September 2014 - What to Expect in Spring & Tips for Buyers
By Rich Harvey, Managing Director propertybuyer
This spring we are expecting to see a slow rise in the number of listings and a very competitive buying environment. Auction clearance rates are still over 75% and I feel they will stay that way during spring. The question is, what will happen to the market in 12 months time?
In this edition we look at:
- What to Expect in Spring & Tips for Buyers
- Seminar: New Money Making Property Strategies
- Client Stories
1. What to Expect in Spring & Tips for Buyers
What a year it’s been so far! The Sydney housing market has been the stand-out performer nationally with median house prices rising 16.3% over the 2013-14 financial year. Sydney’s median house price is now $800,000 and median unit price $586,000.
The question on everyone’s lips is how long will it continue? The strong surge in demand for housing has been driven by low interest rates attracting more investors and home buyers to upgrade. First home buyers are still scarce, while the middle tier of the market has performed strongly. The prestige market is showing signs of further growth but has yet to really fire up.
The prediction for interest rates is fairly flat as indicated by the 5 year fixed rates currently on offer by the major banks at 4.99% pa.
The Sydney property market is one of the strongest I have seen since the last big boom in late 2003. There is extremely strong demand across all price ranges and property types up to around $2.5m. In Western Sydney it is not unusual to see a property sold within the first week of listing. It’s a similar scenario for properties in the Inner West, Northern Beaches, North Shore and Eastern suburbs where competition amongst both investors and home buyers is driving prices forward.
Some auction campaigns have been shortened to 3 weeks to bring forward buyers. The “changeover” market for homes is hotly contested as buyers seek to secure a property quickly after their own sale. The challenge for many is whether to buy before selling or to sell before buying.
We are regularly seeing properties go above reasonable value at auction, so we aim to buy prior to auction or private treaty wherever possible. We are also getting access to some excellent off market properties in this market.
Overseas expats and foreign buyers have also been making more inquiries about our buyers’ agent service to help them navigate the tougher conditions in this market.
Sales agents are reporting a low level of stock coming on the market. Spring traditionally sees a rise in the number of listings after the quieter winter months. We expect to see more vendors taking advantage of the current conditions and listing this Spring but their challenge will be to find another home that fits both their budget and lifestyle within a shorter time frame. Houses are only on the market for an average of 29 days according to RP data.
Talking of moving quickly, we recently secured a property for a client on Sydney’s’ North Shore for $45,000 less than another buyer. Matt our Senior Buyers Advocate had offer and acceptance for a quality family home at $1.355m and was about to get the property exchanged at the solicitors office when the sales agent called saying another buyer would pay $1.4m but with shorter settlement. Our buyer was prepared to delay settlement and we had all the paperwork ready to exchange immediately. Although the other buyer made a higher offer they were not in a position to effect the exchange unconditionally so the vendor decided to accept our offer late on a Friday afternoon:)
Tips for Buyers
So where is the market heading for the rest of Spring and into next year? APM are predicting a 7% increase in prices in the overall Sydney market over the next 12 months. They suggest that the market up to $750k will rise 8%, from $750k to $2m will rise 6% and the prestige market over $2m will rise 5%. (For are predictions see map below). So in summary we are still in an upward trajectory.
You need to take a broader view of the market and consider where you want to live long term to future proof your needs. Many of the fringe suburbs that were considered unfashionable have become popular and trendy. Buyers in this market need to do their research thoroughly – it is a market that can be very easy to pay over the odds, so stick to your budget. Have your solicitor/conveyancer on standby and get your finances organised so you can pounce quickly.
It’s hard to pick the perfect time to buy and you need to take a medium to long term view with all property decisions. If you would like to gain the upper hand in the buying process, or you’re too busy, lack confidence, or just tired of dealing with real estate agents and missing out, engage a buyers' agent to help!
Call my friendly team of buyers agents on 1300 655 615 or + 61 2 9975 3311 today to discuss your requirements, or email your inquiry. We would be delighted to help.
Rich Harvey is founder and Managing Director of www.propertybuyer.com.au, Australia's most awarded Buyers' Advocates. Propertybuyer helps property investors and home buyers search and negotiate the right property at the right price, everytime. Visit www.propertybuyer.com.au or call 1300 655 615.
2. Seminar: New Money Making Property Strategies for Equity, Growth & Cash Flow
You are warmly invited to our next seminar to discover some special techniques that will enable you to grow your equity and your cashflow from specific property investment strategies that work in today’s market.
As the market has risen rapidly in many areas, it is not feasible to just buy and hope and wait for capital growth. There are particular strategies you can use to actively grow your equity which will fund your retirement nest egg or further investment property.
Where can you go to get unbiased property advice that really makes sense? There is so much noise in the media and property magazines that it’s hard to discern the truth about the property market.
At this seminar you will learn the latest trends and strategies in the property market from experts in the field. You won’t get this information from any other source. Stop googling and start networking. Get your questions answered in a live environment. This event is likely to book out so reserve your ticket early.
