Geoff Grover – Sunshine Coast Property Talk – June 2013
There is no doubt the housing market displays growing optimism, but media hype & reporting following the release of housing statistics & interest rate announcements can be over the top.
It is the long term that really determines housing trends, such as a moving annual average that smoothes out seasonal influences.
Based on this, what is the direction?
The REIQ report on statistics for the 12 months to March 2013 advises “ Queensland`s market was improving in a sustainable way, our property market continues to record healthier results with positive yearly figures”.
10 of the 12 major Qld regions posted a steady or better median price result over the year.
Michael Matusik confirms the Australian situation is improving, but expresses caution:
* even though interest rates are at 50 year lows, more cuts to balance out the gov`t fiscal consolidation are needed. There is general expectation these are on the way, sooner rather than later.
* housing starts need to rise as these create lots of new jobs and momentum, but we face a structural problem because of the very high taxes and charges on new property.
The HIA estimates these to be 36% of the purchase price of a new home in Brisbane & this issue is simply not being addressed.
*First home buyer numbers are down 30% nationally dollar volume, & in Qld & NSW dramatically down - the re-focusing of grants from second-hand property to a $15,000 grant for building a new property has been a dismal failure.
What about the Sunshine Coast?
Very well positioned. The key is employment growth with major infra-structure projects such as the Horton Park CBD development, the Sippy Downs Hospital complex & the huge airport upgrade, plus others.
This growing activity will create a very strong second home buyers market looking for established homes.
You can never rule out any demographic, but it is owner-occupiers who are leading the way & expected to continue doing so.
Investor numbers are slowly growing, but First Home Buyers will continue to lag way behind until the gov`t addresses the structural issues highlighted
Geoff Grover
Coolum Beach Realty
Mobile 0414 337 402
geoff@coolumbeachrealty.com.au
www.geoffgrover.com.au
Wednesday, May 29, 2013
Monday, April 29, 2013
Why are investors back?
They are returning, but the flood gates are not open. The initial interest is because rental yields are on the rise, it is very hard to find a rental property today, and confidence is returning that we are past the bottom in prices, so capital growth, albeit modest, is now seen on the horizon.
Both factors are important to investors- rental yield provides the cash flow to support the investment, capital growth is the real reason to invest long term.
The REIQ December Qtr Gross Rental Yield report shows more than 150 suburbs are on average achieving 5%, and anything less will not attract investors - this does not include purchase , management or maintenance costs, just rental income before deductions.
Qld`s 5 Best Performing Post Codes
Postcode Median Sale Rent Gross Yield
4415 $360,000 $640 9.3%
4184 $130,938 $228 9.0%
4714 $119,500 $201 8.7%
4455 $320,000 $496 8.1%
4825 $371,600 $575 8.0%
What is immediately apparent is that the high rates are mainly unique mining areas or very high rental areas like Woodridge that have variable price growth prospects, and that to get those yields, the buy prices are very low, all well under $400,000.
What does this mean for Coolum?
The most attractive rental propositions will be those between $400- $500,000 bigger type, well presented houses returning around $430 to $480 per week, yields over 5% but under 6% preferably unique growth features as near the beach, offer views or have a high Walk Score.
Reasons? $500+ per week rental is hard to get, renters are better off buying, & whilst an investment buy of $600,000 invariably means a better home with higher depreciation to offset against your tax liability, the cash gap between mortgage payments & rental income widens.
Potential sellers should be aware how astute agents can maximize sell potential by informed marketing & buyer negotiation.- new investors need this assistance.
www.geoffgrover.com.au
Mobile - 0414 337 402
E mail – geoff@mountcoolumrealty.com.au
Thursday, April 18, 2013
Distressed sales mainly in Qld - but NOT on the Sunshine Coast
New figures show property in a dismal state
Sonja Koremans – Courier Mail – 18TH April 2013
ALMOST a quarter of all properties advertised in Australia in the First Qtr to March 2013 are distressed sales, according to alarming new figures.
Editors Note – but not on the Sunshine CoastMount Coolum sales in 2012 were well up, very much auction driven, prices well down, and obviously a function of distressed sales. For the First Qtr, dramatically reduced stocks available for sale has changed the picture.
Right now, buyers are not putting their properties on the market until they see prices driven up – virtually all the distressed sales have been cleared out. Particularly for the lower price points, we almost have a sellers market such is the shortage of stock.
And in stark contrast to reports that Queensland’s real estate sector is back on its feet, the state accounts for the majority of those listings. New figures released by valuation group LandMark White reveal that the sunshine state accounted for a massive 54 per cent of properties advertised by a mortgagee, receiver or liquidator during the March quarter.
