Coming up next week....

Hi Property Lovers

Coming up next week......

1. One of Nedlands finest properties...located in the 'Melvista' ward of Webster Street this sprawling family home oozes charm and class and is perfect for the larger family

2. A great 'Beach side' cottage located only minutes to the glistening water's of Cottesloe beach. Perfect accommodation of 4bedrooms 2 bathrooms.

3. A great townhouse located Nth of the Hwy in a quiet complex. This is perfect for the first home buyer or downsizer wanting a hassle free lifestyle.

If you would like any further information on any of these properties, please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.

House Prices Unlikley to Crash

Hi Property Lovers

I came across this great article on news.com.au regarding the outlook for Australian property. A real good read i think!

ONE of the great differences between the impact of the global financial crisis in Australia compared with Britain and the US is that our residential property prices have not been crunched.

It has been so bad in the US that nearly 30 per cent of US homeowners have a mortgage worth more than the value of their home and Deutsche Bank is expecting that figure to rise to almost 50 per cent of homeowner by the end of 2011. No wonder American consumers aren't spending when the value of their biggest asset is plunging. But while we seem to have avoided a property crunch, the International Monetary Fund is warning us not to be complacent because it claims Australian residential property is over-valued by 20 per cent and could be hit soon. Thankfully, we don't think the IMF understands our real estate sector that well. It is very unlikely that the Australian residential property market will plunge anywhere near the extent of that in the US, because we haven't been through a huge construction boom, borrowers haven't leveraged themselves to quite the same extent and we have strong immigration to underpin demand.

But, and it is a big but, the tightening of bank finance will have an impact on residential property values. Again, it makes sense. It is simple investment fundamentals. The banks are starting to ration credit that means they're making it more difficult for people to borrow money. The banks are lifting their standards.

DO you agree that house prices won't crash? Tell us below.
We're starting to see the good old-fashioned request for a 15-25 per cent deposit on a home loan and mortgages where the repayments must be less than 30 per cent of the borrower's income. Tightening the criteria for home loans means fewer borrowers will be eligible for a loan than before, so there will be fewer potential buyers and less competition in the market. Even so, the combination of low interest rates and the incentives for first-home buyers is certainly helping keep buyers in the market. Last week's housing finance figures saw new housing loans at 17-month highs and loans for new home construction at a seven-year high as first-home buyer grants from the federal and state governments kicked in.
That's great news for the property market and the wider economy. The only concern is the property bubble at the first home-owner end of the property market for existing homes could deflate when these incentives finish.

Hopefully, investors will come back in to the market at that time and fill any void that first homeowners leave. First-home buyers still account for 27 per cent of all new home loans being written, while investor lending continues to fall. Investors should come back to the market in the not too distant future as interest rates stay low, the share market continues to improve and rents remain high. The key is the rental market. As vacancy rates stay low and rents continue to rise, investors will start to trickle back in to the property market. A problem at the moment is that many investors target the currently inflated first-home buyer unit market and are simply waiting for that to cool off before they move in. The banks are also keeping a lid on new property construction.

While tougher lending criteria limits the number of buyers in the market, that same credit squeeze is restricting the number of new developments being built and creating a property shortage. If demand outstrips supply, a floor is put under property values and in turn investors are attracted back in to the market. So while Australian property values are high by world standards, and you can understand the IMF's concerns, current market conditions are more likely to protect property values for the foreseeable future. But don't get complacent. Conditions can change quickly and that's why any spare savings should be directed to bring down home loan commitments to a more manageable level. The one thing you don't want to be at the moment is a forced seller.

This information was gathered from:
http://www.news.com.au/business/money/story/0,28323,25924211-5013951,00.html

Thinking of buying or selling in Nedlands? Call me anytime.

Busy Busy Busy!!!!!

Hi Property Lovers

Sorry about the lack of updates, its been a real busy month in our office with 20 sales in 27 days...August being traditionally the slow month in real estate this is a great out come!

I have some great properties coming up in the next several weeks including large family homes on both the Nth & Sth of the Hwy, a great unit Nth of the Hwy perfect for the first home buyer, a great executive town house in Claremont, beach side homes in Nth & Sth Cottesloe and a few more very special properties!

I also currently have a great selection of properties in Nedlands including 2 brand new townhouses and 1 brand new penthouse, a rare Nedlands single level gem amongst great gardens and courtyards, a modern & contemporary home perfect for the small family and Claremonts best downsizer within walking distance to the heart of it all!

