Greetings from chilly Sydney and welcome to Scoutable's May wrap up.
There has been a lot of talk lately that the Australian property market is at the top end of the cycle. From the trenches, we are observing a patchy market. Some properties are passing in at auction that were expected to sell well above reserve, while others are selling significantly beyond expectations. The positive is that I’m finding some great deals for my clients.
It's important to note that the property market is cyclical, typically over a ten-year period. It is easy to forget about the recent period of minimal / zero growth from 2008-2012 and only focus on the high growth period over the last four years. When looking at the 10 year averages you will see the Australian market as a whole has reported a more stable average of approximately 10% growth per annum.*
We are hearing a lot of commentary regarding foreign investment and its effects on affordability. The government has outlined plans to ease this issue in the May Budget, by reducing the percentage of ownership for foreign investors in new developments to 50%. It will be interesting to note over the coming months whether this will impact the market.
The key to investing in property, is to never over extend yourself so as to avoid finding yourself in a position where you are forced to sell.
For our investors, we select properties that are in limited in supply, resulting in a good chance to out-perform the market. A property is of limited supply if it is situated in an inner-city location which provides limited development potential (i.e. minimal land for development), or is a character property (limited supply due to age).
For our owner-occupiers, we are searching for your home, so there are many more elements to consider beyond location and supply. It does, of course, make sense to bear these in mind if growth is an important secondary aim.
If you'd like to chat about the market or your upcoming property search, please get in touch.
Until next month,
Kellie Landrey | Principal Buyers Agent
*Source: Core Logic (January 2007 - January 2017)
CORE LOGIC QUARTERLY HOUSING REVIEW
SYDNEY AUCTION MARKET HAS SLOWEST MONTH SINCE JANUARY
PROPERTY OF THE MONTH
47 MYRTLE STREET, CHIPENDALE
Every now and then a property comes on the market that we here at Scoutable get super dreamy about. Sometimes it screams luxury living, other times it's the perfect investment or the ideal flip job. This time round, it could be any and/or all of the above and that's why we love it .....or should we say, "them". Two properties, side by side, on a single title with a four car garage out the back. As individuals, they're nothing to write home about BUT.......as pair, the options are endless.
Currently, they're just your typical inner city Victorian terraces. Each consisting of three bedrooms upstairs, living/dining downstairs, dark and pokey kitchen and bathroom at the back and a small concrete courtyard that's probably freezing in the winter and a mozzie haven in summer. Yes, we've seen it all before.
What sets it apart is the single title, its north facing corner block position, the huge garage with Sheppard Street access and above all, the possibilities. We can't wait to see what someone does with it.