"What's Happening In New South Wales" The Western Suburbs Are Taking The Lead In Sydney's Next Property Boom

The experts may be arguing over whether Western Sydney can expect a property boom or not, but the people who live there have some news for them - it's already

here. While property prices in greater Sydney were still recovering in 2013, suburbs like Cabramatta West, Fairfield, Auburn and Merrylands were recording million-dollar sales. 24 August 2013. More. Strong Demand For Sydney CBD Apartments: PRDnationwide

A report into the Sydney CBD unit market – focusing on Dawes Point, Haymarket, Millers Point, Sydney and The Rocks – has found that demand for new apartments was strong in the first half of 2013. Investors and owner occupiers in the postcode 2000 suburbs are opting for one and two bedroom units, leaving sales

of existing units subdued. 27 August 2013. More. Magazine Top 50 Suburbs Two Years On Show Moderate Gains, And A Few Misses

Property Observer has looked at Your Investment Property magazine's top 50 best long-term performers as of July 2011 and identified the top performing suburbs along with the poorest performing suburbs two years on. New South Wales Marulan tops the list with the highest median house price growth over two years from $187,500 to $310,000 – a $122,500 price

growth. 27 August 2013. More. Suburbs Next Door To Sydney's Most Popular Postcodes Are Offering Huge Savings Sydney home buyers can save more than $430,000 and own their home up to 18 years sooner by buying next door to their favourite suburb. A Westpac study has revealed 10 hidden gem suburbs, located within a few kilometres of Sydney's most popular postcodes, where buyers can save significant money on a house, while still accessing the same amenities. 22 August 2013. More.

"What's Happening In Queensland" Small Lot Code The Small Lot Code applies to lots smaller than 450m², lots with an average width less than 15 metres and rear lots smaller than 600m². The code will apply when assessing a material change of use and/or building work for a house. Where a building envelope plan or alternative levels of assessment have been approved, the code will not apply. 28 August 2013. More.

Poor Fortune For Those Who Went To The Oracle On The Gold Coast

Almost every off-the-plan purchase in the Oracle development in Surfers Paradise has lost money when resold. Property Observer has found 42 instances where a unit in the 505-unit tower sold at a loss. There were just five instances where a property has resold at a higher price than the previous sale. 27 August 2013. More. Gold Coast Fails To Learn Lessons Of The Past

A Queensland bureaucrat created a storm in a teacup in January when he made a joke about the Gold Coast property market while speaking at a

Brisbane business function. He asked: What’s the difference between herpes and the Gold Coast property market? The answer: You can fix herpes. 18 August 2013. More. Sol Kerzner Rumoured Buyer Of Hayman Island In Whitsundays

Sol Kerzner, a billionaire South African hotelier, is reportedly buying Hayman Island in the Whitsundays from Malaysian investment firm Mulpha Australia Ltd. The Australian Financial Review reports executives from Kerzner International are meeting with top federal and state tourism bureaucrats and senior figures from the Queensland government. 27 August 2013. More.

Mining Cuts May Affect Mackay Market

Investors with properties in Mackay, or considering purchasing in the area, need to be diligent in the face of mining job cuts, according to a leading property research house. While the news in June of 450 job losses this year will certainly have an impact on the market, the Mackay region “continues to deliver strong yields”, said RP Data analyst Cameron Kusher. 21 August 2013. More.

Issue # 052 August 30th

2013

State Of The Nation Continued…

"What's Happening In Victoria" Investor Snaps Up Hoppers Crossing Cheapie At $285,000 Reflecting 5% Rental Yield

A three-bedroom house in Hoppers Crossing was the weekend’s cheapest auction sale in Victoria, according to Australian Property Monitors. Located at 34 Baden Drive, the house sold for $285,000 through PRDnationwide Werribee. Listing agent Greg O'Meara told Property Observer that the auction “went well”, with over 60 attendees, and five registered bidders. 28 August

2013. More. Low Supply Spurs Market

Melbourne's property market surged at the weekend, overtaking Sydney for the first time this year, as low stock levels and interest rates spurred buyer s to action.

Sydney posted an auction clearance rate of 79 per cent from 310 results, according to data from Australian Property Monitors (owned by Fairfax Media), slightly below the 80-plus per cent figures recorded in the past seven weeks. 26 August 2013. More.

Melbourne Prices Impacted By Elections

Historical analysis shows federal elections have had a short-term negative impact on Melbourne’s property values. Secret Agent Buyers’ Advocacy has released data from the 2004, 2007 and 2010 campaign periods indicating a decline in average inner-city property prices in the six months leading up to an election. 22 August 2013. More. Melbourne's 10 Hidden Gem Suburbs Cheaper Than Their More Popular Pricier Neighbours

Berwick is one of Melbourne’s most popular suburbs but if it’s out of your price range you could consider travelling just 12 kilometres down the road to Cranbourne North where the average house price is 26% cheaper. Westpac has compiled a list of ten Melbourne suburbs where it’s cheaper to buy than in their more popular neighbouring suburbs. 28 August 2013. More.

