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May 15, 2022
The pandemic property market
The property market has not been exempt from global changes that the COVID pandemic has caused. The two years since the pandemic have been tumultuous, but also lucrative for investors and the industry as a whole. Key points from a recent CoreLogic report provides a snapshot of the effects of the pandemic within the marketplace. Whether it was the economic and employment-based effects of city and state lockdowns, the introduction of government home-buying and building incentives and the increasing popularity of regional living and low-density housing, the era of COVID has left its legacy on the composition of buyers and dynamics of the housing market. Home values eclipse previous records, rising by 25 per cent Despite an initial dip for the property market during the pandemic, housing values rose 24.6 per cent between the end of March 2020 and February 2022. Cumulative change evidenced in the CoreLogic Home Value Index since the onset of COVID-19 shows a relatively small decline at the onset of COVID-19. For example, sales and listings volumes are far more affected than prices. Home values declined -2.1 per cent between April 2020 and September 2020, before soaring amid low-interest rates, high household savings, government grants and a sharp reduction in the supply of housing. By February 2022, CoreLogic estimated the total value of the residential real estate to be $9.8 trillion, up from $7.2 trillion at the onset of the pandemic. This is a significant change for the property market. Rents rose 11.8 per cent to record highs while gross yields fell to record lows Annual rent value growth throughout 2021 was at its highest level since 2008. Median advertised rents in Australia have increased from $30 per week to $470 per week. In New Zealand, that figure is closer to $530 for a four-bedroom home. For investors who have recently purchased long-term rental accommodation, rents may have increased due to higher purchasing prices. Through the pandemic, there has been a clear shift in rental preferences toward lower-density housing options, where the upwards pressure on rents has been more substantial. This trend has evolved over the past year, with rental affordability gradually deflecting more demand towards higher-density rental options, where the cost of renting is more affordable. Housing debt levels scale new heights However, gross rental yields have declined. This is because gross rental yields are a portion of the purchase price of a property — and purchase prices of properties have grown 24.6 per cent since March 2020, outpacing the 11.8 per cent rise in rents. As housing growth has started to slow, record-low gross rent yields appear to have begun stabilising. Although total outstanding credit reached over $2 trillion in January, data shows monthly new finance borrowed for the purchase of property continued to hit fresh record highs through January 2022, at $33.7 billion. High levels of housing debt, particularly where it has grown faster than incomes, create vulnerability in the economy. However, it is important to frame debt levels in the context of high asset values and relatively low-interest costs. Official data shows housing interest payments to income have fallen to their lowest levels since 1999 — and household debt has trended lower as a portion of housing values. CoreLogic prides itself on the most accurate real estate data in Australia. Smoke alarm legislation changed on January 1 2022
Apr 6, 2022
It's Tax Time. How Did COVID Affect your Net Worth?
It's Tax Time! If you're like me, tax time can be one of those times of the year which can go either way. A great refund can get you excited for a new financial year and a tax bill can get you down a little bit. Those two feelings kind of sum up the last year in the Real Estate market. It has been a few years of change for the Queensland Property Market. From the initial slowdown caused by COVID in the market and the fear of property, price crashes as we came out of the first lockdowns, through to a surprising resurgence in the market with fast sales and price growth over the last six months. The lack of properties for sale, low-interest rates, and government grants have been the biggest drivers of price growth. The shake-up to people’s lifestyles caused by the lockdowns and restrictions has also been driving the demand from buyers seeking a more suitable home in this brave new world we now live in. The RealWay team has ridden the property wave over the last financial year. We are seeing properties exceeding the prices paid in the 2014/2015 boom and even units are now moving quickly and for good prices. What's In Store for us Next? Will the prices keep going up? Will they plateau and stay steady? Is the bubble going to burst and property prices crash? The looming federal election for May 2022, the inevitable interest rate increases, and the banks tightening up lending will all surely have some negative impact. On the flip side when the borders reopen and immigration & tourism ramp back up, we would expect to see some positive effects on the economy and property pricing. So, what does it all mean for your property? Good news or bad news... What is your True Net Worth? It’s hard to know where your properties sit unless you watch the market every day. Lucky for you that's exactly what we do – every day we are appraising