And in stark contrast to reports that Queensland’s real estate sector is back on its feet, the state accounts for the majority of those listings. New figures released by valuation group LandMark White reveal that the sunshine state accounted for a massive 54 per cent of properties advertised by a mortgagee, receiver or liquidator during the March quarter.
The Gold Coast recorded the highest number of distressed property advertisements in the country with 74 per of its listings made by a mortgagee, receiver or liquidator in the three months to March 31.They included big-ticket items such as the Marina Mirage marina and Hope Harbour marina.
Nationally, most receiver sales were in regional areas, with the highest number of distressed listings during the quarter in the agricultural sector. Residential property was next highest. LandMark White found that almost 23 per cent of properties advertised in Australia during the quarter were listed by a mortgagee, receiver or liquidator.Of those, nine per cent were in New South Wales and 15 per cent in Victoria.
Stewart Gilchrist of Colliers' insolvency property services said high-end homes accounted for the majority of distressed sales on the Gold Coast.
“There is still an oversupply of residential in excess of $1 million so those distressed sales would be at the upper end of the market," Mr Gilchrist said.
He said the Glitter Strip’s industrial sector was solid while the commercial market was softer on the back of an oversupply of office space.
“The Gold Coast is development orientated so that could also account for the higher proportion of distressed sales in the region."
He said despite the gloomy figures, confidence had returned to the Gold Coast market.
“Vendors and banks are being more realistic about prices, buyers are back and sales are strong,” he said.
“There is still an oversupply of residential in excess of $1 million so those distressed sales would be at the upper end of the market," Mr Gilchrist said.
He said the Glitter Strip’s industrial sector was solid while the commercial market was softer on the back of an oversupply of office space.
“The Gold Coast is development orientated so that could also account for the higher proportion of distressed sales in the region."
He said despite the gloomy figures, confidence had returned to the Gold Coast market.
“Vendors and banks are being more realistic about prices, buyers are back and sales are strong,” he said.
Nationally, the rural sector accounted for 23 per cent of distressed sales, 19 per cent were residential, 16 per cent industrial and 15 per cent retail.
The majority of receivers’ stocks advertised for sale were in regional rather than metropolitan areas - 80 per cent were located outside capital cities.
The majority of receivers’ stocks advertised for sale were in regional rather than metropolitan areas - 80 per cent were located outside capital cities.
For the fourth time in six quarters, Queensland accounted for the greatest number of distressed properties for sale nationally.
NSW saw the most positive change, as only seven per cent of all properties advertised in that state were listed by a receiver or mortgagee - a record low. By comparison, the proportion in the same quarter of 2012 was 31 per cent.
Although the distressed ratio in Queensland dropped by 6 per cent, it remains stubbornly high at 39 per cent of all property advertisements in the state. Victoria saw the smallest improvement in the distressed ratio, with a drop from 20 per cent to 19 per cent, which meant that for the first time in the series, Victoria had a higher ratio than NSW.
Friday, April 5, 2013
The Sunshine Coast Recovery Cycle
In recent times analysts have come to re-define the property cycle into 4 phases: boom, bust, recovery, stabilization.A recovery market is characterized by 5 key features according to leading analyst Michael Matusik - rising sales - a return to price growth, albeit usually quite mild - improving rental yields - more building activity - a more equal market between buyers & sellers.
We showed last month that house sale volumes had increased in the Mt.Coolum area, although prices were down. The table confirms that volumes for houses, apartments and land were all up for the whole Sunshine Coast 2012 over 2011.
Some of the recovery features are in place, sales up & low levels of stock moving to a balanced market, so we are clearly off the bottom, although not far from it.
Matusik believes that the Sunshine Coast is one of several Queensland regions that are now “knocking on the door to recovery”. These are very general assessments. that do not address segment differences.
We showed last month that house sale volumes had increased in the Mt.Coolum area, although prices were down. The table confirms that volumes for houses, apartments and land were all up for the whole Sunshine Coast 2012 over 2011.
Some of the recovery features are in place, sales up & low levels of stock moving to a balanced market, so we are clearly off the bottom, although not far from it.
Matusik believes that the Sunshine Coast is one of several Queensland regions that are now “knocking on the door to recovery”. These are very general assessments. that do not address segment differences.
Volume Increases - Sunshine Coast
These are reflected in the amount of stock on the market.
Housing stock is very tight.
The apartment market has high numbers for sale as long term investors look to realise capital gains or losses from purchases made in earlier years as they recognise extensive periods ahead of slow growth in the property cycle.
The luxury apartment market is the last sector to recover & requires massive price adjustments to move stock as evidenced on the Gold Coast & locally, eg the Coolum Seaside 5 Star liquidation
Analysis by Geoff Grover, Mr Mount Coolum Real Estate
Coolum Beach Realty
Mobile 0414 337 402
April 2013
Monday, March 4, 2013
Why do agents insist on not listing a property at a price?
