BCNW June 2022 report

June report.

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June report.

From our corporate director Dean O’Brien

To All “Are we at a peak now as the downturn builds a little momentum over June” The Australian Government released its first findings of its data releases from the Census we had in August 2021. There are some key findings so far from the census from real estate perspective, the first being the huge number of unoccupied properties across Australia, this no doubt impacts on prices paid by buyers and renters as there is a shortage of properties due to owners choosing to keep properties vacant. The second finding that relates to real estate is the increasing trend of single parent families and how this is places pressure on housing but also the cost of living having one income source. To review the findings visit the ABS website https://www.abs.gov.au/statistics/people/people-andcommunities/snapshot-australia/2021 Corelogic released its June Home Value Index (insert graph) and Nationally prices for all dwellings were down 0.6% with Sydney falling the most with a 1.6% drop and Melbourne a 1.1% drops. Melburnians now have a median home price below $800,000 for both units and houses, sitting at just over $798,000. Unit prices again, as we saw last month are holding their value more than houses, falling 0.6% compared to 1.3%. The pullback on prices so far this year has been small, particularly when you consider the ASX has fallen 18%. Prices as we know across the food industry, building industry and energy industry have all spiked due to supply chain issues and we also are seeing how supply affects pricing in real estate too. For example Melbourne and Sydney still remain 8% and 7% above 2021 stock levels whereas Adelaide and Brisbane which have all dramatically increased in price over the last 12 months are sitting at 16.9% and 14.9% down on stock levels.

In Regional Victoria, we saw our first drop back in prices since before June 2020, with a 0.1% decline for combined dwelling which places the medium home price a little over $595,000

And lastly for this month’s edition, the question will need to ask ourselves if we are sellers in the market, is are we at the peak right now because what might be over the horizon is more interest rate increases and not just in July but with financial commentators predicting another rise in August, it could be a question worth pondering.

That’s all for this month,

Looking at the rental market, rents Nationally ended the financial year at 9.5% above the previous 12 months. We certainly do have a very tight rental market and rents in Melbourne from a unit perspective is leading all capital cities in price growth with a 10.9% increase in rents. Homes in Melbourne are quite different though with only a 5.2% increase, we believe this lacklustre performance has been caused partly by the Residential Tenancy Act changes introduced in March 2021, but we believe rents will now increase more, due to rental providers now meeting the minimum standards criteria for a rental property.

Regards

Dean O’Brien

We sell more.

A snapshot of last months sales.

Average sale price.

$884,184 Address

Sale price.

High.

$12.7M

Number of suburbs sold in.

Low.

33

$220k Sale Price

Suburb

4 Tracey Street

Bayswater

3

1

2

$905,000

3/3 Armstrong Road

Bayswater

3

2

1

$750,000

2/68 Bayview Rise

Bayswater North

2

1

1

$705,000

73 Bemersyde Drive

Berwick

4

2

2

$940,000

21 Peel Street

Berwick

6

2

2

$2,000,000

18 Coolabah Grove

Berwick

3

2

2

$678,000

37 Premier Drive

Berwick

5

5

2

$1,400,000

20 Cambridge Drive

Berwick

4

2

2

$1,030,000

3 Viewpoint Place

Berwick

4

2

2

$950,000

5 Coolong Avenue

Berwick

2

1

1

$660,000

114B Kanooka Road

Boronia

3

2

2

$815,000

3/11 Stonehaven Avenue

Boronia

3

2

2

$750,000

2/2 Rangeview Road

Boronia

2

1

1

$681,000

7 Medway Crescent

Boronia

4

2

5

$1,120,000

11 Lightfoot Rise

Botanic Ridge

3

2

2

$845,000

78 Maintop Ridge

Botanic Ridge

4

2

2

$1,020,000

26 Station Creek Way

Botanic Ridge

4

2

3

$1,040,000

22/12 Brunnings Road

Carrum Downs

3

2

2

$642,000

48 Grande Belmond Avenue

Clyde

2

1

1

$512,500

8 Kopico Street

Clyde

Land

$420,000

We sell more.