property, selling homes, and just giving people good honest advice. While we don’t have a crystal ball to predict the future, we do have our finger on the pulse and can accurately price your property in the current market. Did you Buy an Investment? If you have bought an investment property this year, then you should make sure that you claim any depreciation that you can. Your tax adviser will be the best place to get specific advice about your personal situation, but BMT Tax Depreciation Quantity Surveyors can prepare a depreciation schedule for your accountant to use. For more on how to increase rental income and deductions you can Read More Here or you could talk to our property experts. Get in Touch for Free Advice! Why not start your new tax year by being informed about what your home is worth? Give us a call, send us an email or a text and if you want to see how your home has weathered the storm of 2020/21, we are more than happy to help. We work weekends and after hours, it’s never a big issue and it only takes 15 - 20 minutes to get a quick update on price. Greg Watson CEO RealWay Australia
Mar 12, 2022
The Upsides of Downsizing
The thought of exchanging the maintenance of a larger home for a hassle-free future full of travel, friends, and newfound freedom is a common aspirant for downsizers on the move. Given the ideal replacement residence, more than half of Australians aged over 55 are open to downsizing opportunities, according to Australian Housing and Urban Research and similar sources. Once the reality of the children growing up and leaving the family home starts to wear off, there are many compelling reasons favouring the move to a smaller abode. The average Australian homeowner buys three to four properties in their lifetime. Traditionally, they trade up from their first home to a more substantial residence, often upgrading and then downsizing upon retirement. Financial incentives Incentives are in place to maintain this market cycle, with downsizing provisions enabling people over the age of 65 to sell their home and put an extra $300,000 in super. But firstly factor in selling and buying costs (including moving) and talk to your financial advisor about how it could affect age-pension entitlements by boosting your assets outside the home. Positive mindset More than anything, downsizing requires a shift in mindset and the need to separate your wants from your needs. Just like saving for your first home, it’s important to maintain a budget. Decluttering is an essential component of the downsizing transition. Review your belongings on a room-by-room basis and decide what to keep, discard, donate or sell. Embrace the space Given the reduced space at your new address, measure your furniture to ensure it fits the space and try to use one statement piece in each room. It’s also vital to make the most of storage where you find it – and there’s no shortage of potential solutions under beds, in cupboards, and in wardrobes. Also, mount your TV on the wall, make the most of Wi-Fi technology, and utilise multi-purpose furnishings where you can. Once you’ve settled into your new, streamlined space, embracing the downsizing adventure will be a joy as you embark on the next phase of your life. Consult your RealWay local expert to explore downsizing investment options in your region.
Nov 19, 2021
Do You Need That Home?
1 min read This may seem like a strange question coming from a real estate group, but do you need that house or unit you covet so much? We all go through phases in our lives when certain aspects of a home meet our personal requirements. These needs are undeniable (like starting out on your own, moving in with a partner/spouse, raising children). Do you ever stop to think about what your choice of property needs from you in terms of time and finances? There is the cleaning to do, mortgage payments to make, maintenance and gardening. There may be great friends to be made or years of isolation as we work to maintain our coveted lifestyle. What about your life partner? Do we ever think of the pressures we can place on the one we love to maintain the property or keep up with the mortgage? Our desires, emotions and needs make complicated bedfellows as influences in the decision making about the type of home that we choose to live in. A good agent does more than market a property and negotiates a sales price. We consider your stage of life and advise you of some of the realities of owning a particular property. We professionally navigate the emotions of the property transaction between all the parties involved. A good agent will use their knowledge, skills and experience to make your property journey so much less stressful. So, finding a person who you can work with is key. Your agent’s core values are important because you want to work with someone that plays by the same rules you do. For example, if you are an honest person who tells the truth, would you not want someone to be open and honest with you? Greg Watson CEO RealWay Australia
Feb 26, 2021
Selling Your House In Australia For Top Dollar
