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.

Last weeks wrap up!

We are seeing a mix of confidence levels in buyers at this time with open house attendees a little down on past weeks. On the flip side, those that turn out are genuine buyers. We notice that follow up calls to buyers will often find they have purchased.

A great indicator in your suburb is 'sold signs'. We are still seeing sale boards with sold on them in a comfortable time frame.

Clearance rates in the major capitals are on the low end of normal (57% in Sydney and Melbourne). Interestingly this is up from the winter clearance rates of 52%.

I heard an interview with the co-ordinator of the 'Jobs Market' on ABC Illawarra this morning. This will be held this weekend at the Illawarra Hockey Stadium at Unanderra. She has nearly 80 exhibitors with 1,000's of jobs available, some local and others out of area. This must be of some comfort to those potentially losing their jobs as a result of the Bluescope announcement.

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Friday 16 September 2011 Auction gavel poised above Berkeley school The possible sale of the abandoned Berkeley South Public School would be a sad occasion for Berkeley mother and a former dux of the school, Phuong Barraclough. Mrs Barraclough and her three siblings attended the now derelict school as children, and she would have liked her two-year-old daughter, Caitlin, to go there as well. But the empty classrooms have not seen a student since the end of 2009, when falling enrolments forced the school to close its gates indefinitely. Read the article 1. How are Australians spending their money? Half the money that Australian households spend on goods and services goes on housing, food and transport, according to a major survey released by the Australian Bureau of Statistics (ABS). The latest Household Expenditure Survey (HES) showed the average Australian household spent $1,236 per week on goods and services in 2009-10, an increase of 38 per cent ($343 per week) from the previous 2003-04 survey. In contrast, prices as measured by the consumer price index (CPI) increased by 19 per cent, indicating a rise in real living standards over the five years. The largest increases in average weekly household expenditure since 2003-04 were: current housing costs (selected dwelling), up $80 (55 per cent), due in part to increased mortgage interest payments, up $35 (75 per cent) and increased rent payments, up $32 (68 per cent) food and non-alcoholic beverages, up $51 (34 per cent) recreation, up $47 (41 per cent) miscellaneous goods and services, up $37 (46 per cent), partly due to increased spending on education fees for primary and secondary schools, up $10 (107 per cent). The level of weekly expenditure varied across states and territories. Households in the Australian Capital Territory ($1,536) and the Northern Territory ($1,500) recorded the highest average weekly expenditures. The lowest average weekly expenditures were in South Australia ($1,044) and Tasmania ($1,064). The average weekly expenditure of households located in capital cities was $1,310, compared with $1,107 in areas outside of capital cities. Couple family households with dependent children had much higher average weekly expenditure on goods and services ($1,748) than the national average. Households with one person aged 65 years or over had a much lower weekly expenditure ($446) on average. 2. Refinancing surges on back of competition Mortgage sales surged in August as borrowers took advantage of the competitive lending environment to get a better deal on their home loans, mortgage broker AFG said this week. More than $2.7 billion of mortgages were processed by AFG in August - the highest volume figure since March 2010. Refinancing accounted for 38.2 per cent of all mortgages, with a sharp increase in fixed rate home loans as lenders heavily discounted their rates. Fixed home loans comprised 9.4 per cent of all loans processed compared to 7.9 per cent in July - the highest level since December 2010. Mark Hewitt, General Manager of Sales and Operations said that while August figures are typically stronger than previous months, these figures trend well above seasonal expectations. "Borrower expectations about interest rates shifted significantly during August", Hewitt said. "We're seeing a lot of refinancing as borrowers take advantage of discounted products, but we'd like to see lenders create more flexible and competitive products for the new home building sector. "It isn't just consumer confidence that is holding back this sector, it is also the availability of attractive finance options." Along with refinancing, investment is the strongest sector of the market. New South Wales led the nation with 40.8 per cent of all new home loans for investment purposes. This compares with 38.1 per cent in Victoria, 34.4 per cent in Queensland, 33.5 per cent in South Australia and 33.4 per cent in WA. First time buyers comprise 13.8 per cent of the market nationally. They are strongest in New South Wales (15.7 per cent) and WA (14.8 per cent) with less activity in Victoria (13.3 per cent), Queensland (13.1 per cent) and South Australia (9.3 per cent). For the past two months, loan to value ratios (LVRs), the value of loans expressed as a percentage of property values, have moved up from 64.2 per cent to 67.7 per cent nationally, as the proportion of first home buyers entering the market has risen. 