What a charade the auction proces is - an absolute means to belt buyers or sellers to cop extremes either way, and also makin gou tis is a premiewer way of sellin gin southern sttaes - this series of articles brings to life the lie in all these claims.
The Auction process de-constructed
A SERIES OF ARTICLES SAYING IT AS IT IS
Reserve prices scrutinised
Date November 20th 2012
Talking Property
The auction season might have only a few weeks to go before winding up for Christmas but there has been plenty of attention on the process – and in particular the issue of price guides – in the last week.
Following a blitz in NSW, which involved Fair Trading officers in that state turning up to real estate businesses unannounced and attending 20 weekend auctions, up to five agents remain under investigation for breaches to the fair trading requirements of the Property Stock and Business Agents Act 2002.
The investigators were targeting illegal practices such as deliberately under-quoting to potential buyers, over-pricing to vendors and dummy bidding.
News of whether the agents will be fined or issued with a warning was not available at the time of writing.
In South Australia reserve prices at auctions are set to become more transparent if the Weatherill government gets its way.
Last week, South Australia's deputy premier John Rau introduced a bill that will make it against the law for properties to be passed in at a higher price than the reserve, which must be set at no more than 110 per cent of the price acceptable to the vendor, as listed on the contract between the agent and vendor.
That means the vendor will be forced to decide before the property's marketing campaign kicks off just what price they are willing to accept, and stick with it.
While potential buyers won't be privy to a vendor and agent's sales agreement, any mention of a price on marketing materials will give away the reserve price, as the reserve must also be no more than 10 per cent higher than the advertised price.
In announcing the bill, Mr Rau argued "bait pricing" is used by some real estate agents to "unfairly suck in prospective home buyers".
"I have received numerous complaints from homebuyers highlighting the practice of bait pricing," he said. "These laws will stamp out bait pricing and give home buyers an even playing field."
"The government believes that the most effective way of eliminating the practice of bait pricing is to create a nexus between the price sought by, or acceptable to, the vendor and marketing a property based on that price.
"The expectations of the purchaser will be realistically met when the auction of a property is based on advertising that reflects the genuine selling price of the vendor."
Mr Rau rejected the notion that the laws would be unfair to home sellers.
However, the Real Estate Industry of South Australia's general manager of communications Emma Slape argues the changes will disadvantage vendors and scare homeowners away from holding auctions.
"If they have put down that they will accept $500,000 on the day of listing the property, and they've had really strong demand for the property, and they're thinking perhaps we would be able to get $600,000 they won't be able to do that under the laws," Ms Slape says. "They're limited to making that reserve no higher than $550,000 [for example].
"You need two parties to negotiate and we feel that one party is getting their hands tied behind their backs."
Domain.com.au with Sunshine Coast Auction results – as at 28th November 2012
All the voluble agents in the main press claim 60-70-80-90% auction clearance rates.
Somebody is telling porkies vis a vis the Domain graph, unless their clearance rate means at the end of the day, aka private treaty sales clearance rates, so what is the difference?
New online tool reveals top auction suburb
Tuesday, 27 November 2012
Strong homebuyer demand is critical for a successful auction, according to data obtained from a new online tool that reveals the Melbourne suburbs where auctions are the most popular method of sale.
The new online tool, launched by the Real Estate Institute of Victoria (REIV), should help agents and vendors make the decision about the most appropriate sales method for their property, according to REIV CEO Enzo Raimondo.
“The maps clearly show that auctions are the most popular sales method in the inner city whilst in the outer suburbs most sales are conducted privately," Mr Raimondo said. "This in part explains why the median price of a home sold at auction is higher than one sold at private sale, as residential property is much more expensive in the inner suburbs.
“Whilst overall auction sales have represented around 22 per cent of all sales in Melbourne this year, there are some suburbs with a higher number and some with less."
Mr Raimondo said analysis of the data over 2010 and 2011 revealed a trend towards private sales as the level of competition dropped.
“This highlights that auctions work better when there is a high level of demand generally, or for a specific property,” he continued. “When teamed with data showing weekly clearance rates this information is an invaluable and unique resource for all those active in the residential real estate market.”
Mr Raimondo said suburbs which saw more than half the homes sold by auction in 2011 included Elsternwick, Surrey Hills, Armadale, Richmond, Malvern, Northcote and Camberwell.
“At the other end of the spectrum, less than five per cent of homes were sold by auction in Narree Warren, Werribee, Rowville, Craigieburn and Mooroolbark," he added.
“It is also the case that clearance rates tend to be higher in the suburbs where auctions are more prevalent.”
So, is this auction result % really a surprise.
What is a real surprise is that the apparent auction capital of Australia, ie Melbourne, has only 22% of all sales sold via auction???
What gives then, when our local experts dominant in the local press say an auction is the way to go, and then suggests a $5 to $10k advertising press campaign is necessity.
In this world, nobody trusts anybody until their advice is proven. Your local area expert, rather than an auction“LOUDMOUTH , may be somebody to investigate in the first instance.
Wednesday, November 28, 2012
Liven up your living room
Living rooms take a serious beating and the
decorative elements get stale fairly quickly. Use the following tips to give your living room a fresh new look for not much cost.
FOCUS ON ONE PIECE
Turn one decorative piece or large piece of furniture into the focal point and decorate around it. One high quality piece will carry the room in most cases, be careful not to over decorate
If you have one already, change it - a new entertainment unit for the TV, a different window treatment will create a difference.
