M A R K E T
A U G U S T
P U L S E
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C21
PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Chris Gray Elite Agent Magazine Tim Lawless Bradley Beer On The Move
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600
WELCOME TO THE
AUGUST 2020 ISSUE OF
C21 MARKET PULSE
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
C O N T E N T S A U G U S T
TIME FOR CHANGE
02-03
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BENEFITS OF BRAND-NEW
Could now be the time to renovate?
Discover the benefits of buying a brand-new
Your Empire CEO, Chris Gray
investment property.
06-07
BMT Tax Depreciation, Bradley Beer
EXPANDING NETWORK
04 WINTER TIPS
New C21 office opens in Burwood NSW.
Toasty tips for staying warm this winter.
Elite Agent Magazine
On The Move
PROPERTY MARKET UPDATE
05
Values continue to drift lower, falling 0.6% in July. Corelogic Head of Research, Tim Lawless
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TIME FOR CHANGE
COULD NOW BE THE TIME TO RENOVATE? B Y C H R I S G R A Y, C E O, YO U R E M P I R E
With so many people unsure of whether it’s a good time to be buying a home or investment, could now be the time to undertake some renovations instead? Whilst there hasn’t been a 20 – 30% drop in the property market as
Whilst the TV programs and
2. Renovate to your tenants
magazines can make renovating look
needs not yours. If you’ve got
very easy, and they are called reality
an investment property, you
shows, they are in fact far from
might not be the same
reality. You only get to see what the
demographic as the tenants
cameras and producers want you to
that are likely to rent it and so
see and a lot of the results can be
it’s important to bring in a
cosmetic and not long lasting.
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.
So here’s some tips for profitable renovations:
some economists predicted, many
1. Renovate for a future sale. Whilst
buyers are worried about what the
everyone has individual tastes,
future holds and whether there’s a
it’s important for the future
downturn around the corner.
re-sale of your property that it
So rather than sit on the fence
appeals to the audience. Speak to
for the next 6 – 12 months, could
your trusted real estate agent
you be doing something better to
to find out who is the likely buyer
create your dream home or to make
for your property and what they
your current property portfolio
look for in a home or investment.
more efficient.
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.
Renovating can improve your property’s capital growth considerably – even in a flat or down market – and can reduce future maintenance or repairs down the track.
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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
Some may charge a fee for
to live in for a long time. However it’s
or curtains, door handles and a
service, but often you’ll save
always worth taking an unemotional
fresh coat of paint can make a big
many times that in better-
snapshot at the same time.
difference to the property’s
planned renovations and on time
overall appearance. Carpets and
and on budget guarantees.
walls are the majority of a
properties surface and very easy
to upgrade.
5. Double-check your plans with an
independent valuer. If you ask ten
people for an opinion, you’ll
4. Hire a professional. For large-
usually get ten different views
scale renovations and projects,
on what’s right. I often ensure
ABOUT THE CONTRIBUTOR
don’t skimp on expert help.
that I never under or over
Chris Gray is CEO of Your Empire, a buyers’
Paying for the best builders,
capitalize by getting an
agency that buys homes and investments for
project managers and
independent valuer to double-
time-poor people – searching, negotiating,
tradespeople can ensure that
check my numbers. They can
the work is completed to the best
tell you what your property is
possible standard and be
worth now, what it’s likely to be
council-approved, which will
worth post renovation and then
various heads of property research
help you come sale time. One of
you can make sure the
companies and major industry figures. Chris
the best places to find
renovations cost you less than
great experts is through
the difference.
recommendations. Consult with
family, friends, buyer’s agents
and real estate agents for advice.
behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where he’s interviewed
is a qualified accountant, buyer’s agent and mortgage broker. For more information visit www.yourempire.com.au,
Renovating isn’t always about the money, especially if you’re looking at improving the home that you’re likely
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renovating and managing property on their
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www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.
EXPANDING NETWORK
NEW C21 OFFICE OPENS IN BURWOOD NSW An experienced team of real estate professionals have opened an agency in Sydney’s inner west under the Century 21 brand. Directors Eugene Ganke, Jada Vi, Betty Lu, and Ricky Kong are a team that are passionate about property. Together they will operate the Burwood real estate business after having worked together in different roles across independent and franchise agencies. “We are incredibly excited to be partnering with the bold and dynamic Century 21 brand whose vision and values really resonated with us,” said Mr Ganke who has over 10 years of industry experience. “It’s great to have received so
Fellow Director Jada Vi offers six
Century 21 Chairman and Owner
years of real estate experience
Charles Tarbey is pleased to have
said each member of the team
this young team come together
brought a wealth of knowledge
under the C21 brand and is
and skills that complement each
confident of their success.
area of real estate.
