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.
Sales Agent at Cooma Real Estate Agency, Fisk & Nagle First Choice, Geoff Bowman reckons now is a great time to buy an investment property in Cooma. With recent investment properties in Cooma being purchased for $140,000 and returning $255 per week in rental and another investment property purchased at $169,000 for a $240 per week rental return you have to take note!
Geoff says that investors from Canberra and Sydney are finding the property investment opportunities very appealing, and now is a busy time with many of them making their way to the snow fields and calling into Cooma to check out properties. In fact there has been such a demand for property in Cooma for both investment properties and family homes that Geoff is looking to list more properties. With prices ranging from the low $100,000s to high $400,000s in the town of Cooma together with a high demand for rental properties from workers moving to Cooma from Canberra and Sydney the opportunity to make a sound investment in real estate is very high.
The Fisk & Nagle First Choice Real Estate Agency office is now open on Saturdays. Potential purchasers visiting the region for weekends in the snowfields nearby can call in and view properties. The outlying areas of Berridale, Delegate, Bombala and Numeralla are also popular, particularly with property purchasers from Canberra. Recently two properties were sold in Numeralla, both in Collins Road – one was a modern home on 100 acres which sold for $399,000 and the other was a cottage style home on 20 acres which sold for $295,000. To enquire about purchasing or listing property in Cooma and surrounds contact Geoff Bowman on 0264524043 or 1800 For Sale.
Fisk & Nagle First Choice Real Estate welcomes infrastructure upgrades to the region. With Real Estate offices in Bega, Cooma, Eden, Merimbula and Tura Beach they fully appreciate the flow on effect to property values, real estate enquiry from purchasers and improved confidence for vendors the recent and upcoming upgrades to infrastructure create.
The recent State Budget delivered $169 million in funding to the Princes Highway for upgrades to this vital link between the far south coast and major cities such as Melbourne and Sydney. The current upgrade to the Merimbula Airport that is still a work in progress at a cost of $5.7 million will ensure the continued safety of the runway and extra lighting will allow for low visibility departures allowing planes to take-off in fog. The latest news on Sydney Airport is that regional airlines will continue to have access to the airport and reasonable pricing arrangements capped at CPI for the next three years. This ensures continued services from Sydney by the current carrier, Rex Airlines to Merimbula Airport.
The new South East Regional Hospital in Bega, which is currently being built, has already had an impact on real estate enquiry in Bega, particularly for properties in the Glen Mia estate, which is situated opposite the hospital site. The Minister for Health Jillian Skinner MP has stated that the new hospital will meet the growing demand for health and hospital services in this thriving regional area and that the expansion of services that will be delivered will help attract and retain a highly skilled and motivated workforce. Together with the $60 million Bega Bypass , the Member for Eden Monaro reports that there have been other upgrades in the region such as the Port of Eden development, upgrade of the Merimbula Jetty and an upgrade of the Merimbula Causeway.
Home owners and property investors alike can take heart at these infrastructure improvements and look forward to reaping the rewards. To list your property or enquire about purchasing a property in the area call 1800 For Sale.
Real Estate Sales in the Merimbula and Tura Beach area of the far south coast of NSW are quite active at present, particularly in residential housing. David Dwyer, Property Sales Representative at Fisk & Nagle First Choice Real Estate reported that the price range is creeping up with the majority of homes selling in the price bracket up to $500,000 and with a few selling at over $600,000. He advises potential vendors that winter is a good time to sell property as there is more competition on the market in spring. “Many vendors think that spring is the best time to sell property and hold off putting their house on the market, but in reality there are still the same number of buyers looking to purchase a home in winter. If you list your home for sale now, with less competition, you will find it easier to sell and more likely to achieve your selling price” .
David noted many purchasers of residential homes are from outside the area, Canberra being a big growth area for real estate sales in Merimbula and Tura Beach and many purchasers are looking to buy a three bedroom, two bathroom home. Vendors note that property buyers from outside the area will search the internet for potential properties for purchase and Fisk & Nagle have a strong online presence, appearing near the top of the first page for most searches for real estate in Merimbula, Tura Beach, Eden, Bega and Cooma.
David’s advice for selling your home is to present the property well. A property that is presented as a tidy, neat, clean home is more likely to sell quicker and for the price the vendor is seeking. It is important to de-clutter the home, clean up the garden, mow the lawns, get windows cleaned and keep the house clean and well maintained for inspections. Call 1800 367 7253 to talk to David about listing your property.
It is not long until tax time and you may be wondering what claims you can make on your investment property. Here are some ideas to ponder.
The ATO website reports that “Certain types of construction costs – including extensions, alterations and structural improvements – can be claimed as capital works deductions. However, the purchase cost of the land on which a rental property is constructed cannot be claimed. Instead, the land forms part of the cost base for capital gains tax purposes.