GO BOLD & COLOURFUL
If you’ve already got a pretty monochromatic colour scheme, go the other way. Add a few unexpected splashes of colour. Step away from the standard accessories for colour and add a chair or area rug that is full of colour and brings a new sense of energy.
SHOP YOUR HOME
Scour your own home to see if there are any pieces that can be swapped around. You can even take old furniture and find a throw rug to liven it up or, depending on your budget, have it re-upholstered to give it new life.
REARRANGE THE FURNITURE
Just a simple change of your furniture arrangement can really give the room a new look. If you change the traffic flow of the room, you’ll give it a different feel.
LOOK OUTSIDE THE NORM
look for eclectic pieces with a unifying theme, colour, style or just of appeal to you.
decorative elements get stale fairly quickly. Use the following tips to give your living room a fresh new look for not much cost.
FOCUS ON ONE PIECE
Turn one decorative piece or large piece of furniture into the focal point and decorate around it. One high quality piece will carry the room in most cases, be careful not to over decorate
If you have one already, change it - a new entertainment unit for the TV, a different window treatment will create a difference.
GO BOLD & COLOURFUL
If you’ve already got a pretty monochromatic colour scheme, go the other way. Add a few unexpected splashes of colour. Step away from the standard accessories for colour and add a chair or area rug that is full of colour and brings a new sense of energy.
SHOP YOUR HOME
Scour your own home to see if there are any pieces that can be swapped around. You can even take old furniture and find a throw rug to liven it up or, depending on your budget, have it re-upholstered to give it new life.
REARRANGE THE FURNITURE
Just a simple change of your furniture arrangement can really give the room a new look. If you change the traffic flow of the room, you’ll give it a different feel.
LOOK OUTSIDE THE NORM
look for eclectic pieces with a unifying theme, colour, style or just of appeal to you.
Tuesday, November 20, 2012
Auctions the way to go? Think very seriously
So you like the auction process?
Reserve prices scrutinised
Date - November 20, 2012 – Domain/com.au
Talking Property
Carolyn Boyd is a property journalist and keen follower of Australia’s housing market.
The auction season might have only a few weeks to go before winding up for Christmas but there has been plenty of attention on the process – and in particular the issue of price guides – in the last week.
Following a blitz in NSW, which involved Fair Trading officers in that state turning up to real estate businesses unannounced and attending 20 weekend auctions, up to five agents remain under investigation for breaches to the fair trading requirements of the Property Stock and Business Agents Act 2002.
The investigators were targeting illegal practices such as deliberately under-quoting to potential buyers, over-pricing to vendors and dummy bidding.
News of whether the agents will be fined or issued with a warning was not available at the time of writing.
In South Australia reserve prices at auctions are set to become more transparent if the Weatherill government gets its way.
Last week, South Australia's deputy premier John Rau introduced a bill that will make it against the law for properties to be passed in at a higher price than the reserve, which must be set at no more than 110 per cent of the price acceptable to the vendor, as listed on the contract between the agent and vendor.
That means the vendor will be forced to decide before the property's marketing campaign kicks off just what price they are willing to accept, and stick with it.
While potential buyers won't be privy to a vendor and agent's sales agreement, any mention of a price on marketing materials will give away the reserve price, as the reserve must also be no more than 10 per cent higher than the advertised price.
In announcing the bill, Mr Rau argued "bait pricing" is used by some real estate agents to "unfairly suck in prospective home buyers".
"I have received numerous complaints from homebuyers highlighting the practice of bait pricing," he said. "These laws will stamp out bait pricing and give home buyers an even playing field."
"The government believes that the most effective way of eliminating the practice of bait pricing is to create a nexus between the price sought by, or acceptable to, the vendor and marketing a property based on that price.
"The expectations of the purchaser will be realistically met when the auction of a property is based on advertising that reflects the genuine selling price of the vendor."
Mr Rau rejected the notion that the laws would be unfair to home sellers.
However, the Real Estate Industry of South Australia's general manager of communications Emma Slape argues the changes will disadvantage vendors and scare homeowners away from holding auctions.
"If they have put down that they will accept $500,000 on the day of listing the property, and they've had really strong demand for the property, and they're thinking perhaps we would be able to get $600,000 they won't be able to do that under the laws," Ms Slape says. "They're limited to making that reserve no higher than $550,000 [for example].
"You need two parties to negotiate and we feel that one party is getting their hands tied behind their backs."
Reserve prices scrutinised
Date - November 20, 2012 – Domain/com.au
Talking Property
Carolyn Boyd is a property journalist and keen follower of Australia’s housing market.
The auction season might have only a few weeks to go before winding up for Christmas but there has been plenty of attention on the process – and in particular the issue of price guides – in the last week.
Following a blitz in NSW, which involved Fair Trading officers in that state turning up to real estate businesses unannounced and attending 20 weekend auctions, up to five agents remain under investigation for breaches to the fair trading requirements of the Property Stock and Business Agents Act 2002.
The investigators were targeting illegal practices such as deliberately under-quoting to potential buyers, over-pricing to vendors and dummy bidding.
News of whether the agents will be fined or issued with a warning was not available at the time of writing.
In South Australia reserve prices at auctions are set to become more transparent if the Weatherill government gets its way.
Last week, South Australia's deputy premier John Rau introduced a bill that will make it against the law for properties to be passed in at a higher price than the reserve, which must be set at no more than 110 per cent of the price acceptable to the vendor, as listed on the contract between the agent and vendor.
That means the vendor will be forced to decide before the property's marketing campaign kicks off just what price they are willing to accept, and stick with it.
