2022AugustPULSEMARKETC21
WELCOME TO THE August2022 ISSUE OF C21PMARKEtuLsE P u BLI s HER Century 21 Australia Pty Ltd CON t RIB utOR s Tim REIChrisLawlessGraySuper EDI tORIAL ENQ u IRIE s Century 21 Australia (02) 8295 0600 ADVER t I s IN g ENQ u IRIE s Century 21 Australia (02) 8295 0600 DI s CLAIMER 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 www.century21.com.au/privacyto:
PROPER t Y MARKE t u PDAt E 03 Home Value Index shows housing downturn accelerates CoreLogic Head of Research, Tim Lawless RENOVAt IN g 04 Is now a good time to renovate? Your Empire CEO, Chris Gray su PERANN u At ION 06 Looking to go off-grid? Dan Vanderhoek is your man REI Super s ELLIN g PROPER t Y 08 The best time to sell your house: when you're ready Century 21 C21 MARKET PULSE 01 CENTURY 21 C AONTENTSUgUST2022UnsplashonBorbaJonathanimage:Cover
Looking to buy, sell or rent in a changing market? Our property market expertise and unparalleled customer service will get you the outcome you deserve. Contact your local C21 agent today to discuss your property needs. Visit: C21.com.au WE ARE EXPERTSANDPROPERTYTHEPEOPLE
Mr Lawless said. Click here to read the full article
C21 MARKET PULSE 03 CENTURY 21 P ROPERTY MARKET H OME VAL u E INDEX s HOW s HO us IN g
Five of the eight capital cities recorded a month-on-month decline in July, led by Sydney and Melbourne where values fell -2.2% and -1.5% respectively. Brisbane also edged into negative growth territory for the first time since August 2020, with values down -0.8%, while Canberra (-1.1%) and Hobart (-1.5%) were also down over the Perthmonth.(+0.2%), Adelaide (+0.4%) and Darwin (+0.5%) remained in positive growth through July, however most of these markets have recorded a sharp slowdown in the pace of capital gains since the first interest rate hike in May.
Australian dwelling values fell by -1.3% in July, marking the third consecutive month CoreLogic’s national Home Value Index has fallen. After national dwelling values surged 28.6% through the pandemic growth phase, values are now -2.0% below April’s peak.
BY TIM LAWLESS, HEAD OF RESEARCH, CORELOGIC
DOWN tu ACCELERARNt E s
Regional markets have also weakened , with the combined regionals index recording the first monthly decline (-0.8%) since August 2020. Dwelling values were down across Regional New South Wales (-1.1%), Regional Victoria (-0.7%), Regional Queensland (-0.7%) and Regional Tasmania (-0.6%), while values continued to trend higher in Regional SA (1.1%) and Regional WA (0.1%). Overall, regional markets are still outperforming their capital city counterparts, but this month’s figures show major regional centres are not immune to falling home “Dwellingvalues.values across CoreLogic’s combined regionals index were up 41.1% from the pandemic trough to the June peak, compared with a 25.5% rise across the combined capitals index. The stronger growth reflects a significant demographic shift towards commutable regional markets, which is likely to have some permanency as more workers take advantage of formalised hybrid employment arrangements,”
CoreLogic’s Research Director, Tim Lawless, said housing market conditions are likely to worsen as interest rates surge higher through the remainder of the year. “The rate of growth in housing values was slowing well before interest rates started to rise, however, it’s abundantly clear markets have weakened quite sharply since the first rate rise on May 5,” he said. “Although the housing market is only three months into a decline, the national Home Value Index shows that the rate of decline is comparable with the onset of the global financial crisis (GFC) in 2008, and the sharp downswing of the early 1980s. In Sydney, where the downturn has been particularly accelerated, we are seeing the sharpest value falls in almost 40 “Dueyears.torecord high levels of debt, indebted households are more sensitive to higher interest rates, as well as the additional downside impact from very high inflation on balance sheets and sentiment.”