“The passion and drive that these
“Our combined focus will be to
individuals have for real estate
ensure that the sale or management
is inspiring. By leveraging the
of our customers most valuable
strength of the C21 brand, training
assets are given the highest priority
and technology, I am sure they will
and utmost care.”
achieve their immediate goal of
The new team believes there is a gap in the local market for
The new office will benefit from
agents which they will aim to fill.
the continued partnership that
They will offer sales, property management and
“Our combined focus will be to ensure that the sale or management of our customers most valuable assets are given the highest priority and utmost care.”
our own agency. We look forward to growing with this global brand for many years to come and leveraging their processes and platforms to deliver a level of service and care that is unmatched”.
Mr Tarbey said.
Cantonese and Mandarin speaking
project marketing
much support to start
being the best agency in Burwood,”
services with an emphasis on delivering exceptional service.
Century 21 have with Bauer Media across the Home Beautiful website and magazine. With the majority of that audience owning or paying off their own home, having ownership in sight or looking to invest, the initiative not only showcases C21 properties
The office
to consumers with an interest in
will be
property, it also generates strong
rounded out by Betty
buyer and seller leads for the network.
Lu who has
experience in real estate and running her own business, and rising star Ricky Kong who in his first year with a major franchise made the Top 100 agents list on GCI.
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The story New C21 offi ce opens in Burwood NSW, fi rst appeared on Elite Agent. Article Link: https://eliteagent.com/new-c21-offi ceopens-in-burwood-nsw/
P R O P E R T Y M A R K E T U P DAT E
VALUES CONTINUE TO DRIFT LOWER, FALLING 0.6% IN JULY
BY T I M L AW L E S S , CO R E LO G I C H E A D O F R E S E A R C H
Australian housing values racked up a third consecutive month of declines in July, with CoreLogic’s home value index dropping 0.6% over the month, a slight improvement from June when the national series was down 0.7%. Across the capital cities, only Canberra (+0.6%) and Adelaide (+0.1%) posted a rise in dwelling values over the month, while Melbourne (-1.2%) and Sydney (-0.9%) led the decline, recording the largest month-on-month falls in July.
markets have remained relatively
However, with fiscal support set to
resilient through the COVID period
taper from October and repayment
so far. “The impact from COVID-19
holidays expiring at the end of
on housing values has been orderly
March next year, Mr Lawless
to-date, with CoreLogic’s national
believes the medium term outlook
index falling only 1.6% since the
remains skewed to the downside.
recent high in April and housing turnover has recovered
more common as we
quickly after it’s sharp fall in late March
“Urgent sales are likely to become approach these
“Across the combined regional areas, housing values were unchanged in July compared with a 0.8% fall across the combined capital cities index.”
and April.” “Record low interest rates, government support and loan repayment holidays for distressed borrowers have
milestones, which will test the market’s resilience. Similarly, the recent concerns of a second wave of the virus and the potential for renewed border
Regional markets are generally
helped to insulate the
showing more resilience to falling
housing market from a more
values. Across the combined
significant downturn. Advertised
likely to further push consumer
regional areas, housing values
supply levels have remained tight,
sentiment down. This is likely to
were unchanged in July compared
with the total number of properties
weigh on both home buying and
with a 0.8% fall across the
for sale falling a further 4.3% in the
selling activity more broadly.”
combined capital cities index.
4 weeks to July 27th, sitting 15.2%
Regional Victoria (-0.5%) and
below where they were this time
regional Western Australia (-3.2%)
last year. Additionally, increased
were the only non-capital city
demand driven by housing specific
markets to record a fall in values
incentives from both federal and
over the month.
state governments, especially for
According to CoreLogic’s head of research, Tim Lawless, housing
closures and stricter
first home buyers, have become more substantial.”
