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4. March 2016 15:14  /  swanvalleyrealtyblog Comments (0)


Perth sales activity on the rise

NEW

 

Perth sales activity on the rise - reiwa.com

Sales activity in the Perth metro area increased significantly in February.

REIWA President Hayden Groves said the market had enjoyed a healthy rebound following the Christmas and New Year dip.

“reiwa.com data shows sales activity in Perth lifted 16 per cent over the month and five per cent when compared to November 2015.

“We’ve also seen that weekly sales over the last three weeks are higher than they were at the same time last year. While it’s too early to call this a trend it’s a good indicator that mobility in the market is beginning to improve,” Mr Groves said.

At a sub-regional level, the Central sub-region had the strongest increase in sales activity over the month lifting a healthy 37 per cent, followed by the North West sub-region with a 24 per cent lift.

“Baldivis in the South West sub-region and Canning Vale in the South East sub-region were the top selling suburbs in February, followed by Scarborough in the Central sub-region,” Mr Groves said.

Perth’s median house price etched back 1.1 per cent in the three months to February, coming in at $529,000.

Listings

Mr Groves said there had been a three per cent increase in listings stock in February which wasn’t surprising as vendors traditionally returned to the market at the start of the year.

“This is a marginal increase given the time of year, but it’s significant to note that listings are now eight per cent lower than they were in November which suggests this could be the early stages of a correction in a market of prolonged higher than average stock levels,” Mr Groves said.

Rental market

Perth’s overall median rent price held firm at $400 per week in the three months to February 2016.

In terms of houses and units, Mr Groves said the median price for both was unchanged over the month at $400 and $380 per week respectively, but each had dipped $10 per week when compared to November 2015.

“While tenants are still in a good position to secure a competitively priced lease in Perth, it’s encouraging for investors that rent prices are appearing to steady in 2016,” Mr Groves said.

Rental listings in the Perth metro area declined three per cent in February but remain above the long term average.

17. June 2015 19:51  /  swanvalleyrealtyblog Comments (0)


The following article is taken from Realestate.com.au website 

Caroline James

 
 

You’ve found a home you like and are waiting at the door. Now what?

A buyer’s first inspection of a prospective property is kind of like going on a blind date. You have almost certainly seen some photos (always showing the home in its most flattering light) but will likely have many unanswered questions.

Will you ‘click’? Will it meet your non-negotiable criteria? What will it look like? Has it had a hard life? Will its internal wall colours make you cringe – or make you smile?

What is the point of a buyer inspection?

Independent buyer’s agent Catherine Cashmore says a property inspection is a golden opportunity to educate yourself about the bricks and mortar before you spend hundreds of thousands of dollars buying it.

She strongly advises all buyers inspect prospective homes or investments more than twice if planning to purchase.

Often a property looks great online or in a glossy brochure but as soon as you pull up at the curb you know it is not ‘the one’. Perhaps it backs a smelly industrial site or is next to a busy, noisy road? Perhaps its bedrooms are too small for your double beds?

You simply cannot know some things unless you have visited the site in person.

Photos can be illusive, so always make time for an inspection.

Period home in Stephen Street ,  Yarraville VIC

 

“Remember, the property is being presented for ‘sale’ so any visible flaws will be covered over,” Cashmore says. “For example, a dab of fresh paint can obscure cracks in the wall or careful placing of furniture can divert your eye away from possible defects.”

Cashmore strongly cautions against buying property without walking through it. “Whether a buyer or investor, do not purchase a property sight unseen,” she says.

“At the least, make sure an independent buyer advocate that you have paid and works for you inspects the home on your behalf. Photos can be illusive and you leave yourself open to the potential of buying a dud that’s impossible to sell on if you buy sight unseen. Don’t do it.”

Inspect and save: Could a property inspection save you thousands?

What should you look for?

Everything that determines if this is somewhere you or future tenants want to live.  But don’t let groovy cushion covers sway you. This is your chance to probe this property, to measure, to push and to pull.