4. Hire a professional. For largescale renovations and projects, don’t skimp on expert help. Paying for the best builders, project managers and tradespeople can ensure that the work is completed to the best possible standard and be council-approved, which will
2. Renovate to your tenants needs not yours. If you’ve got an investment property, you might not be the same demographic as the tenants that are likely to rent it and so it’s important to bring in a property manager to get their advice as to what works and what doesn’t. Dimmer switches, overhead fans, air conditioning can seem like a great idea, but if they are the things that are likely to constantly break down and are non-essential, they are probably left out of your renovation – Tradie call out fees can mount up over time. Go for what’s practical, hard wearing and colour schemes that work for the majority.
CHRIS’S FIVE TIPS FOR PROFITABLE RENOVATIONS
BY CHRIS GRAY, CEO, YOUR EMPIRE
3. The little changes can make the biggest differences. In many cases, you don’t necessarily have to undertake a large-scale renovation to lift a property’s value. Sometimes, small alterations including new light fittings, landscaping, blinds or curtains, door handles and a fresh coat of paint can make a big difference to the property’s overall appearance. Carpets and walls are the majority of a properties surface and very easy to upgrade.
1. Renovate for a future sale. Whilst everyone has individual tastes, it’s important for the future re-sale of your property that it appeals to the audience. Speak to your trusted real estate agent to find out who is the likely buyer for your property and what they look for in a home or investment. This can quite often change over time as prices rise and fall and demographics change. Converting a 3-bedroom house into a 2 bed so you can get your dream walk in wardrobe may suit you, but may not make a lot of financial sense.
C21 MARKET PULSE 04 CENTURY 21 R ENOVATIN g I s NOW A g OOD t IME tO RENOVAt E?
This year has been getting much tougher for borrowers, with multiple rises in interest rates and a reduction in amount they can comfortably service and so many people will find it harder to afford to buy a bigger home or to continue buying more investment properties. Whilst you may not be able to raise enough funds to upgrade your home or buy another investment, you might be able to raise enough funds to renovate your current Renovatingproperties. can improve your property’s capital growth considerably – even in a downward or flat market – and can reduce future maintenance or repairs down the WhilsttrackTV programs like The Block can make it loom fairly easy, most people’s reality of renovating is that it either takes them twice the amount of time they originally estimated or it costs twice as much as they initially calculated. And for some, it’s twice the time and twice the budget.
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
Renovating isn’t always about the money, especially if you’re looking at improving the home that you’re likely to live in for a long time. However, it’s always worth taking an unemotional snapshot at the same time.
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C21 MARKET PULSE 05 CENTURY 21 help you come sale time. Whilst hiring a project manager will cost some money, it will often save many times that in better-planned renovations and on time and on budget guarantees. 5. Double-check your plans with an independent valuer. If you ask ten people for an opinion, you’ll usually get ten different
ABOUT THE CONTRIBUTOR
views on what’s right. I often ensure that I never under or over capitalize by getting an independent valuer to doublecheck my numbers. They can tell you what your property is worth now, what it’s likely to be worth post renovation and then you can make sure the renovations cost you less than the difference.
SUPERANNUATION ‘Superannuation is the backbone of my plan to achieve this. If you’re not working and earning an income you still need a way to pay the bills, a super pension is my answer.’
L OOKIN g tO g O OFF- g RID? DAN VANDERHOEK I s YO
C21 MARKET PULSE 06 CENTURY 21 S UPERANNUATION
NEW CAREER CHANgE
‘I had several super funds when I started out in real estate so I did my research on which super fund to go with. My wife was with an industry fund so I knew a bit about them, My father-in-law was in the banking sector and he provided some advice. When it came down to it I really liked the online platform REI Super offered, easy to manage and informative. When I compared investment returns REI Super was right up there with the leaders in the industry. I’m very happy with my Clickchoice.’hereto read the article u
‘I’ve always had a passion for architecture, design and build, and a strong sense of social responsibility and for the environment. Real estate has given me the platform to bring all this together and package it up to a rapidly growing and passionate clientele. I have the best job in the‘Ecoworld.’andlifestyle properties take on many forms but essentially start out with a conscious effort to look after the environment. Be that orientation on the land to manage passive solar, building and insulating with natural products such as mud brick, thatching etc. reusing and recycling products such as timber and glass, getting soils right and developing selfsufficiency. The list goes on, right up to the point where you’re selfsufficient and off the grid.’
