Saturday, April 21, 2018

CoreLogic Quarterly Auction Market Review March 2018 | Sydney

Clearance rates increased across all but two capital cities over the March quarter, with Sydney recording the largest increase, up from 57.7 per cent to 63.6 per cent.

Perth and Tasmania were the only areas where clearance rates fell, with Perth down -5.0 per cent and Tasmania -6.4 per cent across a lower volume of auctions over the quarter. Sydney Bridge]

Melbourne recorded the highest clearance rate at 68.4 per cent, up from 68.1 per cent the previous quarter, followed by Canberra at 67.9 per cent.

Although the combined capital city clearance rate increased over the March quarter, if we compare the latest figures to March 2017, the clearance rate has fallen 10.2 per cent, while auction volumes have increased by 1,460 across the combined capital cities.

Auction volumes fell over the March quarter which is expected given the auction market doesn’t usually pick up until early February, although the week ending 25th March recorded the highest auction volumes on record with 3,990 homes taken to auction across the combined capital cities.

Melbourne was the busiest auction market with 9,488 homes taken to auction over the quarter, followed by Sydney with 7,755 scheduled auctions.

Across the smaller auction markets, Brisbane was host to the highest volume of auctions over the quarter (1,247), followed by Adelaide (961) and Canberra (808).

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Weekly clearance rate and volume of auctions, combined capital cities

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Capital city key statistics

Capital City Key Statistics

Highest auction volumes (by suburb)

Based on total auctions held across the suburb over the reporting period

Melbourne: Reservoir 149
Sydney: Randwick 128
Brisbane: Sunnybank Hills 28
Canberra: Watson & Curtin 22
Adelaide: Prospect 23
Perth: Gosnells 16

Highest clearance rate (by suburb)

Clearance rates are calculated when there has been at least 20 auction results reported over the period

Melbourne: Carrum Downs 95.2% (captured results: 21, scheduled auctions: 21, number sold: 20)
Adelaide: Prospect 70.0% (captured results: 20, scheduled auctions: 23, number sold: 14)
Sydney: Northbridge 90.5% (captured results: 21, scheduled auctions: 25, number sold: 19)
Canberra: Watson 81.8% (captured results: 22, scheduled auctions: 22, number sold: 18)
Brisbane: Coorparoo 55.0% (captured results: 20, scheduled auctions: 23, number sold: 11)

Capital city sub-regions (Sydney)

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Sydney sub-region summary

Across Sydney’s sub-regions, the Eastern Suburbs was the only region to see an increase in auction volumes over the quarter with an additional 81 homes taken to auction, returning the strongest clearance rate of all 15 sub-regions (75.0 per cent). Hornsby

North Sydney and Hornsby was the busiest sub-region this quarter with 1,259 homes taken to auction, followed by the Eastern Suburbs, while the quietest sub-regions were the Outer West and Blue Mountains (63) and Outer South West (82).

Clearance rates increased across 11 of the 15 sub-regions over the March quarter, while remaining unchanged across the Central Coast, and falling across Ryde (-3.8 per cent), Blacktown (-3.4 per cent) and Baulkham Hills and Hawkesbury (-1.8 per cent).

Overall, the clearance rate for Sydney increased from 57.7 per cent to 63.6 per cent over the March quarter, while there were 3,497 fewer homes taken to auction across the city.

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Suburb results (city by city)

Includes suburbs where at least 20 auction results were reported over the three month period noting that clearance rates are calculated based on total auction results collected rather than total auctions held.

Suburb (Sydney) Clearance

rate (Mar Q)

Total

auctions (Mar Q)

Alexandria 61.8% 37
Annandale 74.1% 28
Ashfield 64.1% 40
Auburn 50.0% 24
Avalon Beach 75.0% 34
Balgowlah 77.5% 45
Balmain 72.7% 39
Bankstown 55.0% 21
Baulkham Hills 55.3% 41
Beecroft 69.0% 31
Bellevue Hill 78.3% 54
Bexley 48.5% 38
Blacktown 40.5% 42
Bondi 78.6% 53
Bondi Beach 81.7% 70
Bondi Junction 82.5% 50
Botany 69.7% 38
Brighton-Le-Sands 52.4% 21
Bronte 87.2% 45
Burwood 79.2% 27
Cammeray 76.5% 37
Camperdown 56.7% 30
Caringbah 42.9% 26
Caringbah South 42.9% 37
Carlingford 56.3% 35
Castle Hill 50.8% 66
Chatswood 54.5% 62
Cherrybrook 44.4% 30
Clovelly 90.0% 20
Concord 65.0% 23
Coogee 69.0% 63
Cremorne 65.9% 45
Cronulla 51.9% 60
Crows Nest 71.4% 32
Darling Point 72.0% 30
Darlinghurst 63.6% 38

