C21 Market Pulse | July 2021 | Australia by CENTURY 21 Australasia

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M A R K E T

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PUBLISHER Century 21 Australia Pty Ltd

CONTRIBUTORS Chris Gray Eliza Owen Connectnow REI Super Home Beautiful Terri Scheer Salefunder

EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600

ADVERTISING ENQUIRIES

WELCOME TO THE

JULY 2021 ISSUE OF

C21 MARKET PULSE

Century 21 Australia (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

C O N T E N T S J U L Y

EDUCATING FURTHER

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INVESTING IN SUPER

Are you too old to keep learning?

Investing in super using empowering super rules.

Your Empire CEO, Chris Gray

REI Super

PROPERTY MARKET UPDATE

BATHROOM TIPS

Auction dwelling values finish the financial year

Seven ways to make the most of a small bathroom.

13.5% higher.

Home Beautiful

CoreLogic Head of Australian Research, Eliza Owen

MOVING TIPS

Take the stress out of moving house. Connectnow

C21 MARKET PULSE

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E D UC AT I N G F U R T H E R

ARE YOU TOO OLD TO KEEP LEARNING?

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 finish their formal education when they leave school, some carry on to university and a few go all the way to an MBA. But how many continue on beyond that and commence an education in personal wealth or property as that’s where the real money could be hiding? 99% of most people’s education

Here is Chris Gray's advice for

of money, every book should be

is built around trying to get a job

educating yourself further:

available from your local library and

and building that into a career.

1. ADVICE AND EDUCATION ARE WORTH WHAT YOU PAY FOR IT.

if you’re short of time, then audio

If you get some free information

real-life advice from an adviser

When the average full-time wage is around $90k and the median wage for all workers is $65k, assuming you work from 18 to 65 that would roughly equate to $3m to $5m of income you earn in 47 years. Take tax off and you’re left with a lot less. If the median property price is currently around $1m in Sydney and $650k nationally, that same property could be worth $5-8m+ if it doubled every 15 years or $1520m+ if it doubled every 10 years. If it was your home then it should be capital gains tax free and if it was an investment, you should get another 2% net rent too which will give you another $4-6m.

or advice, then it’s value to you is often equal to what you’ve paid for it i.e. nothing. Free information is normally either biased or its marketing to get you to do something else that does cost you money. A free financial plan could be the most expensive plan, as it’s bound to be full of recommendations to buy products that have high commissions that are payable to the adviser. So, are they recommending the best product to make you wealthy or the highest commissioned product to make them wealthy?

more than you do in a lifetime, how much energy and effort should you be putting into your personal wealth education versus that of your career?

you. You will still need to get some that can discuss your personal circumstances, but you should be able to get 80% there by yourself.

3. IT'S NEVER TOO LATE TO START LEARNING. Even if you’re 60 years old it’s not too late, as long as you’re expecting to live another 5 – 10 years+. Assuming you think the property market is going to continue to grow over the short to medium term then that 10 years could be another property cycle. Buy an additional $500k - $1m property and that will ideally give you another $500k

So, if your main family home or investment property can easily earn

books could be the way to go for

2. IT DOESN'T HAVE TO COST A FORTUNE.

- $1m to spend. Live till you’re 80

Books can be an excellent source

give it a go, at least you’ve got a

of education and the only real cost is you putting in some time to read them, take notes and then to act on them. If you are really short

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or 90 and that could be another $2-3m in additional wealth. If you chance of success. Do nothing and you’ve got a 100% chance of not succeeding.

4. YOU CAN'T BE AN EXPERT AT EVERYTHING. There’s no way you can be a qualified accountant, lawyer, financial adviser, mortgage broker and buyer’s agent all at the same time but you don’t need to be. The person that creates the wealth is the one that makes the decisions i.e. you. It’s good to have a bit of knowledge around all the skill sets above so you know how to converse with them, but you don’t have to be a specialist. Think of yourself as the CEO of a business, surrounded by your heads of marketing, accounting, distribution and sales – you just need to be the manager.

5. CONCENTRATE ON WHERE YOU GET YOUR EDUCATION FROM.

from someone that has got what you want (i.e. wealth, freedom, choice) as if they’ve trodden a path themselves, they’re more likely to be able to assist you compared to someone that hasn’t done it for themselves. Our parents always used to go to the bank manager for property advice, but as full-time employees that concentrate on protecting the banks money, are they the best to advise on what creates wealth so you can leave your full-time job? The economy and property market are constantly changing and so we all need to change with the times. An education is for life, not just for school and those that are more active, have a higher chance of success than those that bury their

Friends, colleagues and family

heads in the sand. Just remember, if

are the most common sources of

nothing changes, nothing changes.

