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Market Update March 2015

4.1% of this was attributed to owneroccupiers re-financing; 3.6% to owneroccupiers taking out new loans, and 6% to investors who took out new loans.

Market conditions buoyant and outlook positive Through January and early February, auction volumes were tracking lower than at the same time last year, with around 8 per cent fewer across capital cities.

National Clearance Rates

Despite being early in the year, this is most pronounced in Melbourne, which has had 27% fewer auctions.

Average Sydney Perth Melbourne Brisbane Adelaide Canberra

By contrast volumes are 25% higher in Adelaide and stable in Sydney. As the entire number of auctions so far this year is similar to a large week in spring, this trend looks likely to easily be reversed. Mid-February auction clearance rates climbed to a weighted average of 70%, just 0.2% behind the same time last year.

As of the week ending 15 February, the cityby-city breakdown of clearance rates was: 70% 77.9% 33.3% 67.4% 50.6% 72% 72.2%

Refinancing Activity Increases The lowest interest rate environment since the 1950s has led to a considerable lift in owner-occupiers who are re-financing. In December, there was a large increase in the total value and number of housing loans.

Owner-occupier new loans had been flat for the past 12 months so the jump in that regard was significant. Year on year, owneroccupier re-finances have increased 27%. First Home Buyers at 2004 levels The Australian Bureau of Statistics has revised its FHB figures, reporting that first homebuyer purchases comprised 14.5% of the market in December. This very low figure confirms the vast majority of market activity incorporates upgrading, refinancing & investing. Unfortunately, the ABS only tracks FHBs who intend to be owneroccupiers, not those who are buying their first property as an investment. Anecdotal reports from members of the First National Real

Estate network indicate this is a common strategy for many FHBs. Taxation Reform White Paper Due The Federal Government will shortly release a white paper on taxation reform. Plenty of recent inquiries & taxation documents have specifically noted that the taxation treatment of property should be reviewed & if ever there was a good time to look at changes to stamp duty, it would be now. Stamp duty discourages people from moving to more appropriate accommodation, thereby robbing the economy & labour markets of associated benefits. With home values increasing 20.7% in the past 2.5 years, state Governments have reaped a windfall. Source: CoreLogic RP Data

19 Barbara St Salisbury East Family / First Home with Rumpus Room This superb family home which boasts extensive features including:  Renovated kitchen with dishwasher  Updated bathroom  Neutral colours & new doors throughout  Three bedrooms, two built-in robes  Ducted evap cooling, ducted gas heating  1.5KW solar power system  Double length carport with auto roller door  Full length rear verandah  External rumpus room with air con  Neat gardens  Adjacent to a Council maintained park with playground

Set the scene appropriately If you're buying or building new, consider what can be done to arrange the premises in a way that distances it from noise and neighbours. The location of your fences, windows, doors & yard spaces will all affect how noise travels to and from your home.

How to soundproof your home While they will differ between states and countries, most residential areas all have one thing in common: noise restrictions. Whether it's power tools in the garage or your son or daughter's party getting out of hand, there will usually come a time when your household breaches noise restrictions. It's important to know when these are: For example, in New South Wales you cannot have music heard from a habitable room in a neighbours' home between midnight & 8am. Sometimes, these things just happen. But you can take steps to cut down noise from inside your own home - and conversely, also to cut down on noise from other homes nearby if you wish.

Even trees & plants can act as a natural muffler! Work with your surroundings and you'll come out with a much more soundproofed space. Change rooms This is the same principle again, but this time on the inside. Having rooms causing noise or ones that you want to stay quiet as far away from the undesirable situation as possible is a great start. Consider reinforcing doors and windows for these rooms. You can effectively create a small sanctuary (or rumpus room) within the comfort of your own home. There are options such as insulation & glazing on windows and walls, but these can be expensive if you don't have the funds. Adapt to your surrounds to create a wonderful space, whether for noise or calm.

local results

INGLE FARM 19 Yutara Ave 3 bed 1 bath 1 car $267,850 PARAFIELD GARDENS 41 Pearson St 3 bed 1 bath 2 car $270,000 PARALOWIE 48 Lauren Dr 3 bed 1 bath 1 car $264,500 PARALOWIE 33 Metala Road 3 bed 2 bath 5 car $345,000 PARALOWIE 199 Whites Road 4 bed 1 bath 1 car $266,000 SALISBURY NORTH 23 Bantanga Cres 3 bed 2 bath 4 car $217,000 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.

Negative gearing not a perk for the rich First National Real Estate's chief executive, Ray Ellis says suggestions that negative gearing is a perk for the rich are misguided and, if eliminated in the next budget, the most vulnerable in our communities could soon see unaffordable rental prices.

continue invest in properties they are prepared to rent to others. The main thing that keeps that attractive is negative gearing'.

'The great Australian dream is to own your own home and it is important we remember just about every Australian begins his or her journey to property ownership as a tenant in a rental property' said Mr Ellis.

Current taxation arrangements offer Australians the opportunity to invest in real estate as a way of saving for independence in retirement. However, with the average property investor owning just one rental property and having an income no higher than $80,000, suggestions that the rich are exploiting negative gearing are an exaggeration.

'Australia has one of the fastest growing populations in the OECD so keeping rents affordable depends entirely on maintaining an adequate supply of rental properties. This can only be done if Australians

'If negative gearing were removed in an environment of the lowest interest rates since the 1950s, Australians would be unlikely to continue to invest in rental properties at current rates. They would seek better returns

elsewhere and, with population growth near record highs, the supply of rental properties would fall short of demand, thereby forcing up rents' said Mr Ellis. 'This would place unacceptable pressure on the most vulnerable citizens in our community. It would also lengthen the amount of time it takes for first home buyers who are renting to save a deposit to buy their first home'.

rents had an annual growth rate averaging 1.8 per cent in 2014, which means they were rising more slowly than inflation in 2014. If negative gearing were dropped, that situation could change rapidly. 'Negative gearing plays a vital role in balancing supply against the demand for rental properties and this helps keep housing affordable for everybody' said Mr Ellis.

Currently, the rate at which rents are rising is slowing down. In fact,

Saving for your deposit Local story

Getting on the property ladder is something that features high on many people's wish lists, but unless you've got a deposit saved up, this could well continue to be a pipe dream.

1. Set a budget Account for all your expenses, including the small ones - they all take their toll on your finances in the long run. 2. Pay down debts

Here are three tips to get your deposit together faster.

Pay off credit cards and outstanding loans so lenders find you more appealing.

3. Set up a separate savings account Keeping savings separate makes it less tempting to dip into them for frivolous expenses, plus, if you shop around, you'll get a better interest rate.


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Are You Looking To Buy? Below is a selection of some of our properties currently on the market.

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POORAKA 8/115 Royal Ave For a Busy First Home Professional This beautifully maintained and presented two storey townhouse is situated only 13 kilometres from the CBD. Featuring living area with attractive timber floating floors, down lights, a new modern paint finish, r/c air con, two toilets, a light & bright kitchen, bathroom with an impressive new vanity cabinet and main brm with bir and balcony. Outside is a gas instant HWS, fenced yard patio and carport. For Sale $235,000

PARA HILLS 23 St Clair Ave Impressive Updated Home This home represents a wonderful opportunity. Comprising of a formal lounge room, stylish, dining room with modern floating flooring, 3 bedrooms, master bedroom with mirrored robes, updated bathroom, ducted air conditioner as well as a split system air conditioner in the lounge room, carport, rear verandah and a good size yard perfect for the kids or family pet. For Sale $299,000 - $319,000

Sales newsletter mar 15  
Sales newsletter mar 15