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P U L S E
S E P T E M B E R
M A R K E T
C21
PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Chris Gray Tim Lawless Connectnow Home Beautiful REI Super Terri Scheer
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia
WELCOME TO THE
SEPTEMBER 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 S E P T E M B E R
GROWTH AHEAD?
02
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SUPER STARS
Will this growth continue?
Ranked 8th best performing super fund across
Your Empire CEO, Chris Gray
Australia.
08
REI Super
PROPERTY MARKET UPDATE
05
STRATA CHANGES
Aus housing boom continues to lose steam as
NSW introduces new laws for pets in strata schemes
national home values rise another 1.5%
Century 21 Australia
11
CoreLogic Head of Research, Tim Lawless
VALUE TIPS
06
AUCTION TIPS
8 ways to increase the value of your home.
6 expert tips for winning at auction
Home Beautiful
Home Beautiful
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CENTURY 21
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GROWTH AHEAD?
WILL THIS GROWTH CONTINUE?
B Y C H R I S G R A Y, C E O, YO U R E M P I R E
I spent a lot of 2018, 2019 and 2020 suggesting that prospective buyer should jump into the property market whilst it was quiet, but I believe only a few heeded that advice. We’re now in Sept 2021, 8 months into an upswing and already people are calling out that they missed the boom, and they should now wait for the next crash. So, is now still a good time to get
buying as I buy for cheaper. And if
investing in property, I’ve seen a
into the market or should you sit
the market is absolutely flying and
number of cycles – ups, downs
and wait to see what happens.
people are paying record prices
and sideways. The ups often go for
at auction, I’m still keen to buy
three to five years, then it drops
if I can buy it off market and at a
a few percent, goes sideways and
conservative independent valuation
then back up again. The main point
price.
being it often goes up for three
Since I bought my first property at the age of 22, I’ve always been a contrarian and I’ve typically always done the opposite to what most other people around me have done. As a first home buyer I borrowed seven times by income rather than three and whilst my monthly mortgage was more than my wages, the rent from letting out my two spare bedrooms more than covered my repayments and so I lived for free. When I go to the bank to borrow money my first question is ‘How much will you lend me?’ rather than ‘How cheap are your interest rates?’ as I know that buying an extra
In 2018 and 2019 we had the credit crunch and the Royal Banking
Sure, it has been a fair amount of
in the market and the fence sitters
growth – 10 per cent in the last six
had every reason to justify doing
months in parts and maybe 20%
nothing. But that was where the
when you look over the whole of
opportunity was – property was up
2021. 20% is high and higher than
for sale and there were no buyers in
average but it’s not 40% or 50%.
the market.
If some property markets double
Just as the market was about to turn in Feb/Mar 2020, Covid hit and the same situation – property up for sale and no competition if you wanted to buy. We’re now 8 months into the next
buffer can make me hundreds of
upswing and the fence sitters and
thousands of dollars over the years,
naysayers are again calling the
rather than saving a few thousand
market as they know best. It can’t
by borrowing cheaper.
carry on, Covid has come back,
– I want to buy when no one else is
months into it.
Commission. So much doubt was
property or having an extra cash
The same goes for buying property
to five years and we’re only eight
interest rates will rise etc etc. In my 30 odd years’ experience
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every 7, 10 or 12 years and there’s some years that it goes down or goes sideways then by definition it will need to rise at 20% or even 30% at times to get that 7% - 10% average. Has it ever really crashed significantly? Not that I’ve seen, especially if you’re in the blue-chip inner markets that I tend to follow. Sure, you can always find a few examples of where it has, but also you can find just as many examples
of where it hasn’t in that same time
economics of supply and demand
who might be a tyre kicker and who
period.
and how it relates to property in my
still hasn’t got approved for finance
areas of expertise.
as we would have an 80-90%
I bought half my current portfolio
chance of buying and exchanging
in the Global Financial Crisis
If you read my article last month
(GFC) where everyone said it was
you will know that most people’s
dropping, but a few years later mine
biggest regret in property was not
With vaccine rates around the
had still continued to creep up.
buying more when they had the
country heading towards the 70-
chance.