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

information as we think we can

10 years as the host of ‘Your Property Empire’

trust them, they have out best

on Sky News Business channel, where

interests at heart and they’ve

he’s interviewed various heads of property

always got an opinion. But are they

research companies and major industry

qualified to give us advice? I would

figures. Chris is a qualified accountant,

suggest that you should get advice

buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on

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Facebook: @ChrisGraySydney CENTURY 21

CELEBRATING 50 YEARS

P R O P E R T Y M A R K E T U P DAT E

AUCTION DWELLING VALUES FINISH THE FINANCIAL YEAR 13.5% HIGHER. National home values rose 1.9% in June, taking annual growth to 13.5% for the financial year. The growth in Australian dwelling values was led by houses, which rose 15.6% over the year, compared to a 6.8% lift in unit values. CoreLogic Head of Research

BY ELIZA OWEN, HEAD OF AUSTRALIAN RESEARCH, CO R E LO G I C

Darwin maintained the highest

In addition to these strong demand

annual rate of growth across the

conditions, Ms Owen noted total

capital cities, increasing 21.0%

advertised stock remains relatively

in value over the financial year,

low. “The latest listings count from

followed by Hobart (19.6%). Across

CoreLogic indicates that in the 28

regional Australia, regional NSW

days to June 27th, total advertised

had the highest annual growth in

stock remained 24.4% below the

dwelling values (21.1%), followed by

five-year average. This dynamic of

regional Tasmania (20.8%).

strong consumer demand, and low

Ms Owen reaffirmed the strong demand-side factors underlying

housing supply, continues to create some urgency among buyers.”

growth. “Before the recent

Despite another month of strong

uncertainty of growing COVID-19

gains, there are signs that some

case numbers, there were plenty

heat is coming out of the market.

of demand-side factors driving

The monthly change in Australian

housing market growth through the

home values of 1.9% sits well above

housing boom was winding down

first half of 2021.

the decade average (which is 0.4%).

after a period of exceptional growth.

“In May, the unemployment rate

However, there are some markets

fell to 5.1%, and the underutilisation

where performance is starting to

rate fell to 12.5%, the lowest level

ease more notably.”

since February 2013. Consumer

Each of the capital cities saw an

confidence remained elevated

for Australia, Eliza Owen noted “This is the highest annual rate of growth seen across the Australian residential property market since April 2004, when the early 2000’s

uplift in dwelling values in June, ranging from a 3.0% rise in Hobart to a more subdued 0.2% lift in Perth. The performance gap has narrowed between regional Australia and the capital cities, though regional Australia did outperform slightly in monthly growth terms, rising 2.0% through June compared to 1.9% across the combined capital cities.

through June, although down from the recent April highs. Elevated savings accumulated through COVID restrictions last

However, this month’s growth rate is down 30 basis points from May 2021, and 90 basis points from a recent peak in March 2021. The only capital city to see a further increase in the monthly growth rate was Canberra, where dwelling values were 2.3% higher over June, compared with a 1.7% gain in May.

year, along with a more confident consumer sector, has encouraged consumption of larger goods, such as housing. This has all occurred against a back-drop of continued low mortgage rates, which is one of the most significant demand drivers.”

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Click here to read the full article

MOVING TIPS

TAKE THE STRESS OUT OF MOVING HOUSE. Most people think of moving house as a stressful time. But it doesn’t have to be that way. Here are some simple things you can do to get ahead of the hassles and make light work of your move. If you get onto them now, you can avoid any headaches later. 1. MAKE A CHECKLIST

definitely thank yourself when it’s

make sure to plan out your parking

time to unpack. Label your boxes on

spot ahead of time. Check to see

the sides too, so you can see what’s

if there’s a free space to park the

in them even if they’re stacked.

moving truck as close as possible to your new home, to help your

3. PACK SOME ESSENTIALS After an exhausting move, you don’t want to be rummaging through boxes trying to find your

helps you plan ahead – and it makes your move that much easier. This includes things like booking a removalist or cleaners, and even getting your essential connections sorted – like electricity, gas and internet, which home moving services like connectnow can help you with.

