Issue # 091 April 10th

2015

" What's Happening In New South Wales " Central Coast Vendors Have 134,000 Reasons To Celebrate A Successful End To 2014

They say bricks and mortar is one of the best investment choices to get ahead in life, and with latest figures showing a combined $307 million dollar profit for Central Coast property sellers, it’s hard not to take note of this sound advice. 8 April 2015. More. Investors Paying 15pc More Than Necessary For Property

With property prices continuing to climb, particularly in Sydney, one real estate group has warned that investors are at more risk than ever of overpaying. LJ Hooker said year-on-year growth in Sydney house prices peaked at 15.2 per cent, according to the group’s Q1 myMarket Report. 8 April 2015. More. Reserve Bank's Decision To Keep Interest Rates On Hold No Reprieve For Sydney Market The Reserve Bank's decision to keep interest rates on hold is unlikely to slow house price growth in Sydney, experts warn. And some worry that the prospect of a cut on the horizon could push the Sydney property market to its extremes. 7 April 2015. More.

Sydney Investors: Why Settle For One Unit When You Can Have The Whole Block?

In yet another sign of the continuing exuberance of the Sydney property investor market, a block of nine apartments in the eastern suburbs has sold under the

hammer for $7.3 million. 2 April 2015. More.

Economy Is Strong, But Little Investment Outside Of Housing: ANZ Research's NSW Scorecard

Household consumption – three-fifths of gross state product – strengthened noticeably in NSW over 2014 (+4.1% year on year) alongside faster growth in household income and dwelling prices. Discretionary spending, which is particularly sensitive to the economic cycle, grew strongly over 2014 (Figure 2). Spending on household goods strengthened in line with the pick-up in dwelling construction. 31 March 2015. More.

" What's Happening In Queensland " Work Starts On Brisbane’s Tallest Apartment Building, Skytower

Construction has started on Brisbane’s tallest residential building, the $1 billion, 274m Skytower. The joint Billbergia and AMP Capital project, which includes an adjoining five-star hotel, will be the third-tallest apartment building in Australia. 8 April 2015. More. Queensland's Wide Bay-Burnett Region One Of Australia's Top Buyers' Markets

The Wide-Bay Burnett region of Queensland was named one of the Australian property markets that most favoured buyers over sellers by the Commonwealth Bank and CoreLogic RP Data in their latest Home Buyer's Index. 7 April 2015. More. House Prices Tumble At The Coalface, With Some Now On The Market For Less Than Land Value

A mining bust in the heart of Queensland has wreaked havoc on the housing market, with some homes selling for less than the land value. Queensland towns at the coal face of the mining downturn have seen median house prices tumble. 4 April 2015. More.

10 Brisbane Properties Under $300,000: SQM Research

Research firm SQM Research has released its top 10 most affordable properties in Brisbane. All are located within 30 kilometres of the Brisbane CBD, and all cost less than $300,000. Predictably, almost all on the list

are units, and all have been discounted. 2 April 2015. More.

Brisbane's Inner City Unit Supply Called Into Question

The off-the-plan apartment market in Brisbane is not oversupplied and is actually in a strong position, according to property research firm Urbis. Addressing concerns that there is an oversupply of new apartments in the city in relation to buyer demand, Urbis said that the December quarter of 2014 was very busy, counting more than 1,500 unit sales over the period. Furthermore, Urbis said that in the first two quarters of 2015 there will be about 5,000 apartments available for sale. 31 March 2015. More.

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State Of The Nation Continued…

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"What's Happening In Victoria" Most Popular Suburb For Share Houses Is…

Melbourne’s home of quinoa, bicycles and beards has been ranked the most popular suburb in Australia for those seeking a share house, new data shows. Fitzroy, in Melbourne’s north-east, is the place to be, with Flatmates.com.au data showing for every room listed there are 30 people looking for a room. 6 April 2015. More. Top Sellers, Highest Clearance Rate Found In Melbourne’s Outer Suburbs

Homes in Melbourne’s outer suburbs have been selling like hot cross buns, with two areas on the city limits leading sales and auction success this year. Pakenham, in Melbourne’s

southeast, is the sales hotspot, with more than 160 homes finding a buyer since January. 5 April 2015. More. Renovator’s Delights Tempt Buyers But Are They Worth The Trouble?

Buying a renovator’s delight can be a great way to turn an old house into your dream home in your dream location. While shiny renovated show homes can command seven-figure prices,

their rundown, unloved neighbours can provide a more affordable entry point into a desirable suburb. 4 April 2015. More.

Melbourne Property Cash Splash Totals $148 Million Each Day

Buyers splurged almost $148 million each day on Melbourne property last year, new figures reveal. The residential real estate spending spree tipped an average $1 billion per week, CoreLogic RP Data figures show. In all, $53.7 billion was spent on homes in Melbourne in 2014, up by $800 million in 2013 but just shy of the record $54 billion splashed out in 2010. 3 April 2015. More.

