May 2010:  Are you a Frustrated Buyer?

Welcome to our May edition of propertybuyer’s market update. 

In this edition we will look at…

1. Don’t be a frustrated buyer.  New transfer tax- what does it mean?
2. Rich’s CEO sleepout on the streets
3. Hong Kong Property Expo
4. Sydney Property market outlook – breakfast with Aussie John
5. Hot Properties
6. Inspiration Corner - Thoughts of the Month

1.  Market update –By Rich Harvey

There are plenty of frustrated buyers out there in the Sydney market as we head towards the winter months –a period when listings traditionally thin out.  During the last two months our team of buyers’ agents have seen record attendances at home inspections with buyers clambering to grab a contact from the agent and sign a contract.  As a home buyer or investor, it’s critical to keep your emotions intact and not get swept away with sensational headlines or market sentiment.  

However, the tide is starting to turn after four successive interest rate rises this year which is giving standard mortgage rates around 7.5%.  Tighter credit controls by the banks is limiting the volume of finance available for property buyers.  Auction clearance rates have slipped back a bit from 80% in Melbourne to around 70% and for Sydney down from 75% to 65%.   Consumer confidence is waning and retails sales have dipped along with finance approvals.  As headlines about affordability, undersupply and population growth take centre stage, there will be better buying opportunities during the remainder of the year.  But don’t expect to find a bargain in this hot market (or the next 3 years).  It’s about getting into the property market with a quality property that represents fair long term market value (or lower). 

It was only last year that the headlines about the effect of the GFC on the property market were making buyers run for cover. In my daily conversations with clients and investors I have discovered there are essentially two mindsets that emerge from a tough time.

• There are those that hear about the risks of property investing and do nothing, and
• Those that understand the risk, and manage their way through it and reap the reward.

 Note the difference between hearing something and truly understanding it!  So many “would-be” property investors have heard a horror story of someone buying a property that didn’t grow or deliver the promised cash flow, or being ripped off in a two tier marketing scam.  These would be investors have already made a pre-determined judgement that property investment is inherently risk and is likely to cost you loads of money. 

On the other hand, the “savvy investor” who attends courses and leverages their knowledge by engaging qualified experts will understand the risks of property investment.  They know that good results come from doing extensive research, getting independent valuation advice (not tied to commissions) and negotiating well.  This type of investor understands property cycles and how to take advantage of the market despite what the headlines are saying.

The NSW Government decided to snub the advice of the recent Henry report and increase the tax on the transfer of property.  As if stamp duty is not already high enough as a rubber stamp revenue raiser that distorts the property market.  The proposed tax is purported as a safeguard against property fraud and comprises:

• 0.2% on properties above $500,000 and
• 0.25% on properties over $1,000,000.

This means a property purchased at say $650,000 will attract an extra tax of $300, while a property with purchase price of $1.25m will incur tax of $1875.  The government hopes to raise $100m.

It will be interesting to see how lobby groups fight the tax.  The danger is they introduce the tax at this low rate by stealth, and then gradually increase it over time. 

While death and taxes are two certainties in life, it’s important not to throw your hands up in frustration in a warm market.  I see our Sydney property market growing strongly, but at a slower rate in the second half of the year.   Rising rates will deter some buyers that struggle to get finance, but sticking to proven investment strategies and prime areas that deliver long term returns will give you the certainty you need to sleep well at night as an investor or home buyer. 

If you are considering buying and would like to get the upper hand with a professional buyers’ advocate representing just you (not the vendor), sourcing and negotiating the best opportunities throughout Sydney and Australia, then please call our team on +61 2 9975 3311 or email us for an obligation free chat. 
Click here to send us your property Wishlist…

2.  Rich is sleeping on the street – June 17

I’m going homeless for one cold night this winter at the 2010 Vinnies CEO Sleepout!
My goal is to raise $7500.

In Sydney and capital cities across Australia on Thursday 17 June, I and other business leaders will brave the elements and experience homelessness first hand, for a night, to help raise money and awareness of homeless people.

Money raised through sponsoring will directly assist Vinnies to provide relief to the homeless through crisis accommodation, domestic violence support and access to budget counselling, cooking skills, legal advice and educating people on making better life choices.

For over 105,000 men, women and children who sleep out across Australia each night, it's hard to imagine anything different. With our help, Vinnies can turn the tide and give people the opportunities they need to rebuild their lives.

By sponsoring $50 you can provide a meal and educational resource for a disadvantaged child.
A donation of $100 will provide bedding, a meal and a fresh change of clothes for a homeless person for a night.
A gift of $500 provides another week at home for a family facing eviction.
Your donation of $1,000 will enable a survivor of domestic violence, and their children to make the supported transition from a Vinnies refuge into independent housing.

