May report.
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Our values.
Family. Our colleagues are our broader family, assist when needed and when in need.
Mutuality.
Realising potential.
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May report.
From our corporate director Dean O’Brien
To All, The property market has weakened since last autumn’s boom, but with plenty of competition around for the most outstanding homes, agents say it has turned into a more normal market. So what is a normal market? Steady auction clearance rates around the 60 per cent mark are one indicator, agents say, as the weeks of 80 per cent-plus clearance rates recorded a year ago are unsustainable over a longer period. Healthy levels of homes for sale are another factor, alongside having a clear run of weeks to open a home for inspection without the interruption of lockdowns. Another indicator is when there is one buyer for every seller, so the market is evenly matched – even if homes pass in on the auction floor and take longer to sell than in the days when a dozen bidders turn up on a Saturday morning and fought it out. But Real Estate Institute of Australia president Hayden Groves said any affordability benefits from cooling property markets would likely be short-lived. The National Housing Finance and Investment Corporation, a Commonwealth agency, has forecast a significant shortfall in the number of new homes needed to accommodate a growing population. So lets watch this space over winter. I hope to keep you all updated as information comes to us.
We have attached the Herron Todd White property clock for your review and if you have any questions please reach out to myself or one of O’Brien Real Estates professional agents or property managers. Regards, Dean O’Brien
National Property Clock: f{out,e,� Entries coloured orange indicate positional change from last month.
I
Albury
Ballina/Byron Bay Central Coast Coffs Harbour Hobart lllawarra Adelaide Adelaide Hills Albany Alice Springs Barossa Valley Brisbane Broome Bundaberg Cairns Darwin
Ill
.
Geelong Gold Coast Launceston
•
Lismore Mildura Newcastle South West WA
PEAK OF MARKET • Approaching Peak of Market
L
Perth
Emerald
Esperance
Port Hedland Geraldton Rockhampton Shepparton Gladstone Hervey Bay S'thn Tablelands Ipswich Sunshine Coast Kalgoorlie Tamworth Karratha Toowoomba Mackay Townsville Mount Gambier Whitsunday
• RISING MARKET
Start of Recovery
•
Starting lo • Decline
DECLINING MARKET •
Approaching Bottom of Markel •
BOTTOM OF MARKET
•
L,ability J,mited by ii �Lheme approved under Professional Standards Legislation This report is not intended to 00 compret1ensive or render advice and neither Herron Todd While nor any persons involved in the prep.1ration of this report accept anylormorliab1l tylor,1scontents
National Property Clock: Utt{B Entries coloured blue indicate positional change from last month.
------
Bathurst Burnie/Devenport Geelong Ballina/Byron Bay Central Coast Coffs Harbour Hobart lllawarra
•
Lismore Mildura Newcastle South West WA
PEAK OF MARKET • Approaching Peak of Market
Adelaide Dubbo Mt Gambier Perth Adelaide Hills Esperance Albany Geraldton Port Hedland Albury Gladstone Rockhampton Barossa Valley Hervey Bay Shepparton Brisbane Ipswich Sunshine Coast Kalgoorlie Broome Tamworth Karratha Townsville Bundaberg Cairns Mackay Whitsunday Darwin Mount Gambier Wodonga
e RISING MARKET
• Southern Tableands Toowoomba
Liability limited by a scheme aporosed under Professional Standards LegislatiJn This report is not inteMed to bE' comprehensive or render advice and neither Herron Todd White nor any persons involaed in the preparalim of this report accept any form of I at:1I 1ty 1or its contents.
Gold Coast Launceston
L
Starting to • Decline
DECLINING MARKET •
Approaching Bottom of Market •
Start of Recovery
BOTTOM OF MARKET
•
Canberra
We sell more. A snapshot of last months sales. Average sale price.
$863,827 Address
Sale price. High.
$1.8M
Number of suburbs sold in.
Low.
