market update Dec 2014 /Jan 2015 Throughout spring, approximately 250,000 properties were offered across the country, but of these, the number of re-listed properties was at its highest level since the end of March. So, overall the degree of choice was smaller.
Could Australia see a generation of renters?
While total spring listings rose slightly, they were much lower than in recent years. Property ‘Undervalued’
Australia has one of the highest proportions of home ownership in the world, with nearly 70% of households owning their home, 30% being unencumbered.
market is inaccessible to FHBs is simply not true. While times are certainly challenging in Sydney & Melbourne, opportunities abound nationally.
Saul Eslake, chief economist of Bank of America’s Merrill Lynch financial services division, believes the median house price in Australia is below ‘fair value’.
However, the share of home loans to First Home Buyers (FHBs) fell again in October, according to AFG – one of Australia’s largest mortgage aggregators.
On page three, First National Real Estate’s CEO, Ray Ellis talks about the importance of encouraging young Australians to invest now, because affordability is at all time highs, relative to income.
Based on income growth and continued low interest rates, Eslake indicates house prices should increase by 3.5 - 4% in 2015, before converging with ‘fair value’.
In NSW, the proportion of FHBs has reached an historic low, possibly the result of Sydney’s high degree of competition discouraging them and skewing the state’s data. However, the perception that the
That was spring Spring typically heralds a surge in the number of properties for sale and this year was no different.
However, he does expect prices growth to slow, or even decline, when the Reserve Banks starts to increase rates in 2016.
Bonnie Doon is back In the 1997 comedy, The Castle, The Kerrigans owned a holiday house in Bonnie Doon, Victoria. When last for sale, the property attracted the attention of radio hosts Fitzy and Wippa – they couldn’t resist the urge to phone the agent, ask the price, and then tell the agent ‘he was dreaming’. Now that First National Real Estate is selling the holiday home, Fitzy and Wippa couldn’t resist making a hilarious prank call again – this time to our selling agent, Ryan Daykin. Listen in by looking up our 14 November post facebook.com/firstnatio nalrealestate Want a career in real estate? First National Real Estate is always on the look out for motivated, dynamic, results focused individuals. If you think you might be interested, give us a call for a chat today or visit the jobs and careers section of our National Website – firstnational.com.au
4 Opey Crt, Para Vista Unique Home Offers Unique Lifestyle
Large living areas with raked ceilings and exposed wooden beams Upgraded kitchen with double ovens & dishwasher Formal dining area Four bedrooms, main with BIR Study/office or games room Ducted R/C air conditioner Brick double garage with electric roller doors Vast neat yard with fruit trees
online in this market. Do your research
Avoid a holiday home scam Holiday homes are a fantastic place to spend your summer - they can be a pristine getaway for you and the family with great views and only short-term upkeep. They’re usually more affordable than hotel holidays, and a great way to discover new nooks in the countryside. And with the advent of technology in the last 10 years, it is easier than ever before to book a dream holiday through the internet. However, the prevalence of internet scams means it's important to make sure your holiday rental transactions are safe and sound - otherwise you could end up booking a property that doesn't actually exist. With that in mind, here is how to avoid scams
If you see spelling mistakes, poor images or a lack of contact details for a property manager for a holiday home, you should check out who they are. Contacting a property manager and organising an inspection well in advance is one good way to be sure about a home - check out all the details. As ScamWatch says, you should be cautious around emails offering you holiday home deals that are too good to be true, as that may actually be the case. Trust the seller, not the sales publication. Often, people decide a holiday deal is trustworthy because they know the site where it is listed. However, scammers can operate through these channels. Again, seek out the contact details of the landlord and make a phone call to determine the legitimacy of the deal. By keeping your wits about you, it won't take long to find a great deal for your next holiday home - be smart and be safe for a fantastic summer!
local results DAVERON PARK 87 Gerald Blvd 4 bed 2 bath 2 car $242,000 MAWSON LAKES 11/9-13 Yates St 3 bed 1 bath 1 car $220,000 MODBURY 142 Milne Rd 3 bed 1 bath 1 car $304,000 MUNNO PARA WEST 91b Chellaston Rd 3 bed 1 bath 1 car $185,000 PARA HILLS 3 Cynthia St 3 bed 1 bath 1 car $280,000 PROSPECT 79 Kintore Ave 3 bed 1 bath 0 car $482,500 Interested in a FREE appraisal? Whether you’re ready to sell or not, we’re happy to bring you up to date with recent results.