80% targets, hopefully we’ll see the
Lots will depend on what you are buying too. If you’re buying very
I do firmly believe that most
expensive or very cheap properties
markets will continue to rise in
or buying in remote locations
the future, and this represents an
or areas that are reliant on one
opportunity that won’t be around
industry, then you will be more
forever. Sure, lockdown is making
susceptible to price changes. If
it harder to buy, but in my buyer’s
you’re buying in areas where there’s
agency I’ve found this is actually an
thousands of properties for sale,
advantage.
that will make a difference too. But if you’re buying median priced properties in areas where there’s no more supply and there’s plenty of demand from cashed up buyers and renters, you’re more likely to benefit in the good times and less likely to be affected in the tougher times.
on it within 48 hours.
country opening up very shortly and then I think it will be game on again.
We typically never buy at auction as we don’t want to compete with the emotional homebuyer who will pay what the bank will lend them rather
ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments
than what a property is worth. Many
for time-poor professionals – searching,
auctions aren't happening now,
negotiating, renovating and managing
and agents can only show buyers through by private inspection. If
property on their behalf. Chris has spent over 10 years as the host of ‘Your Property Empire’ on Sky News Business channel, where
I’m certainly not a genius, nor am
they’ve got limited open inspection
I an economist or a predictor of
appointments, we’ve found they
research companies and major industry
the future. However, I am a very
would rather let a buyer’s agent
figures. Chris is a qualified accountant,
unemotional former accountant
through with a pre-qualified and
who does understand the basic
motivated buyer than Joe Public C21 MARKET PULSE
03
he’s interviewed various heads of property
buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @ChrisGraySydney
CENTURY 21
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your property?
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Looking to sell your property? We can help you achieve the best result. Contact us today for your FREE property appraisal.
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P R O P E R T Y M A R K E T U P DAT E
AUS HOUSING BOOM CONTINUES TO LOSE STEAM AS NATIONAL HOME VALUES RISE ANOTHER 1.5% Australian housing values continued to record a broad-based rise despite the disruption from lockdowns.
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
rate of growth probably has more
in housing values since the year
to do with worsening affordability
ending July 1989. “Through the late
constraints than ongoing
1980’s, the annual pace of national
lockdowns.
home value appreciation was as
“Housing prices have risen almost 11 times faster than wages growth
high as 31%, so the market isn’t quite in unprecedented territory. The annual growth rate at the moment
According to CoreLogic’s national
over the past year, creating a more
home value index, dwelling values
significant barrier to entry for
rose 1.5% in August; a rate of growth
those who don’t yet own a home.
that is still well above average,
Lockdowns are having a clear
but the lowest monthly rise since
impact on consumer sentiment,
Capital city houses are continuing
January. The lift in housing values
however to date the restrictions
to record a stronger growth rate
continues to be broad-based, with
have resulted in falling advertised
relative to units, however the
every capital city, apart from Darwin
listings and, to a lesser extent, fewer
performance gap does appear to
(-0.1%) recording a rise in values
home sales, with less impact on
be narrowing. Throughout the
throughout the month, although it
price growth momentum. It’s likely
first quarter of the year, capital
is important to note CoreLogic has
the ongoing shortage of properties
city house values were rising
withheld the Perth and Regional WA
available for purchase is central to
approximately 1.1 percentage
index results pending the resolution
the upwards pressure on housing
points faster than units each
of a divergence from other housing
values.”
month. By August the average
market measurements in WA.
The August update takes Australian
The August home value index
housing values 15.8% higher over
provides further confirmation
the first eight months of the year
that the rate of price growth is
and 18.4% above levels a year ago.
moderating after moving through
In dollar terms, the annual increase
a peak in March of this year. At
in national dwelling values equates
that time, national home values
to approximately $103,400, or
had risen 2.8% in a month, led by
$1,990 per week. In comparison,
Sydney where dwelling values were
Australian wages are rising at the
up 3.7%.
average annual rate of 1.7%.
According to CoreLogic's research
According to Tim Lawless, this is
director, Tim Lawless, the slowing
the fastest annual pace of growth
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is trending higher, in fact, it is 3.6 times higher than the thirty-year average rate of annual growth.”
performance gap reduced to 0.7 percentage points. Mr Lawless believes the convergence of growth in house values and unit values could be another demonstration of affordability becoming more challenging.
