June report.
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June report.
From our corporate director Dean O’Brien
To All “Are we at a peak now as the downturn builds a little momentum over June” The Australian Government released its first findings of its data releases from the Census we had in August 2021. There are some key findings so far from the census from real estate perspective, the first being the huge number of unoccupied properties across Australia, this no doubt impacts on prices paid by buyers and renters as there is a shortage of properties due to owners choosing to keep properties vacant. The second finding that relates to real estate is the increasing trend of single parent families and how this is places pressure on housing but also the cost of living having one income source. To review the findings visit the ABS website https://www.abs.gov.au/statistics/people/people-andcommunities/snapshot-australia/2021 Corelogic released its June Home Value Index (insert graph) and Nationally prices for all dwellings were down 0.6% with Sydney falling the most with a 1.6% drop and Melbourne a 1.1% drops. Melburnians now have a median home price below $800,000 for both units and houses, sitting at just over $798,000. Unit prices again, as we saw last month are holding their value more than houses, falling 0.6% compared to 1.3%. The pullback on prices so far this year has been small, particularly when you consider the ASX has fallen 18%. Prices as we know across the food industry, building industry and energy industry have all spiked due to supply chain issues and we also are seeing how supply affects pricing in real estate too. For example Melbourne and Sydney still remain 8% and 7% above 2021 stock levels whereas Adelaide and Brisbane which have all dramatically increased in price over the last 12 months are sitting at 16.9% and 14.9% down on stock levels. In Regional Victoria, we saw our first drop back in prices since before June 2020, with a 0.1% decline for combined dwelling which places the medium home price a little over $595,000
And lastly for this month’s edition, the question will need to ask ourselves if we are sellers in the market, is are we at the peak right now because what might be over the horizon is more interest rate increases and not just in July but with financial commentators predicting another rise in August, it could be a question worth pondering. That’s all for this month,
Looking at the rental market, rents Nationally ended the financial year at 9.5% above the previous 12 months. We certainly do have a very tight rental market and rents in Melbourne from a unit perspective is leading all capital cities in price growth with a 10.9% increase in rents. Homes in Melbourne are quite different though with only a 5.2% increase, we believe this lacklustre performance has been caused partly by the Residential Tenancy Act changes introduced in March 2021, but we believe rents will now increase more, due to rental providers now meeting the minimum standards criteria for a rental property.
Regards
Dean O’Brien
We sell more. A snapshot of last months sales. Average sale price.
$884,184 Address
Sale price. High.
$12.7M
Number of suburbs sold in.
Low.
33
$220k Sale Price
Suburb
4 Tracey Street
Bayswater
3
1
2
$905,000
3/3 Armstrong Road
Bayswater
3
2
1
$750,000
2/68 Bayview Rise
Bayswater North
2
1
1
$705,000
73 Bemersyde Drive
Berwick
4
2
2
$940,000
21 Peel Street
Berwick
6
2
2
$2,000,000
18 Coolabah Grove
Berwick
3
2
2
$678,000
37 Premier Drive
Berwick
5
5
2
$1,400,000
20 Cambridge Drive
Berwick
4
2
2
$1,030,000
3 Viewpoint Place
Berwick
4
2
2
$950,000
5 Coolong Avenue
Berwick
2
1
1
$660,000
114B Kanooka Road
Boronia
3
2
2
$815,000
3/11 Stonehaven Avenue
Boronia
3
2
2
$750,000
2/2 Rangeview Road
Boronia
2
1
1
$681,000
7 Medway Crescent
Boronia
4
2
5
$1,120,000
11 Lightfoot Rise
Botanic Ridge
3
2
2
$845,000
78 Maintop Ridge
Botanic Ridge
4
2
2
$1,020,000
26 Station Creek Way
Botanic Ridge
4
2
3
$1,040,000
22/12 Brunnings Road
Carrum Downs
3
2
2
$642,000
48 Grande Belmond Avenue
Clyde
2
1
1
$512,500
8 Kopico Street
Clyde
Land
$420,000
We sell more. Address
Sale Price
Suburb
13 Waler Circuit
Clyde North
4
2
2
$767,000
8 Landsdowne Avenue
Clyde North
4
2
2
$720,000
46 Earlston Circuit
Cranbourne
2
2
0
$1,325,000
48 Earlston Circuit
Cranbourne
4
2
4
$1,625,000
128 Willow Glen Boulevard
Cranbourne
3
2
2
$610,000
13 Toirram Crescent
Cranbourne
3
2
2
$690,000
10 Fernhill Avenue
Cranbourne
3
2
2
$720,000
19 Alexander Street
Cranbourne
4
1
2
$750,000
3/160 Clarendon Street
Cranbourne
3
1
2
$532,000
29 McAllister Drive
Cranbourne East
4
2
3
$815,000
18 Kirwan Drive
Cranbourne East
3