 

North Bondi 86.4% 51
North Ryde 40.0% 28
North Sydney 61.8% 39
Northbridge 90.5% 25
Oatley 72.7% 22
Paddington 76.2% 93
Padstow 56.5% 23
Panania 57.1% 22
Parramatta 47.8% 27
Petersham 81.0% 24
Potts Point 59.3% 32
Pymble 63.0% 51
Pyrmont 57.1% 27
Queens Park 75.0% 21
Queenscliff 69.6% 26
Randwick 82.8% 128
Redfern 73.8% 43
Revesby 79.2% 30
Rose Bay 78.3% 51
Rosebery 70.8% 26
Roseville 64.3% 34
Rozelle 81.8% 28
Ryde 61.8% 47
Sans Souci 52.9% 40
St Ives 67.1% 89
Strathfield 73.7% 41
Summer Hill 73.1% 28
Surry Hills 83.9% 93
Terrigal 61.9% 25
Turramurra 61.0% 49
Vaucluse 84.4% 40
Wahroonga 57.9% 51
Waterloo 62.5% 33
Waverley 81.8% 24
West Pymble 72.0% 29
Wollstonecraft 78.1% 33
Woollahra 74.5% 54

 

Dee Why 62.5% 54
Double Bay 65.6% 36
Drummoyne 65.2% 32
Dulwich Hill 75.0% 41
Earlwood 51.7% 33
Eastwood 45.2% 50
Elizabeth Bay 84.6% 29
Engadine 40.9% 26
Epping 59.2% 56
Erskineville 87.5% 32
Fairlight 85.7% 30
Frenchs Forest 81.8% 25
Freshwater 77.4% 33
Gladesville 62.5% 25
Glebe 80.0% 22
Gordon 77.8% 32
Greenacre 77.4% 35
Guildford 54.5% 22
Hunters Hill 52.2% 26
Hurstville 70.0% 25
Jannali 80.0% 22
Kellyville 57.6% 40
Kensington 67.7% 33
Kingsford 87.5% 28
Lane Cove 65.8% 45
Lane Cove North 67.6% 41
Leichhardt 63.5% 56
Lilyfield 65.2% 24
Lindfield 40.0% 28
Liverpool 40.9% 27
Manly 66.0% 59
Manly Vale 70.8% 26
Maroubra 57.1% 90
Marrickville 76.0% 53
Mascot 59.3% 35
Matraville 64.3% 29
Merrylands 50.0% 28
Miranda 58.6% 34
Mosman 83.3% 99
Naremburn 78.1% 34
Narrabeen 70.8% 25
Neutral Bay 81.0% 45
Newport 50.0% 30
Newtown 79.5% 43
Metropole Property Home Buyers Enquiry

This article first appeared on Sydney Buyers Agent



from Property UpdateProperty Update https://propertyupdate.com.au/corelogic-quarterly-auction-market-review-march-2018-sydney/

Does building a granny flat make good investment sense?

Does building a granny flat make investment sense?

It’s now easier to build a granny flat, with some councils allowing these structures to be built on the back of suburban homes and many builders are promoting this concept as a good investment. Does building a granny flat make investment sense

Recently a client asked whether he should buy a property and build a granny flat to increase his cash flow.

Obviously they’re popular.

The NSW Department of Planning and Environment information shows that 4,818 new granny flats were built in New South Wales in 2014.

Nearly double the 2,867 built in 2013 and three times more than the 1,500 which were built in 2010.

The rise in popularity of granny flats across Australia can be attributed in part due to state-level legislative changes regarding secondary dwellings which aim to boost housing affordability in capital city areas and each state or territory provides their own legislative requirements, including the land and plot sizes of a secondary dwelling or granny flat.

But does their increasing popularity make them a good investment?

I could have given our client a simple answer:

Granny Flats are investments in inferior locations, chosen by poorly informed investors which add little value and attract bad tenants.

Instead I gave him the pros and cons:

The Benefits of Building a Granny Flat

  1. Extra rental income – putting a granny flat in your backyard or at the back of your investment property can be another source of income  
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  2. Depreciation – renting out a granny flat gives you extra claimables on your depreciation schedule
  3. Increasing the value of your property – while building a granny flat may increase the value of your property, you’ll probably find that it won’t increase it as much as the cost of construction
  4. Spreading your income risk – if you just have one investment property and it is vacant then you have no money coming in, however with a granny flat it is unlikely both properties will be vacant at the same time
  5. Suits your family’s needs – Building a granny flat at the back of your home may be suitable accommodation for your teenage children, your granny or even your mother- in-law.