If you would like any further information on any of these great properties, please don't hesitate to contact me!

Thinking of buying or selling? Call me anytime.

"Be Ready for Rate Rises"

Hi Property Lovers

I came across this article regarding the outlook of interest rate's and though it was a good read.

Preparation is the vital ingredient for borrowers when it comes to potential interest rate rises, according to Mortgage Choice.

The mortgage broker's senior corporate affairs manager, Kristy Sheppard, suggests the Reserve Bank of Australia will increase the cash rate in the not-too-distant future and she says banks have shown they're willing to move rates up independently of that.

"Looking at important economic factors such as growing housing finance demand, increasing housing values, unemployment not rising to the extent predicted so far, retail sales moving along at a decent pace, underlying inflation outside the target range and improving consumer sentiment, I wouldn't be surprised if the cash rate increased before the end of this year."

"I'll be surprised if the cash rate hasn't risen by the end of the March 2010 quarter."

In order to prepare for potential rate rises, Sheppard says it's firstly a good idea to repay your mortgage at a higher than necessary level and make as many extra payments as possible.

"That will provide you with a financial buffer should you find it challenging to incorporate rate rises into your budget at some point in the future."

"Second, look at restructuring your loan to incorporate, say, an offset account or other feature that may help make a positive difference to the loan amount."

It's also important to compare your loan to a wide range of other mortgages to make sure there isn't a better one out there that can save you money and provide you with better features, according to Sheppard.

This information was gathered from Australian Property Inspector:

http://www.apimagazine.com.au/api-online/news/2009/08/be-ready-for-rate-rises

Thinking of buying or selling in Nedlands? Call me anytime.

For Sale 39 Elizabeth Street, Nedlands

Hi Property Lovers

I would like to introduce to you a true Nedlands Gem. Awash with morning sunshine, this charming single level home on 675sqm, features spacious free flowing interiors, near new kitchen, private sunny court yards and loads of potential to further enhance this great home.

Accommodation: 3 bedrooms 1 bathroom open plan kitchen and living, formal lounge and dining, courtyards & double secure lock up garage.

This single level home is the perfect downsizer in the perfect location. Offering a charm to the property most homes will never get!

For Sale $1,650,000

To arrange a private viewing or to get any further information, please don't hesitate to contact me anytime on 0411 645 174

Thinking of buying or selling in Nedlands? Call me anytime

UNDER OFFER 1/18 The Avenue, Nedlands

Hi Property Lovers

1/18 The Avenue, Nedlands is now UNDER OFFER.

For further information, please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.

Buying an Investment Property

Hi Property Lovers

I came across this guide today regarding buying an investment property. It gives some great insight and tips.

The number of property renters in Australia is rising as homes become less affordable to buy. This is good news if you own an investment property because maintaining a good occupancy rate is crucial to your investment success.
During the property boom of the 1990s, investment properties were all about capital gains; properties often jumped in value whatever you bought. That’s no longer the case. Now that the boom has passed, investors need to be more selective about the properties they buy.

Step 1 - Location

For a successful investment, you must acquire the right property in the right location at the keenest possible price and with its long-term viability in mind - in both terms of good rental potential and capital growth.
Check for proximity to transport facilities, schools, shopping centres, sports and entertainment facilities and areas of future jobs growth.
The property needs to be located in a safe, clean, attractive environment and the area will have an already established high rental demand.

Step 2 - Buy quality

The quality of the property is crucial.
The building must be appropriate for the market - for example, with at least three bedrooms if located in a family rental area, or with some security if inner-city high-rise.
It should be well-built (brick and tile is desirable) and have low maintenance buildings and external areas (check that the gardens and any other outdoor areas are in good order).
If it is an apartment, make sure it is large enough to meet the approval of your bank or lending institution.

Step 3 - Gross versus net returns

You’ve collected your rents (the gross return or yield) and now it’s time to pay out all your investment expenses.
You are then left with the net return or yield. This net return is this figure you need to capture regularly in order to understand how your investment is travelling.
While rents may not rise so quickly, sometimes the cost of the investment fluctuates and it is this you must keep a close eye on.
A quick way to calculate the net return is to determine the gross rental and then deduct 25 per cent (for outgoings such as rates, insurance, maintenance and body corporate levies). This gives you a rough idea of the net return before tax.