While potential buyers won't be privy to a vendor and agent's sales agreement, any mention of a price on marketing materials will give away the reserve price, as the reserve must also be no more than 10 per cent higher than the advertised price.
In announcing the bill, Mr Rau argued "bait pricing" is used by some real estate agents to "unfairly suck in prospective home buyers".
"I have received numerous complaints from homebuyers highlighting the practice of bait pricing," he said. "These laws will stamp out bait pricing and give home buyers an even playing field."
"The government believes that the most effective way of eliminating the practice of bait pricing is to create a nexus between the price sought by, or acceptable to, the vendor and marketing a property based on that price.
"The expectations of the purchaser will be realistically met when the auction of a property is based on advertising that reflects the genuine selling price of the vendor."
Mr Rau rejected the notion that the laws would be unfair to home sellers.
However, the Real Estate Industry of South Australia's general manager of communications Emma Slape argues the changes will disadvantage vendors and scare homeowners away from holding auctions.
"If they have put down that they will accept $500,000 on the day of listing the property, and they've had really strong demand for the property, and they're thinking perhaps we would be able to get $600,000 they won't be able to do that under the laws," Ms Slape says. "They're limited to making that reserve no higher than $550,000 [for example].
"You need two parties to negotiate and we feel that one party is getting their hands tied behind their backs."
Friday, October 26, 2012
Pitfalls in valuing properties for sale
With all the information available on past sales and for sale properties, this sounds easy. We now have agents with no area experience offering valuations and even have banks spruiking online valuations, but BEWARE!. Basing valuations on this raw data alone, eg, no of bedrooms, bathrooms, living rooms, block size, etc is only the basic beginning of valuing a home.
These valuations make little allowance for property ambience, room sizes & layout, style, quality of finish, fittings or landscaping, interior light, etc, etc, etc.
A client reports taking advantage of an NAB offer & received an 11 page report chock full of sales history for the suburb covering 218 sales from $2.3 m to $210,000 and included the property on market history in excess of $1m. It happens to have 7 bedrooms, 5 bathrooms on 1,126 sm block & NAB said “Probable Value Range - $415,000 to $475,000”. Now this is an extreme example, but illustrates the point.
Auctions invariably in this area and in this market gives only a skewed view of buyer price feedback as there is very limited acceptance of the process. This means the bulk of bidders are those seeking a bargain, cashed up to drive prices down and seeking a distressed sale, egged on of course by very price aggressive marketing by the agencies. You only need to look at some of the price outcomes to be convince dof this.
The only way you will receive an accurate valuation is to talk to your area expert agent who will know the ins & outs of all comparable sales, which one had termites, which ones were financially distressed sales, those that were a wreck internally, etc. He/she will know this from having been in many of the properties, assessed all the photos online as part of ongoing competitive market analysis, spoken with buyers in the area who have been through open homes – this process is very time consuming but builds up a huge body of relevant knowledge – those agents who go everywhere cannot hope to offer such knowledge and rely on commission discounting or some sort of gimmick that does nothing to sell your home.
These valuations make little allowance for property ambience, room sizes & layout, style, quality of finish, fittings or landscaping, interior light, etc, etc, etc.
A client reports taking advantage of an NAB offer & received an 11 page report chock full of sales history for the suburb covering 218 sales from $2.3 m to $210,000 and included the property on market history in excess of $1m. It happens to have 7 bedrooms, 5 bathrooms on 1,126 sm block & NAB said “Probable Value Range - $415,000 to $475,000”. Now this is an extreme example, but illustrates the point.
Auctions invariably in this area and in this market gives only a skewed view of buyer price feedback as there is very limited acceptance of the process. This means the bulk of bidders are those seeking a bargain, cashed up to drive prices down and seeking a distressed sale, egged on of course by very price aggressive marketing by the agencies. You only need to look at some of the price outcomes to be convince dof this.
The only way you will receive an accurate valuation is to talk to your area expert agent who will know the ins & outs of all comparable sales, which one had termites, which ones were financially distressed sales, those that were a wreck internally, etc. He/she will know this from having been in many of the properties, assessed all the photos online as part of ongoing competitive market analysis, spoken with buyers in the area who have been through open homes – this process is very time consuming but builds up a huge body of relevant knowledge – those agents who go everywhere cannot hope to offer such knowledge and rely on commission discounting or some sort of gimmick that does nothing to sell your home.
Let us not forget the dining room
Rarely today do we find a formal dining room, the eating area has become assimilated as part of the open plan living combination of dining, kitchen & lounge room.
If we have two separate areas, it is the lounge or a games/media roomThe formal, standoffish dining space has become very casual, comfortable & adjacent to the kitchen to meet today's relaxed approach
This often means reducing the dining area to table & chairs plonked in a space with no presence or style.
To create the right atmosphere, try to create a room within a room to draw people to the defined space.
Try introducing a nice soft rug underneath the dining table to help liven up the space, add paintings or a mirror on a blank wall, perhaps paint it a feature colour.
A small bureau adds storage &interest with a lamp & display items.
A low hanging pendant will generate a more formal atmosphere.
When entertaining, use of candles as a centre piece &/or a formal vase arrangement will add dramatic effect.
If we have two separate areas, it is the lounge or a games/media roomThe formal, standoffish dining space has become very casual, comfortable & adjacent to the kitchen to meet today's relaxed approach
This often means reducing the dining area to table & chairs plonked in a space with no presence or style.
To create the right atmosphere, try to create a room within a room to draw people to the defined space.
Try introducing a nice soft rug underneath the dining table to help liven up the space, add paintings or a mirror on a blank wall, perhaps paint it a feature colour.
