Hass is senior partner of Investors Advisors Australia, who is himself a keen property investor. He is passionate about building outstanding client relationships based on trust and value. His role is to ensure that our professional team deliver an outstanding and positive experience to all our clients. Hass is a businessperson with a wealth of experiences both locally and internationally. He has held senior management positions, such as Director in the strategic marketing group E-professionals Sydney.
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10 Incredible Types of Cash Cows that will Bring You Extra Cash

10 Incredible Types of Cash Cows - Investors Advisors
Do you want to make life more comfortable by having lucrative cash cows? Yes, you can. A cash cow is a business or venture that you can begin with no much investment. It may be slow, but it inevitably brings much profit in the long run. Cash cows bring much income than what is required in starting or used in maintaining the venture, which is ideal for business-starters.

They include:

  1. Multies

As they are popularly known, multies are the ability to get various streams of income that covers all commercial areas from the residential to industrial-aspect to regular involvement. One fantastic thing with cash cows is how the right knowledge and constant practices can make it quite easy, thereby resulting in lucrative streams of money for you.

When starting multiple streams of income, you have to consider the procedure, protocols involved, which includes getting in touch with your local authorities if need be. One crucial way to be active with multies is to ensure its cash flow can adequately sort out debt. For instance, if a landlord or a landowner decides to build another house, it should be for a short-term purchase or hire purpose. This is to give room for constant reselling of home instead of just getting incoming cash.

Resale of buildings will help cover the debt of other valuable properties, thereby keeping debt on land assets low. So, whenever you want to purchase land, and you build two houses, ensure you put one of your homes for sale, thereby paying your debt for the first house and still keep the profit.

  1. One- Person Student Housing

Rather than have different rooms in your home without being useful, it is wise to turn those number of rooms into assets to make money for you. There are many people in need of accommodation out there.

There are cases whereby the returns increase, especially in dealing with property management cost for the family. Save more and earn more by giving out those rooms for rent. Moreover, do it with legal backings and cautious practices.

  1. Side income from Granny flats

You can make extra money by renting out your granny flat or other small space/apartment on your property which you don’t need, and profiting from using space you would not be otherwise using.

The Government of New South Wales States has given investors the privilege to make use of old-looking houses also know as Granny flats for revenue purposes. The Government of The Queensland is also involved in this unique idea to harness every available human-made resources as well as for a steady flow of income for the government to meet the basic needs of the people which shelter is one of the essential requirements.

10 Incredible Types of Cash Cows - Investors Advisors

  1. Trading/Commercial Cash cows

These are ventures done regularly for profit making, so whether they are full commercial or partly investments, these type of businesses come with high risk as there are other issues involved such as hygiene regulation, safety rules, and the likes. The chances are always on the owner and not the customers. For you to benefit from this type, for instance, if you are to build a house, it’s best to rely on an already made structure so that the risks are minimized.

  1. Car-Parks

This type of cash cow is easy to maintain if situated at a commercial zone. Most developers do not see the need to structure a property used commercially to save cost. For starters, ensure the car-parks are in areas where they can be utilized consistently.

  1. Warehousing

Daily, businesses require a storage facility to keep their goods in stock. Any location of choice can be used for warehouse construction, but it is recommended to build a warehouse or a storage facility in areas where they are most needed. Like the seaports, markets. To get a flow of income regularly.

10 Incredible Types of Cash Cows - Investors Advisors

  1. Hire Accommodation/motel/Housing

Hire Accommodation/motel/Housing is also one of the oldest yet effective cash cows, that brings in constant cash flows. It varies from the almost high-class style of accommodation that has every supply needed in the home to the low class. Some may not have a cleaner in view most times when looking for shelter. If you are to venture in this type of business, you can get an experienced agent manager who will require a commission for each work carried out by them.

Handling this type of business also requires getting a website to stand out as a professional to corporate bodies, communities, and local government areas. This will ensure your business sounds legit and convincing to be patronized. If getting a website is time-consuming for you, you can place adverts on other related housing websites like stayz.com. They charge a token for each rental.

Moreover, adding cleaning charges and other additional charges will not affect your profits.

 

cash cows, extra income

  1. Lease

This type of business is for risk-takers and for those who can quickly strike a profitable deal with clients. Peradventure you fall in this category, and then take the lucrative opportunity in this business. This business is all about getting a property at a more affordable lease price and reselling the same property at a higher price. This is mostly used for commercial purposes and in places with massive lands. Some areas like Australia may not be fit for this type of business. Nonetheless, it can bring an increased source of income when done commercially.

  1. Wrapping Means

Wrapping is a case where an asset is bought at the market’s lower end to another person who may not be able to pay off alone except through financial institute support, then they later payback the loan with an agreed interest rate. This allows competent buyers who are not financially stable to buy an asset with the help of financial institutions as the bank.

It also implies that suitable buyers (business starters, sole proprietors, divorcees) are not only judged by their financial pocket alone but by their commitments.

  1. Industry Specific Investment

Industry investment is one of the cash cows to go into. However, some investors who have seen the light of profitable cash flow only restrict their reach to some specifications such as student’s accommodation, retirement funds. For you to enjoy the benefit of investing in the industry area, commercial areas that involve natural resources industries such as steel industries, quarries mines, transportation services, and much more should be harnessed.

The chances of getting more customers and sales will be slim when you go for properties/investment with restricted usage like the pensioner funding. Another challenge with this venture is the difficulty of lending finances. As this is a known cash cow that can be restricted if not adequately handled. Diligence is needed in this type of business to get your profit.