The Risks when building a Granny Flat

1. It could cost more than you expect

Just like any renovation or construction project, there are likely to be cost overruns when building your granny flat.

2. Not all councils allow granny flats The Risks when building a Granny Flat

While it’s easier to get council approval to build a granny flat nowadays, make sure you cross all you i’s and dot all your t’s.

Check things like the size of the block required, access needed and how close it can be built to a fence.

3. In general those councils that allow granny flats are not in high capital growth areas

Often you’ll have to use this strategy in outer and lower socio economic areas – locations that you’ll find tend to deliver below average capital growth.

4. The cost of constructing the granny flat doesn’t always add sufficient value to the property 

Often you’ll spend $100- $120,000 on the granny flat but the banks will only increase the value of your property by $70-$80,000.

In other words you’re overcapitalising.

5. You’ll reduce your resale and rental market potential

This is because the end product has a small market with minimal demand from owner-occupiers and tenants.

Most owner-occupiers are not keen to have a granny flat in their backyard, preferring all the accommodation under the main roof.

Your property will mainly appeal to investors.You’ll experience longer vacancy periods

And most tenants don’t want another tenant in their back yard or the noise and nuisance of an adjoining property.

6. You’ll experience longer vacancy periods

Your pool of tenants will be restricted for both properties, so you’ll have less choice in your selection, experience longer vacancy periods and it’s likely you will have to deal with two sets of lower socio-economic tenants instead of one average socio-economic family.

7. You won’t be able to subdivide your property into two titles.

Put simply:

While you may increase your rent and turn your property investment from negatively geared to giving some positive cash flow, for mine if you’ve got $100,000 or so to spend on a granny flat you could generate a much better return by putting it towards an “investment grade” property.



from Property UpdateProperty Update https://propertyupdate.com.au/building-granny-flat-make-good-investment-sense/

Doing the remarkable | Jim Rohn

When it comes to meeting and conquering the negativity in your life, here is a key question: what can you do, starting today, that will make a difference? 

What can you do during economic chaos?

What can you do when everything has gone wrong?

What can you do when you’ve run out of money, when you don’t feel well and it’s all gone sour?

What can you do?

Let me give you the broad answer first. Jim Rohn_2015

You can do the most remarkable things, no matter what happens.

People can do incredible things, unbelievable things, despite the most impossible or disastrous circumstances.

Here is why humans can do remarkable things:

Because they are remarkable.

Humans are different than any other creation.

When a dog starts with weeds, he winds up with weeds.

And the reason is because he’s a dog.

But that’s not true with human beings.

Humans can turn weeds into gardens.

Humans can turn nothing into something, pennies into fortune, and disaster into success.

And the reason they can do such remarkable things is because they are remarkable.38747297_l

Try reaching down inside of yourself; you’ll come up with some more of those remarkable human gifts.

They’re there, waiting to be discovered and employed.

With those gifts, you can change anything for yourself that you wish to change.

And I challenge you to do that because you can change.

If you don’t like how something is going for you, change it.

If something isn’t enough, change it.

If something doesn’t suit you; change it.

If something doesn’t please you, change it.

You don’t ever have to be the same after today.

If you don’t like your present address change it — you’re not a tree!

If there is one thing to get excited about, it’s your ability to make yourself do the necessary things, to get a desired result, to turn the negative into success.

That’s true excitement.

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from Property UpdateProperty Update https://propertyupdate.com.au/remarkable/

Friday, April 20, 2018

My Property Predictions for 2030 [Video]

How will Australia’s property markets change over the next decade?

Where will our property markets be in 10 years’ time?

What will they look like and what are the major factors that affect our property markets over that time?

Now they are some good questions – aren’t they?

Watch this video as Ahmad Imam and I discuss what we expect to happen to Australian property in the next decade

Click here to view the video on YouTube.

You’ll see us discuss...