A small bureau adds storage &interest with a lamp & display items.
A low hanging pendant will generate a more formal atmosphere.
When entertaining, use of candles as a centre piece &/or a formal vase arrangement will add dramatic effect.
Wednesday, October 3, 2012
Decorating with mirrors
Mirrors should not be prisoners of the bathroom. Yes they are necessary and vital for any bathroom, but what about using mirrors in other parts of the house?
A mirror is the perfect substitute for a canvas. If you do not want to base your room around artwork, or feel as if more colour would be disastrous, a mirror is a fantastic addition to a blank wall in any living room, bedroom or corridor.
The benefits? It opens up the room making any sized area feel and look larger. An important feature for a small room, a mirror can make the room feel less cramped and lighten up the area.
Even in a large room this will illuminate the space – you will feel as if the room goes on forever.
Maintain the colour scheme by framing the mirror in a texture and shade that compliments the rest of the room. A mirror works best when it sits above something like a cabinet or bed. It anchors the mirror to a defined space and centres the room better.
The benefits? It opens up the room making any sized area feel and look larger. An important feature for a small room, a mirror can make the room feel less cramped and lighten up the area.
Even in a large room this will illuminate the space – you will feel as if the room goes on forever.
Maintain the colour scheme by framing the mirror in a texture and shade that compliments the rest of the room. A mirror works best when it sits above something like a cabinet or bed. It anchors the mirror to a defined space and centres the room better.
Think Local - Coolum property now in undersupply
Michael Matusik recently analysed the Australian housing market and determined that for detached housing, the 12 months to August 20012, the number on the market increased by 3%. This would seem to indicate a continuation of a buyer`s market.
However, the picture varies considerably by state and region as the attached newsletter highlights, and in all this it clearly shows Post Code 4573 Coolum as having the 3rd biggest drop and being now in an undersupply situation despite the Sunshine Coast as a whole being tagged as in oversupply. So much for the value of a national, or even regional, analysis being meaningful!
All this confirms my earlier advices from analysis of my farming territory of some 2,000 properties that Coolum is now a “hot spot” in a balanced market – well presented and properties well priced and marketed by the local expert are selling very quickly as the example in my newsletter of 66 Lagoda Drive, a magnificently presented property selling within 5 days for list price illustrates. (Note – tip for interior decorating in a following post shows how mirrors can be used to open up all rooms in the house – presentation is so critical today in marketing)
For further detail on Mount Coolum activity, my website at www.geoffgrover.com.au details all my recent sales and current listings. Keep an eye on this site for coming sales and new listings – several are about to hit websites.
In detail, Matusik found an:
* undersupply of detached houses for sale in Sydney(2%), regional NT (2%), Darwin(3%) and Perth(3%).
* Detached housing markets at equilibrium are: Adelaide(4%),Brisbane(4%),Melbourne(4%),Hobart(5%) and regional NSW (6%).
* Oversupplied detached housing markets are regional WA (especially the Margaret River area) (14%), regional Victoria (9%), regional Qld (including the Gold and Sunshine Coasts and Cairns) (8%), regional SA (7%) and the rest of Tassie 7%
But where are the stand-out post codes? And where are the shockers – the spots where housing supply has increased, and sometimes by lots?
The table shows the Top Ten Winners and Losers
Again highlighting the dangers of taking too broad a view, whilst Melbourne as a whole is regarded as being in equilibrium, 7 of the top ten postcodes revealing increases in stock are outer Melbourne suburbs, although paradoxically 2 of the top ten postcode stock drops were also outer Melbourne suburbs, namely Werribee South and Wyndham Vale Portland, the very busy port in Victoria, had by far the biggest drop.
Source – Matusik Missive September 25th and September 26th, post code table from SQM Research.
For further detail on Mount Coolum activity, my website at www.geoffgrover.com.au details all my recent sales and current listings. Keep an eye on this site for coming sales and new listings – several are about to hit websites.
However, the picture varies considerably by state and region as the attached newsletter highlights, and in all this it clearly shows Post Code 4573 Coolum as having the 3rd biggest drop and being now in an undersupply situation despite the Sunshine Coast as a whole being tagged as in oversupply. So much for the value of a national, or even regional, analysis being meaningful!
All this confirms my earlier advices from analysis of my farming territory of some 2,000 properties that Coolum is now a “hot spot” in a balanced market – well presented and properties well priced and marketed by the local expert are selling very quickly as the example in my newsletter of 66 Lagoda Drive, a magnificently presented property selling within 5 days for list price illustrates. (Note – tip for interior decorating in a following post shows how mirrors can be used to open up all rooms in the house – presentation is so critical today in marketing)
For further detail on Mount Coolum activity, my website at www.geoffgrover.com.au details all my recent sales and current listings. Keep an eye on this site for coming sales and new listings – several are about to hit websites.
In detail, Matusik found an:
* undersupply of detached houses for sale in Sydney(2%), regional NT (2%), Darwin(3%) and Perth(3%).
* Detached housing markets at equilibrium are: Adelaide(4%),Brisbane(4%),Melbourne(4%),Hobart(5%) and regional NSW (6%).
* Oversupplied detached housing markets are regional WA (especially the Margaret River area) (14%), regional Victoria (9%), regional Qld (including the Gold and Sunshine Coasts and Cairns) (8%), regional SA (7%) and the rest of Tassie 7%
But where are the stand-out post codes? And where are the shockers – the spots where housing supply has increased, and sometimes by lots?
The table shows the Top Ten Winners and Losers
Source – Matusik Missive September 25th and September 26th, post code table from SQM Research.
