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PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Chris Gray Tim Lawless Cover Guard Insurance REI Super
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600
WELCOME TO THE
May 2022
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 ay
BUYING PROPERTY
02
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TAX TIME
Is this the worst or best time to be buying?
Smart ideas for your tax refund
Your Empire CEO, Chris Gray
REI Super
PROPERTY MARKET UPDATE
05
STYLING YOUR HOME
CoreLogic’s Home Value Index continues to lose
How to Style Your Home for Sale:
steam as the case for higher interest rates mount
Tips to maximise your price
CoreLogic Head of Research, Tim Lawless
Century 21
LANDLORD INSURANCE
06
Floods, Storms, Rental Crisis: These are the headlines we are seeing consistently everywhere of late. Cover Guard Insurance
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BUYING PROPERTY
IS THIS THE WORST OR BEST TIME TO BE BUYING?
B Y C H R I S G R A Y, C E O, YO U R E M P I R E
If one of your goals in life is to earn more than the average salary (over $100k) and retire earlier than the average person (55), then by definition, you probably need to do the opposite to what the rest of the population does. When it comes to property, being
an ‘expert’ and they were all trying
5-10% increases which actually
a contrarian means buying when
to ‘bottom’ the market.
resulted in 15–25% depending on
everyone else is sitting on the fence. It makes basic sense – if you’re buying when no one else is buying, you’re bound to have more choice and more likely to buy at a better price than buying at auction, in a boom, when competition is at a peak. However, doing the opposite to everyone else is very hard from an emotional perspective especially when your friends, family and colleagues question what you’re doing when no one else is doing it. In 2016 / 2017 the market was rising. Soon after it started, many people thought it was rising too quickly, it wasn’t sustainable and so best not to buy as it was bound to crash. The market peaked at the end of 2017 and then it did start to drop off like it does after every peak.
At the same time, we were going through a credit crunch and the Royal Banking Commission and so for some of those that did want to buy or did predict the bottom of
the market early saying there was no way this growth was sustainable and it was too risky to buy. The market did peak at the end of
mortgage as the banks had changed
2021 and we woke up in 2022 with
all of their serviceability calculators.
less confidence. The talk of interest
In reality, the market didn’t really crash, in some places it dipped 10% in 2018 but bounced back to the
rates rising has put off many buyers and many buyers love sitting on the fence when an election looms.
same level by 2019. If you weren’t a
So looking back over the last
forced seller, you would never have
6 years, there was only a period of
noticed it.
6 months (first half of 2021) when
In Feb 2020 the market was just about to take off again and then Covid hit. We had never seen it before and banks were predicting a 10–20% crash and so no one bought and there were a number of panicked sellers. However by mid year the panic eased and the market
buy now if the market is falling as
did in fact slightly increase.
tomorrow’. Suddenly everyone was
Half way through 2021, many called
the market, they then couldn’t get a
So in 2018 the excuse was ‘why it’s bound the be even cheaper
where you were around the country.
Then the market really kicked in Feb 2021. The banks predicted C21 MARKET PULSE
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everyone was on the same page and agreed it was the right time to buy. That was the only time when you could be confident to buy and tell your friends, family and colleagues and not receive any negative comments or feedback as everyone was in the market together. That also meant you probably paid over the odds at auction as you were competing with
1982 to 2022 1982 to 2022 1982 to 2022 Corelogic Median Values - Combined Dwellings Corelogic Median Values - Combined Dwellings $1,200,000 $1,200,000
Corelogic Median Values - Combined Dwellings
$1,100,000 $1,100,000 $1,200,000 $1,000,000
$1,000,000 $1,100,000
Sydney
Sydney
$900,000 $1,000,000 $900,000
Melbourne
Sydney Melbourne
$800,000 $800,000$900,000
Brisbane Melbourne
$700,000 $800,000
Brisbane
$700,000
Brisbane
$600,000 $700,000
$600,000$500,000 $600,000
$500,000$400,000 $500,000
$400,000$300,000 $400,000 $200,000
$300,000$300,000 $100,000
$200,000$200,000 $0
$100,000$100,000 Feb 82 Feb 84 Feb 86 Feb 88 Feb 90 Feb 92 Feb 94 Feb 96 Feb 98 Feb 00 Feb 02 Feb 04 Feb 06 Feb 08 Feb 10 Feb 12 Feb 14 Feb 16 Feb 18 Feb 20 Feb 22 $0
$0
Feb 82
Feb 82
Feb 84
Feb 84
Feb 86
Feb 86
Feb 88
Feb 88
Feb 90
Feb 90
other emotional buyers, some of whom probably had deeper pockets that yourself.