  1. The major trends that will affect our property markets over the next decade including.
  • Demographic trends city family urban suburb
    • Population growth – household formation
    • How we want to live
    • Where we want to live
  • Economic trends
    • We’re transitioning from a manufacturing country and a resources led economy to an economy based on service industries
    • What will this do to where job growth will occur – wages growth will occur – obviously affect housing
  1. How we’re going to invest in a lower inflationary and wages growth environment
  2. How the forecast strong population growth will affect us – it’s not all good news – there certainly are some challenges ahead
  • Population growth and the wealth of the nation will underpin property values – we need both.
  • Over the year to September 2017 the annual growth in Australia’s estimated resident population picked up to +395,600. This is the largest annual increase since 2013 in absolute terms, if not in percentage terms. 25221363 L
  • More than half of this growth is due to immigration – Australia’s permanent migrant intake is capped at around 200,000 per annum, but the overall pace of net overseas migration was faster than this, partly accounted for by international students.
  • The estimated rate of population increase through net overseas migration is a bit faster than might be implied by the issuance of permanent residency visas, with the growth international students accounting for some of the difference. Where all these people are moving to
  1. Why population growth alone won’t create economic growth, and what is really needed.
  2. A big demographic trend that will shape our property markets, but doesn’t seem to be mentioned much.
  • Our ageing population means we have more one and 2 people households, meaning the type of property that will be in continuous strong Economic growthdemand will be different in the future with more people trading backyards for courtyards and balconies. More single older people, more DINK’s, more empty nesters, more young singles getting married later.
  • Smaller average household size means we need more dwellings for the same number of people
  1. Where the best investment opportunities will be over the next decade and why. – You’ll have to watch the video to get my recommendations

Wealth Retreat 2018

We also discuss Wealth Retreat 2018 which be held on the Gold Coast on June 9th to 13th. 

Wealth Retreat 2018 - General

Click here to find out more and register your interest

By the way…

  • Wealth Retreat is not really a property seminar, even though we do spend a lot of time talking about property.
  • Wealth Retreat is about creating lifetime wealth and leaving a legacy.
  • It is aimed at already successful property investors, business people and entrepreneurs.
  • We have Australia’s leading faculty of property, tax, finance, financial planning economic and business growth experts.
  • I’ve found many of the attendees from previous years felt isolated in their wealth creation journey and by joining us they suddenly developed a peer group of like-minded people.
  • Find out more at WealthRetreat.com.au image how you will be different after 5 days immersed with a room full of successful movers and shakers.


from Property UpdateProperty Update https://propertyupdate.com.au/australian-property-predictions-for-2030/

Weekend reads – Must read articles from the last week

Wednesday, April 18, 2018

Ask the Expert [Video] – Property & Capital Gains Tax

Wouldn’t it be great if you could talk to a finance specialist about capital gains tax for your property?

Watch as Ken Raiss and I discuss how to treat an inherited property investment for Capital Gains Tax.

This week’s question: 

CGT (Capital Gains Tax) on Stacked Coins Isolated White Backgrou

My grandmother died in the early 90’s and left her home to my mother, who kept it as a property investment ever since.

I’ve inherited it from my mother, who died earlier this year, how is this property treated for capital gains tax?

Thanks in advance.

Edith Gold

YOU MAY ALSO BE INTERESTED IN:

ASK THE EXPERT [VIDEO] – PROPERTY & CAPITAL GAINS TAX

ASK MICHAEL ANYTHING [VIDEO] – 1 BEDROOM APARTMENT VS. LOCATION

ASK MICHAEL ANYTHING [VIDEO] – WHAT ARE THE IMPLICATIONS FOR BEGINNING INVESTORS?

ASK MICHAEL ANYTHING [VIDEO] – WHAT’S IN STORE FOR THE SYDNEY & MELBOURNE PROPERTY MARKETS?

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from Property UpdateProperty Update https://propertyupdate.com.au/ask-expert-video-property-capital-gains-tax/

Quotes by Successful People to Inspire You

One thing many of the world’s most successful people have in common is their ability to inspire others. 

I hope these motivational quotes inspire you on your journey to achieving success.

1. “The more you praise and celebrate your life the more there is in life to celebrate” – Oprah Winfrey

2. “You must be the change you wish to see in the world.” — Mahatma Gandhi

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4. “Courage is grace under pressure.” — Ernest Hemingway

5. “Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.” — Albert Einstein

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7. “It does not matter how slowly you go, so long as you do not stop.” — Confucius

8. “Someone is sitting in the shade today because someone planted a tree a long time ago.” — Warren Buffett

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10. “You only live once, but if you do it right, once is enough.” — Mae West

11. “Once you choose hope, anything’s possible.” — Christopher Reeve

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13. “The best and most beautiful things in the world cannot be seen or even touched — they must be felt with the heart.” — Helen Keller

14. “Live as if you were to die tomorrow. Learn as if you were to live forever.” — Mahatma Gandhi

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16. “When you cease to dream you cease to live.” — Malcolm Forbes

17. “May you live every day of your life.” — Jonathan Swift

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19. “If you’re not stubborn, you’ll give up on experiments too soon. And if you’re not flexible, you’ll pound your head against the wall and you won’t see a different solution to a problem you’re trying to solve.” — Jeff Bezos

20. “In order to be irreplaceable one must always be different.” — Coco Chanel

Bonus for the week:

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from Property UpdateProperty Update https://propertyupdate.com.au/inspirational-quotes-success-people/