Weekly Wrap up - Apart-Age is alive and well?

The recently introduced National Credit Code has had a side effect. Previously banks were comfortable lending to over 50's (even using 20-30 year loan terms) as most loans are paid out in under 12 years. The banks are now tightening their lending criteria. Lenders now 'ask for evidence of how the borrower will pay out the loan on retirement or death, using the code to explain their decision. The code requires lenders to ensure borrowers can afford to service their loans.'
I'd be interested to know the delinquency rate for a mortgagor who takes out a loan after the age of 50. I suspect it's quite low!
Real Estate Matters:
Reserve Bank decision due tomorrow on official cash rates. Like most of these monthly events, there are various opinions on which way the RBA will jump. Its unlikely to be anything greater than a 0.25% drop if at all. My betting is that they will keep their powder dry and leave rates where they are. The European situation is still very volatile and the RBA will likely want scope to reduce rates if things go really turtle up.
We saw 2386 unique visits to our web properties which has remained steady for a couple of weeks.
Auction clearance rates - Sydney 53% and Melbourne 55%

Quote for the week:
How old would you be if you didn't know how old you are?

- Leroy (Satchel) Paige

Weekly Wrap up - Wollongong, the preferred riders destination

I took some time out to watch the world class cycling field on Satuday afternoon at Wollongong lighthouse. I noticed a few things:

1. The road surface was superb - it was obvious someone had focussed on getting this right
2. It was a class field - Stage winners on European Grand Tours, Olympic Gold Medalists, World Champions on both track and road, and the Russian Olympic Cycling Team to name a few
3. They are damn quick - I clocked the Elite Men circulating at 42km/hr average and up to 48km/hr average in the last couple of laps
4. It's difficult to get 90 elite riders around a near hairpin bend together at 42km/hr
5. Hotmix is not very forgiving when you come off
6. I forgot to put suncream on my thonged feet!

I've also subsequently read the Russian Team was so impressed with Wollongong, they've extended their stay by a week for more training.
I believe the drive to get the event to Wollongong came from David Farmer and Gordon Bradbery...well done leaders. Wollongong is ideally set up for sportsmen and women and with a rich tradition of elite sportsmen from the area this can only enhance our reputation.

Real Estate Matters:
Again we noticed Open House attendances were generally down with a fairly robust rain storm on Saturday morning contributing to the outcome. This was actually in contrast to the Sydney experience where afternoon auctions were fairly well attended with active and successful bidding.
We saw 2218 unique visits to our properties on-line for the week ending Saturday 26th November.
Auction clearance rates - Sydney 55% and Melbourne 50%

Quote for the week:
Think globally, act locally.

- Rene Dubos

Weekly Wrap up - Wonderful news for Wollongong - Lets build on it!

Over the years, the Wollongong Mall and its environs have copped their fair share of flack. And it would be very hard to argue against the present mall being well past its use by date.
GPT is about to start the West Keira project, the Mall is getting a wonderful Christmas makeover and positive energy is returning to the CBD.
So how do we build on this?
It's time to revamp the total look of the city.
An example of the incredible change to habits can be seen with the Blue Mile project on the waterfront. Have you noticed how many people are using this now? And the coastal nay sayers who didn't want change are very quiet.
Should the old Illawarra County Council building on the corner of Burelli and Church Street be demolished? The argument is it blocks access to McCabe Park both visually and literally. What about the atrocity that is West Crown Street? How do we build on the lifestyle aspects of living in Wollongong (a Sydney based friend recently complained on line that his commute to work was now 2 hours each way - that equates to 40 x 24hr days per year out of his life. Tell me who has THAT worry living and working in Wollongong?). Bring it on!

I like the strategic themes as outlined in the Wollongong Futures Strategy Report 2025

• Living City – urban environment, local communities, natural environment policies, lifestyle
• Innovative City - regional economy, cultural industries
• Connected City – transport, telecommunications
• Inclusive City – social plan, equity, governance, community engagement

Real Estate Matters:
Our team has secured 4 sales over the past two weeks with open house attendance a little down on previous weeks. Is this a reflection of reduced stock levels or an early Christmas trend?
We saw 2321 unique visits to our properties on-line for the week ending 19th November.
Auction clearance rates - Sydney 52% and Melbourne 47%

Quote for the week:
A vision is not just a picture of what could be; it is an appeal to our better selves, a call to become something more.