Cash cows are long- term businesses that can make your liability become more of an asset to you and bring more income along the way. This also indicates that for every business to thrive, dedication and commitment is required, whichever activity you choose to go into, ensure you are knowledgeable about the company to avoid unnecessary risks and losses in your business. It is also pertinent to know the technical know-how of a business. Learn from others who have been in your choice of company to emerge the best in your choice of cash cow ventures.

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10 Things All First Home Buyers Should Know

First Time Home Buyers Guide [10 Tips]-Investors Advisors

Buying your first home can be an overwhelming process, with so much information to take in and processes. Here are the top 10 things all first home buyers should know.

  1. Study The House Buying Process

The first thing you need to make sure you know is how the fundamentals of the house buying process works. Research how the transaction works, what clauses are common in contracts, and what conditions generally apply, such as a cooling off period. Knowing how the property transaction is supposed to work will put you in a stronger position to be able to navigate your purchase, know what questions to ask, and what may raise alarm bells.

  1. Financing

The next thing to make sure you have in order is your financing. Before you can put an offer in on a house, you will need to have financing confirmed. This means taling to a financial planner or your accountant to know how much you can afford to borrow, and getting pre-approval on your loan from a bank or financial institution. Having pre-approval is not necessarily necessary in order to put an offer in on a property, but it can give you the edge over other offers if the property is popular. You should also seek advice from a financial planner as to whether the particular property fits within the best strategy for you. They may also have other advice, such as whether you may be eligible to apply for the first home owner’s grant.

First Time Home Buyers Guide [10 Tips]-Investors Advisors

  1. Have a Large Deposit

As a first home buyer, it is important to have a large deposit. Having a healthy deposit means that you will pay less interest on the loan overall, you will have more equity available to you in the future should you need it, and you avoid costs like mortgage insurance.

  1. Go Through the Contract with a Fine-Toothed Comb

Yes, you will have lawyers and agents in place to handle all the details, but it is important that you are familiar with all the small details in your purchase contract. In particular, you want to make sure that there are “get-out” clauses written into the contract. This means that if something unexpected comes up during the purchase of the property, such as the discovery of major structural or pest issues with the house, you will be protected.

  1. Look Into The FHOG

As a first home buyer, you should look into the FHOG (first home owner’s grant) to see if you are eligible, and if this would be a good option for you. The availability of this grant varies depending on which state you are living in, but you may be eligible for $10,000 – $15,000 to help you to buy your first home. Criteria also differs between states, but generally these grants are available for those who are building a new home or buying an existing one for the first time, and are planning on living in it for at least the first 12 months.

First Time Home Buyers Guide [10 Tips]-Investors Advisors

  1. Seriously Consider Your Budget

Be cautious about the amount of money you are looking to borrow. Just because a bank is willing to lend you a certain amount of money, doesn’t mean you should borrow all of it. Taking out a large mortgage can put you under a significant amount of financial stress. Seek financial advice and carefully consider your budget to make sure you are not overstretching yourself by borrowing too much.

  1. Hire a Buyer’s Agent

Although it is not necessary to hire a buyer’s agent in order to buy a house, this can be highly beneficial. We are very familiar with seller’s agents, who are hired by vendors to sell a property, but buyer’s agents have the mandate to look out for the needs of a buyer.

  1. See Your Property as an Investment

Even if you are buying a house as a PPR (“principal place of residence”, that is, you are planning to live in it), this doesn’t mean it can’t be an investment. Even your PPR can be an effective investment property for you if you buy in an area which has strong potential for capital growth. You can then leverage this investment in the future to buy additional investment properties, or invest in a larger PPR.

First Time Home Buyers Guide [10 Tips]-Investors Advisors

  1. Look to The Future

Buying a house is a big decision, so you want to make sure you make the right choice to set yourself up for the future. You should see the decision as a step towards your next purchase. Consult with a financial planner who will be able to tell you if you should focus more on cash flow, or on building up equity.

  1. Look Into “Sinking Funds”

As a first home buyer with low equity, sinking funds could be a great option to increase your equity and improve your financial position. For example, by buying into strata units you could use sinking fund money (assuming the body corporate agrees) to improve the value of the property through renovations and so on. This will then increase the equity of your property which you can leverage for future purchases.

 

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Top 10 Tips on Insurance

10 Best Tips on Insurance [ Guide ] -Investors Advisors

1. Insurance for Landlords

It is a straightforward task to ascertain whether you need landlord insurance or not. Every landlord should have Landlord insurance. Many of the landlords spend much money on things that are not relevant; hence; they should spend time to peruse the insurance policy. Without doubt, a majority of the Landlords are usually reluctant to acquire the landlord policy, and they do soon after they have lost much money. It is very pertinent to carry out a thorough check and investigation on your tenants to ensure that your property is in protected. You should note that accident is inevitable and even the best tenants can spoil your property by accident or by mistake. Your landlord insurance policy should suit you, and you should spend ample time to research about it before taking decisions.

  1. Insurance for construction One of the paramount things for people handling construction work is construction insurance. Construction insurance is applicable for all forms of, including renovations, need buildings and extensions. Construction insurance is a very dicey insurance sector, and the provisions are not the same for different insurance companies. You have to be well vested with the required information to ascertain whether you have the coverage for unforeseen occurrences like storm, fire, and theft.
  2. Insurance for public liability

The focus of Public liability insurance is on personal injury and damage of property. The coverage is not the same for different companies, and this underlines the reasons why you should read the policy carefully. It is incumbent on all businesses and traders to have this insurance and not meant for property owners only. The fact is that you are liable for the risks involved in third-party injuries, strangers, or unauthorized/authorized users of your property.

