Friday 4 November, 2011
November 2011 Market Outlook
The outlook for Sydney property now looks increasingly positive, with a range of factors bringing added confidence to buyers and fresh impetus to the market.
After remaining flat for a year, interest rates are now on a downward trajectory. The first cut in official interest rates is expected when the Reserve Bank meets on Melbourne Cup day. Lenders are backing rates to fall further in 2012, with most now offering fixed rate loans as much as 1% lower than their variable rate loans. The positive interest rate outlook should provide a major boost for buyers, improving affordability and increasing buying power.
The removal of stamp duty concessions for first home buyers in NSW is also having a significant effect on the market. Many first home buyers have brought forward their purchasing plans in order to get in before the January 1 deadline. Those looking to sell an entry level home should act fast, with strong competition expected in the lead up to Christmas.
Investors looking to expand their portfolios will enjoy excellent conditions in the new year, as competition from first home buyers drops off. All factors now look in favour of landlords, with vacancy rates low, rents increasing, interest rates falling and prices expected to rise.
Affordability has also improved for buyers with Sydney's median house price falling by 1.8% in the twelve months to September. Fresh gains are however predicted with BIS Shrapnel forecasting Sydney's median house will lift by 19.4% to $770,000 over the three years to June 2014.
Forecasters now describe Sydney as having a 'dire shortage' of housing, with the supply of new property falling even further behind demand. This shortage will continue to fuel competition amongst buyers, push up prices for existing properties and ensure Sydney continues to outperform other Australian housing markets.
The Inner West remains one of Sydney's most popular locations amongst buyers, with most suburbs holding on to the strong gains made over recent years. Despite weaker selling conditions over recent months, Sarah Lorden Real Estate has secured a string of excellent results, with a number of properties achieving results far beyond expectations.
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Thursday 15 September, 2011
September 2011 Market Outlook
As we move into property's peak season, stable market conditions are providing the perfect window for those looking to make a move. While opportunities exist for bargain hunting buyers, strong results are also being secured by buyers with well-marketed properties.
Currently Sydney remains one of Australia's best performing real estate markets, with small price gains continuing to be posted. Residex figures show Sydney's median house price rose 1% in the twelve months to July, reaching $674,500. Median unit prices rose 3% to $488,000 over the same period. Most Inner West suburbs have outperformed Sydney's growth rate, with a handful achieving gains of over 10%.
One of the primary factors helping boost prices in Sydney is a large shortage of supply, with construction continuing to lag far behind population growth. The shortage is also pushing rental vacancy rates to near record lows, increasing rents and improving yields for investors.
Interest rates also remain a critical factor and renewed global financial troubles have dramatically changed the market outlook. While borrowers were recently expecting a rate rise, Europe's credit problems mean a sustained period of low interest rates can now be expected. Lenders have already significantly reduced their fixed interest rates in response to the situation and a cut in official interest rates is also likely.
Another major positive for borrowers is renewed competition amongst lenders, with most now offering major discounts on their headline rates. Lower borrowing costs should help increase the purchasing power of buyers and boost their confidence in the months ahead.
The mood amongst buyers appears increasingly positive and in recent weeks Sydney's auction clearance rate has steadily improved to around 60%. Locally we have monitored a notable upswing in the level of buyer activity as we head into spring. Internet viewings have increased and attendances at open house inspections have been strong. High levels of competition have also seen Sarah Lorden Real Estate secure a number of outstanding results at auction.
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Wednesday 10 August, 2011
10 great tips for getting your home ready for sale
With Spring right around the corner, it is a good time to prepare your home to look it's best.
Deciding where to start can often be the most difficult part of preparing your home for sale. Following these ten tips will allow you to turn your home in to a marketable space that will appeal to all buyers.
1. The big clean!
De clutter, declutter, declutter. This does not mean make the room bare, but do your best to extenuated the clean lines of your furniture in the room. Perhaps remove a chair or two, and adopt a minimal approach to table and bench tops. The more space you create the more space buyers feel they are purchasing.
2. Get a professional cleaner to come through and clean your house
These guys have the industrial tools that will do more than a vacuum and some Domestos. Consider washing the front of the house with a pressure washer and clean any high windows and skylights.
3. Tidy the garden
Trimming trees, replanting shrubs, adding mulch and mowing the lawn all help make a home look inviting to the buyer.
