M A R C H
M A R K E T
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P U L S E
C21
PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Natasha Reneker Real Estate Business Tim Lawless Chris Gray Bradley Beer On The Move
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia
WELCOME TO THE
MARCH 2020 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
C O N T E N T S M A R C H
SUBURB SPOTTING
02-03
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FURNISHED OR UNFURNISHED
How to spot a suburb that's about to take off.
Furnished Properties and depreciation.
Home Beautiful Magazine Editor, Natasha Reneker
BMT Tax Depreciation, Bradley Beer
EXPANDING NETWORK
04
DOWNSIZING 10
Established independent joins franchise.
How to downsize.
Real Estate Business
On The Move
PROPERTY MARKET UPDATE
05
PROPERTY 12-13
Values across five of eight capital cities reach
How important is marketing your property?
record-high in February.
As featured in the March edition of
Corelogic Head of Research, Tim Lawless
Home Beautiful Magazine
SIGN OF THE TIMES
06-07
Is this the perfect storm? Your Empire CEO, Chris Gray
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SUBURB SPOTTING
How to spot a suburb that’s about to take off BY N ATA S H A R E N E K E R , EDITOR, HOME BEAUTIFUL MAGAZINE
Buying into an area as it’s about to bloom can be a fantastic opportunity, but as the real estate market seemingly has a life of its own, it can be tricky to predict where the next hot spot will emerge. If you’re looking to buy your first property or move from your current home, take note from savvy investors and keep an eye out for these tell-tale signs that indicate an
Enter the builders
New kids on the block
From abandoned warehouses and
Oftentimes, young people are priced
neglected blocks to old homes
out of established markets, leaving
in desperate need of a makeover,
them with no other choice than to
many areas that have seen a huge
set up home in a more reasonably
surge in popularity emerged out
priced area. And the same holds true
of a shabby past. Keep an eye out
for artistic types. The huge upside
for construction in less desirable
to having these demographics settle
suburbs, be it the remodelling of
into an area is that bars, restaurants
industrial spaces, the creation of
and other businesses are sure to
green areas, or locals tidying up their
follow. They also bring an upbeat,
homes, as they are good indications
creative flair that sooner or later will
both the council and locals are
ripple out across the suburb and,
investing into their area.
before you know it, the next hot spot in the market will have been
area is about to take off.
revealed.
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Going, going, gone!
schools, medical facilities, childcare,
A sure-fire way of finding out if an area is on the rise is to window shop at local real estate agents. Charles Tarbey, Chairman of Century 21 Australia, says: “When an area is about to take off, agents will be marketing themselves strongly.
supermarkets and other retail stores are basic needs that can make or break a suburb. Without decent infrastructure in the area, a property is much less likely to gain in value, which will make re-sale all the more difficult.
You will also see an abundance
The tricky part about investing
of properties advertised in their
in an up-and-coming suburb is
windows with SOLD stickers.”
finding the sweet spot in timing.
Agents will also be able to share
Many areas will only appear on the
their knowledge of development
radar once they have started to take
plans, so it’s worth taking the time to
off, meaning you may have missed
speak to them about recent market
the window of opportunity to land
shifts and planned movements.
yourself a profitable investment. But buying too early may involve a long waiting game and leave you living
At your service
in an area you would rather not be
Buying into an area lacking in
in. So, when is the optimal time to
amenities can be a risky business, so
buy? “When there is an abundance
a visit to the local council to enquire
of property on the market,” says
about plans for developing new
Mr Tarbey. “In a buyers’ market,
infrastructure or improving what
your ability to negotiate improves
already exists is essential. Services
dramatically.”
such as a public transport network,
ABOUT THE CONTRIBUTOR Home Beautiful is Australia’s fastest growing homemaker brand. With beautiful original photography, gorgeous styled stories and signature inspirational how-tos, Home Beautiful is simply one of the most loved, most recognised and commercially successful brands in Australia. Article Link: https://www.homebeautiful.com.au/ top-suburbs-to-buygrowth?category=open_homes
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EXPANDING NETWORK
ESTABLISHED INDEPENDENT JOINS FRANCHISE Shaun Pereira has always been an independent agent, but his market reach limited his success. Mr Pereira thrived as an independent agent, and he quickly learnt what he needed to drive
business the way Mr Pereira used
know how to put a deal together,
to run his own business, which drew
and then show them the stuff from
him towards the company.
the franchise, that helps.”
