A p r i l
M A R K E T
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P U L S E
C21
PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Chris Gray Tim Lawless YourPorter Cover Guard Insurance REI Super Home Beautiful
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia
WELCOME TO THE
April 2022
ISSUE OF
C21 MARKET PULSE
(02) 8295 0600
DISCLAIMER We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all liability in respect of any errors, inaccuracies or misstatements contained herein. Prospective buyers and sellers should make their own enquiries to verify the information contained herein. All information contained in the CENTURY 21 Australia Pty Ltd website is provided as a convenience to clients. All links to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability. For more information on our Privacy Policy please refer to: www.century21.com.au/privacy
Cover image: Don Kaveen on Unsplash
C O N T E N T S A pril
TAX TIPS
02
2 0 2 2
LANDLORD INSURANCE
Do you really want to minimise your tax?
Understanding Landlord Insurance. Are you
Your Empire CEO, Chris Gray
fully covered?
08
Cover Guard Insurance
PROPERTY MARKET UPDATE
04 FEDERAL BUDGET
Australia's smallest cities drive growth in national housing values as Sydney and Melbourne decline
2022-23 Federal Budget insights for your super
CoreLogic Head of Research, Tim Lawless
and real estate
11
REI Super
MOVING HOUSE
07 INTERIOR TRENDS
Moving is a great time to look for a better energy deal.
Channel Autumn/winter with these cosy
YourPorter
interior trends Home Beautiful
C21 MARKET PULSE
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TAX TIPS
DO YOU REALLY WANT TO MINIMISE YOUR TAX?
B Y C H R I S G R A Y, C E O, YO U R E M P I R E
Most people dislike paying tax and would do whatever they can to minimise the amount they pay the ATO. They often say, “My accountant is great as he is cheap, and I hardly pay any tax”. This is completely understandable
get to charge that amount because
who minimises your income and tax
and makes sense, but being a
their clients get value out of their
down to zero, the chances of you
contrarian property investor, I would
advice and still see that they get a
getting a loan is almost impossible.
suggest that you might actually want
return on their money even after
the opposite i.e. an accountant who
paying the adviser. Would you
charges a lot of money and also gets
rather an adviser charges you $250
you to pay more tax.
and saves you $2,000 in tax or an
The reason I say that is because there is a limit to how much money you can save, but there is no limit on how much money you can make. If you earn $80,000 a year and you
adviser that charges you $2,000 but shows you how you can make another $10,000 - $20,000 a year by educating you around investments and wealth creation?
3. Concentrate on building your assets, not your income. Whilst having a high income is great, it’s unlikely to make you rich. However, controlling more assets, especially if they are appreciating assets, will do more, especially over time thanks to the 8th wonder of the world – the magic of compounding.
spend very little and minimise your
2. If you pay no tax, you’ll never
The more you can sacrifice in the
tax, the most you can increase your
get a property loan. Times have
earlier years, the more you’re likely
wealth by is $80,000. Whereas if
changed over the last few years
to benefit in the later years. Whilst
you invested your money wisely,
and the banks and lenders are
increasing your working hours from
there’s really no limit on how much
very concerned about borrowers’
40 to 60 hours a week will help,
you can make.
abilities to repay loans. 10 years
it’s unlikely to make that much
ago, it was relatively easy to borrow
difference to your long term pay
$600k - 800k if you had a $1m
packet. So, I would rather put an
property even if you didn’t have
extra 10 hours into work rather than
much of an income – it was called
20, and then use those other 10
an asset lend or low / no doc loans.
hours to concentrate on educating
Now it’s gone completely the other
myself about property and wealth
way, and not only do they want to
creation – it’s all a matter of balance.