Century 21 Platinum agents, Gympie, sales and marketing consultant Dan Vanderhoek is a lifestylespecialisesenvironmentalistpassionatethatinEcoandproperties.
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.
MAN BY REI SUPER 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.
‘Enquiry is huge and I have clients fly in from all around the country to view and purchase properties. I also provide a service to my clients to advise and assist them develop their properties in an eco-friendly and sustainable way.’
‘My ultimate goal is to secure a property of about 150 acres myself, develop it to the point where we are completely self-sustained, living off the grid and more... I want to work with likeminded people in this growing community to form a business that would provide a barter system that shared the fruits of the land.’
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Dan came to the industry with a graphic design background and after a stint as a stay at home dad. When the twins were off to school it was time to embark on a new career.
REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions and consider talking to a financial adviser before making an investment decision. Past performance is no indication of future performance. June 2022. REIS 8010 REI Super is the only super fund built by, and for real estate professionals. That means we understand you and your industry better. Move your super to the same location that over 24,000 people, just like you, already have. Join now at reisuper.com.au/join No locationbetter
PRICINg The right pricing is critical when selling your home and can be the difference between a quick sale and your home languishing on the market. Setting the price too high will obviously dissuade buyers, but pricing too low could mean leaving money on the table. The key is to find that Goldilocks price that is just right. In a market where we are seeing variable changes across different areas, it is essential you consult with your local C21 real estate agent who has experience in the area and is familiar with the most recent sales prices of similar properties. They will be able to give you a great indication on the price range your home should fall into. Once you have a suggested price range, you can do some additional research online using sites like realestate. com.au to get an idea of what similar homes in your area are currently listed for. You may also want to have a professional valuer come and assess your home to give you an idea of its current market value - in regard to loan approvals to potential buyers and adjusting your own expectations. This can be especially helpful if you have made significant upgrades or renovations to your home since you purchased it as these improvements will likely increase the value of your home. PRESENTATION When you are selling your home, it is important to present it in the best light possible. This means making sure that it is clean and tidy, and that any repairs or maintenance issues are addressed. It may also mean making some cosmetic changes, such as painting or staging furniture and gardening to help make your home more appealing to potential buyers. Your C21 real estate agent will be able to advise you on how to best prepare your home for sale, and can provide you with guidance to help make the process as smooth as possible. Remember, first impressions count so take the time to ensure that your home is show-ready before putting it on the market!
MARKETINg The majority of home sellers are not experienced in marketing and selling property. Consequently, they rely heavily on their real estate agent's expertise. An effective agent will use their industry knowledge to help you price your home correctly from the start. They will then create a marketing plan that targets the right buyers and gets your home maximum exposure. If you have a good relationship with your agent, this process will be much smoother and more successful. Marketing and pricing are two key elements in successfully selling your home; trust your real estate agent to help you navigate them both. Consulting a local property expert at the start of your selling process will make a big difference to your sale outcome and experience. Our C21 agents are happy to help in any way to maximise your results and achieve your property goals.
So, you're thinking of selling your house? Great! There are a lot of considerations, but one of the most important is timing. So, when is the best time to sell your house? The answer: when you are ready, not the market or any other influencing factors. Only three things really influence your 'readiness' to sell your property and a successful sales outcome –price, presentation and marketing. Aligning these three elements and you will attract buyers who are genuinely interested in transacting.
C21 MARKET PULSE 08 CENTURY 21 S ELLIN g PROPERTY t HE BE st t IME tO s ELL YO u R HO us E: WHEN YO u 'RE READY