4. Perform maintenance
Oil squeaky doors, fix locks, change light bulbs, repair chipped benches and stone work. Think of yourself as a buyer and go through your house and point out anything that you think a buyer would find unappealing or in need of repair.
5. Put double or queen beds in all your bedrooms
Buyers associate a good bedroom by having the ability to fit a double bed in the room. If you have a single bed in a room, it is difficult for buyers to imagine a double bed fitting there. By placing a double bed in all your bedrooms, it gives your home a strong sense of private space.
6. Consider getting in a professional stylist
. Styling is an underrated part of a sale, but a home with furniture is far more appealing than an empty house. Buyers will be able to visualise their couch size or their bed size by comparing it to the furniture they see, this helps to re-enforce their decision to view the property. A good stylist can amaze you with what they can do with space and design. Plus styled homes look fantastic in the photography.
7. Remove pets
The smell of a pet in a home can be off putting, as can seeing half eaten dog food or a dug up garden. While you may love your pet, the buyers may not and it can put them off buying the home. Some people have a fear of dogs and others have cat allergies, frightening your buyers away or making them sick is not a good way to sell your home.
8. Play some music at the open homes
Music is a great welcoming tool and that is why retail stores use it so much. It draws people into your home and allows them to relax a lot more than if there was silence in the home.
9. Display DA plans
If you've thought about a renovation in the past or have had plans drawn up, it might be a good idea to display these at the open homes. They can inform people on the potential of the property if they do not like the current floor plan.
10. Hide your valuables
Whilst theft at an open home is rare, it is better to keep valuable objects out of sight. This technique can also be used with family photographs, the goal is to let the buyers visualise themselves living in the property and sometimes personal photos can hinder this task.
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Tuesday 9 August, 2011
Ferderal Government proposes a new "Green Tax" for homes before their sale or lease
Late last month, the Federal Government announced that they would be listening to the public on the idea of a "green rating" for all Australian homes. Under the scheme, mandatory "green ratings" would be allocated to apartments and houses before they are put up for lease or for sale. This rating would be applicable to both new and old homes and the vendors/landlords would be expected to maintain or improve the "green" rating of the dwelling.
A national report has been drafted detailing four possible versions of auditing a home in NSW. All the audits drafted involve the payment of a financial "tax" payable by the vendor/landlord if they wish to put the property up for sale or for lease. The most expensive of these incorporates a $774 fee for an assessor to perform the audit and an additional $50 if the owner wishes to be present during the assessment. That is a fee of over $800 to assess the homes "green rating."
As can be expected, there is some strong opposition to the Government's proposal. Real Estate Institute of NSW president Wayne Stewart said, "The Government needs to work with consumers to bring about change rather than slap them with what looks like being another tax of up to $800."
The cheapest option would be for the owner to complete a checklist at a cost of $41, a scheme that is already being used in Queensland.
The Government feels that a good green rating could be reflected in an increased value of the property. "Assessing the energy and water efficiency characteristics of a home can help people chose a property that is potentially more comfortable and cheaper to run."
What are your thoughts? Is another tax on housing really the answer to getting us to adopt greener versions of our homes?
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Tuesday 2 August, 2011
Haunted house stories from Balmain
Last month the SMH published an article asking the question, "Would you move into a haunted house." It is an interesting topic for real estate agents because while we don't often know if a house we have for sale or lease is haunted (often we don't want to know), we do go through so many properties that sometimes we experience things that don't seem right or a little unusual. I thought I'd share some experiences from some local agents who've been touched by the paranormal during their years in real estate.
One of the strangest haunted experiences I've heard was at a home in Blacktown by a leasing officer I knew. The property was sitting vacant and he was preparing a condition report (where we assess the property before a new tenant moves in). He was in the kitchen and absent mindedly put his hand on the kitchen bench to support his body, however when he did so, he felt his hand touch someone elses hand, as if someone was standing in the room next to him. The hand he felt quickly slid out from under his hand and when he turned to look he saw nothing there. It would have been a very strange sensation.
In an old home in Balmain East, another leasing officer I knew was sitting on the floor of an upstairs bedroom assessing the carpet for another condition report when she suddenly felt a huge weight on her, as if someone had sat on her back. She immediately felt cold and felt as if she was going to throw up. She got up and left the room. When she looked back into the bedroom she saw what looked like a small grey haze silently floating in the centre of the room. She told me that she couldn't get out of the house fast enough!