Topics covered at this special event include:
- Which way will housing prices head in 2015?
- Why do the experts often get it wrong?
- How can I avoid suburbs where prices may fall?
- Where can I find areas with imminent price growth?
- Equity growth techniques for today’s market
- How to research, find, finance and secure a top performing investment property
- Will Brisbane be the next growth centre?
- Subdivision, renos, dual living, established, off-plan – which technique(s) will work best?
- Creating the right finance strategy for equity release and controlling valuers
- How to finance multiple property purchases
Date: Wednesday 22 October 2014
Time: 6.30pm registration, 7.00pm start to 9.00 pm
Venue: SMC Conference & Function Centre, 66 Goulburn St Sydney
Cost: $19 single ticket, $29 double ticket
Telephone enquiries: 02 9975 3311
Limited seating is available so book early to reserve your spot today!
John Lindeman, Director, Property Power Partners
John Lindeman is widely respected as one of Australia's leading property market analysts.
John regularly provides presentations, commissioned reports and other research services on the nature and direction of the residential property market for property industry leaders. His extensive property knowledge is complemented by around 40 years' experience as a successful property investor.
With well over a decade of experience researching the nature and dynamics of the housing market at major data analysts, John is renowned as the property market researcher that property experts go to for all their Australian housing market insights.
John’s monthly column on housing market research has featured in Australian Property Investor Magazine for over three years. John is a regular contributor to property investment e-newsletters and programs such as Michael Yardney’s Property Update, Kevin Turner’s Real Estate Talk, Alan Kohler’s Eureka Report and author of the landmark best-selling book for property investors, Mastering the Australian Housing Market published by Wrightbooks.
Rich Harvey, Managing Director and founder of propertybuyer
Rich is a buyers’ agent, property investor and professional economist with over 18 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 1700 properties for their clients.
As Australia’s leading Buyers Agent, Rich has won 25 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).
Paul Liccone, resi home loans
With a career spanning over 20 years in the lending and property sectors, Paul Liccione is a respected expert and successful entrepreneur within the financial services industry.
Whether it be delivering presentations at consumer property seminars around Australia or providing training and coaching to finance professionals, Paul has a unique, entertaining and engaging ability to pass on information which empowers others to make a difference in the pursuit of their goals.
Paul’s presentation will help you navigate your way to whatever you choose as your destination.
3. Client Stories
Here is some feedback from our a few of our happy clients last month!
Megan & David's Story
"We found the process to be very easy"
Buyer type: Homebuyer
Location: Upper North Shore, Sydney
Buyer’s Brief: Four bedroom home in the Upper North Shore with bush views
We just wanted to say a big thank you for all of your help and expertise in securing our new home in Turramurra. We found the process to be very easy and we are very pleased with the result. We certainly wouldn’t hesitate to use your services again with any future property purchases. Thanks again!
“We certainly wouldn't hesitate to use your services again”
Buyer’s Advocate, Matt Corbett
Megan and David were seeking a family home in the North Shore within a 45 minute commute to Chatswood. Of particular important was privacy and a bush outlook. After a couple of weeks I located a 4 bedroom home in Turramurra with a pool and very private set in bush surrounds. We managed to secure the property prior to auction but it was a very close contest. After having our offer accepted another buyer submitted an offer in writing at a level of $45,000 over ours. However, they were not in a position to exchange until the following day. I had arranged to do the exchange with the vendor’s solicitor at his office that evening and the timing was critical. I spoke to the vendors and of particular importance to them was an extended settlement, so fortunately they decided to exchange at the previously agreed price and not risk losing us, despite it being at a much lower level.
"I am looking forward o taking on another one..."
Buyer type: Investor, Subdivision
Location: Regional NSW
Buyer’s Brief: Seeking a property which will offer quick capital gain via value adding e.g. subdivision
I wanted to improve my (our family’s) equity position and build a property portfolio via subdivision. While I was prepared and had done it before, the time and distraction from my core business was frustrating. I was worried about the time committed to finding the right site and then to do the due diligence to make an educated decision.
Propertybuyer provided a logical approach and developed a strategy with our end goal in mind. I feel positive about the development I am entering into and I’m looking forward to taking on another one. From an ROI point of view, it makes sense. I go to a doctor to cure my illness and I go to propertybuyer to find my property.
“I go to a doctor to cure my illness and I go to propertybuyer to find my property”
Brad & Alicia had a 3 year plan to move to the area of their liking while building a portfolio at the same time. We were able to structure enough equity to gain a duplex and by strata titling, allowed the project to move forward with the next property in their portfolio while allocating some equity to their dream home.
If you are interested in any of the above please contact Jason Low (Manager- Client Relations & Strategy) 1300 655 615 or 02 9975 3311 or email your enquiry to email@example.com
To review the full details of these opportunities you will need to sign a simple confidentiality agreement which protects our interests in the property. If you purchase a property, a fixed sourcing fee will apply.
We look forward to assisting you.