C21 Market Pulse | March 2022 | Australia

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PUBLISHER Century 21 Australia Pty Ltd

CONTRIBUTORS Chris Gray Tim Lawless REI Super Cover Guard Insurance Home Beautiful

EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600

ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600

WELCOME TO THE

March 2022 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

Cover image: R ARCHITECTURE on Unsplash

C O N T E N T S M arch

BUYING TO RENOVATE

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LANDLORD INSURANCE

What property should you buy to renovate?

Why buy landlord Insurance ?

Your Empire CEO, Chris Gray

Cover Guard Insurance

PROPERTY MARKET UPDATE

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REFRESH YOUR LAUNDRY

Growth in Australian housing values continues

5 ways to refresh your laundry without renovating

to lose steam as Sydney records first decline in

Home Beautiful

17 months CoreLogic Head of Research, Tim Lawless

GENDER SUPERANNUATION SAVINGS GAP

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Be an agent for change REI Super

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B U Y I N G TO R E N OVAT E

WHAT PROPERTY SHOULD YOU BUY TO RENOVATE? B Y C H R I S G R A Y, C E O, YO U R E M P I R E

If you’re looking to renovate for profit, buying the right property can be just as important as hiring the right renovation team.

Whatever your budget, you’ll still have to weigh up whether you choose a better location and a smaller property, or a property further out that’s probably a lot larger for the same money. So, what difference does it make when it comes to making a return on your renovation project?

another level or two in the airspace above, you’ll be increasing the living space and that’s one thing that really can increase a property’s value.

• If you buy a property close to a main capital city you are generally going to be buying a smaller property and it’s going to cost you a fair amount of money as property is in much shorter supply and higher demand • The downside of buying that smaller property is that there will be less chance of increasing its size as it will probably be a unit,

profit will be made by turning

townhouse or terrace, especially

something old and ugly into

if it’s in Sydney or Melbourne.

• The upside though, is that there is

However, there will be a limit to how

often a lot of money in these areas

much of an increase an old 100m

and no matter what the market is

2 bed unit will rise if it turns into a

doing, there will nearly always be

new 100m 2 bed unit, especially

a buyer if you have renovated it to

if you’re refinancing and the bank

what the local market is after.

sends out a valuer. They will

• The inner city has a range of

research the price you paid before,

buyers with multiple types of

estimate the cost of a renovation

budget and so if you’re in an

and compare it to other 100m 2 bed

area where properties sell for

units in the vicinity.

anywhere between $1m and

However, if you buy a property where you can expand out the back or add

$10m, it shows that the right buyer will almost pay any price for the right property.

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• If you buy a property further out from a capital city, there’s a greater chance that you can buy something with more land as

BUYING BLUE CHIP

A large part of your renovation

something new and beautiful.

BUYING FURTHER OUT

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there isn’t so much supply and properties are spaced further away from each other.

• The upside of this is that often you can increase the number of bedrooms and living space by building up or out. You may even be able to consider a complete knockdown and rebuild or building a number of properties in its place.

• Properties are often easy to value on a price per square metre, so double the space could easily mean up to double the value • However, the downside of this strategy is that outer areas don’t always have the same demand as the inner areas and often the buyers don’t have the same range of budgets • Many of the properties might be a similar size and price range and so it may be hard to double a property’s value from $500k to $1m if the average price of the area is only $750k

When it comes to renovating for profit, there’s never one single strategy that suits everyone and a lot can depend on the market at the time you buy and that may well change by the time you want to sell.

Build your experience as you go and don’t try and take on too big a project as your first attempt.

It can be much better to make a small profit on a fairly guaranteed project then going for gold and coming unstuck.

