Monday, October 31, 2016
Growth in rents is the slowest for some decades.
At its meeting today, the RBA decided to leave the cash rate unchanged at 1.5%.
The global economy is continuing to grow, at a lower than average pace. Labour market conditions in the advanced economies have improved over the past year, but growth in global industrial production and trade remains subdued. Economic conditions in China have steadied recently, supported by growth in infrastructure and property construction, although medium-term risks to growth remain. Inflation remains below most central banks’ targets.
Commodity prices have risen over recent months, following the very substantial declines over the past few years. The higher commodity prices have supported a rise in Australia’s terms of trade, although they remain much lower than they have been in recent years.
Financial markets are functioning effectively. Funding costs for high-quality borrowers remain low and, globally, monetary policy remains remarkably accommodative. Government bond yields have risen, but are still low by historical standards.
In Australia, the economy is growing at a moderate rate. The large decline in mining investment is being offset by growth in other areas, including residential construction, public demand and exports. Household consumption has been growing at a reasonable pace, but appears to have slowed a little recently. Measures of household and business sentiment remain above average.
Labour market indicators continue to be somewhat mixed. The unemployment rate has declined this year, although there is considerable variation in employment growth across the country. Part-time employment has been growing strongly, but employment growth overall has slowed. The forward-looking indicators point to continued expansion in employment in the near term.
Inflation remains quite low. The September quarter inflation data were broadly as expected, with underlying inflation continuing to run at around 1½ per cent. Subdued growth in labour costs and very low cost pressures elsewhere in the world mean that inflation is expected to remain low for some time.
Low interest rates have been supporting domestic demand and the lower exchange rate since 2013 has been helping the traded sector. Financial institutions are in a position to lend for worthwhile purposes. These factors are assisting the economy to make the necessary adjustments, though an appreciating exchange rate could complicate this.
The Bank’s forecasts for output growth and inflation are little changed from those of three months ago. Over the next year, the economy is forecast to grow at close to its potential rate, before gradually strengthening. Inflation is expected to pick up gradually over the next two years.
In the housing market, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments. Turnover in the housing market and growth in lending for housing have slowed over the past year. The rate of increase in housing prices is also lower than it was a year ago, although prices in some markets have been rising briskly over the past few months. Considerable supply of apartments is scheduled to come on stream over the next couple of years, particularly in the eastern capital cities. Growth in rents is the slowest for some decades.
Taking account of the available information, and having eased monetary policy at its May and August meetings, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.
What do the RBA interest rates really mean for you?
Saturday, October 29, 2016
19 Tower Street Springwood Qld 4127 - Duplex/Semi-Detached for Sale #123726066 - realestate.com.au
19 Tower Street Springwood Qld 4127 - Duplex/Semi-Detached for Sale #123726066 - realestate.com.au
http://www.facebook.com/pages/LJ-Gilland-Real-Estate-Pty-Ltd/169194919788253http://www.ljgrealestate.com.au
http://www.facebook.com/pages/LJ-Gilland-Real-Estate-Pty-Ltd/169194919788253http://www.ljgrealestate.com.au
Friday, October 28, 2016
SPRINGWOOD-THE COMPLETE DUPLEX PACKAGE – AN OPPORTUNITY HERE FOR AN AS...
http://www.facebook.com/pages/LJ-Gilland-Real-Estate-Pty-Ltd/169194919788253http://www.ljgrealestate.com.au
Wednesday, October 26, 2016
The ‘Spring rush’ – a period where buyers come out of hibernation and actively get on board the property circuit to search and secure the ideal abode.
Despite significant shifts in Australia’s property market in recent years, there is one trend that continues to live on – the ‘Spring rush’ – a period where buyers come out of hibernation and actively get on board the property circuit to search and secure the ideal abode.
Ahead of the annual ‘buyer surge’, September typically sees more properties being listed and in higher numbers. In September 2015, 26,829 new properties were listed across major cities in the first 28 days of the month – a 4.8 per cent lift on the previous 12 months, according to CoreLogic.
