C21 Market Pulse | August 2023 | Australia

C21

WELCOME TO THE AUGUST 2023 ISSUE OF C21 MARKET PULSE

PUBLISHER

Century 21 Australia Pty Ltd

CONTRIBUTORS

Chris Gray Tim Lawless YourPorter

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Century 21 Australia (02) 8295 0600

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C ORELOGIC HOME VALUE INDEX SHOWS GROWTH EASING IN MOST REGIONS AS NEW LISTINGS RISE

CoreLogic’s national Home Value Index (HVI) rose 0.7% in July marking a fifth consecutive month of housing value recovery.

Since finding a floor in February, the national HVI is up 4.1%, following a -9.1% decline from record highs in April 2022.

Nationally, home values remain -5.3% below the April 2022 peak, with only Perth, Adelaide and Regional South Australia recording a new cyclical high in dwelling values through July.

While housing values are continuing to record a broad based rise, the rate of growth has lost momentum over the past two months, slowing from 1.2% in May.

CoreLogic Research Director, Tim Lawless, noted the most substantial reduction in growth has occurred in Sydney.

“After leading the upswing, the monthly pace of growth in Sydney

BY TIM LAWLESS, HEAD OF RESEARCH, CORELOGIC

housing values has halved from a recent high of 1.8% in May to 0.9% in July. Sydney has also seen a significant rise in the number of fresh listings added to the market, 9.9% higher than the same time last year and 18.0% above the previous five-year average. An increased flow of new listings provides more choice and may be working to reduce some of the urgency felt among prospective buyers,” he said.

Brisbane and Adelaide saw the monthly pace of growth accelerate in July, leading the pace of gains across the capitals with housing values up 1.4% across both cities. Although the trend in new listings has risen in these cities, Mr Lawless said the number remains well below levels from a year ago and the previous five-year average.

Canberra was the only capital city to record a decline in values in July, down -0.1%, while Hobart values were unchanged.

The slowdown in value growth has mostly been driven by an easing in gains across the upper quartile

of the market. While growth in the upper quartile of the combined capitals index diminished from 1.8% in May to 0.7% in July, the lower quartile (1.0%) and broad middle of the market (0.9%) remained resilient in July, following a smaller, but more consistent rate of growth over previous months.

“Some resilience in growth across the middle and more affordable end of the market aligns with housing finance data which has shown a stronger bounce back in the value of lending to first home buyers and investors over recent months,” Mr Lawless said.

“These segments tend to be more active across the middle to lower end of the pricing range where competition to purchase a home may be more intense.

“Premium housing markets tend to lead the cycles, so the slowdown in the pace of growth could be a sign of a broader easing in the pace of growth over the coming months.”

Click here to read the full article

W HY INCREASING YOUR DEBT WHEN YOU’RE 50 COULD BE A GREAT THING

you’ll save in interest paying off your home.

BY CHRIS GRAY, CEO, YOUR EMPIRE

Society has always said the same: ‘debt is bad and evil’. This might be true and a safe option for the average person, but for those that want to create even more freedom and choice in their retirement, it doesn’t have to be the case.

As you get older there is often a large amount of spare equity in the family home. Having it sit there doesn’t make you any richer, however if you get it working you could have twice as much –if not more – on retirement. Most people spend a lifetime paying off their mortgage and, when they finally do, the banks say ‘why not use that dead equity to invest elsewhere?’ Instead of waiting to pay your first home off, why not invest now? Reducing your personal, non- deductible debt is a good thing -however investing in a second or third property will often make hundreds of thousands of dollars more than the few thousand

The main way people lose money in real estate is when they buy something too speculative and volatile, or when they are forced to sell. If you buy median-priced, blue-chip properties in blue-chip locations, and have the cash flow to hold on for the long term, it rarely goes wrong. Create a cash flow buffer from your existing equity to ensure you never have to sell.

Your lifestyle doesn’t have to be sacrificed if you buy more investments – even if they are negative geared. Just as you can use your spare equity as a cash buffer, you could use your equity to help cash flow any difference between the rent and the mortgage. Think of it as working capital in your business. Banks have responsible lending codes to abide by which should ensure that you do have the serviceability to cover any extra borrowings. However not all lenders are the same, so if you want to be more entrepreneurial you need to find an entrepreneurial lender.

