Tag Archives: price

Prices are set to cool across Australia

Image result for property Prices are set to cool across AustraliaAustralians looking to buy a house in the near future can breathe a sigh of relief. According to recent findings, house prices in Australia’s property hotspots should soon stabilise after the last few years of intense momentum.

Housing values in Australia have been soaring over the past year, with the combined capital cities recording an 11.3 per cent increase in the 12 months to September, according to CoreLogic RP Data.

Unsurprisingly, this has been primarily thanks to Sydney and Melbourne. The Housing Outlook Report from QBE outlines that both these cities experienced respective median house price increases of 56 per cent and 33 per cent between June 2012 and June 2015.

These are immense figures, and has made it difficult for some house hunters to buy a home in these popular locations, even when accommodated by record low interest rates.

Dousing the fire

Fortunately, things are set to change dramatically. The report predicts that housing prices could cool significantly in the next few years. For instance, the median house price in Sydney and Melbourne, experienced respective increases of 22.3 and 15.7 per cent this year – a stunning result. However, these growth figures are forecast to drop sharply to 7.3 per cent and 4.9 per cent.

This can be attributed to the Australian Prudential Regulation Authority pressuring banks to curb loaning to investors. According to the QBE release, investment finance makes up half of all residential home loans. Squeezing some of these buyers out has lowered real estate demand and in turn, market heat.

House prices are predicted to stabilise even more in 2017 and 2018, with Sydney’s median house price forecast to actually decrease. This will help to correct the dropping affordability of housing in these regions.

Whether you’re looking at homes for sale today or a few years down the road, always have an experienced real estate agent by your side to help you navigate these uncertain waters.

What will add the most value to my home?

What-will-add-the-most-value-to-my-homeProviding a home for yourself and your family will undoubtedly involve significant expenditure throughout your life, but when the time comes to sell up and move on, you want to make sure that you get the best value possible. After all, this is somewhere full of memories and experiences, not to mention an asset you invested thousands in over the years. Renovations and cosmetic improvements offer the greatest opportunities to add value to your home. However, in the world of selling houses, not all upgrades are created equal. Some can increase the chances of a sale, but some might make it more difficult. More often than not you aren’t willing to drop enormous sums of money on serious structural renovations, but a few carefully chosen upgrades can improve the chances of a successful sale later on. But how do you choose between renovating one room over the other? Kitchens are often seen as the showpiece of the home It can be very tempting to pour all your resources into making one particular room spectacular, but simple cosmetic changes like a lick of paint on the walls, updated appliances or new tiles and countertops might provide a more profitable sale than fullscale renovations. Also think about bathrooms, living spaces like lounge rooms or outdoor eating areas, or even painting the exterior. Certain projects add more resale value than others. Investigating comparable houses in your neighbourhood, checking property data on your particular suburb or region and consulting with a real estate agent will help you get a clear idea about where your money will go the furthest. It’s all about balancing the price of the upgrades with the actual value of your home, and trying not to overcapitalise. Figuring out your target market is a big point to note. For example, a young family might want more open living space and a fenced backyard, compared to retirees who might require fewer rooms, manageable stairways and more storage. Once you understand what areas your target market places value in, adjusting your house to meet those needs becomes more straightforward.

What’s the difference between an appraisal and a valuation?

What-s-the-difference-between-an-appraisal-and-a-valuationWhen you’re in the process of selling a house, you want everything to be completed as soon as possible – nobody likes ongoing stress, after all. However, there are some areas where it pays to be thorough and take your time, so you don’t get surprised when you receive offers – that’s the valuation, which is important to differentiate from an appraisal.

Aren’t they just the same thing?

Not at all! While valuations and appraisals perform similar functions, they have very different weightings when it comes to your home. A valuation is a definitive value put upon your home, while an appraisal is more of a general outline of where you can expect people to offer. An appraisal has no legal standing, while a valuation absolutely does. Think of an appraisal as guidelines set out by a friend, while the valuation is the hard line of the law.

How do I get one or the other done to my home?

A valuation has to be completed by a qualified valuer, and can be a complex process – location, structural integrity, zoning, features and a variety of other factors all have to be taken into account to give a full and accurate value of your property. An appraisal can be undertaken by most real estate agents, and is not as lengthy a process, but gives you a ‘ballpark’ figure on how much the house is worth.

So how do I choose which to get?

Generally, a valuation is used when you’re settling on a home sale, perhaps measuring equity against your borrowings or gauging the estate of someone who has passed away – situations in which you’ll need an exact figure. An appraisal would be used more often early in the sale process, when you want to get a vague idea of how much you stand to make or lose by selling your home.

First Home Buyers Get a Jump on Spring

With signs that first home buyers are springing into action, even though in most states they are facing reducing government assistance, First National Real Estate offers some helpful advice for those entering the market, saying research is critical.

Given the current buyer’s market, first home buyers need to take the time they need to do the research required to ensure they buy the best property they can for their hard-earned dollars.

The following tips will help maximise chances of success.

When looking for a property set a price range and stick to it and consider location and condition of the property. Is it close to schools, transport and amenities and does it need major repairs?  Have you budgeted for any necessary repairs?

To save a deposit for a property, remember it is all about discipline.  Cater for emergencies and capitalize on all government incentive and assistance programs.  Establish a budget and a timeline and monitor and evaluate as you go, making any necessary adjustments.

For securing finance, do the research and make sure you understand all the options available to you.  And don’t get too attached to one property, there are plenty more on the market.

Once you have found your property and you are paying the mortgage, make fortnightly payments which could save you thousands in the long run.  And make sure you are prepared for monthly repayments to go up and down in response to rate fluctuations.

The last piece of advice, and the best, is to seek the assistance of an expert who has good local knowledge and has a trustworthy and reliable reputation such as First National Real Estate agents who are renowned for putting their customers first which is why they continue to grow at a time when many others are scaling back.

Top End Challenging

Buyers are cautious & certainly price-sensitive

Times are good for buyers at the top end.

This is where prices have fallen further and faster than the wider market. However, owners with high price expectations are reducing their expectations significantly in order to make a sale and move on.

Instead of traditional high exposure marketing campaigns, a trend towards properties being listed quietly has recently emerged in capital city markets.

Owners fearing that a ‘no sale’ campaign might injure their chances of achieving the dream price have been reluctant to promote widely. However, despite weak auction clearance rates, properties in the upper ranges are still selling strongly post-auction, their marketing ultimately having generated the necessary enquiry.

While buyers are cautious and certainly price-sensitive, it’s tough selling a secret and statistics show that properties marketed by auction continue to achieve a sale in fewer days on the market.

With interest rates falling and the outlook positive, activity levels are anticipated to improve in 2012, although the very high prices of the past are unlikely to return quickly.