PRDnationwide Penrith Publication - Issue Six
AUCTIONS GROWING The Market At A Glance - P.4 Auctions are on the rise in Sydney with 27% of all residential sales by auction last year compared to 17% in 2013. PRDnationwide Penrith is enjoying huge successes with auctions as a sales method to really test what the market will pay for a property. Vendors have been delighted with these recent successes that have seen additional money in their pockets Continued P.3
In this issue of Property News: • Pool Compliance Mandatory • Auctions Bringing Great Prices • Penrith Property Review
www.prd.net.au
(02) 4732 3711
LETTER FROM THE PRINCIPAL Dear Readers, The decision by the Reserve Bank to cut the cash rate by 25 basis points should take a typical standard variable mortgage rate down to 5.7% and discounted variable rates to 4.85% the lowest cost of mortgage debt since July 1968. This will add fuel to an already strong housing market that has seen dwelling values across Australia’s capital cities increase by 19.6% since interest rates started falling in November 2011. While lower consumer confidence might take some buyers out of the market, the low interest rate environment will see self funded retirees enter the investment side looking for a better return for their money. It’s good news for buyers and sellers alike. Kind regards,
Darren Latty Managing Director 0414 620 532
379 High Street, PENRITH NSW 2750 phone:
(02) 4732 3711
fax:
(02) 4732 3283
email: web: Disclaimer
reception@prd.net.au www.prd.net.au
Notice: Neither Darren Latty, PRDnationwide Penrith, nor Newsletter House Pty Ltd, nor the publishers and editors of articles in this issue, accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for its accuracy and do no more than pass it on. All interested parties should make and rely upon their own inquiries in order to determine whether or not this information is in fact accurate. ©Newsletter House Pty Ltd 2012 Ph: 02 4954 2100 www.newsletterhouse.com
POOL LAWS DEADLINE IS APRIL 29 Landlords, Vendors Note
Landlords and vendors will faces stiff penalties for non compliance with NSW Pool Laws. The Swimming Pools Amendment Act 2012 commenced on 29 October 2012 and made a number of amendments to the Swimming Pools Act 1992. The Act provides that: • NSW Swimming Pools Register be available for use by 29 April 2013. • NSW Swimming pools to be registered by owners by 29 October 2013. • Pool owners will require a compliance certificate before sale or lease of their property from 29 April 2015.
Pool Owners: Swimming pool owners are required to register their swimming pools on the online register provided by the NSW State Government. Swimming Pool owners are required to self-assess, and state in the register that, to the best of their knowledge, their swimming pool complies with the applicable standard when registering their pool. There is a penalty for owners who fail to register a swimming pool (penalty notice amount of $220). Swimming pool owners are required to provide a valid swimming pool compliance certificate before being able to sell or lease a property with a pool. Accredited certifiers under the Building Professional Act 2005 may conduct swimming pool inspections initiated by the pool owner. Councils are required to:
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Develop and implement a swimming pool barrier inspection program in consultation with their communities. • Report annually on the number of pool inspections undertaken and the level of compliance with the requirements. • Inspect pools associated with tourist and visitor accommodation and multioccupancy developments at three year intervals. • At the request of a pool owner, inspect pools prior to sale or lease. • Issue compliance certificates after an inspection which finds a pool barrier compliant with the requirements of the legislation. Compliance certificates are valid for three years. A swimming pool subject to an occupation certificate is exempt from an inspection program for three years from the date of issue of the occupation certificate. Councils may inspect any swimming pool that is the subject of a complaint. Council powers of entry will be consistent with the Local Government Act 1993. Councils may charge a fee for each inspection undertaken (up to a maximum of $150 for the first inspection and $100 for one re-inspection resulting from the first inspection). Locally, Council has advised that around 90% have been failing, mostly due to overhanging vegetation and non self-closing gates If you need advice about the requirements contact the team at PRDnationwide Penrith who will be only too pleased to guide you.