Man standing in kitchen of  Flemington VIC home

 

  • Does everything open and shut?
  • Do lights turn on and off without flickering?
  • Do taps work and is the water flow adequate?
  • Are there signs of water damage (i.e. peeling or bubbled paint work, mould, stained ceilings)?
  • Do doors close smoothly or stick?
  • Walk around the edge of each room and look up as well as down to gauge dimensions
  • Walk around the outside of the property to check fences and the condition of the building’s exterior including gutters and down-pipes

Ignore the furniture and decor – take a tape measure with you and measure the bedrooms.

“Often hired furniture is smaller than real furniture and can obscure a room’s size,” Cashmore reveals. “Bedrooms need to be at least 3m x 3m in size – otherwise the room is a ‘study’ not a bedroom.”

Ignore the furniture and decor – turn your attention to floorspace.

Common missteps: 7 first home buyer mistakes

Ask lots and lots of questions

Buyers should try and arrange a time with the agent to visit the home on a private inspection.

Use this access to find out why the vendor is selling and ask questions that will help you work out the real value of the property.

Questions to ask yourself may include:

  • Can I live with the floor plan?
  • Is the toilet at the rear of the home too far from the bedrooms?
  • Do the bedrooms run off the living area and be affected by television noise at night?
  • Is the home going to adequately cater for my needs over the next seven to 10 years?
  • Can I extend the property if I outgrow the home?

Family of three

 

“When attending an open for inspection, it’s hard to think clearly with crowds of competing buyers squashing in and out of the rooms,” Cashmore says.

Try and visit during the day and turn off the lights to assess natural light.

“Don’t be afraid to open cupboards to assess storage space. When on a private inspection try and visit during the day and turn off the lights to assess natural light. Is it too dark to read a newspaper without putting the light on? Is there anything you can do to improve the situation? i.e. – sky lights for example.

“Concentrate on the things you can’t change (orientation, location) – not those you can.”

 

 

5. June 2015 19:15  /  swanvalleyrealtyblog Comments (0)


The following article is a blog by  Kate Jones that appeared on the realestate.com.au website on 29 MAY 2015

 

Cabramatta

Rates set to remain steady in coming months

Interest rates are tipped to stay on hold for June, and possibly for the rest of the year, as the economy absorbs two earlier rate cuts.

Rates are currently at 2% after they were cut by 0.25% in February and again in May.

Market Economics managing director Stephen Koukoulas says the Reserve Bank will sit tight in June.

“There’ll be no change in June and for quite a few months,” he says.

“We’re at 2% and the economy is ok – it’s not strong, but certainly not any weaker than it was.”

Minutes of the RBA’s Monetary Policy meeting in May echoed this assessment of the economy, stating “forces underpinning developments in the domestic economy were much as they had been for some time”.

The minutes revealed the RBA had considered decreasing rates in either May or June, but opted for May to take advantage of revised growth forecasts by Reserve Bank staff.

RBA data suggests economic growth is expected to continue at a lacklustre pace for the next 12 months before picking up gradually in 2016/17.

Increased consumer confidence, a downward shift in unemployment rates and a cooling property market in Sydney are key to reviving our lagging economy, financial experts say.

Whilst he expects rates to remain on hold this year, Collins House independent financial advisor Dominic Alafaci says the RBA may consider raising rates if Sydney’s overheated real estate prices don’t get under control soon.

“Whilst we expect the Reserve Bank to maintain its easing bias for the medium term, there will be some upward pressure on the overall cost of borrowing especially for investment purposes as regulators attempt to contain a potential property bubble,” he says.

On the flipside, interest rates could be cut even further if the economy needs a boost to speed up growth.

“Rates will remain stable for the near term unless the economy falls away in the third quarter whereby the Reserve Bank may cut rates sooner rather than later to help stimulate the economy and improve employment growth,” he says.

With interest rates now at new record lows, Alafaci says there’s a good case for homeowners to stick to a variable rate or split to lock in fixed rates for part of their loan.

“As a rate rise is not on the cards this calendar year, keeping the bulk of your home loan variable would be worth considering,” he says.

“Although those who prefer to eliminate uncertainty from a cash flow perspective or who are fearful of potential increased borrowing costs for investment purposes, may wish to lock in a fixed rate loan with part of their facility.”