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social distancing polices are
Click here to read the full article
BENEFITS OF BRAND-NEW
DISCOVER THE BENEFITS OF BUYING A BRAND-NEW INVESTMENT PROPERTY According to the BMT Tax Depreciation 2019 investor survey, 63 per cent of investors prefer to invest in secondhand property. While second-hand properties are a valuable and more affordable investment, it’s important that investors consider the additional benefits of buying brand-new property.
BY BRADLEY BEER, B M T TA X D E P R E C I AT I O N
any relevant fixtures and fittings
all deductions available on
are also new, they are often more
the structure and any fixed or
durable, requiring less maintenance
mechanical assets.
and repairs.
Legislation changes made in 2017
Capital growth
mean owners of second-hand
Newer properties usually hold higher values than similar, secondhand properties in the same area. While there’s no knowing how the property market will perform, trends have proven that property values generally increase over time. The common goals of owning an investment property are to make extra income, build equity and
Increased tenant interest and low maintenance costs When an investor buys a brandnew investment property, it’s usually ready to be advertised to potential tenants straight away. Modern, brand-new properties tend to attract high tenant interest, strong rental returns and low vacancy rates depending on the market. Given that the structure and
increase capital growth. Investors who own brand-new properties hold a head-start on the capital growth curve. Additionally, the high rental yields new properties can produce maximised cash flow and returns during ownership.
investment properties can’t claim depreciation on previously used plant and equipment assets. Brandnew properties aren’t affected by the 2017 legislation changes, allowing investors to claim all available deductions. When a property is new it also allows the investor to claim all capital works deductions for the lifetime of the property (forty years), rather than just a part its lifetime. BMT Tax Depreciation find owners of brand-new investment properties an average of almost $12,000 in first full financial year deductions.
Higher deprecation benefits
BMT Tax Depreciation has been
Investors of brand-new investment
investors make informed decisions
the most trusted specialist in the
properties are eligible to claim
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industry for over 20 years. To help on the type of property they buy,
BMT provide obligation-free
complimentary tool allows owners
depreciation estimates.
to personalise data to reveal the
BMT’s tool, PropCalc, can help
true cost of owning any property.
investors choose the best
To start claiming depreciation on
investment property for their
your investment property, Request
ABOUT THE CONTRIBUTOR
situation. More than just a mortgage
a Quote or contact the expert BMT
Article provided by BMT Tax Depreciation. Bradley
calculator, PropCalc is the essential
team on 1300 728 726.
Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief
cash flow calculator for any investor
Executive Officer of BMT Tax Depreciation.
looking to buy a property. This
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.
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WINTER TIPS
TOASTY TIPS FOR STAYING WARM THIS WINTER The cold weather is here, so how can your household stay warm and comfortable without having to seek your landlords permission? When the mercury drops, try these tips and they’ll keep you toasty and warm.
BY ON THE MOVE
heaters are electric heaters, gas
create a luxurious design piece. Also
heaters, and reverse-cycle air
rugging up with blankets and putting
conditioners. Electric heaters cost
on your favourite woolly socks will
the most to run and reverse-cycle air
also help you stay snugly and warm.
conditioners the least to run, all else being equal.
CLOSE OFF AREAS YOU'RE NOT USING
BLOCK DRAFTS House drafts let heat escape from your house during winter so a simple technique to keeping warm
On average, Aussie households are
is trapping the warmth and block
spending thousands of dollars on
off any obvious gaps. The most
electricity and gas each year. With
common source of cool air entering
heating making up a significant
into a room is the gaps under the
percentage of total energy usage,
doors. A door snake or a rolled up
reconsidering how you’re staying
towel are valuable allies in the fight
warm could be well worth it.
against winter drafts. Keeping the
Keep the heat where you spend the most time rather than heating up your entire house by closing off the doors to rooms you’re not using. This simple technique will help to keep heat in the rooms which you mostly use like the kitchen and living room.
drafts on the outside makes for a warmer home and lower energy bill.
USE PORTABLE HEATERS Portable heaters can come in handy in helping you keep warm in the areas you occupy the most in your house. The main types of portable
RUG UP Adding a rug over your cold tiles or hardwood floors can provide some room warming insulation and also
ABOUT THE CONTRIBUTOR On the Move is Australia’s leading service connections specialist providing a one-stop service for electricity, gas, phone, internet, pay TV and insurance. Since 2004 On The Move has partnered with Real Estate agencies and other organisations to give their customers a convenient and seamless move-in, lights-on experience. https://www.onthemove.com.au/
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