- Rosabeth Moss Kanter

Weekly Wrap up - Sydney to the Gong and beyond

Completed the Sydney to the Gong ride yesterday and apart from making sure sufficient oxygen to sustain life reached my vital organs on the climbs, I had 3hrs 30 mins to reflect on a few things.
We really have world class scenery. Botany Bay, Georges River, the wonderful rainforest of Royal National Park and then the stunning Illawarra coastline to the finish. We do live in an amazing part of the planet - sometimes taken for granted.
I was gobsmacked by the quality of the organisation that delivered 10 thousand of my fellow bike riders to the finish at North Wollongong. Major roads were closed including National Park, dedicated bike lanes operated for most of the 90kms and every important intersection had Police and volunteers to guide us safely through.
And then the fundraising bit. I've raised $1090 so far and this was made even more poignant via a post by a Facebook friend. She thanked me for the contribution as she was a recipient of the MS fundraising. Makes it that much more personal - Thank you, Maya.
To real estate matters!
We sold three properties through the week (including one at Auction) with 35 people through 5 open houses.
Auction clearance rates: - Sydney 56% and Melbourne 55% reflecting a steady turnover.
First home buyers are expected to remain the main sales turnover force until the end of the year and the Reserve Banks decision to drop official interest rates by 0.25% will inject a little more confidence into the market.
Once again - thank you to all my sponsors for the ride. There is still time to contribute if you feel so inclined. Just click the link in today's Blog title.
Quote for the week:
"It is not fair to ask of others what you are unwilling to do yourself."

- Eleanor Roosevelt

Weekly Wrap up - Get up to speed, Valuers!

We are spending an extraordinary amount of time working with Valuers on sale prices for properties.

When you buy, the amount you can borrow against a property is determined mainly by two things. Your capacity to pay (usually a maximum of 30% of your gross income for ALL debt based repayments - including credit cards, car loans etc) and the valuation of the property (a maximum LVR - Loan to Value Ratio of 80% - 90%). The rush by First Home Buyers has caught a lot by surprise. Not the least of whom are the Valuers. We now have two sales by genuine buyers competing with others being threatened by valuers. Based on the feedback from the valuers, I suspect you will see a lot more before they 'get up to speed'. I'm not sure what extra evidence they need. The market has moved up in the last month for properties under $400k. No question. Like a lot of forensic reviewers, the valuers react AFTER the fact. Lets hope its not too late for First Home Buyers to benefit from no stamp duty.

Auction results: Sydney 54% with Melbourne 48%

As I write this, the Melbourne Cup has been run and won and the RBA has dropped official interest rates by 0.25%.

The retailers are doing it tough and Australians are hanging onto their money to pay out debt. Lets hope this move by the Reserve Bank will tempt some to spend for Christmas.

Quote for the week:

If we did the things we are capable of, we would astound ourselves.- Thomas Alva Edison

Weekly Wrap up - there are buyers out there!

With the long weekend and everyone elsewhere, we only opened 5 properties this past weekend and subsequently saw a small turnout at our open homes. However, it appears it was well worth it as a genuine buyer (who took a contract copy) turned up at one of the houses.
We had a total of 1,879 unique visits onto our sale properties from the web for the week averaging 104 per property.
What is also telling for the market is the 10 sales we secured for the month of September. I'm aware of some areas in the state (and also SE Queensland) who's offices are doing 10 sales for the year.
I also believe this is due to the sales team and their abilities - well done, team!
Auction clearance rates for Sydney were 57% and Melbourne - 44%. I suspect the Melbourne figure was due to the Footy grandfinal. (and really...who would auction in Melbourne on GF day!).
We have two properties being auctioned this Thursday 6th October with both attracting buyers. Will report the outcome next week.
In the meantime - happy house hunting.

Weekly Wrap up - First Home Buyers Rule...

We held 8 open houses on the weekend with 27 attendees. Lowest priced property via private treaty was $315,000 with the highest $565,000. We also have two auction properties going to the market on 6th October with price guides above $325,000 and $800,000 respectively. Most activity is in the first home owners arena with concerns about the removal of Stamp Duty concessions for First Home Buyers from 31st December fueling activity. In addition we had 1,638 unique visits to our properties on the web.
We sold 3 properties.
Auction clearance rate for Sydney was 59% with Melbourne 53%. This is marginally up on last weeks figure for Sydney (57%) and down for Melbourne (down from 57%)
The first home buyer trend is set to continue.
What do we make of this? Our sales team tell me buyers are still out there despite generally negative media about overseas issues. That tells me East Coast Aussies have money in their pocket and a cautiously optimistic view. Correct property pricing is paramount with buyers shunning properties overpriced by even a small amount.
If you are considering selling and your property is under $500,000, I would recommend you talk to us about listing your real estate now - to sell before these concessions are removed.