15. May 2015 18:51  /  swanvalleyrealtyblog Comments (0)


The Federal Budget has some incentives for the Real Estate sector as explained in this article by REIWA. The Real Estate Industry of WA also welcomed the retention of the stamp duty exemption in the State Budget. REIWA President David Airey said the exemption on stamp duty for homes under $430,000 is a huge benefit to all first time buyers.

Real estate sector comes out on top in Federal Budget

NEW

 

Wins for small businesses and the retention of key tax arrangements that benefit housing investment are the big positives for real estate in the 2015-16 Federal Budget. 

The Real Estate Institute of Australia (REIA) haswelcomed the Federal Budget, announced Tuesday, with Chief Executive Officer Amanda Lynch congratulating Treasurer Joe Hockey on listening to the real estate sector. 

“The Government is to be commended for ensuring stability within the sector in continuing the current tax arrangements as they relate to both Capital Gains Tax and negative gearing. 

“With other sectors of the economy slowing, housing will play an increasingly important role and it is pleasing to see the Government has not tampered with tax arrangements that have been proven to help stimulate housing investment in Australia,” said Ms Lynch. 

Ms Lynch said if negative gearing had been abolished, it would have resulted in a dwindling supply of properties for rent, escalating rent prices and reduced opportunities for low to middle income earning Australians to create wealth for self-funded retirement. 

The wins for small businesses included tax cuts, immediate deductibility for professional expenses, capital gains tax roll over relief for changes to entity structure, changes to the fringe benefits tax system for work related electronic devices and expanding accelerated depreciation. 

“We strongly welcome the small business package that will give business owners meaningful incentives to hire, invest in equipment and importantly grow their livelihood,” Ms Lynch said. 

REIA also commended the Federal Government for listening to the real estate industry on the issue of foreign investment. 

“We welcome the commitment of $67.2 million over four years to improve compliance and strengthen enforcement. We have long argued the Foreign Investment Review Board was caught asleep at the wheel. Compliance is now in the hands of the Australian Tax Office (ATO) to the funding needed to ensure the ATO has some teeth in enforcing the new regulations,” Ms Lynch said. 

Infrastructure was another positive out of the 2015-16 Federal Budget, with the Australian Government committing to providing Western Australia with $499.1 million towards economic infrastructure projects in WA for 2014-15. 

The Government has also pledged to establish a five billion dollar Northern Australia Infrastructure Facility that will be available for major infrastructure projects such as ports and railways in WA, the Northern Territory and Queensland. 

View the 2015-16 Federal Budget.

photo-parliament-house

11. May 2015 20:26  /  swanvalleyrealtyblog Comments (0)


The following post by Joe Sirianni appears in The Real Estate Conversations blog – to see article on the blog go to;

http://www.therealestateconversation.com.au/blog/2015/05/11/debt-reduction-the-best-strategy-with-low-rates#.VVAuy546yjA.facebook 

Use these rates to take years off your mortgage term and save hundreds of thousands of dollars in interest.

Debt reduction, rather than improved household cash flow, provides the best financial opportunities in the current record low interest rate environment. Last week’s decision by the Reserve Bank to further reduce the cash rate reinforces the merits of this strategy. Every mortgage holder would be well advised to make the most of these rates while they can.

This current interest rate situation may last for quite a while but it may also be short lived. The truth is, no one knows how long we are going to enjoy these rates. Record low rates tend to focus our intention on the obvious opportunities associated with cheap finance however, they actually present us all with an amazingly powerful opportunity to reduce our debts faster.

There are obvious financial benefits to making larger repayments in a low interest rate environment. Many appear to be heeding the message, with one major bank recently revealing that up to half of its customers plan to get ahead on their mortgage repayments by keeping their repayments at the same level. However, Smartline suggests it is a worthy strategy for anyone with a mortgage on their owner-occupier home.

Paying down debt that does not offer you a tax deduction on the interest expense is always going to be worthwhile. Foregoing the higher household cash flow benefit now provides major long-term financial benefits that every home owner would appreciate – taking years off your mortgage term and saving hundreds of thousands of dollars in interest.

