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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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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July Wrap Up

Greetings from Scoutable and welcome to our July Wrap Up.

Scoutable had a mini break and spent some of July on the Amalfi Coast. Unable to completely forget about property, we saw some pretty amazing houses, not to mention some incredible views.

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Meanwhile back in Australia, UBS Economists are reporting a ‘correction’ in residential construction as a result of the slowdown in the apartment market but believe house prices will continue to grow, though at a slower pace. They are predicting an average capital growth down to seven percent by the end of 2017 (10% reported June 17). In 2018, their forecast is between zero and three percent.

Please see article below from the Sydney Morning Herald for more information.

http://www.smh.com.au/business/property/house-price-growth-to-slow-further-but-not-crash-ubs-20170716-gxcb21.html

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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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.