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 property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @YourEmpire C21 MARKET PULSE

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

GROWTH IN AUSTRALIAN HOUSING VALUES CONTINUES TO LOSE STEAM AS SYDNEY RECORDS FIRST DECLINE IN 17 MONTHS

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

CoreLogic’s national Home Value Index (HVI) posted a 0.6% gain in February, the 17th consecutive monthly increase in the national HVI. While housing values are generally rising, the pace of growth in the national index has trended downwards since April last year. February’s growth of 0.6% marks the lowest monthly growth reading since October 2020 and is down from 1.1% in January and a cyclical peak of 2.8% in March 2021.

According to CoreLogic’s director

Similarly, regional markets have

the annual growth trend turned in

of research, Tim Lawless, every

been somewhat insulated to slowing

February. Nationally, home values

capital city and broad ‘rest of state’

growth conditions, with five of the

were 20.6% higher over the past

region is now recording a slowing

six rest-of-state regions continuing

12 months, down from what is likely

trend in value growth, albeit with

to record monthly gains in excess

to be the peak rate of annual growth

significant diversity.

of 1.2%.”

recorded at 22.4% last month.

“Sydney and Melbourne have shown

The stronger housing market

Regional Australia continues to

the sharpest slowdown, with Sydney

conditions in Brisbane and Adelaide

record a substantially higher rate of

(-0.1%) posting the first decline in

can be seen in the quarterly growth

growth than the capital cities. Over

housing values since September

figures, with Brisbane housing

the past three months, housing

2020, while Melbourne housing

values rising 7.2% over the past

values across the combined rest-of–

values (0.0%) were unchanged over

three months to February, while

state regions increased at more than

the month, following similar results

Adelaide is up 6.4% over the same

three times the speed of housing

in December (-0.1%) and January

period. At the other end of the

values across the combined capital

(+0.2%),” he said.

capital city growth spectrum,

cities; 5.7% and 1.8% respectively.

“Conditions are easing less noticeably across the smaller capitals, especially Brisbane, Adelaide and

Melbourne values are 0.2% higher over the past three months while Sydney values have risen by 0.8%.

Hobart, where housing values

With the trend in housing values

rose by more than 1% in February.

losing pace over the past 11 months, C21 MARKET PULSE

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Click here to read the full article

G E N D E R S U P E R A N N U AT I O N S AV I N G S G A P

BE AN AGENT FOR CHANGE

BY REI SUPER

We’ve all heard about the gender pay gap, but did you stop to think that this would flow on to super balances creating a gender superannuation savings gap?

Women are currently retiring with

CARING FOR FAMILY AND THE ELDERLY

SO WHAT CAN YOU DO?

The super gap can then widen

you might be asking? Well, there

further as many women take an

are many simple ways you can make

average of five years out of the

it happen:

How can you be an agent for change

workforce to care for children or family members, which can cause their super savings to stagnate and begin to fall behind.

During that time out of the

however other factors aside from

workforce, some parental payments

the gender pay gap come into

may have been received, but there is

play to cause this. Over a lifetime,

no superannuation guarantee (SG)

these factors could result in

paid on such payments, unless your

women accumulating as much as

employer has a policy in place to

$67,000 less super than their male

do so.

why many women are vulnerable to poverty in retirement.

When returning back into the workforce, women then often take on a part-time position, or one

A number of factors come into

at a lower level - both situations

play in creating this gender super

resulting in lower earnings which

gap including:

equals less SG payments from

• the gender pay gap

Boost your super and avoid paying multiple fees and insurance premiums by finding and

at least 30% less super than men,

colleagues, and is a major factor in

• Consolidate

combining your super accounts.

• Contribute More Even small additional contributions to your account each month can make a big difference to the size of your super account.

• Spousal Contributions If you have a partner, chat about how they can help boost your super balance.

Click here to read the full article

your employer.

• caring for children

This not only has a big impact on

DISCLAIMER

• caring for older family members

their superannuation savings, but

• women’s longer lifespan

it can also slow career progression

Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.

THE GENDER PAY GAP

and future earning potential.

