JUNE 2016 PROPERTY MARKET UPDATE

june 2016 property market updateSydney Property Market Review – June 2016

Data recently provided by Corelogic provides an overview of the Sydney property market. The year to date change in dwelling values has increased by 7.7% (5% for Melbourne) for the first 5 months of 2016 and 13.1% higher over the past 12 months.  Capital growth for the quarter is 6.6% and the median dwelling price is $782,000. Auction clearance rates in Sydney are holding the mid 70% level since April.  Lower mortgage rates have had a positive effect on consumer confidence and housing market conditions with the standard variable mortgage rate at its lowest level since November 1968. Annual growth rate has slowed significantly from its peak growth of 18.4% in July 2015 but has accelerated from 7.4% since March this year.

The volume of residential property for sale is 26% higher than a year ago and we may see the Sydney residential property market shift more in favour of buyers than sellers as the year progresses. The change in dwelling values from the beginning of January 2009 to the end of May 2016 has increased by 85.7% (70.5% Melbourne) and 58% over the past four years.

Gross rental yields have fallen in Sydney as capital gains have substantially outweighed rental gains and subsequently Sydney gross rental yields have trended lower. In saying this, property remains a popular investment option despite the lower yields as long as capital gains remain strong versus the returns being offered by cash and bonds and the volatility in equity markets.

Some lenders have recently relaxed their previous restrictions on loans for investment purposes which may result in a rebound in property demand in this segment over the coming months.

If you are looking to capitalise on the current market conditions and sell your investment property, why not obtain a FREE, no obligation market appraisal? Simply call the Infinity Property sales team on 9699 9179 or email infinity@infinityproperty.com.au with your property details and we will get back to you with a comprehensive market report.

Author: Bernie Tynes, Marketing Manager Infinity Property Agents

Posted in Properties | Tagged , , , , , , , , , , , , , | Leave a comment

What does a property Valuation cost?

when to value your sydney propertyThe cost of an Infinity Property valuation is completely FREE and no obligation is attached to the valuation. We pay an annual subscription regardless of whether we do 1 or 100 valuations, so the cost to you is FREE. We are also not into the practice of forcing our customers to sell their investments, but we are keen for them to know and trust our actions and educating our customers as to the potential value of their investments.

When should I obtain a valuation?

This is very different for each individual circumstance. Some people choose to obtain a valuation because they have a changing life circumstances, family bereavement, divorce/separation, moving overseas/interstate, life, job or financial pressures. Others are looking to extend their property portfolio and require a valuation to gauge their capital gains and lending ability. Note that the valuation provided by a real estate agent is different from that conducted by the banks valuers. Essentially the service and factors are exactly the same process, but the valuer will be more conservative for lending purposes.

Prudent individuals obtain a valuation every year before June 30 for taxation purposes. June is actually one of Infinity Property’s key months for valuation, particularly for those who hold investment properties. Your accountant may also require a valuation for tax depreciation purposes.

For a free, no obligation of your property value, please contact Infinity Property Agents on 9699 9179 or email infinity@infinityproperty.com.au

About Infinity Property Agents:

For over 20 years, Infinity Property Agents have been providing property sales and management services for the Sydney market. We have an established customer database of potential buyers and experienced investors who are seeking to expand their property portfolio. Our expert negotiation skills have resulted in record sales performance and the level and value of service that we offer exceeds that of any of the larger real estate brands.

For a free, no obligation valuation of your property, call Infinity Property Agents on 9699 9179 or email infinity@infinityproperty.com.au.

Author: Bernie Tynes, Marketing Manager (MBA, B.Bus Mktg)

Posted in Properties | Tagged , , , , , , , | Leave a comment

HOW AND WHEN TO VALUE YOUR PROPERTY 2016?

sydney property valuesInfinity property Agents manages an evidenced based pricing system using the latest up-to-date Australian subscription software. In addition to local demographic and geographic information on your property, the software allows us to examine every comparable property that has rented, currently  for sale and those recently sold according to various attributes such as number of bedrooms, bathrooms and car spaces for specific periods of time.

A physical inspection of your property by an Infinity Property Agent allows us to determine the physical attributes such as building structure, layout, condition, age, improvements, visible outlook from the property, and proximity to amenities and infrastructure such as schools, parks, transport options and shopping complexes.

In addition to all of the above, prior sales and valuation experience of the property agent plays a significant part in determining the true value of your property and at Infinity Property Agents; we have the benefit of 25+ years local Sydney property experience. We only work in the Sydney market and our experience, knowledge and customer client base is solely formed around the Greater Sydney region.

Underquoting laws:

In January 2016, the NSW government introduced new laws that prevented agents from understating property prices. Agents are now required to provide and advertise a specific price or price range for each property and the price guide the agent gives to a prospective buyer must match the estimate agreed upon with the seller in the Sales Agency Agreement.

