Market Updates
June 2011: What's Really Happening in the Property Market
Welcome to your June propertybuyer market update. In this edition we will look at...
- What's Really Happening in the Property market?
- Asia-Pacific Award Win
- Hot deals
- Reaching Your Property Goals
- Inspiration Corner - Thoughts of the Month
View online version: Market-Updates .
Change your email address or unsubscribe at bottom of email.
1. WHAT'S REALLY HAPPENING IN THE PROPERTY MARKET – by Rich Harvey
Despite what you may read in the mainstream media, the property market is not crashing – just softening. Long term savvy investors can read the signs as this being an opportune time to capitalise on a soft market. The median capital city dwelling price fell just 0.3% in April to be 1.5% lower for the year according to RP Data Rismark. This is a far cry from the doomsayers at JP Morgan and Prof Keen saying a 40% crash.
While many markets are soft, the Sydney market actually recorded a slight increase in median price. The latest figures from Australian Property Monitors shows that Sydney house prices rose 1.1% over the April quarter (this followed a 0.6% fall in the March quarter). Sydney’s unemployment rate is now sitting at just 5.0% compared to 5.7% a year ago. Strong migration, the continuing mining boom, population growth and a fundamental undersupply of housing are key factors that will help underpin the resilience of the property market.
Dr Andrew Wilson, Senior Economist of APM, said that the “biggest contributor to the April rise in house prices came from the top 25% of the market, which increased by 5%. The upper-middle price sectors rose by 1.7% while the bottom 50% of the market recorded no rise in median house prices over the April quarter.”
Vacancy rates across Sydney are still very tight with the Real Estate Institute showing that the inner and middle ring suburbs within 10km of the CBD are sitting at just 0.9% vacancy factor (from 1.1% last month).
A recent report by Fitch Ratings identified Queensland as the main state suffering the worst in mortgage arrears with mortgage arrears rising to 2% from 1.54% 6 months earlier. The overall national figures show that housing arrears rose from 0.20% in 2002 to 0.70% (ie more than 30 days in arrears). The media will of course sensationalise these figures out of context.
The Melbourne-Westpac Institute of Consumer sentiment fell 2.6% in June which is the lowest level since June 2009. Households are currently saving more, paying down debt and have a fear of further interest rate rises.
But it’s not time to hit the panic button and bail out of property…..rather, we are actively looking at many more acquisitions for our clients as vendors are discounting and negotiating with buyers to meet the market.
What we are likely to see is….
With unemployment low and wages rising, we are likely to see renewed buying activity later in the year. Once both vendors and buyers understand that values are unlikely to fall dramatically and the threat of major interest rates hikes wanes, the fundamentals of short supply and increasing demand should see properties prices stabilise then recommence their upward journey.
So where do we see value in the current market…
The prestige market is ripe for picking up quality properties in premium locations at a long term discounted price. For example, RP data report that Hunters Hill median values fell 31% to $1.42m from its highest price peak ($2.05m), Woolhara fell 18.5% to $1.84m from a peak of $2.26m, while Mosman has fallen 21% to $2.2m its highest price peak of $2.81m. Price movements prestige market are largely driven by a strongly performing sharemarket and higher levels of economic activity rather than interest rates.
In the middle price brackets, we are also seeing excellent value for houses in suburbs with median prices between $750k to $900k. An example is Frenchs Forest (median price $857,000) which is foreshadowed to see a new hospital built in the next 5 years bringing additional impetus for yield and capital growth.
At the lower end of the market, suburbs with median prices lower than $500k have been shown to be more resilient to price swings as they are coming off a lower base and being more affordable have great levels of demand. However, these suburbs are also more volatile to interest rate movements as mortgage owners are more sensitive.
The same message for all my updates remains. Don’t consider the property market as a single market. There are considerable variations in prices and property types and there are no short cuts to due diligence. It’s all about research, research, research.
