PACKING YOUR BELONGINGS UNTIL THE LAST MINUTE

NOT CHECKING YOUR INSURANCE

make sure it will fit both through the entrance to your new home and in the room you’re planning for it to go in.

ABOUT THE CONTRIBUTOR On the Move is Australia’s leading service connections specialist providing a one-stop service for electricity, gas, phone, internet, pay TV and insurance.

Since 2004 On The Move has partnered with Real Estate agencies and other organisations to give their customers a convenient and seamless move-in, lights-on experience.

injure yourself too. And don’t

https://www.onthemove.com.au/

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Moving?

Leave it to us Since 2004 we’ve partnered with Australia’s leading suppliers to bring

Connect six services in just one call

you a convenient and seamless move-in, lights-on experience.

Simple and convenient One-call convenience. In 10 minutes, we can arrange to connect all 6 services.

Our service is free You get connected by a member of our Australiabased team, absolutely free of charge.

Our Promise to you We guarantee that your electricity and gas will be connected on your agreed move-in date*.

* Terms and conditions apply. Full details at onthemove.com.au

Move home with confidence and peace of mind 1300 850 360 | onthemove.com.au

Electricity

Gas

Home Phone

NBN / Broadband

Pay TV

Insurance