10 Best Tips on Insurance [ Guide ] -Investors Advisors

 

  1. Insurance for buildings

This one is straightforward to understand, and it is straight forward. It covers the cost of replacement and renovations for buildings that are damaged by storm, landslide, or fire. In this case, the insurers will pay you based on their valuation for the rebuilding of the house. If you are residing in areas that are prone to natural occurrences, then you will pay more for insurance.

  1. Insurance for contractors

It would be best if you were watchful of the contractors that you hire for your job. They should be licensed, and you have to request to glance through their insurance policy. Glancing through it would not be beneficial in anywhere. You have to take your time to peruse it to decipher the details of the insurance policies i.e., things that are covered and not included. It is pertinent for all contractors to have insurance coverage in:

Public liability: This offers protection against strangers and inevitable occurrences such as death or accidents, financial losses, and other substantial damages.

Professional indemnity: protection is offered for your actions and professional performance. This provision offers you protection against legal cases and related issues.

Product liability: Your goods may cause injury, but is provision will protect you against such claims.

  1. What is the right time to end the insurance policy

During the ends of every insurance policy, liability is transferred, and this is applicable in virtually all the states within Western Australia as an exception. Assuming you have some clauses in your contract which offers the leeway for you to exceed the agreement, then you can trigger the terms to end the contract or insurance when you insure some losses or liabilities. There is no way out for you once your deal finalizes without conditions; hence; you have to ensure that your insurances are well defined.

10 Best Tips on Insurance [ Guide ] -Investors Advisors

  1. Life Insurance

Death is an inevitable end, and it can occur at any time. This insurance coverage over protection against the burden left for the loved ones. No one would love his loved ones to suffer or struggle financially, so it is pertinent to provide insurance coverage for mortgages, income, and every other investment.

  1. Insurance for income protection

We are all mortals and can be prone to unforeseen circumstances that might incur heavy financial losses. If you experience this, then you may not be able to meet your daily needs. With income protection insurance, you will be able to secure yourself during difficult times. The protection will provide you with 75% of your average earnings. As usual, you have to access the provisions of the policy to ascertain whether it is suitable for you.

  1. Assess the compensation policy for your employee

As an employer, it is incumbent on your provide the needed insurance for your workers, especially in cases when they are injured. You have to provide compensation for both full-time workers and part-time workers. Most people are ignorant of the fact that compensation should be given to part-time workers. This type of payment is known as Home worker’s compensation instance. Part-time workers are workers who come to work when the need arises such as gardeners, home tutors, baby sitters, etc.

  1. Insurance for contents

It is very imperative to inform your insurance company for upgrading your insurance coverage if you experience changes such as relocation and renovation. Failure to do so may be compromising to your insurance policy, and you may no longer have access to the coverage. In cases such as these, you have to upgrade your insurance policy to renovation insurance.

 

 

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Top 10 Tips on What to Inquire from Insurance Professionals

10 Tips on What to Inquire from Insurance Professionals

  1. When did you start practicing insurance? How many years of experience do you have?

You have to hire an experienced insurance professional who has in-depth knowledge of the field. The person should be able to provide you with highly profitable deals.

  1. Do you have the ability to compare between fixed interest rates and the interest rates that vary? Moreover, then offer me some advice on the ideal option that I should choose?

They should be very pragmatic, and you have to ensure that the option offered to you ideal and should provide immense rewards. It would be best if you asked them to prove to you that the choice is perfect.

  1. Do you possess the license of Australian financial services and RG 146 complaint?

You must be very sure that the insurance broker that you hire possesses all the necessary licenses and they should all be current.

10 Tips on What to Inquire from Insurance Professionals

 

  1. Which one are you? Insurance broker or insurance advisor?

Insurance advisors are workers for single companies, and they will provide their clients with limited products and services as provided by their company. Insurance brokers have the opportunity to access different policies since they have a connection to many insurance firms, they can work with more than one firm, and it is incumbent on them to ensure that they offer the required services to their clients.

  1. There are many insurance firms, specify the one you are working for?

You should not rely on one company. You have to sample other instance companies and go through their insurance policies. Insurance broking depends on commission; hence, you should go for the best deal.

  1. How long will I have to wait for income protection insurance? Please specify the waiting period?

It would help if you inquired about the period you will wait before the implementation of the insurance. Waiting period occurs if you have an injury at work or elsewhere and you are not able to work. During this period, you will have to spend from your savings, and the cost of insurance increases as the waiting periods reduces.

10 Tips on What to Inquire from Insurance Professionals

  1. Have in-depth ideas of the insurance coverage

It is essential to carry out a hypothesis of the insurance coverage. The insurance coverage is vast and contains some unforeseen situations. You have to know about them the ones that are not covered and the ones that are covered by the insurance policies. One of such instances is the storm damage insurance or the flood damage insurance. Some of these unfortunate situations may not be covered. You have to be aware of the situation and why you may not get a guarantee. By taking this action, you will not be knowledgeable and have foreknowledge of your benefits.

  1. Carefully peruse the contents of the insurance policy;

A large chunk of people amounting to 95% does not scan the content of the insurance policy. It is quite apparent that you will not enjoy reading it, but it is a sure way to understand the routes to bankruptcy or wealth in the future. Read in the insurance policy will offer you the ability to decipher when things go wrong, things that are covered, and the ones that are not covered by the system.

