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 Chris Gray Tim Lawless Sarah Barton Nicola Conville Connectnow Mobilia Group
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia
WELCOME TO THE
MARCH 2021 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
PROPERTY INVESTING
02-03
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AUTUMN GARDEN
Top tips for first-time property investors.
5 Top autumn garden projects.
Your Empire CEO, Chr is Gray
Home Beautiful Digital Content Editor, Nicola Conville
PROPERTY MARKET UPDATE
05
MOBILIA GROUP
House values rise at the fastest rate in 17 years.
Advantages of property styling with Mobilia
Corelogic Head of Research, Tim Lawless
Group. Mobilia Group Business Relationship Manager,
PROPERTY INSURANCE
06-07
Deema Charara
Insurance explained. Terri Scheer Insurance Distribution Channel Manager Sarah Barton
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PROPERTY INVESTING
TOP TIPS FOR FIRST-TIME PROPERTY INVESTORS B Y C H R I S G R A Y, C E O, YO U R E M P I R E
With property prices expected to rise in most parts of Australia for the next few years, how can first-time property investors make sure they make the right decision when spending such a large amount of money? It’s good to get as much information as possible when investing in property, but those new to the market need to realise they’re
time. Consult real estate, local
unbiased assessment of a property’s
government and council websites to
true value.
get an idea of which suburbs have the best growth prospects. Similarly, centre your search on properties that prospective tenants would find appealing, such as those with multiple bedrooms, easily accessible parking and plenty of nearby amenities. After all, a tenanted property means a reliable income stream.
ESTABLISH A SAVINGS STRATEGY As the current housing market presents a considerable challenge for young people, first-time investors should determine a savings goal well in advance. That way, they can develop healthy savings habits early on. These can take time to develop, regardless of whether
CONCENTRATE ON THE NUMBERS
funds are being borrowed from family or the bank. However, the
Many first-time investors fall into
sooner the habit of setting aside
the trap of making an emotional
money from wages each month
purchase decision, leading them
is established, the better. When
to pay more than a property’s
developing a savings plan toward a
true worth. While a property’s
future investment, make sure you
appearance and lifestyle benefits
account for rising prices – by the
property and then third and so on.
are important, it is essential to
time you save a deposit, a property
concentrate primarily on what
could easily be $50k-100k more.
KNOW WHAT YOU'RE LOOKING FOR
the numbers say. If you’re unsure,
never going to get 100% perfect information and so better to learn the bare essentials and then jump in before prices get away from you. You’ll then gain more information before purchasing your second
Establish which suburb and type of property you would like to invest in early on as this will save
consult an independent valuer. They should have a good understanding of the typical prices in your area and will be able to provide you with an
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EDUCATE YOURSELF ABOUT THE SALES PROCESS Auctions and private treaties can be a daunting prospect, especially
if you have never purchased a property before. To ensure a good deal, it’s important to get familiar with different sales methods as this will give you greater confidence when it comes to making an offer. If you have the time, it’s also worth attending a couple of auctions in advance to observe different styles of bidding. When auction day comes around, stick to your budget, maintain a level head, and remember there will always be another property.
CONSULT THE PROFESSIONALS Getting advice from a team of professionals, such as engaging a buyer’s agent, professional valuer, and building inspector, will help you find the perfect investment faster. While these experts come at an added cost, they can be well worth the investment. For instance, a buyers’ agent can manage the property searching and sales negotiation process on your behalf and will often have access to properties before they hit the
HAVE YOUR FINANCES PREAPPROVED
market, giving you an edge over
Time is of the essence when
a real estate agent. Even if you don’t
negotiating a property sale – you can often secure a lower purchase price by having a signed contract a few hours before someone else. Many buyers spend large amounts of time looking for a property only to have their mortgage application rejected. Having pre-approved finance gives you the ability to move quickly and lock in a purchase when you find a good property.
other buyers. It’s also worth taking the time to build a relationship with end up buying the property they are showing you at present, they have a thorough understanding of the market and the property supply and demand in a given area.
the property is 100 per cent perfect – a place that’s liveable enough to rent out straight away is often the most realistic and affordable option for new investors. If you have an eye for improvements, investing in a place that needs some renovations presents a real opportunity for equity. However, when purchasing a property to ‘flip’, beginners should start off with small improvements rather than a complete renovation. That way, not only can you take your time saving and planning for a complete renovation but seeing the difference between the property’s actual worth and what you can make it worth enables you to fall in love with your first investment, as you envision its full potential. One of the great things about residential property is that even if you do make a mistake, if you hang
CONSIDER A SECOND-HAND INVESTMENT
on to it long enough, virtually every property will be worth more in the future. So don’t worry about being
Remember, your first investment is
a perfectionist and do whatever you
not going to be your home for life.
can to get into the market if you
Do not worry if not everything about
believe proeprty will continue to rise in the future.
