O C T O B E R
M A R K E T
2 0 1 9
P U L S E
C21
PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Chelsea Tromans Elite Agent Magazine 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
OCTOBER 2019 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 O C T O B E R
RENOVATIONS OF VALUE
02-03
2 0 1 9
DON’T FORGET TO DEDUCT
Stylish kitchen renovations that will add value
The deductions property investors often
to your home.
throw away.
Home Beautiful Magazine Editor, Chelsea Tromans
BMT Tax Depreciation, Bradley Beer
EXPANDING NETWORK
04
VAMPIRE POWER
Coffs Coast locals open new Century 21 office.
How to avoid a scary electricity bill by reducing
Elite Agent Magazine
your standby power consumption
08-09
10
On The Move
PROPERTY MARKET UPDATE
05
Housing recovery gathers momentum through first
HIGH SOCIETY Times are changing in the way we live.
month of Spring. Corelogic Head of Research, Tim Lawless
SILENT SALES
06-07
Why you should be seeking silent sales. Your Empire CEO, Chris Gray
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R E N OVAT I O N S O F VA L U E
Stylish kitchen renovations that will add value to your home
BY CHELSEA TROMANS, EDITOR, HOME BEAUTIFUL MAGAZINE
A modern kitchen can breathe new life and personality into your home. But renovating one is no small task. Or a decision to take on lightly. When it comes to a kitchen renovation, you need to think long term. Not only do you want
buyers to maximise on your home’s potential value. “Over the years I have experienced situations where people buy the kitchen and the rest of the home comes with it!” says Charles Tarbey, Chairman of Century 21 Australasia. “This is the heart of a home and as such, the better the kitchen, the better the opportunity for a quick sale and a better price.”
a kitchen that won’t date, you also
What you need is a kitchen that
want to make sure it adds value to
impresses both functionally and
your home.
visually. Here are three things to
Even if you’re not planning on selling any time soon, when investing in a home renovation, you
add to the top of your kitchen renovation list for maximum return on your investment:
1. ADD AN ISLAND BENCH Mr Tarbey says the number one thing on buyers’ kitchen wish lists is ample bench space. An island is a great way to achieve extra bench and storage space, while also optimising your existing floor plan. Island benches also create additional seating. “A kitchen that allows a family the space to move around together, and is set up in such a way that a family can all casually eat in it at the same time will always be attractive,” says Charles. When choosing an island, look for a storage-savvy design that has an overhanging countertop for stools to slide underneath. Built-
should always consider your future
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in powerpoints are a must. If you
with one’s personal touch is the ideal
always feels luxe. Charles notes
want to make a statement, an island
way a kitchen should be built,” he
that easy access to appliances are
bench in a contrasting colour to the
advises. It’s not just the buyers who
among the top things on buyers’
rest of your kitchen is eye-catching,
will appreciate it – a classic look
kitchen wish lists, and gas cooktops
without being polarising.
gives you more flexibility to update
continue to be a crowd favourite.
your styling regularly, and if you
Ideally, buy all your appliances from
decide to renovate in other areas of
the same brand – and even the
the house, it will be easier to match
same collection – for a cohesive
the look and feel. Using engineered
look. Built-in appliances that are slim
stone, marble and porcelain
and minimalist have universal appeal
benchtops is money well spent.
and room for a double fridge is a
2. UPGRADE YOUR COUNTERTOP A tired countertop can bring down the whole vibe of your kitchen quick
must in this day and age. If you don’t
smart. Because of its vast surface area, it’s hard not to notice when it’s looking worse for wear. While it may be tempting to look to what’s
3. SPLURGE ON HIGH-END APPLIANCES
trending, Charles recommends
Good appliances anchor a kitchen.
going for a timeless option.
Not to mention they enhance the
“Kitchens are personal! Making one
functionality – when you have
different from the norm will only
quality appliances, cooking in the
appeal to a few, but making one
kitchen is more enjoyable. Stainless
neutral that can be easily decorated
steel is the failsafe option that
have the budget to go high-end everywhere, make your cooktop the item you splurge on. It’s one of the most-used appliances in the kitchen and can make or break a good meal. Don’t forget the dishwasher. It can be a non-negotiable for some buyers.