House Transactions Decline In Latrobe-Gippsland Region: Corelogic RP Data

The number of homes transacting across the Latrobe-Gippsland region has fallen over the 12 months to November 2014, down 7% compared to November 2013, according to recent CoreLogic RP Date research. 2 April 2015. More.

"What's Happening In South Australia" South Australia Left Behind As Housing Boom Ignites As new home approvals surge across Australia, South Australia's biggest home builder, Hickinbotham Homes, has warned the beleaguered state is facing a sharp drop in building activity. On the east coast, the negative economic impact of the dwindling mining boom is being offset by a red hot housing market, particularly in NSW. 9 April 2015. More.

Construction Of The $116 Million U2 On Waymouth Development In Adelaide Has Started

Construction has started on the $116 million U2 on Waymouth development which will feature a rooftop cinema. The 25-storey building, which is being developed by Datong Australia, will include 257 apartments ranging from one-bedroom studio apartments to three bedroom penthouses with views over the city. The smaller apartments can be bought under a “dual title” arrangement with one title covering two apartments. Buyers could live in one apartment and rent out the other. 8 April 2015. More. More Than $400 Million In City Apartments Under Construction Or In Pipeline — Even As New Home Market Slumps

Adelaide’s CBD is experiencing an apartment boom, defying industry claims of a slump in the state’s housing sector. More than $400 million of new apartment projects are under construction or in the

pipeline as people take advantage of low interest rates, generous concessions and the appeal of city living. 5 April 2015. More.

College Park Knocking Off Unley Park As The State’s Most Expensive Suburb Proximity to quality schools and the CBD has led to the leafy city-fringe suburb of College Park knocking off Unley Park as the state’s most expensive suburb. College Park recorded a median sale price of $1.8 million in 2014, after failing to make the top 10 list in 2013. Rose Park, Unley Park, North Adelaide, Tusmore and Hyde Park rounded out the top 10. 28 March 2015. More.

Hewitt A Hit With Young Families

Hewett is attracting families in droves due to its accessibility and proximity to the Barossa Valley, real estate agents say. The area, north of Gawler, currently has the highest percentage of families in the state, with 92.4 per cent of homes family households, according to CoreLogic RP Data. 27 March 20 15. More.

State Of The Nation Continued…

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"What's Happening In Western Australia" Treasurer Mike Nahan Warns Of WA’s ‘Non-Cooperation’ Over Bad GST Deal UPDATE: JOE Hockey warned WA faces a “perfect storm” that could see the state get less than 30 cents of every dollar they collect of the goods and services tax. Releasing the Commonwealth Grants Commission’s advice on the GST after talks with state Treasurers, Mr Hockey said he had sympathy for WA’s position. 9 April 2015. More.

Home Truths Of Perth’s Property Investment Pitch From The Homebuyer Seminar Circuit

Owning property is part of the Australian dream. But who can you trust? I am standing in the Rendezvous Hotel conference room in Scarborough and I’m about to put my hand through a

two-inch block of timber. The wood is being held by a salesman who tells me to “let go of all fear”. 8 April 2015. More. Insurance Commission Of WA To Sell Up To $1bn In Assets In What Could Be WA’s Biggest Property Transaction Up to $1 billion could be netted when the Insurance Commission of WA offloads five of its major assets in what could be the state’s biggest property transaction. ICWA, the State Government’s insurance arm and sole third party motor vehicle insurer, revealed on Tuesday it is selling three commercial office towers in Perth’s CBD and two major retail suburban shopping centres. 7 April 2015. More.

Property Nest Eggs Start Younger As Parents Help First-Time Buyers

More WA parents are helping their kids buy their first homes. One in five first-homebuyers now gets some sort of help from parents, according to Perth mortgage broker Caterina Clemente. Ms Clemente said in the past three years she had seen a dramatic increase in parents assisting their children with financial contributions. 7 April 2015. More. Perth’s Luxury Rentals Are Hot Property As Investors Cash In On Demand It’s never been better to live a life of luxury — even if it’s just for a while. Luxury rentals are becoming hot property in Perth and savvy investors are now building multi-million dollar homes for the specific purpose of using them for executive rentals. 31 March 2015. More.

"What's Happening In The Northern Territory" Home Ownership Looking Dim For First Home Buyers In Northern Territory

A dramatic drop-off in the NT property market since the first home buyers’ grant was canned has experts calling for it to be reinstated. The first home buyers grant, that provided financial assistance to first home buyers, was cancelled after January 1 this year, and is now only applicable to first homeowners wanting to build their home. 4 April 2015. More. Endless Lifestyle Opportunity

Holding a privileged position in highly sought after Rapid Creek, this solid family home on a large 918sq m dual access corner block offers an idyllic lifestyle opportunity. The home has a versatile layout, light-

filled interiors, extra-large bedrooms plus a fully self-contained money earning granny flat. Rapid Creek reserve and foreshore walking paths are just across the road. 4 April 2015. More.

