Newsletter - Inner Circle July 2023
Market News - RBA on hold (for now)
The Reserve Bank of Australia has left interest rates on hold for the time being but many analysts are saying that there may be one or two more rises possible this year.
The market still looks fairly robust thanks mainly to a lack of available properties for sale, keeping upwards pressure on housing values.
The flow of new capital city listings is around 10% below the previous five-year average while total stock on market is around 27% below average.
Residential prices are continuing their upward trend although the pace of growth eased in June. Melbourne prices were up 1.8% for the quarter while regional Victoria recorded a 1.3% drop.
In Sydney, home prices were up 4.9% over the last three months while prices were just 0.5 % higher in regional centres.
Queensland, South Australia and Western Australia all recorded solid if unspectacular rises.
Investor Alert: Tax Time
As we previously alerted, this year the ATO will be paying closer attention to the tax returns of property investors.
In their sights will be the correct allocation and reporting of expenses.
To help get you started, the ATO has released a resource for anyone earning money from property, shares or crypto assets.
Link HERE.
the small factor driving Australia’s rental crisis.
Australia’s rental market has undergone a profound shift thanks in part to a relatively small factor.
Read our CEO Miriam Sandkuhler’s analysis in Australian Property Investor Magazine.
Link HERE.
First home buyers: Beat the rent rise!
Rents are poised to continue their record rise over the next two years which is why we are seeing an uptick in the number of young buyers targeting the affordable end of the market.
Their thinking is pretty straightforward: higher rents are on the way so now is the time to beat the rise and stop paying off someone else’s mortgage.
The thinking is fine, unfortunately, we are seeing some first-time buyers buying up the wrong properties in questionable locations.
If you or someone you know is thinking of buying their first home, Property Mavens can help buyers find the right unit or house in these priority areas:
• Melbourne’s West
• Melbourne’s North
• Sydney’s West
• Ballarat, Bendigo, Geelong, and Albury-Wodonga.
Property Mavens can help first-time buyers with a budget of $500,000 or more and will help ensure buyers get the best bang for their buck.
Why you need an experienced buyers agent.
Mellissa and Graham wanted to secure their financial future but didn’t understand how they could best use the equity in their Sydney home.
They approached Property Mavens and our advice centred on finding a property focused on long-term capital growth with a moderate yield with the potential to improve rent returns.
OUTCOME
Property Mavens identified an off-market property and through our relationships with local agents, we were able to buy it under the budget we had been allocated.
Purchased: $25,000 under asking price off-market
Bought Jan 2021: $645,000
Current Value May 2023: $870,000
Capital Growth: 34.9% in just under 2.5 years
Rental Return: 4.84%
CLIENT: 10/10 Anjay was able to secure two investment-grade properties for which have done extremely well. It was our first time using a Buyers Agent and while he challenged us about where to buy, he made sure that the education was there so we were making an informed decision. We highly recommend that if you are looking for a home or Investment property to reach out to him.
Lessons from the vault - tom
Tom was seeking a property with the right attributes for strong capital growth and good cash flow.
He approached Property Mavens and we identified that with his budget, the best options were going to be houses in a regional centre like Ballarat.
We were able to successfully purchase this fantastic property with all the right attributes for a rewarding future.
And he’s off to a terrific start with his purchase scoring 8% growth in a market that had a poor year.
OUTCOME
Purchased: Secured $45,000 below asking price
Bought: June 2022 $600,000
Value: June 2023 $650,000
Capital Growth: 8.3%
CLIENT: 10/10 Really appreciated the professional expertise and advice that Miriam was able to provide. Negotiated a great price and contract on a property for me. Fast, efficient, great communication. I’ll be a returning customer in the future.
Is the time right for you?
If now is the right time for you to be a part of Australia’s property journey, get in contact with us for a free, no-obligation consultation.
Love to talk real estate?
If you want to invest or buy the right home for your budget, or sell your property click here to book a time, or call us for a chat about securing your financial independence.
Sign Up to our Inner Circle Newsletter here.
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Giving back..
At Property Mavens we choose to give back to help create social change within our business model. If you use our buyers or vendor advocacy services, you will be helping to make a positive impact within the local and wider community.
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