13. March 2015 23:31  /  swanvalleyrealtyblog Comments (0)


The following article from REIWA.com explains quite clearly what a seller can expect from a real estate agent. At Swan Valley Realty we can assure you we adhere to each and every one of the following points:

Understanding the role of your agent
10 March 2015
Author: Samantha Jones

When it comes to selling your home, understanding the role your real estate agent plays is paramount, according to owner and Director of The Property Exchange.

Ms Peinke believes the role of a good real estate agent is to help the seller add value to the property with sound preparation and presentation advice.

“The difference between good and bad presentation is about 10 per cent of the actual selling price, so on a million dollar property the wrong advice could cost you $100,000 or more,” Ms Peinke said.

Managing expectations
The other important role of a real estate agent, according to Ms Peinke, is to manage the expectations of potential buyers.

“It’s important you do not set them up for a disappointment, as this will never result in a sale. A classic example of this is overpricing.

“Another example is misrepresenting the property on the internet, by using lenses that make rooms and outdoor areas appear bigger than they actually are,” Ms Peinke said.

Listing price
Determining a listing and selling price for your home can often be difficult for sellers, agents and buyers to agree upon because it’s so subjective.

Ms Peinke said that it’s important for all parties to understand that no property has one set value because it will always be worth different amounts to different people.

“The job of your real estate agent is to elevate that value in the buyer’s eyes. This involves finding ways to overcome or minimise what are likely to be objections to the property, making suggestions to buyers as to what they can do to overcome drawbacks, and to emphasise the positive points to create a balanced view,” Ms Peinke said.

Finding the agent that’s right for you
Ms Peinke believes that real estate agents require good instincts and foresight to be able to ensure the seller is protected at all times during the process.

“Your real estate agent should not just be a middle man in the process of selling your home.

“To be at the top of their game and the greatest asset to the seller, they must be a great marketer, a top communicator, a trusted advisor, a psychologist, an interior decorator, a diplomat, and have the confidence to give their sellers the advice that they need to hear, not what they want to hear,” Ms Peinke said

 
 

9. March 2015 19:48  /  swanvalleyrealtyblog Comments (0)


According to CoreLogic by RP Data this may be the case. RP Data have released the following article stating that the current low mortgage rates are invigorating the housing market from the analysis of data they collect.

“Early signs are emerging that lower mortgage rates are providing further stimulus to housing market conditions.

Even though the Reserve Bank chose to keep the cash rate on hold at their March board meeting, the February rate cut brought mortgage rates down to their lowest level since 1968. This was the first rate cut since August 2013 and the ninth drop in the cash rate since the RBA started easing rates back in November 2011.

To provide some perspective on what the rate cuts mean to the typical mortgage holder, before interest rates started falling in late 2011 a $400,000 mortgage would incur interest payments of $27,200 per annum (based on a discounted variable mortgage rate of 6.8%). By March this year, with the average discounted variable rate now tracking at 4.9%, the annual interest payment would be $19,400, a saving of $7,800 per year or $150 per week.

Since the latest rate cut we have seen a variety of timely indicators show a substantial upwards movement.

Auction clearance rates have surged to levels not seen since 2009. The last three weeks of February (including March 1) saw the combined capital city clearance rate move above 70%, with the last two weeks recording a clearance of 77% over both weeks. The higher auction clearance rates indicate that vendors have become more empowered as buyers compete more fiercely for available housing stock.

CoreLogic RP Data’s platform metadata also provides virtually a real time insight into the level of industry activity that is underway across the housing market.

Our valuation platforms, which account for more than 95% of all mortgage related valuation instructions, have seen the number of valuation events move to new record levels in February. The CoreLogic RP Data Mortgage Index, which tracks the number of valuation events on a rolling four week basis, surpassed the previous record high (which was in mid-December last year) over the month of February. The high level of mortgage related activity can be attributed to both an increase in mortgage origination activity as well as refinancing activity.

