M A Y
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 Connectnow SaleFunder Terri Scheer
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600
WELCOME TO THE
MAY 2021 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 M A Y
PROPERTY PRICES RISING
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MOVING TIPS
How can property prices keep rising?
Moving tips that are outside the box.
Your Empire CEO, Chris Gray
Connectnow
PROPERTY MARKET UPDATE
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TAX TIME
Home values continue to rise but the pace of growth
Preparing for tax time.
loses steam in April.
Terri Scheer, Insurance Distribution Channel Manager,
CoreLogic Head of Research, Tim Lawless
Sarah Barton
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PROPERTY PRICES RISING
HOW CAN PROPERTY PRICES KEEP RISING?
B Y C H R I S G R A Y, C E O, YO U R E M P I R E
Property prices are rising in pretty much all suburbs around Australia and it looks as if this upward cycle could well last a few years. So how do real estate prices keep rising, if our wages aren’t keeping up with property price inflation. WE NOW HAVE TWO INCOME EARNERS IN MANY HOUSEHOLDS
OUR BANKS ARE MORE SOPHISTICATED
In the ‘old’ days one spouse would
When I tried to get an investment
go out to work and the other would
property loan in 1994 in the UK,
be at home to look after the kids
none of the banks would offer a loan
and that’s definitely how it was in
and so I had to move to a French
my home. My parents didn’t want
bank. These days, most mortgage
to send us out to daycare, which
brokers have access to 30+ lenders
may not have even existed then
offering all types of loans for
and living in a bigger house meant,
all types of people so no matter
more work to keep it polished and
whether you’re 18, an ex bankrupt,
Our parents generation lived on
ready for the next visitor for a home
self employed or a multiple
the ‘quarter acre block’. These days
cooked meal.
property owner, there should be a
This was brought up many times in my ten years as host of Your Property Empire on Sky News Business and I think the best explanation I heard was from John Edwards, CEO of Residex – the company that analyses and predicts capital growth. Here’s a few reasons why.
WE LIVE IN SMALLER PROPERTIES
many of us live on blocks of land half the size, in semi, townhouses or even units. Most people would rather spend their weekends going out to a café or restaurant than mow the grass in the back yard or cook at home.
MORTGAGE RATES ARE MUCH LOWER If you had a mortgage in the 1980’s or 1990’s you might remember the 15%, 20% or even higher interest rates that many homeowners were paying. That would be very scary for many first home buyers these
loan for you somewhere. More and
THE BANK OF MUM AND DAD SUPPORTS OUR YOUNG Most of the older generation had to save their way to a deposit. Many did buy as the ‘rent money is dead money’ philosophy was drummed into them. Those that did buy are now sitting on a ton of equity. Whereas now we have the spending generation that don’t know how to save and they look to their parents to give them that first deposit to get them on the property ladder.
more lenders can assist with equity release or parental guarantee loans for parents wanting to give their kids a step up.
THE GOVERNMENT WILL GIVE YOU A HELPING HAND It’s in the country’s interest to make sure that property is stable and as many people as possible get into it and have a roof over their heads. It’s good for the economy and it means the government is less likely to have to support people with subsidised
days, with them buying in and only
housing and welfare. For years
paying 2% - 3%.
we’ve had first home owner grants
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and discounted stamp duty to help encourage as many young people as possible into the market. This makes it more affordable for more people, without the need to have such a large deposit. In this weeks budget they announced further assistance for single parents and first home owners.
All of the above are valid examples of why property is likely to continue to rise into the future. The over riding economic law that backs this up is the law of supply and demand. If you’re looking to buy in an area where there’s no more supply of property (due to height limits and it already being fully built up) and
ABOUT THE CONTRIBUTOR
there’s consistent demand
Chris Gray is CEO of Your Empire, a buyers’
(because it’s close to a city with
agency that buys homes and investments
many industries and highly paid
for time-poor professionals – searching,
workers), then prices are likely to
negotiating, renovating and managing
continue to rise.
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 fi gures. Chris is a qualifi ed accountant, buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney C21 MARKET PULSE
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CENTURY 21
FIND OUT THE NEW VALUE OF YOUR PROPERTY The property market has seen a significant change in recent months and you may be surprised by the current value of your property. For over 50 years Century 21 has been helping sellers achieve their outstanding results. We would be delighted to provide you with an obligation-free market appraisal. Request your free market appraisal today.