  1. Will I be paid from my super funds? What are the processes involved?

It is imperative for your insurance broker to keep you abreast with the current Superfund law. These laws are, and you have to update yourself with payment information from your super fund. It is an arduous but possible task not minding the fact that you are less than 65 years of age.

10 Tips on What to Inquire from Insurance Professionals

  1. Meet a financial adviser for advice Another essential step is for you to consult your financial adviser for information on financially related issues. They will help you on the best strategy for planning for every type of insurance. They will advise you on the risks, the things that could ruin you, and how to prevent it. You have to find out about these pertinent things before meeting the insurance broker.
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Top 10 Questions to Ask a Real Estate Agent

 

10 Questions to Ask a Real Estate Agent -Investors Advisors

Whether you are buying or selling, finding the right real estate agent is critical. Here are our top 10 tips for questions to ask potential real estate agents to make sure you make the right decision.

  1. How experienced are you?
    It is important to ask the agent how many years they have been in the industry to get an idea of how experienced they are. Of course, experience does not necessarily translate into skills and expertise, and less experienced agents can also have a lot to offer. However, experience is definitely be an asset.
  2. What licenses to you have?
    As a first step, check that the agent has the necessary licenses and certifications.
  3. What is your sales track record?
    This will depend on the current real estate market, so it is important to compare sales records with other agents you are considering. The agent’s sales record is one of the strongest indicators of their skills as a salesperson. You should also ask what percentage of sales are through auction, compared to prior to auction and general sales.10 Questions to Ask a Real Estate Agent -Investors Advisors
  4. What’s your office’s auction clearance rate?
    It is important to know how effective the agency in general is at selling at auction, and this question will give you can idea of this.
  1. What is the industry average days on the market in the area?
    This is important information to have also, as this will help you to interpret the agent’s own average days on the market, as well as get a picture of how the market is performing at present. The best way to get a picture which is as accurate as possible is to ask this question to multiple agents and compare responses.
  2. How many days are your properties on the market?
    Another strong indicator of an agent’s skill is the number of days their properties stay on the market. Of course every property is different so this will not necessarily be the same case for yours, but it is worth knowing the average number of days their properties stay on the market.10 Questions to Ask a Real Estate Agent -Investors Advisors
  3. What is the industry auction clearance rate? Equally, it is important to know what the average auction clearance rate currently is across the industry, as this can vary significantly depending on market conditions. Having this information will not only give you an idea of an agent’s success compared to the average, but also whether it is a good time to take your property to auction.
  4. Are You Able to Provide References?
    It is very common to ask for references from previous clients in order to talk to them and ask them about their experience. Ask for the agents most recent three vendors, to make sure you get up to date reference information. If you are looking to sell your property at auction, it may be a good idea to specifically ask for references from auction vendors.
  1. Can You Tell Me About the Auctioneer?
    Most agents will hire an auctioneer to carry out the auction. It is a good idea to get information on the auctioneer they are planning to use and if possible attend one of their auctions before you make a final decision to see the quality of their performance.
  1. What Do You Offer That Other Agents Don’t?
    Ask them what they can give you which other agents cannot. A good agent should be able to tell you why you should hire them over another agent.
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Brisbane house prices stall but market still one of Australia’s strongest

Brisbane remains one of Australia’s strongest property markets, despite house prices having ground to a halt in recent months.

As prices in Australia’s two biggest cities fall deeper into a downturn, Brisbane’s housing market has officially flatlined, with figures from the latest Domain House Price Report, released on Monday, showing an annual fall of 0.1 percent in the Brisbane local government area.

This equates to a $750 reduction in the overall median house price from $670,750 in March 2018 to $670,000 in March 2019.

The median house price fell by slightly more in the first three months of the year though, after finishing 2018 on a median of $675,000 compared with $670,000 in March 2019.

Median house prices

MAR-19DEC-18MAR-18QOQYOY
Sydney$1,027,962$1,060,319$1,161,083-3.1%-11.5%
Melbourne$809,468$829,794$903,266-2.4%-10.4%
Brisbane$563,666$569,893$565,501-1.1%-0.3%
Adelaide$542,474$542,740$532,0920.0%2.0%
Canberra$722,440$729,027$737,532-0.9%-2.0%
Perth$529,997$543,482$559,296-2.5%-5.2%
Hobart$478,247$464,029$446,7863.1%7.0%
Darwin$514,546$514,876$507,191-0.1%1.5%
National$748,217$765,159$811,829-2.2%-7.8%
Source: Domain House Price Report, March quarter, 2019.

The figures for Greater Brisbane, which include the five LGAs of Brisbane, Ipswich, Redland, Moreton Bay, and Logan, showed the annual median house price was down slightly by 0.3 percent.

Domain senior research analyst Nicola Powell said Brisbane’s negative number was still considered a good outcome, particularly in the context of what was happening elsewhere in other capital cities across the country.

“Brisbane housing has had six years of continued annual growth, but now we’re seeing those house prices are flatlining,” Dr. Powell said.

“However, I will say that a fall of 0.3 percent is negligible. Homeowners in Brisbane may not be reaping big capital gains right now but it’s important to remember Brisbane is still a much better performer than most other capital cities.”

Median unit prices

Mar-19Dec-18Mar-18QoQYoY
Sydney$696,935$710,911$745,184-2.0%-6.5%
Melbourne$466,892$480,790$509,025-2.9%-8.3%
Brisbane$372,852$387,280$393,350-3.7%-5.2%
Adelaide$312,459$319,252$316,550-2.1%-1.3%
Canberra$426,719$440,815$433,908-3.2%-1.7%
Perth$347,596$351,334$368,152-1.1%-5.6%
Hobart$363,418$354,204$335,1322.6%8.4%
Darwin$313,462$321,990$318,928-2.6%-1.7%
National$526,130$538,319$561,306-2.3%-6.3%
Source: Domain House Price Report, March quarter, 2019.