Address

Sale Price

Suburb

13 Waler Circuit

Clyde North

4

2

2

$767,000

8 Landsdowne Avenue

Clyde North

4

2

2

$720,000

46 Earlston Circuit

Cranbourne

2

2

0

$1,325,000

48 Earlston Circuit

Cranbourne

4

2

4

$1,625,000

128 Willow Glen Boulevard

Cranbourne

3

2

2

$610,000

13 Toirram Crescent

Cranbourne

3

2

2

$690,000

10 Fernhill Avenue

Cranbourne

3

2

2

$720,000

19 Alexander Street

Cranbourne

4

1

2

$750,000

3/160 Clarendon Street

Cranbourne

3

1

2

$532,000

29 McAllister Drive

Cranbourne East

4

2

3

$815,000

18 Kirwan Drive

Cranbourne East

3

2

2

$660,000

3 Midnight Rise

Cranbourne East

3

2

2

$595,000

8 Reynard Place

Cranbourne East

3

2

2

$680,000

37 Mickleham Drive

Cranbourne North

4

2

2

$695,000

12 Hebrides Close

Cranbourne West

3

2

1

$580,000

29 Nerrena Rise

Cranbourne West

4

2

2

$680,000

5/133 Princes Highway

Dandenong

1

1

1

$290,000

231/80 Cheltenham Road

Dandenong

1

1

0

$220,000

12 Windermere Drive

Ferntree Gully

3

2

2

$800,000

4 Illira Avenue

Frankston

3

1

4

$675,000

52 Glendoon Road

Junction Village

3

1

4

$626,000

1 Latona Avenue

Knoxfield

3

1

1

$785,000

We sell more.

Address

Suburb

53 Prestons Road

Koo Wee Rup

4

3

6

$1,475,000

19 Clarks Road

Lang Lang

4

2

2

$780,000

13 Stradbroke Crescent

Mulgrave

3

1

2

$830,000

20 Kilfera Court

Narre Warren

4

2

2

$930,000

65 Amber Crescent

Narre Warren

3

1

1

$730,000

5 Nolan Close

Narre Warren North

5

3

6

$2,770,000

1 Cliveden Drive

Officer

4

3

2

$965,900

35 Annecy Lane

Pakenham

2

1

1

$370,000

19 Camelia Way

Pakenham

3

2

2

$620,000

6 Ian Court

Rowville

3

3

2

$1,410,000

24 Knott Street

Safety Beach

92 Berrabri Drive

Scoresby

4

3

2

$980,000

11 Locksley Place

The Basin

4

2

2

$1,525,000

9 Harewood Street

Tooradin

3

2

2

$755,000

43 South Gippsland Highway

Tooradin

3

1

4

$710,000

17a Harewood Street

Tooradin

1 Coltain Street

Vermont South

4

2

2

$1,330,000

331 Mountain Highway

Wantirna

4

2

2

$1,130,000

320 Peacock Road

Woodleigh

4

2

30

$1,820,000

6 Glenwright Avenue

Woori Yallock

3

1

2

$700,000

Sale Price

$1,010,000

Land

$275,000

Land

We lease more.

A snapshot of last months leases.

Average weekly rent.

$493

Average monthly rent.

$2,143

Address

Number of suburbs leased in.

Rental price p/w.

