February Wrap Up 2019

Greetings from Scoutable and welcome to our February Wrap Up.

Across Sydney, Melbourne and Brisbane, auction numbers are climbing as the market gets back into swing after the festive break. The data below shows a drop in clearance rates of 10% in Sydney, 21% in Melbourne and 8% in Brisbane, for the February year on year comparison.

February saw 1,766 properties scheduled for auction across Sydney, with an average clearance rate of 58%. Melbourne saw 2,227 properties scheduled, with an average clearance rate of 51%. Brisbane saw 353 properties scheduled for auction with an average clearance rate of 40%. In comparison, February last year had an average clearance rate of 68% (3,141 properties), 72% (3,675 properties) & 48% (1,050 properties) respectively.

Yesterday, I attended the Australian Property Institute’s Property Market Outlook for 2019 seminar. Besa Deda, Chief Economist of St George, provided her overview for the residential market and general economic outlook.

Besa discussed the four main issues effecting the global economy, which included economic and political concerns in the USA, USA/China trade tension, Brexit and Italy falling into a recession. 

Nevertheless, world growth looks good. 

In regards to the Australian Economy, Besa mentioned the economic growth forecast has been cut by the Reserve Bank. Whilst the cash rate is on hold for now, there are scenarios for both a cash rate rise and a cash rate cut towards the end of 2019. Overall consumer spending and the property market are down but business spending is good. She believes there will be a cash rate cut in December 2019.

The housing downturn has been led by Sydney and Melbourne. Sydney is down 12% since the peak 18 months ago, Melbourne is down 8% since the peak 14 months ago. Besa points out that on average there has been a 70% rise in property prices over the last five years, thus a 12% drop is not so bad. She mentioned the downturn is unique as it has not been driven by increased interest rates but more so by Government policy, foreign demand decrease, the Royal Commission, lending conditions and in some areas an oversupply of new build apartments.

Should the Labor party win the upcoming election, there will be a few changes for the property market which will include a change to negative gearing. Labour proposes that negative gearing will only apply to new build properties. All existing investment properties will be grandfathered from this ruling.

Overall, NSW has a good report card from Besa. NSW is the fasting growing state in Australia, supported by infrastructure, spending and population growth.

As always, our advice is that property is a long-term hold. There will always be movement in the market. The key is to not over extend yourself, buy in ‘blue chip’ locations (close to transport, retail facilities, CBD, schools, universities, hospitals) and do your research.

If you would like to discuss the current conditions of the market further, or are thinking of buying or investing in Australian property, get in touch to learn about Scoutable's services and how we can assist with your property search.

Until next month,

Kellie Landrey | Principal Buyers Agent

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IN THE NEWS

THE BANKING ROYAL COMMISSION AT A GLANCE

https://mobile.abc.net.au/news/2019-02-04/banking-royal-commission-report-at-a-glance/10777188?pfmredir=sm

PARENTS STILL UNHAPPY WITH REVISED SCHOOL CATCHMENT

https://www.smh.com.au/national/nsw/a-line-between-us-parents-reject-new-inner-sydney-high-boundaries-20190222-p50znl.html

ROSE BAY HOME SELLS FOR $23.5M AFTER PASSING IN AT AUCTION

https://www.domain.com.au/news/rose-bay-trophy-home-of-stephen-burcher-sold-for-about-23-5m-almost-24m-804101/

PROPERTY OF THE MONTH

16/1 DARLEY STREET DARLINGHURST

February’s property of the month is a great little investment apartment. 16/1 Darley Street Darlinghurst is located 1.9km from Sydney's CBD. Nestled in the back of the block, the apartment is 37sqm internally, comprising open plan kitchen / living / dining, bedroom, bathroom and access to a disused fire escape providing a small alfresco stoop to enjoy your morning coffee.

The price guide is $490,000 with a rental guide of $490 per week. Should these figures be achieved, the resulting gross yield would be 5.2%. The outgoings equate to $4,280 per annum, which covers strata fees, council rates and water rates, resulting in a net yield (before management fees and insurance) of 4.3%.

The complex was built in the 1930s, with 20 apartments in the block. Positioned in a tree lined cul-de-sac, it's within walking distance to restaurant and retail facilities of Darlinghurst, Surry Hills, Paddington and Potts Point and well as St Vincent's Hospital, National Art School, Kings Cross Station and the CBD.

