Angus Raine writes an article for the blog Real Estate View where he talks about the possible price escalation in the Lower North Shore Region, given the recent announcement of Sydney Metro’s Second Stage by the NSW government. Real estate prices may shoot up by 10%, especially in areas close to the North Sydney and Crows Nest metro.
Archives for December 2015
Archives
Rental affordability in Sydney Close To Stress Threshold
Phil McCarroll writes an article for the online magazine Your Investment Property wherein he discusses the “critical condition” of rental affordability in Sydney. The Rental Affordability Index (RAI) says that the Greater Sydney area may force an average household to witness housing stress. The low income bracket may fare even worse.
3 Telltale Signs of a Property With Problems
The joy of signing the sales deed of a home cannot be replicated too easily. It is a priceless moment and unless you are a big investor who signs one each day, the moment comes with its fair share of goosebumps.
Buying a home, after all, is a big investment–both in terms of price and emotion–and that’s why you must get the property thoroughly inspected before signing on the dotted line. Do anything less than that, and you’re likely to be signing for a property with problems.
Sydney and Melbourne To Remain Strong For Another 6 to 12 Months
Phil McCarroll writes a piece for the website Your Investment Property where he quotes a survey citing that the prices in Sydney and Melbourne are likely to rise for another 6-12 months. The top financial institutions are buoyant about the prospects of these two capital cities at least over that period.
Two Crucial Questions Every First Home Buyer Must Answer
Australians have great affinity for the brick and mortar and while the number of those owning property outright (as against those renting or using a mortgage) has sharply declined over the last couple of decades, we cannot but confess that we love buying homes.
Two crucial questions ahead of a first home buyer
If you have your first property in mind, you cannot be over-prepared. There is just so much diligence needed. A seasoned buyer’s agent on your side can be your pass to success but the work at hand, though delegated to your agent, remains a big one. There are many questions you need to answer before getting your deed signed (and even here, there can be relevant questions needing an answer). Here are two of them, and both are very crucial ones, I believe.
How much should I pay up front?
Before anything else, there is a need to figure out the initial deposit. So how much should you pay up front? A minimum of 5% is a must as an upfront payment. Also, you need to make doubly sure that the money is a part of your savings and not a gift. This reassures the seller that you can budget your money.
In the event of paying a sub-20% deposit, you need to buy Lender’s Mortgage Insurance (LMI). This insures the lending party against buyer default. I think it may be wise not to put 20% as upfront payment for your first home even if you have the resources. You can go for the LMI and think of its premiums as additional mortgage. However, the amount of money you save by not paying a 20% upfront can become a part of an emergency offset account which can be quite a handful.
When should I enter the market?
First home buyers would also like to know if there is a right time for them to enter the property market. Only recently, the FHBs were feeling all but elbowed out of the property market race. They have made quite a comeback by turning into investors.
The idea they are following is novel. They are buying properties in reasonably placed, away-from-the-CBD locations (where purchases are cost-effective) and renting out in fashionable neighbourhoods. This way, they are living their great home ownership dream and enjoying a lavish lifestyle, too.
This is a learning curve for them and the gentrification trends suggest they have been learning the game right. I feel there is no good time for a First Home Buyer to move into the market. Pundits time the market and yet one feels there is no bad time to buy a property.
Either you will make money through capital growth in the same property cycle or if you buy at the peak you can always hold it and sell it in the next property cycle which is likely to have higher peaks. Even if I take an inflation-adjusted conservative figure, you will have to be really unlucky not to register a gain.
Home Construction in Sydney To Remain Steady
Phil McCarroll writes a piece for the online edition of Your Investment Property wherein he asserts that there may not be any change in the level of construction activity over 2015-2017 in Sydney. By the end of 2017, 61,000 new units are expected to come into existence.
Total number of homes expected by 2017
However, real estate experts JLL suggest that based on the pace at which houses are constructed, we may get close to 46,500 homes completed by 2017. Between 2012 and 2014, 44,500 new units were built. That means we might be in for an ascension of 4.5%
For the multi-unit dwellings, there should not be any shortage of supply in the near future and the new apartment supply will remain abreast with demand, at least until the last phase of 2016.
Greater Sydney Metropolitan
Buoyed by prevailing and upcoming transport projects, the Greater Sydney Metropolitan is likely to become a more prominent player in the Harbour City’s real estate.
You can read the original article here.
Consumers buoyant about Sydney
Sydney’s golden property phase has stuck for some time now and investors are convinced that it isn’t some fluke, fad-guided, blink-and-you’ll-miss it phenomenon. Buoyant consumer sentiment has pushed Sydney’s fortunes to newer heights and this very same trend has been reflected by the construction industry, too.
Opportunity for capital growth
Sensing capital growth, the investors have rallied strongly and this is likely to keep demand high. Naturally, what will be directly influenced is home construction. I just hope we can get clear passage ahead, and that roadblocks like undue protocols and red tape become a thing of the past.
Population explosion leading to infusion of skilled workforce
Population explosion has led to mass migration towards Sydney and this has led to the infusion of skilled workforce. Now if the labour industry works in tandem with the construction industry, we may be in for more good times ahead. With that dream in mind, I am ready to bypass the crux question of affordability which is rearing its ugly head and making quite a number of middle-range income earners look beyond Sydney for their first/next home.