Click here to read the full article
VA L U E T I P S
8 WAYS TO INCREASE THE VALUE OF YOUR HOME Whether you’re looking to sell right now or later down the track, it pays to keep your home up to date.
BY HOME BEAUTIFUL
focus a couple of rooms, or perhaps
heater without the hassle or damage
a feature wall?
to the environment.
As for the colour, it's been said that
Installing gas cook tops and ovens
ivory is the one colour that will add
add value in the kitchen and is often
value to your home.
preferred to electric ovens and cook tops due to its ability to provide
If you own a property, chances are you're hoping it will one day be worth more than you paid for it. And while much about a property's value relies on things like location, population growth, infrastructure and the mercy of a fluctuating market, there are some things within your control that you can alter to increase your home's value. It's often the smallest changes that have the biggest impact, so don't feel as though you have to undertake a full-scale renovation to make a return. In fact, when
2. INCREASE STORAGE SPACE Unless you're converting to hardcore minimalism, zero storage space is going to be a massive shortfall for potential buyers. Think open shelves in the kitchen, bathroom and laundry. Additionally, installing hooks on the back of doors is another simple convenience that's often overlooked.
compared to electric. As for the environment, gas may produce less greenhouse gas emissions than electricity.
5. SIMPLE SWAPS It's possible to create a whole new bathroom look without renovating. Small, but modern updates, such as replacing handles and taps
3. IMPROVE THE OUTDOOR AREA An outdoor space perfect for entertaining will increase the
renovating for profit it's very
desirability of your home.
important to avoid overcapitalising.
While shade and shelter are
Here, we run through 8 affordable
essential, fire pits have also
things you can do to make your
instant heat and even temperature
become a popular addition to many
is a simple way to elevate the appearance of this room. Consider painting tiles if they look old, or grubby. If your vanity is outdated, replacing it will make a remarkable difference to the feel of the room.
backyards.
6. STREET APPEAL How your home looks from the
1. A NEW PAINT JOB
4. INSTALL GAS HEATING AND APPLIANCES
A new coat of paint is the easiest
Gas appliances are a favourite home
necessarily increase the value
home more appealing to buyers as well as increase its value.
and most cost-effective way to refresh the look of your home while boosting value. Decide whether you want to redo the whole house or
feature for a couple of reasons plus they're efficient. Gas heaters and in particular, flame-effect fires, give all the warmth and comfort of a wood
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street influences desirability. Adding a fence can be expensive but won't of your home. However, it would be worth fixing and painting any existing fences around the property.
Additionally, replacing or painting your front door a different colour will boost your curb aesthetic for little cost.
7. DECOR AND INTERIOR DESIGN Adding things like cushions, rugs and throws can make a big difference to the look and feel of your home. Update lampshades and consider some artwork. If you are selling your home, it's essential for potential buyers to be able to see the space as somewhere they could potentially live.
8. BUILD A GRANNY FLAT It's becoming more common for generations of families to live together and split the cost of living. If you have space, adding a granny flat to your property can increase the overall value as long as it's done right. They're also a great way to generate an income to help pay off that mortgage.
Click here to read the full article
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SUPER STARS
RANKED 8TH BEST PERFORMING SUPER FUND ACROSS AUSTRALIA REI Super delivers best ever one year annual return to members
BY REI SUPER
and health concerns due to the
result of a well-executed investment
pandemic over the past year, we
strategy and sound governance
have been working hard to achieve
processes.
the best possible retirement
"Our members’ financial future
• Balanced (MySuper) option
outcomes for our members.
delivers historically highest net
This performance was achieved
retirement is our number one
annual return of 20.00%
during a year which saw funds under
focus and priority and has been
REI Super makes super easier management grow considerably to $1.917 billion, which is an 18.70 per because wefund ‘get’ estate. ranked 8th best performing in real • Balanced (MySuper) option
Australia for 12 months to 30 June 2021
cent increase on the previous year.
for over 46 years. We are the only fund committed to the real estate industry and allied industries and the
In 1975, REI Super was built to serve you and your industry. That means you get personal people who work in it." Theseand one-year represent service, strong, long-term performance tailoredresults insurance which allows for commissions.