Properties like this provide a great opportunity to enter the Sydney market due to their enviable location and high rental demand ensures they are hardly ever vacant.

It's important to note than some banks require a minimum internal space of 40-50sqm as part of their lending criteria so it's worth shopping around for the right loan if you're looking into purchasing a small property.

If you'd like to know more about this property or any others, please get in touch.

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January Wrap Up 2018

Greetings from Scoutable and welcome to our first newsletter of the year.

We hope you had a great holiday season and wish you the very best for 2018.

The property market (unofficially) kicked off this week. With school back and most people having returned to work, the year is now in full swing. During the holiday period, we've been busy inspecting and stock levels are looking good! We are seeing some great opportunities and looking forward to securing some good deals. 

There are a variety of forecasts concerning the property market for 2018. Some are anticipating a correction in the market following a double digit per annum growth over the last four years. However, a Business Insider article from 24 January argued that once you adjust the recent price data to factor in the usual seasonal declines that occur over summer, it looks like prices are already stabilising (please find link below). 
 
As always, our advice is that property is a long-term hold. There will always be movement in the market. The key is to not over extend yourself, buy in ‘blue chip’ locations (close to transport, retail facilities, CBD, schools, universities, hospitals) and do your research (what infrastructure have been earmarked for the area? schools? public development? zoning changes? etc.). 
 
If you would like to discuss the current conditions of the market further, please get in touch. 
 
Till next month,
Kellie Landrey | Principal Buyers Agentr

IN THE NEWS

THE IVY TO BE REPLACED BY 55 FLOOR HOTEL
https://www.dailytelegraph.com.au/news/nsw/justin-hemmes-confirms-he-will-replace-merivales-ivy-with-an-international-hotel/news-story/1c60970d7f1d3bf82fd4eb36da3fc78f

CONSTRUCTION OF GREEN SQUARE AQUATIC CENTRE KICKS OFF
https://architectureau.com/articles/construction-of-green-square-aquatic-centre-kicks-off/

AUSTRALIA'S HOUSE PRICE CORRECTION MAY ALREADY BE OVER
https://www.businessinsider.com.au/australia-house-price-declines-stabilise-anz-2018-1

PROPERTY OF THE MONTH

3 BAKERS LANE FOREST LODGE

CUTE! CUTE! CUTE! That pretty much sums up this Forest Lodge semi. Set down the end of a quiet lane, this property offers 126sqm of land close to the city with a price guide of $1,000,000.

The existing layout has been stylishly updated to maximise light and space and is easily inhabitable provided you're happy to live a minimalist lifestyle.

Currently, two small bedrooms occupy the front of the house with little to no storage, and should you be happy eating dinner off your lap, the rear of the house offers a delightful airy oasis. A DA approval for renovation means there's a solution in place to rectify some of the spacial issues should you wish to do so.

While we're aware that it's not the palatial home that many of us dream of, nor would it necessarily be suited everyone, we think it's a great opportunity to secure a decent piece of land with scope to future improve, whilst enjoying it's many little charms in the meantime.

The property would make an ideal investment as it's located approximately 3 kilometres from the CBD and is within walking distance to Sydney University, UTS, RPA Hospital and the retail and restaurant hubs of Glebe, Newtown and Broadway. This will ensure a wide pool of potential tenants for the property. At a purchase price of $1,000,000 and an estimated rental of $750pw, the returns would yield approx. 3.9%pa.

If you'd like to know more about this property or any others, please get in touch.

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November Wrap Up

Greetings from Scoutable and welcome to our November Wrap Up.
 
Last weekend, of the 1,431 properties scheduled for auction in Sydney, only 394 of those sold under the hammer. Interestingly, 310 properties were sold prior to auction, 8 sold after, and 317 were passed in. A further 220 were withdrawn. While it may seem dismal, we believe it to be a great market for buyers as the auction climate cools. Melbourne had a fair turnout with a 66% clearance rate whereas in Brisbane, close to 50% were either passed in or withdrawn.

As usual for this time of year, stock levels are dropping with the lead up to Christmas and school holidays. Vendors and agents alike are keen to tie things up before the market completely shuts down - though options may be limited, a perfect time to secure a property for a good price.