Selling your house in Australia for top dollar isn't hard to achieve with a little planning. In this article, you'll learn tips on how to prepare your home, how to choose the right agent, and how to remain in a position of power during a sale. The goal - Obtaining the highest price in the shortest amount of time. Time on market is a real key. If it sells too fast, you probably had it listed too cheap. If it stagnates for months on end, buyers will become wary and think there are underlying problems, and that's why no-one has purchased it. Before painting an unrealistic picture, it is essential to note that every situation when selling a house in Australia is different. Every location is unique, the market is always changing, and although you're about to read great advice, there's no silver bullet. Instead, it's a combination of techniques and choosing the right agent. Tips For Selling A House In Australia Let's discuss the one thing you shouldn't do – Don't listen to an agent who walks in and says, "sell with me today because I have buyers waiting". This is an indication of a lazy agent who cares more about getting their fee than you. A quick sale usually means the agent hasn't tried to maximise the price. Price Strategy Achieving the maximum price when selling your home often takes planning and more importantly, time. Professional and hard-working agents see this as their duty to negotiate the highest price possible for you, which justifies their fees. However, you don't want your house to be on the market for an extended period of time, either. You need to have completed your research about the sale prices of similar houses in your area. From this, you'll have detailed knowledge to contribute to a pricing strategy and will list appropriately, not emotionally. When the right offer comes along, take it. You can easily find the sale price of similar properties in your area on Realestate.com. Here's a handy link to the sold section. https://www.realestate.com.au/sold/ Fix The Obvious The reality is homes deteriorate over time, and even a small thing such as a leaking tap, a door that does not open easily, hints to the buyer that the entire property is in a less than perfect condition. Negative thoughts in the buyer's minds set in, such as potential cost and underlying problems. It's best to avoid these thoughts altogether, and it's amazing how cheap a lick of paint is, a few washers cost and a little TLC can be to freshen up your home. Do not give the buyer any reason to try to bargain you down. Experience tells us most buyers automatically double the potential cost of any repair. The bigger the repair, the more they try to discount the price. It's extremely valuable to complete a building and pest report rather than asking the buyers to pay for it. It's relatively cheap, and you can ensure there are no issues in the roof or other areas that could cause great concern to potential buyers. Roof issues are particularly worrisome for buyers because problem roofs can equate to large repair bills. Problem roofs also question weather-tightness and the structural integrity of a home. Don't allow this to even cross the buyer's mind. This minor investment at an approximate cost of $500 and gives you a chance to fix unforeseen issues. If they come to light only after you have signed a contract from a purchaser, it will put the power back in the buyer's hands to try to reduce the initially agreed sale price. It could be the best investment you make when selling your home. The presentation of your home when selling a house in Australia does matter. Please do take the time to present your home as cleanly, neatly and uncluttered as possible. Many professionals that flip homes often use staging companies. A staging company will replace the existing furniture with new furniture that matches the style of the house and is appealing to buyers. Unfortunately, other people don't appreciate your family photos, your little Nik-Naks. If a staging company usually comes at a cost, but they are often trained interior designers, and therefore, they're worth every cent. If you can't warrant the additional expense, then hire a storage unit and declutter your home. Buyers need to be able to imagine themselves living in the home, so don't let your amazing, unique personality get in the way. Never Disclose Your Situation Many agents forget they are employed to market the home, not your personal circumstances. Question them and ask for a guarantee around the privacy of your personal circumstances. Many agents simply need a friendly reminder to protect your privacy, as they usually have the best intentions and work ethically. If buyers can find out that you need to sell in a hurry, or you're experiencing other stressful times in life, the buyers will try to bargain you down. This is just a reality of negotiating and selling a house in Australia. Renovations Should you renovate the bathroom or kitchen just before you sell? Honestly, the answer is that unless it genuinely needs significant work (has water issues etc.), don't do it. You are leaving, these are expensive renovations, and your tastes may not be aligned with the buyers. Everyone has a different style – that 1990's kitchen might be just what the new buyer is looking for to remind them of when they grew up. Again, just make sure it all functions properly. Otherwise, leave it for the buyer to bring their own personality into their new home. Photography In today's world, people will find your home for sale online, and pictures paint a thousand words. If you're offered a cheap photography package, turn it down, plain and simple. Amateur photography could be the difference between someone enquiring and viewing your property, or not. When buyers are looking at hundreds of homes online, the photos are where the