PLEASE MAKE A DONATION by clicking on the link below:

Remember: the more money we raise, the more we can directly assist in helping the homeless.
For more information or to sponsor me, please visit http://www.ceosleepout.org.au/location/ceoprofile.php?ceo=275

3.  Hong Kong property expo – June 5-6

I will be a key note speaker at the upcoming Hong Kong Property Expo on the weekend of 5-6 June.

If you are an expat living in Hong Kong or foreign investor looking to buy a property in Australia please come along and hear the presentation and meet us at the expo. I will also have limited time slots available on the Friday 4th June and Monday 6th June for individual appointments to discuss your personal situation and property strategies (for home or investment). 

Please contact me directly if you would like to catch up in Hong Kong
(Tel +61 2 9975 3311 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it ). 

4.   SYDNEY PROPERTY MARKET OUTLOOK

Propertybuyer is pleased to be a key sponsor of the upcoming “Sydney Property Market Outook” on Friday 18th June.   We are pleased to offer propertybuyer subscribers a 10% discount on tickets. 

Can Australia’s most expensive residential property market continue to rise?
A supply shortage, enormous population growth and a flood of foreign investors are rendering Sydney’s diverse property markets increasingly unaffordable, but how will these factors affect residential property values in the coming year and beyond?

Come and hear the views of industry experts at this year’s not-to-be-missed Sydney Property Outlook breakfast. 
Speakers include:

Justin Smirk
Chief Economist, St George Bank
Justin Smirk will set the economic context for the event providing a macro economic update and forecast for Australia and New South Wales, with particular focus on housing indicators.

Chris Lackey AAPI, CPV
State Manager, WBP Property Group
Chris Lackey will provide a grassroots perspective on the Sydney property market with an update and forecast covering the best and worst performers, market drivers and de-railers, hots spots and areas to avoid.

John Symond
Founder & Executive Chairman, Aussie
As founder and executive chairman of Aussie, one of Australia’s leading mortgage brokers, John Symond has extensive experience of not only the mortgage and finance industry, but also the peaks, troughs and in-betweens of Australia’s property markets.

John is going to cover the key lessons he has leaned through his experience of building a successful business that operates in the mortgage and finance industry and is highly influenced by the performance of property. John will also share with attendees his 2010-11 property outlook for Sydney and his thoughts on the long-term performance of the Sydney Property Market over the next 10-20 years.

Date: Friday June 18, 2010

Time: 7.15am arrival & registration. Breakfast and presentations will commence at 7.30am sharp and conclude at 9.00am.

Venue: Hilton Sydney. 488 George Street, Sydney, NSW

Tickets: $99 incl. GST for individual tickets. $890 incl. GST for a table of 10.
Registration includes continental and hot served breakfast.
The 10% discount for propertybuyer subscribers is only available for individuals only.

Bookings: To book online now (Secure payments. VISA & Mastercard only) CLICK HERE.
https://www.secureregistrations.com/SPO2010/

For all enquiries contact Louisa Parsons or Nick Brittain on 1300 302 581 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

5.  Hot property

We are continuously searching the Australian property market for great property investment deals.  Below is just a selection that we have achieved for our clients recently.

To become a propertybuyer client and get access to these deals and many more just call or email your details and we will be in touch, Click here to send us your Wishlist…

6.  Inspiration corner

“You miss 100% of the shots you don’t take.”  Wayne Gretzky

“Great opportunities to help other seldom come, but small ones surround us daily.” Sally Koch

“You can never solve a problem with the same kind of thinking that created the problem in the first place.” Albert Einstein.

“Success usually comes to those who are too busy to be looking for it.” Henry David Thoreau

[firstname], I hope you enjoyed your May market update and we look forward to keeping you informed in the next edition.

If you would like to buy a property and have a professional buyers advocate on your side sourcing and negotiating the best opportunities throughout Sydney and Australia then please call +61 2 9975 3311 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it to find the easier way to buy property.

Warm regards

Rich Harvey
Managing Director
Tel:  +61 2 9975 3311
www.propertybuyer.com.au

PS…. YOUR REFERRAL IS APPRECIATED
Your subscription to propertybuyer’s monthly market updates are absolutely FREE!  As a return favour, please send this newsletter to someone you know that would also benefit from the information.  The majority of our business comes via referrals, therefore I would really appreciate your help.  Please forward this email to a friend or colleague, by pressing the “Forward” tab on your email program and suggest they subscribe.
Many thanks. Rich