23
310K Sale Price
Suburb
1 & 2/1 Finch Street
Bayswater
4
2
2
$1,050,000
93 Stud Road, Bayswater
Bayswater
4
2
5
$826,000
6/107-109 Old Princes Highway
Beaconsfield
2
1
1
$580,000
79 Bernly Boulevard
Berwick
5
5
2
$1,530,000
14/25 Canberra Avenue
Berwick
3
2
2
$815,000
10 Edgbaston Circuit
Berwick
5
2
3
$1,050,000
5 Ellaswood Close
Berwick
3
2
2
$908,888
36 Canning Drive
Berwick
5
2
2
$1,450,000
1 Viewbridge Close
Berwick
4
2
2
$1,253,000
7 Gretel Place, Berwick
Berwick
3
2
2
$840,000
1A Daffodil Road
Boronia
3
2
1
$790,000
106/22 Park Crescent
Boronia
2
1
1
$498,000
3/46 Tulip Crescent
Boronia
3
2
1
$742,500
1/2 Central Avenue, Boronia
Boronia
2
1
1
$690,000
3 Lyrebird Court, Boronia
Boronia
4
2
2
$1,361,000
62 Bellis Circuit
Botanic Ridge
4
2
2
$1,185,000
2/320 Warrigal Road
Cheltenham
2
1
1
$570,000
We sell more. Address
Suburb
12 Union Street
Clyde North
3
2
2
$720,000
29 Deoro Parade
Clyde North
3
2
6
$712,500
8 Landsdowne Avenue
Clyde North
4
2
2
$760,000
49 Babylon Crest
Clyde North
27 Denistoun Crescent
Cranbourne
3
2
2
$630,000
12 Curtis Court
Cranbourne
3
2
0
$607,500
7 Carole Court
Cranbourne
4
2
2
$705,000
32A Virginia Street, Cranbourne Cranbourne
3
2
1
$600,000
Sale Price
$405,000
Land
43 Cornwell Crescent
Cranbourne East
4
3
3
$705,000
11 Flash Dan Drive
Cranbourne East
4
2
2
$845,000
6 Kibo Court
Cranbourne North
4
2
2
$735,000
9 Fig Court
Cranbourne North
3
2
6
$712,500
50 Circle Drive North Drive
Cranbourne North
4
2
0
$700,000
20 Roslyn Road
Cranbourne South
3
2
3
$1,835,000
145 Cranbourne Road
Frankston
3
1
3
$785,000
16 Sunshine Court
Hampton Park
2
2
2
$530,000
59A Meredith Crescent
Hampton Park
3
2
1
$510,000
19 Craig Road
Junction Village
4
2
1
$651,000
19 Bollen Way
Koo Wee Rup
3
2
3
$722,000
39 Shelton Park Drive
Koo Wee Rup
Land
$425,000
We sell more. Address
Sale Price
Suburb
21 Shelton Park Drive
Koo Wee Rup
4
2
2
$825,000
131 Moody Street
Koo Wee Rup
4
2
2
$699,999
19 Papley Avenue
Lang Lang
4
2
2
$790,000
34 Station Street
Lang Lang
6
3
6
$1,260,000
37 James Street
Lang Lang
3
2
5
$707,000
3B Anthony Street
Langwarrin
3
2
1
$750,000
8/40-50 Victoria Road
Narre Warren
2
1
1
$480,000
41 Player Drive
Narre Warren
2
1
1
$530,000
22 Duncan Street
Narre Warren
4
2
2
$750,000
15 Springfield Drive
Narre Warren
4
2
2
$810,000
55 Kendall Drive
Narre Warren
4
2
2
$875,000
9 Briar Close
Narre Warren
3
2
2
$770,000
28 Norman Place
Narre Warren
3
2
4
$781,500
18 Onyx Crescent
Officer
3
2
2
$687,000
14 Denman Street, Officer
Officer
4
2
2
$820,000
2 Hunter Lane
Pakenham
4
2
2
$711,000
40 Oakhill Road West
Pearcedale
5
3
6
$1,850,000
704/50-54 Claremont Street
South Yarra
1
1
0
$310,000
17 Fern Street
The Basin
3
2
0
$920,000
7 Apollo Court
Wantirna South
3
1
2
$1,150,000
We lease more. A snapshot of last months leases.
Average weekly rent.
$471 Address
Average monthly rent.
$2,049
Number of suburbs leased in.
