Property Buyers Need To Be Stimulated

Posted on May 1, 2012 by ifyl_admin

It’s a generally accepted fact that the Australia property market is ‘flat’ and that property buyers need to be stimulated in order to be motivated to buy real estate.

This article from Residex suggests the Reserve Bank of Australia (RBA) is about to provide (at least) some stimulus.

Property Buyers Need To Be Stimulated

Our national housing market is improving (see ‘Monthly Trend – Australia’) however without some form of stimulus we are likely to continue seeing housing values decrease across much of Australia.

Fortunately, it is likely that the stimulus will come in the form of an interest rate cut and I would not be surprised to see the RBA cut rates by 0.5% at its May Board Meeting. In any event, a 0.25% reduction looks all but certain.

There has been comment that the unemployment rate (5.2%) could affect the likelihood of a rate reduction given that it has not been increasing. However, there are some worrying trends in the employment data and I believe the RBA will not be blind to these issues.

What appears to be happening is that the unemployment rate may only be remaining steady as a consequence of people taking up part-time employment and this won’t be delivering quality levels of income. There was an increase of 15,800 people in full-time employment in March and around 28,200 people began part-time employment. In total, the ABS suggests that there are around 626,600 people unemployed. The ‘State Employment’ table presented below points to this issue.

In addition to the inherent weakness in the total full-time numbers, we should also recognise that the figures are developed from a sampling process. What constitutes a person as being unemployed is also important and it should be noted that anyone who has worked as little as a few hours in the last week is considered to be employed.

The remaining indicator, which for our money sealed the fate of the RBA’s rate adjustment, was the CPI rate. In the latest release (24 April, 2012), CPI came in at 0.1% for the March quarter, unchanged from the December 2011 quarter. It rose 1.6% through the year-ending March 2012, compared with a rise of 3.1% to the year-ending December 2011.

Clearly, CPI is now at the lower end of the RBA’s target range and, given its objective of achieving a 2-3%CPI outcome, a rate cut is looking certain.

[Read on...] to discover the impact a rate cut is likely to have on housing values.

Do property buyers need to be stimulated AND assuming the RBA cuts interest rates, what impact do you think it will have on the property market? Let us know your thoughts by leaving a comment.

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Buyers Agents In Sydney Show How To Create Wealth In Australia’s Rich Property Market

Posted on April 2, 2012 by ifyl_admin

Read how Buyers Agents in Sydney have discovered breakthrough property investment strategies that offer property buyers the opportunity to invest in Australia’s property market and enjoy the long-term financially rewarding benefits it has to offer.

Investing in real estate is a well proven method for making money and increasing your net worth in all economic climates – with a few caveats. Your profit will depend on your knowledge, your hard work and your ability to plan. As our Buyers Agents in Sydney point out, real estate investment isn’t a magic formula.

No matter how easy some so-called property gurus make it look, it’s not a get-rich quick scheme. It could take months before you buy your first property, years before you sell one, and longer before you’re realising a consistent, comfortable income. As one major real estate investor once said, “An overnight sensation in the real estate market is one that takes five years.”

Finally Buyers Agents in Sydney offer a steadfast secure way to access the best property deals available today in the Australia market place.

Investing in real estate is a career choice with potential profit that is only limited by the boundaries you impose on yourself – and that’s how you have to treat it. That means that it’s up to you how much you make.

You control your profits by learning all you can about investing in property, studying loan structures, understanding the psychology of buying and selling and knowing the rules and responsibilities of renting for investment.

The bottom line is property investment has proven to be profitable over decades – even centuries.

Here’s our Buyers Agents in Sydney 8 Critical Tips & Reasons to invest in real estate:
1. If you invest in property, use a Licensed Real Estate Buyers Agent because they act in the buyer’s interest and can save you thousands resulting from their ability to estimate the correct selling price of properties and negotiate the best deals.
2. Even in the toughest of markets and economic times, rental prices seldom drop by more than a few percent.
3. Always deal with someone committed to your success and who has a unique approach to property acquisition ensuring your goals are achieved through high capital growth real estate.
4. Get to know your Real Estate Buyers Agent – even better still, get to know Buyers Agents in Sydney. Your Buyers Agent can often steer you toward owners who have to make a quick sale and are willing to take a lower price for ready cash.
5. Learn to recognise a good investment property – one that needs only minor cosmetic improvements, and is in a great location – you’ll find a healthy profit.
6. Know your market – from the inside out. If you take time to gain neighbourhood/local knowledge, it can help you take advantage of unexpected ‘blips’ in the real estate market.
7. Learn to negotiate without being condescending. People would rather sell to someone they like – so be friendly, helpful – yet know and be firm on your highest price.
8. Get pre-approval for a loan so you can offer a quick sale. Some buyers will accept a lower price when you offer quick settlement.