3. Five easy paint pick-me-ups When time and money are in short supply, it's hard to think about big remodelling projects. But with a little imagination and a small outlay for top quality paint, you can quickly make big changes in the appearance of your home's interior or exterior. Here are five ways to economically remodel with paint: Idea #1 Paint just an accent wall. Instead of painting an entire room, consider painting just one wall in a different colour. A so-called accent wall can add visual interest to any space and create an opportunity to introduce another hue into your colour scheme. Idea #2 Paint the area above (or below) a chair rail. If your home is blessed with chair rails, think about repainting just the wall area above or below the rail. The natural break created by the trim provides a convenient boundary for the new paint colour. Idea #3 Paint just the interior windows and trim. Another option is to stick with your wall colour, but paint your windows, molding and trim. This can produce dramatic change in almost any room, but especially in those where the walls are painted in a neutral colour like beige or off-white. Idea #4 Paint the front door. Ask any realtor and he or she will tell you that the front entrance is what creates the first impression about a home. By adding a fresh coat of paint to the door, you can ensure that first impression will be favourable. (Note to those who are selling a home: Repainting the front door may be the best investment you ever make.) Idea #5 Paint just a few exterior architectural details. Even if you don't have to paint your home exterior for maintenance reasons, you might want to consider painting a few architectural details for appearance sake. Shutters are one possibility. But if you are lucky enough to own a house with some ornamental fretwork, flaunt it by painting the trim in a strong colour that contrasts with the colour of your exterior walls. 4. What exactly do I own when I buy a unit? When you buy a unit it is most likely that it is purchased as a "strata titled" property. This means you own the interior space (including balconies, courtyard, paint and garage) of the unit and share ownership of common areas within the unit block such as hallways, common walls, exterior grounds, pools, tennis courts and other facilities. Having common ownership usually means you will have to pay a fee, normally quarterly, for the ongoing maintenance of common facilities. Before you buy a unit, make sure you understand what common area or strata levies you will have to pay. 5. This container takes the cake When it comes to baked goods, cupcakes could be considered the jack-of-all-trades. Not too heavy, not too light, they're suited to a vast range of situations, and they always get the job done. Playing off the diverse situations cupcakes accompany, Dutch designer Beerd van Stokkum has created Sweet Cake, a multipurpose container shaped like a giant cupcake wrapper. Made from a thick eco-friendly synthetic material, the wrapper can be used indoors and out, for anything from bathing a child to bedding a pet, potting flowers or acting as an esky - the list goes on. How sweet is that! 6. Easements are important If the property you are buying has an easement such as a sewer line which crosses another property, make sure this is recorded on the property's title documents. Check also that there is a provision which allows you to enter onto your neighbour's property if and when you need to repair the easement. If you are not sure if the property you are buying is affected by an easement, ask your solicitor to check the sales contract.

Another very satisfied customer!

Vendor Testimonial – 49 Parkes Street, Helensburgh
It’s the 1st of September and a letter has arrived at our new address from Southern Estates informing us that the sale of our Helensburgh property is now settled. What a great Spring beginning. The whole experience has been a seamless process that has been professionally handled by Southern Estates and associated services right from the beginning.
We met Jason Capelo while viewing our eventual new home in Wollongong. He was helpful and informative at every step. No question was too silly or enquiry problematic. The world that he opened up for us was thrilling in its possibilities and he handled the transition for us from buyers to sellers with ease and confidence. Danny O'Neill and all the other Southern Estates employees that assisted us were of the highest integrity and professional conduct.
The associated services of Solicitor, Mortgage Broker and Auctioneer worked as a team to assist us through the maze of red tape involved in property sales. The approach that Southern Estates takes in their business is to be highly commended. We consider ourselves lucky to have happened upon Southern Estates and wholeheartedly commend their services to other potential clients.

