July 2012 - Is Now the Time to Upgrade?
By Rich Harvey, Managing Director propertybuyer
Welcome to your July propertybuyer market update.
In this edition we will look at;
- Is now the time to upgrade?
- Client Stories
- propertybuyer scores 93.8% for Customer Satisfaction
Is Now the Time to Upgrade?
The good news from last month is that home values in Sydney, Melbourne, Brisbane, Perth, Canberra and Hobart all rose by 1% in June according to RP Data Rismark. Although market sentiment is still low and property market turnover is sluggish, market fundamentals are still solid with the interest rate cuts of 1.25% since November starting to filter through.
So if you've been thinking about moving house because you're running out of room or want to upgrade to something bigger you're probably asking "is now the right time for a change"?
The reality is it's very hard to pick the 'bottom of the market' but we all know intuitively that it's easier to purchase what you need in a 'buyers' market' than in a 'sellers' market'. What you might lose on your sale is more than made up in the purchase - as long as you are not out of the market for 6 months.
In the current market, the price difference between say a 3 bed or 4 bed house in the same suburb is now at a lower level than ever before. Rismark's dwelling price-to-income ratio is at its lowest level since March 2003 at around 4.5 times annual income. Future capital growth will be strongly driven by affordability and price point.
To put it simply, there is more opportunity for negotiation and subsequent discounting on properties in the higher price brackets. The sub-$1m market is still relatively strong even in this subdued market as people still trade, especially the majority of home owners around the median price bracket of each suburb. If you can afford to sell a property at say $750,000 any shortfall in price you get will be more than offset by the relative discount you can possibly obtain in the higher price bracket. Furthermore, when the market does pick up, you will have a higher valued asset that will increase at a greater dollar value than the previous property in your possession.
With interest rates on the decline and the market still soft in the over $1 million price bracket, now is the prime opportunity to upgrade your primary residence. Investors are coming back into the market driven by lower interest rates and high rental demand in most suburbs. Buying opportunities with properties heavily discounted in the higher price brackets makes it good buying if you are moving up the property ladder. Interest rates also seemingly on the decline help to fund the step up, so take advantage of this window in the market. Some economists are now suggesting that rates are on hold and the next move could be up. So the window of opportunity may not be open for long!
2. Client Stories
Here is a selection of feedback from some of our happy clients last month:
Buyer type: Homebuyer
Buyer's brief: 3-4 bedroom family home within walking distance to the beach in Eastern Suburbs
Asking Price: $1,850,000
Purchase Price: $1,800,000
Buyers' Agent Comment:
Mary-Joy and Alex were expats living in New York, who were looking for a home within walking distance to the beach in the Eastern Suburbs area. They were looking to rent it out for a couple of years until they returned home, depending on their employment situation in the USA. They had originally engaged propertybuyer to appraise and negotiate on a similar property within 100m, but unfortunately it sold for $20,000 over our appraised level and approximately $70,000 over their budget. After discussions with sales agents we were able to locate an off-market property that was due to be publicly listed in springtime, upon the expiration of the tenants lease. Due to our relationship with the agent, we were able to gain access to the property and following an appraisal, we negotiated a price that was below our recommended level and approximately $225,000 lower than the original property they had missed out on. It was just 200m from Clovelly Beach and equidistant to transport and the local shops. Alex and Mary-joy returned to Australia to view the property on settlement and were both very happy.
What our clients say:
Well this is a terrific outcome and we are very happy. Thanks for your vigilance and great result! We are having a beautiful bottle of California red as I write. Please thank the team from all our family...We really had no chance of doing this without you! Clovelly will be a perfect place for us to live in for many years. Mary-Joy & Alex
3. propertybuyer scores 93.8% for Customer Satisfaction
The Australian Achiever Awards 2012 have highly recommended propertybuyer in customer satisfaction! Now into its fifteenth year, the Australian Achiever Awards are an independent, unbiased award system based on assessment ratings from a business's own customers.
Some of the comments Australian Achiever received from our clients about us were:
"I found out about propertybuyer in a magazine when I was interested in an investment property. My circumstances changed so I had to put this on hold, but they were very supportive of this and there was no financial penalty. Six months later I contacted them again and contracts were exchanged. I found them very professional, friendly and I am confident that without their help would not be in our current home."
"I found the staff at propertybuyer were outstanding to deal with because they seemed genuinely personally involved. They took the time to analyse our personal needs and capabilities in terms of an investment strategy and were very proactive. They were contactable day and night and their response to all our questions was immediate. Their recommended strategy worked very well for us."
"The professionalism and knowledge that came from Rich Harvey, the Director, was second to none and I would not consider negotiating or making an offer without first consulting with him. His communication and customer service was very good and his negotiating skills, especially at auction or when dealing with difficult circumstances, always provided a pragmatic and results-orientated approach."Buyers Agent Thank you
Some of our strengths commented on were customer service, personal care attention plus research on comparable sales.
We would like to thank our customers for your continued support and business!