2
2
$660,000
3 Midnight Rise
Cranbourne East
3
2
2
$595,000
8 Reynard Place
Cranbourne East
3
2
2
$680,000
37 Mickleham Drive
Cranbourne North
4
2
2
$695,000
12 Hebrides Close
Cranbourne West
3
2
1
$580,000
29 Nerrena Rise
Cranbourne West
4
2
2
$680,000
5/133 Princes Highway
Dandenong
1
1
1
$290,000
231/80 Cheltenham Road
Dandenong
1
1
0
$220,000
12 Windermere Drive
Ferntree Gully
3
2
2
$800,000
4 Illira Avenue
Frankston
3
1
4
$675,000
52 Glendoon Road
Junction Village
3
1
4
$626,000
1 Latona Avenue
Knoxfield
3
1
1
$785,000
We sell more. Address
Suburb
53 Prestons Road
Koo Wee Rup
4
3
6
$1,475,000
19 Clarks Road
Lang Lang
4
2
2
$780,000
13 Stradbroke Crescent
Mulgrave
3
1
2
$830,000
20 Kilfera Court
Narre Warren
4
2
2
$930,000
65 Amber Crescent
Narre Warren
3
1
1
$730,000
5 Nolan Close
Narre Warren North
5
3
6
$2,770,000
1 Cliveden Drive
Officer
4
3
2
$965,900
35 Annecy Lane
Pakenham
2
1
1
$370,000
19 Camelia Way
Pakenham
3
2
2
$620,000
6 Ian Court
Rowville
3
3
2
$1,410,000
24 Knott Street
Safety Beach
92 Berrabri Drive
Scoresby
4
3
2
$980,000
11 Locksley Place
The Basin
4
2
2
$1,525,000
9 Harewood Street
Tooradin
3
2
2
$755,000
43 South Gippsland Highway
Tooradin
3
1
4
$710,000
17a Harewood Street
Tooradin
1 Coltain Street
Vermont South
4
2
2
$1,330,000
331 Mountain Highway
Wantirna
4
2
2
$1,130,000
320 Peacock Road
Woodleigh
4
2
30
$1,820,000
6 Glenwright Avenue
Woori Yallock
3
1
2
$700,000
Sale Price
$1,010,000
Land
$275,000
Land
We lease more. A snapshot of last months leases.
Average weekly rent.
$493
Average monthly rent.
$2,143
Address
Number of suburbs leased in.
Rental price p/w. High
Low
$750
$350
Suburb
23
Leased price p/w
Leased price p/m
21 Coowarra Way
Berwick
3
2
2
$450
$1,955
3/165 High Street
Berwick
3
1
2
$455
$1,977
5 Marlesford Crescent
Berwick
4
2
2
$500
$2,173
6 Orlando Place
Berwick
4
2
2
$550
$2,390
18 Don Collins Way
Berwick
4
2
2
$560
$2,433
8 Grand Manor
Berwick
4
2
2
$540
$2,346
156 Telford Drive
Berwick
4
2
2
$450
$1,955
25 Lawrence Drive
Berwick
4
2
2
$750
$3,259
6 Glenn Erin Way
Berwick
4
2
2
$395
$1,716
46 Pine Crescent
Boronia
4
1
1
$480
$2,086
22 Saddleback Road
Botanic Ridge
4
2
2
$450
$1,955
G01/13 Foundation Boulevard
Burwood East
2
2
1
$500
$2,173
16 Scenic Avenue
Clyde
3
2
2
$470
$2,042
27 Canyon Avenue
Clyde
4
2
2
$550
$2,390
6 Apium Street
Clyde
4
2
1
$450
$1,955
We lease more. Address
Leased price p/w
Suburb
Leased price p/m
4 Lusitano Way
Clyde North
4
2
2
$500
$2,173
11 Reina Court
Clyde North
4
2
2
$495
$2,151
13 Ippudo Way
Clyde North
4
2
2
$500
$2,173
23 Serene Way
Clyde North
3
2
1
$430
$1,868
8 Portia Circuit
Clyde North
4
2
2
$510
$2,216
95 Lineham Drive
Cranbourne East
3
2
2
$460
$1,999
115 Courtenay Avenue
Cranbourne North
3
2
2
$500
$2,173
17 Parry Street
Croydon
3
2
2
$490
$2,129
26 Boyana Crescent
Croydon
3
1
4
$510
$2,216
7 Boyd Court
Dandenong North
4
2
2
$510
$2,216
2 Patterson Court
Endeavour Hills
3
2
1
$430
$1,868
50 Essex Park Drive
Endeavour Hills
3
1
1
$350
$1,521
17/3-5 Milton Street
Ferntree Gully
3
2
2
$425
$1,847
4 Oleander Street Glen
Glen Waverley
3
2
2
$640
$2,781
39 Cornwall Street
Hallams
5
2
2
$520
$2,260
1 Eclipse Court
Hampton Park
3
1
1
$370
$1,608
We lease more. Address
Suburb
Leased price p/w
Leased price p/m
1/137 Moody Street
Koo Wee Rup
3
2
2
$350
$1,521
5/14-20 Shrives Road
Narre Warren
2
1
1
$400
$1,738
17 Teal Court
Narre Warren South
5
2
4
$655
$2,846
78 Harold Keys Drive
Narre Warren South
3
2
2
$450
$1,955
20 Hedgerow Court
Narre Warren South
4
2
2
$600
$2,607
57 Gledhill Street
Narre Warren South
3
2
2
$465
$2,021
13 Verdant Avenue
Officer
4
2
2
$450
$1,955
25 Koba Way
Officer
4
2
2
$550
$2,390
19 Mallard Avenue
Officer
3
2
1
$375
$1,629
27 Koba Way
Officer
4
2
2
$550
$2,390
57 Havana Parade
Pakenham
3
2
2
$420
$1,825
39 Ryan Road
Pakenham
4
2
6
$750
$3,259
13 Cobain Square
Wantirna
3
1
2
$450
$1,955
15 Milpera Crescent
Wantirna
4
2
2
$600
$2,607
30/3 Ashley Street
Wantirna
2
2
1
$430
$1,868
4 Snowden Place
Wantirna South
4
2
2
$490
$2,129
How refinancing your home loan could help fund your dream renovation
“Kitchens and bathrooms are where your biggest value can be gained,” she says. “Tweaking floor plans or adding something that it didn’t have before, particularly features that the market appreciates and looks for, is always the first port of call.” Exploring opportunities with the footprint you have, such as increasing the natural light by adding a window or a skylight, or opening up the kitchen space for living and dining, are great ways to add value with no structural impact. Outdoor spaces are also prime real estate for adding value, as it’s often more cost-effective and easier to DIY, says Findlay.
