March report.
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March report.
From our corporate director Dean O’Brien
To All,
Nationally we posted a 0.6% gain in home prices according to the Corelogic home index report released on 1 March. Australia has now enjoyed 17 consecutive monthly increases in home prices. Melbourne and Sydney are the two markets that continue to show signs of a slowing market, Sydney falling 0.1% and Melbourne posting no price change after posting similar results in December (-0.1%) and January (+0.2%). (Although Melbourne prices remain unchanged the median house price did in fact fall back under $1 million whereas unit prices increased slightly by approximately $2,000 Contrary to Melbourne, Regional Victoria is keeping its growth pace posting another 1.2% gain to register 22.3% annual growth. Rental prices in Melbourne over the course of the year have only increased 4.6% for houses and 5.5% for units which when compared to the National average at 9% its relatively a flat increase especially when we compare increases in petrol prices, food and building products. Regional Victoria rental return still favours the property investor with a 3.5% rental return. With the start of restrictions to finance now in place, and continued talk of interest rate rises it’s worth reflecting on history. For more than 30 years, Australians have largely seen interest rates go only one way. Between January 1990 and November 2020, the RBA cut rates 51 times, taking the cash rate from 17.5 per cent to just 0.1 per cent, however between June 1968 and June 1989, the average standard variable rate went from 5.38 per cent to 17 per cent. Our financial wellbeing is better now than prior to the pandemic. A report published by the Melbourne Institute and the Commonwealth Bank shows high levels of financial wellbeing is underpinned by healthy household savings. The median savings balance in December 2021 was a massive 42% higher than December 2019.
The Victorian Planning Authority has gazetted plans for new housing in Craigieburn West and Shenstone Park in Melbourne’s north and in Lilydale Quarry to the Yarra Ranges in Melbourne’s east. The move paves way for more than 15,000 new homes and more than 6,000 new jobs for our growing city. Regards, Dean O’Brien Director
We sell more. A snapshot of last months sales. Average sale price.
Sale price. High.
Low.
$765,278
$1.4M
$380K
Address
Number of suburbs sold in.
31
Sale Price
Suburb
50 Orange Grove
Bayswater
3
1
2
$1,075,000
36 Pindari Drive
Bayswater
4
2
2
$1,000,000
21 Coowarra Way
Berwick
3
2
2
$772,000
11 Sing Crescent
Berwick
3
2
1
$731,500
6/22-26 Buchanan Road
Berwick
2
2
1
$770,000
27 Nightingale Crescent
Berwick
4
2
2
$1,080,000
106 Wurundjeri Boulevard
Berwick
3
2
2
$975,000
10 Wanderer Court
Berwick
3
2
1
$656,000
12 Clendon Street
Berwick
4
2
2
$1,230,500
4/19 Tulip Crescent
Boronia
4
2
2
$800,000
1/59 Western Road
Boronia
3
1
1
$755,000
1/19 Tulip Crescent
Boronia
4
2
2
$909,000
6/19 Tulip Crescent
Boronia
3
2
1
$800,000
1/10 Joyce Street
Boronia
3
2
2
$760,000
17 Pasadena Boulevard
Clyde
3
2
2
$692,000
11 Bimberry Circuit
Clyde
5
2
2
$870,000
14 Honeybrook Lane
Clyde
3
2
2
$585,000
19 Buller Avenue
Clyde
4
2
2
$930,000
32 Connewara Crescent
Clyde North
4
2
2
$760,000
5 Percheron Way
Clyde North
5
2
2
$805,000
50 Glenelg Street
Clyde North
3
2
2
$660,000
We sell more. Address
Suburb
13 Parapet Lane
Clyde North
3
2
2
$620,000
10 Pablo Drive
Clyde North
5
2
2
$990,000
2 Otooles Road
Cranbourne
3
2
2
$640,000