2. LABEL BOXES It’s best to label your boxes before you start packing, so you know what should go in them and where to put them in your new place. You’ll

removalists get the job done faster – saving you time and money. If it’s a busy area, you may need to organise a reserved park.

phone charger or some toilet paper. Pack an essentials kit with necessities like medications, important documents, toiletries,

For further information, visit www.connectnow.com.au or

Moving home s

a change of clothes, towels and

call 1300 554 323.

bedding, and coffee of course.

Making a simple checklist of what you need to do before you move

BY CONNECTNOW

4. TAKE MEASUREMENTS

No need to make mul calls to connect your.

There’s nothing worse than turning up to your new home and realising

that your couch doesn’t fit through

the front door. Measure the spaces

between any doorways or stairwells

ABOUT THE CONTRIBUTOR

beforehand and compare with your

Connectnow is a free* utility connections

furniture. If they don’t fit, then at

service that helps make moving easier for

least you have time to find another

Australians by sorting their electricity,

way to get them in before moving day.

gas, internet, pay TV, and home phone connections all in one simple call. With over 19 years’ experience, connectnow

5. SAVE YOURSELF A PARK

works with a range of trusted service providers to deliver a quality home moving

The last thingElectricity you need when you’re Gas service. moving is a hefty parking fine, so

Internet

Pay TV

www.connectnow.com.au *While their services are free to their clients, standard service provider connection fees and charges may still apply.

Save time and choose from our panel of trust in one simple phone call. C21 MARKET PULSE

CENTURY 21

Visit connectnow.com.au or call 1300 554 3

Your essential home moving needs sorted in one phone call.

soon?

ltiple r...

Electricity

Help make your move easier with our free utility connections service*. Gas

Internet

With over 19 years’ experience, we work with a range of trusted service providers to deliver you a quality home moving service. Visit connectnow.com.au or call 1300 554 323 to get things sorted today.

Pay TV

Home Phone

And more...

Home Phone

ted service providers *While our services are free to you, standard service provider connection fees and charges may still apply.

323 to get things sorted today.

Real estate's personal.

REI Super makes super easier because we ‘get’ real estate. In 1975, REI Super was built to serve you and your industry. That means you get personal service, strong, long-term performance and tailored insurance which allows for commissions.

Join now at reisuper.com.au/join-today

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. July 2021. REIS 7126

INVESTING IN SUPER

INVESTING IN SUPER USING EMPOWERING Real estate's personal. SUPER RULES. People sometimes think of super as a closed box. But it’s actually the opposite as Australian super rules are very empowering for individuals.

amount into your super, you can

Annual non-concessional

increase your contributions in

contribution caps (or limits):

following years by those unused amounts (for a maximum of five years, after which they will expire) by

Amounts over the non-concessional

This means that the 2020 financial top-up your super contributions by

favourable tax treatment over time,

the carry forward amount.

and there are two super rules you

Annual concessional contribution

on your financial situation, these two rules could be used together, or singly. As with any financial situation, be to inform your decisions. Don’t

caps (or limits): Financial year

Contribution cap

2018 - 2019

$25,000

2019 - 2020

$25,000

2020 - 2021 REI Super makes super easier $25,000

because we ‘get’ real estate.

sure to seek financial and tax advice

2021 - 2022 onwards

$27,500

itself with many advantages, and you

(AFTER TAX)

have the power to direct it.

Those under 65 years old can

If you have a total super balance

$110,000

cap are taxed at 47% for the 2021–22 financial year. Essentially, those who use the rule are ‘bringing forward’ their next two years of caps into the current year. It’s worth noting, if you trigger the bring-forward rule, the concessional contribution cap for the financial year that it was triggered will still apply, even if the following year (e.g. 2021-22) the concessional contribution cap increases.

Find out how In 1975, REI Super was built to serve you and your industry. That means you get personal service, strong, long-term performance and tailored insurance which allows formore commissions. to your

BRING-FORWARD RULE forget that super is an investment Join in now at reisuper.com.au/join-today

CATCH UP ON CONTRIBUTIONS (BEFORE TAX)

contribution cap

This rule applies from 1 July 2018.

you have that may offer you a

financially benefit you. Depending

Non-concessional

2021 - 2022

year is the first year in which you can

right now, and into the future, to

Financial year

using the carry-forward rule.