The new Harrington Park office
Additionally, he is confident he
in NSW has been open for three
has not lost his freedom to give his
weeks, and Mr Pereira has already
clients the best results.
noticed the benefit the brand has brought when dealing with vendors.
He noted that other franchises that approached him showed their
his success. But the one thing he
He can show them how the
“cookie-cutter model”, and that was
was missing in his business was
Century 21 system works, and that
not the approach Century 21 took,
market reach.
it has about 250 offices across
which impacted his decision.
“As an independent, we can’t seem to get that reach global brands can get,” Mr Pereira told REB.
Australia, which gives vendors extra confidence to get them over the line, he said.
franchise, Mr Pereira
franchises approached him, he decided to join Century 21 after he met with the brand late last year. “We were
is encouraged
“We were approached by a number of franchises in the past, and I didn't feel that comfortable with them as I did with C21.”
that Century 21 will not hinder the benefits that came with being independent, such as building the
approached by a number of franchises in the past, and I didn’t feel that comfortable with them as I did with C21,” he said. He pointed out that Charles Tarbey owns the brand, and he runs the
consistent, the brand is flexible; they encourage agents and
Although he is now with a
Although several
As long as the branding is
agent’s brand.
principals to think outside the box, he said. “We will maintain our client focus and results-based approach, and now with a global brand behind us, further enhance the experience we are providing to customers,” Mr Pereira said. “We are having a good response from clients walking in our open homes.”
“The agent is the brand, and I encourage the guys in the office to build a profile,” he said. “Ultimately, we are here to serve the client. And if you look for that competitive edge, if you have a proven track record that shows you
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The story Established independent joins franchise, first appeared on Real Estate Business. Article Link: https://www.realestatebusiness.com. au/breaking-news/19531-establishedindependent-joins-franchise
P R O P E R T Y M A R K E T U P DAT E
VALUES ACROSS FIVE OF EIGHT CAPITAL CITIES REACH RECORDHIGH IN FEBRUARY The Corelogic February 2020 Home Value Index results released today confirmed that nationally, housing values surged by 1.1%, with values across five of Australia’s eight capital cities reaching a record-high. A rebound in the pace of capital gains across the Australian housing market throughout February saw the national index rise by 1.1% over the month, with the strongest capital gains continuing to emanate from Sydney (+1.7%) and Melbourne (+1.2%), while the remaining capital
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
with larger falls in Sydney (-14.9%)
the past three months, Sydney
and Melbourne (-11.1%).
housing values could stage a
While there is large variability in capital growth from region to region
nominal recovery by the end of May this year.
and across the product types, every
Further evidence that the long-
capital city excluding Darwin is
running downturn is over for the
showing an upwards trajectory,
Perth housing market was revealed,
demonstrating a geographic
with dwelling values increasing
broadening in the recovery as low
by 0.3% in February, marking four
mortgage rates and better access to
consecutive months where dwelling
housing credit fuel buyer demand.
values have avoided a fall; a trend
Since finding a trough last year, the national index finished February only 1.2% below its 2017 peak. According to CoreLogic head of research Tim Lawless, “At the current run rate of growth, the national index is likely to reach a
not seen since the market peaked in mid-2014. Tim Lawless said, “Although Perth values are now trending higher, the recovery period is likely to be a long one, with Perth housing values remaining 21.0% below their peak.”
new nominal high over the next
Regional markets are generally
with Darwin the exception where
two months.”
lagging behind the capital cities,
home values were down 1.4% over
Melbourne was the most recent
the month.
city to stage a nominal recovery
On an annual basis, both Sydney
with housing values surpassing the
cities recorded a more modest rise,
and Melbourne moved back into double-digit annual growth rates, with values up 10.9% and 10.7% respectively over the twelve months
September 2017 peak last month.
where housing values are also
The latest results continue the
Despite posting the most rapid
following a peak-to-trough decline of 8.4% in the national index,
compared with a 7.3% rise across the combined capital city markets.
