Property market cynics never tire of talking about a real estate bust. Times have really taken an interesting turn though and a few revealing property statistics have thrown eggs on faces of doomsayers. Michael Yardney in a terrific column for the Property observer highlights how the climate has changed a lot in the last one year.
Tracey's Property News
Women outnumber men in terms of home-ownership
Women have skipped past men in terms of home ownership, suggests ABS reports based on 2011 census data. Diane Leow in an article for the Property Observer shows how the percentage of women vying for home-ownership has clearly edged ahead of men. 61% of women are proud homeowners while only 58% of men have invested in properties. Among the singles, the trend is even more distinct with over 65% of women being homeowners as against 55% of men.
Vendors are actually cashing on this trend and investing in more frequent home staging. Display-worthy properties catch the fancy of female buyers a lot more. Women also accord a lot of importance to kitchens. It is their point of focus during home inspections. 59% of them feel that it is the most significant room. This figure is quite in contrast to 37% of men who give maximum importance to kitchen. Men have traditionally been more inclined towards the living room and 56% of them feel this is the most important area.
Buyers care less for pre-existing features and more for the ease with which they can revamp or renovate a home. If they see a lot of opportunities towards improving a home (according to their taste), they are automatically driven towards it.
Recent rate cuts could save mortgage holders $90,000
Joe Sirianni puts up a fair argument in favour of low interest rates in his latest Sandstone masterpiece Bomera sells for $12.5 million
Bomera, the Italianate sandstone mansion at Potts Point has sold for $12.5 million, says Jonathan Chancellor while writing for the Property Observer. With a clear view of the Woolloomooloo Bay, this powerful piece of architecture encompasses 2150 square meters. Jorge Fernandez, an expatriate real estate developer has fetched a reasonable price for the deal. Having undergone an intensive revamping in 2003 (Graham Brooks & Associates), the property was listed with very high hopes in the year 2011. It aimed to fetch about $25 million but has procured only half of the expected price.
Bomera is the more illustrious half of the Bomera-Tarana combo. While it is spread over 2150 square meters, Tarana takes up 1550 square meters of space.
Don’t underestimate the risks in off-the-plan buying
Buyers are at no risk if the projects they invest in do not start off at all, observes Michael Laurence in an article for the Property Observer. The 10% security deposit made by a buyer is completely refundable. This is if the project fails to take off owing to some constraint from the developer’s end.
Subdividing vs Renovating – Which Is More Profitable?
Mark Armstrong busts a real estate myth while reporting for Property Observer. In his article, he discusses how Subdividing may not be the most profitable way to go. Property owners hold two opposite ideas equally dear when they are looking to sell their properties. One such idea is Home Staging wherein they revamp their existing homes, upscale it a little, give a few finishing touches and seek better prices for their appraised properties.
Property owners sometimes take a diametrically opposite route and demolish their properties to create two separate units on the site. If you stick to traditional notions, you may feel that two units can be sold for a higher price than one- right? So is there a catch? Well! Plenty to be precise!
To begin, there is a cost involved in demolishing the existing home and leveling the site. There is a price tag attached to council permits. Add to this the fee of the architect or the draftsman who prepares the blueprint for the new units. You cannot overlook the cost of labor and raw materials (it may include an exigency or a sudden surcharge). One has to duly consider the amount of interest on loan (required for reconstruction) and rental fee (for the time you do not have a place to live in).
Next in line is the cost involved in marketing your property, appraisal fee, agent’s cut and the capital gains tax. If you now look at it, subdividing might not seem to be a viable option anymore. Well! It still can be but it is your duty to make an informed decision.
Which one between the two would you typically choose? I invite your opinion.