7/5 -7 Fairfield Street
Cranbourne
2
1
1
$445,000
1 Binding Avenue
Cranbourne
3
1
2
$690,000
18 Cemetine Terrace
Cranbourne
4
2
2
$860,000
3 Reynard Place
Cranbourne East
3
2
2
$675,000
4 Chevrolet Road
Cranbourne East
4
2
2
$720,000
54 Linden Tree Way
Cranbourne North
4
2
2
$690,000
3/4 Rhoden Court
Dandenong North
2
1
1
$430,100
21 Wakeful Crescent
Drouin
4
2
2
$720,500
44/5 Piney Ridge
Endeavour Hills
3
1
2
$635,000
9/69-71 Frawley Road
Hallam
3
3
1
$577,500
14 Sunshine Court
Hampton Park
2
2
2
$540,000
8/20-22 Somerville Road
Hampton Park
3
1
1
$380,000
4 Redwood Court
Junction Village
3
1
2
$700,000
14a Lena Grove
Kilsyth
3
2
2
$855,000
7 Chedworth Court
Kilsyth South
4
2
6
$1,170,000
17 Ruby Avenue
Koo Wee Rup
4
2
2
$835,000
63 Denhams Road
Koo Wee Rup
4
2
2
$712,500
7 Virgona Way
Koo Wee Rup
3
2
2
$685,000
14B Charles Street
Koo Wee Rup
4
2
2
$735,000
5/148 Station Street
Koo Wee Rup
2
1
1
$457,500
Sale Price
We sell more. Address
Sale Price
Suburb
36 Roseberry Street
Lang Lang
4
2
2
$800,000
12 Jackson Drive
Langwarrin
3
2
1
$745,000
6/15 Warrenwood Place
Langwarrin
2
1
1
$602,000
62 Olive Road
Lynbrook
4
2
2
$1,415,000
18 Seattle Square
Narre Warren
3
2
2
$750,000
7 Keys Court
Narre Warren
3
2
3
$815,000
2 Chain Court
Narre Warren South
4
2
2
$847,000
5 Abercairn Drive
Narre Warren South
3
2
2
$748,000
17 Teal Court
Narre Warren South
5
2
4
$860,000
1 Comely Lane
Officer
4
2
2
$680,000
12 Atherton Avenue
Officer South
4
2
2
$950,000
4 MacAlister Place
Pakenham
3
1
1
$545,000
21 Kilburn Place
Pakenham
3
2
2
$590,000
8 John Street
Pakenham
3
1
2
$720,000
6 Spaniel Lane
Pakenham
3
2
2
$581,500
2 Hunter Lane
Pakenham
4
2
2
$720,000
30 Charles Drive
Pearcedale
4
2
2
$1,000,000
123 Sovereign Manors Crescent
Rowville
3
2
1
$710,000
25A Mercia Avenue
The Basin
3
2
0
$800,000
17 Harewood Street
Tooradin
4
2
2
$760,000
13 Cobain Square
Wantirna
3
1
2
$1,081,000
39 Wagner Drive
Werribee
4
2
2
$675,000
2/30 Yarra Street
Yarra Junction
Land
$500,000
We lease more. A snapshot of last months leases.
Average weekly rent.
$454 Address
Average monthly rent.
$1,973
Number of suburbs leased in.
Rental price p/w. High
Low
$990
$335 Leased price p/w
Suburb
24 Leased price p/m
9 Sydney Road
Bayswater
4
2
2
$460
$1,999
7 Grand Manor Drive
Berwick
4
2
2
$520
$2,260
2 Selby Court
Berwick
3
2
2
$510
$2,216
6 Chin Court
Berwick
3
2
2
$430
$1,868
33 Caravan Parade
Berwick
3
2
1
$430
$1,868
21 Monarch Road
Berwick
3
2
2
$500
$2,173
8/7-9 Reserve Street
Berwick
3
2
2
$400
$1,738
29 Romeo Avenue
Berwick
4
2
2
$500
$2,173
37 Valerie Street
Boronia
3
1
2
$450
$1,955
5/19 Tulip Crescent
Boronia
3
2
1
$520
$2,260
16 Amesbury Way
Clyde North
5
3
2
$450
$1,955
9 Sikes Road
Clyde North
4
2
2
$520
$2,260
11 Brightstone Drive
Clyde North
4
2
2
$370
$1,607
110 Moxham Drive
Clyde North
5
3
2
$650
$2,824
1 Hurdle Street
Clyde North
3
2
1
$400
$1,738
8 Marblelight Way
Clyde North
4
2
2
$460
$1,999
100 Glenelg Street
Clyde North
4
2
2
$480
$2,086
87 Sladen Street
Cranbourne
3
1
2
$390
$1,695
82 Springhill Drive
Cranbourne
4
2
2
$500
$2,173
52 Springhill Drive
Cranbourne
3
2
1
$410
$1,782
We lease more. Address
Leased price p/w
Suburb
Leased price p/m
58 McEwan Drive
Cranbourne East
4
2
2
$360
$1,564
39 Villager Street
Cranbourne East
2
2
0
$400
$1,738
9 Rannoch Street
Cranbourne East
3
2
2
$475
$2,064
9 Gabitt Street
Cranbourne East
4
2
2
$465
$2,021
15 Dalziell Crescent
Cranbourne North
4
2
2
$500
$2,173
116 Courtenay Ave
Cranbourne North
3
2
2
$450
$1,955
17 Hamilton Dr
Cranbourne North
3
1
2
$400
$1,738
