BCNW March 2022 Report

March report.

Our purpose.

To create a place where we can facilitate our people’s growth.

Our values.

Family.

Our colleagues are our broader family, assist when needed and when in need.

Mutuality.

Realising potential.

Respect our colleagues and our clients as you would like to be respected.

Unlock your full potential, encourage and support your colleagues.

Embrace change.

Strive for excellence; be open minded and willing to embrace change.

Health and energy.

Work towards being well balanced within yourself.

March report.

From our corporate director Dean O’Brien

To All,

Nationally we posted a 0.6% gain in home prices according to the Corelogic home index report released on 1 March. Australia has now enjoyed 17 consecutive monthly increases in home prices.

Melbourne and Sydney are the two markets that continue to show signs of a slowing market, Sydney falling 0.1% and Melbourne posting no price change after posting similar results in December (-0.1%) and January (+0.2%).

(Although Melbourne prices remain unchanged the median house price did in fact fall back under $1 million whereas unit prices increased slightly by approximately $2,000 Contrary to Melbourne, Regional Victoria is keeping its growth pace posting another 1.2% gain to register 22.3% annual growth.

Rental prices in Melbourne over the course of the year have only increased 4.6% for houses and 5.5% for units which when compared to the National average at 9% its relatively a flat increase especially when we compare increases in petrol prices, food and building products. Regional Victoria rental return still favours the property investor with a 3.5% rental return.

With the start of restrictions to finance now in place, and continued talk of interest rate rises it’s worth reflecting on history. For more than 30 years, Australians have largely seen interest rates go only one way. Between January 1990 and November 2020, the RBA cut rates 51 times, taking the cash rate from 17.5 per cent to just 0.1 per cent, however between June 1968 and June 1989, the average standard variable rate went from 5.38 per cent to 17 per cent.

Our financial wellbeing is better now than prior to the pandemic. A report published by the Melbourne Institute and the Commonwealth Bank shows high levels of financial wellbeing is underpinned by healthy household savings. The median savings balance in December 2021 was a massive 42% higher than December 2019.

The Victorian Planning Authority has gazetted plans for new housing in Craigieburn West and Shenstone Park in Melbourne’s north and in Lilydale Quarry to the Yarra Ranges in Melbourne’s east. The move paves way for more than 15,000 new homes and more than 6,000 new jobs for our growing city.

Regards, Dean O’Brien Director

We sell more.

A snapshot of last months sales.

Average sale price.

Sale price.

High.

Low.

$765,278

$1.4M

$380K

Address

Number of suburbs sold in.

31

Sale Price

Suburb

50 Orange Grove

Bayswater

3

1

2

$1,075,000

36 Pindari Drive

Bayswater

4

2

2

$1,000,000

21 Coowarra Way

Berwick

3

2

2

$772,000

11 Sing Crescent

Berwick

3

2

1

$731,500

6/22-26 Buchanan Road

Berwick

2

2

1

$770,000

27 Nightingale Crescent

Berwick

4

2

2

$1,080,000

106 Wurundjeri Boulevard

Berwick

3

2

2

$975,000

10 Wanderer Court

Berwick

3

2

1

$656,000

12 Clendon Street

Berwick

4

2

2

$1,230,500

4/19 Tulip Crescent

Boronia

4

2

2

$800,000

1/59 Western Road

Boronia

3

1

1

$755,000

1/19 Tulip Crescent

Boronia

4

2

2

$909,000

6/19 Tulip Crescent

Boronia

3

2

1

$800,000

1/10 Joyce Street

Boronia

3

2

2

$760,000

17 Pasadena Boulevard

Clyde

3

2

2

$692,000

11 Bimberry Circuit

Clyde

5

2

2

$870,000

14 Honeybrook Lane

Clyde

3

2

2

$585,000

19 Buller Avenue

Clyde

4

2

2

$930,000

32 Connewara Crescent

Clyde North

4

2

2

$760,000

5 Percheron Way

Clyde North

5

2

2

$805,000

50 Glenelg Street

Clyde North

3

2

2

$660,000

We sell more.

