McCormack Barber Feb2019 Newsletter

in this c edition

m corm

FEBRUARY 2019

Market update Property management corner Welcome aboard New Years Eve 2018 Properties for sale 2019 Dream holiday giveaway Selling in 2019? $2,000 donated to a worthy cause What is our mb Community chest?

Depreciation change may effect you Orange Success Summit 2019

mccormackbarber realestate newsletter . february 2019

184-186 Lords Pl, ORANGE NSW | 02 6362 6566

www.mbrealestate.com.au

market update Are the tides changing for the housing market in 2019?

little more, you’re now meant to be crying. But as they say,

upgrade ($30 million); and the start of the new Medical

bad news sells papers.

School network at Charles Sturt University.

I believe the simple answer is yes. But with four key drivers,

This is exactly the type of fear-mongering the media

These projects are all starting at a time when there is

there is still uncertainty as to where the Orange market is

has engaged in with respect to the Sydney market, and

already low rental vacancy in Orange. As more contractors

heading in 2019.

unfortunately, it will impact Orange. Housing prices have

and people are bought to town, we can expect available

never risen here without significant activity from external

rentals to reduce and weekly rents to rise. Yes, it’s bad news

investors. As the constant bad news continues, we will see

for tenants. But it’s good news for home owners as investors

increasingly fewer investors considering real estate in their

enter the market chasing higher yields.

investment portfolio.

That’s not the only local factor pushing property prices

existing stock levels.

3. BANKING CHANGES What child, threatened with

upwards. Lack of available vacant land for construction is

The number of available homes for sale on realestate.com.

punishment for being naughty, doesn’t try to convince Mum

1. LACK OF STOCK

2018 saw Orange’s third straight

calendar year with more than 1,000 residential sales.

Considering the previous average was under 800, we’ve been doing well. But all these sales have eaten away at

au is a great indicator of stock levels in Orange. For over

and Dad they’ll be extra good from now on?

10 years, nearly all real estate agencies have listed their

The sceptical me sees banks as big, big children. Before

properties on the site, so looking at available homes for sale

any ruling comes down from the Royal Commission, banks

on any given day lets you compare stock levels in Orange

have suddenly become incredibly tough on investor and first

accurately. In July 2016 there were over 850 homes for sale

home loans. I’ve met a number of potential buyers who’d

in Orange; at the beginning of 2019 there are less than 350.

been previously assured getting their loan would be easy,

Even if there is massive demand from buyers in 2019, it’s highly

only now to be told by the bank, “Sorry Ms Smith-Bloggs…

unlikely we’ll see 800 house sales, let alone over 1,000.

2. CONFIDENCE IN REAL ESTATE

As a real

estate agent, I’m tired of hearing the Sydney market is

our lending criteria has changed.”

Harder loans mean fewer buyers. Fewer buyers mean lower values.

crashing with median sale prices nearly 10% down in 2018.

4. OUR STRONG ECONOMY It’s not all doom and

Why is it rarely reported that most of the Sydney market

gloom, however. Orange is full of good news. There’s our

went up by 65% in the five years prior?

unemployment rate, for starters. In June 2018, it was just

Picture this: Your home in Orange is worth $400,000. Six years

4.5%, lower than the state or Australian averages.

later, you sell it for $600,000. You’re $200,000 richer. You’d

Then there is the grab-bag of new large projects that are

be happy, right? Really happy. But not in the scenario that’s

destined to boost the local economy: the new private

being painted. Just because a little value has been knocked

hospital ($150+ million); the new DPI building ($50+ million);

off the top, because you’re only getting $200K instead of a

the Newcrest upgrade ($598 million); the Orange CBD

forcing more buyers who would have considered building into buying existing properties. This has a huge impact; our data suggests this land shortage is creating over 100 sales per year in the existing home market.

In short, we’re lucky. We live in a strong economy, one that keeps getting stronger.

So how is 2019 shaping up?

Our prediction is that for the first six months of the year, we’ll see below average buyer activity. Continued tough banking regulations, negative media surrounding property prices, and the uncertainty surrounding the looming federal election will, we believe, result in buyers sitting on their hands.