10 Woodlands Road
Cranbourne South
5
2
2
$990
$4,302
4 Mahara Walk
Cranbourne West
3
2
2
$430
$1,868
3 Pagoda Place
Cranbourne West
3
2
2
$400
$1,738
14 Dusky Bells Drive
Cranbourne West
3
2
2
$450
$1,955
7 Wanstead Way
Cranbourne West
4
2
2
$530
$2,303
8/14-15 Hazelmere Avenue
Cranbourne West
2
1
1
$360
$1,564
30 Sylvia Street
Dandenong North
3
1
2
$370
$1,608
1/7 Aaran Close
Endeavour Hills
3
1
2
$410
$1,782
6 James Cook
Endeavour Hills
4
2
2
$460
$1,999
5 Waruka Close
Endeavour Hills
3
2
1
$440
$1,912
8/56 Doveton Ave
Eumemmerring
2
2
1
$360
$1,564
80 Nettle Drive
Hallam
3
1
1
$380
$1,651
4 Coley Court
Hampton Park
2
1
1
$430
$1,868
6/91 Cairns Road
Hampton Park
2
1
1
$335
$1,456
11 Blackwood Drive
Hampton Park
3
2
2
$445
$1,934
We lease more. Leased price p/w
Leased price p/m
Address
Suburb
152 Warana Drive
Hampton Park
3
1
2
$390
$1,695
3 Hazeldean Court
Hampton Park
6
3
2
$550
$2,390
16 Swain Court
Heathmont
2
1
1
$410
$1,782
29 Spring Road
Junction Village
3
2
2
$410
$1,782
58 Potts Road
Langwarrin
3
2
2
$390
$1,694
7 Hugden Close
Lyndhurst
4
2
2
$500
$2,173
11 Mermaid Grove
Lyndhurst
4
2
2
$490
$2,129
9 Lucy Court
Narre Warren
4
2
2
$550
$2,390
5 Diba Rise
Narre Warren
3
2
2
$450
$1,955
24A Tomasetti Crescent
Narre Warren
3
2
1
$400
$1,738
5 Doug Court
Narre Warren
4
2
2
$460
$1,999
5 Comet Chase
Narre Warren South
3
2
2
$380
$1,651
13 Parish Court
Narre Warren South
5
3
2
$450
$1,955
5 Forthbank Terrace
Narre Warren South
3
2
2
$460
$1,999
10 Sycamore Court
Narre Warren South
3
2
1
$370
$1,608
69 Kenneth Road
Officer
4
2
2
$450
$1,955
4 Everton Street
Officer
2
1
1
$440
$1,912
28 Majestic Drive
Officer
4
2
2
$440
$1,912
5 Gleeson Way
Officer
3
2
2
$430
$1,868
39 Kimberley Grove
Pakenham
3
2
1
$450
$1,955
26 Triumph Way
Skye
4
2
2
$500
$2,173
35 Chappell Drive
Wantirna South
3
2
2
$540
$2,346
Super Investment: How to use Super to buy a house
While initially designed as simply a way to save money for retirement, superannuation has morphed into a tool for buying property. While it might not be as simple as withdrawing super and buying a home, by using a self-managed super fund (SMSF) or tapping into the federal government’s First Home Super Saver (FHSS) scheme, it’s possible to buy a house, thanks to the tax benefits on offer. Australians who set up a SMSF can decide where their super is invested and that can include investment properties, but not a place to live. And through the FHSS scheme, first-time buyers can save for a deposit, via voluntary contributions, inside their superannuation account. Here’s everything there is to know about using super to buy a house. Using a self-managed super fund (SMSF) to buy a house Under the rules of a SMSF, Australians can use their superannuation to buy an investment property, but not one they plan to live in.
Banks will only lend up to 70% of the house value, and won’t allow lenders’ mortgage insurance to increase that amount. Remember there are many hidden costs involved in buying a home too. SMSFs are also required to keep a “liquidity buffer” – made up of things like cash and shares – that is worth 10% of the proposed investment’s value in the selfmanaged fund. Borrowing money to buy property is often done through a Limited Recourse Borrowing Arrangement (LRBA), which involves the SMSF trustees receiving the beneficial interest in the purchased asset, while the legal ownership is held in trust. SMSF property and arm’s length rules Any investment – such as buying property – through a SMSF must be done on an “arm’s length” basis.