Another hint that vendors have grown in confidence since the latest rate cut is the amount of real estate agent activity we are seeing across our RP Data Professional Platform. Focussing on real estate agent activity across the platform, we have seen the number of Comparative Market Analysis (CMA) reports move to new record highs in February. CMA reports are generally actioned when a real estate agent is preparing a listing presentation or preparing a home for sale. With real estate agent activity so high, we are expecting a consequent increase in the number of homes advertised for sale over the coming weeks.
The number of newly advertised properties has been tracking around average levels over February. Over the same period a year ago the number of new listings entering the market across the capital cities was 2.4% higher, however with the surge in real estate agent activity we would expect new listing numbers to surpass what was recorded last year.

The increase in market and industry activity comes as no surprise. Australian households are very sensitive to interest rate movements, given the vast majority of mortgage holders and newly originated mortgages are on variable mortgage rates. The challenge for the Reserve Bank and industry regulators will be to keep a lid on the rate of appreciation in home values while at the same time stimulating housing construction and household spending. The number of dwelling approvals is currently at a record high; the ongoing high level of new housing construction will assist in adding new supply to the housing market as well as support economic growth and labour markets.

On the flipside, higher supply levels may help to slow the rate of capital growth. We have already seen a slowdown in rental appreciation, whether this also translates to a slowdown in the rate of capital gain in the face of lower mortgage rates but higher levels of housing supply is yet to be seen.”

 

 

 

 

15. January 2015 23:26  /  swanvalleyrealtyblog Comments (6)


Its that time of year again in Ellenbrook and surrounds where we get the opportunity to get rid of unwanted goods and avoid time consuming and at times costly trips to the tip. 

For bu;k rubbish collection times in your area click on the City of Swan Website Link


http://www.swan.wa.gov.au/Residents/Waste_and_Recycling_Services/Binverge_collection_dates

 

14. January 2015 18:29  /  swanvalleyrealtyblog Comments (2)


In the Market Watch section of The Sunday Times real estate lift out Terry Ryder, founder of hotspotting.com.au stated that although momentum in WA has cooled, affordable suburbs were the best investment option and that these suburbs are resisting the pattern of market activity tapering off.

Mr Ryder includes the Swan local government area in his list of the strongest markets in Perth. He explains that The City Of Swan is hot due to Urban renewal, government policy and job nodes.

With regards to affordability Ellenbrook still has a median price range of $439,00 which puts in among the most affordable suburbs in Perth.

Source; Sunday Times Jan 11, 2015

9. December 2014 17:21  /  swanvalleyrealtyblog Comments (0)


As outlined in a past post there are a variety of events in Ellenbrook and Aveley hosted by community groups and businesses getting into the spirit of Christmas with Pageants, Concerts, Carols, and Arts and Markets. Now the fantastic residents of Ellenbrook and Aveley are putting on their own shows too!

The poster below gives the addresses of the great residents who have put an effort into spreading some Chrissy Cheer around the neighbourhood.

What a great cheap family night out to map out and drive by these wonderful houses. I’m looking forward to showing my children. My own photos to come…

6. December 2014 00:51  /  swanvalleyrealtyblog Comments (3)


More than a play ground – a Play Space in the new village of Annie’s Landing in Ellenbrook.

Stage 1 of Annie’s Landing District Play Space has been completed. This amazing play space caters to both younger and older children

The play space has been sympathetically designed to make use of its natural bushland setting. A Flying Fox is coming soon.

It is located at the very end of Bandrock Drive in Ellenbrook. Just keep following the signs for the Annie’s Landing display village and you won’t be able to miss it.

 

 

 

 

2. December 2014 19:15  /  swanvalleyrealtyblog Comments (0)


Some great community events have been planned for Ellenbrook this festive season. To get into the spirit of Christmas there will be the Ellenbrook Christmas Pageant, an Arts and Produce Market to grab some Chrissy pressies and food, Carols by Candlelight and a Theater Group Performance. See poster below for details.

1. December 2014 20:57  /  swanvalleyrealtyblog Comments (0)


Just a reminder that Christmas Carols are on this Sunday 7th December in Aveley. The poster below gives further information as to what will happen and what is available on the evening. Looking forward to seeing the big guy in the red suit!