• Growth option delivers historically
a very positive outcome for all
Join now at reisuper.com.au/join-today our members. The results were highest net annual return of 28.03% • Assets under management grew by 18.70% to $1.917 billion over 2020/21
BALANCED INVESTMENT OPTION RETURNED 20.00% We are
and achievement of a dignified
Click here to read the full article
achieved by the completion of a strategic review of our portfolio over the year and a restructure of our investment portfolio. The latter included reducing our exposure to Australian equities early in 2021 on the back of strong returns, divesting
REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general from alternatives, taking our profits pleased advise our information to of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs. Members should obtain and read the Product Disclosure Statemen for REI Super before making any decisions and consider on talking to a financial adviser before making an investment decision. Past performance is no indication of future performance. July 2021. REIS 7126 exposures to emerging markets
DISCLAIMER
members that the Balanced
Future investment performance can vary from past performance,
investment option returned 20.00%
and US banks and increasing our
for the financial year ended 30
exposure to industrial and consumer
simply on past performance. Past earning rates are not an
June 2021 and as published by
good companies in Japan and the US
Super are not guaranteed, and the value of the investment may
the Australian Financial Review1,
and European energy companies.
is ranked the 8th best performing super fund across Australia for one year. While the real estate industry and our members have faced business and employment challenges, lockdowns, community hardships
Our members have benefited from our profit-for-member focus and consistent approach to acting in our members’ best financial interests. Jarrod Coysh, the fund’s Chief Executive Officer, said the
and you should not base your decision to invest in REI Super indicator of future earning rates. The investment returns of REI rise or fall. The information contained in this article does not constitute financial product advice. REI Super does not give any warranty to the accuracy, completeness or currency of the information provided. Although REI Super makes every reasonable effort to maintain current and accurate information, you should be aware that there is still the possibility of inadvertent errors and technical inaccuracies. These case studies are for illustrative purposes only. They are not to be taken as personal advice and are intended to provide general information only. They do not take into account your individual needs, objectives or personal circumstances. You should assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. Past performance is no
investment performance is the
indication of future performance. Member should obtain and read the Product Disclosure Statement for REI Super before making any decisions. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), RSE R1000412, SPIN REI0001AU,
C21 MARKET PULSE
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RSE R1000412. MySuper unique identifier 76641658449129.
CENTURY 21
July 2021.
Real estate's personal.
REI Super makes super easier because we ‘get’ real estate. In 1975, REI Super was built to serve you and your industry. That means you get personal service, strong, long-term performance and tailored insurance which allows for commissions.
Join now at reisuper.com.au/join-today
REI Superannuation Fund Pty Ltd ABN 68 056 044 770 RSE L0000314 AFSL 240569. REI Super ABN 76 641 658 449 and RSE R1000412 MySuper unique identifier 76641658449129 for the general information of members of REI Super. It does not take into account any member’s individual financial objectives, financial situation or needs. Members should obtain and read the Product Disclosure Statement for REI Super before making any decisions and consider talking to a financial adviser before making an investment decision. Past performance is no indication of future performance. July 2021. REIS 7126
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ST R ATA C H A N G E S
NSW INTRODUCE NEW LAWS FOR PETS IN STRATA SCHEMES On the 25th of August new laws about keeping animals in strata schemes were introduced in NSW. These laws outlines specific grounds where an owners
the strata schemes statutory review
• Can still set reasonable conditions
has been complied into a report by
in their by-laws to manage keeping
The NSW Department of Customer
animals in the scheme. However,
Service. You can view the report
by-laws that set a blanket ban on
here.
the keeping of any animals within a scheme are not valid.
WHAT DO THE NEW LAWS MEAN?
corporation can prohibit a owner
According to the NSW Fair Trading
from keeping an animal in a strata
the changes implemented will make
scheme or take measures to remove
it ‘easier and fairer for people to
an existing animal from the scheme.
responsibly keep pets while living in
With 61 per cent of Australian
strata.’
households including a pet in their
NSW Fair Trading have noted
family, the new laws aim to reflect
that under the new laws, owners
the continual rise in pet ownership
corporations:
as well as the growth of high density and apartment living.