Feb 92
Feb 92
Feb 94
Feb 94
Feb 96
Feb 96
Feb 98
Feb 00
Feb 98
Feb 02
Feb 00
Feb 04
Feb 02
Feb 06
Feb 04
Feb 08
Feb 06
Feb 10
Feb 08
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Feb 14
Feb 10
Feb 16
Feb 12
Feb 18
Feb 14
Feb 20
Feb 16
Feb 22
Feb 18
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Feb 22
4. I can buy a property at a conservative valuation price The other comment to make about
Whilst you might have made a
the statistics you see on the graph
quick $50k - $100k - $150k jump
above is that they are average
in capital growth depending on
property prices and so not every
when you bought in 2021, you
property dropped say 10% in 2018.
probably missed out on a lot more
In a good market everything sells.
than if you had been a contrarian
In a down market, good properties
and had bought over that full
still sell, but it’s those that are
for time-poor professionals – searching,
6-year period. In Sydney you might
second grade, are on a main road,
negotiating, renovating, and managing
have gained $300k, Melbourne
don’t have parking, aren’t well
$200k and Brisbane $200k.
presented that don’t sell or sell for a
If the banks, who are in the business 24/7, can’t accurately predict the peaks and troughs of the market, how are you expected to? I’ve been investing for 30 years and I can’t pick the market and so I don’t even try to. I’ve got a long-term focus and so I invest when: 1. I can get a mortgage from the bank 2. I have a deposit 3. I have enough cash buffer to last me the next few years
large discount. So if you’re buying
ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyers’ agency that buys homes and investments
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
A grade properties in blue chip
research companies and major industry
locations, chances are you would
figures. Chris is a qualified accountant,
have never seen a drop off. The biggest regret most people have around property is that they didn’t buy more and they didn’t take action. So my biggest tip is to take some action and to do it now. You might cop some grief from your friends, family and colleagues, but are you more interested in what other people think or setting yourself up financially?
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buyers’ agent and mortgage broker. For more information, visit www.yourempire.com.au and follow Chris on Facebook: @YourEmpire
SELL WITH THE BRAND RATED NO 1. Choosing the right agent to help you sell your property is a big decision. Sell with the brand that Australians have rated No.1 in customer satisfaction. Contact your local C21 Agent today for your no obligation FREE property appraisal.
Visit: C21.com.au
P R O P E R T Y M A R K E T U P DAT E
CORELOGIC’S HOME VALUE INDEX CONTINUES TO LOSE STEAM AS THE CASE FOR HIGHER INTEREST RATES MOUNT The residential property markets of Australia’s two largest cities have hit their first quarter of negative territory since the extended lockdowns of 2020.
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
Hobart also recorded a negative
year at 8.5%, slowing to 5.7% over
monthly change (-0.3%), the city’s
the most recent three month
first monthly fall in 22 months.
period. Similarly, Adelaide moved
CoreLogic’s Research Director Tim Lawless says the weakening state of the market has taken the rolling
through a peak in the trend rate of growth in January at 7.4%, reducing to 5.4% in April.
quarterly trend into negative territory
Perth and Darwin are the
across Sydney and Melbourne for
exceptions, where the rolling
the first time since these cities were
quarterly trend has gathered some
in the midst of extended lockdowns
steam since late last year. Perth
national Home Value Index (HVI)
in mid-to-late 2020.
housing values were up 2.4% over
continue to lose steam through
Demonstrating the diversity in
April. Housing values are still rising
housing conditions across the
at the national level, however
broad regions of Australia, half
the 0.6% monthly rate of growth
of the capitals are still recording
is the lowest reading since
a monthly growth rate above 1%.
“A rebound in migration rates as
October 2020.
Adelaide, at 1.9% growth in April,
state and international borders
Sydney and Melbourne, which have
led the pace of capital gains,
re-opened could partially explain
followed by Brisbane (1.7%),
the renewed exuberance, along
were the main drag on the headline
Canberra (1.3%) and Perth (1.1%).
with persistently low advertised
growth rates. Sydney housing values
Although monthly growth rates
recorded the third consecutive
remain high in these markets,
month-on-month decline, down
Mr Lawless warns the trend rate
0.2%, while Melbourne values were
of growth is easing in most of
flat (-0.04% when taken out to the
these areas as well. Based on
second decimal place). Technically
rolling quarterly change, Brisbane
values are down over three of the
dwellings moved through a peak
past five months in Melbourne.
rate of growth in December last
Sydney and Melbourne’s market slowdown has seen CoreLogic’s
the heaviest weighting in the HVI,
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the three months ending April compared with a recent lull through late last year when the quarterly trend fell to just 0.4%.
stock levels and strong economic conditions,” Mr Lawless says.