In the second half of the year, however, we’re predicting stronger sales numbers. After a quieter first half-year, the longer term fundamentals of the Orange market – its strong economy, low vacancy rate, strong yields for investors and low unemployment – will win through, once again attracting more buyers to our fantastic city.

Peter McCormack

our property management team had a very productive 2018

tom figuero & adam scimone welcome to the team McCormack Barber is thrilled to be welcoming two fantastic faces to our sales team.

Adam Scimone and Tom Figuero have built a strong personal brand in the Orange real estate market. One that has come off the back of hard work and client service.

Over the past years, we consistently heard amazing things about both Adam and Tom. We know that they will fit seamlessly into our team that values respect, friendliness, support, growth and hard work.

Welcome aboard Adam and Tom. We know that with your passion and strong values, that McCormack Barber grows stronger and more able to support the needs of our clients.

ADAM SCIMONE

TOM FIGUERO

GET IN TOUCH

GET IN TOUCH

that entrust us to manage their investment

0411 47 47 71

0434 431 355

properties to mb, have now become Orange's

adam.s@mbrealestate.com.au

tom.f@mbrealestate.com.au

The property management team has seen

coming from strong real estate backgrounds

some exciting changes over the last 12

and have brought with them a wealth of

months with both Alex D’Amico and Tahnay

knowledge and experience.

Swain going on maternity leave and being

In 2018, McCormack Barber reached the

blessed with beautiful healthy babies Elouise and Archie.

milestone of managing over 700 properties.

We also hit another record of helping over

Tahnay and Alex are both back working

380 families into rental properties throughout

part time in our support and inspections

the year.

team. Erin Aveyard joined our team in early

We are incredibly proud of our amazing

2018 however will also be leaving us soon for maternity leave! Erin Aveyard will back towards the end of 2019 with her bright and bubbly attitude.

We also saw 2 new account managers join our team, Jim Mullins and Tayla Sartor, both

team members. Through their hand work and desire to help the huge number of clients

No. 1 property management team.

OR FIND THEM ON FACEBOOK

party under the stars mccormackbarber realestate

Another amazing New Year’s Eve with the rain holding off as over 2,000 happy on-lookers enjoying what many have said was Orange’s best NYE fireworks display.

From Waratah’s Sports Club, families were treated to live music from Smith and Jones as well as Matt Boylan Smith. With temperatures much cooler than previous years, relaxed crowds were well behaved as they enjoyed the Central West’s largest fireworks display that heralded in the new year.

This year we ran our inaugural NYE photography competition for our Party Under the Stars....

2ND PLACE $250 - Roxanne Streatfeild

RUNNER UP $50 – Darryl Harrington

RUNNER UP $50 - Carmen Symonds

mcc Congratulations to all our WINNERS! 1ST PLACE $500 - Hayley Garozzo

RUNNER UP $50 – Emma Rolls

RUNNER UP $50 - Bonnie-May Wilson

msale ccormackbarber for realestate

www.mbrealestate.com.au

4 Old Regret Road, Clifton Grove

10/154 Sale Street, Orange

Meticulously maintained and loved and larger than you

Offering an amazing sense of space and a fantastic location,

would expect, 4 Old Regret Road offers some lucky family

this sleek contemporary townhouse boasts open light filled

the chance to enjoy a semi rural lifestyle within 10 minutes

living and every modern convenience. This stylish and practical

drive of Orange.

townhouse offers an enviable position only a short walk to the

$675,000 - $710,000

centre of Orange and is situated in a quiet block in Sale Street.

11 Pilcher Street, Millthorpe

$495,000

3 Clinton Street, Orange

$529,000

$1,390,000

Quintessentially Millthorpe, this cottage is full of natural

Balancing elegant original features with contemporary

charm and features. The cottage was built Circa 1900 as a

livability, this stunning period home reveals a family-friendly

workers cottage for the now historic village. With Millthorpe

layout. With contemporary style across two sun filled living

school, parks, shops, cafes and restaurants a stroll away,

areas, this picture perfect home enjoys a peaceful location

this is a highly desirable property and is a one of a kind.

adjacent to parkland in one of Orange’s most desirable areas.