Step 4 - Coping with vacancies

Around 30 per cent of all Australians are renters, providing a huge pool of around 5.4 million people who are housed in or looking for rental accommodation.
Vacant properties can spell real trouble for the investor and are a security risk.
You should calculate on a loss of around 2 per cent of your gross possible returns for each vacant week.
However, a well kept, appealing property in good condition and in the right area should not be vacant for long periods.
If you are managing the property yourself and having difficulty finding tenants, you might want to approach some local property management agencies to see if they can help (for a fee, of course).

Step 5 - Triggers for failure

• The purchase price was too high.
The property is in an area of low capital growth potential.
• The property is too high maintenance.
• The rent is too low.
• Vacancy periods are too long or too many.
• The loan taken out was structured wrongly.
• Some tax deductions are missed.

Step 6 - Top tips

Because of depreciation entitlements on properties (including the purchase price, the construction price and the land value), units generally provide higher depreciation and can often provide a better return than houses.

Revalue your properties every year, so that you can use your additional equity to negotiate a larger loan which you can reinvest in another rental property.

If you find the right property, buy it. Don’t be put off by the economic cycle. Even in the worst recession, there is always a suburb growing in value and producing good rent.

This information was gathered from:
http://www.news.com.au/business/money/story/0,28323,22601258-5013966,00.html

If you would like any further questions regarding investment properties, please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime

"Normality Returns to Perth Market"

Hi Property Lovers

I came across this article on Australian Property Investor, althouygh it doesnt reflect 'too much' on the Western Suburbs...it does give you an outlook on what is happening to the overall property market in Perth.

The Perth housing market was one of the hardest hit by the global financial crisis but it's reported to have now returned to normal.

The Real Estate Institute of Western Australia (REIWA) says a surge in sales activity has restored market turnover to the 15-year average after sales slumped through all of 2008.
According to the REIWA's latest data, the median sales price increased by 4.6 per cent in the June quarter to reach $450,000.

President Rob Druitt attributed much of the activity to first homebuyers, which had a significant knock-on effect to trade-up buyers and the overall market.

"The number of First Home Owner Grants paid in the June quarter reached a record high for the nine years it has been in existence, with 4387 approvals for existing homes and 2237 approvals for building grants," he says.

"Trade-up buyers generally need a first homebuyer to buy their existing home, so they can sell and upgrade."

"The current demand by first homebuyers has therefore resulted in trade-up buyers storming back into the market. This means that an increased number of buyers are now purchasing more expensive properties."

"The result of all of this is that sales turnover is up by 60 per cent on the same time last year, while the number of properties for sale is down by 26 per cent over the same period."
Druitt says the increased activity has been soaking up the excess stock built through the speculative construction boom of 2004 to 2007 and there is now a much better balance between supply and demand.

The median price of units and apartments increased by nine per cent over the June quarter, rising from $349,000 to $380,000.

Median rents in Perth have stayed steady at $360 a week; the vacancy stretched out to 3.5 per cent.

This information was gathered from

http://www.apimagazine.com.au/api-online/news/2009/08/normality-returns-to-perth-market

Thinkif of buying or selling in Nedlands? Call me anytime.

Coming up soon.....A TRUE NEDLANDS CLASSIC

Hi Property Lovers

I'm very pleased to present to the market a TRUE Nedlands classic! This single level home offers everything a family home needs. The accommodation is perfect with 4 large bedrooms, study, 2 bathrooms, open plan kitchen meals as well formal lounge & dining, alfresco area and double car port....all on a massive 1012sqm block.

Located in whisper quiet street and only a short drive to Claremont, this home offers a lifestyle to suit every walk of life!

To get any further information on this property, or to organize a private inspection please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.

Street Report-Napier Street, Loftus Street & Loch Street.

Hi Property Lovers

This weeks street report is focused on Napier, Loftus & Loch Street. As per usual i will be focusing on sales from 2007 to present.

NAPIER STREET

1 Napier sold for $1,050,000 on 22.22008

61 Napier sold for $1,050,000 on 18.11.2007

LOFTUS STREET

9 Loftus sold for $1,700,000 on 13.4.2008

LOCH STREET

4 Loch sold for $950,000 on 2.7.2008

23 Loch sold for $1,150,000 on 2.8.2008

26 Loch sold for $900,000 on 5.10.2007

28 Loch sold for $1,200,000 on 29.3.2008

40 Loch sold for $1,075,000 on 20.5.2008

63 Loch sold for $1,150,000 on 2.7.2008

If you have any further questions regarding any sales of these properties, please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.

Where Will Rates Go?

Hi Property Lovers


I came across this article on Australian Property Investor about where rates might possibality be? Ive attached the entire article for your referance.