Sharon and Chris

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Friday 19 August 2011 Chalices a signal of spring WHILE a magnolia tree in full bloom is a joyful sight, the highlight for me is the emergence of the first pink bud on my deciduous M. x soulangeana. And the first one emerged last week. It was a magical and symbolic moment. Hopefully, it's a sign that the cold, grey days of winter are coming to an end and spring is around the corner. Read the article 1. Taking advantage Lower fixed rates have been enticing Australian borrowers to review their home loans recently, as lenders continue to bring out special product offers. The average three-year fixed term interest rate (the most popular type) has not been this low since October 2009 and new home loan deals are constantly being released, according to independent mortgage broker Mortgage Choice. Company spokesperson Kristy Sheppard said this week that more than one third of the broker's lender panel has reduced interest rates on some or all of their fixed-term home loans in the past week, some more than once. "They are reacting to changes to their funding costs, subdued home loan demand and uncertain economic conditions by re-pricing fixed rate loans and continuing to bring out attractive loan offers in the hope of boosting the flow of customers walking through their doors", Ms Sheppard said. "Borrowers are the overall winners in a landscape that provides more affordable home loan choices." She warned, however, that mortgage holders considering switching loans and/or lenders should not be influenced solely by the interest rate. Exit fees for the current mortgage should be considered, as well as other aspects of the new loan such as initial and recurring costs, ability to make extra repayments and redraw, flexibility, lender service and how long it will take to be approved. "If choosing a fixed rate, investigate rate lock fees for securing today's offers and be aware of possible break costs if you decide to switch again during the fixed period", Ms Sheppard warned. "Also consider how you will feel if you lock in and then watch interest rates fall down the track", she added. An increasing number of borrowers are weighing up their home loan options via online comparison calculators. In the first fortnight of August, comparison website HelpMeChoose saw a 32% increase in refinancing enquiries when compared to the average for July. "Online comparison sites are a great starting point for exploring loans, but nothing beats a thorough home loan health check", MS Sheppard advised, adding that working one-on-one with a mortgage broker who has a large lender panel allows the opportunity to compare your product against hundreds of others. 2. Does my garden look big in this? Just as the clothes we wear can make us look slim or large, so too can the plants in your garden have an effect on its appearance, making it look tall, spacious, unkempt or squashed. A few clever placements in a flower border along the line of the fence can make your property seem larger. Likewise, the shape of the garden beds and the paths and spaces between them will add to the illusion of distance. If your back yard is short, try running a garden bed along each side, tapering away slightly towards the farthest end from the house. This will have the effect of making the landscape appear more distant. When choosing plants to create the illusion of space, follow these general rules: Group coarse-textured landscape plants near the house, medium-textured plants next and fine-textured plants farthest away. Place plants with `warm' flower colours, such as yellows, oranges and reds, nearest the house. Place plants with blue colours in the distant part of the landscape. Along with the blues, include some pinks and mauves. Plants with silver or gray foliage provide a unifying base colour throughout the border. 