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Eden Real Estate

Will Real Estate Property Momentum Continue in 2014?

The combination of low interest rates, foreign buyers, upgrader enthusiasm and investor momentum saw 2013 emerge from its property holding pattern and the market become reinvigorated.

RP Data analyst Cameron Kusher said he believes momentum in property will continue into the new year, propelled by investors and upgraders.

He also believes values will climb further, though not as sharply in 2014. Another of his predictions is that gross rental yields in Sydney and Melbourne will continue the decline they commenced in latter 2013, leading investors to look at alternative growth zones. These are good tidings for the Far South Coast of NSW.  The last few months of the year had seen keen interest in the area, with properties that were priced right being snapped up, some as soon as they came on the market.

However, Mr. Kusher issued a warning about other economic wild cards, like the unemployment rate, stating  “If it reaches 6.25% it will be the nation’s highest unemployment rate since September 2002. If people start to become nervous about their job security it is likely to result in a lower level of demand for housing.”

Rates are at their lowest levels since the 1960s and inflation is currently at 2.2%.  Keep in mind that the Australian interest rates don’t operate in a bubble – they respond to what’s happening in the global economy. The recent fall of the Australian dollar of 2.5 cents against the U.S. dollar as a result of the U.S. winding back its stimulus is a reminder that inflation could increase if the dollar keeps falling and the cost of imports increase. If inflation increases we could see a rise in interest rates.   The all important question now is whether the RBA will increase or decrease rates, or leave them as is in the new year.

With keen interest from both local buyers and those from interstate in Merimbula, Bega, Tura Beach, Eden and Cooma and the current low interest rates together with confidence in the real estate market, vendors should not delay listing their properties for sale.  Now is a prime time to sell.

Yield The Golden Word When Buying an Investment Property

There’s no doubt that yield is the golden word for investors.  Other things may come into play, such as lifestyle or infrastructure potential, such as the Bega Hospital and Eden Wharf developments, but the income return on the property is usually the major concern for the purchaser.  The Sydney market has been hot for investment properties to the extent that Investors are crowding each other out, resulting in a slight drop in yields.  That gives regional towns on the South Coast and Monaro such as Bega, Merimbula, Tura Beach, Eden and Cooma the inside track for investors looking for positive returns.

Yield is generally calculated annually as a percentage.  It is based on the asset price or market value of a property. The gross yield is the income (i.e. rent) derived from the investment before expenses are taken out.  The net yield is the income less expenses. These expenses could include stamp duty, legal fees, pest and building inspections, repairs and maintenance, property management fees, insurance, rates, strata management fees.

The yield is stated as a percentage and is worked out as –
Gross yield = annual rental income / property value x 100
Net yield = annual rental income – annual expenses / property value x 100

The return or total return includes capital gains. It is quoted as a percentage and is retrospective, based on the gain or loss of the investment during a particular period.

Increasing housing demand drives property prices up and this can affect the yield of an investment. The more prices go up, the lower the percentage between rents (income) to property value. According to Australian Property Monitor’s figures for the September quarter, this is exactly what is happening in Sydney right now. With the current low interest rates many investors are considering purchasing property for negative gearing. Purchasers should ask the right questions of Real Estate Agents to ensure they know the likely net yield on a property before they purchase.

What’s the difference between Fisk & Nagle First Choice, Politicians and Other Real Estate Agents?

Politicians make all sorts of promises in the lead up to an election, trying to convince you that they’re the best choice. We all know how often those promises fall flat!  Real Estate Agents can promise you the world as well.  But with a ramped-up spring selling season underway, you don’t want to make the mistake of listing with an ineffective Agent and “miss the boat”.
So let’s push the promises aside and look at some facts:

1.    We won’t charge you a Marketing Fee
2.    Our online marketing strategy will give your home a higher profile than other sellers
3.    Your property will be on more websites than any other local agent.
4.    We use Youtube and Facebook to attract more buyers
5.    Qualified Buyers are emailed when you trust us to sell your home

1.    We get Home Sellers more money in their pocket and we can prove it
2.    Our Sales Consultants train EVERY week in negotiation, relationship-building and client care
3.    Our Sales Consultants have a hotline to industry mentors which gives us the negotiation edge
4.    If a Buyer asks “What will they take?” we answer “The advertised price”.

Client Care
1.    We won’t lie to you, “buy” your listing or ask you to accept an offer from a “tyrekicker”
2.    We use hard evidence to justify the suggested selling price
3.    If we don’t live up to our promises, you don’t have to pay us

Profile & Experience
1.    Fisk & Nagle First Choice has been operating for 40 years
2.    With five offices across the Far South Coast and Cooma, we have better exposure and bigger reach than any other agent in south-east NSW.
3.    Our offices hold the most prominent position in Bega, Cooma, Merimbula, Tura Beach and Eden
4.    Our signage and window displays are bigger, brighter and more noticeable than other agents

Who will you elect to sell your home?

