BETTER NEWS AT LAST!
Coming into summer and the weather seems to mirror the economic news – unseasonal fluctuations in temperature and lots of rain interspersed with an occasional ray of sunshine to remind us that there is light at the end of the tunnel! However, recent sales in the Lower North Shore indicate that several sectors of the residential market are warming up, with investors and first home buyers getting involved again and home buyers competing for the lower-to-middle price range properties. This bodes well for the top end of the market and I include part of an article from Smart Property Investment Online Newsletter dated 12th October which looks at the short to medium term:
“Residential property prices in Sydney and Perth are tipped to soar, with hungry investors looking to cash in. According to QBE LMI’s latest housing outlook, a growing deficiency in Sydney’s household dwelling supply will force property prices significantly higher over the coming three years. By 2014, QBE LMI expects property prices in Sydney to be 20 per cent higher than what they are today.
“Price growth is forecast to be strongest over the next three years in Perth and Sydney,” QBE LMI chief executive Ian Graham said.
“In Sydney, the significant deficiency of residential dwellings is likely to continue to apply upward pressure on both rents and dwelling prices, attracting demand in particular from investors. Constrained affordability has resulted in little annual movement in prices in Sydney since 2004, with the exception of the 14.3 per cent increase in the median house price in 2009/10, which highlights the level of pent up demand that can be released as affordability and the economic outlook improves.”
Sounds hopeful, doesn’t it?
PROPERTY MANAGEMENT NEWS
Lack of stock….again! The shortage of rental properties is driving the market (and Kate) bonkers! Every property we list seems to rent immediately and we’re now looking for more properties. Do you know someone who has a property to rent? We’ll gladly help them.
OUR ADVERTISEMENTS
One final thing – you may have seen our advertisements in The Harbourview Magazine over the past couple of years. They’re the brainchildren of the magazine’s editor and proprietor, David Shapter, a delightful, creative and desperately hard-working man, who we’d like to credit for these ads. Check them out each month!
SPRING IS SPRUNG? - MAYBE JUST NOT YET
The year is more than half over and it seems to have gone in a flash – certainly it hasn’t been dull! The climate of confidence has waxed and waned almost on a weekly basis, with strong news from the banking and mining sectors suddenly being overshadowed by the doleful news from The United States and Europe. Interest rates have added to the mix with predictions this month about-facing from a 0.5% increase to 0.5% reduction! It makes it hard to assess with any accuracy where you should be heading with your investments.
The good news is that properties in prime locations in the lower to middle price ranges are selling, and in some cases selling very well indeed. I recently commenced marketing a 1 bedroom investment apartment in Goulburn Street, Surry Hills (yes, we go just about anywhere for our clients!) and had the interesting experience of squeezing 43 groups into a space measuring approximately 47sqm! Yes, it sold quickly for $20,000 more than we were expecting. And an older style 3 bedroom, 2 bathroom apartment in Avenue Road Mosman also attracted lots of interest, with 65 groups through in 2 weeks and again a good sale price achieved.
As usual, the problem seems to be where to find the next property to market…can you recommend a potential vendor to us?
On the rental side, Kate has been even busier than usual implementing the requirements of the new legislation enacted at the end of last year. We may not like or agree with the new rules, but we have to get used to them and try to make sure all our landlords and tenants understand their new/different rights and obligations. We have been to 3 seminars, written numerous circulars and it looks like everyone’s getting the message. Incidentally, as members of the Real Estate Institute of NSW, we supported their exhaustive and intelligent battle to tone down much of the unreasonable draft legislation. Some very valuable compromises were achieved, and it was gratifying to be part of that process.
More to the point, one question we’re always being asked by landlords is: “Can we get more rent for my property?” and we would love to say “Yes, how much more would you like?” The market is a dynamic and changing entity which can be full-on one month and over-supplied and sluggish the next. We review all our rents regularly (the new legislation says we can only have one increase per year) and if it’s appropriate we’ll always keep up with rises in the market. But if the rent is over the market, a tenant will often find somewhere “better and cheaper” and the resulting vacancy can be costly. That’s the balancing act we have to perfect.
Hopefully the cold winter nights are soon going to give way to warmer ones and a positive, healthy spring.
All the best,
Hamish Baker
2011 GETS OFF TO A FRANTIC START!
Thursday, February 03, 2011
The phone started ringing on Boxing Day, about half an hour after the start of the Sydney-Hobart Yacht Race..."We'd like to inspect that apartment you've got for sale..." and it hasn't stopped ringing since! So with 2 - and possibly 3, fingers crossed - exchanged contracts already and 3 exciting new listings starting in the first week of February, the sales side of the business has kept me running this year.
Just a note on the two properties sold: the 1 bedroom apartment in 100 Ben Boyd Road, Neutral Bay sold for $550,000 - it was renovated and has the most sensational views of the Harbour and city. The 2 bedroom apartment in Spit Road sold for $470,000 and will continue as a management property with us.
As for the new listings, a rarity indeed - 1/1 The Esplanade, Balmoral: a 2 bedroom apartment with it's own courtyard just opposite the beach for around $700,000. Beat that for value and position! Next, 4/11-17 Clifford Street, Mosman: a modern luxury 2 bedroom, 2 bathroom apartment with it's own garden, round the corner from Spit Junction but away from the bustle and noise. Asking $920,000, so you can understand that it's a very special apartment. Finally, 4a Government Road, Beauty Point, a 2 storey executive home with fabulous views, 3 living areas, 3 double bedrooms, 2 bathrooms, garden and terrace, with double garage, asking $1,950,000. So there's something for everyone there, investors, home-owners, retirees, families and beach bums!
Check out the open for inspection times under the SALES icon at the top of our web page
On a personal note, we turned 20 recently! Hamish Baker Real Estate commenced trading on 11th January 1991, and by way of marking the occasion, we celebrated at the Mosman Art Gallery with many of our clients and associates, all of whom appeared to have a pretty good time! Kate and I would like to express our sincere thanks once again to our wonderful, loyal clients without whom, of course, we wouldn't be here.
Meanwhile, I'm looking forward to a busy, prosperous year and hope that you have one too.
- Hamish Baker