Address

Suburb

13 Parapet Lane

Clyde North

3

2

2

$620,000

10 Pablo Drive

Clyde North

5

2

2

$990,000

2 Otooles Road

Cranbourne

3

2

2

$640,000

7/5 -7 Fairfield Street

Cranbourne

2

1

1

$445,000

1 Binding Avenue

Cranbourne

3

1

2

$690,000

18 Cemetine Terrace

Cranbourne

4

2

2

$860,000

3 Reynard Place

Cranbourne East

3

2

2

$675,000

4 Chevrolet Road

Cranbourne East

4

2

2

$720,000

54 Linden Tree Way

Cranbourne North

4

2

2

$690,000

3/4 Rhoden Court

Dandenong North

2

1

1

$430,100

21 Wakeful Crescent

Drouin

4

2

2

$720,500

44/5 Piney Ridge

Endeavour Hills

3

1

2

$635,000

9/69-71 Frawley Road

Hallam

3

3

1

$577,500

14 Sunshine Court

Hampton Park

2

2

2

$540,000

8/20-22 Somerville Road

Hampton Park

3

1

1

$380,000

4 Redwood Court

Junction Village

3

1

2

$700,000

14a Lena Grove

Kilsyth

3

2

2

$855,000

7 Chedworth Court

Kilsyth South

4

2

6

$1,170,000

17 Ruby Avenue

Koo Wee Rup

4

2

2

$835,000

63 Denhams Road

Koo Wee Rup

4

2

2

$712,500

7 Virgona Way

Koo Wee Rup

3

2

2

$685,000

14B Charles Street

Koo Wee Rup

4

2

2

$735,000

5/148 Station Street

Koo Wee Rup

2

1

1

$457,500

Sale Price

We sell more.

Address

Sale Price

Suburb

36 Roseberry Street

Lang Lang

4

2

2

$800,000

12 Jackson Drive

Langwarrin

3

2

1

$745,000

6/15 Warrenwood Place

Langwarrin

2

1

1

$602,000

62 Olive Road

Lynbrook

4

2

2

$1,415,000

18 Seattle Square

Narre Warren

3

2

2

$750,000

7 Keys Court

Narre Warren

3

2

3

$815,000

2 Chain Court

Narre Warren South

4

2

2

$847,000

5 Abercairn Drive

Narre Warren South

3

2

2

$748,000

17 Teal Court

Narre Warren South

5

2

4

$860,000

1 Comely Lane

Officer

4

2

2

$680,000

12 Atherton Avenue

Officer South

4

2

2

$950,000

4 MacAlister Place

Pakenham

3

1

1

$545,000

21 Kilburn Place

Pakenham

3

2

2

$590,000

8 John Street

Pakenham

3

1

2

$720,000

6 Spaniel Lane

Pakenham

3

2

2

$581,500

2 Hunter Lane

Pakenham

4

2

2

$720,000

30 Charles Drive

Pearcedale

4

2

2

$1,000,000

123 Sovereign Manors Crescent

Rowville

3

2

1

$710,000

25A Mercia Avenue

The Basin

3

2

0

$800,000

17 Harewood Street

Tooradin

4

2

2

$760,000

13 Cobain Square

Wantirna

3

1

2

$1,081,000

39 Wagner Drive

Werribee

4

2

2

$675,000

2/30 Yarra Street

Yarra Junction

Land

$500,000

We lease more.

A snapshot of last months leases.

Average weekly rent.

$454 Address

Average monthly rent.

$1,973

Number of suburbs leased in.

Rental price p/w.

High

Low

$990

$335 Leased price p/w

Suburb

24 Leased price p/m

9 Sydney Road

Bayswater

4

2

2

$460

$1,999

7 Grand Manor Drive

Berwick

4

2

2

$520

$2,260

2 Selby Court

Berwick

3

2

2

$510

$2,216

6 Chin Court

Berwick

3

2

2

$430

$1,868

33 Caravan Parade

Berwick

3

2

1

$430

$1,868

21 Monarch Road

Berwick

3

2

2

$500

$2,173

8/7-9 Reserve Street

Berwick

3

2

2

$400

$1,738

29 Romeo Avenue

Berwick

4

2

2

$500

$2,173

37 Valerie Street

Boronia

3

1

2

$450

$1,955

5/19 Tulip Crescent

Boronia

3

2

1

$520

$2,260

16 Amesbury Way

Clyde North

5

3

2

$450

$1,955

9 Sikes Road

Clyde North

4

2

2

$520

$2,260

11 Brightstone Drive

Clyde North

4

2

2

$370

$1,607

110 Moxham Drive

Clyde North

5

3

2

$650

$2,824

1 Hurdle Street

Clyde North

3

2

1

$400

$1,738

8 Marblelight Way

Clyde North

4

2

2

$460

$1,999

100 Glenelg Street

Clyde North

4

2

2

$480

$2,086

87 Sladen Street

Cranbourne

3

1

2

$390

$1,695

82 Springhill Drive

Cranbourne

4

2

2

$500

$2,173

52 Springhill Drive

Cranbourne

3

2

1

$410

$1,782

We lease more.