In 12 months from now interest rates will sit at around the same level as they are now, according to BIS Shrapnel senior economist Jason Anderson.

"From a cash rate point of view we're not factoring in any rises in the cash rate over the next 12 months," he says.

"In a year from now they'll still be the same as they are now roughly."

"But it's hard to predict what the banks will do – the 'cost of funds' issue remains a factor for them.

"Possibly from the bank rate point of view (interest rates) could go up a bit."
Anderson notes that the weakness in the Australian economy is the business investment constraint.

"There's a lot to work through in terms of the decline in business investment, we're only a few months into that process."

"There's a huge gap to be made up there somewhere else in the economy and housing is the number one target to make up that gap."


This information was gathered from
http://www.apimagazine.com.au/api-online/news/2009/08/where-will-rates-go


Thinking of buying or selling in Nedlands? Call me anytime.

For Sale 5 Doonan Road, Nedlands

Hi Property Lovers

I'm very pleased to present to you Nedlands most 'Stylish' downsizer! Located in a highly sought after location this hassle and burden free home offers the lifestyle you have always dreamed about!

Accommodation: 4 bedroom, 2bathroom, study, formal entry, gourmet kitchen, meals, lounge, alfresco & double secure lock up garage.

This is your perfect chance to experience an invitingly carefree lifestyle...spend more time doing the things you want with this extremely low maintenance home......

For Sale $1,695,000

If you would like to arrange a private inspection or would like any further information on this property please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.

Sales for July

Hi Property Lovers

Traditionally July is a quieter month in the Western Suburbs for Real Estate......But that certainly wasn't the case for this year. Over the past several months we have seen a great confidence return to property, especially in the Western Suburbs.

This month Nedlands had a total number of 13 sales with a value of $20,213,000.

If you would like any further information regarding Nedlands or and other Western Suburbs performance in July please don't hesitate to contact me.

Kind Regards

New Laws-Residual Current Devices (RCDs)

Hi Property Lovers

New regulations under the Electricity Act 1945 that take effect on 9 August 2009 require homes to have two residual current devices (RCDs) installed at the time the ownership is transferred or, when a new rental lease is made.

RCD's SAVE LIVES

RCDs monitor the flow of electricity from the main switchboard and prevent electrocution by cutting the electricity supply if an imbalance in the current is detected. By installing two RCDs, the property’s circuits can be divided evenly between the two. This ensures some light and power remain if one RCD operates and also minimises faulty operation from appliances which have low-level leakage current. All properties constructed from the year 2000 should
already have two RCDs fitted.

HOMES FOR SALE

From 9 August 2009, two RCDs must be fitted to protect all power point and lighting circuits in all homes before the land title is transferred. If you are planning to sell your home and it does not already have two RCDs protecting all power point and lighting circuits, you will need to engage a licensed electrical contractor to fit two RCDs to the main switchboard or distribution board.

TESTING FOR RCD

All RCDs have a test button which should be pressed every three months. Pushing the test button simulates an earth leakage fault and indicates whether or not the RCD is operating correctly. Electric clocks and timers will require resetting after each test.

COST OF RCD'S

As a guide, it should cost no more than $500 to supply and fit two single-phase RCDs in an average sized 4x2 home.

COMPLIANCE

Electrical inspectors will monitor homes sold or leased for compliance. Penalties of up to $15,000 for individuals and up to $100,000 for a body corporate may apply if the regulations are breached.

If you would like any further information on these changes, please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.

Street Report-Weld Street, Robinson Street & Ord Street

Hi Property Lovers

This weeks street report will be done on Weld, Robinson and Ord Street. As per usual I'll be focusing on sales conducted from 2007 till present.

WELD STREET

11 Weld Street sold for $1,505,000 on 11.8.2007

16 Weld Street sold for $1,250,000 on 21.7.2008

41Weld street sold for $1,008,000 on 23.4.2009

45 Weld Street sold $1,980,000 on 24.8.2008

ROBINSON STREET

8 Robinson Street sold for $1,015,000 on 9.5.2007

30 Robinson Street sold for $1,075,000 on 10.3.2009

ORD STREET

29 Ord Street sold for $1,730,000 on 24.4.2008

If you would like any further questions on any of these sales please don't hesitate to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.

COMING THIS WEEK

Hi Property Lovers

Coming up this week........ Nedlands most 'Stylish' downsizer located South of the Hwy in a highly sought after location...

More details coming up later this week!

Thinking of buying or selling in Nedlands? Call me anytime.