Families Evicted In Tenants Crisis

A steep increase in evictions has reached ''crisis point'' in Melbourne's fastest-growing municipality. Police are executing eviction warrants on 22 rental properties every month in the City of Wyndham, where families are feeling the financial sting of rising unemployment and Centrelink cuts harder than anywhere else in Victoria. 28 August 2013. More.

"What's Happening In South Australia" Houses More Popular With New Investors Small houses are more popular with first-time investors than apartments, according to the Mortgage Choice 2013 First Time Property Investors Survey. Forty-six per cent of respondents who are looking to purchase in the next two years wanted to buy small houses with one to three bedrooms. Small apartments with one to two bedrooms were the second most popular choice at 21 per cent. 22 August 2013. More.

Australia’s Worst Places To Own Property Forget whether they are great places to live, some property markets have not been kind to the people who own property there – not only crashing in value, but lacking signs of strong buyer interest. The following are markets where vendors are struggling to get a good result. 20 August 2013. More.

We Ask Northern Real Estate Agents For Their Top Sales Stories

Looking to make a fast and easy real estate sale, with zero or minimal discounting? No problem. As these examples show, swift and successful sales are being achieved in Adelaide's northern

suburbs - it's all just a matter of getting the marketing, price and presentation right. With spring (traditionally the busiest time of year for real estate listings) just around the corner, we asked several northern agents for specific recent stories of great sales to see what we could all learn from them. 26 August 2013. More.

Best Main Street In South Australia South Australians are voting to find the best main street in the state. The Mainstreet SA awards recognise best practice in mainstreet management, marketing, event, partnerships and contributions. The People’s Choice Award asks communities around South Australia about their mainstreet and highlights loyalty and support for the heart of the community. 28 August 2013. More.

Ignore Bubble Talk From Shallow Media For the past three years headline-writers at metropolitan newspapers have been in despair. They have been cruelly denied the opportunity to put “bubble” in a headline. With capital city prices mostly in decline since 2010, even a species willing to use fabrication when sensationalism won’t do has been unable to conjure a bubble out of our property markets. 22 August 2013. More.

State Of The Nation Continued…

"What's Happening In Western Australia" Perth At Peak, Melbourne At Bottom Of Property Cycle: Herron Todd White

The Perth property market is at the peak of its property cycle with house sales declining, according to Herron Todd White’s latest report. And unit sales are still increasing but the rental vacancy for units is now steady, compared to a severe shortage for Perth houses. In Sydney new unit sales are now frequently selling for above their potential resale value, though demand for new units and the volume of unit sales have dropped down

slightly. 27 August 2013. More. Median House Price Rises In Broome Despite Volatility: PRDnationwide

Despite its close ties to the volatile mining and tourism industries, the median house price in the Broome area for the year ending in April rose 2.5% to $685,000. A Broome area overview, by researchers PRDnationwide, says the Broome housing market is in a price point ‘sweet spot’ -- despite minimal peaks and troughs since the high in October 2007 of $716,000. 27 August 2013. More.

Calls To Make Tenant Evictions Harder

The Western Australia government is being called on to remove its policy of evicting public housing tenants for minor disturbances. Shelter WA is urging housing minister Bill Marmion to abandon its policy of evicting tenants for minor disturbances such as excessive noise, minor property damage or domestic disputes. 27 August 2013. More. House Hunters Love A Pool It’s perhaps unsurprising of a sun-burnt country, but Australian house hunters are on the look out for homes with a pool. We’ve tapped our latest search data and found that “pool” is the top of the list for refined search terms applied by both buyers and renters. “Waterfront” goes hand in hand, as we live up to our international reputation as lovers of a great view and an outdoor

lifestyle. 19 August 2013. More. Perth Prices Up 10% Over Past Year: RP Data

Perth home prices have increased 10% over the past year - double the capital city average, according to RP Data. Sydney leads so far in 2013 though, with prices up 7% in 2013 and 1% in the past month though they have dropped slightly in the past week. Melbourne prices are up 4.9% so far in 2013 and 0.8% over the past month. 26 August 2013. More.

"What's Happening In The Northern Territory" Five Darwin Growth Suburbs Identified Darwin is on track to becoming a real contender for the nation’s hottest market, with RP Data statistics showing considerable growth that is predicted to continue in several suburbs. While Sydney and Melbourne are generally considered the most popular places to buy property, general manager of Raine & Horne Darwin, Glenn Grantham, described the city as the “darling of Australian real estate” with values climbing almost 24 per cent since the global financial crisis (GFC). 16 August 2013. More. Buyers Rush Queue For Suburban Land

Hungry homebuyers have again swamped a Darwin land release. Forty-eight people stumped up $1000 each just to get an appointment tomorrow to buy land at the new suburb of Muirhead located in the northern suburbs. Lots ranged in price from $285,000 for a 450sq m block up to $440,000 for 907sq m. All 48 appointments were filled within days. Those who paid their deposit quickly got to be first in the queue - and get the pick of the lots. 23 August 2013. More.