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.
www.homebeautiful.com.au
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EXPANDING NETWORK
COFFS COAST LOCALS OPEN NEW CENTURY 21 OFFICE New office locations don’t come much better than Moonee Beach which lies in the centre of Coffs Harbour’s northern beaches, on the north coast of New South Wales.
Fellow principal Mr Hall settled
was another major factor in
on the Coffs Coast in 2001 after
choosing C21”.
residing in Melbourne.
The team will provide residential
Having been indirectly involved in
sales, rentals, property
real estate since 2003, he became
management and holiday rentals
a licensee in a new agency in 2012
to the local area including Korora,
where hospitality and real estate
Sapphire Beach, Moonee Beach,
were blended into a unique offering
Bucca, Emerald Beach, and
for landlords and vendors.
Sandy Beach.
and Michael Hall are both long-
“It was the right time to merge my
Whether assisting buyers and
time locals and excited to have
boutique realty with the largest real
sellers in the local market, or
celebrated the official opening of
estate brands in the world and set
property owners looking to
their C21 office.
the business up for greater growth,”
maximise their returns, the team
Mr Hall said of his new venture with
look at all scenarios when marketing
Century 21 Coffs Coast.
their properties.
industry, starting in holiday and
Seeing how quickly the real
Lead sales agent and auctioneer
permanent rentals as a property
estate industry was changing
Peter Darby will leverage his 30
investment manager, then moving
and the significant role played
years’ experience to also spearhead
into sales where his property and
by technology, Mr Kean and Mr
the project sales services,
investment knowledge is applied to
Hall knew that to be able to offer
particularly in the sale of large
better service his clients.
clients the best outcome they
residential subdivisions.
New Principals Darcien Kean
Mr Kean has over 10 years’ experience in the real estate
“Having lived in numerous suburbs along the Coffs Coast,
needed to be at the forefront of this technological advancement.
I love promoting what the area
“We were aware of the limitations
has to offer; from its abundance
of our offering as an independent
of beaches, to its ever-evolving
office and decided that joining
townships, and lush green
Century 21 would provide us with
landscapes,” Mr Kean said.
technology we needed to produce
“This passion comes out when I talk to buyers and sellers and is what
superior service to our clients,” Mr Kean said.
makes them come back to me for
“The fact that they had also
their ongoing real estate needs.”
undergone a major rebrand
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Continue reading >>>>
The story Coffs Coast locals open new Century 21 office, first appeared on Elite Agent. View the full article here: https://eliteagent.com/coffs-coast-localsopen-new-century-21-office/
P R O P E R T Y M A R K E T U P DAT E
HOUSING RECOVERY GATHERS MOMENTUM THROUGH FIRST MONTH OF SPRING The housing market has made further progress towards a recovery, with CoreLogic’s national home value index recording the third consecutive month of gains, lifting the national value of housing by a cumulative 1.7% since the market found a floor in May 2019. The monthon-month lift of 0.9% in national housing values was the largest monthly gain since March 2017. CoreLogic head of research Tim Lawless said, “Although housing values are now consistently tracking higher, at least at a macro-level, the national index remains 6.8% below the October 2017 peak, indicating that buyers still have some time to take advantage of improved housing affordability before values return to record highs.” The September gains were once again driven by stronger conditions emanating from Sydney and Melbourne where dwelling values increased by 1.7% over the month; Australia’s two largest cities have
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
seen a rapid bounce-back in home
higher, unemployment is lower and
values over the past two months,
jobs growth is stronger, providing a
with Sydney up a cumulative 3.3%
solid platform for housing demand.”
and Melbourne up 3.2% in August and September. Housing values remain 11.9% below their July 2017 peak in Sydney and 7.9% below Melbourne’s November 2017 peak.
Another factor cited by Mr Lawless as driving the strength in Sydney and Melbourne property markets could be higher levels of investor participation. The latest housing
Brisbane (+0.1%) and Canberra
finance data from the ABS (to end
(+1.0%) were the only other capital
of July) shows investors comprised
cities to record a rise in dwelling
32% of mortgage demand across
values over the month, while values
New South Wales and 26% of
held firm in Adelaide but fell in
Victorian mortgage demand which
Hobart (-0.4%) and continued their
is higher relative to any of the states
long run of losses in Perth (-0.8%)
or territories.
and Darwin (-0.2%).