We had a property for sale and one of our agents was holding an open house at the property which was vacant and styled. She opened up the upstairs master bedroom which had a book and some iron keys on the bedside table. She then went downstairs, put the flag and the open board out before returning to the master bedroom to find that both the book and the iron keys had moved from the table to be sitting in the middle of the bed. She said that she didn't think too much about it at the time until a couple of opens later the same thing happened again and the front door slammed shut on it's own while she was in the hallway.
The Welcome Hotel has a ghost story about a spirit dog that supposedly visits the pub. It is the same dog that is pictured on the pub's coat of arms. Balmain has many old homes and I'm sure there are a few out there that house some interesting spirit stories. If you have one, post the stories on this blog, we'd love to hear them!
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Thursday 28 July, 2011
Market Outlook August 2011
The Sydney property market looks set for a strong lead into spring with a number of factors working in favour of those getting ready to sell.
One of the biggest factors influencing the property market is the interest rate outlook. Most forecasters now expect official interest rates will remain stable and many including Westpac CEO Gail Kelly have predicted a rate cut before the end of the year. This has helped boost the confidence of buyers and is also allowing borrowers to lock in far lower fixed rates.
During the early part of 2011 property volumes were at extremely high levels, which led to falling auction clearance rates, greater discounting and properties spending longer on the market. However with less new stock coming on over the winter months, we have now begun to see conditions pick up for those selling. Auction clearance rates have nudged higher in recent weeks and competition amongst buyers for available properties has increased.
Affordable homes within Sydney's Inner West are performing particularly well, with buyers keen to gain a foothold in areas close to the CBD. While property in many parts of Sydney has fallen in value during 2011, the Inner West has been a stand-out performer, with most suburbs registering significant gains.
While still below the long-term average, the number of first home buyers has been steadily increasing since the second quarter of 2011. Investors are also playing an increased role in the market, encouraged by higher rents and attractive yields. Rental vacancy rates should remain extremely low in Sydney for the foreseeable future, with the supply of new housing continuing to fall further behind population growth. As well as pushing up rental prices, the supply shortage is having a positive impact on the prices for existing homes.
While buyers remain selective, we are starting to witness a pick up in interest across all price points, with stronger open house attendances in recent weeks and a number of excellent sales results achieved. With the start of spring typically providing a large boost to buyer numbers, conditions for sellers should be the best we have seen since the beginning of the year.
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Tuesday 26 July, 2011
Amazing Office Designs
If you've seen the movie "Office Space" you'd get a sense at how tedious working in an office can be. But for some people, the office is a second home... so why not make it as comfortable as possible? In this post we'll see some amazing office designs, built to ignite the architectural senses.
TBWA Hakuhodo Offices
The problem with the office is that you can be couped up inside when it's such a beautiful day outside. A Tokoyo Ad Agency thought about this and decided to bring the outside inside. Complete with garden, grass lawn and driving range, this ex-bowling alley has been converted to make the indoor environment replicate the outdoor.
Penthouse Offices by Benthem Crouwel Architects
Hovering above the Las Palmas building in Rotterdam, Netherlands, the Penthouse Offices showcase a large curved glass window facing out to the river. The interior is furnished with wood furniture and sleek white walls that create an open space, allowing for a smooth enclosed design.
Manchester Square Interior
The goal by SHH was to make this office feel more like a gentlemen's club. Spanning five stories in a Georgian townhouse in London's West End, these offices are a mixture of work and play. The furniture has been designed for comfort while the interior still attempts to hold faithful a mixture of Victorian and contemporary elements.
White Mountain Office
With a look straight from a James Bond movie, this spectacular office sits buried beneath the city of Stockholm. Once used as an anti-atomic bomb shelter, the space has been expertly converted to house one of Sweden's top ISP companies. Complete with a floating conference room, a secret stone entrance and the ability to protect whoever's inside from nuclear fallout, the White Mountain office would easily be on the property shopping list of any would-be Bond villain!
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Tuesday 12 July, 2011
Will housing affordability be affected by the Carbon Tax?
The deadline date for the introduction of the Carbon Dioxide Tax is scheduled for July 2012, up until that time there will be much speculating on what the impending tax will do to the housing market. The majority of economists agree that the Cardon Tax will lead to a 0.7 per cent increase to inflation which will undoubtedly catch the eye of the RBA, who would consider raising interest rates to combat the rise. The National Australia Bank is forecasting two rate rises in the next year, one in late 2011 and one in May 2012 just before the Carbon Tax is brought in. While an initial 0.7 per cent inflation rise is considered a minimal impact, some economists like JPMorgan Stephen Walters believe there may be unforeseen economic aftershocks once the tax is introduced: "If we see electricity prices go up by 5 per cent rather than 3 per cent forecast, the unions are going to start to push for higher wages in addition to the compensation on offers. That is a clear second-round effect and that is when it becomes material."