1. The cheapest adviser is often the most expensive. As a general rule, most advisers charge based on their skill level and what their clients are willing to pay. One that charges low fees will often attract clients that are just buying on price and they may not have the confidence or skills to be able to charge more for the advice they’re giving out. High charging advisers often only
see every dollar of income, they’ll also look at every dollar you spend personally to ensure you can repay a loan. So, if you have an accountant C21 MARKET PULSE
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4. You pay for experience or you pay for your mistakes. Experience is often cheaper. It’s very hard to do something perfectly for the very
first time and no matter what you are trying to accomplish, you are bound to make some mistakes. The idea behind having a coach/mentor /adviser is that if they have done it for themselves or for their clients beforehand, they will have a greater chance of finding a more efficient route the second time or definitely by the 49th or 50th time as they will then have become a specialist. I see many people that have bought a property and it’s taken them 10 years to realise it hasn’t grown. It’s not the stamp duty and selling costs they’ve really missed out on, it’s the 10 years they’ve lost and potentially a whole property cycle. I believe that trying to save money, especially on advisers is a false economy. Our parents’ generation tried to get rich by saying “take care of the pennies and the pounds will take care of themselves” whereas the modern generation says, “you’ve got to spend money to make money”. A worldly adviser can open your eyes to how other wealthy people are trying to create freedom and choice in their lives and as they will have seen many people do it before they are more likely to be able to assist you.
ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments for time-poor professionals – searching, negotiating, renovating, and managing property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed various heads of property research companies and major industry figures. Chris is a qualified accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney C21 MARKET PULSE
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P R O P E R T Y M A R K E T U P DAT E
AUSTRALIA'S SMALLEST CITIES DRIVE GROWTH IN NATIONAL HOUSING VALUES AS SYDNEY AND MELBOURNE DECLINE
BY T I M L AW L E S S , H E A D O F R E S E A R C H , CO R E LO G I C
CoreLogic’s national Home Value Index (HVI) was up 0.7% in March, a subtle increase on the 0.6% lift recorded in February. The uptick in the monthly rate of growth was primarily driven by stronger conditions in Brisbane, Adelaide, Perth and the ACT, along with several regional areas, offsetting a slip in values across Sydney and Melbourne. The first quarter of the year has seen
rate of growth was up among some
of growth is once again trending
Australian dwelling values rise by
cities and regions, there is mounting
higher since WA re opened
2.4%, adding approximately $17,000
evidence that housing growth rates
its borders," continued Mr Lawless.
to the value of an Australian dwelling.
are losing momentum.
A year ago, values were rising at more than double the current pace, up 5.8% over the three months to March 2021 before the quarterly rate of growth peaked at 7.0% over the three months ending May 2021. Sydney’s growth rate is showing the most significant slowdown, falling from a peak of 9.3% in the three months to May 2021, to 0.3% in the first quarter of 2022. Melbourne’s housing market has seen the quarterly rate of growth slow from 5.8% in April last year to just 0.1% over the past three months. CoreLogic’s research director, Tim Lawless, says while the monthly
With the softening in market
“Virtually every capital city and
conditions, the national annual
major rest of state region has
growth rate (18.2%) has fallen
moved through a peak in the trend
below the 20% mark for the first
rate of growth some time last year
time since August last year, after
or earlier this year,” Mr Lawless said.
reaching a cyclical high of 22.4% in
“The sharpest slowdown has been
January 2021.
in Sydney, where housing prices are
Mr Lawless said the annual growth
the most unaffordable, advertised
trend will fall sharply in the coming
supply is trending higher and sales
months, as the strong gains
activity is down over the year.”
recorded in early 2021 drop out
“There are a few exceptions to the slowdown, with regional South Australia recording a new cyclical high over the March quarter and some momentum is returning to the Perth market where the rate
C21 MARKET PULSE
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of the 12-month calculation.
Click here to read the full article
SUPERIOR RESULTS AND CUSTOMER SERVICE
We are committed to achieving remarkable results whilst delivering the best customer service. Contact your local C21 Agent today for your no obligation FREE property appraisal.
Visit: C21.com.au
moving made easy YourPorter specialises in connecting household utilities ensuring your moving experience is made easy.
WHY CHOOSE YOURPORTER Independent – we are not aligned with or owned by any energy retailer. We have created a panel of providers to compete for your business Freedom – stay in total control, making choices to suit your needs be it cost, product features or supplier preference Simple – use our easy, online signup process or speak to one of our friendly consultants Our service comes at no cost and no obligation Based in Melbourne, we are 100% Australian owned and operated
CONNECTING SERVICES HAS NEVER BEEN EASIER STEP 1 Once referred by an agent, YourPorter will contact you via SMS, email, and/or phone.