1591 Cargo Road, Lidster

4/17 Icely Road, Orange

$1,475,000

$389,000

A truly superb 50 acre (20.37ha) property, featuring a

Ideally positioned at the rear of the complex, this well

luxurious light-filled home of generous proportions and

presented, light-filled town house was built with house size

high end finishes. With sublime panoramic views, in a totally

living in mind. With a spacious north-facing lounge, leading

private location and only 12 minutes from the town boundary,

to a leafy, private garden and deck, this is a super package!

this is a very special rural retreat.

Win mb’s Dream Holiday During our promotion in 2019, clients of McCormack Barber will automatically go in the draw for our McCormack Barber Dream holiday to the maximum value of $25,000 plus $4,000 spending money. Our major prize winner will get the choice of either; MALDIVES - flights and accommodation at ANTANTARA VELI RESORT AND SPA, or LOS ANGELES - flights, excursions and accommodation to LA and beyond Starts 1/2/2019. Ends 29/11/2019. Open to NSW residents 18+ who fulfil the entry/eligibility requirements. Prize is travel voucher and cash. Total prize pool up to $29,000 (inc GST). First 10 valid entries drawn at promoter’s address at 6:30 PM 6/12/19 will win one entry into major prize draw at 8:00 PM 31/12/2019 at Waratah Sports Field, Orange. Winner must be present at major prize draw and claim prize within 5 min of live announcement. Winner published at mccormackbarber.com.au/promotion 3/1/2020. Promoter is McCormack Real Estate Pty Ltd. ABN 81 105 429 329. 184 Lords Place Orange NSW 2800. Authorised under NSW Permit No. LTPS/17/20706.

For more info, go to www.mbpromotion.com.au

what you need to know to sell your home in 2019

mb community chest gives back

I believed that there were two main areas

homes and often narrow it down to 2 or 5 that

$500 - VERITAS is aiming to raise enough

$500 - TIARAH FISHER is a charity ambassador

that an agent brought massive value to their

really suits their needs. Then they ask, which

funds over the next 1-2 years to purchase a

and fundraiser that believes that together we can

clients when helping them sell a property. My

one feels the best? Create an emotional ‘wow’

Transitional Youth Housing property in Orange: a

make a difference in lives of those less fortunate.

belief was, skillset around negotiation and

and you significantly increase your chances of

one-bedroom flat which young people can rent

Tiarah has promoted awareness and raised

understanding of buyer behaviours made up

selling and securing the best result.

for up to 6 months while receiving support from

funds for numerous charities such as The-Make-

95% of the value that an agent brought to the

If you are thinking about putting your property

our case workers with living skills, budgeting and

A-Wish foundation, White Ribbon Campaign,

on the market anytime in 2019, give us a call

tenancy management.

Ronald McDonald House and many more.

In 2019 great real estate agents will add value

today. We can give you an idea of what your

$500 - COUNTRY EDUCATION FOUNDATION

$500 - CENTRAL WEST GYMNASTICS is a

to their clients in a third area – PRESENTATION.

property is worth, let you know when is the

(CEF) OF ORANGE & DISTRICTS is a community,

not for profit club with over 500 members, that

If an agent can’t give you clear and concise

best time to sell, and give you the right advice

volunteer-run foundation. Students from regional

conduct classes ranging from recreational

to how best present your home to maximise

areas are 10% less likely than city students

gymnastics to our levels programs, we also have

your selling price.

to even aspire to further education. With help

incorporated ninja warrior style classes which

from the MB Community Chest, we will be able

have been hugely popular. CWG is hoping to use

to assist more of our local students to aspire to

the grant to develop a clean and safe change

something more and unlock their full potential.

area with storage lockers for the gymnasts.

property transaction.

strategies and advice on presenting your home in such a way that makes a buyer feel connected to the property, they’re the wrong agent.

