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Far South Coast 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:

Marketing
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

Negotiation
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

Should I Purchase Real Estate in Merimbula, Tura Beach, Eden or Bega?

When deciding whether to purchase real estate in the towns of Merimbula, Tura Beach, Eden or Bega in the area known variously as the Sapphire Coast, Bega Valley or Far South Coast the moniker shouldn’t really matter, it does however bring up visions of the region. The Sapphire Coast invokes images of sparkling blue waters, lakes, ocean, estuaries and all that goes with a coastal life such as swimming, fishing, boating, surfing, kite surfing and paddle boarding. The Bega Valley invites images of rolling green hills, dairy country, contented cows and delicious cheeses and other produce.  The Far South Coast makes one think of coastal life once again, lazy summer days, warmer climes and a relaxed lifestyle.  All of these images are within close proximity of one another – the coastal towns of Merimbula, Tura Beach and Eden are surrounded by rolling green hills, forests, farmland and great beauty whilst the town of Bega is the centre of the region, frequented by Farmers and country folk yet so close to the coastal towns that a dip in the ocean is a short drive away.

The lifestyle t throughout the region is simply great.  The other deciding factors when purchasig property are the economy, availability of work, affordability and investment opportunity. The Bega Valley Shire Council report that the major industries in the area are farming, forestry, fishing and tourism. Bega Cheese is headquartered in the Shire and is the area’s largest employer with annual revenues of $931 million in 2011.

There are other agriculture and primary sector producers proudly Bega-based. On average, Bega Valley Shire receives over 820,000 visitors annually, more than half of whom are domestic overnight visitors, spending around $255 million each year.

The Shire has almost fifty tourist accommodation establishments. Local accommodation establishments received 145,288 guest arrivals in the year to December 2009, which is up 4.0 percent on the previous year. These arrivals accounted for 301,572 guest nights and 152,564 room nights, which also equate to increases of 1.5 percent and 3.0 percent respectively over this same period.  Fisk & Nagle First Choice Real Estate have a good stock of investment properties suitable for holiday accommodation in Merimbula, Eden and Tura Beach.

By the end of the 2006/07 financial year there were 2,682 registered businesses in the Bega Valley Shire. Just over half were non-employing businesses (53.6 percent), while most (96.6 percent) businesses in the area had less than 20 employees. One in five local businesses sat within the Agriculture, Forestry and Fishery industry (19.8 percent). Construction (16.7 percent) and Property and Business Services (15.7 percent) also featured prominently in the area. There were numerous businesses in services sectors such as Retail (13.3 percent), Accommodation, Cafés and Restaurants (7.0 percent) and Health and Community Services (4.4 percent). Manufacturing comprised 5.6 percent of businesses.

Santa Comes Early with House Sales Pre-Christmas

The strong weekend auction clearance rate in Sydney of 61.7 per cent recorded by Australian Property Monitors on Saturday – the biggest auction day since March – took many by surprise reports Stephen Nicholls, Property Editor from Domain.com.au. He states the prospect of having more money to spend with last Tuesday’s interest rate cut may have been one factor in the improvement and he said “It’s interesting that 28.8 per cent of the auction sales reported to APM happened before the big day.”
Agent Teresa Natoli, of Ray White Surry Hills may be onto the main reason:”I think people want to get their stuff sorted before the end of the year” and Matt Lahood, the director of sales for McGrath Estate Agents, said the big jump in sold prior to auction transactions was reflective of the time of the year. “From a buyer perspective, it allows a purchaser to get set before Christmas and in some cases even move in,” Mr Lahood said.
Some believe that pre-christmas is a quiet time for real estate, but as the auctions and sold prior transactions in Sydney show it can be a good time for real estate sales. Properties purchased in tourist areas like Merimbula, Tathra Beach, Tura Beach, Pambula Beach or Eden can be immediately let for holiday rental over the peak season of January bringing in an income, which can help cover purchase costs and rates.
Vendors can be more open to offers at this time but purchasers should always make their first offer their best offer and it is advisable to seek finance prior to making an offer. Of course banks are busy at this time of year too, so time is of the essence.
A sale pre-christmas can benefit both the vendor and purchaser. A settlement for the vendor means less inspections and enquiry by tyre kickers during the busy holiday season and the chance for the vendor to relax and enjoy their own holiday knowing they have their property sold. The purchaser benefits by having the sale settled before Christmas activities take over and they can either let the property or enjoy a holiday in it themselves, or if they have purchased their family home, move in over the holidays when they have plenty of time to get settled in.

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.

The Internet Has Changed Selling Real Estate

Have you ever thought about how the internet has completely changed the way we buy and sell real estate? Many years ago, home sellers would choose to list their home with a variety of real estate agents. Buyers would walk into their local real estate agent’s office and be taken for a drive by an agent. They were often shown properties that were irrelevant to their requirements. It would take at least a week to find an appropriate house to buy. When an offer was agreed to, the real estate agents would have to drive to the seller to get contracts signed.

In the early 90’s, buyers would generally view properties for sale in a real estate agent’s office window. Sometimes they would use a box-like, large mobile phone to call and enquire. Sellers were more knowledgeable and were beginning to recognise the benefits of exclusive agency listings. The only way, however, buyers could view a property was by physically visiting it. There was no internet.

Every activity used a lot of time. Real estate agents took phooks, and had to wait for them to be developed. If the property was advertised in a local newspaper, the photos and blurb had to be physically handed to the editor. Ownership information had to be obtained, with council permission, from floppy discs. Hand written letters were written to owners, and envelopes sealed with tongues!

How the times have changed. The launch of the internet changed buying and selling real estate in so many ways. Real estate agents were given the opportunity to expose properties to a world-wide market. Ownsership information was instantly accessible, and digital photos could be emailed to buyers, newspapers, and be immediately available for potential buyers to view. There was suddenly more time to spend with customers. Today, the internet saves huge chunks of time. Buyers can sift through properties without even speaking to an agent. When a buyer wants to inspect a property they are usually ready to buy. They can even see what the surrounding houses look like on Google Street View. Social media like YouTube, Facebook and Twitter can expose a property virally, and real estate agents can communicate with both buyers and sellers more efficiently. Technology and the internet has changed the way real estate is bought and sold. If you want maximum exposure for your home, choose a real estate agent who uses the internet and is up to date with technology.

Fisk and Nagle Home Tips- Keeping Your Home Tidy

If you are planning on selling you home in Eden, Bega or Cooma, it must be tidy. These tips will help you stay rganised for those unexpected buyer inspections.

Regularly Throw Out Junk- Instead of doing one major junk haul, do it monthly (or even weekly).
Use Your Time Effectively- Learn how to multi-task. You can sort through junk draws while waiting for your dinner to cook.
Make Storage- It isn’t hard to make magazine holders, or to create a recycling area. Little storage areas will help you organize items that go together, and stop the clutter.
Clothes- There are many pre-loved clothing stores on the Far South Coast that would love to take those unworn clothing items out of your wardrobe. If you haven’t worn it in the last 6-8 months, give it away!
Kitchen- Sort and clean out your cupboards and draws. Put all your things in one large box, and every time you use something, put it away. After a few weeks, the leftover items can be given away.