Visit: C21.com.au/sell
CELEBRATING 50 YEARS
P R O P E R T Y M A R K E T U P DAT E
HOME VALUES CONTINUE TO RISE BUT THE PACE OF GROWTH LOSES STEAM IN APRIL Australian housing values lifted by 1.8% in April according to CoreLogic’s national home value index, with the monthly pace of capital gains easing from a 32-year high in March (2.8%). Although growth conditions have slowed, housing values are still rising at a rapid pace, up 6.8% over the past three months to be 10.2% higher than the COVID low in September last year.
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
income households, are finding it
a larger downturn, attributable
harder to save for a deposit and
to the extended lock-down period
transactional costs.”
last year.
There is already some evidence
The broad trend of houses
of fewer first time buyers in the
outperforming the unit sector
market, with the Australian Bureau
continued through April as
of Statistics reporting a -4.0% fall in
higher density styles of housing
the value of first home buyer home
experienced less demand amidst
loans through February, the first
elevated supply across some inner
drop since May last year.
city precincts. At the combined
Despite the slowdown, positive housing market conditions remain geographically broad-based with every capital city and ‘rest-of-state’
capital city level house values (8.6%) have risen at double the pace of unit values (4.3%) over the first four months of the year.
region continuing to record a lift
“A preference shift away from
in dwelling values over the month.
higher density housing during a
Darwin (2.7%) and Sydney (2.4%)
global pandemic is understandable,
recorded the largest month-on-
however a rise in flexible working
month rise in dwelling values, while
arrangements also seems to be
Perth values recorded the lowest
supporting greater demand for
rate of growth amongst the capital
houses around the outer-fringes
dampen housing demand.
cities at 0.8%.
of capital cities. Relatively weak
“The slowdown in housing value
The four smallest capital cities
CoreLogic’s research director, Tim Lawless, says the pace of capital gains could slow further over the coming months as inventory levels rise and affordability constraints
appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth. With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower
recorded double digit annual growth (Adelaide 10.3%, Hobart 13.8%, Darwin 15.3% and Canberra 14.2%), reflecting a smaller COVID related disruption and an earlier start to the growth phase last year. Melbourne is recording the lowest level of annual growth (2.2%) due to
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investor activity, compounded by a supply overhang in some high-rise precincts, is also dampening price growth in unit markets,” Mr Lawless said.
Click here to read the full article
MOVING TIPS
MOVING TIPS THAT ARE OUTSIDE THE BOX Moving house doesn’t have to be too stressful – all it takes is a bit of outside the box thinking. Here are some simple but ingenious ways to help make your move a breeze. 1. IT PAYS TO BE CHEAP Moving is expensive but there are ways to save money and reduce costs. You can get free packing boxes from supermarkets or warehouse format stores. And if you’re using removalists, they cost more on the weekend – so try to move during the week. They also charge by the hour, so move as much stuff as you can yourself and they’ll finish quicker.
2. WORK WITH WHAT YOU'VE GOT Protect any fragile possessions by using scrunched up newspaper or pillowcases for padding, and when stacking plates, slip some paper ones in between them to use as
BY CONNECTNOW,
wheeling heavier items around in
everything. Simply take a photo
your suitcases.
of the contents in each box so it’s easier to find what you’re looking for
3. MAKE YOUR MARK
– when you need to find it. And if
We always label boxes on their lids but you should also label each side – that way you’ll know what’s in them even when they’re stacked on top of each other.
4. WRAP THINGS UP Instead of emptying all your drawers, just wrap the contents in newspaper and keep inside the drawer. As they’re notorious for sliding out during the move, you can also try taping or tying the drawer shut, depending on the size and fragility.
Pack your shirts, dresses, and jackets in garbage bags but leave them on their coat hangers. This way you’ll protect your clothes and it’ll make hanging them back up in your wardrobe much quicker.
it so you know where to plug them in. It’ll save you loads of time and frustration later.
7. SORT YOUR UTILITIES IN ONE CALL You can also take the stress out of your move by getting all your essential home moving services sorted in one simple phone call with connectnow, saving you time and letting you focus on more important things.
maximise the space inside your
You’ve got enough to think about to remember where you packed
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Connectnow is a free* utility connections service that helps make moving easier for Australians by sorting their electricity, gas, internet, pay TV, and home phone connections all in one simple call. With over 19 years’ experience, connectnow providers to deliver a quality home moving
during the move without trying
C21 MARKET PULSE
ABOUT THE CONTRIBUTOR
works with a range of trusted service
shock absorbers. Make sure you
items, and take a load off by
your TV, take a photo of the back of
5. LEAVE THEM HANGING
6. TAKE A FEW SNAPS
boxes by filling pots with smaller
you’ve got any devices connected to
CENTURY 21
service. www.connectnow.com.au *While their services are free to their clients, standard service provider connection fees and charges may still apply.
