December property market update

Location, location, location

The location of the property you’re thinking of buying will certainly have some impact as to whether it makes a great investment opportunity. Having a property close to amenities such as shopping centres, medical and educational facilities is a must for many tenants, as is a property close to public transport or within an easy walk of a public transport route.

The Australian property market has been running hot over the past few years, and even at the beginning of 2017, value growth was still bullish in many markets.

Recently some markets have started to lose steam and as we move into the New Year, steadier growth levels appear to be the thematic through real estate markets across the country.

sydney - property market updateCoreLogic has reported that national dwelling values held relatively steady in November. A 0.1 per cent fall in capital city dwelling values offset a 0.2 per cent rise in values across the combined regional markets of Australia.

It is important that investors do not think that because we may be entering a period of slower growth, the market is crashing. Indeed, Homesales continues to see strong buyer and seller levels across its platform.

Over November, most capital cities recorded modest value increases and the flat national result has been largely influenced by cooling conditions in the Sydney market (that fell 0.7 percent for the month). The market comprises approximately one-third of the value of all national housing stock.

Auction clearance rates have been trending downwards, particularly in comparison to this time a year ago. Over the last week of November, CoreLogic reported a combined capital city clearance rate of 63.5 percent. Over the same week last year, auction volumes were similar, although the clearance rate was higher at 72.3 percent.

People are perhaps starting to see that the market is a little more subdued, and they aren’t as willing to put their hand up to buy. This could benefit investors with potentially less competition at auctions.

property market update - australian propertyFor vendors, it will be important their expectations are realistic in light of current auction conditions. If they continue to base expectations on the heated auctions the market has seen in recent years, then there may be further reductions in clearance rates.

As we move into the New Year and with these trends and conditions in mind, here are Homesales’ three key considerations for property investors:

1. Get out of your comfort zone

Some investors limit their property search to their local area or places they are familiar with, and in doing so, they may be missing out on good opportunities elsewhere. Investors are encouraged to look outside the box and consider property in areas that may not be as close to home.

Look for key drivers of property value growth such as employment, infrastructure, and population growth, and be sure to prioritise crunching the numbers for an investment over emotional attachment to an area.

Reinvesting is a good example of this, and a trend that will likely remain popular in the coming year. Reinvesting refers to the choice many Australians are making to purchase an investment property where they can afford, while renting in an area where they want to live or one that is close to work. The popularity of reinvesting shows getting into the market may be achieved without sacrificing lifestyle benefits.  Savvy property investors would be wise to take note of this trend.

2. Consider diversifying your portfolio

A large proportion of Australian investors own just one property – around 70 percent according to Reserve Bank of Australia analysis.

It may be worthwhile for investors to weigh up whether diversifying their portfolio is a viable option in their circumstances as the property will likely remain a stable wealth creation strategy.

If approached with research, careful assessment of finances and expert advice, then adding a second investment could prove beneficial for an investor’s long-term capital growth potential.

3. Learn about the new depreciation rules so you don’t get caught out

In November, Property investors can no longer claim deductions for plant and equipment assets, such as air conditioning units, solar panels or carpet, in second-hand residential properties where contracts were exchanged after 7:30pm on the 9th of May 2017.

Investors who purchased a second-hand residential property before this date can claim deductions as normal, as the previously existing legislation was grandfathered.

property market updateStructural deductions, for features such as walls and ceilings, can also be claimed as per normal.

Investors may be wise to investigate a property’s depreciation potential before purchase or sale

When investing in property, there are plenty of options available. But what makes a property a good investment?

Whether you’re looking in the city or a regional coastal town, the core factors that make for a good investment property stay the same.

We’ve put together a list of our top five tips when working out whether the property you’re looking at will be a good investment.

Is the cash flowing?

One of the most important things to know when deciding if a property will be a good investment is how much you are going to need to dip into your pocket to cover expenses. Whether you have a positively or negatively geared property is really your choice, but you will need to work out how much cash flow the property produces and how much of your own money you will need to put towards expenses like rates, water, insurance, strata fees and mortgage repayments.

investment propertyIt is always best to know what you want to achieve from your investment, to determine if it’s a good pick. You might want it to generate some extra “income”, to cover its expenses or to simply be used for capital gains.

What’s happening?

A little research into what’s happening in the area you’re looking at will never go astray. Is the market slowing down, is it steaming ahead, or have you already missed the boat? Understanding what the average vacancy rate is and whether there is an oversupply or an undersupply of properties may all influence your purchasing decision. Economic factors such as employment increases and decreases, and what sector those jobs are in is important. You certainly don’t want to be buying a property in a mining area when the mine is due to close in two years.

Another aspect to consider is what types of properties are in high demand. Do people want two and three bedroom units or are they looking for family sized houses of four or more bedrooms?  These factors should all be considered when thinking about whether a property will be a good investment.