Click here to read the full article
LANDLORD INSURANCE
FLOODS, STORMS, RENTAL CRISIS:
THESE ARE THE HEADLINES WE ARE SEEING CONSISTENTLY EVERYWHERE OF LATE. BY COVER GUARD
All experts across every space have predicted these challenges will be with us for the next 6 months and beyond. Of most concern is that unprecedented rain and floods are predicted to continue for the foreseeable future. WHAT DOES THIS MEAN FOR PROPERTY OWNERS, LANDLORDS, AND PROPERTY MANAGERS?
cover on their policies. Flood
Due to the continuing devastation
redefining so as to avoid claims.
from storms and floods, insurers
Please ensure you read the fine
are paying a record number
print on all policies.
of claims, and suffering a huge backlog on claims. Moving forward 1. Insurers have already advised they will be increasing rates and premiums. This is not a possibility – it is a given with insurers acting on this in the coming months 2. Huge delays on insurance claim settlements – this is already happening now Aside from the above, the current national rental crisis has led an increase in rent for all tenants. This again will lead to a further
cover is a major target which most insurers are already excluding, or
$2,000 per week and up to 24 months (standard) • No delays on claim settlements Please do not hesitate to contact us and at the very least have
The resounding message here for
an alternate option from your
Property Management professionals
Landlords Insurance Solutions at
is for Property Management
hand for when you need this.
professionals is – Are your clients assets adequately protected when it comes to Landlord and Property Insurance?
We are here to assist you. We make insurance easy, and will add value to the Century 21 Landlord program for investors.
"The good news for investors who have their property assets managed by the Century 21
Contact us today if you have any queries or if you would like a quote.
network is that we have got you covered! Your Century 21 Property Manager can provide you with an insurance policy that sees your property protected and covered for floods through Cover
increase in premiums by insurers.
Guard Insurance. And at a best
REDUCTION ON COVER FOR FLOOD ACROSS THE INSURANCE MARKET
• Flood cover is included as
Most insurers are already reducing
• Loss of rent is covered up to
competitive price."
standard on all our policies
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DISCLAIMER This article was brought to you by Cover Guard Insurance. This advice does not take into account your personal objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs. Insurers have created Target Market Determinations (TMDs) which set out the type of customer and risk the product is designed for. We can confirm that you fall within these criteria for this financial product. If you would like a copy of the TMD, please advise us so that we can make this available to you. Before you make any decision about whether the policy is right for you, you should obtain and read the Product Disclosure Statement(PDS) for the policy.
LANDLORD INSURANCE
Frustrated with your existing Insurance Policy? Are you tired of delays, excuses and claim settlements reduced or declined?
We guarantee one of the best and most comprehensive landlord policies in the market at the most competitive pricing.
Start getting real value from your insurance today.
Full Accidental loss or damage cover
Why not, you’ve paid for the policy right?
Flood cover
With Landlord Insurance - Cover Guard Insurance has you covered.
Rent Default
We do not include delays, or excuses within our program. We are there when you need us most to ensure your claim is settled fast.
Loss of Rent cover up to 24 months and up to $2,000 rent per week
Cover Guard Premiums Our premiums are fixed by state and territory. These figures do not account for extra costs associated with extensions to the standard cover limits.
NSW
$430
QLD
$360
SA
$325
TAS
$300
VIC
$360
WA
$325
ACT
$385
NT
$420
Get the right advice for full peace of mind when it comes to your Landlord Insurance.
Cover Guard Insurance Pty Ltd (CAR 1280249 | ABN 94 637 331 241) Corporate Authorised representative of Community Broker Network Pty Ltd | AFSL 233750 | ACN 096 916 184
At Cover Guard
we always have you covered
coverguardinsurance.com.au
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Paying less in fees means you end up with more
REI Super no longer charge a monthly dollar admin fee so you can grow your super faster. We have changed and reduced our monthly fees so more money stays in your super – or your pension account. Switch to REI Super for lower fees for real estate professionals.