The Reserve Bank of Australia decided to keep the official cash rate on hold at 1.5% at its November meeting and is expected to remain at this record low till the latter half of next year according to the OECD (The Organization for Economic Co-operation and Development).

Are you looking to buy or invest? Let us help. We love property and would love to find the perfect one for you.
 
Till next month,
Kellie Landrey | Principal Buyers Agent

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IN THE NEWS

NEW RULING ON DEPRECIATION FOR ESTABLISHED DWELLINGS
http://www.smh.com.au/money/landlords-lose-thousands-in-tax-savings-in-new-bill-20171127-gztdvj.html

ABANDONED REDFERN TERRACE SET TO SELL
https://www.domain.com.au/news/dilapidated-redfern-terrace-that-squatter-tried-to-claim-to-be-sold-by-trustee-20171129-gzucha/

RBA LIKELY TO INCREASE CASH RATE IN SECOND HALF OF 2018
https://www.businessinsider.com.au/rba-rate-hike-oecd-2017-11

PROPERTY OF THE MONTH

7/4 WARATAH STREET RUSHCUTTERS BAY

This one bedroom art deco apartment is situated in an unrestricted company titled building, suiting both first home buyers and investors. The walk up complex was built in the 1930s, comprising 25 apartments, over three levels.

Whilst the apartment is compact, at approximately 35sqm, the layout and leafy outlook certainly give it a sense of space. The property is presented in rentable condition, however, there is plenty of scope to improve with refurbishment of the kitchen and bathroom, and the option to expose the timber floor beneath the carpet.

The property is located next to Rushcutters Bay Park, within walking distance to the CBD (approx. 2km), transport (500m to Kings Cross train station), cafe and retail facilities.

With a  price guide of $600,000, it was snapped up quickly and sold last night for $630,000.

The apartment provides above average potential for capital growth whilst providing solid rental returns.

If you'd like to know more about this property or any others, please get in touch.
 

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June Wrap Up

Greetings from Scoutable and welcome to our June Wrap Up.

We hope you're all keeping warm during these cooler months. Is it really tax time already??

For all our investor friends, find a link below to a great article with some hot tips relating to your investment property at tax time. As a few minor adjustments have been made, it might be worth a read and/or talking to a tax professional.

As mentioned in our recent budget breakdown newsletter, July 1 will bring some changes to the property market.  It will be very interesting to see how the sub $800,000 market is affected with the changes to stamp duty for first home buyers. Will properties just increase in purchase price by the stamp duty concessions? Or will the grant give first home buyers an edge over investors? Time will tell. Further, will the new taxes and changes made to foreign ownership ease the affordability issues in Sydney.

 

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

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April Wrap Up

Good afternoon and welcome to Scoutable’s April Wrap Up.

We hope you all managed to take some time off over the holiday period.

As per usual, Easter brought the property market to a near halt as you'll see in the Auction table below. Anzac Day also kept things relatively quiet but we're starting to see it pick up again.

Scoutable is now preparing for its second trip to Asia. We'll be in Hong Kong and Singapore for a week mid May so if you or someone you know is looking to invest in Australian property, get in touch. We're available to discuss the Australian property market, Scoutable services and how we can assist with your property search.
 
Till next month,
Kellie Landrey | Principal Buyers Agent

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SYDNEY MARKET BACK IN FULL SWING AFTER HOLIDAY BREAK
https://www.domain.com.au/news/sydney-auctions-rise-after-holiday-pause-as-rents-surge/

ASX HEADQUARTERS SOLD FOR RECORD YIELD
https://www.corelogic.com.au/news/home-of-the-australian-stock-exchange-sells

COMPUTER ALGORITHMS TO DESIGN PREFABRICATED DWELLINGS
https://www.dezeen.com/2017/04/24/cover-uses-computer-algorithms-design-prefabricated-dwellings-generative-architecture/?utm_medium=email&utm_campaign=Daily%20Dezeen%20Digest&utm_content=Daily%20Dezeen%20Digest+CID_d258c241f3c7bb0509ccc60b4b1b5ed2&utm_source=Dezeen%20Mail&utm_term=More
 


PROPERTY OF THE MONTH

111 MILSON ROAD, CREMORNE POINT

Sitting on 655sqm of land is this four bedroom, four bathroom home complete with parking for three cars, under-house cellar, swimming pool and fully self contained one-bedroom apartment. One of the Scoutable perks is exploring beautiful residences like this.
The master craftsmanship throughout is second to none and it's the details that really set it apart. We love the chevron flooring, elevated garden and walk in pantry. We also love the full length verandah overlooking the pool and garden and the panoramic Harbour Bridge and city views offered by the rooftop terrace.