STEP 2 Choose your service providers via the online connection platform, or with the help of one of our friendly call centre team.
STEP 3 Tick connections off your moving home list.
Talk to your Century 21 representative or contact us via 1300 400 600 | info@yourporter.com.au | Level 3, 342 Flinders Street, Melbourne, VIC 3000
MOVING HOUSE
MOVING IS A GREAT TIME TO LOOK FOR A BETTER ENERGY DEAL
moving made
YourPorter specialises in connec BY Y O U Rmoving P O R T E experience R ensuring your
With cost of living concerns high on the agenda of every Australian household there are simple steps that you can take yourself to review your outgoing expenses. One of the greatest areas of cost savings is regularly reviewing your energy supplier commitments. A natural time to do this is when you are moving home. Comparing energy providers costs nothing – but it could save you a lot of money.
AUSTRALIA'S ENERGY MARKET IS MORE COMPETITIVE THAN EVER. The latest Australian Energy Regulator report reveals 15
ADVANTAGES OF SHOPPING YOUR CONNECTIONS SERVICES Regardless of if and when you are moving, some advantages of shopping around for your energy are:
cutting pollution, and adding value to their homes through solar panels. At Century 21 we have partnered with YourPorter, who can provide you with a tailored solution and can
new retailers have entered the
Cheaper deals: if you haven't
find you a better deal by clicking
Australian gas and electricity
reviewed your energy provider in a
here and uploading your most recent
market in the past year alone.
while and are worried you could be
All that healthy competition means consumers can capitalise on excellent new gas and electricity deals. In fact, the Australian Energy Market Commission's 2019 review found customers could save up to $760 a year in power bills by switching to a cheaper plan.
electricity andYOURPORTER gas bills to review. WHY CHOOSE
paying too much.
One last tip – Monitor your energy
– we are not aligned usage: If you aren't sure what items with or Better service: if you're not 100 Independent your home are driving up your for your percent satisfied with the level of panelinof providers to compete bills, try a tool like Powerpal. The service you're receiving from yourFreedom – stay in total control, making average user reports seeing savings current provider. or supplier preference of up to 15% on their energy bills. Greener energy: if you're Simple – use our easy, online signup pr It's even free for eligible Victorian thinking of joining the 2.68 million Our service comes at no homes, to claim click here.cost and no obl Australians already saving money, Based in Melbourne, we are 100% Austra C21 MARKET PULSE
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CONNECTING SERVICES HAS NEV
LANDLORD INSURANCE
UNDERSTANDING LANDLORD INSURANCE. ARE YOU FULLY COVERED? BY COVER GUARD
Many landlords assume their existing Landlord Insurance Policy will cover all the costs in the case of a natural disaster, accident, loss of rent or other damaging events. You may be surprised how many people make this mistake only to find out when they make a claim that they are not fully covered. With Cover Guard Insurance,
One example is the recent changes
Please contact Cover Guard
we ensure your Landlord policy
to the NSW Residential Tenancy
Insurance today to obtain a quote,
is simple and includes all the
Act which have restricted tenant
and you can rest assure we have
additional benefits automatically.
obligations under fixed term
you covered when you need
lease of 3 years, so that ongoing
it most.
CHANGES TO LEGISLATION Tenant obligations on unexpired lease agreements With legislation changing constantly in Australia, it seems more and more of these changes are focused on protection for tenants than Landlords. It is so important to understand the fine print in your Landlord policy wording when it comes to these changes in legislation, and how it affects you as a Landlord. You may be surprised to know that a lot of Landlord Insurance policies have a clause hidden in the fine print which allows the insurer to reduce or limit settlement of a claim subject to changes on
obligations under unexpired lease agreements are no longer applicable in NSW.
• The most competitively priced Policy • Best in Market Cover
What does this mean for
• Fast settlement on claims
Landlords?
• Valuable advice on cover at no
Your insurance policy may
additional cost.
state full loss of rent and full rent default cover, however if your policy includes the above mentioned clause – then you may find your Loss of Rent claim is substantially reduced by your insurer. At Cover Guard Insurance, our specialists always keep up to date with legislative changes to ensure your policy provides the best possible cover for you.