Deductions can be claimed for the decline in value of some types of depreciating assets in residential rental properties – for example, curtains, blinds, dishwashers, refrigerators, stoves, television sets and hot water systems. However, construction costs are not depreciating assets.”
If you have a holiday rental property it is possible to rent it out but use it for yourself, family and friends for some of the time and still make taxation claims. The ATO allows you to claim some expenses incurred in running your holiday home or unit against your accessible income. Accessible income is derived from commercial renting whereas a minimal rent received from friends and family is considered reimbursement for out-of-pocket expenses. Expenses incurred whilst renting to friends and family cannot be claimed as the ATO considers it personal use at these times.
For your property to be considered an investment property, you need to prove you are actually trying to rent it commercially. You can show this by engaging a holiday rental agent, such as Getaway for Merimbula and Eden holiday rental properties. Listing on a holiday rental site such as Getaway will also help show you are serious about rentals, as well as helping you gain tenants. http://www.getawaymerimbula.com.au/holiday/Merimbula
The general rule with any tax deduction is that it must be relevant to an income-producing activity. Common deductions made on rental investment properties are: advertising for tenants, body corporate and strata fees, gardening, maintenance, cleaning, insurance and land tax. With thanks to Bina Brown of the SMH.
For full and professional advice on your investment property taxation claims see your Accountant. For advice on purchasing an investment property call Fisk & Nagle on 1800 For Sale.
So you have decided to sell your home You need to prepare it for inspections and to do this you must get into the mindset of your potential purchasers. When potential buyers inspect your property they will be looking at the space and how they can use it. The first step in creating a spacious feel is to de clutter, this will immediately open up space in each room of your house or apartment.
It may appear to be an overwhelming task at first, but you can break it down into steps that will make it manageable. Firstly work out what you have lying about your place and categorise it:
Essential Things: Whatever you need and use regularly. Keepers.
Favorites: Favourite pieces of art, ornaments and mementos. Makes a house a home.
Belongs elsewhere: Items borrowed (rented videos, library books, other people’s things), Anything you don’t want anymore.
Annoying: Dirty laundry, junk mail, old magazines and newspapers. This looks ugly!
Disgusting: Mouldy food, junk food wrappers, smelly things. Got to go!
Now take the following steps to rid your home of clutter:
Ditch the disgusting stuff. This is the easiest and most obvious place to start. Wash, dump, compost – just get it out of the way.
Deal with the annoying stuff. Recycle magazines and junk mail, collect and wash the laundry, file, box, and store the things you think you might need, but get all of it out of sight. Remember to hide or neaten up cables and put all those remote controls in a drawer.
Donate. Give borrowed items back to their owners. Donate unwanted stuff to a local charity. Get rid of anything you don’t need or want. Very cathartic!
Display. Your favorite things deserve to be displayed. Don’t overdo it, but choose the pieces that add charm and enhance the home.
Devise. Your essential things need to be accessed easily, so devise good storage systems like a hook for keys, a basket for bills, a hamper for dirty laundry.
Above all, keep the kitchen clean and clutter free – put appliances in cupboards and ensure no dirty dishes are on the sink. On inspection day add a vase of fresh, fragrant flowers to add a nice touch and aroma.
The most important room for buyers when inspecting a property is the kitchen, according to a survey by mortgage broker Loan Market. Interestingly (but not surprising) it was found that women chose the kitchen as the most important, whereas men preferred the living room (59% females/37% males for the kitchen). Only 24% of women as against 56% of men named the living room as the most important room in the house when inspecting a property for sale.
This provides some telling insights for those selling their properties in today’s market. It is generally agreed that women have the final say in a property sale when it’s the family home, so if the kitchen has the most appeal to women, property owners need to focus on the presentation of that room. According to Loan Market corporate spokesperson Paul Smith many buyers would not necessarily be assessing a property on its existing fixtures and features but on its scope for renovations and improvements. As reported by Real Estate Business, he said “Often when a buyer shows interest in a property it’s because of the potential they see. Today’s buyers have become astute at assessing how much effort and additional money may be required to get the property to that point.”
Therefore, when presenting your property it is essential to highlight space. Potential buyers for properties in Bega, Merimbula, Tura Beach, Eden or Cooma whilst inspecting a property will consider placement of their furniture, available space and general scope for improvements as well as storage space. Inside the home de-clutter and even consider moving out some pieces of furniture if the interior looks over crowded. Outside mow lawns, weed the garden, remove unwanted items cluttering the space. Keep the whole of the property looking clean, neat and spacious.
First impressions are important, particularly if potential buyers are looking at several properties at once. They will quickly dismiss a property if it does not present well and you may miss the sale if you have not prepared your home well for inspections.
Our next blog will focus on easy ways to de clutter your home when preparing it for sale.