The latest 2020-21 report from the

WOMEN LIVE LONGER THAN MEN

Workplace Gender Equality Agency

Added to the gender pay gap and

shows there is still a 21.7% gender pay

the caring duties that women often

gap within the real estate industry.

take on, women also tend to live

This lower average salary means lower superannuation contributions from an employer over their career.

longer than men, and are therefore in need of more money to finance their retirement years.

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This article was brought to you by Industry Super Australia.

The information contained in this article is of a general nature does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super as well as the Insurance Guide and consider speaking to a licensed financial advisor before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129 October 2021.

LANDLORD INSURANCE

WHY BUY LANDLORD INSURANCE ?

BY COVER GUARD

Landlord Insurance gives you peace of mind to avoid financial and emotional stress. It protects your assets from theft or damage. The right policy can also cover loss of rental income and protection from liability for injuries in your property, plus many other benefits.

It may come as a surprise to most

Here are two real life claims stories

including loss of rent. The main

that within Australia, over 1.8 million

which help illustrate why Landlord

difference based on excluded

home owners and investment

insurance is so important to get right:

items, depreciation applied on

property owners have no Insurance in place at all. Even more alarming,

for those that do have insurance,

items, period for loss of rent, and

EXAMPLE 1 Type of claim – Tenant damage,

over 80% do not have the right

pet damage & loss of rent claim

cover, and they are not even aware

Claim Outcome – Claim Settled.

of this. Understanding Insurance these days can be a mine field at the best of times.

Not all insurance is the same, and it is very difficult to compare different policies.

Cost is not always the best indicator on which policy is the best.

Understanding which is the best policy, and the right amount of cover you need as a property owner is vital.

As is knowing what’s covered and not covered.

With over 20 years’ experience in the industry, Cover Guard Insurance is the go to Insurance Specialist for all Century 21 clients nationally. We are here to help you and provide peace of mind that you are completely covered when you need it most.

Total settlement $ 28,311.01 Upon a routine inspection, it was discovered that the tenant had a large dog in the back yard which had not been disclosed on the lease

application of the excess.

The claim was managed from start to settlement by the in-house Cover Guard Insurance claims specialist team. They arranged interim loss of rent payments, provided to landlord throughout the loss period to assist, and final payout was provided immediately

agreement. Condition on original

upon completion of repairs.

lease contract was that no pets were

The Landlord was never out of

allowed. As the tenant was in breach of the lease contract, the lease

pocket through the entire process.

was terminated, and upon further

EXAMPLE 2

inspection, substantial damage was

Type of claim – Accidental Damage

discovered, including damage to

– Glass Breakage of Shower Screen

the pool, internal walls, doors, fly screens, glass, carpets, floor boards, fence and back yard.

This claim was settled under the Cover Guard Landlord policy for total amount claimed $28,311.01

Claim Outcome – Settlement of claim for total amount $ 2,625.59 The Tenant had gone away for the weekend and returned to find a shower screen smashed. Damage cause was unknown. Repairs were

If the property had been insured

authorised on the spot, and the

with Terri Scheer or EBM Rent

claim was settled in full on same

Cover, total settlement would

day of claim lodgement at full

have typically been $9,497,

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replacement cost. The cause noted was accidental damage.

If this property was insured with alternate insurer – this claim would have been declined in full as damage was not tenant related and not directly caused by the tenant.

You can avoid the common pitfalls from being under-insured or not insured when renting your property either short-term or long-term by reviewing your cover annually, particularly if you have renovated or your circumstances have changed.

At Cover Guard Insurance we specialise in Landlord, Home & Contents Insurance as well as all other domestic business and commercial insurance solutions.

Please contact our Specialist Insurance Broking team. As the preferred Insurance Specialist for all Century 21 clients Australia wide, Cover Guard Insurance are here to help you when it comes to your Insurance.

Our team can provide you valuable advice, options and full review of your existing insurance Program.