High

Low

$750

$350

Suburb

23

Leased price p/w

Leased price p/m

21 Coowarra Way

Berwick

3

2

2

$450

$1,955

3/165 High Street

Berwick

3

1

2

$455

$1,977

5 Marlesford Crescent

Berwick

4

2

2

$500

$2,173

6 Orlando Place

Berwick

4

2

2

$550

$2,390

18 Don Collins Way

Berwick

4

2

2

$560

$2,433

8 Grand Manor

Berwick

4

2

2

$540

$2,346

156 Telford Drive

Berwick

4

2

2

$450

$1,955

25 Lawrence Drive

Berwick

4

2

2

$750

$3,259

6 Glenn Erin Way

Berwick

4

2

2

$395

$1,716

46 Pine Crescent

Boronia

4

1

1

$480

$2,086

22 Saddleback Road

Botanic Ridge

4

2

2

$450

$1,955

G01/13 Foundation Boulevard

Burwood East

2

2

1

$500

$2,173

16 Scenic Avenue

Clyde

3

2

2

$470

$2,042

27 Canyon Avenue

Clyde

4

2

2

$550

$2,390

6 Apium Street

Clyde

4

2

1

$450

$1,955

We lease more.

Address

Leased price p/w

Suburb

Leased price p/m

4 Lusitano Way

Clyde North

4

2

2

$500

$2,173

11 Reina Court

Clyde North

4

2

2

$495

$2,151

13 Ippudo Way

Clyde North

4

2

2

$500

$2,173

23 Serene Way

Clyde North

3

2

1

$430

$1,868

8 Portia Circuit

Clyde North

4

2

2

$510

$2,216

95 Lineham Drive

Cranbourne East

3

2

2

$460

$1,999

115 Courtenay Avenue

Cranbourne North

3

2

2

$500

$2,173

17 Parry Street

Croydon

3

2

2

$490

$2,129

26 Boyana Crescent

Croydon

3

1

4

$510

$2,216

7 Boyd Court

Dandenong North

4

2

2

$510

$2,216

2 Patterson Court

Endeavour Hills

3

2

1

$430

$1,868

50 Essex Park Drive

Endeavour Hills

3

1

1

$350

$1,521

17/3-5 Milton Street

Ferntree Gully

3

2

2

$425

$1,847

4 Oleander Street Glen

Glen Waverley

3

2

2

$640

$2,781

39 Cornwall Street

Hallams

5

2

2

$520

$2,260

1 Eclipse Court

Hampton Park

3

1

1

$370

$1,608

We lease more.

Address

Suburb

Leased price p/w

Leased price p/m

1/137 Moody Street

Koo Wee Rup

3

2

2

$350

$1,521

5/14-20 Shrives Road

Narre Warren

2

1

1

$400

$1,738

17 Teal Court

Narre Warren South

5

2

4

$655

$2,846

78 Harold Keys Drive

Narre Warren South

3

2

2

$450

$1,955

20 Hedgerow Court

Narre Warren South

4

2

2

$600

$2,607

57 Gledhill Street

Narre Warren South

3

2

2

$465

$2,021

13 Verdant Avenue

Officer

4

2

2

$450

$1,955

25 Koba Way

Officer

4

2

2

$550

$2,390

19 Mallard Avenue

Officer

3

2

1

$375

$1,629

27 Koba Way

Officer

4

2

2

$550

$2,390

57 Havana Parade

Pakenham

3

2

2

$420

$1,825

39 Ryan Road

Pakenham

4

2

6

$750

$3,259

13 Cobain Square

Wantirna

3

1

2

$450

$1,955

15 Milpera Crescent

Wantirna

4

2

2

$600

$2,607

30/3 Ashley Street

Wantirna

2

2

1

$430

$1,868

4 Snowden Place

Wantirna South

4

2

2

$490

$2,129

How refinancing your home loan could help fund your dream renovation

“Kitchens and bathrooms are where your biggest value can be gained,” she says. “Tweaking floor plans or adding something that it didn’t have before, particularly features that the market appreciates and looks for, is always the first port of call.”

Exploring opportunities with the footprint you have, such as increasing the natural light by adding a window or a skylight, or opening up the kitchen space for living and dining, are great ways to add value with no structural impact.

Outdoor spaces are also prime real estate for adding value, as it’s often more cost-effective and easier to DIY, says Findlay.

