Sydney has registered smart figures for more than one niche of property market performance. Michael Yardney for the Property Update reveals that it has topped the chart for maximum rise in trend home prices yet again. Its figures of 12.2% rise (year/year) is decidedly higher than that of Melbourne (8.2%), its closest competitor (courtesy ANZ Bank data).
Sydney is also doing phenomenally with auction clearance rates, posting 79% clearance for the week ending 3rd November. This is a tad lower than the +80% clearances Sydney has been posting of late but quite good nevertheless. Even the number of auction sales have risen sharply for the harbour city.
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What in your opinion is the reason for Sydney’s rise- paucity of available land, law of averages, or something else?
Going by an article on the website Smart Property Investment, fee and taxes are prime concerns of home buyers. According to the article, a highly esteemed loan comparison website, finder.com.au, evaluated 7,000 questions on home loans (those which were posted in its forums). The website inferred that maximum concerns were related to fee. Fee included set-up fee as well as loan pre-closure fee.
Strong competition amidst lenders and an environment of low cash rate have together brought borrower demand towards previously unscaled peaks. An article on the website rebonline.com.au states that AFG, a premier mortgage broking company, has already crossed the $4 billion mark in home loans for the month of October.
One of the most reliable (and reputed) property comparison websites, finder.com.au, feels that the first home buyers (FHBs) in Western Australia will set the tone of property investment for their interstate rivals. As many as 90% of Western Australia’s first home buyers have set property purchase as their New Year resolution. They are a fiercely resolved lot and their desire to buy “interstate” may make life difficult for their peers in other states.
If the value of your home shoots up from $500,000 to $550,000 and the rent you ask for it remains the same, what gets eroded in the process is called rental yield. You know the grind. Cameron Kusher for the property Update suggests that gross rental yields in capital cities are expected to fall further in near future with home value growth decidedly outperforming rental growth.