Real Estate Institute Backs Reducing Stamp Duty on Property Purchases

In May Representatives of the Real Estate Institute of NSW,  President Christian Payne and CEO Tim McKibbin met with New South Wales Treasurer Mike Baird to discuss how the New South Wales Government can  help stimulate the property market in NSW.

Amongst a range of issues discussed the Real Estate Institute of NSW put forward the argument that reducing stamp duty will stimulate real estate purchases and result in increased revenue to the NSW Government.  On their website the REINSW states –
“REINSW believes that the best way to bolster the NSW economy is for the State Government to act now and cut the rate of transfer stamp duty in order to stimulate transactional activity in the property market and as a result potentially boost state revenue by hundreds of millions of dollars.“

They cite the outcome for Governments that have introduced stamp duty cuts. For example:

  •  The ACT cut the top rates of transfer duty by 0.75 per cent last year, resulting in nearly $28 million in additional transfer duty this year.
  • Between 2006/07 and 2008/09 the Northern Territory cut their property transfer duty rates by0.45 per cent reaping an increase of more than $22million in revenue.
  • Western Australia also cut property transfer duty rates by 0.9 per cent and found that revenues rose by more than $709 million during the period.

This is strong evidence that decreasing property transfer duty rates does indeed boost revenue.  The REINSW also suggested at the meeting that the NSW Government should reinstate the first homebuyers’ incentives for purchasing existing properties. They felt that limiting the grant to cover purchase of new properties only had been a failure, causing a detrimental impact on the NSW property market.  Their position is that the Government should take steps to improve housing affordability, which will consequently improve the New South Wales economy.

Census Stats on Bega Valley Shire of Interest to Purchasers and Vendors

For those of you who live in the Bega Valley Shire and those of you who are considering purchasing a property in the Bega Valley Shire here is some interesting information from the last census conducted in 2011.  The population for the shire is 31, 950 made up of 50.1% females and 49.1% males.  There are 16,866 dwellings in the shire.  Breaking it down into the towns that Fisk & Nagle First Choice Real Estate sell real estate in we find that …..
Bega –
Bega is thought to be named from an Aboriginal word meaning “big camping ground”.
It has a population of 5052 people and 2263 dwellings.  Of the people living in Bega in those dwellings on census night in 2011 we find that 38.9% are families, 25.2% are couples without children and 28.5% are singles.  Visitor only dwellings represent 1.4%.
Bega rural –
Has a population of 2082 with 770 dwellings.  Within those dwellings we find that on census night 2011 43.4% were families, 33.9% were couples without children, 17.7% were singles and 7% were visitor only accommodation.

Eden Coast –
Eden is thought to be named after the family name of Baron Auckland, British Secretary for the Colonies. It has a population of 3758 with 1967 dwellings.  On census night 2011 20.4% of those in the dwellings were families, 35.2% were couples without children and 26.3% were singles.  Visitor only dwellings represented 3.9%.
Merimbula – Millingandi and district
Merimbula is thought to be named from an Aboriginal word meaning “big snake” or “place of two waters”. It has a population of 4172, being the highest density of population in the shire. There are 2726 dwellings and 21.5% of those domiciled in the dwellings on census nights 2011 are families, whilst 32.1% are couples without children and 31.1% are single.  Visitor only accommodation is 7.1%.

Tura Beach – Mirador and district
Has a population of 3272 with 1706 dwellings.  On census night 2011 26.8% of the population in dwellings were families, 47.2% were couples without children and 23.1% were singles.  Whilst only 1.3% were visitor only dwellings.
Vendors and Purchasers will find these statistics of value as they paint a picture for each of the towns in the Bega Valley Shire.  Further information available at http://profile.id.com.au/bega-valley?WebID=190

Five Step D.I.Y. Renovation Success For Real Estate Sale

Planning on selling your property and want to update it or have you just purchased your new home and now you want to remodel it to suit your tastes and needs?  If you want to go D.I.Y. the most important thing you can do is plan!  It is so easy to rush in and begin renovating with all the enthusiasm in the world but you’ll soon burn out or run out of money if you don’t step back, take your time and plan properly before you even pick up a paint brush or drill.

1.    Ask Yourself Can I Do It?

Can you really do the job, ask yourself honestly’ Can I do this?’ Look at the overall project and your skill set, do they match? Think about all the aspects of the project, what may go wrong and what skills you have to overcome any problems. You may opt to employ a tradesperson for some parts of the project, whilst you complete the easier tasks, such as painting.