March Wrap Up

Good afternoon and welcome to Scoutable’s March Wrap Up.

It's been another busy month for Scoutable as we've packed up and moved office. We're loving our new space and are looking forward to having clients come visit.
 
The Reserve Bank of Australia decided to keep the official cash rate on hold at 1.5% at its April meeting today. That is a record low for 12 consecutive months now. Even though the cash rate hasn't changed, banks are continuing to adjust interest rates outside of RBA movements. Having said that, despite some upward movement in recent weeks, interest rates still remain relatively low. If you're looking for a loan that suits you, we can recommend some great brokers.

As usual for this time of year, stock levels are dropping with the lead up to Easter and schools holidays.

Are you looking to buy or invest? Let us help. We love property and would love to find the perfect one for you.

 
Till next month,
Kellie Landrey | Principal Buyers Agent

P.s Did you catch Scoutable on The Real Housewives Of Sydney? SO MUCH FUN!!!!

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IN THE NEWS

THE BANKS HAVE BEEN WARNED
https://au.news.yahoo.com/a/34898293/subdued-consumer-to-weigh-on-rba-thinking/#page1

RENTAL AUCTIONS?
https://www.domain.com.au/news/controversial-us-rentbidding-startup-rentberry-to-launch-in-australia-tenant-unions-slam-the-idea-20170401-gvbmmy/

ONCE A TANK STATION, NOW A HOME
https://www.dezeen.com/2017/03/29/smartvoll-sculptural-concrete-staircase-loft-salzburgs-panzerhalle-interior-renovation-residential-salzburg-austria/

 

PROPERTY OF THE MONTH

9/9A BENNETT STREET, BONDI

This two-bedroom, one-bathroom, one-car space, 61sqm apartment presents a great opportunity to get into the sub-million dollar market and it ticks a lot of boxes.
It's top floor position within a block of only nine, and three walls of windows ensures excess amounts of light and air. It also indicates that a few structural changes might be possible. There's so much room to add value here but it's also completely livable as is. It's in a great location near shops and transport and is roughly an equal distance between the beach and the junction.
This property will provide above average potential for capital growth whilst providing solid rental returns.
With a price guide of $900,000, it goes to auction this weekend and we're keen to see what it sells for.

February Wrap Up

Good afternoon and welcome to Scoutable’s February wrap up. We hope you have settled well into 2017.

Scoutable held its first ever roadshow to Hong Kong & Singapore in February, where we presented on the Australian property market and met potential buyers including expats and foreign investors. We learnt that the appetite for foreign investment is strong. In fact, 70% of loans drawn overseas for Australian property are for foreign investors, whilst the remaining 30% are expats from not only Australia, but also England, America and Europe.
There are many great reasons for expats and foreigners to invest in the Australian property market:
A safe investment
More affordable options compared to local prices
Good yield and return on investment
The opportunity to build tax credits and wealth*
A home to settle in upon return to Australia
Our trip was a great success, and we're already planning our next visit in May. Please get in touch if you, or someone you know would like more information regarding investing in the Australian property market as a foreigner or expat.

The official cash rate was kept on hold at 1.5%, following the Reserve Bank of Australia's first rate meeting of 2017 on the 7th February. Interestingly, some lenders are adjusting interest rates outside of the RBA movement (or lack thereof) and there are still some attractive deals out there. To ensure you get the best match for your needs and situation, we can recommend some great brokers to help you find a loan that suits you best.

Are you looking to buy or invest? Call us for a chat. We love property and would love to find the perfect one for you.
 
Till next month,
Kellie Landrey | Principal Buyers Agent

*Scoutable is unable to provide tax advice. For independent tax advice, please seek guidance from a tax professional.
 