If you want to play things safe you should buy a home, pay it off, and invest from there. However, if you want to create an extraordinary retirement, you need to go against the crowd. Investing can be risky if you don’t know what you’re doing. Make sure you hire professionals who are making money through property investment themselves, rather than people who have the qualifications but aren’t practicing what they preach.

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

Our parents have always suggested that if you want to retire early and be financially free then you need to be debt free.

7 BUDGET-FRIENDLY TIPS FOR A LUXURIOUS HOME LOOK

Creating a luxurious and expensive-looking home doesn't have to break the bank. With a few smart and creative choices, you can transform your living space into a stylish and elegant abode without spending a fortune. In this blog, we'll explore seven affordable ways to make your home look more expensive while staying within your budget.

1. DECLUTTER AND ORGANISE

One of the simplest and most cost- effective ways to give your home a high - end appearance is to declutter and organise your space. Remove unnecessary items, streamline your belongings, and find smart storage solutions. A clean and clutter-free environment instantly elevates the look and feel of your home.

2. FOCUS ON LIGHTING

Ample lighting can make a huge difference in how your home is perceived. Opt for well-placed lighting fixtures that add warmth and sophistication to your living areas. Consider investing in ambient and accent lighting to create layers of light that highlight key features and create a luxurious ambiance.

3. UPGRADE YOUR HARDWARE

Another affordable way to make your home look more expensive is by upgrading your hardware. Replace outdated doorknobs, drawer pulls, and cabinet handles with stylish options that complement your interior design. Choose finishes like brushed gold or brushed nickel for a contemporary and upscale look.

4. ADD A TOUCH OF LUXURY WITH TEXTILES

Introduce luxurious textiles into your home to instantly elevate its appearance. Swap out old and worn - out curtains or blinds for floor-to - ceiling drapes made of rich fabrics. Invest in high - quality throw pillows, plush area rugs, and soft bedding to create an inviting and sophisticated atmosphere.

Continued over page

5. CREATE AN ACCENT WALL

Enhancing a single wall can make a significant impact on the overall aesthetic of your home. Choose a bold and eye-catching colour, textured wallpaper, or even a patterned tile to create an accent wall that adds depth and visual interest to your space. This focal point will give the impression of a thoughtfully designed interior.

6. INCORPORATE MIRRORS

Mirrors are a powerful tool in interior design as they create an illusion of space and reflect light,

making any room appear larger and brighter. Place mirrors strategically in areas where they can reflect natural light or act as statement pieces. Consider adding a large mirror in your entryway or above a mantel to make a grand statement.

7. PAY ATTENTION TO DETAILS

The small details in your home can make a big difference in its overall appearance. Invest in high - quality decorative accessories like vases, candles, and artwork. Look for pieces that have an air of sophistication and uniqueness, adding personality and charm to your living spaces.

Creating an expensive -looking home doesn't have to drain your bank account. By following these seven affordable tips, you can enhance the overall aesthetic of your living space without blowing your budget. Remember, it's all about decluttering, lighting, upgrading hardware, incorporating luxurious textiles, creating focal points, adding mirrors, and paying attention to the details. With a little creativity and attention to detail, you can transform your home into a sophisticated and elegant haven that exudes luxury and style.

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Independent – we are not aligned with or owned by any energy retailer. We have created a panel of providers to compete for your business

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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

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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.

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W ITH MARKET CONDITIONS CHANGING, IS NOW A GOOD TIME TO SELL MY PROPERTY?

We are often asked when is the right time to sell my property?.

The answer is no one can predict the market and the best time to sell your home is when the time is right for you.

If you are buying and selling in the same market, there is no right or wrong time. More sellers

lost money on the upturn of the market by pricing themselves out of rebuying, than in the current market where prices are a little more predictable moving forward. With changing interest rates, it’s important to budget what you can afford in repayments rather than maxing your limits of what banks will potentially offer you. If you already have a mortgage and are coming up to the expiry of a fixed

BY GRANT SMITH, CENTURY 21 GRANT SMITH PROPERTY

term rate, shop around or engage a broker who could potentially save you significant monthly costs.

When you have made the commitment to sell, be certain to research the market around you. Speak with a trusted, reputable agent in your area that knows the market, trends and sales in your area and who can provide a strong strategy for achieving the best results.