Canberra, Hobart and Adelaide tracking at record highs.
running since June last year,
higher over the past twelve months
Melbourne has joined with Brisbane,
ending February.
recovery trend that has been
with housing values only 1.4%
recovery trend amongst the capitals, Sydney housing values remain 3.7% below the 2017 peak; based on the rate of growth over
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Click here to read the full article
SIGN OF THE TIMES
IS THIS THE PERFECT STORM? B Y C H R I S G R A Y, C E O, YO U R E M P I R E
Chris Gray began his property investing journey when he was 22 years old. With only $35,000, he spent the next nine years learning about investing firsthand, and applying that knowledge to his own portfolio now worth over $15m.
were worried about a potential
1. High Capital Growth
crash afterwards
2. High Rental Yield •
3. Low interest rates
and the Royal Banking
4. Easy to borrow money from banks
Commission which made it harder to borrow. That would
5. Easy to find properties
have been a great time to buy if
I’ve been investing in property for
you could get a mortgage as
almost 30 years and unfortunately,
there was no other buyers in
I’ve never seen such a time and I
the market. Most people that
very much doubt that I’ll see it in the
could borrow, were trying
next 30 years.
to ‘bottom’ the market - nearly
There’s always a reason NOT to buy: “Is now the right time to be buying property?” That’s got to be the
•
number one question I hear around property conversations, second only to “Where should I be buying right now?” Everyone’s got an opinion, especially those hanging around the family BBQ that have probably only bought one property in their lives and still work a 9-5 job.
•
In 2018 and 2019 we had APRA
Since the day after the election
everyone missed it •
Leading up to 2017 was the last
in 2019 the market has
boom. The worry was trying to
got stronger and stronger. It’s
pick where the top of the market
increasingly harder to buy and
was. Looking back in hindsight,
so people think they’ve missed
most properties didn’t drop that
the boat
much and if you still owned it
As we came towards the election, that would have been
now, you would probably have made a profit.
a good time to buy as the change
At the moment it's the C Word
in negative gearing was going
(I don’t want to mention the word
to be grandfathered and so
If there was ever a perfect time to be
as otherwise it will further feed the
buying then would lock you in for
buying property, it would be when
hype). No one knows what’s going
the tax benefits. However,
you have all these five elements:
to happen or how it will affect the
virtually no one bought as they
property market, but then no one
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“I've been investing in property for almost 30 years and unfortunately, I've never seen such a time and I very much doubt that I'll see it in the next 30 years.”
did with the GFC, bird flu, swine flu, SARS etc etc. Sitting on the fence is the easiest thing for everyone to do as it keeps you in your comfort zone and you are surrounded by other people doing the same. Taking some action will set you up for potential criticism or ‘free (unwanted) advice’ from your friends, colleagues and naysayers. As buyers agents we’ve found it harder and harder to buy homes and investments pre-auction as there’s more and more competition and still not much stock on the market. I believe it’s going to get even harder in the next 6, 12, 18 months. So, if the C word does create some temporary uncertainty and a break in the next upswing, I think that could be your perfect storm. My personal strategy is to buy: 1. When I’ve got the cash to
buy, and;
2. When I’ve got the cash to
hold on for the short to
medium term
It’s a very simple strategy but it seems to have worked over 30 years of booms, busts and global scares. It’s certainly not guaranteed for life,
ABOUT THE CONTRIBUTOR
but if you never give it a go, you’ll
Chris Gray is CEO of Your Empire, a buyers’
never have a chance of success.
agency that buys homes and investments for time-poor people – 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, buyer’s agent and mortgage broker. For more information visit www.yourempire.com.au, www.chrisgray.com.au and follow Chris on Twitter: @ChrisGrayEmpire.
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FURNISHED OR UNFURNISHED
FURNISHED PROPERTIES AND DEPRECIATION BY BRADLEY BEER, B M T TA X D E P R E C I AT I O N
There are no right or wrong answers when deciding whether to furnish your investment property. But there could be big tax savings in doing so, making it more appealing.
tenants to move in quickly. Investors often don’t consider
attract tenants looking for a short-term arrangement such as travellers and business professionals who regularly move for work. Furnished properties can
A tax depreciation schedule is the
depreciation deductions available
best way to ensure you claim all
on furniture. If a furniture asset
deductions you’re entitled to. BMT
was purchased directly for an
found residential property investors
investment property, you can
an average of almost $9,000 in first
claim deprecation.
full financial year deductions last
equipment asset. Furniture with
charge a higher rental rate and decrease the amount of time between tenancies by allowing
financial year. For more information request a
a value less than $1,000
quote today or contact the expert
can be deducted
team at BMT Tax Depreciation on
"Furnished properties can also allow you to charge a higher rental rate and decrease the amount of time between tenancies..."
also allow you to
income.
the advantage of additional tax
Furniture is a type of plant and Furnished rentals tend to
how long it can be used to produce
using a low-value
1300 728 726.
pool, allowing it to be depreciated at an accelerated rate 18.75 per cent in the year of purchase, then 37.5 per cent every year following).