Darwin Property Prices Experienced Biggest Drop In Prices Of Any Capital City In Australia

Darwin properties have experienced the biggest drop in prices of any capital city in Australia. Prices increased 0.8 per cent in March, but remain 0.8 per cent below the same time last year. Hobart was the only other capital to record a drop in prices over the past year, with 0.3 per cent. 2 April 2015. More.

"What's Happening In Tasmania" Historic Tasmanian Estate On SQM's Most Discounted List

Clifton, a historic estate in Tasmania's Ranelegh, is on SQM Research's top 10 most discounted properties list, with its asking price halved. The circa 1850 property, with a main house that dates back to 1865, has been on the market for more than two years. 9 April 2015. More. Foreign Investors Swoop On Hobart Property

Singaporean investors have completed a real estate sweep on Hobart — snapping up two prime city sites to cash in on the CBD’s accommodation boom. As a trade mission to China spruiks the state as an Antarctic gateway, the head of Knight Frank Tasmania says Asian investors are excited about investing in Hobart to build hotels to meet increasing demand. 28 March 2015. More.

State Of The Nation Continued…

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If you would like to voice your opinion on any article you have read in the State Of The Nation Newsletters or elsewhere that has concerned you, please send the article and your opinion on it to us and we will include it in a future issue of the State Of The Nation. Send your opinion to kevin@smartpropertyadviser.com.au

"Market Update" Rental Growth May Have Picked Up In The Past Quarter But It Still Remains Sluggish An increase in new housing supply and investors at record high levels has resulted in a significant slow down in rental growth. The latest CoreLogic RP Data rental report revealed there had been a lift in rents in the past quarter, although the increase was fairly low. 9 April 2015. More.

Property Data Can Give You A Genuine Insight Into What Is Truly Happening To Your Home’s Value

This week I felt it was time for a national capital cities median house price update. We are awash with positive property market reports across many of our states, but the fickle market being what it is, it doesn’t hurt to step back and consider the facts. 8 April 2015. More.

Reserve Bank Keeps Rates Steady At 2.25%

There were no post-Easter chocolates for borrowers today, with the Reserve Bank keeping rates on hold for the second month in a row. While experts are confident of another rate cut this year, most predicted the RBA to hold steady in April. 7 April 2015. More. NSW And Vic Economies Lead The Nation

Low interest rates and booming property markets have lifted the economic strength of the country's two largest states. NSW and Victoria outperformed other states in 2014, as Western Australia and Queensland were hit by the downturn in mining investment, National Australia Bank says. 1 April 2015. More.

Flats Give New Home Sales A Big Boost New homes sales have soared to their highest level in nearly five years amid increasing demand among buyers for flats and townhouses rather than a house in the suburbs. Sales rose 1.1 per cent in February, seasonally adjusted, after a 1.8 per cent gain in January, the Housing Industry Association new home sales report shows. 31 March 2015. More.

Young Buyers And Property: What Are The Challenges? Just over 14% of Australian buyers are first home owners, based on recent Australian Bureau of Statistics numbers. This compares to roughly 21% five years ago. It follows many young buyers likely fall into this category and with rising prices and a fiercely competitive marketplace in many cities, industry analysts are increasingly concerned about a lack of affordable housing

opportunities. 25 March 2015. More.

"What's Happening Internationally" US Holiday Home Sales Soared In 2014, Annual Report Shows Holiday home sales in the United States soared 57.4% in 2014 to above their most recent peak level in 2006, while investment purchases fell for the fourth straight year, new data shows. The annual survey by the National Association of Realtors reveals that holiday home sales increased to an estimated 1.13 million last year. 8 April 2015. More.

The Four Property Investment Rules That ‘They’ Forgot To Tell You

If you’re interested in property investment and looking for a short term gain, a ‘get rich quick’ tip or negative gearing insight, stop reading – this article is definitely not for you… However if you’re serious about generating a passive income to fund your retirement someday, then grab a coffee & read on – I promise it’ll be worth the six and a half minutes you invest. 1 April 2015. More.

Controversy Corner

Business Confidence Improves Despite ‘Head Winds’ The RBA’s decision to drop the cash rate in February has buoyed business confidence in the past month, but Roy Morgan Research warns the sector still faces serious economic “head winds”. 9 April 2015. More.

Some Parting Advice

“You have to take action to capitalise on your knowledge to move towards your goals.”

Until Next Time… Kevin Lee

www.smartpropertyadviser.com.au