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Where Do you Put your Money?

Banks give you 2%,

Stockmarket is for those who can afford to lose, or have an appetite for risk.

Bitcoin is hard to understand and may be a bubble.

Cash under the bed means you need a really big bed.

So there you go- Sydney Real estate which has more than quadrupled since 1988!

Spring Selling Season Real Estate Sydney

So here we are in 2017 with the experts saying a crash is coming- again! Let’s be frank; Sydney expands by 80,000 people each year  and we barely build new dwellings ( houses and apartments) in sufficient numbers to satisfy 75% of that.

Until demand is less than supply, prices will remain as is , static or rising; it’s a simple law of economics

Basispoint.com.au

I thought it worthwhile referring you all to this site  www.basispoint.com.au as it covers very well what’s likely to occur with a crackdown in China on property investing overseas, an excerpt from David Chin follows

“China’s release of a formal list of ‘banned’, ‘restricted’ or ‘encouraged’ overseas investments is a game changer for Australia’s property industry.

Overseas property (commercial, residential developments, hotels, theme parks) is now restricted (though not banned).

Chinese investors/developers can expect tougher government assessments that their deals are not ‘irrational’ and are within their ‘core’ business.

The result is increased uncertainty with the following consequences for property developers.

  1. Demand/supply balance for deals now favours a reduced buyer pool. Buyers will ‘wait and see’ to flush out distressed sales and/or negotiate harder.
  2. Property assets currently earmarked to be ‘flipped’ by speculative owners will become distressed sales if owners have limited funding sources/holding capacity.
  3. Plans by Chinese owners to roll their commercial properties into REITs (real estate investment trusts, hotel investment funds etc – another form of ‘flipping’?) for sale to other Chinese investors will want clarity on whether ‘equity investment funds’ now identified on the ‘restricted list’ will be a problem.
  4. But Chinese/Australian developers here for the long-term will benefit as speculative offshore developers will exit, leading to lower site costs, reduced construction activity and less supply of apartments.

However Chinese overseas individual investors into Australia are also facing headwinds. They include:

  1. 17% in combined transaction, interest rate and levy costs (on a $1m deal – a break-down of this 17% will be released ahead of my 20 Nov property event) acting as a major deterrent for new offshore buyers.
  2. Difficulty in getting Australian bank financing for settlement, but a number of non-bank lenders have stepped into this market in recent months. Mirvac and Lendlease recently announced settlement failures are still under 2%…but one should ask them how many settlements have been delayed past 30 June 2017. AV Jennings reported 5% of settlements were delayed.”

 

End Of Year

The financial year is almost over and let’s look at where you can buy affordable property. Apartments are proving a great seller on all points of the compass and our team would be pleased to walk you through the returns for an investment on each property plus the anticipated capital growth expected in each suburb.

Stand alone and semi type homes are in firm demand and we have favoured suburbs that may interest you

Give us a call on +61  618 473 780

Great Terrace for Sale- 115 Hargrave St Paddington , Guide $3,650,000

http://www.raineandhorne.com.au/doublebaybondibeach/properties/115-hargrave-street-paddington-2021-new-south-wales

A Classic  Paddington Residence

 

Appealing to all, this classic wide-fronted terrace ( 6.2m ) sits prominently towards the Woollahra end of Hargrave St.

Entry level has 2 living areas, dining room plus a modern kitchen, polished floorboards throughout, separate full bathroom with laundry.

Level one accommodation offers a master with ensuite, 2 further bedrooms, full bathroom and a rear teen retreat /5th bedroom, with separate terrace and entry.

The attic bedroom is light-flooded with a full ensuite.

Outside we have a private paved courtyard ideal for lazy lunches and adjacent is the rear paved off-street parking accessed via auto roller door.

 

Features

2 two spacious living rooms, polished floors

Large dining room for 8 persons

Modern kitchen with island bench

Fold back doors to the alfresco dining courtyard

Verandah off the front living room, balcony off the master bedroom

4 spacious bedrooms

Bright, airy teen retreat / 5th bedroom

4 bathrooms throughout on all levels

Reverse cycle air, alarm, gas bayonets on level one and outside for BBQ

Land 197m2 approx

 

Sydney’s Housing & Apartment Market

Approvals are underway as I type this for a monster number of new approvals to rezone suburbs with the intention to increase the supply of housing stocks available to new buyers

Great news for those entering or seeking to enter a proven investment formula as well as providing that number 3 of our needs, food , clothing, SHELTER

When will it end ?

Property prices are being driven to stratospheric heights , and, the boom in property prices has little to do with anything other than historic low interest rates. Property income yields are at historic lows and yet property buyers couldn’t be more enthusiastic. Buyers, who tell me that they don’t mind buying on a yield of 2.5 per cent because they will get a capital gain need to understand that the capital gain will only come when a buyer is willing to accept an even lower yield.

Surging house prices have nothing to do with a shortage of land. Hong Kong has less land and a much higher density of people per square kilometre and that has not prevented falling property ­prices. Moreover, surging dividend incomes, retiring baby boomers and Chinese fondness for our climate and air quality are all “weight-of-money” arguments that have never prevented falling prices.

Sourced from D Cameron

The Conundrum of Investors versus 1st Home Buyers

Here we go with Victoria now giving stamp duty concessions to 1st home buyers and whilst it sounds like a great move to help those buying $600,00 and under, in reality any gain will go to the vendors as prices are pushed up with those trying to get into an already heated market- who will be the first to tackle CGT, stamp duty and land tax as a package. Markets always subvert the best intentions by behaving differently to expectations and no doubt we are in for a surprising year again with the amount of years to service loans jumping to new levels and heading into danger zones if and when interest rates go up.

Just Listed for sale

5 Darley Place  Darlinghurst

This is a 3 bedroom 2 bathroom  freestanding cottage, on 228m2 of land enjoying a prized cul-de-sac location.

http://owner.mydesktop.com.au/cgi-bin/vendor/viewproperty.cgi?g=24420&p=10823943&hash=a4a7f71631967b5d03c5461f127f18e02da532a1

 

At this stage of the campaign the guide is $2350000 and we will update this guide as the program progresses to auction on February 18 at 11am on site

We are open Wednesdays and Saturdays from 10.15 am to 11.00am

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Council rates are $386.70  per quarter and water $187.07 per quarter

 

Our property management division has estimated the rental return at $1600 per week

Strata Laws have changed in NSW

Call  me now for a comprehensive or brief update

New by laws and what’s required, builders warranty changes , new voting procedures and proxies, how  to sell your strata building and voting requirements, tenants participation and voting plus loads more

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