Auction numbers equally tend to increase, with more than 11,600 listings sold at auction in September 2015, says Pricefinder. This trend is continuing as we move through September 2016, with auction clearance results in major cities including Sydney and Melbourne reaching 80 per cent or higher, according to Domain.
With more properties being listed and sold, is spring the best time to buy? Property investor Brenton Tidow says anytime is a good time to buy but expect spring to be a busy buying period. “While there will be differences across metropolitan and regional markets, spring is an ideal time to sell not buy. It’s a fine double-edged sword, as the surge in spring buyers brings about increased competition, which can hike prices and put pressure on budgets.”
An investor since the age of 21 Brenton says buyers, whether owner-occupiers or investors, need a strategic and less emotional approach to the property process. “While it’s been said before, I see too many buyers buying investment properties with their heart on their sleeve.
“I look for properties that are cash flow positive or neutral with great capital gains potential. My approach is to ‘buy and hold’ a property for at least one full property cycle, somewhere between seven and 10 years. While this is my aim, there are always exceptions. For instance, I recently bought a property in Newcastle NSW and sold this within the first twelve months for a healthy profit,” says Brenton.
Unsure about buying in spring? Here, Brenton offers five reasons why spring may not be the best time to buy. “Buyers can use this as a guide as they consider their options,” says Brenton.
Expect asking prices to hike: “It’s important that buyers plan for an increase on advertised sale prices in spring. If the type of property you’re interested in is appealing to a similar buyer demographic, then expect those properties to attract increased competition. In my experience, it’s ideal to be in the market before other buyers and to work with a trusted real estate or buyer’s agent that has access to a large number of listings on and off the market. If you can find a property off the market, you may likely get a better deal and beat the rush,” says Brenton.
Buyers have less negotiating power: Negotiating power usually lies in the hands of the seller in active periods such as spring, and properties sold at auction are often sold well above the asking price. “My advice to buyers is to negotiate hard and to negotiate like an investor. Also be prepared to accept the fact that your first and second choice in properties may fall through – but be objective, there will be other properties listed that appeal to your budget and ideals,” says Brenton.
Demand outweighs supply: In addition to a spike in seasonal competition, nationally we continue to experience a year-round supply and affordability issue. Brenton encourages buyers to not give up though. “There is a lot of re-zoning and infill activity currently underway, particularly along the fringes of major cities and CBD areas. Developers are buying large pockets of land and housing options are becoming more and more diversified. A great example is Kangaroo Point in Brisbane and Richmond in Melbourne,” says Brenton.
Buyers risk burnout: Buyer burnout can be a real symptom warns Brenton, often resulting from the buyer being overwhelmed by unexpected market competition and concerns over a budget blow out. “This can happen anytime there is a flurry in buying activity and can be distressing, especially for some buyers that are new to the property process, as well as families with children who need a property that suits multiple needs. In such times, I encourage buyers to be realistic and pull back. If you cannot find a purchasable property, consider renting for several months and return to the market after spring,” says Brenton.
Potential to impulse buy: “It is not uncommon to see buyers make purchasing decisions due to a fear of missing out on a great property amidst the competition,” says Brenton. “While you may miss out on your first choice it is unwise to be in a hurry to buy, or worse overlook the potential of the market in the months preceding Spring, when you may find a better deal. Ultimately, you want to buy a property that offers promising gains. For owner-occupiers and investors, if you can’t see yourself or tenants comfortably living in the property you’ve got your eye on, I suggest you don’t buy it.”
Brenton adds, “The property process is rarely smooth and straight. Finding the right property takes time, money and effort but it can be a lot smoother and manageable if you plan well. Ensuring you have access to a quality financial advisor, real estate or buyer’s agent as well as a property mentor, can help take a lot of pressure out of the process. Do your due diligence. Buying a property is a major life investment and is best done with a strategic rather than emotional mindset.”
See also:
Where to for the housing market in spring?
Auction clearance rates cool as spring volumes bloom
Don't wait for spring to sell
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