So there you have our Buyers Agents in Sydney 8 Critical Tips. Of course there are many additional tips we could discuss, however the tips above will go a long way toward helping you achieve your property investing goals.

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More Good News For Property Buyers

Posted on March 6, 2012 by ifyl_admin

It’s great to hear more good news for property buyers, especially in a marketplace where the media likes to (stating the obvious)…sell newspapers, magazines, TV shows, etc –  ’doom and gloom’ headlines are understandably flavour of the month.  As I’ve stated previously, many (if not the majority) real estate reporters are simply not qualified to report.

This article by Michael Matusik (Hotspotting.com.au) offers a more balanced view and certainly reflects what we are seeing in the market-place every day of the week.

More Good News For Property Buyers

Let’s have some good news.

Yes, there is some out there.  It isn’t making the headlines, but it is out there nevertheless.

Here are seven positive points to help you make it through your real estate day.

1. The vacancy rate is tight.  In most capitals and major regional markets it remains under 3% and is much lower in Brisbane, Sydney, Perth, Canberra and central Queensland.  Rents growth is starting to accelerate and we know of numerous examples where over 30 rental submissions are being received for vacant rental dwellings across Brisbane.

2.Sales have improved since mid-year and those vendors who meet the market are selling – and now, often quickly.  It is still a buyer’s market – with the high supply of stock for resale – ensuring that you need to realistically price and market your property well in order to make a sale.  Investors are starting to take their properties off the market and are renting them out again, as they are attracting good rental yields.

3.Last year’s interest rate drop is having some impact – with the number of owner-occupier loans up 2% in December.  Housing investment loans rose 7.5% in December, after a 2.7% rise in November.  First home buying activity is currently at a two-year high.

Generic prices might be still falling but there are signs that the housing sector is starting to turn the corner.  The latest housing finance data provides a degree of encouragement.  Home loans have now increased for nine consecutive months and the investor market is doing the bulk of the heavy lifting.  We have been saying for some time that it is the investors who will get the housing market back on its feet.

4.Hamilton Harbour – one of the first major Queensland apartment projects to face settlement since the GFC – is settling well.  No, that isn’t strong enough – it is going great guns!  I nearly said gang-busters, but that might be taking it a bit too far.

At the time of writing, 89% of the 435 apartments sold since early 2009 have settled, with an overall 95% success rate likely by the end of this month.  We originally wrote about Hamilton Harbour in July last year, stating that it should be on the industry’s “must watch” list; it was a litmus test for the Brisbane market – a beachhead, if you will.  Sadly, few seem to be watching, and nor are the media writing about it.   This is big news for Brisbane-town.  Other, lesser projects (if you ask me) also appear to be settling well.

The average price of a settled apartment in Hamilton Harbour is $526,000, with just over $200 million worth of property settled so far.  Over 220 apartments have been leased in both the towers since late November last year.  The average gross rental yield – based on evidence to date and being rented out for 50 weeks per annum – is 5.3% across the investment stock.  The one-bedroom and one-bedroom with study product are achieving the higher yields.

[Read more...] and discover Matusik’s final 3 positive points to help you make it through your real estate day.

Isn’t it great to hear more good news for property buyers AND read factual information that reflects the logic of the current real estate market.  We’re always interested in your opinion so let us know your thoughts by leaving a comment.

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Buyers Agents In Sydney Say The Banks Must Be Kidding!

Posted on February 22, 2012 by ifyl_admin

I have a question for you…Do you believe the rhetoric from the banking ‘spin doctors’ that their cost of funding is increasing and therefore they need to increase interest rates OR do you agree when Buyers Agents in Sydney say the banks must be kidding?

Before you jump on your email and give me a blast, I totally get that it’s absolutely essential that our banking system remains strong. While there is little doubt that some bank funding costs are increasing, I can’t support the hypocricy of their actions.

Have a quick read of WA Business News and you’ll see what I mean.  The ‘big four’ are obviously preparing us for more bad news.