Financing home improvements can be costly, but using your home equity could be a cost-effective way to get the most out of your renovations. Here’s how to unlock equity in your home by refinancing and how you could use the funds to make improvements to your home. What is equity, and how much equity could I access? Equity is the difference between the total value of your property and your remaining mortgage balance. For example, a home owner with a property valued at $800,000 and a home loan of $400,000 has $400,000 in equity. When refinancing to unlock equity, lenders generally allow you to borrow up to 80 per cent of the property value. This is known as your usable equity. While your equity grows over time as the value of your property increases and as you repay your mortgage, it’s essential to consider that accessing equity can increase your total debt, says Lianna Mills, senior home loan specialist at Domain Home Loans. “When you’re releasing equity, you’re increasing the amount you owe on your property,” she says. “Therefore, you’re increasing your repayments and the interest that you could be charged throughout the loan term.” “But, assuming [the renovations] will improve the property’s value, they should ideally be able to make that money back.”
“It could be as simple as refinishing your deck, putting a cover over your deck or creating a gorgeous little paved outdoor area,” she says. “Any of those things can be really great, and unlike some other larger projects, those are things people can bite off and do themselves.” What are some other ways to finance a renovation? Home owners can also access funds to finance home improvements by increasing their home loan, known as a home loan top-up. A home loan top-up allows you to borrow against the equity you’ve built in your home whilst staying with your current lender, and is similar to applying for a new loan, says Mills. “The same rules apply as they would for an initial home loan or refinance with another lender,” she says. “That is, [borrowers] will have to provide all the relevant documentation when applying to confirm they have the capacity to borrow extra.” However, home loan top-ups are generally not available for mortgage holders with a fixed or guaranteed-rate home loan without breaking their contract.
How can I unlock equity in my home? Home owners can unlock their usable equity by refinancing their current home loan. This is known as a cash-out refinance.
A redraw facility, which allows mortgage holders to redraw any extra home loan repayments they’ve made, could be another costeffective way to finance renovations, says Mills.
A cash-out refinance involves replacing an existing home loan with a new, typically larger loan to allow for the release of usable equity.
“When you redraw from your home loan, as you’re using your own funds, there is no change to your home loan repayment or loan term,” she says. “And, even if your lender has a small cost to redraw, which most lenders don’t, it would be minimal compared to the cost and application process to refinance or top-up your home loan to fund improvements.”
Taking out a cash-out refinance is similar to applying for a standard rateand-term refinance, whereby mortgage holders will need to provide their new lender with all relevant information and documents and agree to new loan terms and conditions. However, the critical difference between a cash-out refinance and a standard refinance is that lenders usually need an explanation for what the equity is being used for, says Mills. “Whenever lenders are releasing money, they need to know the purpose of the funds,” she says. “Generally speaking, they’ll just need to know what’s being done and roughly how much it will cost.” Are there limitations to the renovations I can do using equity? While lenders typically require some explanation around what home improvements the equity will fund, the range of improvements home owners can make is usually quite broad, says Mills.
How to use equity to fund a home renovation Equity is the difference between the value of your home and the balance of your home loan. You can access equity by refinancing, but bear in mind that releasing equity typically increases your home loan balance. Equity can be used to fund most non-structural renovations. A construction loan is suitable for structural renovations. Other ways to fund a renovation include a home loan top-up or a redraw facility.
“Most lenders have quite flexible policies,” she says. “However, whenever the term ‘structural renovation’ is a part of the conversation, there are limitations with lenders.” If you’re looking to perform large-scale renovations that involve significant structural changes, such as adding a second storey, reconfiguring the layout or extending your home, you may need a construction loan. What kind of renovations could add maximum value to my home? Two main spaces are key to adding value to any home, says designer and renovation expert Naomi Findlay.
article source ; www.domain.com.au
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