Rental price p/w. High
Low
$695
$300
Suburb
26
Leased price p/w
Leased price p/m
19 Gardenia Drive
Beaconsfield
4
2
2
$450
$1,955
1 Cunneen Crescent
Berwick
4
2
2
$525
$2,281
9 Orsino Place
Berwick
4
2
2
$530
$2,303
37 Rodlarni Crescent
Berwick
4
2
2
$550
$2,390
16 Juliet Way
Berwick
3
2
1
$460
$1,999
51 Bemersyde Drive
Berwick
4
2
2
$500
$2,173
3/53 Elgin Street
Berwick
3
2
2
$480
$2,086
2/4A Buchanan Road
Berwick
3
2
2
$550
$2,390
18 Don Collins Way
Berwick
4
2
2
$560
$2,433
5/7-9 Reserve Street
Berwick
3
2
1
$420
$1,825
1/58-60 Peel Street
Berwick
2
2
1
$430
$1,868
39 Scanlan Street
Berwick
4
3
4
$600
$2,607
26 Charlotte Road
Boronia
3
1
2
$450
$1,955
104/1A Tulip Crescent
Boronia
2
1
1
$395
$1,716
30 Riverwood Drive
Botanic Ridge
4
2
2
$600
$2,607
62 Stringyleaf Street
Botanic Ridge
4
2
2
$375
$1,629
1 Nirvana Way
Clyde
3
2
2
$470
$2,042
14 Keskadale Drive
Clyde
4
2
2
$485
$2,107
We lease more. Leased price p/w
Leased price p/m
Address
Suburb
11 Fullback Road
Clyde
3
2
2
$450
$1,955
23 Serene Way
Clyde North
3
2
1
$430
$1,868
13 Ippudo Way
Clyde North
4
2
2
$500
$2,173
14 Quintino Walk
Clyde North
4
3
2
$490
$2,129
14 Wilam Court
Cranbourne
3
1
2
$355
$1,543
2 Otooles Road
Cranbourne
3
2
3
$430
$1,868
44 Challenger Circuit
Cranbourne East
4
2
2
$490
$2,129
43 Broad Oak Drive
Cranbourne East
4
2
2
$450
$1,955
13 Starlight Rise
Cranbourne East
4
2
2
$520
$2,260
26 Beechtree Way
Cranbourne North
4
2
2
$490
$2,129
7 Aileron Alley
Cranbourne North
3
2
2
$450
$1,955
39 Edgar Avenue
Cranbourne South
3
2
2
$430
$1,868
29 Statham View
Cranbourne West
4
2
2
$480
$2,086
Unit 12/41 King Street
Dandenong
2
1
1
$300
$1,304
Unit 101/80 Cheltenham Road
Dandenong
1
1
1
$320
$1,390
22/3-5 Hutton Street
Dandenong
2
2
0
$370
$1,608
Unit 3/28 Olive Street
Dandenong
3
1
2
$310
$1,347
Unit 109/5-7 Nepean Highway
Elsternwick
2
2
1
$500
$2,174
7/14 Adele Avenue
Ferntree Gully
2
2
1
$430
$1,868
1 Thomas Court
Hallam
3
2
2
$450
$1,955
We lease more. Address
Suburb
Leased price p/w
Leased price p/m
14 Emma Court
Hampton Park
3
1
2
$440
$1,912
Unit 1/5 Alfred Street
Highett
2
1
1
$450
$1,955
8 Julie Court
Langwarrin
4
2
2
$695
$3,020
63 Commercial Road
Mount Evelyn
3
1
2
$500
$2,260
44 Browtop Road
Narre Warren
4
2
2
$550
$2,390
38 Clarinda Drive
Narre Warren
4
2
2
$480
$2,086
73 Fountain Drive
Narre Warren
6
2
4
$650
$2,824
83 Fountain Drive
Narre Warren
3
1
2
$460
$1,999
31 Columbia Road
Narre Warren
4
2
2
$490
$2,129
12 Francis Court
Narre Warren
3
1
4
$435
$1,890
2 Tralee Circuit
Narre Warren South
4
2
2
$470
$2,042
16 Tenterfield Drive
Narre Warren South
3
2
2
$540
$2,346
26 Brook Way
Officer
4
2
2
$480
$2,086
25 Kallista Circuit
Officer
4
2
2
$500
$2,173
5 Goulburn Place
Pakenham
4
2
2
$440
$1,912
37 Stanhope Place
Pakenham
4
2
2
$450
$1,955
1/16A Arlington Street
Ringwood
2
1
1
$430
$1,868
7/44 Mccormicks Road
Skye
3
2
1
$460
$1,999
305/229 Toorak Road
South Yarra
1
1
0
$390
$1,695
9/91 Jenola Parade
Wantirna South
3
2
1
$550
$2,390
4 steps to grow your investment property portfolio If you want to grow your investment property portfolio, it pays to have a solid strategy in place.