attraction starts. Great photography is a must. Interestingly, many buyers usually begin looking outside of their budget. Their eyes tend to be bigger than their wallets. If your property has outstanding photos yet priced within their budget, you'll capture their interest. They'll perceive that they are not buying below their standards and dreams and be reassured every time they jump online and relook at the property. The prouder they are of what they want to buy the less likely they are to bargain you down and even better they may pay even more than you thought. Features/Settings/Lifestyle Insist your professional photographer captures emotional photos that show the features, the setting, the lifestyle and the location that made you buy the home originally. Take a drone shot of how close to the schools, cafes and amenities the house is located. An aerial visual is better than a map because it may surprise you how many people aren't good at reading maps. If you are buying new furniture after you move and yours is showing its age, do ask the photographer/agent to use the very cost-effective technology of virtual furniture and staging. Importantly it allows buyers to see what glamorous decorating they can do if they buy the home. There's no need to buy a new lounge until you are in your new home. If it is particularly worn, drape a stylish cover over it. Summary Keep the buyers in an emotional state, not a logical one that might be thinking about fixing the roof etc. If a buyer is thinking logically, then usually a low price is offered with less urgency, and they'll scrutinise building inspections and every detail. This can be a nervous time for you as you wait for the reports to come back about your home. Everything in the property market is driven by supply and demand when selling a house in Australia. Of course, if you have a high demand location, then it will increase the demand. But the fewer property issues and the stronger the presentation accelerates demand. You will attract more buyers who want your home and, of course, they'll be willing to pay a higher price. Research and create a pricing strategy. The more understanding you have about the market, the more likely you'll avoid an emotional rollercoaster and accept the right offer while it's on the table. If your property has been on the market for three weeks, you've followed the above guide yet haven't had any written offers, then you may need to review your listed asking price with your agent. It may need to be reduced so the agent can go back to interested buyers and renegotiate for you. The reality is every home will sell at a price the market will pay, but it is up to you to decide quickly and how much you will reduce the price based on the market feedback you receive. Timing is always actually in your hands, not the agents. But if you rush to market because of pressure from an agent, you may rush to sell and regret it later. Selling a house in Australia in today’s market can be more than lucrative. Follow these steps and you’ll bye well on your way to achieving top dollar.
Feb 17, 2021
5 Tips for Great Real Estate Social Media Advertising
It’s a given these days that your business needs to be on social media. Consumers spend 1 1/2 hours a day glued to their phones, scrolling through different social platforms. If your business doesn’t have a presence it may as well be invisible. So how do you ensure your presence on social media is as effective as it can be? 1. Set goals Now, you’re not going to hit a million followers overnight. Let's face it, as a real estate on social media, you probably never will. But setting yourself achievable goals will ensure you move in the right direction. For example, if you’re managing your social media in-house, it’s important that you post regular, relevant content and it doesn’t get forgotten amongst the million other things you need to do. Set yourself a goal to post once per day and stick to it. Be sure to look at where you are now and ask where you want to be in 3 months’ time? Whether that’s to grow your social accounts to gain more followers or drive more traffic to your website. Maybe you want to achieve higher levels of engagement on your posts. Whatever the aim, take the necessary steps and stick to them. 2. The Vendors should be Involved Social media is a great way to interact with potential new businesses. It’s also a great way to engage with current clients so make sure you tell them that you’re on social media. This will raise your following and engagement levels. More importantly, it will mean that the people following you are the most relevant people possible. Thus, when you advertise a new offer, service, or property, the right people are already there in front of you! Ask your happy clients to leave positive reviews on Facebook and Google. This will help your Google ranking and show you to be the go-to agent in the area when new potential clients research your company. Not to mention 71% of consumers who have had a good experience on social media with a brand are likely to recommend it to others. 