DISCLAIMER This article was brought to you by Cover Guard Insurance.

This advice does not take into account your personal objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs.

Insurers have created Target Market Determinations (TMDs) which set out the type of customer and risk the product is designed for. We can confirm that you fall within these criteria for this financial product. If you would like a copy of the TMD, please advise us so that we can make this available to you.

Before you make any decision about whether the policy is right for you, you should obtain and read the Product Disclosure Statement(PDS) for the policy.

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LANDLORD INSURANCE

an th e r o M h c u M e c an r u s n I st u J r e v o C l a Exception at most competitive pricing We guarantee one of the best and most comprehensive landlord policies in the market at the most competitive pricing.

Full Accidental loss or damage cover

Rent Default

Flood cover

Loss of Rent cover up to 24 months and up to $2,000 rent per week

Long frustrating wait times on the phone

Our team will attend to your call straight away every time.

Claims – it’s not if, but when a loss occurs Why do you have insurance?

To protect your assets when a loss occurs We expect claims to occur, and when they do, our in-house experienced claims team are here to help you every step of the way.

We manage your claim from start to settlement to ensure the fastest and best outcome every time.

Fast, professional service every time – we are here to help when you need us Whether it’s a simple query, new quote or claim, our team are always here to help you when it comes to ensuring you are fully protected.

Our approach is to keep it simple, fast and always ensure you are covered.

Get the right advice for full peace of mind when it comes to your Landlord Insurance.

At Cover Guard

- we always have you covered

coverguardinsurance.com.au • 1300 038 210 726 OLD PRINCES HWY, SUTHERLAND 2232 • 19 SORRELL STREET PARAMATTA 2150 • ABN 26 168 940 869

Covergaurd insurance is a wholly owned subsidiary of Highland Property Group

REFRESH YOUR LAUNDRY

5 WAYS TO REFRESH YOUR LAUNDRY WITHOUT RENOVATING

BY HOME BEAUTIFUL There's no reason why your laundry needs to be a lacklustre space that you dread spending time in. Even if you can't afford renovate your existing laundry room there are plenty of simple DIY updates you can try that will dramatically enhance its look, feel and functionality.

From stylish storage solutions to

2. LICK OF PAINT

baskets are the answer. With so

a quick lick of paint, here are five

There is nothing a lick of paint

many different designs available,

updates that will make a huge

can't fix. Whether you refresh the

you're bound to find the ones you

difference to the way you feel

room with a bright white or make

need and elevate the style of your

about your laundry (the room and

a statement with a bold coloured

laundry while you're at it. Don't

the chore itself).

feature wall, your laundry will look

forget to add on a stylish laundry

so much better with a fresh coat

hamper, for good measure.

1. OPEN SHELVING Because who doesn't want

of paint.

5. ADD WARMTH WITH A RUG

extra storage in their laundry?!

3. INDOOR PLANTS

Laundries are typically separated

Open‑shelving is great for keeping

Indoor plants are a magical design

from your main living areas and are

all your laundry essentials at hand

tool. They are affordable, beautiful

more often than not have either a

and also provides a place to display

and will instantly freshen up any

tiled floor and/or walls. These too

décor items such as prints, pot

room you put them in. The amount

factors can make them feel cold

plants and other pretty things that

of natural light in your laundry will

and uninviting – contributing to

will inject personality into your

determine the best indoor plant

the unappealing idea of doing the

laundry. It's also worth considering

for you.

laundry. Laying a rug down in your

adding a hanging rail, which can sit neatly under your open shelves for those rainy days where drying your work shirt outside just isn't an option!

laundry will help to cosy up the

4. STYLISH STORAGE If you don't have a lot of storage space in your laundry or you like to have cleaning products and other gadgets within easy reach, storage C21 MARKET PULSE

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space and create a homely feel.

A bright or patterned rug is an easy way to introduce colour.

Click here to read the full article