Your super could be the investment

might be able to take advantage of

BY REI SUPER

you can start adding super now at: www.reisuper.com.au/start-now

bring forward future annual non-concessional (after tax) contributions cap entitlements,

of less than $500,000 from the previous financial year, you can carry-forward any unused concessional caps on a rolling 5-year basis. This means if you don’t contribute

based on their total superannuation

DISCLAIMER

balance as at 30 June the previous

The information contained in this article does not constitute

financial year. This could mean up

to the accuracy, completeness or currency of the information

financial product advice. REI Super does not give any warranty

to $330,000 – or three times the

provided. Although REI Super makes every reasonable effort

2021-22 $110,000 annual non-

aware that there is still the possibility of inadvertent errors and

concessional contributions cap –

purposes only. They are not to be taken as personal advice and

into your super in one financial year.

take into account your individual needs, objectives or personal

to maintain current and accurate information, you should be technical inaccuracies. These case studies are for illustrative are intended to provide general information only. They do not circumstances. You should assess whether the information is appropriate for you and consider talking to a financial adviser

the maximum annual allowable

before making an investment decision. Past performance is no indication of future performance. Member should obtain and read the Product Disclosure Statement for REI Super before

C21 MARKET PULSE

making any decisions. REI Superannuation Fund Pty Ltd ABN

CENTURY 21

68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), RSE R1000412, SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129. July 2021.

BAT H R O O M T I P S

SEVEN WAYS TO MAKE THE MOST OF A SMALL BATHROOM Make sure your cosy bathroom reaches its potential with savvy design ideas that push the boundaries to deliver big appeal.

BY HOME BEAUTIFUL

Sliding doors aren't intrusive and can

recess into a 900mm x 900mm

be pushed back when not in use.

space, but 900mm x 1200mm is far more comfortable

2. ADD LITTLE LUXURIES

• The dimensions of an average bath

Smaller proportions can offer big

are 1500mm x 720mm x 400mm

benefits. With less space your

deep

budget will stretch further, opening

• For comfort and ease of cleaning,

Space is often at a premium

up possibilities for bespoke finishes,

in powder rooms and second

designer tiles and tap-ware. Luxuries

bathrooms, yet this doesn't have

aren't lost either. Heated towel rails,

to affect style and functionality.

beautiful accessories and fragrant

When planning an update, start by

candles work wonderfully together

nearest wall or other objects

creating a floor plan to determine

to create a mini pamper zone. If it's a bathroom just for two, the

• The minimum distance between

the dimensions you have to work with and what will fit in. Here are

sense of intimacy can be further

seven key design ideas to stretch

accentuated with double shower

your space and inject plenty of

heads and basins, furniture for bath-

style.

side conversations and vanities with personalised features such as smart

1. TAKE STOCK Consider who will be using the room, how often and what you need. "If it

speakers and LED lighting.

For a bathroom to be user-friendly

and more durable finishes will be a

and comfortable, factor in sufficient

top priority," says Darren James of

spacing between fittings and

Interiors By Darren James. "If it's a

fixtures. Use these guidelines as a

guest bathroom or powder room, it's

rule of thumb:

the focus can shift to creating a more luxurious feel." Where space is limited, you'll need to consider all the angles. "Ensure you allow adequate clearance for bathroom and shower doors and don't forget vanity unit doors, too," advises Belinda Geels of Reece.

the front of the basin and the

the back wall of the toilet and the opposite wall is generally 1500mm however, spacing requirements are influenced by the location of the doorway and position of the toilet.

4. SHOW OFF THE FLOOR the larger the room will feel, so opt for floating cabinetry and vanities and wall-mounted basins and accessories," suggests Lee Hardcastle of Enigma Interiors. "If you only have room for a shower,

• The standard size of a powder room with a toilet and small vanity is 2m x 1m • The average size of a small bathroom is 3m x 2m, a standard bathroom 3.5m x 2.5m and a large one 4m x 5m • At a squeeze, you can fit a shower

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• Ideally, leave one metre between

"The more floor you can see,

3. KEY MEASUREMENTS

is a second family bathroom, storage

likely to be used less and therefore

allow 450mm either side of the toilet

CENTURY 21

ensure it's as spacious as possible by creating a wet area with a frame-less screen." If you have room for a bath, free-standing styles with feet create a feeling of space. When it comes to toilets, in-wall cisterns are the least obtrusive on a floor plan.

Click here to read the full article