The property can be purchased through the SMSF; a fund that can have between one and four members. The members make their own collective decisions about how their superannuation is invested.
Generally speaking, that means SMSFs can’t buy assets from, or lend money to, fund members or other related parties, although there are some exceptions to this rule. There are other rules too.
This could still mean investing in shares, but with property experiencing stunning growth in the last decade or so, many people instead include houses as part of their investment strategy and retirement plans.
The definition of “related parties” often trips up SMSF trustees because a related party is not defined merely as a relative or another member of a SMSF. It also includes:
Setting up a SMSF is a highly regulated process, and it’s smart to get professional financial advice to understand the responsibilities and set up the fund correctly. Use SMSF as a deposit Industry guru Michael Yardney, the chief executive of Metropole Property Strategists, explained how people can use super in a SMSF as a deposit to secure a loan to then buy an investment property. “If you had a $300,000 balance in your super, you could own $300,000 worth of a managed fund or BHP shares, or you could use $200,000 of that money as a deposit and borrow another $400,000 to buy a $600,000 apartment. So you get the benefit of leverage and gearing,” he said. Restrictions on borrowing through a SMSF are quite strict though. Firstly, it’s not possible to use the full super balance to buy an investment property. “You’ve got to leave some behind as a buffer. The banks are more careful so they’re only going to lend you a lower loan-to-value ratio,” Mr Yardney said.
• • • •
the relatives of each member the business partners of each member any spouse or child of those business partners any company that the member or their associates control or influence • any trust that the member or their associates control. It’s also important to note that employers who contribute to a member’s superannuation are considered related parties too. For further information on the rules and regulations surrounding SMSFs and property see the ATO’s website. Using the First Home Super Saver (FHSS) scheme to buy a house The FHSS scheme lets would-be first-home buyers save for a deposit inside their superannuation account.
Article Source : www.realestate.com.au
Rather than use existing super to buy a property – as can be done through a SMSF – the FHSS scheme helps Aussies save for a deposit faster, because of the concessional tax treatment of superannuation.
When first-home buyers are ready to release their FHSS amounts, they need to apply to the ATO for a FHSS determination and a release.
Those on the scheme can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions into their super fund to save for a first home of up to $15,000 per financial year.
For more information read our full guide to the First Home Super Saver scheme.
They can then apply to release those contributions and any associated earnings for a deposit. The dollar value of contributions that can be released is currently capped at $30,000, but from 1 July 2022, that amount will be increased to $50,000. How does the FHSS scheme work? The FHSS scheme is designed to help first-home buyers save a deposit faster by making additional contributions into their super – rather than into a saving account – so they can take advantage of the favourable tax treatment super gets. The first $25,000 that goes into the account each year is taxed at just 15% and not at the usual marginal rate. Any compulsory contributions an employer makes, as well as voluntary contributions, are counted towards this threshold. A first-home buyer can contribute up to $15,000 a year under the FHSS scheme to a maximum of $50,000, from July 1 next year. The maximum used to be $30,000 but was upped in the most recent federal budget. The first-home buyer can then withdraw funds contributed under the scheme to help pay for their first home. It helps buyers save for a deposit faster, because of the concessional tax treatment. To be eligible, first-home buyers must either live in the premises they’re buying or intend to do so “as soon as practicable” and also intend to live in the property for at least six months within the first year of ownership, after it is practical to move in. Eligibility is assessed on an individual basis, meaning couples, siblings or friends can each access their own eligible FHSS contributions to buy the same property. First-home buyers can start saving under the FHSS scheme by entering into a salary sacrifice agreement with their employer or by making voluntary personal super contributions.
What are the benefits of the FHSS scheme? There are a number of benefits to the FHSS scheme. • It can boost a first-home buyer’s savings by letting them save the difference between their marginal tax rate and the 15% rate charged on super contributions • Making concessional contributions through salary sacrifice can lower taxable income. • The scheme isn’t affected by falling markets. • A couple gets double the benefit. • There is a downside though. Contributing extra cash to the scheme means that cash is “tied up” to a deposit and not available for other uses. Get professional advice As with any major financial decision, people should seek advice from a registered financial planner before opening a SMSF, to understand how their und will operate and how they’re able to access and use their superannuation. Article Source : www.realestate.com.au
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