Why first home buyers shouldn’t sit on the sideline We really are the lucky country in Australia. The performance of our economy in the past 20 years has led to general prosperity for many Australians and our housing market has avoided the significant, setbacks experienced in the USA, England and Europe. However, talk of a housing bubble seems, for first home buyers (FHBs), to have created a sense of impending challenges and a reluctance to confront the challenge of saving and buying a first property. In NSW, FHB numbers are at an all time low and we’re told that investors dominate the market nationally. It’s little wonder FHBs feel daunted by the process. The Australian Bureau of Statistics recently admitted it had probably underestimated the number of FHBs applying for home loans because
fewer are applying for housing grants. So, for those of you feeling there’s little chance of success in today’s market, you needn’t feel alone. AFG recorded a drop in investors’ loans across every state in October and made the most loans to owner-occupiers. This indicated typical activity in a spring market, where people are simply upsizing or downsizing. While quickly rising prices in Sydney & Melbourne might create the impression of reckless spending, what we are seeing is an overdue cyclical upturn in house prices, one that is almost limited to those key markets. The vast majority of Australia’s other capital city and regional markets are witnessing much more normal conditions, or a shortage of demand. Conditions are actually ideal for FHBs and I encourage young
people, sitting on the sidelines waiting for an adjustment, to seize the opportunity of property ownership. If they can’t yet afford to live in their own home, the rental market will happily absorb any property they buy and provide a good yield, relative to interest rates. When one considers household income relative to house prices, our country is only now approaching its previous peaks, and the lowest interest rates since 1964 mean above average mortgage affordability. With the RBA’s forecasts based on the assumption of continued rising house prices, we’re not likely to
Season’s Greetings As we head into the Christmas season, we say thank you to the countless customers who have supported our position as the market leader, while we have helped them to find the homes of their dreams. This year, First National Real Estate launched an international award winning website in February, introducing extensive content to
assist people with their different journeys in real estate. Today, our network extends throughout Australia, New Zealand Vanuatu and Papua New Guinea, and our ‘national focus’ eMagazine reaches an estimated audience exceeding 1 million people monthly.
We wish you a Merry Christmas and an prosperous 2015. From the team at Taylor’s First National Real Estate.
see a better set of conditions for first home buyers in the short-term. It’s vital that those of us who enjoy the benefits of property ownership do as much as we can to encourage FHBs to act now. First National Real Estate offers plenty of advice & informative, free guides for FHBs via its national website firstnational.com.au Australia remains a lucky country, with a bright future, and there’s no place like home when you own it. Ray Ellis Chief Executive
ARE YOU THINKING OF SELLING YOUR HOME? Tim Schwarz 0448 884 599
Jakub Ratajczak 0448 114 454
Contact one of our Sales Consultants for your
FREE MARKET APPRAISAL Today!
Gavin Armstrong 0408 802 350
Paul Taylor 8264 2223
Are You Looking To Buy? Below is a selection of some of our properties currently on the market.
To view all of our properties, visit our website at www.taylorsrealestate.net.au
PARAFIELD GARDENS 7/14 Bradbury Street Stylish and Sophisticated Townhouse! Positioned in secure estate and comprises of an open plan living area with modern low maintenance floating flooring, great size kitchen with under bench oven, cook top, versatile bathroom toilet also includes a laundry, access, 3 spacious bedrooms, family room with balcony and modern 2 way bathroom, ducted reverse cycle air conditioning, garage with direct internal, rear verandah outdoor entertaining area with cafĂŠ blinds, artificial turf, slim line rain water tank. For Sale $289,000 - $299,000
POORAKA 4/12-14 Glover Ave
For Sale $255,000 - $260,000
2 Bedroom detached homette in small group of 5, close to public transport, Mawson Lakes & the Uni SA campus, recently refurbished & has built in robes to both bedrooms, open plan living with meals area, kitchen with gas c/top, Pura tap, bench & cupboard space, separate laundry with built in c/board & shelf storage, bathroom with separate shower alcove, split sys r/c air con, gas hot water service, freshly painted in neutral colours & quality floor coverings, paved undercover pergola/alfresco area, private fenced backyard, carport with roller door, security doors, toolshed & rainwater tank.
Published on Feb 27, 2015