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
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Facebook: @ChrisGraySydney CENTURY 21
Visit: C21.com.au
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P R O P E R T Y M A R K E T U P DAT E
HOUSE VALUES RISE AT THE FASTEST RATE IN 17 YEARS Australian home values surged 2.1% higher in February; the largest month-on-month change in CoreLogic’s national home value index since August 2003.
BY T I M L AW L E S S , H E A D O F R E S E A R C H , CO R E LO G I C
Sydney and Melbourne were
phase of the growth cycle. Regional
among the strongest performing
areas generally recorded less of a
markets, recording a 2.5% and
decline in housing values through
2.1% lift in home values over the
the worst of the COVID period last
month respectively, as Australia’s
year, while also showing an earlier
two largest cities caught up from
and stronger growth trend through
weaker performance through 2020.
the second half of last year. This
The quarterly trend however, is still
regional preference is reflected in
favouring the smaller cities; Darwin
the annual growth trend, where the
Spurred on by a combination
housing values rose 5.5% over the
combined regionals index is 9.4%
of record low mortgage rates,
past three months, Hobart values
higher while the combined capital
improving economic conditions,
rose 4.8% and Perth was up 4.2%.
city index is up a much smaller
government incentives and low advertised supply levels, Australia’s housing market is in the midst of a broad-based boom.
“Whether this new found growth
2.6%.
in Sydney and Melbourne can be
A housing market trend that has
sustained is unclear. Both cities
persisted through the COVID period
are still recording values below
to-date is the weaker performance
Housing values are rising across
their earlier peaks, however at this
of unit markets relative to detached
each of the capital city and rest
current rate of appreciation it won’t
housing. Across CoreLogic’s
of state regions, demonstrating
be long before Australia’s two most
combined capitals index, house
the diverse nature of this housing
expensive capital city markets
values (+4.4% over the past three
upswing.
are moving through new record
months) have recorded a growth
According to CoreLogic’s
highs. With household incomes
rate more than three times higher
expected to remain subdued and
than that of its unit counterparts
stimulus winding down, it is likely
(+1.4%). There are some tentative
affordability will once again become
signs this trend could become
a challenge in these cities,” Mr
less obvious, with Sydney unit
Lawless said
values recording their first month
research director, Tim Lawless, a synchronised growth phase like this hasn’t been seen in Australia for more than a decade. “The last time we saw a sustained period where every capital city and rest of state region was rising in value was mid-2009 through to early 2010, as post-GFC stimulus fueled buyer demand.”
Regional markets (up +2.1% over the month) have continued to show a higher rate of capital gain relative to the capital cities (up +2.0%), however the performance gap has narrowed compared with the earlier
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of growth since April last year and Melbourne unit values recording their largest gain since late 2019.
Click here to read the full article
PROPERTY INSURANCE
INSURANCE EXPLAINED
BY SARAH BARTON,
INSURANCE DISTRIBUTION CHANNEL MANAGER, TERRI SCHEER Many landlords and property managers value the peace of mind that comes with knowing their rental properties are adequately insured.
often cover landlords for the specific
wall coverings, curtains or removable
risks associated with owning
flooring such as carpet or floating
rental property.
floors.
These risks include damage to the
This means that if a tenant damages
property by a tenant, loss of rental
the property or simply stops paying
income as a result of property
their rent, the landlord may be left
damage or a tenant absconding and
out of pocket if they don’t have
But with different insurances
legal liability for occurrences on the
landlord insurance in place.
available, it can be difficult to know
rented property that cause death or
which types of policies are best
bodily injury.
suited to landlord needs.
