BCNW May 2022 Report

Page 1

May report.


Our purpose. To create a place where we can facilitate our people’s growth.

Our values.

Family. Our colleagues are our broader family, assist when needed and when in need.

Mutuality.

Realising potential.

Respect our colleagues and our clients as you would like to be respected.

Unlock your full potential, encourage and support your colleagues.

Embrace change. Strive for excellence; be open minded and willing to embrace change.

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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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