Address

Leased price p/w

Suburb

Leased price p/m

58 McEwan Drive

Cranbourne East

4

2

2

$360

$1,564

39 Villager Street

Cranbourne East

2

2

0

$400

$1,738

9 Rannoch Street

Cranbourne East

3

2

2

$475

$2,064

9 Gabitt Street

Cranbourne East

4

2

2

$465

$2,021

15 Dalziell Crescent

Cranbourne North

4

2

2

$500

$2,173

116 Courtenay Ave

Cranbourne North

3

2

2

$450

$1,955

17 Hamilton Dr

Cranbourne North

3

1

2

$400

$1,738

10 Woodlands Road

Cranbourne South

5

2

2

$990

$4,302

4 Mahara Walk

Cranbourne West

3

2

2

$430

$1,868

3 Pagoda Place

Cranbourne West

3

2

2

$400

$1,738

14 Dusky Bells Drive

Cranbourne West

3

2

2

$450

$1,955

7 Wanstead Way

Cranbourne West

4

2

2

$530

$2,303

8/14-15 Hazelmere Avenue

Cranbourne West

2

1

1

$360

$1,564

30 Sylvia Street

Dandenong North

3

1

2

$370

$1,608

1/7 Aaran Close

Endeavour Hills

3

1

2

$410

$1,782

6 James Cook

Endeavour Hills

4

2

2

$460

$1,999

5 Waruka Close

Endeavour Hills

3

2

1

$440

$1,912

8/56 Doveton Ave

Eumemmerring

2

2

1

$360

$1,564

80 Nettle Drive

Hallam

3

1

1

$380

$1,651

4 Coley Court

Hampton Park

2

1

1

$430

$1,868

6/91 Cairns Road

Hampton Park

2

1

1

$335

$1,456

11 Blackwood Drive

Hampton Park

3

2

2

$445

$1,934

We lease more.

Leased price p/w

Leased price p/m

Address

Suburb

152 Warana Drive

Hampton Park

3

1

2

$390

$1,695

3 Hazeldean Court

Hampton Park

6

3

2

$550

$2,390

16 Swain Court

Heathmont

2

1

1

$410

$1,782

29 Spring Road

Junction Village

3

2

2

$410

$1,782

58 Potts Road

Langwarrin

3

2

2

$390

$1,694

7 Hugden Close

Lyndhurst

4

2

2

$500

$2,173

11 Mermaid Grove

Lyndhurst

4

2

2

$490

$2,129

9 Lucy Court

Narre Warren

4

2

2

$550

$2,390

5 Diba Rise

Narre Warren

3

2

2

$450

$1,955

24A Tomasetti Crescent

Narre Warren

3

2

1

$400

$1,738

5 Doug Court

Narre Warren

4

2

2

$460

$1,999

5 Comet Chase

Narre Warren South

3

2

2

$380

$1,651

13 Parish Court

Narre Warren South

5

3

2

$450

$1,955

5 Forthbank Terrace

Narre Warren South

3

2

2

$460

$1,999

10 Sycamore Court

Narre Warren South

3

2

1

$370

$1,608

69 Kenneth Road

Officer

4

2

2

$450

$1,955

4 Everton Street

Officer

2

1

1

$440

$1,912

28 Majestic Drive

Officer

4

2

2

$440

$1,912

5 Gleeson Way

Officer

3

2

2

$430

$1,868

39 Kimberley Grove

Pakenham

3

2

1

$450

$1,955

26 Triumph Way

Skye

4

2

2

$500

$2,173

35 Chappell Drive

Wantirna South

3

2

2

$540

$2,346

Super Investment: How to use Super to buy a house

While initially designed as simply a way to save money for retirement, superannuation has morphed into a tool for buying property.

While it might not be as simple as withdrawing super and buying a home, by using a self-managed super fund (SMSF) or tapping into the federal government’s First Home Super Saver (FHSS) scheme, it’s possible to buy a house, thanks to the tax benefits on offer.

Australians who set up a SMSF can decide where their super is invested and that can include investment properties, but not a place to live. And through the FHSS scheme, first-time buyers can save for a deposit, via voluntary contributions, inside their superannuation account.

Here’s everything there is to know about using super to buy a house.

Using a self-managed super fund (SMSF) to buy a house Under the rules of a SMSF, Australians can use their superannuation to buy an investment property, but not one they plan to live in.

Banks will only lend up to 70% of the house value, and won’t allow lenders’ mortgage insurance to increase that amount. Remember there are many hidden costs involved in buying a home too.

SMSFs are also required to keep a “liquidity buffer” – made up of things like cash and shares – that is worth 10% of the proposed investment’s value in the selfmanaged fund.