Switch now at reisuper.com.au/low-fees
This information may be general advice, which does not take into account your personal objectives, situation or needs. Before making a decision about REI Super, consider your financial requirements and refer to the relevant Product Disclosure Statement (PDS). 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 REIS 7523
TAX TIME
SMART IDEAS FOR YOUR TAX REFUND BY REI SUPER
HOW TO GET THE MOST OUT OF YOUR TAX REFUND THIS YEAR AND BEYOND It is officially tax season. Will you be receiving a tax refund this year? Here are some smart ideas to consider before spending your tax return on non-essential items. You have been working hard, and anything you get back in tax is a bonus, so why not put that bonus to work? Reduce debt stress Paying down debt is a great strategy
you contribute now to super the
non-essential expenses. Consider
as it reduces an ongoing cost,
more you’ll have for retirement.
locking it away in a separate savings
freeing up your monthly budget. Start with higher rate bad debt first, like credit cards. While a home loan has one of the lowest rates of any type of debt, it’s also a long-term affair and any lump sum you tip in today can knock years off the term and save you a
Even small extra contributions to your account can make a big difference to the size of your super
account or term deposit to help you achieve your savings goals.
Click here to read the full article
balance at retirement. Save it A tax refund is a great opportunity to establish or bolster your emergency savings. Ideally you’d
DISCLAIMER
Add to your super
six months of expenses. But even
Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.
Using a tax refund to grow your
having a small stash of cash can
This article was brought to you by Industry Super Australia.
retirement savings is also a smart
help you weather life’s unexpected
move. Many households worry how
events or outlays.
bundle in interest along the way.
they’ll maintain their standard of living in retirement. Given the power of compounding interest, the more
have reserves to cover at least
If you just leave your tax refund in a transaction account, it's too easy to dip in, even unintentionally, for C21 MARKET PULSE
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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. REI Superannuation Fund Pty Ltd ABN 68 056 044 770, AFSL 240569, RSE L0000314 Trustee of REI Super (ABN 76 641 658 449), SPIN REI0001AU, RSE R1000412. MySuper unique identifier 76641658449129. May 2022.
STYLING YOUR HOME
HOW TO STYLE YOUR HOME FOR SALE: TIPS TO MAXIMISE YOUR PRICE When you're selling your home, it's important to make sure that it looks its best. You want potential buyers to be able to imagine themselves living in the property, and styling it in a way that maximises its appeal is a great way to do this. LESS IS ALWAYS MORE
MAKE A STATEMENT
adding some decorative touches
One of the most important things
Including statement furniture
to these spaces, such as a pot of
to keep in mind when styling your
pieces is another great way to
flowers or a patio set. This will help
home for sale is that less is more.
maximise the appeal of your home.
to create a good first impression
You want potential buyers to be able
These pieces can be used to create
for potential buyers and make them
to see the property's potential, and
focal points in a room and can help
more likely to want to see the inside
cluttered rooms can make it difficult
to add personality and character.
of the property.
for them to do this. If you have a lot
When choosing furniture for your
of personal belongings, consider
home, it's important to keep in
putting them into storage while
mind the style of the property
your home is on the market. This
and the tastes of potential buyers.
will allow potential buyers to really
At Century 21 we recommend using
see the property as their own.
a stylist or staging company to
LET THERE BE LIGHT (AND AIR)! Another tip is to focus on creating a light and airy feel in your home. This can be achieved by painting walls
assist you in creating a look that will appeal to a wide range of people and showcase your property to its greatest potential.
Finally, it's important to make sure that your home is clean and tidy at all times. This includes both the inside and outside of the property. First impressions are important, so you want to make sure that buyers are impressed from the moment they arrive. A clean and well-presented home will help to maximise your chances of achieving a successful sale.
of natural light comes into the
DON'T FORGET YOUR EXTERIOR SPACES
property. Buyers are often attracted
One of the most important things
your way to styling your home for
to homes that feel bright and
to keep in mind when styling your
sale in a way that will help you to
spacious. A neutral palette of whites
home for sale is that potential
achieve the best possible price.
(either warm or cold – depending on
buyers will often judge a property
For more information on how to
the amount of natural light available)
based on its exterior. Make sure
style your home for sale, or if you're
works well for interiors. Painting
that your garden is tidy and well-
thinking of selling your property,
walls will often be discussed by your
maintained, and that your driveway
please contact us at Century 21.
agent and included in marketing
and porch are clean and clutter-
We'd be happy to assist you!
options for the property.
free. You may want to consider
C21.com.au
in light colours, and ensuring plenty
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Follow these tips and you'll be on