Higher valued furniture
ABOUT THE CONTRIBUTOR Article provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief
depreciates at a rate set by the
Executive Officer of BMT Tax Depreciation.
Australian Taxation Office, based
Please contact 1300 728 726 or visit
on each item’s effective life, or
www.bmtqs.com.au for an Australia-wide service.
C21 MARKET PULSE
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DOWNSIZING
HOW TO DOWNSIZE BY ON THE MOVE Downsizing is no longer just an option for empty nesters, but people interested in a more urban lifestyle, or just interested in a simpler life with more financial freedom.
are going to fit in the rooms. Using a floorplan to draw things to scale can help with this too.
REASSESS YOUR BILLS A fresh start is the perfect time to review everything from your
BE FLEXIBLE
insurance provider to your electric,
If you’re having trouble deciding
time to see if you can get a better
on what to take with you or you’re
deal and switch to a company that
not sure how long this arrangement
suits your new home and lifestyle.
gas and water provider. Now’s the
will last, you can always rent a Whatever the reason, the exercise of
storage unit. This will give you the
downsizing can still be a challenge.
flexibility of really seeing whether
Here are some tips to make this
you need certain items or if the
process easier:
new arrangement doesn’t work
START EARLY If you’ve made the decision to downsize, spend some time in advance thinking about what items you want to keep and how things will fit and be organised in a smaller place. This will help to mentally prepare you for the change as well, reducing stress when the actual day arrives.
MEASURE Following on from the above, ensure you measure the pieces of furniture that you are going to take with you and firstly, make sure they are going to fit through the doors of your new
out, you’ll not have disposed of larger necessities.
In the end, you’ll no doubt come through your move with a greater appreciation of a more simple life and hopefully a greater outlook. Think of all the time you’ll save on cleaning and maintenance, and what you’ll be able to do with the savings
ASK FOR HELP
from your household bills!
Moving is always a difficult task and one that you should not have to tackle alone. The physical demands are obvious, but people often forget the mental and emotional stresses. In particular, downsizing can be a very emotionally exhausting exercise as decisions to let things go can be tough and adjusting to a more minimalist life (relative to what you may be used to) can be harder than you think. Contact a professional removalist like, who can help take the stress out of the process.
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.
property. Secondly, make sure they
https://www.onthemove.com.au/
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AS SEEN IN THE FEBRUARY EDITION OF
A DV E RT I S E M E N T
PROPERT Y
ON THE MARKET
GET VISUAL
We’re not suggesting that manifestation is the answer to all your property aspirations, but visualisation is a savvy starting point. Envision your perfect home in all its glory – the size, the style, the suburb… Keep it semirealistic (shelve your Tuscan villa pipedreams for now), but still think freely. This will help tap into your desires and get you thinking about how you want to live. Sure, ocean views may fall outside your budget, but perhaps you’d settle instead for easy access to a beach or bay. Scrawl down all your ideas to refer back to later.
ADD THE NICE-TO-HAVES Below your must-haves, start noting down the features you deem appealing, but not essential. A walk-in wardrobe? You wouldn’t turn it down, but it’s not make
or break. It might be the same for a pool. Interior features could also fall into this category – think hardwood flooring and stone countertops, as well as central air conditioning or a fireplace. Check in with your above-mentioned visualisation notes as you go, picking out the elements that are enticing, but also attainable.
CONSULT THE EXPERTS
Finally, round out your list with a little expert intel. The agents at real estate organisation Century 21 will share some “value” items to consider tacking onto your list. As the name suggests, these are features that will add value to your property over time. Think a great bathroom, dual-pane windows, or close proximity to top schools. While these items shouldn’t take over your wants and wishes, they’re nevertheless worth keeping in mind as you navigate the inspection circuit (now armed with a handy priority list, so you never swerve off course again!)