Brisbane’s property market remains fragmented, with houses outperforming units for the seventh year in a row.

Unit prices in Brisbane’s LGA dropped 3.4 percent over the year to March 2019, as did units in Greater Brisbane, where units fell by 5.4 percent during the same time.

Dr. Powell said Brisbane units had fallen almost 10 percent below their price peaks in 2016.

There was a significant silver lining. “It means buyers are now buying units for the same price they would have paid in 2013, so the affordability is there,” she said.

“Listings-wise, the number of units listed for sale is shrinking, but they’re not shrinking enough to translate into price growth. That will still take time.”

Adcock Prestige, who sells some of Brisbane’s most expensive riverfront properties, said the most noticeable shift between now and 12 months ago was days on market.

“Where I used to sell a property in 30 to 60 days, they’re now taking around 75 to 100 days to get the same property sold,” he said.

“Price-wise, we’re tracking about the same. I’ve sold six multimillion-dollar properties in the past four weeks and all for good prices — none have been sold for less than what I thought they were worth.”

Adcock said he expected the market would pick up again after the federal election.

“Two to three weeks after the election, all the people who have held back from coming to the marketplace will come to the marketplace and reinvigorate it,” he said.

Brisbane House Prices [Strongest Market]-Investors Advisors
Jason Adcock has sold six multimillion-dollar properties in the past four weeks, including 45 Tristania Road, Chapel Hill, for $2.9 million. Photo: Adcock Prestige

REIQ chief executive Antonia Mercorella said she held concerns about the future of Brisbane’s property market, with the federal election leaving its fate hanging in the balance.

“Brisbane [both Brisbane LGA and Greater Brisbane] median house prices growth has been modest but steady over recent years. However, that consistent, steady growth is plateauing in the face of strong headwinds,” she said.

“The REIQ would like to be optimistic that, with rents holding steady and proving reasonably resilient in the south-east corner, this would encourage investors to continue buying investment properties.

“However, with Labor’s negative gearing reforms on the cards, it’s unlikely we’ll see investors overcome their fears and continue to invest. The financial benefits are simply not there.

“This will have dire effects on the market, and it’s likely that the modest plateauing in house prices that we’re seeing at the moment will become a more significant dip if Labor forms government.”

Brisbane House Prices [Strongest Market]-Investors Advisors
Brisbane house prices are holding at the moment but the REIQ fears this could be in peril if Labor’s negative-gearing policy gets through. Photo: SPACE Property Agents Paddington

Brad Robson, of Place Graceville, said prices had flatlined in his area following a flurry of activity in January but that sheer buyer numbers meant properties were generally still selling within 25 days.

“Buyers are still having children or still having kids move out and needing to downsize. Everything is still exactly the same as what it was,” he said.

“What is happening is that buyers are quite comfortable to seek out exactly what they’re wanting, as opposed to compromising and saying ‘let’s just do it because we might miss out otherwise’.

“I feel as though that’s the attitude at the moment — people are quite comfortable to pay what’s fair and reasonable, they’re just not willing to pay a record price.”

Peter Hutton, director, and principal of Hutton & Hutton at New Farm said Brisbane unit owners were more inclined to meet the market and lower their prices than house owners.

Brisbane House Prices [Strongest Market]-Investors Advisors
Homeowners in Brisbane’s more affluent suburbs are often choosing to hold their property rather than sell in a stalled market, says Peter Hutton. Photo: Tammy Law

“Firstly, there’s a greater number of investors in the market, so there’s more competition,” he said. “But the other thing is the people who own houses around here enjoy a high degree of equity, which means they can choose to hold their property and not sell if they can’t get the price they want right now.

“That’s what a lot of house owners are doing. There’s been a lot of stock withdrawn from the market since September last year — they didn’t sell so they’re not off the market. They’re not going to be forced to take a lower price and they’re relaxed about it.

“In New Farm, there’s always times where prices flatten out and we go into a period of being flat — that’s the trend now. We may not see any price growth for a little while. I think personally next year we’ll see rising prices in those desirable suburbs like New Farm.

“It’s not a bad situation to be in – it’s just a pause. I do think any buyer who secures a property today that appears to be a saving compared to 18 months ago, they are the winners in this. It will only be another six months until we’re back in another good year.”

This article was first published in www.domain.com.au. Here is the link to the original article.

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Australia Median house prices in all but two capital cities decline in March quarter

House prices have fallen 7.8 per cent nationally in the past year, dropping in all but two capital cities, a new report has found.

Domain Group’s quarterly Domain House Price Report, released on Monday, shows that prices held up in just Hobart and Adelaide in the first months of 2019, while Hobart remained the only state capital to record a rise in unit prices.

“We are seeing a geographically broader downturn impacting more of our capital cities – even Canberra and those that have held strong to this point,” Domain senior research analyst Nicola Powell said. “Buyer confidence is low, with the ability to get finance impacting buyers across the country. It’s not just an issue for first-home buyers; all borrowers have been impacted.”

The Sydney and Melbourne markets remain in the throes of the steepest downturn in more than two decades, Dr Powell noted.

Sydney house prices were down 3.1 per cent over the March quarter, and 11.5 per cent year-on-year, recording a median price of $1,027,962.