08
This article was brought to you by Cover Guard Insurance. This advice does not take into account your personal objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs. Insurers have created Target Market Determinations (TMDs) which set out the type of customer and risk the product is designed for. We can confirm that you fall within these criteria for this financial product. If you would like a copy of the TMD, please advise us so that we can make this available to you. Before you make any decision about whether the policy is right for you, you should obtain and read the Product Disclosure Statement(PDS) for the policy.
legislative requirements. C21 MARKET PULSE
DISCLAIMER
CENTURY 21
LANDLORD INSURANCE
Frustrated with your existing Insurance Policy? Are you tired of delays, excuses and claim settlements reduced or declined?
We guarantee one of the best and most comprehensive landlord policies in the market at the most competitive pricing.
Start getting real value from your insurance today.
Full Accidental loss or damage cover
Why not, you’ve paid for the policy right?
Flood cover
With Landlord Insurance - Cover Guard Insurance has you covered.
Rent Default
We do not include delays, or excuses within our program. We are there when you need us most to ensure your claim is settled fast.
Loss of Rent cover up to 24 months and up to $2,000 rent per week
Cover Guard Premiums Our premiums are fixed by state and territory. These figures do not account for extra costs associated with extensions to the standard cover limits.
NSW
$430
QLD
$360
SA
$325
TAS
$300
VIC
$360
WA
$325
ACT
$385
NT
$420
Get the right advice for full peace of mind when it comes to your Landlord Insurance.
Cover Guard Insurance Pty Ltd (CAR 1280249 | ABN 94 637 331 241) Corporate Authorised representative of Community Broker Network Pty Ltd | AFSL 233750 | ACN 096 916 184
At Cover Guard
we always have you covered
coverguardinsurance.com.au
•
1300 038 210
726 OLD PRINCES HWY, SUTHERLAND 2232 • 19 SORRELL STREET PARAMATTA 2150 • ABN 26 168 940 869 Covergaurd insurance is a wholly owned subsidiary of Highland
Paying less in fees means you end up with more
REI Super no longer charge a monthly dollar admin fee so you can grow your super faster. We have changed and reduced our monthly fees so more money stays in your super – or your pension account. Switch to REI Super for lower fees for real estate professionals.
Switch now at reisuper.com.au/low-fees
This information may be general advice, which does not take into account your personal objectives, situation or needs. Before making a decision about REI Super, consider your financial requirements and refer to the relevant Product Disclosure Statement (PDS). REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), RSE R1000412 REIS 7523
FEDERAL BUDGET
2022-23 FEDERAL BUDGET INSIGHTS FOR YOUR SUPER AND REAL ESTATE The 2022-23 Federal Budget revealed there were no major changes in relation to superannuation.
BY REI SUPER
account-based pensions and similar
Paid Parental Leave Scheme
products up until June 2023.
The Government is introducing a
Start date: ongoing
single Paid Parental Leave scheme
Home Equity Access Scheme The Pension Loans Scheme was
The Government’s focus was on
renamed the Home Equity Access
measures to address cost of living
Scheme from 1 January 2022.
challenges in light of ongoing
This is to ensure that more people
geopolitical and market uncertainty
of Age Pension age can participate
and to highlight a low unemployment
in the scheme. The policy therefore
rate coming out of the pandemic
expands eligibility to those of Age
recovery settings.
Pension age who own a home.
For superannuation members there
Start date: 1 January 2022
was only the extension of the existing
Low to Middle Income Tax Offset
reduction of 50% on minimum
The Government will introduce a
drawdown rates for account-based
$420 cost of living tax offset for
pensions until June 2023.
low- and middle-income earners
In addition, there were no changes to the way superannuation is taxed or any changes to the concessional
for the 2021-22 tax year. This is linked to the existing tax offsets and
Parental Leave scheme with the Dad and Partner Pay. The single scheme will apply equally to family units or single parents and provides 20 weeks of paid parental leave to be used how the household sees fit. In addition, the Government is broadening the income test to include household income up to $350,000 per year. Changes also mean eligible single parents will be able to access an additional two weeks of Paid Parental Leave. Proposed start date: 1 July 2022
Click here to read the full article
thresholds.