GO BACK TO BASICS Important considerations are the minimum number of bedrooms, number of bathrooms and their minimum size. Other must-haves might include a garden or deck, off-street parking or an internal laundry. Location may be paramount – perhaps you want to be within walking distance of your children’s school – or maybe you have your heart set on a certain cluster HOW of suburbs. IMPORTANT IS MARKETING YOUR PROPERT Y FOR SALE AND IS IT REALLY WORTH THE INVESTMENT? Also consider liveability: is renovating an option, or are you keen IN ASSOCIATION WITH to find a home and move straight in?
S
elling your home may well be one of the largest transactions you will ever make, and naturally, you want to achieve the highest return possible. While some vendors may initially shy away from the expense involved in marketing their property for sale, the benefits of investing in a strong strategy can be huge. A favourable financial outcome is one reason a marketing plan makes good business sense. The other is a quick, efficient sale. The more exposure your property receives, the more
FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.com.au
A DV E RT I S E M E N T A DV E RT I S E M E N T
interest it will generate, which will increase competition and turn that ‘for sale’ sign into ‘sold’. The best place GET VISUAL to start is by seeking out an agent who not only has a We’re not suggesting that manifestation is the answer strong database, but also maintains a line of contact with to all your property aspirations, but visualisation is a clients. They will know who your potential buyers are and savvy Envision yourand perfect hometoinmatch all will starting leveragepoint. their relationships expertise itsappropriate glory – the buyers size, the the suburb… Keep it semito style, your home. An experienced agent realistic (shelve your Tuscan villa pipedreams for now), will also know how and when to ramp up momentum, but still isthink freely. will helpsale. tap into yourTarbey, desires which critical to aThis successful Charles and get you of thinking about how youadvises want tothat live.“Even Sure,if Chairman Century 21 Australia, ocean views may fall outside your budget, but perhaps there is substantial interest in a property within the first you’d instead for easy of access to a beach or bay.should weeksettle or two, the intensity a marketing campaign Scrawl all yourEssentially, ideas to refer backcampaigning to later. your not bedown reduced.” you are home, so keep interest in your property alive right through to the sale. ADD THE NICE-TO-HAVES Below your must-haves, start noting down the features A MULTI-MEDIA APPROACH you deem appealing, but not essential. A walk-in The ‘for sale’ sign perched outside your property is the wardrobe? You wouldn’t turn it down, but it’s not make first step to generating interest, especially among those who are looking specifically in your area. When it comes to building a marketing strategy with your agent, using a combination of both traditional and digital tools will GO BACK TO BASICS ensure your property is centre-stage where buyers are looking. Of course, the more intricate the marketing Important considerations are the minimum number of bedrooms, number of bathrooms and their minimum size.
strategy, the more expensive it will become. Ultimately, comesItdown wantInterior to pushfeatures for a oritbreak. mighttobehow the strongly same foryou a pool. sale. As Mr Tarbey says: “Most sellers will want to avoid could also fall into this category – think hardwood flooring paying to advertiseastheir however, the most and stonea lot countertops, wellhome, as central air conditioning advertising that one extra buyer orexpensive a fireplace. Check incan withgenerate your above-mentioned needed to create serious competition.” visualisation notes as you go, picking out the elements that are enticing, but also attainable.
YOUR MARKETING CONSULT THE EXPERTS TOOLBOX Finally, round out your list with a little expert intel. The agents at real estate organisation Century 21 will share It paysitems to have photos taken by onto a professional some “value” to consider tacking your list. photographer who will showcase your property As the name suggests, these are features that will addin bestproperty light andover fromtime. its best angles. in a value the to your Think a greatInvest bathroom, quality floorplanortoclose accompany photos. dual-pane windows, proximityyour to top schools. While these items shouldn’t take over your wants and Digital platforms are generally the first port of wishes, they’re nevertheless worth keeping in mind as you call for buyers and can reach thousands of navigate the inspection circuit (now armed with a handy people instantaneously. priority list, so you never swerve off course again!) A combination of both traditional and digital tools will ensure your property pops up wherever buyers are looking.
Other must-haves might include a garden or deck, off-street parking or an internal laundry. Location may be paramount – perhaps you want to be within walking distance of your children’s school – or maybe you have your heart set on a certain cluster of suburbs. Also consider liveability: is renovating an option, or are you keen to find a home and move straight in?
FOR HELP WITH BUYING AND SELLING PROPERTY FOR HELP WITH BUYING AND SELLING PROPERTY VISIT C21.com.au VISIT C21.com.au
Print advertising, particularly local papers are a great way to reach people looking in your area. Consider virtual tours or drone footage.