Mr Lawless said, “Although markets
Most of the regional markets
outside of Sydney and Melbourne
recorded a rise in September, with
aren’t showing the same recovery
regional SA (-0.5%) and regional
trend, most areas have either seen
WA (-1.3%) the only ‘rest of state’
a reduction in the rate of decline or
areas to record a drop in values.
are seeing a modest trajectory of
Mr Lawless believes that the strong rebound in Sydney and Melbourne housing markets relative to other regions, can be attributed to a variety of factors. He said, “While all regions are benefitting from low mortgage rates and improved access to credit, economic and demographic conditions in New South Wales and Victoria continue to outperform most areas of the country. Population growth is
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growth as low mortgage rates and a slight loosening in credit policy support buyer demand.”
SILENT SALES
WHY YOU SHOULD BE SEEKING SILENT SALES B Y C H R I S G R A Y, C E O, YO U R E M P I R E
Buying a property before it goes to market, known in the industry as a silent sale, is a great way to acquire a home or investment, and should considered as part of any property-buying strategy. Median-priced properties close to CBDs, transport and leisure facilities will nearly always sell and rent well. Consequently, these types of properties are subject to strong competition once they are listed, and often sell at auction for 5 – 10 per cent higher than their true market value. So if your goal is to buy at or below market value, you need to look at properties before they are listed.
before they embark on a formal
days of a campaign. Clients of mine
sales campaign. Other sellers find
have come to rely on our ability to
auctions risky and are nervous about
purchase such properties on their
whether buyers will attend or bid
behalf. For example, we bought a
and may take a guaranteed offer
whole block of seven units over a
beforehand rather than running
nine-month period off different
the risk of an unfavourable sale
owners. Only two were advertised
at auction.
to the public, the other five were
Often, professional investors and buyers agents handpick
and the public gets what’s left. If you want to get ahead of the competition you need to become savvy and learn
“If you want to get ahead of the competition you need to become savvy and learn the techniques of industry professionals.”
Placing a property on the market
the techniques of
brings with it marketing and
industry professionals.
advertising fees as well as a reasonable time frame, so a number of vendors ask agents to show the property to their database
and auction fees, they often get a sale within 24-48 hours, instead of 4-6 weeks. Whilst a lot of Australia’s property market is on the turn, there’s still plenty of
uncertainty in the market
As a buyers agent we typically snap up to 80-90 per cent of our properties for clients before they are marketed or within the first couple of
C21 MARKET PULSE
can vendors save $5,000$10,000 on marketing
these listing before they go to market
silent sales direct to us. Not only
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and both agents and vendors would rather get a guaranteed sale, rather than risking the unknown.
To maximise your opportunities in the market, here are Chris Gray’s top tips for purchasing a silent sale property: 1.
Become better friends with your local real estate agent. The key contact between sellers and buyers, agents are the first to be aware of properties for sale. Make sure they know you are pre-approved for finance, are serious about buying and can make a quick decision followed by a signed, unconditional contract.
2.
Get organised. Make sure you are ready when the right deal comes along. Get pre-approved for finance and have your valuer, building inspector and strata inspector all ready so they can check you are buying the right property at the right price.
3.
Tell your friends, family and colleagues you are looking to buy. Often those close to you will know of someone else looking to sell, so spread the word.
4.
Use a buyers’ agent. If you’re short of time and don’t have the contacts, consider hiring a professional. Buyers’ agents, have good relationships with real estate agents, who prefer to deal with them, as they make quicker buying decisions. Whilst you do pay a fee to a buyers agent, they will often get you a better property for a better price which will more than compensate the cost.
ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyers’ 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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DON’T FORGET TO DEDUCT
THE DEDUCTIONS PROPERTY INVESTORS OFTEN THROW AWAY Depreciation schedules should be arranged before and after any renovation. If a client is considering renovating their investment property, it’s important to encourage them to speak with a specialist Quantity Surveyor before completing any work. There may be substantial depreciation deductions available for any structural elements being removed during the renovation process. A process known as scrapping allows investors to claim these deductions in the year the items are removed.
BY BRADLEY BEER, B M T TA X D E P R E C I AT I O N
detail asset values and can act
Those who exchanged contracts
as evidence in the event of an
prior to this date should discuss
Australian Taxation Office audit.
eligibility with their Quantity
Once the renovation has been undertaken, a Quantity Surveyor will compile an itemised schedule detailing the depreciation deductions available for the brandnew plant and equipment assets and capital improvements. The depreciation schedule will also show the undeducted value of the removed structural assets. It’s important to note that investors who purchase second-hand residential property after 7:30pm on the 9th of May 2017 are not be able to claim scrapping deductions for existing plant and equipment assets.