For further detail on Mount Coolum activity, my website at www.geoffgrover.com.au details all my recent sales and current listings. Keep an eye on this site for coming sales and new listings – several are about to hit websites.
Sunday, September 16, 2012
First Home Owners Grant (FHOG)
State Budget impacts Real Estate Industry: First Home Owner Grant abolished & Transfer Duty increased
The following is a summary of the changes.
1. Changes to First Home Owner Grant
• Currently, eligible buyers purchasing their first home worth less than $750,000 (whether an existing or newly constructed dwelling) are entitled to receive the First Home Owner Grant (FHOG) of $7,000.
• First home buyers purchasing existing dwellings will have until 10 October 2012 to finalise their contract to be eligible for the existing $7,000 FHOG. The contract must be dated on or before 10 October 2012.
• From 11 October 2012, there will be no grant available to first home buyers purchasing existing dwellings.
• From 12 September 2012, first home buyers purchasing newly constructed or off -the-plan dwellings will be eligible for the First Home Owner Construction Grant (FHOCG). The FHOCG is a grant of $15,000
• The following eligibility criteria applies to the First Home Owner Construction Grant:-
(i) the property must become the Buyer's principal place of residence within one year of taking ownership.
(ii) the property must be the Buyer's principal place of residence for at least six months.
(iii) the Buyer must not dispose of all or part of the property within one year after the Buyer starts to occupy the residence as the Buyer's home.
(iv) The property must be bought or built at a value under $750,000.
2. Top Transfer Duty rate increased
The rate of transfer duty payable for property worth $1,000,000 or more will increase from $5.25 for every $100 over $980,000 to $5.75 for every $100 over $1,000,000.
An example of the increase is illustrated below, although this is not likely to worry too many buyers I iur Coolum/ Marcoola market
Home purchase of $1,200,000
Existing duty: $41,500
New duty: $42,350*
The transfer duty rate changes will come into effect once the legislation receives final assent. At this stage, therefore,it is not known when the new transfer duty rates will commence.
* Note, this calculation is based on the proposed changes which are not yet law. It is for indicative guidance only and should not to be relied upon as legal advice.
The following is a summary of the changes.
1. Changes to First Home Owner Grant
• Currently, eligible buyers purchasing their first home worth less than $750,000 (whether an existing or newly constructed dwelling) are entitled to receive the First Home Owner Grant (FHOG) of $7,000.
• First home buyers purchasing existing dwellings will have until 10 October 2012 to finalise their contract to be eligible for the existing $7,000 FHOG. The contract must be dated on or before 10 October 2012.
• From 11 October 2012, there will be no grant available to first home buyers purchasing existing dwellings.
• From 12 September 2012, first home buyers purchasing newly constructed or off -the-plan dwellings will be eligible for the First Home Owner Construction Grant (FHOCG). The FHOCG is a grant of $15,000
• The following eligibility criteria applies to the First Home Owner Construction Grant:-
(i) the property must become the Buyer's principal place of residence within one year of taking ownership.
(ii) the property must be the Buyer's principal place of residence for at least six months.
(iii) the Buyer must not dispose of all or part of the property within one year after the Buyer starts to occupy the residence as the Buyer's home.
(iv) The property must be bought or built at a value under $750,000.
2. Top Transfer Duty rate increased
The rate of transfer duty payable for property worth $1,000,000 or more will increase from $5.25 for every $100 over $980,000 to $5.75 for every $100 over $1,000,000.
An example of the increase is illustrated below, although this is not likely to worry too many buyers I iur Coolum/ Marcoola market
Home purchase of $1,200,000
Existing duty: $41,500
New duty: $42,350*
The transfer duty rate changes will come into effect once the legislation receives final assent. At this stage, therefore,it is not known when the new transfer duty rates will commence.
* Note, this calculation is based on the proposed changes which are not yet law. It is for indicative guidance only and should not to be relied upon as legal advice.
Monday, September 3, 2012
SOLD -but at what price!
The key measure for a seller in this market is not the time taken to sell, but the price obtained. Better to get the right price with the right prospect, rather than best ”instant” price.
In a buyer`s market, such as that which has prevailed and been prolonged by very aggressive price marketing by many agencies, this invariably means buyers offer very low prices and sellers under pressure think it is the market value & accept.
This process is driven very much by a local upsurge in the auction process with use of price leading copy such as “Bargain hunters welcome”, ”Make an offer” – it is no co-incidence that auction clearance rates are up & sale price levels have “dived’ in the last 12 months both in Mt. Coolum and the Sunshine Coast per the domain.com.au graph
Never has it been as important as now to utilize an experienced agent with extensive marketing & negotiation skills. Experienced territory agents know the likely price range for properties, market the features & work hard to negotiate a win - win result.
The role of a real estate agent is to maximize the sell price for the seller, bearing in mind the market conditions – anybody can sell a property at give-away prices.
Owner-occupiers, the overwhelmingly buyer demographic, pay for value relative to their living needs. They do not buy only on price.
Investors are bargain hunters by nature who buy on price & return, attracted to price driven marketing.
Significant asset sales demand the most professional services!
In a buyer`s market, such as that which has prevailed and been prolonged by very aggressive price marketing by many agencies, this invariably means buyers offer very low prices and sellers under pressure think it is the market value & accept.