The housing sector too is worried about how the Carbon Dioxide Tax will effect housing affordability. The Housing Industry Association - a body representing builders and suppliers of building products is arguing that the Carbon Tax will add an additional $5000 to $6000 to the cost of a new house and land package. This cost will of course be passed on to the customer which has the further potential to discourage home buyers from building their new home. "Increases in the cost of construction materials including bricks, steel and aluminium will be simply passed on to purchasers, pushing the price of new housing higher," REINSW President Wayne Stewart said, "the knock-on effect of this could see the median Sydney house pushed out of the reach of many prospective home buyers."
However, not all economists think that housing will be adversely affected by the Carbon Tax. Tony Wood of The Grattan Institute says, "Whenever industry is given the incentive, it finds ways to do things that cost less than any economist can ever think of." Some industries like aluminum, steel and cement, he argues, will be compensated under the current Carbon Tax scheme. "They should not be allowed just to put their prices up and pass through a carbon price they're not paying for."
What are your thoughts? Do you think the Carbon Tax will directly impact and hurt housing affordability in Australia? Put your comments below.
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Tuesday 5 July, 2011
Support our team in the Oxfam Trailwalk!
Picture this challenge: you must run continuously for 17 hours over rugged, precarious and mountainous terrain to reach your goal 100 kilometres away. Could you do it?
That is what our team at
aboutlife...100 are attempting to do to raise funds and awareness in the fight against global poverty. The four person team, which includes our super Sales Agent Lynsey Kemp, our sensational Property Management Administrator Mary Tuka, Terry Tyrell Business Development Manager at Russell Investments and Joel Aurisch part owner of
AboutLife Supermarket, are participating in the Oxfam Trailwalker.
It is a 100km track that runs from the Hawkesbury district to Sydney through dense bushland and hilly coastal terrain. It runs from 26th August to 28th August and is an extremely gruelling track even for walkers!
And our team is running it!
And they need your donations!
Help support the team as they train their guts out for one of the toughest tests this year. The goal for the team is to raise $10,000 for Oxfam which will aid the organisation by contributing to long-term development and positive change in needy communities around the globe. To show your support you can donate money to the
aboutlife...100 team or join the Sarah Lorden Real Estate team at our fundraising Oxfam stall on Saturday 16th July at Loyalty Square, Balmain.
We will be holding a BBQ at the Oxfam stall with sausage sandwiches dripping in delicious fat, just to tempt the
aboutlife...100 team and their insanely fit members!
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Tuesday 21 June, 2011
The Man-Cave
The Den, the Cubby, call it what you want, over the last few years we have seen the popularity of these
"havens of manliness" grow and grow. Once upon a time these
venues of virility went by the name of
the shed or t
he garage, a place where men could be men and pursue their passions. Some men will claim that it is a place for them to take some time out from the "ol ball-and-chain", others will say that it is a place for him and his buddies to relax in, but really its just a place where boys can play with their toys.
And what toys some boys have! In this post is just a small collection of some fantastic Temples to Manliness!
The Sports Man-Cave
Sport is a way of life for a man. This is the perfect place to relax and watch the game.... or to slam a beer down before crushing the can on your forhead while you arm wrestle a crocodile for the last slice of pizza!
The Golf Man-Cave
There are many women out there who curse the day their husband took up golf. It was the day they became known as a "golf widow" but with the Golf Man-Cave, the hubby will always be at home, slicing shots into computer generated woods and putting around the vacuum cleaner to win the Avoid Mowing The Lawn PGA!
The Nightclub Man-Cave
What man hasn't wanted to turn his humble garage into an asylum for alcohol? This man-cave is worth charging an entry fee for!
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Last month the SMH published an article asking the question, "Would you move into a haunted house." It is an interesting topic for real estate agents because while we don't often know if a house we have for sale or lease is haunted (often we don't want to know), we do go through so many properties that sometimes we experience things that don't seem right or a little unusual. I thought I'd share some experiences from some local agents who've been touched by the paranormal during their years in real estate.
Posted by paul henry on 9/09/2011 3:46:39 PM