Confusion about the level of cover provided by strata insurance can
Landlords need specialised landlord
leave landlords at risk of legal
When it comes to building, strata
insurance if they want to be covered
liability claims.
and landlord insurance, how do
for these types of risk.
landlords find their way through
STRATA INSURANCE
the maze?
STANDARD BUILDING & CONTENTS INSURANCE Standard building and contents insurance is primarily designed for owner occupiers and is the type of policy that most people have to cover their free-standing home and
If a tenant or visitor injures themselves in a common area of
In a strata-titled apartment situation, strata insurance is held by the body corporate and paid for by owners’ levies. Under a strata title, the body corporate is legally responsible for insuring the buildings at the stratatitle site, as well as the owners’ legal
personal possessions.
liability for common property areas.
A standard home and contents
This includes insuring the roofing,
policy might offer insurance cover for the building when occupied by
walls and the owners’ legal liability for shared walkways and common
the strata title development such as a shared walkway, any subsequent legal liability claim should be handled by the strata insurer. But if a tenant or visitor injures themselves while they are inside a rented apartment, it is the landlord who can be found liable. In order to be covered for legal liability inside the rented apartment, the landlord will ordinarily need a separate landlord insurance policy.
a tenant, but is unlikely to provide
garden areas.
LANDLORD INSURANCE
cover for many actions by the tenant
However, strata insurance usually
Landlord insurance is specifically
that can result in financial loss for
doesn’t extend to cover the interior
designed to cover landlords against
the landlord. As a result, it won’t
of individual units including internal
listed actions by tenants. In the case
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of a stand-alone building, it can also
suffer financial hardship that leaves
loss of rent if the tenant absconds
cover the building itself.
them unable to pay the rent.
or dies, if they leave the property
Some of the specific risks that
Landlords who don’t have landlord
landlords face are damage by
insurance really should think about
a tenant, theft, legal liability (as
how they would manage if they were
landlords) and loss of rental income.
faced with these types of financial
These risks are specific to landlords and unlikely to be covered by standard building and contents insurance or strata insurance policies.
product disclosure statements
It’s always a good idea for landlords to read over the policy wording they purchase decision.
accidentally damage a property or
to an insured event occurring.
WHICH LANDLORD INSURANCE POLICY SHOULD YOU CHOOSE?
aware of the availability of insurance
Even the best tenant can
the rented property is prevented due
Landlords should always read their
are interested in, before they make a
designed to address these needs.
to damage are made, or if access to
losses.
Because of this, landlords should be policies that are specifically
unable to be tenanted while repairs
For example, different insurers will have varying conditions and definitions for loss of rent cover. Not all policies include cover for
carefully so they know what they are and aren’t covered for.
For further information, visit www.terrischeer.com.au or call 1800 804 016. Click here to read the full article: https://www.terrischeer.com.au/ insurance-explained/
ABOUT THE CONTRIBUTOR Terri Scheer Insurance Pty Ltd ABN 76 070 874 798 (Terri Scheer) provides insurance cover for landlords, helping to protect them against the risks associated with owning a rental property. These include malicious damage by tenants, accidental damage, landlord’s legal liability and loss of rental income. Terri Scheer acts on behalf of AAI Limited ABN 48 005 297 807 AFSL 230859 trading as ‘Vero Insurance’, the insurer which issues the insurance cover. Terri Scheer has not taken into account the reader’s objectives, financial situation or needs. If you are interested in any of Terri Scheer’s insurance products, the relevant Product Disclosure Statement should be considered first. It can be viewed online at www.terrischeer.com.au or obtained by calling 1800 804 016. Based in Adelaide, Terri Scheer services all states, territories and capital cities.
DISCLAIMER The information contained in this article is intended to be of a general nature only. Terri Scheer does not accept any legal responsibility for any loss incurred as a result of reliance upon it. Insurance issued by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 C21 MARKET PULSE
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016 or visit our website at www.terrischeer. com.au for a copy.
AUTUMN GARDEN
5 TOP AUTUMN GARDEN PROJECTS Autumn is one of the most relaxing and delightful times to be in the garden. The mornings are pleasantly cool while the daytime sun has lost its summer sting making it the perfect time to also be working in the garden.