Your essential home moving needs sorted in one phone call. Help make your move easier with our free utility connections service*. Electricity
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...
*While our services are free to you, standard service provider connection fees and charges may still apply.
TAX TIME
PREPARING FOR TAX TIME
BY SARAH BARTON,
INSURANCE DISTRIBUTION CHANNEL MANAGER, TERRI SCHEER
With the end of financial year fast approaching, landlords who carefully plan and manage their expenses can look to achieve the best outcomes at tax time.
any maintenance work on their rental
Landlords can come under scrutiny
they can help streamline the process
from the Australian Tax Office
at tax time.
(ATO) when lodging tax returns,
A good property manager can
particularly with tax deductions claimed or allowed for investment properties.
property that can be included in this year’s tax return and make sure it’s addressed prior to June 30.
PROPERTY MANAGEMENT Property managers can be an invaluable asset to a landlord and
take care of the administrative responsibilities involved in an investment property and ensure the
maximise their tax returns. It’s also worthwhile checking your insurance policy and seeking professional advice to ensure you have the appropriate coverage.
For further information, visit www.terrischeer.com.au or call 1800 804 016.
ABOUT THE CONTRIBUTOR Terri Scheer Insurance Pty Ltd ABN 76 070 874 798 (Terri Scheer) provides insurance
There’s a number of things landlords
appropriate paperwork is compiled
cover for landlords, helping to protect them
should consider to reduce June
and completed for tax purposes
against the risks associated with owning a
30 stress and maximise their
Property managers can also provide
damage by tenants, accidental damage,
deductions.
TAX DEDUCTIONS Landlords may be able to claim a number of tax deductions on their investment property. Body corporate costs, landlord insurance premiums and advertising
rental property. These include malicious
a detailed end-of-financial year
landlord’s legal liability and loss of rental
statement to landlords.
income. Terri Scheer acts on behalf of AAI
This includes specific details they
trading as ‘Vero Insurance’, the insurer which
can pass on to their accountant
issues the insurance cover. Terri Scheer has
Limited ABN 48 005 297 807 AFSL 230859
outlining all of their costs, including property management fees, maintenance work and insurance.
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
for a tenant are potential deductible
PROFESSIONAL ADVICE
be viewed online at www.terrischeer.com.au
expenses to consider.
Seeking advice from a tax specialist
in Adelaide, Terri Scheer services all states,
Professional management and
can help make this time of year
agent fees, such as the commission
much easier for landlords.
charged to collect the rent on your
Landlords are encouraged to speak
behalf, may also be a deductible expense for landlords. Landlords should also think about
or obtained by calling 1800 804 016. Based territories and capital cities.
DISCLAIMER
with their accountants to confirm
The information contained in this article is intended
what they can and can’t claim as a
accept any legal responsibility for any loss incurred
tax-deductible expense in order to
to be of a general nature only. Terri Scheer does not 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.
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Contact Terri Scheer on 1800 804 016 or visit our CENTURY 21
website at www.terrischeer.com.au for a copy.
Terri Scheer exclusive offer
15 Months Cover for the Price of 12 As an exclusive offer to Century 21 clients, Terri Scheer is offering Landlords 15 months of insurance cover for the price of 12 months for a Landlord Preferred policy. Offer is available for the first year of new policies purchased from 1 March 2021 through to 31 August 2021*. Terri Scheer is Australia’s leading landlord insurance specialist, providing cover for landlords from many of the tenant related risks of property investment. To redeem this offer, your property must be managed by a Century 21 office in Australia. Contact your Century 21 Property Manager for an application form, or if your Property Manager is a distributor for Terri Scheer you can apply directly through your Property Manager. This offer is not available online.
Call Terri Scheer on 1800 804 016 for further information Australia’s Leading Landlord Insurance Specialist *The 3 months extra offer (15 months insurance cover for the cost of 12) is limited to customers who purchase a new Terri Scheer Landlord Preferred policy for a property managed by a Century 21 office in Australia. Not valid on current policies or for policy renewals. Usual underwriting rules and acceptance criteria apply. This offer applies in the first period of cover only and is not redeemable for cash and no extra premium is refundable in the event of early cancellation. This offer is valid from 01 March 2021 to 31 August 2021 and applications for a new policy must be received within this period. Insurance issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as Vero Insurance. In arranging your insurance, Terri Scheer Insurance ABN 76 070 874 798 AFSL 218585 acts under authority given to it by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Call 1800 804 016 for a copy.
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