The harbour city’s house prices have fallen 14.3 per cent from their mid-2017 peak, with Dr Powell tipping Sydney’s median could drop below $1 million in coming months, a low not seen since June 2015.

For the first time in three years, the price of a unit in Sydney dipped below $700,000, Dr Powell added.

Source: Domain House Price Report.
MEDIAN HOUSE PRICES
Capital CityMar-19QoQYoY
Sydney$1,027,962-3.1%-11.5%
Melbourne$809,468-2.4%-10.4%
Brisbane$563,666-1.1%-0.3%
Adelaide$542,4740.0%2.0%
Canberra$722,440-0.9%-2.0%
Perth$529,997-2.5%-5.2%
Hobart$478,2473.1%7.0%
Darwin$514,546-0.1%1.5%
National$748,217-2.2%-7.8%

Melbourne house prices fell for the fifth quarter running, down 2.4 per cent in the most recent period and 10.4 per cent year-on-year, with Dr Powell saying the downturn had filtered through from the high-end market and was being felt across the city.

With a median of $809,468, Melbourne house prices were now sitting 11 per cent lower than their highs of 2017. While unit prices held firmer, Dr Powell said they had “dropped for four consecutive quarters, pulling prices back 8.3 per cent from the peak notched a year ago”.

Despite the figures, Dr Powell noted that Domain had seen a rise in views for online listings in Sydney and Melbourne, indicating there was still considerable buyer interest, despite the slowdown.

Australia Median House Prices Decline in March - Investors Advisors The view Hobart town waterfront and residential district in a background (Tasmania).
Hobart again recorded strong price growth over the quarter. Photo: iStock

Hobart bucked the national trend, again recording strong growth, with house prices up 3.1 per cent in the March quarter and 7 per cent over the year, to $478,247. The city was the only capital to record growth over both the quarter and the year for houses and units, continuing its streak as the best performing city for capital growth.

“In the space of a year-and-a-half, Hobart has gone from the most affordable city in which to purchase a unit, to more expensive than Adelaide, Darwin and Perth,” Dr Powell explained. “If the pace of growth continues, Hobart unit prices are likely to overtake Brisbane’s in the coming months.”

Source: Domain House Price Report.
MEDIAN UNIT PRICES
Capital CityMar-19QoQ
Change
YoY
Change
Sydney$696,935-2.0%-6.5%
Melbourne$466,892-2.9%-8.3%
Brisbane$372,852-3.7%-5.2%
Adelaide$312,459-2.1%-1.3%
Canberra$426,719-3.2%-1.7%
Perth$347,596-1.1%-5.6%
Hobart$363,4182.6%8.4%
Darwin$313,462-2.6%-1.7%
National$526,130-2.3%-6.3%

Coming in behind Hobart as the second-best performing capital, and one of just three to record an increase over the year, Adelaide’s house prices grew 2 per cent to $542,474. Unit prices fell from the record high achieved last quarter, down 1.3 per cent to $312,459.

Dr Powell said Adelaide homeowners had enjoyed close to six years of steady price growth, and it was now the third-most affordable city in which to purchase a house, overtaking Perth’s median for the first time since 1993.

Australia Median House Prices Decline in March - Investors Advisors Adelaide, AUSTRALIA - Nov 21, 2018: Victoria Square historical centre of South Australian Capital city with old iconic building and new construction sites high view urban cityscape of Central Business District
Adelaide’s median house price has overtaken Perth’s for the first time since 1993. Photo: iStock

“House prices remain higher than Hobart, but galloping Hobart prices mean the price gap is at a 12-year low,” she said.

After six years of continuous growth, the nation’s capital is feeling the pressure with house prices in Canberra experiencing their steepest annual fall in a decade, down to $722,440. Despite the 2 per cent drop, Dr Powell said conditions in Canberra were anticipated to resemble a “short softening, rather than the correction currently unravelling in Sydney and Melbourne.”

She said the upcoming election was likely weighing on local confidence, but higher stock levels and difficulties securing finance were also to blame for the slower market activity. “I think this is an illustration of a market that would otherwise be growing if it wasn’t for the restrictions to credit,” she said.

Australia Median House Prices Decline in March - Investors Advisors
House prices in Canberra have seen their steepest annual fall in a decade.

It was a similar story in Queensland, where Brisbane house prices stalled for the first time since mid-2012, down 0.3 per cent over the year to a median of $563,666. Unit prices fell 5.2 per cent in the 12 months to $372,852.

Dr Powell said houses had outperformed units in Brisbane for the past six years. “Unit prices are 9.6 per cent below the mid-2016 peak, with buyers now able to reap the benefits of purchasing at 2013 prices,” she said, citing oversupply as a keen contributing factor.

“Although listing volumes are shrinking, it has not been enough to translate into price growth yet,” she added.

Property prices in Perth and Darwin continued to reflect the fact they are cities trying to claw their way back from the slump following the mining investment boom, Dr Powell said. At $529,997, Perth’s median house price had fallen 5.2 per cent in 12 months and is now 14 per cent lower than its 2014 peak.

Dr Powell said that while Darwin’s house price median edged 1.5 per cent higher over the year to $514,546, property prices continued to be affected by weak economic conditions.

“A recovery in Darwin’s housing market largely hinges on the government’s attempts at boosting the population, jobs growth and an improvement in the availability of housing credit,” she said.

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Perth house prices slide despite initial signs of market recovery

Perth house prices slide despite initial signs of market recovery

Perth’s median house price has dropped 5.2 per cent in the past year despite early indicators of encouraging signs of a market recovery, new figures show.