2. ANOTHER AWARD WIN!
I am very pleased to announce that propertybuyer was awarded winner of the
- “Best Property Finder Asia Pacific” and
- “Best Property Finder Australia” (the Five Star Award)
in the 2011 Asia Pacific Property Awards in association with Bloomberg Television and Google.
The award was presented at a high profile gala presentation dinner at the Longemont Hotel, Shanghai on May 31st. The award is recognised as a symbol of excellence throughout the global industry. The winner was chosen as a result of a meticulous process involving a judging panel of over 50 experts chaired by Lord Bates of Langbaurgh, covering every aspect of the property business.
Rich Harvey, founder and Managing Director of
www.propertybuyer.com.au said “We are absolutely thrilled and honoured to be the recipients of the Asia Pacific Property award, and to be named the Best Property Finder in the region.”
The awards are judged on excellence in service delivery, experience, staff training, service offerings, marketing, testimonials, innovation, leadership, information technology, risk management and client case studies.
“Buying a home, investment property or commercial premises is the most expensive purchase a person will make in their lifetime. We see so many people make poor decisions based on emotion and ending up with classic ‘buyers remorse’ or paying over market value.”
“This award helps to reinforce our message about ‘buyer beware’. With property market conditions continuously changing, it is critical that buyers get totally independent and professional advice on a property’s true value”
Thanks again to all our clients for placing your trust in us. We greatly appreciate your business.
3. HOT DEALS
My team has located some excellent deals in the past month: Please take a moment to review these deals and contact us to find out more….
Investment:
Northern Brisbane 3 bed/ 2 bath/ 1 car townhouse for $345k renting for $350pw
Hunter Region:
We have a limited number of 4 bed, 2 bath, 2 car homes from $378,500 (discounted from $399,999) and returning a rental yield of $650pw to $750pw furnished – that’s impressive 10.3% yield!
Key growth drivers include mining agriculture and tourism.
Also have motivated developer offering $400k to $420k for 4 bed 2 bath 2 car house within major regional center and renting for $460pw.
Whitsundays area:
Would you like to create up to $80,000 instant equity? House and land for $420,000, 4 bed, 2 bath 2 car (300m to shops), valuation approx $500k and rent $480 to $520pw. Only two blocks left.
Blue Mountains:
Secured lovely 5 bedroom house with valley views for $550k originally listed for over $615k.
Inner West:
Located ideal first home 2 bed apartment for lovely young couple looking to step onto the property ladder for under $500k
Eastern suburbs:
Secured lovely 2 bed terrace in Darlinghurst 1 week prior to auction for $790k (appraisal up to $800k) and competed against 3 other buyers willing to pay more.
Northern beaches: Secured property in Freshwater for $615k (2 bed apartment fully renovated with great outlook) which was $15,000 less than appraised value.
Lower north Shore Purchased a 3 bed duplex for $835,000 originally listed for $910,000 in excellent condition and will rent for over $800pw.
Western Sydney – Secured positive cashflow property for $285k and organized construction of backyard flat will produce a total yield approx $525pw.
There are many more deals to describe but I don’t have the time to write about them all!.....
4. REACHING YOUR PROPERTY GOALS
This seminar is all about being inspired to set realistic and achievable goals, overcoming your fears and setting a practical course to achieve build wealth through property investment. Come and be inspired by local identity Stephen Bock from Sydney’s Northern Beaches who became the 61st Australian to stand on the summit of Mount Everest.
Speaker Topics:
1. Stephen Bock
The daunting challenge to climb Mt Everest was a major life- goal for Steve since primary school. Understand how to break though your own challenges and hear how to become a possibility thinker.
- The transition from normal, corporate guy to Everest summitteer
- Goal setting – Reaching your own goals
- Team work - the power of team training
- Leadership - The skills required to overcome enormous challenges
- Fear - Overcoming fear and pushing beyond limits (physically and mentally)
- Endurance - Surviving the 60 day climb
- Growth - How this experience has changed me and my attitudes
2. Rich Harvey
Have you ever wondered how some property investors manage to buy multiple properties and create a large portfolio? There are very simple and safe strategies you can use to super-charge your property portfolio.