3. Post relevant content Posting is the most important aspect of a successful social media campaign. Don’t be fooled by companies out there who offer social media management for a ridiculously low monthly fee. Their content is most likely regurgitated, automated and irrelevant. Ensure you don’t post the same things every day. For example, property after property posted in the same way will just lose you,r followers. A strong social media campaign requires a healthy mix of post types that you need to review on a regular basis. Here are some types of content that tend to work well for agents to give you some ideas. Local property news Local area information Hot properties. Top tip: try boosting these types of posts on Facebook to drive more buyers/tenants to your stock. After all, they say Facebook will be the next property portal! Fun posts to drive engagement. For example, running a competition, asking your audience questions, getting them to “vote” on something, the possibilities are endless! Human interest posts. Now, this can be anything from staff shoutouts, and successful settlements, to charity work undertaken by your team. Top tip: social media is also a great way to raise money for charity events 4. Connect with local businesses As a real estate agent, you’re constantly being squeezed for your fees by competition and online agents. Consequently, you should make sure consumers know why you are worth your fees and give them the value. Social media is not only a great way to improve customer service, it’s essential for showing how connected you are in your local community. One way you can show this is by interacting with local businesses online. You can even take this a step further and start doing joint promotions – this will cut the cost of your marketing campaign in half and show potential customers that you know everyone and everything going on in the area. Hence, you’ll leave them no choice but to instruct you to sell or let their property. 5. Review your campaign It’s all well and good following the above steps but if you don’t review your campaign results, how can you hope to improve? It’s literally Einstein’s definition of insanity, “Doing the same thing over and over again and expecting different results”. Social media is all about trying new things, but if something doesn’t work or doesn’t get the results you were hoping for, don’t despair. Review why it went wrong and try something new! I hope this blog was helpful for those of you looking to do more with social media. If you’re going to take anything away from this, let it be this. Social media management shouldn't be an afterthought. It’ll take time, dedication and thought to make it a success but when you get it right, you’ll wonder how you ever operated without it. RealWay provides more of this kind of support for your business. To find out more contact Greg Watson CEO on M: 0407 122 398 or E: greg.watson@realway.com.au
Apr 29, 2020
What's Happening to the Real Estate Market?
Are you confused about what is happening in the property market, perhaps even scared? It’s a pretty normal reaction to have. After all, our world has been turned upside-down with restrictions imposed to flatten the curve and protect the vulnerable from Covid-19. In the past six weeks, we’ve seen the ASX plummet (and recover somewhat), witnessed empty shelves at the supermarkets from panic buying, and have read little other than bad news stories. We’re missing lots of things like having a coffee at our local cafes, dinners with friends and family, and even trips away to the coast. There’s no wonder that we are wary of what impact it will have on real estate. The number of properties selling across Australia is considerably less right now – it’s about 30% less than this time last year. However, sellers are still getting strong prices due to the lack of property available for sale. This is not a time when buyers can name their price and make lowball offers. In fact, with fewer houses to choose from some buyers might find they miss out if they don’t take a level and reasonable approach. When will it be ok to sell my house? If you are a vendor who needs to sell, you don’t need to be afraid. You should give your property the very best chance by showing it in its best light. You are still very likely to get a good price now and with the latest technology that RealWay offers, it is possible to manage inspections and negotiations and hold auctions virtually so the risk of Covid-19 infection during the sale is significantly minimised. Most recently, we have added new technology such as 360˚ virtual walk-through tours as well as a private inspection booking tool. What should I be doing now? Like many others you might have used the extra time on your hands to make a few home improvements. That might have been cleaning, decluttering, gardening, or painting. This is an excellent time to show your newly refreshed home to the online world, whilst buyers have more time to look. As isolation restrictions lift - even if it is gradual - market activity will increase. If you have been thinking of selling, now is the right time to prepare for sale. RealWay can help. Your local experts at RealWay can provide you with a Property Price Report. We offer virtual consultations to help you make the most of your house without us needing to step inside. Our Property Price Report will provide you with a house evaluation and price range, a suburb guide and current market trends. We will advise you on what you should do now and in the coming weeks to improve your home so that it is ready for sale. Individually we may not be able to control all that is happening around us, but we can control our decisions around property. Knowledge is power. Contact your local RealWay agent today. [siteloft_form id=11 add-background="true"]