Buyers Agents In Sydney Say The Banks Must Be Kidding!

https://www.wabusinessnews.com.au/Category/Banks

Buyers Agents in Sydney say the banks must be kidding.  Let us know what you think by leaving a comment.

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Buyers Agents Support Residex That The RBA Got It Wrong

Posted on February 13, 2012 by ifyl_admin

While our Buyers Agents support Residex that the RBA got it wrong, while ever there is freedom of speech in Australia (and let’s hope that never changes), no matter what the Reserve Bank of Australia (RBA) does in terms of interest rates, it can never please everyone.

In this article from Residex, John Edwards believes the RBA missed an opportunity to help move the housing market forward. John also wonders whether the decision was a challenge to the banks to identify the margin of increase they need to cover funding costs before they go about reducing rates.  However as we all know, banks have increased rates independent of the RBA AND that is a concern.

Buyers Agents Support Residex That The RBA Got It Wrong

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Buyers Agents Support Residex That The RBA Got It Wrong

The decision made by the Reserve Bank this week to keep interest rates on hold is disappointing. My disappointment stems from the fact that our housing markets were at a cross road, with the numbers we have been producing suggesting they could either move forward or continue in the correction phase.

The RBA outcome has left me wondering whether or not it was a challenge to the banks to identify the margin of increase they need to cover funding costs before they go about reducing rates. A rate reduction at this time would have made it very easy for them but the banks are now left with a hard decision.

I suspect that we will see some banks move independently of the RBA and in fact move interest rates up a little. There can be no doubt that the major trading banks’ margins are being “squeezed” by increased funding costs. If we see banks raise rates, the RBA has clearly lost some power in its ability to manage the economy with the only tool it has – interest rate settings. This is the price the government pays for political interference in commercial business activity.

It would be very disappointing to find any element of truth in what I am suggesting.

The press and many corporate entities, big and small, are keen to see a recovery in our housing markets because of the resulting impact on revenues and profits, and the want for improved consumer confidence. Because of this, there has been better press about housing markets and the occasional use of statistics that mask the real position of what is happening in housing markets in some states. The press leading up to the Reserve Bank Board’s meeting about the likelihood that rates would be reduced undoubtedly boosted confidence and most definitely caused an increase in activity. It probably also helped to maintain a tolerable level of retail sales activity over the Christmas selling period. The question we now have to ask is what is going to happen now that the expected result has not occurred. Will the population over react and pull back even further?

The activity in the next two months is critical and will allow us to understand where our markets are heading. The numbers to the end of January 2012 could be better. Had the Reserve Bank been more aware of the situation in our housing markets perhaps they would have taken a different approach to this month’s meeting.

Based on housing numbers alone I believe a rate reduction next month is warranted however, the real issue will be unemployment. If the unemployment figure doesn’t rise then a reduction should not be expected.

The Reserve Bank released its Chart-Pack this week, which summarises macroeconomic and financial market trends in Australia. Amongst the data was the below graph on ‘Credit Growth by Sector’. That graph points to Personal and Housing finance trending down and Business being the only sector which is improving.

Corrections and low confidence means bargains exist for the astute buyer so it is now time to be a careful money making investor.

[Read more...] to see John’s perspective on the Australian dollar’s impact on unemployment, tourism, manufacturing and the domino effect on the economy as a whole.

Notwithstanding that Buyers Agents support Residex that the RBA got it wrong and that the decision is likely to cause further negative headlines regarding the housing market, there is some good news — John expects a rate cut by as much as 0.5% by May this year. John also believes – as do we – there are some wonderful bargains to be had by astute property investors.

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Interest Rate Cut For The Property Buyer Is Unlikely

Posted on February 6, 2012 by ifyl_admin

We believe there will be another interest rate cut announced by the Reserve Bank of Australia (RBA) when it meets tomorrow, however as we’ve been saying for some time, we believe an interest rate cut for the property buyer is unlikely — at least not the full RBA cut!  We do not believe the banks will pass on the RBA cut and if they do, it will not be the full cut.

Here is an interesting article from the Sydney Morning Herald:

Interest Rate Cut For The Property Buyer Is Unlikely

Banks must pass on in full any cut in official interest rates next week in light of the hundreds of job losses in the sector, unions say.

The Reserve Bank of Australia (RBA) holds its first board meeting of the year on Tuesday and is widely expected to announce a further cut in the 4.25 per cent cash rate.