1. SHOW YOUR LAWN SOME LOVE
BY NICOLA CONVILLE,
D I G I TA L C O N T E N T E D I TO R , H O M E B E AU T I F U L
2. START A COMPOST HEAP
4. PLANT TREES AND SHRUBS
Autumn is a great time to be looking
Did you know that now is one of
at establishing a compost heap. At
the best times to be planting many
the simplest level a compost heap
trees and shrubs? The air and soil
needs a combination of what’s often
are still warm enough to allow for
called ‘green and brown material’
development and establishment
– green, moist nitrogen-rich fresh
and soil stays moist with lower
material and brown, dry carbon-
evaporation, reducing stress on new
dense material – to function well.
plants. You may not notice much
All of those diced-up fallen leaves
growth before winter but come
and lawn clippings from your lawn-
spring autumn planted shrubs and
mower catcher are an ideal starter
trees will take off fantastically.
Remember All too often lawns
for a compost heap. Come spring
are neglected at this time of year,
you should have a nice pile of rich,
however, by lavishing a little TLC to
home-brewed material ready for
on your lawn, it will reap benefits
adding to the veggie garden.
well into spring. It’s important to apply a quality slow-release lawn food. This will allow your grass to top up its energy reserves after a
3. PLANT SPRING FLOWERING BULBS
5. PROJECT PLANNING Here’s a project everyone can enjoy – relaxing and observing. Now is the ideal time of year to be chilling-out in your garden and thinking about the next project
It’s not too late to add one of the
you may want to undertake. Many
single most spectacular spring
of the garden projects that require
displays you could ever wish for
a bit of hard work are best left for
– spring flowering bulbs. You’ll
the cooler months meaning now is
If your lawn is looking a little patchy
find bulbs in virtually every flower
perfect for planning and working
after the wear-and-tear of Summer
colour in the rainbow in most
out budgets. Looking at a new lawn?
then grab your garden fork and
garden retailers or online. Some
Set it out now so that in late winter
open that soil up before raking over
of the traditional, such as jonquils,
you can do the spade-work to lay it
some clean, dry river sand. This
daffodils and freesias, can be left
as soon as the weather warms up.
will open the soil up, aerating it,
alone post-flowering to naturalise in
Whatever your garden ambitions,
improving air, water and nutrient
the garden, whereas others, such as
now is the time to put pencil to
movement. Finally, make sure your
tulips, will need lifting and storing in
paper and start turning them into
lawn is getting maximum exposure
all but the coolest areas.
reality for next spring.
long, hot summer and store some energy, improving its resilience, for the winter ahead.
to sunlight by keeping it free of falling leaves.
https://www.homebeautiful.com.au/autumngarden-projects
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MOBILIA GROUP
ADVANTAGES OF PROPERTY STYLING WITH MOBILIA GROUP Property styling is all about showcasing the very best features of your home and making a memorable impression on potential buyers. Investing in a professionally styled furniture package from Mobilia Group means that your home is presented in the best possible light. BOOST YOUR SALE PRICE BY UP TO 12.5% Recent surveys of top real estate agents in Australia found that styling your home could increase the final sale price by between 7.5% and 12.5%.
90% OF BUYERS CAN’T VISUALISE AN EMPTY PROPERTY
STAGED HOMES SELL UP TO 3X FASTER
An empty or cluttered home
Over 85% of agents would agree
simply does not sell as quickly. The
that staged homes sell faster than
majority of potential buyers are
an empty one, which is ultimately
unable to visualise the potential
the end goal for any vendor.
of an empty space, which holds them back from forming any kind of emotional connection with the home.
STAND OUT FROM THE CROWD With Mobilia Group you can go one step further to make your sale
Buyers like to see and understand
unique and maximise your profits
how each room of the house could
with our Turnkey package, giving
be used, how their furniture could
your purchasers the peace of mind
fit into the space and what kind of
of purchasing a fully furnished
floor plan works best - they want to
property, and with our buy now pay
be able to imagine themselves living
later option, approved applicants
there. Remember, buyers aren’t just
have up to settlement or 107 days to
hunting for a home, they’re looking
finalise payment.
for a lifestyle.
Call Deema on 0450 493 166 to discuss your styling package
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*While our services are free to you, standard service provider connection fees and charges may still apply. Water connection services only available in Victoria.