House prices fell 2.5 per cent during the March quarter to $529,997 compared to a median of $559,296 in March 2018, according to the latest Domain House Price Report, released on Monday.

Unit prices fell 1.1 per cent during the quarter and 5.6 per cent year-on-year to $347,596.

Domain senior research analyst Nicola Powell said despite the signs of a recovery during the first quarter of this year, house and unit price falls have gathered pace.

“House prices are now 14 per cent, and unit prices 16.6 per cent, below the 2014 peak,” she said. “The market recovery is going to be delayed in Perth on the back of the more restricted lending environment.

“If we had (the same) lending (conditions) before the tightening of conditions, I think we would be seeing more signs of recovery now, but that isn’t the case.

Source: Domain House Price Report.
MEDIAN HOUSE PRICES
Capital CityMar-19QoQYoY
Sydney$1,027,962-3.1%-11.5%
Melbourne$809,468-2.4%-10.4%
Brisbane$563,666-1.1%-0.3%
Adelaide$542,4740.0%2.0%
Canberra$722,440-0.9%-2.0%
Perth$529,997-2.5%-5.2%
Hobart$478,2473.1%7.0%
Darwin$514,546-0.1%1.5%
National$748,217-2.2%-7.8%

“You are seeing borrowers being assessed at around seven per cent interest – basically their assessment for a loan is much higher than current mortgage rates. I think, for some buyers, it means that they can’t get finance, or those that can get finance, their loan size is being reduced.”

Property analyst and valuer Gavin Hegney said the March quarter data was equivalent to a rate of an annual decline of 10 per cent.

He said there was an oversupply of just less than 10,000 properties for sale in Perth, which was concentrated in the lower end and outer suburbs, with properties selling well below replacement costs.

Perth house prices slide despite initial signs of market recovery
Prices for Perth houses and units slid again over the March quarter. Photo: iStock

“The numbers also show the banking royal commission and its impact on reduced lending capacity had a greater impact on the West Australian market than any other state in Australia,” he said.

“Particularly, given the fact we really haven’t seen growth in equity in homes, in probably between five years, and in some suburbs, the past 10 years.”

Peard Real Estate chief executive Peter Peard said sales levels were low and down about 40 per cent from a few years ago.

Source: Domain House Price Report.
MEDIAN UNIT PRICES
Capital CityMar-19QoQ
Change
YoY
Change
Sydney$696,935-2.0%-6.5%
Melbourne$466,892-2.9%-8.3%
Brisbane$372,852-3.7%-5.2%
Adelaide$312,459-2.1%-1.3%
Canberra$426,719-3.2%-1.7%
Perth$347,596-1.1%-5.6%
Hobart$363,4182.6%8.4%
Darwin$313,462-2.6%-1.7%
National$526,130-2.3%-6.3%

Subdued buyer confidence, a lack of pay increases and declining property equity were among the combination of factors contributing to the state of the market, he believed.

“For summer, there has been pretty ordinary sales activity compared to historical years where it has been more buoyant at that time,” he said.

“Although in the top end there is a bit of movement even though values in that market are right down. (But) it is always good to buy and sell in the same market, whether it is good or bad.”

Dr Powell said buyers continued to have the upper hand.

“Improved affordability is providing the ultimate silver lining for prospective homeowners, allowing a purchase to be made at 2011 prices,” she said.

“Perth’s recovery is being hindered by a more restrictive lending environment at a time when local confidence is subdued under weak economic conditions. A sluggish economy is being dragged down by high unemployment, a tight consumer purse, and weak population growth.

“That said, Perth has seen extraordinary growth in the number of views per listing, figures have risen from the recent post-mining boom lows. The rise in views per listing provides a timely gauge of the change in buyer interest, which has been tracking higher since September last year.”

Mr Hegney said there was buyer interest in the more affluent suburbs of Perth, where purchasers were more confident in their jobs and of obtaining finance.

“What the banking royal commission tended to do is take out the upgrader market,” he said. “So when the top end starts to recover you normally would see the upgrader market start to recover and then it would flow through to the lower end of the market, but the timing of the reduced borrowing capacity meant the upgrader market never really started.”

This news article was first published in www.domain.com.au. Here is the link to the original article.

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Warriewood, the budding suburb on the northern beaches that escapes the attention of tourists

The northern beaches attract sun-lovers of all persuasions, from born-and-bred surfers to thrill-seeking backpackers and bikini-clad glam-squads.

It’s impossible to escape the tourists at some of the area’s most famous destinations, including Manly and Palm Beach. But in between the tourist traps are the quiet achievers; suburbs loved by locals that fly under the radar compared to their star-studded neighbours.

Warriewood is one such neighbourhood. About 25 kilometres north of the Sydney CBD between North Narrabeen and Mona Vale, Warriewood has been quietly going about its business, building a reputation as a family-friendly place with parks, wetlands, a beautiful beach and newly renovated Warriewood Square shopping centre.

Warriewood Budding Suburb that Escapes Tourists Attention
The suburb is about 25 kilometres north of the CBD between North Narrabeen and Mona Vale. Photo: Steven Woodburn

Another drawcard? More affordable real estate than its fancier beach buddies.

The Dictionary of Sydney records that the northern beaches was once dotted with lagoons and swamps, including Narrabeen Creek flowing through the middle of Warriewood and Mullet Creek at the suburb’s southern boundary.

Logging made way for farming, then market gardening. In the mid-1900s, there were so many glasshouses that the suburb was known as Glass City. Nurseries slowly replaced fruit and vegetable growing until the 1990s, when the land was subdivided for housing.