3. Shifting the focus The current carbon tax debate has drawn a strong focus onto housing design and energy saving products since pricing will impact both on materials used and the running costs of the home, a leading architectural body noted recently. Archicentre State Manager David Hallett said considering the carbon tax is planned to be introduced in July 2012, it is prudent for people to consider its impact when planning a building project which can take up to twelve months to commence. "Ultimately the cost saving starts with the design and siting of the home including making provision for natural light in the main living areas and the orientation of the home to gain the maximum benefit for passive solar heating and provision for water harvesting," Mr Hallett said. "This is the stage where all of the ideas are assembled and thought through to ensure the best design for the budget is worked out. "This stage can also be the most expensive time for new home builders or renovators, if they make a mistake on the original design and have to undertake costly variations, (which are) the greatest reason for cost blow outs on projects," he said. The proposed carbon tax is a catalyst for people to look differently at housing design, materials and size, Mr Hallett said. The first step is orientation to maximise the home's northern aspect, where exposure to the sun is easiest to control. Eaves and pergolas can be precisely designed to block the summer sun, yet still allow desirable winter sunshine to penetrate. "It is important to prioritise rooms based on access to views and solar orientation," Mr Hallett said. "An open-plan kitchen and living area, for example, should have top position, while bedrooms or bathrooms require less daylight, as they are largely used for short periods of time, or at night," he added. By zoning the home, unused areas can be closed off, and cooling and heating appliances can be designed for maximum efficiency and minimum use. Archicentre have compiled a checklist of improvements to the home to accommodate the coming changes: · Insulate the ceiling · Weather seal windows and doors · Fit blinds, curtains or drapes · Buy high star-rated appliances · Install solar panels · Replace single flush toilet cisterns with dual flush cisterns · Upgrade the heating system to a more efficient design · Install a rainwater tank · Upgrade your hot water service · Fit a grey-water diversion system · Upgrade windows using double glazing or other high tech-glass · Build a pergola or verandah to provide shade when needed 4. Renovating with pets Renovating can be stressful, with timelines, budgets, noise, dust, living out of half the house at a time. If it's tough on us, imagine the effect it has on our pets, who just don't understand that knocking down that wall, ripping up the floors and putting new surfaces in the kitchen is going to improve their lives. In fact, their whole world is likely to be turned upside down and they may react in unexpected ways. Placid dogs may become aggressive in the face of perceived threat, or may run away just because the gates are left open. Cats will invariably leave and not be seen again until it's all over. They may also feel the need to "mark their territory" where you least want it. Here are some tips for making sure that your furry (feathered, fishy) friends are as comfortable with the chaos and change as possible: Prepare your pet beforehand by changing some of its patterns - such as where it sleeps and eats. Make sure your pet is micro chipped or wearing a collar with identity tags in case it `leaves home'. Try to always have an area of the house where the pet(s) can stay out of the way of the tradesmen, noise, etc. If possible, keep that space familiar to the animal so that it knows where it is and can still feel like it is part of the family. If all else fails, have a "foster family" or boarding kennel lined up. Remember that if you do this, the animal may be confused when it comes home and will need to be reassured with familiar items such as furniture, eating bowls or bedding. 5. Consider traffic Before you buy a home, consider the traffic effects of surrounding roads and facilities. Visit the property at different times of the day to get an idea of traffic patterns, congestion, parking availability and noise. Allow for seasonal differences. For example, if the home is near a school, traffic patterns are likely to be very different during school holidays than at other times of the year. 6. Have your island and sail it too At some stage we've all thought about sailing a yacht to a private island. Now it's possible to own both in one. The people at Yacht Island Design like to do things differently. Using a twin-hull ship design (known as SWATH), they have built a large, flat surface area on deck to incorporate conceptual designs such as an island complete with guest cabanas, bar and mountainous volcano with a waterfall feeding into the on-deck swimming pool. Spread over two decks within the volcano, the owner's suite affords views to the front of the yacht and from behind the waterfall.