Borrowing money to buy property is often done through a Limited Recourse Borrowing Arrangement (LRBA), which involves the SMSF trustees receiving the beneficial interest in the purchased asset, while the legal ownership is held in trust.

SMSF property and arm’s length rules Any investment – such as buying property – through a SMSF must be done on an “arm’s length” basis.

The property can be purchased through the SMSF; a fund that can have between one and four members. The members make their own collective decisions about how their superannuation is invested.

Generally speaking, that means SMSFs can’t buy assets from, or lend money to, fund members or other related parties, although there are some exceptions to this rule.

There are other rules too.

This could still mean investing in shares, but with property experiencing stunning growth in the last decade or so, many people instead include houses as part of their investment strategy and retirement plans.

The definition of “related parties” often trips up SMSF trustees because a related party is not defined merely as a relative or another member of a SMSF. It also includes:

Setting up a SMSF is a highly regulated process, and it’s smart to get professional financial advice to understand the responsibilities and set up the fund correctly.

Use SMSF as a deposit Industry guru Michael Yardney, the chief executive of Metropole Property Strategists, explained how people can use super in a SMSF as a deposit to secure a loan to then buy an investment property.

“If you had a $300,000 balance in your super, you could own $300,000 worth of a managed fund or BHP shares, or you could use $200,000 of that money as a deposit and borrow another $400,000 to buy a $600,000 apartment. So you get the benefit of leverage and gearing,” he said.

Restrictions on borrowing through a SMSF are quite strict though. Firstly, it’s not possible to use the full super balance to buy an investment property.

“You’ve got to leave some behind as a buffer. The banks are more careful so they’re only going to lend you a lower loan-to-value ratio,” Mr Yardney said.

• • • •

the relatives of each member the business partners of each member any spouse or child of those business partners any company that the member or their associates control or influence • any trust that the member or their associates control.

It’s also important to note that employers who contribute to a member’s superannuation are considered related parties too.

For further information on the rules and regulations surrounding SMSFs and property see the ATO’s website.

Using the First Home Super Saver (FHSS) scheme to buy a house The FHSS scheme lets would-be first-home buyers save for a deposit inside their superannuation account.

Article Source : www.realestate.com.au

Rather than use existing super to buy a property – as can be done through a SMSF – the FHSS scheme helps Aussies save for a deposit faster, because of the concessional tax treatment of superannuation.

When first-home buyers are ready to release their FHSS amounts, they need to apply to the ATO for a FHSS determination and a release.

Those on the scheme can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their super fund to save for a first home of up to $15,000 per financial year.

For more information read our full guide to the First Home Super Saver scheme.

They can then apply to release those contributions and any associated earnings for a deposit. The dollar value of contributions that can be released is currently capped at $30,000, but from 1 July 2022, that amount will be increased to $50,000.

How does the FHSS scheme work?

The FHSS scheme is designed to help first-home buyers save a deposit faster by making additional contributions into their super – rather than into a saving account – so they can take advantage of the favourable tax treatment super gets.

The first $25,000 that goes into the account each year is taxed at just 15% and not at the usual marginal rate. Any compulsory contributions an employer makes, as well as voluntary contributions, are counted towards this threshold.

A first-home buyer can contribute up to $15,000 a year under the FHSS scheme to a maximum of $50,000, from July 1 next year. The maximum used to be $30,000 but was upped in the most recent federal budget.

The first-home buyer can then withdraw funds contributed under the scheme to help pay for their first home. It helps buyers save for a deposit faster, because of the concessional tax treatment.

To be eligible, first-home buyers must either live in the premises they’re buying or intend to do so “as soon as practicable” and also intend to live in the property for at least six months within the first year of ownership, after it is practical to move in.

Eligibility is assessed on an individual basis, meaning couples, siblings or friends can each access their own eligible FHSS contributions to buy the same property.

First-home buyers can start saving under the FHSS scheme by entering into a salary sacrifice agreement with their employer or by making voluntary personal super contributions.

What are the benefits of the FHSS scheme?

There are a number of benefits to the FHSS scheme.

• It can boost a first-home buyer’s savings by letting them save the difference between their marginal tax rate and the 15% rate charged on super contributions • Making concessional contributions through salary sacrifice can lower taxable income.

• The scheme isn’t affected by falling markets.

• A couple gets double the benefit.

• There is a downside though. Contributing extra cash to the scheme means that cash is “tied up” to a deposit and not available for other uses.

Get professional advice As with any major financial decision, people should seek advice from a registered financial planner before opening a SMSF, to understand how their und will operate and how they’re able to access and use their superannuation.

Article Source : www.realestate.com.au

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