Territory’s Flashest Home From the street it just looks like an unassuming suburban house. But this is a mansion in disguise - and at $5.4 million it has just become the most expensive single home sold in the Territory. The four-bedroom Hickey Court house in the posh

suburb of Larrakeyah, Darwin, is lapped by the waters of Cullen Bay Marina on two sides. It has a double lock-up garage for the cars and two boat berths for the yachts. 22 August 2013. More.

Poor Spend More Of Their Pay To Put A Roof Over Their Heads

Australians on low incomes have the cheapest average housing costs in the country but still spend a greater chunk of their weekly pay on putting a roof over their heads, an Australian Bureau of Statistics report shows. Housing Occupancy and Costs Australia, released on Wednesday, revealed that since 1994-95 the proportion of households that owned their home outright dropped from 42 to 31%, those with a mortgage increased from 30% to 37% and households renting privately increased from 18% to 25%. 28 August 2013. More.

State Of The Nation Continued…

If you would like to voice your opinion on any article you have read in the State Of The Nation Newsletters or elsewhere that has concerned you, please send the article and your opinion on it to us and we will include it in a future issue of the State Of The Nation. Send your opinion to kevin@smartpropertyadviser.com.au

"What's Happening In Tasmania" What Makes Australians Wealthy?

The wealthiest 20 per cent of Australian households have an average wealth of $2.2 million in 2011-12, according to the latest data from the Australian Bureau of Statistics (ABS). It said Western Australia, NSW, Victoria and the Northern Territory all had levels of wealth close to the Australian average, while South Australia, Queensland and Tasmania had levels of wealth less than the Australian average. The ABS said Tasmanian households had the lowest level of average wealth at around $600,000. 23

August 2013. More. Investor Market Forces Put First-Home Buyers

Investors attracted to the low interest rates and high rents increasingly available in Australia's capital cities have squeezed the proportion of first-home buyers in the housing market to a record low, analysts said. The executive chairman of Aussie Home Loans John Symond said first-home buyers are being forced out by residential investors drawn by high returns on their investment. "It is a windfall for investors. A shortage of accommodation pushes up yields and they can finance their purchases with the lowest interest rates in 50 years," he said. 19 August 2013. More.

Hobart Dwellings Lead The Way In Vendor Discounting: RP Data

Hobart houses are spending the longest time on the market - an average of 86 days - and are being discounted the most at an average of -7.5%, according to RP Data for the week ending August 25. Hobart units are also spending the longest time on the market, at an average of 96 days and an average discount of -11.3%. Sydney houses spend the shortest time on the market - an average of 30 days - but Darwin houses discount the least at -3.1%. 28 August 2013. More.

Changing Demographics Creating Opportunities For Tasmanian Builders: ACIF

While much of Australia is set to experience a flat to declining non residential building sector, recent industry forecasts show that Tasmania is set for an upswing in demand for non-residential work due to its unique set of factors. “Demographics play a big part in this,” says Peter Barda, executive director of Australian Construction Industry Forum. “An ageing population creates an increased need for aged-care facilities and health services. While the sharp uptick in demand for these assets will moderate when compared with the past decade, it will remain at relatively high levels.” 20 August 2013. More.

"What's Happening Internationally" US Commercial Real Estate Showing Steady Growth, Says Latest NAR report The commercial real estate market in the United States is showing moderate but steady growth, according to the latest forecast report from the National Association of Realtors. Vacancy rates generally are tightening in commercial real estate sectors with modest rent growth but Lawrence Yun, NAR chief economist, said commercial real estate is on a more moderate growth path. 27 August 2013. More. Investors FYI - How The Banks Work The Fractional Reserve System (which all banks operate on) is one that allows banks to borrow your funds in order to lend it someone else (technically speaking). Here's how it works; bank A's fractional reserve rate is 10% and you give them $100,000 of your money to place into a savings account, they're obligated to place $10,000 in reserve ( out of your $100,000) and lend out the remaining $90,000. Over 12 months the bank will pay you (the saver) $2000 or 2% interest for your $100,000 deposit. 15 August 2013. More.

Controversy Corner

Rise In Property Prices Threatens To Grow Bubbles The combination of very cheap debt and buoyant auction results has breathed new life into an age-old debate: are Australian house prices at risk of entering bubble territory? Even some real estate agents appear a tad concerned. John McGrath, who runs a large NSW real estate chain, this month said the most recent time things were this strong was during the previous real estate boom. 28 August 2013. More.

Some Parting Advice

“If you respect your tenant’s wishes they usually will respect your property.”

Until Next Time… Kevin Lee

www.smartpropertyadviser.com.au