This process is driven very much by a local upsurge in the auction process with use of price leading copy such as “Bargain hunters welcome”, ”Make an offer” – it is no co-incidence that auction clearance rates are up & sale price levels have “dived’ in the last 12 months both in Mt. Coolum and the Sunshine Coast per the domain.com.au graph
Green - Mount Coolum - Blue - Sunshine Coast
Never has it been as important as now to utilize an experienced agent with extensive marketing & negotiation skills. Experienced territory agents know the likely price range for properties, market the features & work hard to negotiate a win - win result.
The role of a real estate agent is to maximize the sell price for the seller, bearing in mind the market conditions – anybody can sell a property at give-away prices.
Owner-occupiers, the overwhelmingly buyer demographic, pay for value relative to their living needs. They do not buy only on price.
Investors are bargain hunters by nature who buy on price & return, attracted to price driven marketing.
Significant asset sales demand the most professional services!
Friday, August 17, 2012
Current auction sales performance - Mount Coolum
Generally speaking, the auction process has limited acceptance on the Sunshine Coast. Historically, clearance rates as measured by pre and at auction sales hovers around 20%, a very low rate.
Only 1 in 5 sell without a price, which is supposed to be the big advantage of the process.
Sales results in Mount Coolum have received a big boost over the last 12 months from the long term average as detailed below. This is based on a small number of sales, mainly because of distressed sales in the new up market estate of The Boardwalk, and very aggressive price marketing of the agencies involved.
The key is not that a sale took place, but at what price?
Marketing has consisted of headlines designed to attract the "scavenger" and "bargain hunter" familiar with the process and cashed up, a very limited segment of the market and not offering true market sentiment.
To advertise aproperty with headlines such as "Bargaiin hunters welcome", "Owners seek immediate action", "Home required to be rescued from neglect", "Make an offer", "Interstate owner says sell" all scream give-aways, which is what eventually occurs.
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Find all about Mount Coolum real estate from the local expert
Only 1 in 5 sell without a price, which is supposed to be the big advantage of the process.
Sales results in Mount Coolum have received a big boost over the last 12 months from the long term average as detailed below. This is based on a small number of sales, mainly because of distressed sales in the new up market estate of The Boardwalk, and very aggressive price marketing of the agencies involved.
Marketing has consisted of headlines designed to attract the "scavenger" and "bargain hunter" familiar with the process and cashed up, a very limited segment of the market and not offering true market sentiment.
To advertise aproperty with headlines such as "Bargaiin hunters welcome", "Owners seek immediate action", "Home required to be rescued from neglect", "Make an offer", "Interstate owner says sell" all scream give-aways, which is what eventually occurs.
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Wednesday, July 25, 2012
Create the right balance
People struggle with using colour in home decoration, but the impact can be achieved without being garish.
* To achieve a successful balance, the use of natural rugs or dark-stained furniture will ground the colour scheme.
* When selecting cushions, choose a varying colour palette & mismatch the patterns. Mismatched cushions look best on a plain fabric sofa or a stripe or small pattern.
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* Invest in beautiful paintings
* Create unique tablescapes on coffee, hall & sofa tables using your collection, for example, family photographs, books, old boxes or vases of flowers.
* Most of all, buying things you love will create their very own unique thread that joins them together.
* To achieve a successful balance, the use of natural rugs or dark-stained furniture will ground the colour scheme.
* When selecting cushions, choose a varying colour palette & mismatch the patterns. Mismatched cushions look best on a plain fabric sofa or a stripe or small pattern.
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* With furniture selection, invest in a good quality sofa with a classic shape that won`t date & can be recovered over time.
* Mix antiques & modern furniture to create a layered, interesting & unique look.
* Create unique tablescapes on coffee, hall & sofa tables using your collection, for example, family photographs, books, old boxes or vases of flowers.
* Most of all, buying things you love will create their very own unique thread that joins them together.
The ‘goss’ on Coolum area sales
House for sale statistics in our local, established area show a significant tightening of house stock availability, which strongly suggests we are moving away from the strong buyer “discount” market of recent times to a more balanced market.
The situation with high rise apartments/units is quite different, due mainly to pressures on the higher investor ownership & their general unsuitability for owner-occupiers.
This class of property ownership sees much better use of capital elsewhere, and often this divestment is more of a financial necessity than a desire!
Over many years I have tracked statistics for the same house population of some 2.200 in Mount Coolum and Yaroomba, & a range of between 3% to 4% of the housing population has generally been on the market at any one point in time. Over 4%, or under 3% historically means market change skewing towards either the benefit of the buyer or the seller.
By contrast, It got to 4.5% last year, is now down to 2.15%, this is a reduction of over 50% of houses on the market.
Put simply, the choice for buyers is much diminished, which theoretically should lead to more realistic offers from buyers and potential sellers now looking to make that move.
This change in the older, established areas is overlooked by the casual observer as relatively new estates such as The Boardwalk and Peregian Springs continue to suffer from oversupply at higher prices.
These developments were fuelled by builder and investor “spec” home construction, believing prices would continue to rise exponentially, & also to benefit from high depreciation allowances during the first 5/7 years of a new building.
The cream of depreciation has been claimed, prices have fallen well below replacement cost & financial stress has kicked in, hence properties are readily available in these estates
The combination of high stock availability, very low prices on record & price marketing by leading agencies, , eg, “bargain hunters welcome”, “owner must sell”, “make an offer” continues to shape buyer expectations downwards in these estates.
Sooner or later the penny will drop with buyers as to the true value of the more spacious, well presented, older, established home between $400,000 and $500,000, &those buyers early enough to recognize the opportunity will buy, those that don`t will miss out because this stock is in very limited supply.