• Can only refuse to allow an animal into the scheme if it unreasonably interferes with another resident’s
laws public consultation occurred
use and enjoyment of their lot or
through the strata schemes
the common property.
a survey specifically about pets in strata. The feedback received from
• Can still require residents to apply for approval to keep an animal on their lot.
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interference circumstances that fall within the new laws. This list outlines the measures owners corporations can take to prohibit an animal. This includes if the animal causes a nuisance or poses a hazard. The entire list can be viewed here.
Prior to the announcement of new
statutory review, which included
There is also a list of unreasonable
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CENTURY 21
Want to know more? You can read more about the changes via the NSW Fair Trading website.
AUCTION TIPS
6 EXPERT TIPS FOR WINNING AT AUCTION Auctions are daunting, and it can be hard to not get caught up in the thrill of outbidding the competition. But with a good auction strategy at the ready, you'll be well placed to win your dream home when
BY HOME BEAUTIFUL
the competition, figure out when the
Bidding quickly after another bid
property is on the market (once the
is received lets people know you
reserve price has been reached), and
are serious and will also help you
it also weeds out those who are just
identify who your competition is.
looking for a bargain.
2. MAKE YOUR FIRST BID A STRONG FIGURE THAT REFLECTS THE MARKET VALUE
5. TALK WITH THE REAL ESTATE AGENT It can be tempting to hide away in the back corner and fly under the
that hammer drops - without
In today's transparent world where
radar, but it's important that the real
overpaying. While an auction may
property values and estimates can
estate agent and auctioneer see
not be your first choice when it
be found on bank apps and the like,
you and know that you're a serious
comes to buying a house, there are
there's little point starting off too
bidder.
a lot of benefits to you as the buyer.
low.
"Auctions can work for a buyer
Everyone at the auction will have a
guide you through the process, so
who is willing to pay market value,"
clear idea of what the property is
you need to keep them updated
says Charles Tarbey, Chairman of
worth and will have come prepared
on your position, without giving
Century 21 Australasia. "It's definite
to pay that price, just like you.
everything away," says Mr Tarbey.
and on the fall of the hammer it's
It's advisable to start near where
"I have seen many instances where
yours," adds Mr Tarbey, who notes
you want to end and that way you
buyers were upset at missing out,
that during private sales there's
knock out a lot of the low bidders
making comments such as 'I would
always a risk that the vendor may
immediately.
have paid more if I knew it was going
"Agents will always be available to
change their mind or accept another offer without giving you the chance to negotiate. Auctions allow you to see your competition and know exactly where you stand. Every auction is different, however there are some strategies that can help you go in strong and hopefully come out on top. Here, we share expert tips for winning an auction.
1. WAIT TO PLACE YOUR FIRST BID "Often it is best to let the bidding
to sell for that amount' and blaming
3. BID WITH ROUNDED FIGURES It is best not to place bids of odd numbers, such as $649,500, as someone will always go the extra $500.
This gives you a chance to size up
agent was seeking information."
6. SET A BUDGET AND STICK TO IT One of the biggest mistakes buyers
Instead, go in with an even number – and if your opponent tries to slow down the bidding with small
make at an auction is not setting a maximum price they can afford to pay... and sticking to it.
increments, go in above them
At the end of the day, as much as
with that extra $500 or so, to
you may fall in love with a property
immediately put yourself back into
and as close as you might think you
first place.
are to winning, you should never
start and move in at a later stage with a strong bid," advises Mr Tarbey.
the agent, but were coy when the
exceed your predetermined budget
4. GO IN WITH A COUNTER BID QUICKLY AND CONFIDENTLY
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Click here to read the full article
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1800 804 016 | terrischeer.com.au *As of August 2020. Insurance issued by AAI Limited ABN 48 005 297 807 AFSL 230859 trading as Vero Insurance (“Vero Insurance”). In arranging your insurance, Terri Scheer Insurance Pty Ltd ABN 76 070 874 798 AFSL 218585 acts under authority given to it by Vero Insurance. Read the relevant Product Disclosure Statement before buying this insurance. Go to terrischeer.com.au for a copy.