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Friday 12 August 2011 The Power of Auction Marketing A few weeks back Southern Estates held 3 on-site auctions, with 2 selling under the hammer at above reserve prices. The 3rd property in Cordeaux Heights was passed in, as the interested parties could not purchase under auction conditions. Last week we negotiated and exchanged the sale on that property - also above market expectations. The auction marketing allowed us to identify the right buyers and achieve a great result for our clients. Coming into spring, now could be the right time to achieve the best result for your property. Contact us on 4229 5344 to discuss how our auction campaigns can realise your property's full potential. 1. Finance steadies Housing finance remained unchanged in June following positive results in the previous two months, according to data released this week by the Australian Bureau of Statistics. In seasonally adjusted terms, the number of commitments for owner occupied housing finance was flat (0.0 per cent). This follows a rise of 4.4 per cent in May and of 4.8 per cent in April. In trend terms, commitments for owner-occupied housing finance rose 1.0 per cent. The number of commitments (trend) for the purchase of new dwellings rose 1.9 per cent, the number of commitments for the purchase of established dwellings rose 0.9 per cent and the number of commitments for the construction of dwellings rose 0.9 per cent. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 1.4 per cent. Peter Jones, Chief Economist Master Builders Australia, said that the figures show the market has found a floor after eight months of interest rate stability. "Despite some improvement seen in recent housing finance numbers the pace of recovery is likely to be slow, particularly given the strong headwinds still facing the industry", Mr Jones said. "Longer term, the weak underlying level of housing finance signals that the residential building industry will be unable to meet a serious undersupply of housing that has arisen, risking higher rents and house prices as more people chase less stock." He added that Master Builders will continue to push for the need to address inefficient developer charges, land release regulations and the approvals process as part of reforms to remove impediments affecting the supply of housing. 2. What puts buyers off your home? How much do you suppose a pile of crunchy dead bugs on a windowsill will affect the selling price of a $500,000 home? How about a life-size skeleton hanging in the closet, or an open coffin in the basement with a dummy vampire inside? Or an overly-ripe kitty litter box under the kitchen table? The National Association of Exclusive Buyer Agents (NAEBA), an industry body in the United States, conducted an online survey of their members to rate the things they found most annoying when showing a home to prospective buyers. The results of the survey are revealing, surprising, and sometimes downright weird. Here are the top twelve things the agents reported as most off-putting when showing a home: Broken door locks preventing access to the house.Pet deposits in the back yard or dirty cat boxes.Missing light bulbs.Sellers that ask you to remove shoes and then have wet carpet or dirty floors.Having loose stairs or missing banisters.Low hanging dining room light fixtures in a vacant home.Closet doors that fall off or are not adjusted properly.Going into a vacant home and hearing animals in the walls.Dangerous children's toys left out.Dead cars in the driveway or yard.Political signs.Dead birds or animals in or around the home. Silliness aside, there is an important lesson here for home sellers to have a good look around your house to make sure that things you tend to overlook may not be a distraction or distasteful to prospective buyers. Imagine you are a stranger, or take a friend or relative for a walk through - they will often notice things you don't (such as cobwebs, pet smells, or an overgrown garden). 3. Building expected to recover Residential building is set for a roller-coaster ride over the next few years, according to a report released this week by industry analyst and economic forecaster, BIS Shrapnel. The Building in Australia 2011 Report shows that the impact of residential building is forecast to be minimal in 2011/12 after being negative in 2010/11. BIS Shrapnel's Managing Director, Robert Mellor, said that the value of new dwelling starts is forecast to remain relatively flat - up one per cent - in 2011/12. "Despite weakening net overseas migration inflows, which have fallen from a record 300,000 persons in 2008/09, to an estimated 165,000 in 2010/11, construction nationally still remains below the level of underlying demand, although in some states the market is closer to balance", Mr Mellor said. The report shows that the flat level of construction will set the scene for an improvement in residential dwelling activity in 2012/13. After the lull in 2010/11, economic growth is forecast to strengthen through 2011/12, underpinned by strong rises in resource investment, which will in turn result in higher net overseas migration in response to increasing labour requirements. Moreover, dwelling activity is now well below underlying demand nationally, with this shortfall focussed in Queensland, Western Australia, and New South Wales. BIS Shrapnel forecasts two interest rate rises in 