Wednesday, July 18, 2012
Coast $4b development
Clive Palmer has detailed "jaw dropping" plans to spend up to $4 billion to create an international hotel, casino and tourism destination on the Sunshine Coast on a par with world-class facilities in Dubai.
Palmer recently puchased the iconic Hyatt Coolum Resort, which is the largest employer in the immediate region, removing the Hyatt from management and renaming the resort as the Palmer Coolum Resort. Many jobs have been lost in the short term as he strives to stem the massive losses apparently incurred durng the 20 year Hyatt reign
The billionaire met Sunshine Coast Council Mayor Mark Jamieson for almost three hours recently to reveal his plans which might include possible development of a chairlift or skylink to Mt Coolum.
Bill Schoch, general manager of the Palmer Coolum Resort, is reported as saying the "multifaceted" plans involve a $3 billion to $4 billion investment which would put the Sunshine Coast on the international map.
Mr Palmer apparently wants to make a major destination of world-class significance at Coolum similar to developments in Dubai and it will be on a massive scale but it will all be done with local sensitivity according to Mr Schoch.
Mr Schoch said it would be some months before the plans were made public because Mr Palmer wanted to ensure his plans were likely to be approved by various levels of government before he announced them.
Palmer is known as an eccentric, vis a vis his tourist project to develop a Titanic replica, but as a multi-billionaire he has very deep pockets and everything he talks about must be taken at face value.
Palmer recently puchased the iconic Hyatt Coolum Resort, which is the largest employer in the immediate region, removing the Hyatt from management and renaming the resort as the Palmer Coolum Resort. Many jobs have been lost in the short term as he strives to stem the massive losses apparently incurred durng the 20 year Hyatt reign
The billionaire met Sunshine Coast Council Mayor Mark Jamieson for almost three hours recently to reveal his plans which might include possible development of a chairlift or skylink to Mt Coolum.
Bill Schoch, general manager of the Palmer Coolum Resort, is reported as saying the "multifaceted" plans involve a $3 billion to $4 billion investment which would put the Sunshine Coast on the international map.
Mr Palmer apparently wants to make a major destination of world-class significance at Coolum similar to developments in Dubai and it will be on a massive scale but it will all be done with local sensitivity according to Mr Schoch.
Mr Schoch said it would be some months before the plans were made public because Mr Palmer wanted to ensure his plans were likely to be approved by various levels of government before he announced them.
Palmer is known as an eccentric, vis a vis his tourist project to develop a Titanic replica, but as a multi-billionaire he has very deep pockets and everything he talks about must be taken at face value.
Friday, June 29, 2012
New international terminal opens at Sunshine Coast Airport
Sunshine Coast Council Newsletter - 28TH June 2012
Sunshine Coast Airport has begun a new chapter with the opening of its international terminal yesterday, just in time to accept the first-ever international scheduled passenger flight touching down on Sunday 1 July, from New Zealand.
The new terminal opens the way to further develop relationships with world tourism and business markets, to attract new business to the region and to assist existing businesses to expand and to export.
Recently completed works have added an extra 500 square metres to the domestic and international terminals by using cleverly designed moveable walls. The walls separate the international/domestic areas while international flight numbers are limited initially, and can be switched from domestic to international use and vice versa quickly and efficiently.
Sunshine Coast Airport is one of the three principal drivers of the Coast’s economy, along with Maroochydore city centre and the Sunshine Coast University Hospital precinct.
The latter is a $2 billion dollar development, and the portents for the Sunshine Coast business property market, including Coolum property and real estate is significant.
Further details on these developments may be found at http://www.coolumproperty.com.au/
Thursday, June 21, 2012
Don`t spend a fortune updating a tired bathroom
*Add to the illusion of space with a frameless shower screen & mirror
*Paint over tired tiles
Prep with a de-glossing liquid, prime & finish with specialist products, or professionally finish with thermo-glazing surfacing.
*Swap dated tapware for gleaming chrome
*Tired bath?
Try re-enamelling - done in situ in a day & surfaces will gleam, or replace with a modern style free standing one
*Clean discoloured grout
Ceramic tiles don`t wear but grout does. Clean the grout & seal, or if flaking & cracked, have replaced.
* Update your showerhead
An overhead rain-style showerhead simulates a downpour and is a popular option.
*Install a new toilet - go wall-hung for the latest look or a classic back-to-wall-close coupled toilet.
*New look vanity - keep the carcase but opt for new doors and drawer fronts in 2 pac with new handles & a reconstituted stone top.
Tuesday, June 5, 2012
Auctions just not accepted in Qld
Interesting PRD Nationwide survey result recently published ties in with earlier surveys re the very limited acceptance in Qld. of listing without a price, whether that be POA or the auction process. In Qld, only 25% of sales are conducted via auction.(Sunday Mail survey September 2011 found in Newsroom on my website)
Current auctions in the Coolum area are returning very low & in some cases record low prices for those that do sell, perhaps illustrating that only the savvy bargain hunters attend and unsuspecting sellers come to believe prices on offer are the full extent of the wider market. Clearance rates, ie both before and at auction, for houses in the last 12 months Coolum area is 17.8%, for the Sunshine Coast 22.6% (as per domain.com.au advice)
My earlier blog explores this proposition of under-selling, which when coupled with a growing number of distressed sales, forces buyer expectations down and prices lower. Perhaps the most serious impact of this is that valuers, who are under enormous pressure from banks to get values right, are hitting low, taking the low end examples as indicative of a wider market value. These times call for the experienced real estate agent with strong marketing and negotiation skills to bring sense to the sale process and produce a win-win for buyers and sellers.