To take advantage of deductions for scrapped assets, a depreciation schedule must be arranged both before and after the renovation takes place. The pre-renovation depreciation schedule will
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Surveyor for any residual depreciation that may apply. If an investor lives in their rental property while renovating, any newly installed assets will also be classed as previously used. As a result, the investor is at risk of losing their tax benefits.
Post 2017 depreciation legislation renovation case study: Jonathan purchased a ten year old
legislation changes and can still be
he was able to use his existing
two-bedroom house after 7:30pm
claimed. These deductions typically
depreciation schedule to work out
on the 9th of May 2017. After renting
make up 85-90 per cent of a total
the un-deducted value of structural
his property out for a year, he
depreciation claim.
assets to be removed during the
decides to renovate the bathroom.
Jonathan arranged a property
renovation.
According to current legislation
depreciation schedule when he
The table below outlines the
passed in November 2017, he
originally purchased the property.
deductions Jonathan was able to
is ineligible to claim scrapping
After hearing about the additional
claim for the removed structural
deductions for existing plant and
deductions available when
assets as well as any capital
equipment assets. Capital works
renovating from his accountant,
improvements made during the
deductions for structural assets
Jonathan contacted a Quantity
renovation.
such as tiles, bathtubs, toilets, sinks
Surveyor before starting work to
and basins are unaffected by the
find out more. Jonathan found
After renovations, Jonathan was able to claim $7,830 in scrapping deductions and $333 in capital
Ten year old house purchased two years ago
improvement deductions. Combined, this totals more than $8,000 in depreciation deductions
SCRAPPING DEDUCTIONS
in the first full financial year. He was able to maximise the depreciation
Asset
Remaining undeducted value at settlement
Remaining undeducted value when renovating
Bath
$1,008
$945
Tiling
$6,720
$6,300
Basin
$624
$585
Total
$8,352
$7,830
deductions on his investment property both prior to and after the renovation by taking a depreciation schedule to his accountant.
N E W C A P I TA L I M P R O V E M E N T D E D U C T I O N S Asset
Original value at purchase
First full financial year deductions
Bath
$1,640
$41
Tiling
$10,600
$265
Basin
$1,080
$27
Total
$13,320
$333
ABOUT THE CONTRIBUTOR Article provided by BMT Tax Depreciation. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation. Please contact 1300 728 726 or visit
The depreciation deductions have been calculated using the diminishing value method. This house was purchased after 7.30pm on the 9th of May 2017 and is therefore affected by the 2017 legislation changes.
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www.bmtqs.com.au for an Australia-wide service.
VA MP I R E P OW E R
HOW TO AVOID A SCARY ELECTRICITY BILL BY REDUCING YOUR STANDBY POWER CONSUMPTION
BY ON THE MOVE
There’s nothing worse than receiving a scary energy bill. And when it arrives, you may run through in your head everything you did that month and not find anything that could account for how high your bill is – but did you take into account standby power? Thanks to improvements in product
3. PURCHASE ENERGY EFFICIENT MODELS
5. TURN APPLIANCES OFF AT THE WALL
the past decade. But despite this
The energy efficiency star ratings
Look for devices that don’t need to
decrease, it still accounts for a
system not only indicates electricity
be left on overnight and get into the
staggering 5.9% of Australia’s total
usage running costs, but also gives
habit of turning them off at the wall
residential electricity use.
guidance on standby running
before you hit the hay.
Take these simple steps to reduce
costs. The more energy efficient an
design, standby power use in Australia has reduced by 68% in
your standby energy costs:
appliance is, the less electricity it will use on standby, the less money it
With these simple steps to reduce
1. MIND YOUR WASHING
will cost you to run.
standby power consumption,
Washing machines are one of the
4. CHANGE YOUR STANDBY SETTINGS
biggest users of standby power. Make sure you switch the machine
banishing the energy culprits lurking in your household appliances is not so scary after all.
off after use to avoid being charged
Many new gaming consoles and
for unused power throughout
smart TVs allow you to modify
the day.
settings to reduce standby functionality. This may mean the
2. UPDATE YOUR ELECTRICAL BOARDS
device takes a few seconds longer
Some modern electricity boards
you consider the positive impact it
can sense when your appliance has
will have on your budget and the
gas, phone, internet, pay TV and insurance.
entered standby mode and will cut
environment.