2.    Set A Realistic Budget
When working out your budget take into account that some things may cost more than you expected and you may encounter extra work that needs to be done.  Be generous when assessing costs and add at least 20% buffer to your budget so you don’t run out of money before the renovation is complete. The more you research costs, the more realistic your budget will be.
3.    Design Freeze

Decide upon the project, exactly what you want to do – repaint the kitchen, replace the bench tops, install a dishwasher and new stove.  Don’t decide halfway into the project to expand on the original plan by adding new windows, blinds, flooring and walk in pantry. Your budget and timeline will be completely blown!  Freeze your design plans before you begin and stick with it.

4.    Have the Right Tools
This may be challenging as you probably do not own the tools that will make the work efficient and safe. You may need to hire or borrow the right tools for the job and you may not have the experience to use them safely. Make sure you get help to use the tools safely and correctly.

5.    Friendly Timeline
You may be feeling full of energy and want to ‘get the job done’ but remember if you are working or have other commitments you may have difficulty achieving a tight timeline. Most projects will take longer to complete than you first thought and you may not want to spend 3 or 4 hours at night doing renos after working 8 or 9 hours all day.

With good planning and a realistic attitude your renovation will bring rewards and give you satisfaction. If you are selling your property the remodel should help get you a quicker sale and good price.  Good luck!

Bed Tax Debate and the Far South Coast of NSW

Christmas and New Year are all behind us now and we can just chill out and enjoy the holiday season.  The holiday season has a big impact in tourism towns whilst other towns slow right down.  Tourist towns become inundated with people who bring money, energy and fresh ideas into town on the upside and on the downside can overburden the town’s roads, amenities and services.  Byron Bay experienced this to the extreme on New Year’s Eve, as has been well documented in the press.  Reporting in the Sydney Morning Herald on January 5-6, Saffron Howden stated that up to 20,000 people flocked to Byron for New Year’s Eve and generated 15 plus tonnes of rubbish “We literally had thousands of people parking in their cars, sleeping in their cars in suburban areas. For a lot of residents we lost our town that night” said the Mayor of Byron shire.
The idea of a bed tax has been proposed by the local Government Minister, Don Page, as a potential solution to the problem of stretched public resources in holiday villages such as Byron Bay but this has been ruled out by the Premier, according to his spokesman.  According to the Sydney Morning Herald Mr. Andrew Jeffries, the general manager of the Tourism Industry Council NSW, said the industry wouldn’t support a bed tax but a visitor economy rate levied more broadly across businesses in each affected council area and funnelled into a dedicated fun administered by local businesses and stakeholders would be acceptable.
This year Merimbula hosted New Year’s celebrations at Ford Oval with a family focus, bands played and two lots of fireworks entranced the crowds, one at 9.30pm for the children so families could get home early and the other at the traditional hour of midnight.  Judging by the large numbers that left the oval after the earlier fireworks the event was most popular with families.  This is a turnaround from New Year’s experiences many years ago when revellers caused mayhem.  It shows that considerate action by council can turn a difficult situation around completely for the pleasure and comfort of residents and visitors alike.

Bank App – Does it Work for Merimbula Property?

Have you seen the latest ad that one of the four big banks is running on the television recently? The one that has a couple taking a photo of their neighbours house while taking out the garbage? Or the mum pushing her son out of the car to chase a ball as a cover while she takes a photo of a property?

So what is it all about? The bank is advertising a mobile phone app that they released – it was actually released in 2010 but there were a few rumbles about boring things such as privacy…. anyway the app provides property information such as the last sale price and if it is for sale will direct you to the realestate.com.au listing. Quite clever really.

Walking the dog in your neighbourhood, see a house you like and wham! photo taken and at your fingertips all the information that you require. Who cares about real estate agents? What do we need them for?

Hmmm… so how accurate is this information? Hard to say. Testing would need to be done on a variety of property and then compared to data. It would be an interesting exercise to trial this app on the south coast to see whether it is predominantly a city thing or also applicable to outer regional areas.

I guess we shouldn’t be placing too much store by it. There is no doubt it is a helpful little tool and that is how it should be viewed – as one of many tools that those interested in the property market can use to help them establish the value of property. I believe that the true value of the app is in the usability factor. Being able to access information quickly and on the spot is invaluable.

However, how much assistance the app provides on accurate pricing is difficult to measure. Providing interested purchasers with the last sale price of a property is questionable. The house may not have sold for 30 years or have achieved an extremely high price due to an emotional purchase or a lucky vendor may have timed the peak perfectly and recorded a price that is unlikely to be repeated in the near future. And this is when you do need your real estate agent. They will be able to give you an accurate estimate of the value of a property at today’s market.

On the plus side gaining instant access to the listing on realestate.com.au is helpful and time saving. No handwritten notes, no searching for the property when you get home and no more tracking down the managing agent. All there at your fingertips with one press of the camera button.