Market value or bargain hunting

When it comes to buying an investment property you want to be getting the best for your money, but should you solely be hunting for a bargain, or should you aim to pay market value or just under? Often the answer will lay in what your budget is and how much you will need to spend to get the property up to a rentable standard.

what makes a good investment propertyFor many investors, buying at a discount is the aim. This generally means you won’t need to go and spend a lot of extra money to bring it to a rentable standard and you may end up with some extra funds if you hit a rough patch of maintenance and vacancy.

Some investors consider buying at a bargain price the way to go, but what this is will depend on your version of a bargain. For some, its buying a great property in a good area at a good price.

On the other hand, it could also mean you end up buying a property that needs a lot of work – if it seems cheap for the area, it’s well worth looking a bit further into it to see what’s really going on.

Does it need improvement?

This almost goes hand in hand with the point above. If you need to spend a large amount of money on improving the property and making it attractive to tenants, will it be worth it in terms of a higher rent amount or better capital gains? Small improvements such as paintwork, gardening, upgrading cabinet facings and replacing old carpet don’t need to cost a lot, but can help push the overall rent and value of the property up.

However, think about the improvements you’d like to carry out and work out the best time to do them, in line with your investment strategy. It’s best to have a chat to your accountant to ensure you are getting the maximum tax benefits out of upgrading your property.

Location, location, location

The location of the property you’re thinking of buying will certainly have some impact as to whether it makes a great investment opportunity. Having a property close to amenities such as shopping centres, medical and educational facilities is a must for many tenants, as is a property close to public transport or within an easy walk of a public transport route.

property investorWhen you’re deciding between properties within the same suburb or even similar properties in different suburbs it is wise to take in the potential lifestyle and requirements of residents in the area, much the same as you would when searching for a property for yourself.

As with purchasing any property, the best advice is to work out what you want to achieve from your investment and to research potential options around those goals. Many properties can be great investments, but they do require a little work and a lot of patience.

How to style your table for an Australian Christmas

style table australian christmasWhen you live in the land down under, it’s sometimes hard to decorate for a holiday most commonly influenced by the Northern Hemisphere.

It’s understandable if you don’t want snow inspired décor in your home or songs about roasting chestnuts when it’s nudging 40 degrees outside. But this doesn’t mean you have to resort to those kitsch surfing Santa ornaments or top your Christmas tree with a koala.

A stylish Australian Christmas is possible and it’s all about embracing the warm weather and making the most of what’s in season.

Here are a few ideas for creating a table setting for your Australian Christmas.

1. Pick a theme and stick with it

First things first, you need to pick your theme or the general style you’re going for. This could be colour specific, like the traditional red and gold, or something more uniquely Australian such as a coastal setting. While you don’t want to be super strict about your table setting, a mish-mash of different styles will be distracting and not very effective.

2. Make use of our native plants

A lot of Christmas décor trends this season are quite earthy and organic. A great way to bring this to life with an Australian touch is to make use of our beautiful Australian natives including kangaroo paw, banksia, Waratah, wattle and eucalyptus.

Why not mix a few Waratahs with some of our native greenery for an Australian twist on the classic Christmas red and green?

table setting australian christmas
Source: DIY Decorator

Alternatively, sometimes the best option is to keep it simple – you could make a statement by keeping your table uncluttered and running a garland of eucalyptus down the centre.

christmas table setting
Source: Build House Home

3. Go coastal

While those in colder countries can’t imagine a Christmas spent by the beach, most Aussies wouldn’t have it any other way. Why not bring this Australian tradition to your table setting this Christmas? The possibilities are endless – you could go all out with a tropical theme or have a more subtle seaside influence.

Australian christmas table setting
Source: My Domaine Home

To get this look, opt for organic, natural tableware in a neutral colour, bring in some woven placemats and incorporate some pops of colours such as blue, turquoise or green. You could then accessorise with some palm leaves or shells.

australian christmas tale setting
Source: Completely Coastal

This needn’t be a shabby chic beach look and can definitely be made classy and elegant with some finer touches like gold cutlery or some coloured crystal glasses.

4. Summer Scents

While most Christmas candles give scents of cinnamon, plums, cloves, spices and other strong notes suitable for a cold Christmas, they can be a bit too heavy and overpowering in our hot climate at this time of year. Try embracing lighter notes more traditionally associated with an Australian summer, such as a coconut and lime candle to enhance the setting.

5. Embrace layers

Whether you’re going to an Australian Christmas table setting or not, a good table setting should incorporate various layers and textures.

Think linens, placemats and table runners alongside some foliage of some kind, an element of height and some smaller tidbits to add interest (gum nuts are a nice Australian touch).

Australian christmas table setting

This vital growth pillar for the Australian economy looks like it’s getting even stronger via @ljgillandrealestate

How does your property compare over last 5 years

About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. LJ Gilland Real Estate Pty Ltd LREA推荐书LJ Gilland房地产 L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085.
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