However, the big banks have warned that, due to rising funding costs, they may not be able to pass on any reduction in full.

Westpac announced last week it ill shed 400 jobs and send a further 150 offshore, and last month ANZ cut 131 positions.

ACTU president Ged Kearney predicts a community backlash if the banks refuse to pass on any official interest rate cut in full.

She said the banks have already ensured many families will be battling to make ends meet following hundreds of lay-offs in the sector.

[Read more...] to see Mr Kearney’s comments and recommendations for the Australia Government.

Do you believe an interest rate cut for the property buyer is unlikely?  Let us know by leaving a comment.

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Five Most Common Real Estate Investment Barriers For The Property Buyer

Posted on January 29, 2012 by ifyl_admin
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Our Five Most Common Real Estate Investment Barriers For The Property Buyer

We are constantly hearing about the potential dangers of real estate investment, so today we thought we’d discuss the five most common real estate investment barriers for the property buyer.

While you may well disagree with our list, these are certainly some of the most common barriers we see.  The positive thing here is that with a little help, they can all be overcome.

Five Most Common Real Estate Investment Barriers For The Property Buyer

Of course there are many potential dangers with any form of investment, however we thought we’d identify five of the more common dangers AND…Property Buyers Australia can help you overcome each of them.

Barrier #1: Fear – many folks carry out their research BUT never take action. This is usually a result of ‘fear’ — fear of the unknown!  The way to overcome this is to gain knowledge and team up with folks who have the necessary knowledge and experience.

Barrier #2: Paying too much – one of the most common questions we’re asked in…”how much should I pay for this property?”.  Unfortunately valuing any property can be quite subjective.  We remove the subjectivity by researching the market, location and specific property our clients are interested in to come up with a ‘fair’ price range.

Barrier #3: Insufficient time – this is a common one and many of our clients engage us because they just don’t have the time to do it themselves.

Barrier #4: Tenants tearing the place apart – notwithstanding the media hype and headlines of tenant disaster stories, this really is the exception NOT the rule.  Provided you engage the services of a good Property Manger, 99% of the time it will not happen.

Barrier #5: Procrastination – we call this ‘analysis paralysis’.  This is where potential investors continuously research BUT never take action OR when they eventually act, it’s too late – the property has been sold to someone else.

As mentioned above, there are many barriers to property investing – these are simply the five most common real estate investment barriers for the property buyer we see on an ongoing basis.

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Sydney Vacancy Rates Provide Opportunities For The Property Buyer

Posted on January 23, 2012 by ifyl_admin

Following two consecutive interest rate cuts, there is no doubt in our minds that things are picking up.  Confidence is slowly but surely returning.  Yet another indication that we’re focusing on the most appropriate locations, is that the Real Estate Institute of NSW REINSW) reports that Sydney vacancy rates provide opportunities for the property buyer.

This article from Terry Ryder summarises the REINSW’s position.

Sydney Vacancy Rates Provide Opportunities For The Property Buyer

property buyer,buyers agents sydney,property buyers,buyers agents queensland,Sydney Vacancy Rates Provide Opportunities For The Property Buyer

Sydney Vacancy Rates Provide Opportunities For The Property Buyer

Vacancies in Sydney’s rental market remain tight, according to the latest rental data from the Real Estate Institute of NSW.

The overall vacancy rate for Sydney in October was unchanged at 1.4%.

Vacancy rates rose slightly in the Middle Suburbs (10-25km from CBD), up 0.2 to 1.6% and in the Outer Suburbs (more than 25 km from CBD) up 0.1 to 1.4%.

But vacancy rates fell 0.2% to 1.3% in Inner Suburbs (0-10km from CBD).

In metropolitan centres outside Sydney, the vacancy rate is 1.9% in Newcastle, 1.8% in Wollongong and 1.7% on the Central Coast.

REINSW president Wayne Stewart characterizes the overall rental vacancy outlook in NSW as “depressed” but I see it as opportunity for property investors.

Like so many in real estate, Stewart believes it’s up to government to take “immediate and sustained action to stimulate investment in the residential property market”.

But it’s not the job of government to build dwellings – it’s up to investors to take action. I would have thought vacancies not much above 1% (plus flat prices and a favourable interest rates climate) were all the stimulus anyone would need.

Terry Ryder from Hotspotting.com.au has been researching and reporting on property investment for as long as I can remember.  Just like us he has remained up-beat about the real estate market in Australia – particularly in specific locations – so when he makes a statement like Sydney vacancy rates provide opportunities for the property buyer, we tend to listen.