- Identifying the right properties and areas for investment success
- Setting realistic property goals
- How many properties do I need to retire?
- Creating $100k of equity in 18 months
- Finding positive cashflow in Sydney with yields of 10%+
- What is the right balance between cashflow positive and growth properties?
- Can I buy property via my super fund?
- Which property types provide the best overall return?
- Real life portfolio building examples
- Plus more….
3. Finance specialist (speaker to be advised)
- Latest hot rates for mortgage deals
- How to secure finance multiple properties
- How do I protect the equity I have created in my properties?
- What size finance buffer is adequate?
- Avoid financing traps for the unwary
Date: Thursday 28th July 2011
Time: 6.30pm to 8.30pm (6.00pm for registration, nibbles, drinks and networking)
Venue: Harbord Diggers Club
Investment: Early bird discount $29 Single ticket, Double $39 (book before Monday 25th July) (Standard ticket price: Single $39 and Double $49)
Book now at this link:
Speakers:
1. Rich Harvey,Managing Director and founder of propertybuyer (Buyers Agents)
Rich will present many tips that will propel your knowledge to the next level. Rich is a licensed buyers’ agent, property investor and professional economist with over 17 years experience in the property industry. He is a research expert and highly skilled in investment analysis and negotiation techniques that can deliver real savings for his clients. Rich and his team have purchased over $550m worth of property for clients.
As Australia’s leading Buyers Agent, Rich has won 18 major awards including the prestigious National Telstra Business award in 2007 and also named the winner "Best Buyers Agent in Australia" by the Real Estate Institute of Australia (REIA).
2. Stephen Bock, Sales Director- Ray White Manly.
Stephen has been an ‘Elite Performer’ for the Ray White Group in 2008, 2009 and 2010 (ranked in the top 5% of the group Internationally). Competitive by nature, Stephen strives on pushing the limits in both his business and personal life. For many years he has competed in Aerobatics at a National level and in 2010 successfully summitted Mount Everest as part of an International climbing team. Hear Stephen speak on his life changing transition from Sydney realtor to Everest summitteer......
Click here to book your tickets now.
5. INSPIRATION CORNER
“Effort only fully releases its reward after a person refuses to quit.” Napoleon Hill
“Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude.” Thomas Jefferson
“The time to begin most things is ten years ago.” Mignon McLaughlin
“Do you know what happens when you give a procrastinator a good idea? Nothing!” Donald Gardner
“When you do nothing, you feel overwhelmed and powerless. But when you get involved, you feel the sense of hope and accomplishment that comes from knowing you are working to make things better.” Unknown
Thanks for connecting with our June market update and we look forward updating next month.
To get a professional buyers advocate on your side sourcing and negotiating the best opportunities throughout Sydney and Australia, please call 1300 655 615, click our wishlist, or
This email address is being protected from spambots. You need JavaScript enabled to view it.
us to find the easier way to buy property.
Warm regards
Rich Harvey
Managing Director
Tel: +61 2 9975 3311
www.propertybuyer.com.au
PS.... PLEASE SEND TO A FRIEND
Your subscription to propertybuyer´s market updates are absolutely FREE!
To help spread the good word about buyers agents could you please send this newsletter to someone you know that would also benefit from the information.
Many thanks. Rich
Disclaimer: Information presented in this newsletter is not to be taken as financial advice for your personal situation - please consult with qualified professionals before taking any action. (Full disclaimer available on our website: www.propertybuyer.com.au )
Enquiry Form
Call now on 1300 655 615 or
send us your enquiry...
There is no substitute for an insider's view of the residential real estate industry, regardless of how much you think you have learned from the media and talking to friends.