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IN THE NEWS

SCOUTABLE PRIDES ITSELF ON BEING INDEPENDENT, SO FEAR NOT!
http://www.yourinvestmentpropertymag.com.au/news/beware-of-possible-collusion-between-buyers-agents-and-real-estate-agents-231766.aspx

WHAT YOU NEED TO KNOW AS AN EXPAT
https://www.finder.com.au/australian-expat-home-loans

SIRIUSLY BRUTAL
https://www.dezeen.com/2017/02/24/safdie-esque-stacked-box-extension-proposed-for-sydneys-brutalist-sirius-building/

 

PROPERTY OF THE MONTH

852A ELIZABETH STREET, WATERLOO


Down an unassuming driveway in Waterloo sits this unique warehouse inspired dwelling. The property sits on 181sqm of land accommodating up to three bedrooms over two levels.

The entry floor provides master bedroom and open plan kitchen, living, dining which opens onto a small courtyard with plunge pool. Upstairs consists of two more bedroom and optional fourth bedroom or study. The property also provides parking for two cars. The price guide is $2.4M - $2.6M with a rental guide of $1,600 per week.

We love the variety of textures and features this house encompasses. From the custom copper kitchen to the freestanding solid marble bath. The exposed timber beams, concrete floors and dual sided gas fireplace.

Located 4km south of the Sydney CBD, Waterloo was originally an industrial area and is historically a working class region however since the early 2000s, the area has undergone a considerable degree of gentrification. In 2006 the median individual income in Waterloo was slightly higher than the Australian average. The suburb maintains numerous public housing apartments which has been a topic of controversy with regard to their demolition and the construction of luxury apartments.

January Wrap Up

Happy New Year and welcome to Scoutable’s January wrap up. We trust you all had a nice festive break and hope you're enjoying this hot Australian summer.

The unofficial start to the property market is Australia Day. Having said that, we have seen strong activity in January and we are expecting this trend to continue into the first quarter of 2017.

The reserve bank doesn't meet till Tuesday 7th February for its initial rate meeting for 2017 so the cash rate remains at 1.5%. In turn, interest rates are still relatively low and lenders are offering some great deals. We're seeing a lot of stock trading off market.  If you, or someone you know, are in the market for a new home or investment property, engage Scoutable. We know property and we'd love to find the perfect one for you.

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IN THE NEWS

IT'S TIME TO REVIEW STAMP DUTY
http://www.reinsw.com.au/Web/Posts/Latest_News/201701/New_premier_needs_to_review_stamp_duty.aspx

THE AGENCY COMES TO SYDNEY
https://www.domain.com.au/news/the-agency-arrives-in-sydney-with-the-aim-of-disrupting-real-estate-giants-20170130-gu1o6w/

PAY OFF YOUR INVESTMENT PROPERTY QUICKER WITH AIRBNB
http://www.news.com.au/finance/real-estate/buying/pay-off-your-investment-property-quicker-with-airbnb-says-global-index/news-story/4ffa6cc63f30e23a9b64cbfb46d50d10

 

PROPERTY OF THE MONTH

42 LITTLE RILEY STREET, SURRY HILLS

Sitting on approximately 170sqm of land, this Surry Hills corner block property is an inner city delight. Spanning over 3 levels, the architecturally designed home boasts three bedrooms, two bathrooms and one lockup garage which is an incredible value add in this part of the city.

Without compromising on privacy, louvered windows and skylights are featured throughout the house and an internal atrium running from the ground floor to the top, ensures an abundance of natural light and airflow. Contemporary finishes including bespoke timber cabinetry, slate floors, underfloor heating and a gas fire place make this space not just a beautiful build, but a beautiful home.

The ground floor consists of the lock up garage with internal access, main bathroom, laundry and an oversize bedroom offering versatility as this could easily become an office without intruding on you home.
The middle level is the heart of the home with seamless flow between living, kitchen, dining and fold-able glass doors leading to a private entertaining terrace.
The top floor houses two large bedrooms and a sky lit, resort style bathroom, all with cathedral style ceilings.
Surry Hills is a well established buzzing inner-city neighborhood with endless amounts of cafes, bars, restaurants and retail outlets. Moment to central station and an easy walk to the CBD.