Financing home improvements can be costly, but using your home equity could be a cost-effective way to get the most out of your renovations.

Here’s how to unlock equity in your home by refinancing and how you could use the funds to make improvements to your home.

What is equity, and how much equity could I access?

Equity is the difference between the total value of your property and your remaining mortgage balance. For example, a home owner with a property valued at $800,000 and a home loan of $400,000 has $400,000 in equity.

When refinancing to unlock equity, lenders generally allow you to borrow up to 80 per cent of the property value. This is known as your usable equity.

While your equity grows over time as the value of your property increases and as you repay your mortgage, it’s essential to consider that accessing equity can increase your total debt, says Lianna Mills, senior home loan specialist at Domain Home Loans.

“When you’re releasing equity, you’re increasing the amount you owe on your property,” she says.

“Therefore, you’re increasing your repayments and the interest that you could be charged throughout the loan term.”

“But, assuming [the renovations] will improve the property’s value, they should ideally be able to make that money back.”

“It could be as simple as refinishing your deck, putting a cover over your deck or creating a gorgeous little paved outdoor area,” she says. “Any of those things can be really great, and unlike some other larger projects, those are things people can bite off and do themselves.”

What are some other ways to finance a renovation?

Home owners can also access funds to finance home improvements by increasing their home loan, known as a home loan top-up.

A home loan top-up allows you to borrow against the equity you’ve built in your home whilst staying with your current lender, and is similar to applying for a new loan, says Mills.

“The same rules apply as they would for an initial home loan or refinance with another lender,” she says. “That is, [borrowers] will have to provide all the relevant documentation when applying to confirm they have the capacity to borrow extra.”

However, home loan top-ups are generally not available for mortgage holders with a fixed or guaranteed-rate home loan without breaking their contract.

How can I unlock equity in my home?

Home owners can unlock their usable equity by refinancing their current home loan. This is known as a cash-out refinance.

A redraw facility, which allows mortgage holders to redraw any extra home loan repayments they’ve made, could be another costeffective way to finance renovations, says Mills.

A cash-out refinance involves replacing an existing home loan with a new, typically larger loan to allow for the release of usable equity.

“When you redraw from your home loan, as you’re using your own funds, there is no change to your home loan repayment or loan term,” she says. “And, even if your lender has a small cost to redraw, which most lenders don’t, it would be minimal compared to the cost and application process to refinance or top-up your home loan to fund improvements.”

Taking out a cash-out refinance is similar to applying for a standard rateand-term refinance, whereby mortgage holders will need to provide their new lender with all relevant information and documents and agree to new loan terms and conditions.

However, the critical difference between a cash-out refinance and a standard refinance is that lenders usually need an explanation for what the equity is being used for, says Mills.

“Whenever lenders are releasing money, they need to know the purpose of the funds,” she says. “Generally speaking, they’ll just need to know what’s being done and roughly how much it will cost.”

Are there limitations to the renovations I can do using equity?

While lenders typically require some explanation around what home improvements the equity will fund, the range of improvements home owners can make is usually quite broad, says Mills.

How to use equity to fund a home renovation Equity is the difference between the value of your home and the balance of your home loan.

You can access equity by refinancing, but bear in mind that releasing equity typically increases your home loan balance.

Equity can be used to fund most non-structural renovations. A construction loan is suitable for structural renovations.

Other ways to fund a renovation include a home loan top-up or a redraw facility.

“Most lenders have quite flexible policies,” she says. “However, whenever the term ‘structural renovation’ is a part of the conversation, there are limitations with lenders.”

If you’re looking to perform large-scale renovations that involve significant structural changes, such as adding a second storey, reconfiguring the layout or extending your home, you may need a construction loan.

What kind of renovations could add maximum value to my home?

Two main spaces are key to adding value to any home, says designer and renovation expert Naomi Findlay.

article source ; www.domain.com.au

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