Australian population is growing at a good rate and it augurs really well for real estate. Macroeconomics suggests that population growth is always a key indicator for the property market. For an year upto September 2012, the population spurted by 1.71%, says Michael Yardney for the Property Update. This is much higher than the 30 year average of 1.4%.
Archives for April 2013
Archives
Smoking in the House Reduces Home Value
If you are a smoker, chances are you might end up significantly reducing the value of your property. I was glancing through a survey report by Pfizer Canada which revealed that smoking inside residential premises can shrink the resale price of homes by up to 29%. Pfizer Canada is a pharmaceutical organization whose products encourage users to quit smoking. The survey commenced on 31st January and concluded on 6th February.
Astonishing facts from the study:
- As many as 401 participants in the survey who were real estate agents acknowledged that it is tougher to sell house whose inhabitants were smokers.
- Home owners lose up to $107,000 on a residence located in Ontario, where the average resale value of homes is presently $369,000(!)
- About 56% of the participants agreed that majority of buyers would dislike homes which have been previously occupied by smokers. Similarly, about 26% of the respondents asserted that most buyers would vehemently oppose purchasing homes belonging to smokers!
- Nearly half of the participants said that smoking inside homes adversely impacts resale valuation of properties.
- According to other respondents, smokers stain walls and carpets of homes, besides leaving a foul stench.
I am not sure if the impact of smoking on your home value is quite as drastic as this study makes it. Pharmaceuticals are well known to have a way with numbers and statistics. Nonetheless there now is (yet another) reason to quit smoking.
Addressing infrastructure issues is key to Sydney’s future development
The key to Sydney’s future development lies in dealing with infrastructure issues
Sydney has to achieve growth and expansion for the sake of future generations writes Martin Bregezzo in a new article for the Property Observer. There have been several promises as how easy and affordable it is to build half a million new homes. But the reality is very different. The current average of 17,290 dwellings being constructed annually over the past 5 years is nowhere enough when the actual figures should be somewhere near 25,000 dwellings per year.
Government and Public departments must put in accumulative efforts in building the foundations of proper infrastructures to enable Sydney’s future growth.
- Making approval processes move faster.
- Bringing a common point in order to handle local affordability for various sections of the market.
- Reducing LGAs.
- Complete removal of developer and transaction tariffs.
- High density clustered around transport nodes is an integral element of successful urban development.
- In order to achieve human right to shelter for the future generations, re-evaluation of community participation in providing approvals is important.
- Government role must be strengthened and corrected in view of the current land acquisition process.
Planning in the interest of the people is the only option in Sydney’s future development. The infrastructure must be available for the people and communities (including those living in marginal borders of Sydney) and it needs to be planned for and addressed now.
Read the full article here.
Whether or Not to Furnish Your Investment Property
Carli Ziri, the director of Lifestyle Property Agency, is frequently asked by his clients whether to furnish or not to furnish the investment property they just bought. The choice actually depends on the investor’s preference. However, Ziri points out that before making a decision, you need to compare which of the two choices is more beneficial.
Most tenants would want to rent a place that they can customize to suit their taste. Also, furnished properties tend to have shorter lease terms, so you have to consider the money you’ll lose due to vacancy, maintenance, and extra agency fees and the premium you’ll receive. However, if you’re planning to use your unit between tenancies, then it might be better for you to furnish your investment property.
You can read the whole article here.
Five Unforgettable Investing Lessons
When times are good, we start exercising selective memory, obliterating anything bad that had happened to us. This may not be a good idea. Michael Yardney for the Property Observer says that we will do well to learn a few things from the last property downturn. Let us talk about the five property investing lessons Yardney talks about:
Baby boomers push up demand for apartments
Baby boomers or those born between 1946 and 1964 are looking at their post-retirement lives today. Well! How does it connect to the property market? Truth be told, it can have a huge impact on the real estate scene and older people might just turn out to be the next big force in the property (generally) and prestige (specifically) market in Australia, says Nicola Trotman for the Property observer.