STOP PRESS - recent media articles available on my website at www.geoffgrover.com.au
"Recent home buyers to find equity magic has vanished" Domain 26th May - the recent history of high price housing growths leading to bumper rises in equity are over for at least 10 years as buyers purchasing in the last 4 or 5 years have found
"Properties with no asking price deter buyers" Real Estate Business May 2012 - properties marketed without a fixed price (read auctions) are negatively affecting the pool of buyers according to a poll by PRD Nationwide with responses mainly from Qld & NSW.
Renovation explosion
The trend to renovate has accelerated greatly in the last decade, the value now accounting for 40% of national residential investment.
Government taxes & costs of moving are forcing this trend by adding on 6% to the value of a property, whilst gov`t taxes & charges add on up to 40% to the cost of a new build.
Kitchens & bathrooms make the biggest impact on buyers.
The HIA found the average cost last year to renovate a kitchen was $20,000, a bathroom about $15,000.
Matusik`s rule of thumb to avoid over-capitalising is to cap spending at about 5% of the property`s value for kitchens, 2% for each bathroom, & 3% for landscaping.
If renovating primarily to sell,consider who is the most likely buyer
Knowing your target market will help to direct the renovation focus to areas that will appeal to potential buyers.
For instance, swimming pools have limited appeal to some because of the maintenance factor.
A property aimed at investors for rental return would benefit from bedrooms with their own bathrooms separated by a central living space. Spend only to ensure an achievable sale price comparable to your area.
Do your homework, call in your local real estate expert for advice.
Over-capitalising occurs when a property has been improved beyond its real estate value.
Michael Matusik, highly respected property analyst, advises that ideally the value of the dwelling should be between 1.5 & two times the value of the land on which it sits
Monday, June 4, 2012
Recent home buyers to find equity magic has vanished
THE sluggish housing market has sparked predictions that the latest generation of home owners will be unable to rely on their home as a key source of higher wealth, as many baby boomers did.
Instead, analysts say people who joined the housing market in the last few years are unlikely to experience the ''magic money machine'' effect of bumper rises in the equity in their homes.
In the late 1990s and early 2000s, house prices more than doubled, a trend that benefited even highly indebted owners. Rising equity - the proportion of the house's value belonging to the owner, rather than the bank - was credited with boosting consumer confidence and spending.
However, analysts say the trend is unlikely to return, with Sydney house prices down 2.6 per cent in the past year and the Organisation for Economic Co-operation and Development this week warning of further risks nationally. The head of research at RP Data, Tim Lawless, said home owners who bought in the last four years would find it much harder to build up equity. December figures from RP Data show 6.4 per cent of home owners had seen the value of their home fall to less than they paid for it. This proportion is likely to increase after recent price falls.
''Realistically, anybody looking to build up wealth and equity in their property needs to have a long-term view. They're not going to be accumulating equity in their property in the current conditions, or over the next couple of years, very quickly,'' Mr Lawless said.
A consultant, Martin North, said his surveys of consumers had found those who bought in the last four years - about a third of home owners - had received little or no capital growth.
''Property was a magic money machine for the last 20 years,'' Mr North said.
''You basically went on at the start with a high mortgage, paid it down, maybe traded up a couple of times, and you ended up with a very significant pool of equity.
''I don't think we're going to see that over the next five to 10 years … which means there is a generation now who won't get the sort of returns from their properties that they were expecting to get.''
Home owners aged between 25 and 34 have the highest proportion of debt to assets, at 63 per cent, statistics from the Reserve Bank show.
However, households are also paying down their mortgages at the fastest pace in years, and most borrowers are making more than the minimum monthly repayment.
This conservatism comes amid predictions house prices are likely to remain subdued. The OECD this week said the high dollar was ''generating substantial uncertainties that could weigh on employment, confidence and growth, with potential negative spillovers on house prices''.
Christopher Joye, an executive director of Yellow Brick Road Funds Management, predicted that over the next 10 years, house price growth would be about half what it had been in recent decades.
''For the last 20 years or so house prices grew by nearly 8 per cent a year, however over the last four years they've only grown by 2 per cent per annum,'' Mr Joye said.
''Over the next 10 years we only expect house prices to track household incomes and we project that disposable household income should grow by about 4 to 5 per cent per annum.''
The underselling syndrome
A tough market demands the need for an agent with superior marketing & negotiating skills to get the best price
Unfortunately, the quick route is often selected, agents simply taking to auction, attracting bargain hunters & low buy prices, not realistic market interest, or persuading sellers (often absentee landlords) to list at give-away prices that sell quickly.
Sales results are reflecting this—we are seeing record low prices due to these strategies & prices continue to be driven down.
I can quote numerous instances of sales that are destroying values. For instance, a villa in a quality & modern townhouse complex in Mt. Coolum recently sold for $340,000, the previous resale low was $365,000. I recently sold several for over $400,000.
In my frequent discussions with valuers, they are shaking their heads at the precedents these strategies are delivering & substantially impacting on bank lending behaviour.
Beware the underselling syndrome biggest & best & certain selling strategies are not necessarily the way to go—investigate all options.
The best option may not be a quick sale, but a sale at your best price – this is obtained by local area experts with extensive buyer reach & strong negotiating skills.
Recently I had 5 opens at Mt Coolum attracting a range of buyers & sold two properties on a win-win basis for both buyer & seller
The best option may not be a quick sale, but a sale at your best price – this is obtained by local area experts with extensive buyer reach & strong negotiating skills.
Recently I had 5 opens at Mt Coolum attracting a range of buyers & sold two properties on a win-win basis for both buyer & seller
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