or non-concessional contribution
Cost of living payment
caps. There is also continued
The Government will provide a
commitment to the rising of the
one-off, tax-exempt payment
super guarantee to 12%.
of $250 to eligible pensioners,
FOR SUPER MEMBERS/RETIREES:
which integrates the existing Paid
welfare recipients, veterans and concession card holders. It will
Extension of the temporary
be paid automatically to 6 million
reduction in superannuation
people at a cost of $1.5 billion.
minimum drawdown rates
More than half those who will
The Government has extended
receive this are pensioners.
the reduction by 50% of the
Effective date: April 2022
superannuation minimum drawdown requirements for C21 MARKET PULSE
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DISCLAIMER Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall. This article was brought to you by Industry Super Australia. The information contained in this article is of a general nature does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation. Members should obtain and read the Product Disclosure Statement for REI Super as well as the Insurance Guide and consider speaking to a licensed financial advisor before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129 October 2021.
INTERIOR TRENDS
CHANNEL AUTUMN/ WINTER WITH THESE COSY INTERIOR TRENDS Breathe new life into your interiors this season with as little effort and as much impact as possible.
BY HOME BEAUTIFUL
and prepare your abode for the
"This year I think we will see lots of
cooler months."
pattern in autumn decoration trends,
Justine shares the autumn/winter decor and design trends for 2022 and how to embrace them in your own
The month of April traditionally marks the celebration of Easter and the end of daylight savings in Australia but most notably, it signals a change of seasons. The long days of summer are sadly no more, the weather becomes cooler and suddenly, there's a crisp chill in the morning air that tells us winter is
home to create a chic and cosy haven.
as many embrace the cottage core aesthetic," Justine says. But it's not just the classics that are experiencing a renaissance. According to Justine,
Autumn is all about embracing earthy
we can expect to see a lot more
and warm tones and this year we're seeing a resurgence in these tones in our abodes. Think hues of mustard, brown and deep greens. "You can introduce colour through a variety of ways, such as artwork, accessories,
While this shift in seasons often
is to not overdo it, rather work in small
own sartorial style, it's not just our
will be back with force, especially
COMFORTING COLOURS
right around the corner.
tends to prompt an update of our
classics such as tweed and tartan
florals, and soft furnishings, the trick accent," says Justine.
floral prints adorning our interiors this season, "but unlike spring and summer they will be more moody, muted colourways, in dark emeralds, navy tones, and warm rust tones," she says.
BRING THE OUTSIDE IN "Autumn is about feeling cosy and being prepared, so why not have
wardrobes that need adjusting come
EMBRACE TEXTURE
your interiors overflowing with fresh
the cooler months. As we prepare to
"Autumn styling is all about layers,
produce displayed in pretty ways,
close our doors and ready ourselves
think heavy coverlets and blankets
for a season full of home cooked
on your bed, snuggly throws on your
meals and hot chocolates, it's time
sofa, lots of plush cushions and warm
to turn our attention to our interiors.
rugs underfoot," Justine explains.
"Autumn is a time of year where
"You can layer many textures
there is the perfect mix of warm sun and cool breezes, coupled with the beautiful colours of the turning landscape," says Vault Interiors Director and Principal Stylist Justine Wilson. "When it comes to interiors, autumn is the perfect time to embrace this transitional feeling – and use it as a time to reset, refresh,
together also, think of materials such as velvet, wool, cashmere and flannel and thick natural linens. By including these materials, you will create an
think pears in a bowl, jars of nuts and herb cuttings displayed on your counters," Justine says. "You can also bring the outside in with beautiful vases of greenery, the last bright blooms of the summer season, and pretty branches displayed simply in urns or vessels. As the light fades, having pretty
inviting and cosy feel in your space."
muted lighting can really help
PATTERN APLENTY
and floor lamps and candles to
We're just going to come right out
create a cosy scene."
and say it: pattern is officially back. C21 MARKET PULSE
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CENTURY 21
create an atmosphere, so use table
Click here to read the full article