Respected journalist and well know funny man Mike O`Connor in thie weeks edition (March 2-3 2013) of the Courier mal QWEEKEND lambasts the practice with a story of his own experience and asks the cogent question as to how many buyers walk away in fruestration because they ar enot prpeared to play the real estate game - talk about road rage, this is property range to the max!
The journey began, like so many of life's adventures, in bed. It was Saturday morning, the best time of the week, and I was stretched out with my head propped against the pillows. I'd been downstairs and returned with tea and toast and we were both reading the 'newspapers.
"That's nice," said my partner, an observation I acknowledged with a grunt meant to indicate: "Leave me alone. I'm reading".
"What do you think?" she persisted, so I looked up and saw a photograph of a house. "Very nice," I said and went back to reading."We should have a look," she said. I should have replied: "Never! Madness lies that way", but I was drugged by the bliss of the morning and surrendered too easily.
"Why?" I said, when we pulled-up at the address, "are we looking at a house which is for sale when we have no plans to move?"
"Just curious," she said. - - --
"I suppose there's no harm in looking," I said, words which, along with "Keep reversing. There's plenty of room"- and '1 didn't know you were pregnant", can presage disaster.
It was a very, pleasant house, closer to the city than where we are and with the requisite number of bedrooms. How much? Silly me. No-one puts a price on a house in Brisbane any more. It's like a television-quiz show. You have to guess how much is being asked-. Offer too little and you get the "I think you're looking in the wrong suburb" - look, too much and the agent will tie you to - a chair and run and fetch the owner.
When I've asked the price of properties, I've been told how much the one up the road sold for and how much they got for the one across the street, but never the price being asked for the one in which we are standing. It's a secret between the agent and the owner and is not to be shared with people who might be interested in buying. I presume this is because they know what it's worth but refuse to utter the figure in the hope that someone will come and offer them more.
I wonder how any potential buyers walk away in frustration because they are not prepared to play the great real estate guessing game? If you buy a car it has a price. If you book a hotel room, it has a price. If you buy a suit, you know how much is being asked, but not with houses.
It's irritating but we're on the treadmill now, it one moment of weakness - "it can't hurt to look - --being enough to trigger a low-level addiction to house inspections. You begin thinking that it might actually be-nice to move closer to the city and the new surrounds would somehow be life-changing. Once you've looked at one house, you have to - look at more.
Why? To compare. "But we're not moving," I insist. "But we should know what's around if we do decide to move," she replies.
Saturday, March 2, 2013
The Twilight Zone - Sunshine Coast property market March 2013
There is no doubt the market is transitioning from a buyers market to a balanced market as property numbers on the market generally fall below traditional levels & interest rates fall, but many still play to the extremes, we are neither night nor day.
The latter days of 2011/early 2012 with property numbers on market ballooning due to financial pressures & investor bailout had the unfortunate result of some very low sale results registering.
Aggressive agency price advertising did & still does play a role in this, as a perusal of advertised copy will show - make an offer, must sell, seller sacrifices, etc, is all the go.
Professional agents promote property features & benefits to negotiate a realistic result, which is largely not happening today.
The latter days of 2011/early 2012 with property numbers on market ballooning due to financial pressures & investor bailout had the unfortunate result of some very low sale results registering.
Aggressive agency price advertising did & still does play a role in this, as a perusal of advertised copy will show - make an offer, must sell, seller sacrifices, etc, is all the go.
Professional agents promote property features & benefits to negotiate a realistic result, which is largely not happening today.
Price advertising helped create a low bar level that buyers took as the norm, and many still do.
Conversely, many sellers are still being unrealistic in expecting prices way above history, anticipating prices are about to soar .
Conversely, many sellers are still being unrealistic in expecting prices way above history, anticipating prices are about to soar .
No wonder many are confused!
This is the time both sellers and buyers need the services of a local expert highly experienced in marketing & negotiation, to cut through to true value.
Statistics illustrate the recent journey of Mount Coolum house sales.
Note: median averages can be misleading
Source - domain.com.au and RPData
Number of sales are up, values are down, auction clearances are up, you draw your own conclusions.
It is not the number of sales done, but the real value to the seller that counts.
It is not the number of sales done, but the real value to the seller that counts.
My record stands as delivering top results to buyers and sellers over an extended period in Mt. Coolum & beyond with marketing & negotiating skills.
Laminates ain`t just laminates no more!
By Geoff Grover – www.geoffgrover.com.auFebruary 2013Another handy property tip from Mr. Mount Coolum Real Estate
High Pressure Laminate (HPL) is a popular choice for benchtops, formed around a thick
substrate to make a laminate benchtop, which can deliver profiles from bullnose
to more contemporary slab-like stone looks.