Dinh recommends a strategy that will maximise your serviceability and your borrowing power, i.e. selecting a loan that will be easy and inexpensive to repay, while also offering you a substantial amount on good terms.
Almost nine years – that’s how long it can take to save a 20% deposit for a home in parts of Australia.
“Not all loans are created equal. For example, there are low, fixed rates in the market, which can line up nicely with some investors’ long-term objectives. However people generally don’t fix [their rate] because they want the flexibility to draw out more.”
Cobbling together the deposit for your next investment property is tough, no matter how many properties you have under your belt. But with the right strategy and long-term planning, you’ll be well-armed to overcome any challenges along your investment journey. Here’s a step-by-step process on how you could grow your investment property portfolio sooner. Step one: Secure your deposit Traditionally, buying additional investment properties requires refinancing your existing properties and using the equity to help form a deposit. This can come with extra fees, paperwork, possible lender’s mortgage insurance, credit checks and takes months to process. Thanks to innovations in financing, companies like Futurerent are making it easier to buy your next property. Futurerent helps investors grow their property portfolios by giving them up to $100,000 of rental income in advance, which investors can use to fund their deposit when buying another property. Your rent in advance from Futurerent can also be used to do renovations, or otherwise reach better financial footing. “The banks make increasing your home loan by $100,000 as difficult as getting a $1,000,000 home loan,” Futurerent CEO Godfrey Dinh explains. Given Futurerent is not a loan and is only an advance of rental income, it is a much simpler and faster process. “Most borrowers don’t realise that by increasing your home loan, you’re adding years of interest that snowballs over time. To avoid this cost, people are using Futurerent for their deposit.”
This is another common reason why investors use Futurerent – they can get the best deal possible and reduce their interest costs, helping investors improve their serviceability and enjoy the flexibility to access money whenever they want. Step three: Seek properties with hidden value While you’ll need to consider your own circumstances, by purchasing property you can add value to, you’ll be able to increase your income and your equity with each purchase. Dinh explains: “You do that by finding a property that has been neglected, or buying in a market where there has been rental growth that can be realised with simple renovations. This might be a fresh paint job, improved lighting, renewing old flooring, or installing air conditioning. “We also see a lot of savvy investors purchasing properties that can be improved, to add another income stream. For example, adding a granny flat, or even a bedroom.” Step four: Consolidate your position and plan your next purchase With increased equity and rental income, you’re now in a better position to continue growing your portfolio. Buying more properties means taking on more debt, so structuring your finances in a way that maximises your serviceability will be key to enabling further sustainable growth. With Futurerent, not only are you getting your rent in advance, but you also continue to earn up to two thirds of your rental income while repaying Futurerent. Being clear about the numbers will help you work out your sweet spot: the amount of rental income you can afford to access in advance while still being able to afford your mortgage repayments and other property expenses after the instalments to Futurerent. Dinh has seen more property investors using Futurerent across multiple investment properties to maximise the rent they can get in advance. “Because we give investors up to $100,000 per investment property they own, they can access more rental income as they accumulate more property, making it easier to keep growing,” he says.
As a simple and efficient way to make your next move without having to compromise on budget or pay LMI, Futurerent offers property investors an innovative new solution for their deposit. Step two: Select a financing strategy A financing strategy refers to how you’re going to buy the investment property and the type of mortgage that will best meet your needs. article source : www.realestate.com.au
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