An offense is committed when a price is stated and/or published that is less than the reasonable estimate of the property’s selling price. An underquoting offense may attract a fine of up to $22,000 and loss of commission and fees earned from the sale. This is being monitored by NSW fair Trading.

The laws were introduced to prevent interested buyers from wasting considerable money and time on inspecting properties, paying for various reports such as Strata and Council reports and then attending auctions simply based on price estimates that have served little to no purpose.

A complete list of the reforms can be found here > http://www.fairtrading.nsw.gov.au/ftw/about_us/legislation/changes_to_legislation/underquoting_reforms.page

valuation

About Infinity Property Agents:

For over 20 years, Infinity Property Agents have been providing property sales and management services for the Sydney market. We have an established customer database of potential buyers and experienced investors who are seeking to expand their property portfolio. Our expert negotiation skills have resulted in record sales performance and the level and value of service that we offer exceeds that of any of the larger real estate brands.

For a free, no obligation valuation of your property, call Infinity Property Agents on 9699 9179 or email infinity@infinityproperty.com.au.

Author: Bernie Tynes, Marketing Manager (MBA, B.Bus Mktg)

Posted in Properties | Tagged , , , , , , , , , , , | Leave a comment

Sydney Property Market Update – May 2016

sydney property market update may 2016In recent months, news of a looming election (likely on July 2) have acted to quell some buying and selling decisions, particularly given the potential for significant changes to the treatment of property taxes for investors. Housing markets had eased with prices growth going backwards, however new data confirms that investors are re-entering the market ahead of possible changes to negative gearing and lower interest rates.

Auction clearance rates are back up above 80% having fallen below 60% in December 2015. The recent demand comes after the RBA’s decision to cut official interest rates and the banks decision to pass on the full rate cut last week. After being on hold for 11 months, official interest’s rates were cut in May to a new record low of 1.75 per cent, their lowest since July 1968. Property prices in Sydney increased by 4.5% over the first four months of 2016 (Corelogic). Rental values remain flat over the same period. Housing prices are broadly rising but not at the same pace than we saw 6 months ago.

This latest cut is likely to revive prices growth, particularly with lower property listings firing up the inner city Sydney market. This again presents an excellent opportunity to take advantage of the limited stock available and achieve a premium price for your property. Should you be keen to discover the value of your property for tax or sale purposes, please call Michael on 0411 641 662 or our sales team on 9699 9179.

Posted in Properties | Leave a comment

Case Study – Renovations for Profit

BEFORE-AFTER RENOVATIONS - INFINITY PROPERTY AGENTSOver the past 4 years, Infinity Property Agents have managed a two bedroom apartment in Virginia Street, Rosehill. The average price of a two bedroom apartment in Rosehill was $425,000 (see list below).

The property was generating a rental income of $350 per week, with an estimated sale value of $390,000 to $400,000 in its current condition. The owner advised that they wanted to sell the property “as is” without any renovations.

The Director of Infinity Property Agents, Michael Kurosawa advised the client that the best option to achieve a premium sales result was for the property to be vacated, renovated and sold. We estimated that we could achieve a sale price of $500,000 based on a $30,000 renovation spend.

Renovation to Sale Service:
A common error for property owners is to overspent on renovations. Having Infinity Property manage the renovations resulted in total renovation costs of $30,500. We made changes to the kitchen and bathroom. The property was painted and new carpets and blinds were installed. The property was listed for Auction and within three weeks the owner accepted a pre-auction offer of $510,000. Although the new owner wishes to live in the renovated home, a new rental value has been estimated at $420 per week.

Good advice and selected renovations carried out by Infinity Property Agents resulted in a net benefit to the owner of an additional $80,000. Not only did we come in on budget for the renovations, but we also achieved above our best sales estimate.

SALE: $510,000 – August 2015
http://www.infinityproperty.com.au/selling/NSW/Parramatta/Rosehill/Apartment/1P1918

Renovations for profit - infinity property agents sydney

Renovations for profit - infinity property agents sydney

Renovations for profit - infinity property agents sydney

Renovations for profit - infinity property agents sydney

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Agents Results:

13/77 Virginia Street Rosehill NSW 2142
http://www.realestate.com.au/property-house-nsw-rosehill-116495035
Sold for $425,000 in April 2014

2/44 Virginia Street, Rosehill NSW 2142
http://www.domain.com.au/property-profile/2-44-virginia-street-rosehill-nsw-2142
Sold for $425,000 in February 2015

To find out how we can achieve a similar result for your property, contact Michael Kurosawa on 0411 641 662 or our sales team on 9699 9179.

Author: Bernie Tynes

Posted in Properties | Tagged , , , , , , , , , , | Leave a comment