Greetings from Scoutable and welcome to our April Wrap Up.
I hope you are well and enjoyed your weekend. With Easter behind us and the school holidays over, the market is back in swing with many new properties both on and off market.
April saw 2,905 properties up for auction across Sydney, with an average clearance rate of 64%, Melbourne saw 3,825 properties, with an average clearance rate of 65%, and Brisbane saw 409 properties with an average clearance rate of 48%.
In comparison, April last year saw an average clearance rate of 75% (3,122 properties), 78% (3,644 properties), & 47% (474 properties) respectively.
The above data is showing a drop in clearance rates of 11% in Sydney & 13% in Melbourne for the April year on year comparison. Brisbane is showing a 1% increase.
Across the three cities, there has been an overall drop in the number of properties scheduled for auction although the number of auctions scheduled is slightly skewed due to the fall of Easter in mid April 2017.
Overall we're still finding the Australian property market patchy, however, properties in blue chip locations are still holding their value.
As an investor, it is important to understand the costs of owning a property. An investment property has much the same initial costs as a property you purchase to live in (as reported in Scoutable's February Wrap Up), but there are a few ongoing costs you need to have on your radar.
Ongoing costs include: -
Better to be safe than sorry. You never know what's going to happen, so it’s advisable to have building and landlord insurance. No one wants red wine stained carpet or tenants who won’t pay rent.
Generally this is paid annually and is levied on the owner of the land.
If your property is positively geared, i.e. the total rental income is greater than the cost of owning and managing your property, the difference will be added to your taxable income.
Council rates & strata fees
Council rates vary between councils and the type of property you own so it's important to keep it in mind when purchasing a property and to do your research.
If you own a property within a complex, you will incur strata or company levies. Generally, this is to cover the building maintenance and up keep of common property such as gardens, lifts, pools etc.
Occasionally, special levies may need to be raised for unforeseen building repairs or upgrades so it doesn't hurt to have a few grand put away in case this happens.
The landlord always has to pay for water and/or sewerage services. You are also responsible for paying the water usage unless the property is individually metered in which case, the tenant can be charged.
If you have someone managing your property, then you will need to consider the fees they charge for this service.
Being an owner means you will need to put money towards maintaining the property and ensuring it remains in good condition.
It's important to note that most of these costs can be claimed as a tax deduction and we recommend speaking with a tax professional regarding this.
If you're thinking of buying or investing in Australian property, get in touch to learn about Scoutable services and how we can assist with your property search.
Till next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
WHY MORE PEOPLE ARE SELLING OFF MARKET
AT US$188 MILLION, IT'S A BARGAIN
NSW GOVERNMENT CHANGES TO HOUSING CODE
PROPERTY OF THE MONTH
311-313 BELMONT STREET ALEXANDRIA
Some of our chosen properties focus on a savvy investment opportunity, others on architectural delights. This one comes from the busy bodies within who love to ogle over how the others live. It's the kind of place that gets you talking to strangers at the inspection. It's not the walls, but the art on the walls. Not the state of the kitchen but the vintage oven it encompasses. The parachutes and umbrellas, the hanging gardens and suspended windows. The birdcages. The paint. The multiple Persian rugs.
Externally, this Alexandria warehouse appears as just that - a warehouse on a quiet suburban street.
A ten metre frontage, single roller door and a couple of small barred windows are all that deceives you from the wonderland that is 311-313 Belmont Street. Step in side and you're transported to what feels like a museum or antique store.
Set on 276sqm of land, it features front and rear roller door access, double lock up garage, kitchen, powder room, wet areas (bathroom and laundry), and a giant expanse of space with which the current owner has created a truly unique home, making clear definitions of living zones through out.
Perhaps it's greatest feature is the possibility of what could be next, and with the opportunity to purchase the semi next door (309 Belmont Street), the options are endless.
The warehouse comes with a price guide of $2.1m and the semi is looking to fetch $1.25m.
If you'd like to know more about this property or any others, please get in touch.