Since 2004 On The Move has partnered with Real
to start up when you turn it on, but that’s a small price to pay when
its electricity feed entirely. Not only
ABOUT THE CONTRIBUTOR On the Move is Australia’s leading service connections specialist providing a one-stop service for electricity,
Estate agencies and other organisations to give their customers a convenient and seamless move-in,
will ensure your electrical system is
lights-on experience.
updated save you money, but it’s an
https://www.onthemove.com.au/
important safety precaution for you and your family. C21 MARKET PULSE
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A DV E RT I S E M E N T
HOME
HIGH SOCIETY TIMES ARE CHANGING IN THE WAY WE LIVE. CONVENIENCE, LOCATION AND LIFEST YLE ARE KEY, WHICH IS WHY LUXURY APARTMENT LIVING IS BOOMING
THE NEW AUSTRALIAN DREAM
O
nce upon a time, the dream of home ownership comprised a quaint weatherboard cottage with a white picket fence. Today, it involves sprawling city views, an on-site gym and a dashing doorman. Luxury apartment living is booming in Australia, with buyers and renters of all ages lapping up the benefits. “The trend started at the turn of this decade and has been growing in prominence ever since,” says Charles Tarbey, chairman of Century 21 in Australia. Envisioning your own plush penthouse? Here’s everything you need to know.
WHY ARE LUXURY APARTMENTS TRENDING? A rooftop pool, swanky spa and in-house cinema may seem beyond your reasonable real-estate possibilities, but apartment living makes luxury more accessible than ever. Cutting-edge design and dazzling finishes define the best blocks on the market, which take cues from five-star hotels with their lavish lobbies and lounges. However it’s not all about opulence, but rather, convenience. A body corporate or strata firm looks after all the general maintenance of a complex, and many residents delight in the lock-and-leave lifestyle if affords.
Finally, it seems we’re taking cues from mega-cities like New York and London. Families with children now make up a quarter of Australia’s total apartment population, with the figure increasing by 56 per cent between 2011 and 2016, according to the Australian Bureau of Statistics.
WHO MAKES UP THE MARKET? Millennials are increasingly choosing to rent for lifestyle and buy where they can afford – so while they might have invested in the aforementioned weatherboard in the ‘burbs, they’re opting to live in a slick urban apartment kitted out with high-end amenities. Then, there are the Baby Boomer downsizers. “Many homeowners have gained equity over the years and can comfortably sell and have sufficient funds to buy a quality apartment with funds left over,” says Tarbey.
FOR MORE INFORMATION VISIT CENTURY21.COM.AU
WHAT TO LOOK OUT FOR Future buyers and renters alike should approach the luxury apartment market with a considered eye. “Find a complex that has a high owner-occupier scenario, as this can guarantee minimal disruption,” advises Tarbey. “Be mindful of the position and orientation of the apartment – a westfacing apartment isn’t ideal in the Australian climate [due to intense afternoon sunlight].”
e n i n th f e e s s A on o t editi c u r re n if u l B ea u t H o m e zi n e ! M a ga
Artists impression only*
Artists impression only*
Artists impression only*
DUE FOR COMPLETION DECEMBER 2019 K O O M B A N A B AY, B U N B U R Y, W A
Aspire Apartments
A once in a lifetime opportunity to own a luxury apartment with true north facing ocean views and city living right on the beach - something that is never to be repeated and no other location can match. With 14 Luxuriously appointed apartments over 6 stories, only 1 two bedroom apartment and 4 three bedroom apartments remain for sale, as well as the two double story Penthouses. Boasting spacious open plan living layouts and large balconies, every apartment incorporates the finest finishes, top of the range fixtures and quality flooring. With easy access to all of the city’s best leisure and lifestyle attractions, it’s the ideal venue for city living. Apartments from $860,000; Penthouses from $7,276,500
PAU L D U F F Y
0400 676 791
08 9721 7733
C21.com.au/bunbury
SPRING IS IN THE AIR If you have been thinking of selling your property this Spring, we would be delighted to be of assistance.
WHAT’S YOUR PROPERTY REALLY WORTH?
C21.co.nz
C21.com.au/request-an-appraisal