The look can be enhanced with a range of finishes from textured to high gloss, plus, a range of edging options offer the flexibility to create a colour matched square-edge without the black line at the join.
Printing technology now makes available a myriad of stylish and contemporary
looks in a cost-effective way compared with other benchtop surfaces.
This includes solid colours, woodgrains, modern abstracts & real stone patterns. Laminex recently released 180fx, which replicates the striking colour variations, intricate veining and sophisticated layers of real stone surfaces.
This includes solid colours, woodgrains, modern abstracts & real stone patterns. Laminex recently released 180fx, which replicates the striking colour variations, intricate veining and sophisticated layers of real stone surfaces.
Another new product, Freestyle Curves, is
a 100% thermoformable surface which has transforming capabilities &
seamless edges
At a product launch it was displayed in a ribbon like format (pictured) to illustrate the flexibility it offers.
At a product launch it was displayed in a ribbon like format (pictured) to illustrate the flexibility it offers.
When planning that benchtop update, it
definitely pays to shop around to check out
new technology.
.jpg)
Information
courtesy of The Laminex Group
Wednesday, January 30, 2013
Demographia International property survey thoroughly debunked~!
The paucity of responsible property journalism in Australia has again been revealed by the uncritical acceptance of the 2013 Annual Demographia International Housing Affordability Survey
This survey covers 6 countries only, concluding that in comparison all major markets in Australia continue to be severely unaffordable, reflecting vastly over-priced housing relative to incomes. The least affordable smaller markets were Port Macquarie, Coff's Harbour & the Sunshine Coast.
There were no affordable or moderately unaffordable markets in Australia according to the survey.
Three of Australia`s most experienced property analysts have debunked this conclusion,
How come? - the survey does not allow for:
* Relative size & quality of property - a 250sm house on 800sm block is not the same as a 2 bed 62sm Hong Kong apartment.
* No capital gains tax on your home in Aussie, so it is a big tax incentive & wise investment strategy to build wealth by improving your home.
* No allowance for equity, which in Aussie averages 60% for all owners, including investors
*Income levels are not consistently compared across the survey cities
* Regional areas like the Sunshine Coast support a high proportion of semi/fully retired households that earn less than those fully employed but own expensive properties.
These 3 experts
Michael Matusik
Louis Christopher - SQM Research
Terry Ryder,
All say we do not have overpriced stock EXCEPT for affordability versus status.
Just because a certain percentage of the population cannot afford to buy where they prefer, eg, inner city Sydney rather than the Western Suburbs, beachside, etc, does not mean housing in general is overpriced.
Impact on housing prices?
Put simply, we do not have a price bubble about to burst & plunge prices down further.
Now is an excellent time to buy, but sellers do need an experienced agent to market property features to obtain a win-win price & not fall prey to bargain hunters attracted by price advertising adopted by many agents which requires minimal marketing skills.
Full analyst reports on my website at
http://www.geoffgrover.com.au
under the Newsroom tab
This survey covers 6 countries only, concluding that in comparison all major markets in Australia continue to be severely unaffordable, reflecting vastly over-priced housing relative to incomes. The least affordable smaller markets were Port Macquarie, Coff's Harbour & the Sunshine Coast.
There were no affordable or moderately unaffordable markets in Australia according to the survey.
Three of Australia`s most experienced property analysts have debunked this conclusion,
How come? - the survey does not allow for:
* Relative size & quality of property - a 250sm house on 800sm block is not the same as a 2 bed 62sm Hong Kong apartment.
* No capital gains tax on your home in Aussie, so it is a big tax incentive & wise investment strategy to build wealth by improving your home.
* No allowance for equity, which in Aussie averages 60% for all owners, including investors
*Income levels are not consistently compared across the survey cities
* Regional areas like the Sunshine Coast support a high proportion of semi/fully retired households that earn less than those fully employed but own expensive properties.
These 3 experts
Michael Matusik
Louis Christopher - SQM Research
Terry Ryder,
All say we do not have overpriced stock EXCEPT for affordability versus status.
Just because a certain percentage of the population cannot afford to buy where they prefer, eg, inner city Sydney rather than the Western Suburbs, beachside, etc, does not mean housing in general is overpriced.
Impact on housing prices?
Put simply, we do not have a price bubble about to burst & plunge prices down further.
Now is an excellent time to buy, but sellers do need an experienced agent to market property features to obtain a win-win price & not fall prey to bargain hunters attracted by price advertising adopted by many agents which requires minimal marketing skills.
Full analyst reports on my website at
http://www.geoffgrover.com.au
under the Newsroom tab
Wednesday, November 28, 2012
The Auction Process De-Constructed
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.
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.
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.
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