Auction Competition Brings Great Prices
PRDnationwide Penrith’s Managing Director, Darren Latty, believes Penrith will continue to follow a Sydney-wide trend that is seeing auctions increasing in popularity as the only way to gauge the true measure of what buyers are prepared to pay. Darren said that while owners can be reluctant to go to auction as it’s a different way of selling, it does get great results if handled by the right agent. “The key is to generate lots of competition,” he said. “To this end, at PRD we have dedicated buyer managers to help with this. They keep in touch with all interested parties, help arrange building and pest inspections and make sure potential bidders are ready to go.” The success of these methods was amply demonstrated at two recent auctions. 46 Pyramid Place, Penrith, a five bedroom, three bathroom home with a two car garage and pool had the potential to be a beautiful family home but needed a lot of work. The PRD team generated 200 enquiries, resulting in an auction with 25 registered bidders competing and raising the sale price to $28,000 above the vendor’s reserve at $596,000. 3 Ascot Place, South Penrith was an immaculate, but dated property featuring two separate living areas, an open plan design and timber floors. It sold to an investor for $45,000 above the reserve, realising $535,000 after 11 registered bidders fought to be the last buyer standing.
Research by industry anaylsts CoreLogic RP Data shows that nationally buyers and sellers are warming to auctions with great success. The national auction market at the end of February saw the highest clearance rate recorded since September 2009. This was evident in all capital cities along the eastern seaboard along with Canberra. The clearance rate from those auctions was higher than any in the past five years. Clearance rates persistently in the 80’s
indicate a market strongly favouring sellers. In Sydney, in the last week of February alone, 1,028 auctions were expected compared to 921 the previous week. Darren said that while not every property is perfect for an auction, it is a successful selling method that vendors really need to discuss with their agent. He added that the market is so hot that many properties advertised for auction do not make it, attracting pre-auction offers strong enough to win the vendor.
Selling your property just became easier If you would like to sell your property without the stress then call our property people on (02) 4732 3711 and the rest is easy!
Darren Latty Managing Director 0414 620 532
Daniel Latty Sharon Richards Residential Sales Sales Administrator Manager (02) 4761 6204 0417 047 458
Sophie Armond Marketing Coordinator 0490 461 317
Zain Allam Project Marketing 0410 329 298
Nathan Todd Buyer Manager 0437 609 290
Matt O’Farrell Listing Agent 0430 716 040
Rebecca Perkins Shelley Clark Buyer Manager Projects Coordinator 0414 247 323 0432 821 3370
Penrith Market Is Powering Ahead
Quarterly Report Positive High annual growth, great investment returns look to continue
The Greater Penrith property market witnessed high annual growth throughout 2014 and all of the signs are there that this will continue in 2015. Over the 12 months to December 2014, houses in the area recorded an average rise in median prices of 14.6%. Units recorded a similar 14.5% in the period. Combined average days on the market for both houses and units declined by 35.7% to just 28 days. Such low average days on the market indicates buyer competition is fierce and confidence in the area strong. The figures also show that buyers are prepared to pay a premium to secure a property. The combined average percentage change from the list price to the sale price remained high. Currently buyers are paying 4.2% above the asking price.
increase in median rents over the past 12 months - an 11.1% rise to a median of $500 per week.
Dwelling Projections Dwelling projections indicate an average annual household growth of 1.6% which should see an average of 1036 new dwellings added to the area each year.
Capital Projects In the first half of 2015 Penrith is set to receive $370m in new projects, ranging from mixed use projects to infrastructure.
To receive this report quarterly, email sophie@prd.net.au
Investment Analysis Current returns indicate a rental yield of 4.1% for houses in Penrith, with four bedroom dwellings seeing the largest
Rex Ellison Director Property Management 0418 201 114
Natalie De Chellis Business Development Manager 0420 371 107
Marnie Fawns Account Manager (02) 4761 6221
Stacey Haughton Property Manager 0432 548 838
If you would like help renting your investment property, call us on (02) 4732 3711 and see how easy it can be with expert advice!
Sarah Hosking Leasing Agent 0439 726 878