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ANZ Property Research Predicts Good Times For The Property Buyer

Posted on January 19, 2012 by ifyl_admin

Amongst the hype and rhetoric of the GFC, US property prices and the world ending, it appears things are starting to settle back into their historic trends. – as they always do. Now (October 2011) ANZ property research predicts good times for the property buyer.

The ANZ Australian Housing Snapshot (October 2011) provides some interesting reading and emphasises our reliance more so on Asian rather than US markets.

ANZ Property Research Predicts Good Times For The Property Buyer

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ANZ Property Research Predicts Good Times For The Property Buyer

Despite extreme volatility in global financial markets and plunging equity prices, Australia’s medium-term economic outlook remains favourable, largely due to our exposure to the fastgrowing Asian region. Heightened concerns of a Greek default and European banking crisis will keep markets on edge and growth in Europe, the US and Japan will be anaemic.

However, the Asian growth story remains intact and the outlook for Australian resource
investment and profitability are still positive. The risk of further RBA rate hikes has
dissipated and the market is priced for substantial rate cuts. Reduced estimates of the nearterm momentum in core-inflation, soft retail spending, retail discounting and falling import prices have reduced the urgency for further rate hikes. Moreover, recent global volatility and a slowing labour market have opened the door for ‘insurance’ interest rate cuts in the 6 months ahead.

Housing market sentiment continues to soften and prices have drifted lower in most capital
cities. Declining auction clearance rates and rising days on market reflect the mis-match
between buyer and vendor expectations. However, the absence of wide-scale ‘forced’ selling has, to date, protected measured price outcomes. Flattening employment growth and rising unemployment present clear risks to loan delinquencies and house prices. Weak sentiment will see house prices continue to drift sideways to lower over the coming 6-12 months.

Nevertheless, a rebound in economic growth in 2012 and 2013 should limit the fallout.
Moreover, housing market fundamentals continue to tighten and near record low vacancy
rates will eventually drive a renewed acceleration in rents that should encourage investors
and first home buyers back into the property market.

[Read on...] to discover predictions for the individual states – makes for very interesting reading and we are already seeing signs of improved housing market conditions.

Are you thinking about getting into the property investment market in 2012?  If so, have a quick read of this report and see why the ANZ property research predicts good times for the property buyer.  Please let us know what you think by leaving a comment.

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Rate Relief Favours The Property Buyer

Posted on January 16, 2012 by ifyl_admin

If you’re a property buyer, you are certainly aware that we’ve had two consecutive interest rate reductions.  If we believe market indicators (as well as hints provided by Reserve Bank Governor Glenn Stevens), we are in for more.  It’s therefore fair to say that rate relief favours the property buyer in 2012.

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Rate Relief Favours The Property Buyer

While this is good news for the real estate market, we’re not convinced that our banks will pass on future reductions in full.  In fact, there could well be another rate cut in February, however we believe the banks will withhold at least part (if not all) of it.

An article by Christopher Joye (economics commentator and Managing Director Riskmark International) in Australian Property Investor (API) Magazine (January 2012) sums up the good news quite well –

Rate Relief Favours The Property Buyer

Crucially, the financial markets are pricing in another three or four rate cuts by June next year.  While I think this is unlikely to occur, all the talk about lower rates will be a positive influence on housing market activity.

We were officially forecasting a recovery in house prices by the middle of 2012 based, critically, on our assumption that the RBA would be forced to hike rates at least one to two more times…

we now expect better housing activity to materialise sooner than previously projected.  In particular, our models imply that house prices should respond quite quickly to the change in the community’s mood, the RBA’s positioning and rates more generally.  This is a function of the fact that around 90 per cent of all home loans are fully variable and get the benefit of any rate relief.

Christopher Joye is one property commentator we do read and listen to – we don’t always agree with him, but he offers logical discussion – unlike many commentators.

In summing up our forecast for 2012, we firmly believe rate relief favours the property buyer and therefore it will be much better than 2011, mainly because we’re seeing a higher level of consumer confidence.  In general, we believe Australian market prices will increase by around 3 to 5 per cent.  However there will be traditional (excluding mining towns) ‘suburban pockets’ that achieve much higher increases – up to around 12 per cent.  So, it’s time to get out your crystal ball and start predicting!

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