And as for those nosy neighbours that use the device to find out how much you paid for your house? Pfft! let them – and then check out theirs!

‘When’ is a good time to sell?

We all have an opinion and thoughts (!) on when is the best time to sell. And so do others. Real estate agents will tell us that anytime is a good time to sell but how can we be sure that they are not simply promoting their own cause?
So when is the best time to sell?
Sometimes we are offered very little choice in the matter. The circumstances are such that the property has to be sold in the very near future. Or the date of sale is part of carefully calculated investment plan. Other times we can afford to hold off and wait for what we believe is the perfect time. Timing is everything. Right?
So lets delve down deeper into these scenarios.
Circumstances that require an immediate sell. Perhaps it is a deceased estate with anxious family members requiring their cut urgently, or you have landed that dream job … that is 2000 kilometres away. You know that the market conditions aren’t perfect and that there’s more than a small chance that you will have to sell at a loss. On past sales data you may believe that selling your property now will result in selling the property at several hundred thousand less than what you perceive the property to be worth. So what do you do?
Conduct some research. Sure look at past sales data and think rather nostalgically about what could have been. Then place on your reality hat. Look at what properties in your area are currently selling for and work out an estimate. (A real estate agent can be helpful here.) Do the sums. If you decide to hold onto the property until the market improves then consider the costs involved. How much will your property need to increase by or earn to cover the rates, interest payments, alternative rental arrangements etc? You may find the outcome surprising. Then consider the future:- what do you know of the future? Are you sure that the property will increase in value? What if it doesn’t?
If you will be needing accommodation where you are moving to then do some research on the area that you intend to move to. Is that market mirroring what is happening in your area?
Sometimes when we sit down and remove emotion from a decision a logical answer is immediately apparent. The old adage of buying and selling on the same market is certainly applicable. Sure you may be taking a loss on the sale of your property but you may also have greater purchasing power when it comes to buy. And then there are the subjective factors to consider. By holding off on the sale of your property and renting in a new area are you merely forestalling a decision? And how does that impact on your family? Will it help your family to settle in their new area if they have a patch of their own?
Date of sale is part of carefully calculated investment plan. This is always a rather risky approach to real estate investment. Buying real estate on the premise of improving or renovating in order to make a capital gain is a decision that needs to be made on thorough research and preferably – some experience. You need to be aware of the potential selling price before you embark on such a decision and to have made realistic budgeting decisions that also include an amount of profit for all your hard work and the level of risk involved.
So what do you do if you have researched, planned, budgeted, worked your shirt off and now have a seriously upmarket and trendy property ripe for sell, only to discover the flattening news that sales in your area have fallen by a rather depressing 18%? The experts will tell you that when you share trade that you should always have a sell out position. I would extend this proposition to property investment. Always have a back up plan. Be prepared to buy and hold. Don’t over commit yourself. Or, if you have to sell then be realistic that you may have to take a loss and price the property at a market level. If you try and hold off or set too high a price you may find yourself stuck with a property that you don’t want to rent, can’t sell and week by week are selling your soul to the bank for. Better to take a loss in the immediate future than an even larger one in twelve months.
Wait for what we believe is the perfect time. Ah…. the perfect timing! So please someone explain to me … when is the perfect time? Is it when the market conditions are right, is it when the garden is fully established or the kids have left home? Timing is subjective and is relevant to people in different ways. What appears to you to be perfect timing may not be to your fellow neighbour. And timing the real estate market is the same. There is no perfect time. The perfect time to sell is the time that suits you and your family best. While we all strive to achieve the highest price and at times are guilty of placing our lives on hold in order to do so …. perhaps it is more practical to make real estate decisions not purely by financial reasons alone? They say that selling real estate is an emotional decision. If you are not a highly skilled and energetic property investor then perhaps it would be wise to base a decision on ‘when is the best time to sell’ on a number of factors. Consider financial – potential gains versus potential losses. Emotional – how does this decision impact on my family and me? And objective – given the information I have discerned from emotional and financial – what is the best decision for me?

Fisk & Nagle First Choice Real Estate always advises buyers and sellers of property to seek independent financial advise.

Fisk and Nagle Real Estate Tips- Pets in Rentals

Finding a rental property in Eden, Bega or Merimbula that allows pets can be difficult. Many landlords in the area are skeptical when it comes to letting pets in their rental properties. Here are some tips to help you find a pet-friendly property.

1. Before getting your hopes up and wasting everyone’s time (including your own), ask the real estate if pets are allowed in the rental property.
2. Talk to the property manager. They often know the landlord personally, and whether or not they may allow certain pets (like birds, or small dogs).
3. Don’t look at units or townhouses. They are managed differently and will not allow pets to live on the premises.
4. Include a few extra items in your application to ease the landlords mind. These can include a photo, a pet-bond and any written references from past landlords in regards to your pet.