Warriewood Budding Suburb that Escapes Tourists Attention
Housing in Warriewood didn’t truly take off until the 1990s. Photo: Steven Woodburn

“When I went to school, all along Warriewood Road was farmland,” says Marco Cimino, an agent at LJ Hooker Mona Vale. “It’s only in the past 18 years that it’s really started to change.”

Properties range from chic new builds along the coastline to established homes, new apartments and contemporary townhouses or homes in master-planned estates.

A typical two-bedroom apartment with two bathrooms and two car spaces costs about $750,000,” he says. “Townhouses range fromabout $1 million to $1.1 million. Houses can go from $1.35 million to $1.6 million, depending on size and location, to over $6 million on Bruce Street.”

Warriewood Budding Suburb that Escapes Tourists Attention
House hunters from the north shore are often drawn to Warriewood for its leafy pockets. Photo: Steven Woodburn

Cimino says investors and young families are the main buyer groups. He has also noticed house hunters from the north shore and West Pennant Hills joining local upgraders. “Some like the leafy aspect; it reminds them of the area they’ve come from.”

Anthony Marchese moved to Warriewood in 2007 after North Manly became too hectic for his young family.

“That was before a lot of the construction,” he says. “It’s such a family-friendly area now, with lots of dog parks, beaches, bike tracks, running tracks and easy access to shopping and schools, which ticks all the boxes for young families.”

Warriewood Budding Suburb that Escapes Tourists Attention
A variety of pristine outdoor settings makes Warriewood popular among families. Photo: Steven Woodburn

He has already upgraded once within the suburb and wouldn’t mind moving even closer to the beach.

“It’s pretty hard to find another suburb we’d want to move to.”

Two homes in the area

26 Shearwater Drive

26 Shearwater Drive Warriewood NSW
26 Shearwater Drive, Warriewood NSW. Photo: Supplied

This two-storey home on 312 square metres has bright, modern interiors, easy-care gardens, multiple decks and a nature reserve across the road. Each bedroom has built-in wardrobes, the main with a walk-in.

Expressions of interest close May 3, with LJ Hooker Mona Vale seeking offers of about $1.5 million.

109/5 Mallard Lane

Warriewood Budding Suburb that Escapes Tourists Attention
109/5 Mallard Lane, Warriewood NSW. Photo: Supplied

This north-facing apartment in the Oceanvale complex will appeal to downsizers and young families.

Communal amenities include lap, plunge and children’s pool, a gym, sauna, barbecue area and playground.

 

This article was first published in www.domain.com.au. Here is the link to the original article.

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Ripple effect: How new developments influence the Canberra property market

What’s going to happen to the market when all these new developments have finished being built?

There’s no doubt that the residential building and construction industries have been pillars of strength for Canberra, by injecting millions of dollars to the local economy and providing a strong employment base.

We are a city that continues to progressively build upwards, with apartments driving Canberra’s new dwelling construction since 2010. Over the numerous years of development, a new residential landscape has been carved out across the territory.

A range of factors have influenced the increase in apartment construction – from constrained land supply, affordability considerations, rapid population growth, urban infill, the desire to be connected to employment hubs and amenities, as well as a growing cohort of residents who have embraced apartment living.

How New Developments Influence the Canberra Property Market
Building approvals in Canberra. Photo: Frank Maiorana

Development continues to provide the heftiest boost, accounting for just over 60 per cent of building approvals in the year to February, while house and townhouse approvals have each contributed a more modest one-fifth.

The year of 2018 produced a record high, with almost 4500 units approved. Apartments have hit the market in numbers unseen before, the majority being high-rise (towers with four floors or more). The previous multi-unit approval peak was mid-way through 2011 with just over 3500 approved. Townhouse development has fallen from the mid-2017 peak of almost 1600 approvals, sliding to 1325 approved in the year to February.

This hive of residential construction activity contributed $1.084 billion to the local economy during 2018, the third-highest value on record.

Our city has experienced a hive of construction activity that could be exacerbated when all development approvals come to fruition. Heightened development can have an impact – from prices to rents – outcomes that can be seen as both a positive and a negative, depending on which side of the fence you fall.

Growth in apartment prices has been non-existent for a number of years, growing at a mere 4.5 per cent over five years. The median unit price is 1.7 per cent lower over the past year, now at $426,719  – the same as recorded in 2016.

A large influx of supply can exacerbate declines in values, which have a domino effect on both households and developers financially. Declining apartment prices pose a significant risk to buyers who are yet to settle, particularly if the value is lower than the contracted price.

You could be a current apartment owner who is facing little-to-no capital growth, or a wishful home owner who is now faced with improved affordability.

Over the financial year to date, the highest volume of building approvals has been in areas that have strong links to transport, infrastructure and amenities – the suburbs of Belconnen, Gungahlin, Kingston and the CBD, with pockets of increased development stock being influenced by the type of buyer purchasing a new development and planning, which affects developers’ decisions and the supply response.

The top four suburbs for multi-unit development approvals are dominated by tenants rather than owner-occupiers. There is no doubt Canberra’s rental market is tight, as it is presently the second-most competitive Australian city, with vacancy rates at the low of 0.3 per cent and tenants faced with rising rents. The slice of the supply concentrated in rental dominated-areas will be welcomed by tenants, providing additional stock to ease rental price growth, and improve the vacancy rates.

Canberra is changing before our eyes with apartments likely to continue to provide new housing, as land supply and population growth motivate prospective home owners to purchase an apartment or perhaps townhouse.

This article was first published in www.domain.com. Here  is the link to the original article.