When selling (whether you like it or not), you’re in a competition. Buyers will look at 10 to 20

the mb team

Peter McCormack

Through our McCormack Barber Community Chest, we are proud to support and divide our $2,000 monthly grant to the following organisations.

why off the plan investors have been giving the edge at tax time Changes to depreciation rules mean an

that property. Only assets in new homes, or

investor who purchased a second-hand

new assets installed in an old home, now

property after May 9, 2017 could be left with

qualify for depreciation deductions.

a big hole in their pocket at tax time, while

Investors who already owned property

off-the-plan investors remain unscathed.

to claim as they always have. Depreciation

market after the 2017 budget no longer qualify

for capital works and fixed items can still be

for one of the most lucrative tax deductions

claimed, but not for assets that came with

property investors have been able to claim

the property such as dishwashers, ovens,

in the past. If you bought an investment

curtains or ceiling fans.

property in the past year and you’re hoping

How to work out what you can claim at tax time?

to claim a big deduction on your tax return,

what is our

mccormackbarber realestate

were grandfathered in, and can continue

The thousands of investors who entered the

you might want to think again.

How does depreciation work?

One of the most important parts of claiming depreciation is setting up a schedule, which

Depreciation is an allowance under tax law

lets investors plan how much they can claim

community chest?

that lets investors to claim deductions on

on each asset over a given period of time.

their taxes for expenditure incurred in their

To set up a schedule an investor should

McCormack Barber’s Community Chest program is designed to support the community that supports us.

As a building ages, the structure and the

assess

items inside it wear out, and the ATO allows

equipment of the property. They will then

investors to claim the amount that items and

present an investor with a depreciation

We will be giving away $10,000 over the next 5 months to individuals, families, groups or charities that need help.

the building have declined in value as a tax

schedule outlining what is claimable on

deduction. Until the 2017 budget, investors

their tax return.

were allowed to claim depreciation on both

A depreciation schedule costs about

For more info and to apply go to:

www.mbcc.com.au

property investments over a number of years.

new and used assets. But if an investor bought a second-hand residential property after May 9 last year, they can no longer claim depreciation on used assets within

hire a quantity surveyor who will personally the

capital

works,

plant

and

$700, and fortunately this cost is also tax deductible.

JOIN US AT THE 2019

Chris Helder INFLUENCE IN THE DIGITAL AGE This powerful program makes an IMMEDIATE impact in the areas of communication, sales, leadership and building customer relationships.

Prepare for a HIGH ENERGY presentation that will leave participants with “tools” to PERSUADE and INFLUENCE IN THE DIGITAL AGE.

Jacqui Cooper THE POWER OF PERSISTANCE Jacqui Cooper’s story is one of TRIUMPH, TRAGEDY, DEFEAT and SUCCESS. It’s a story that makes you believe in the strength of the human spirit. Her passion, persistence and unwavering

The Orange Success Summit is a unique conference designed to give you strategies, techniques and hacks on transforming 2019 into your best year.

If you are wanting to take your personal or business performance to the next level, the Orange Success Summit can't be missed.

Orange Success Summit is excited to bring to you three exceptional speakers that are highly sort after across Australia. For the first time you can experience multiple world class speakers and trainers right here in Orange - save $$$ with no flights to Sydney or accommodation costs, no extra time away from your business, and a very affordable ticket price.

dedication to a sport that is brutal and cruel, is absolutely inspiring.

Michael Sheargold 10 HACKS FOR BETTER PERFORMANCE Michael Sheargold’s mission is to empower entrepreneurial leaders with the confidence to make bold decisions and take bold actions to transform their

FRIDAY 22ND FEBRUARY @ Or a n g e E x - Servi c e s’ C l ub | 8. 3 0 am - 1 2.30 pm | $ 4 7 B ook onl ine : w w w.os s 20 19.co m.a u

business and life. With over 20 years’ experience as a Performance Coach to some of the best business leaders and teams across Australasia, Michael has a unique ability to champion change in any company.