2011/12, saying that with the rate of economic growth accelerating, this should still be able to support a rise in residential demand in those states where pent-up demand pressures are emerging. As a result, the value of new residential building commenced is forecast to rise by 10 per cent over 2012/13. "The gains are expected to be roughly felt equally across new houses and multi unit dwellings, with the upturn concentrated in Queensland, Western Australia and New South Wales", Mellor said. "These states will experience a rapidly rising dwelling deficiency, while affordability has also improved after solid income growth and weak price rises in recent years. In the other states, recent high levels of residential construction have meant that underlying demand and supply is more balanced and there is little upside." The residential building upturn will be short-lived, however, and the subsequent downturn in residential construction will result in a substantial underlying deficiency of dwellings emerging across most states. Meanwhile, prices in most states are also expected to have declined in real terms and affordability will have improved. Mellor predicts that through this period, non-residential building is expected to ease, freeing up additional capacity for residential construction into the subsequent cycle and allowing new dwelling construction to reach a higher level from 2016. "The challenge will be for an adequate level of new land supply to be available to meet this potential upturn in demand", he concluded. 4. Improve your Location Whether your house has water views or is next door to an electricity substation, make sure potential buyers are aware of the best features of your neighbourhood. Fill your agent in on all the local amenities and how they have affected the quality of your life. Prospective buyers who will be inspecting your house want to imagine themselves living there - and the more they see of the whole picture (schools, restaurants, transport, hospitals) the easier that is. 5. Raising the standards Possible loopholes in the national energy rating scheme could prove costly to homeowners, according to consumer advocacy group Choice. Choice warned this week that while energy efficiency can save households thousands in bills, instances of cost cutting by some builders and developers and poorly trained assessors are compromising the effectiveness of standards. Industry concerns about the existence of collusion between sellers and assessors and the questionable use of energy rating software have also been drawn into the spotlight. Choice spokesperson Ingrid Just said that currently, a new home's energy rating is assessed at the design phase rather than upon completion of the work. "We have seen evidence of dramatic discrepancies between promised versus real energy efficiencies once a home is built," she said. Ms Just cited the instance of a home in north-western Sydney that allegedly required more than $100,000 worth of additional work to meet minimum energy and building compliance standards, despite already being certified for occupation. "The home owner was shocked to discover that the energy star rating they were given on paper was far less than the reality," she said. At a time of rising energy bills, consumer confidence in energy ratings is crucial, especially ahead of the planned national roll-out of energy ratings for existing homes in 2012, according to Choice. A recent government study into house prices in the ACT showed that an energy rating improvement of one star will increase a home's market value by 3 per cent. "The whole point of energy ratings is to give credible information to consumers about the energy use of houses, so they can factor that into their decisions," Ms Just said. "If homes aren't built to specifications or energy assessments aren't accurate, then buyers could soon find themselves paying the cost in higher bills and lower market value," she warned. Prior to home energy ratings rolling out nationally Choice is asking for:* A survey of the number of newly built homes meeting minimum energy efficiency standards* Stronger regulation of post-design energy compliance for new homes* Assessors to be qualified and always chosen by the buyer rather than the building's builder, developer or seller* Greater information provided to consumers about home energy efficiency ratings and the most energy efficient ways to use their homes 6. Out of the frying pan, into the fire There is an adage that you can't avoid death and taxes, as both are sure catch up with you. The latter certainly caught up with one UK man attempting to jump his way through an assumed loophole to avoid paying taxes for renovations on an investment property. In the UK, building a house from scratch removes the 20 per cent VAT (Value-Added Tax, similar to our GST) otherwise incurred when refurbishing or renovating, the UK Daily Mail reports. To avoid the fee, the property investor demolished the house to start the construction fresh, disregarding the fact that the nearly 200-year-old house was registered as part of a conservation area, and that any demolition would require special consents. He has subsequently been fined nearly AU$128K for the illegal demolition and a further $78K in costs from the council. The size of the fine is said to reflect the judge's determination that the man should not benefit from the sizable savings he'd hoped to attain.