News

Select a news topic from the list below, then select a news article to read.
 

Why not sell the house you don’t want and buy the house you do want and wait for your new home to go up in value.

The real estate market is not a single entity. It is millions of people making individual decisions based on their personal needs and opinions.

Current real estate trends vary wildly from state to state, city to city and even suburb to suburb, making the real estate market virtually impossible to predict with any accuracy.

When deciding to sell, many use their personal opinion of the real estate market as the basis for that decision.…

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The Federal budget always seems to throw up plenty to discuss. The media understandably pounce on the headline elements of the budget.

Sometimes budget measures which are the least discussed can be the most intriguing.

The Government has upgraded the ability of the Australian Prudential Regulation Authority (APRA) to curb excessive and poor lending into the housing sector. APRA now has the authority to limit bank lending on a regional basis and even postcode basis, if need be.

The Australian economy is a tale of depression and boom. The Reserve Bank of Australia (RBA) would probably like to cut interest…

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Here’s a bold prediction for you…
The next eight weeks may be the BEST time to sell in 2017

Why?
Well, it’s simple – and it’s really a matter of common sense. Interest rates are at an all-time low, demand is well on the rise, but many property owners are waiting to put their properties on the market. That means that there’s a shortage now. Stock levels are down around 30%!

And a shortage means that…
Premium prices are being offered for those properties that are for sale.

Right now, we are selling many properties for prices well above the owners’ expectations.…

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Before employing an agent to market and sell your home, ensure you are clear about what you expect in an agent. Real estate agents often spruik their clearance rates or their profile in the marketplace.

The true determinant of a good agent is their ability to deliver a premium price – in a risk-free and stress-free manner.

You will only sell your property once. Therefore, it is crucial that you get the right price when you go to market.

Agents that constantly focus on getting the property ‘sold’ as opposed to achieving you the ‘best possible price’ are signalling their…

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Unlike an agent, an independent valuer does not stand to gain financially from an inflated price.

The endowment effect is a well-known economic hypothesis where people ascribe more value to things merely because they own them. The stronger the personal and emotional connection, the higher is the perceived value.

Owning a home is a very personal and emotional experience. Strong connections can form between individuals and their houses. As a family grows, intensely personal experiences turn a house into a family home and the emotional connection continues to grow.

Harvard professor of business, Dr Max Bazerman (1999), suggests that home…

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When negotiating commission rates with a real estate agent, be very careful about incentive schemes, particularly in rising markets. On the surface, incentive schemes seem sensible enough – identify fundamental market price and offer the agent an incentive above that.
 
Agents call incentive schemes ‘kickers’. It’s common for kickers to be 10% to 20% above the perceived market value. The owner pays the agreed base commission rate PLUS the kicker!
 
As an example,  if you have a property that you feel is worth $1 million, an agent may agree to a lower commission rate at $1 million but a higher…

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Winding back off-the-plan (OTP) stamp duty concessions by the Victoria State Government is likely to have “unintended market consequences for purchasers and renters alike”, according to property advisory Charter Keck.

“Investors buying an OTP apartment in Melbourne will face an increased impost of $23,000-$29,000 for apartments priced from $500,000 to $600,000 from July 1 which represents a near 12 times increase”, Charter Keck’s analyst Robert Papaleo says.

But first-home buyers purchasing an OTP apartment will be $13,000 better off than their counterparts in Sydney or Brisbane under the changes.

“Most owner-occupier purchasers of OTP apartments in Melbourne will also still…

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Increasing land supply won’t fix all the affordability issues in our biggest cities but it may be part of the solution.
 
The latest data on residential land supply indicates that housing lots are being sold as fast as they’re being produced in Melbourne and Sydney.
 
The new State of the Land report published by the Urban Land Development Institute found that turnover is so fast that Melbourne and Sydney have barely a month’s worth of stock available at one time.
 
Significantly perhaps, Melbourne has much cheaper prices than Sydney. The median price for a residential lot in Melbourne last year…

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Constant predictions of an impending housing crash by many experts, has done little to halt the market from reaching new highs.

Melbourne’s median house price has surged past $800,000 for the first time. The median price increase for the first quarter of 2017 was 7.6 per cent, which has taken the median housing price to a record $826,000. This is an increase of $55,000 on the December figures.

Record low interest rates is one of many factors that has contributed to strong buyer demand. When you combine this with low housing stock levels, it was inevitable that prices would…

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The property market is always susceptible to ‘disruptive’ forces of one kind or another.

The last two decades has seen constant digital disruption as websites and databases decimated print. The digital disruption changed the way real estate is purchased and sold forever more.

As baby boomers reach retirement, their changing property needs will disrupt the market. Disrupt should not be construed as negative. Disruption simply means to significantly alter the status quo.

Baby boomers are a demographic born between 1946 and 1964, as defined by the ABS. Given society experienced a baby boom in the past, it is understandable that…

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