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RBA Rate cut

With the US economy and commodity prices impacting on the Australian dollar and RBA warnings about an over heated capital city real estate market, the recent cut in the cash rate to 2.25% caught some by surprise. In the RBA February meeting minutes, it appears to have been a line ball decision.  That, some say, leaves the door open for even further cuts.

The RBA said “It would be important to assess the effects of the measures designed to reinforce sound residential mortgage lending practices announced the Australian Prudential Regulation Authority (APRA) in December”.
APRA is keeping a close eye on lenders after a 2014 end of year surge in loans. The Australian Bureau of Statistics (ABS) lending figures for December show a marked increase in lending with a 4.1% increase in owner occupier refinanced loans, a 3.6% increase in owner occupier news loans and a 6.0% increase in investor loans.

Alan Madden from Mortgage Choice says the local market is already feeling the effects of the rate cut. “The recent rate cuts by the Reserve Bank to its lowest level in recent history, has seen a spike in loan applications from people entering the local market”.

And it’s not just buyers who are motivated by the low rates.  Alan says local homeowners with a mortgage “are increasingly looking to fix their interest rate longer term to take full advantage of the low rates on offer”.
The Commonwealth Bank, Westpac and a number of other lenders have passed on the cut in full (and more, in Westpac’s case) and with no sign of a rates rise on the horizon, right now is the cheapest time in decades to get into the local real estate market.

How long will it take to sell your house?

You may have seen the headline “Property price growth may be slowing but the time it takes to sell a house isn’t“. So how do you measure the amount of time a property spends on the market? And does it really matter? Days on market (DOM) is actually very important and should be one of the first “go to” statistics for investors and sellers.
DOM is the total of the number of days a property stays on the market before it sells. A property is considered to be ‘on the market’ as soon as the real estate agent lists it for sale. They’ll usually do this by advertising on real estate search portals, in their windows and putting a “For Sale” sign up.. Once the property has sold, the agent will remove the listing. That time of advertising equals the DOM.

In a fast moving market properties are snapped up quickly by eager buyers. This allows the seller to get the price they want without waiting too long. So a small DOM figure can be a sign that demand is exceeding supply. On the other hand, if there are no buyers interested in a particular property, homes can sit on the market for a long time. Even with strong buyer interest, if there are too many properties for sale, it will take a longer time for all of them to sell. That means the DOM figure is likely to be higher.

The DOM figure is important because it reflects the demand to supply ratio of a property market. Often when buyers see extensive days on market, they figure the seller is desperate to sell because the home is still on the market and will try to make a lower offer. Buyers also believe there might be something wrong with the home that caused other buyers to pass it up. Of course DOM can also vary from agent to agent depending on their expertise and sales record in the area.

In short, a higher DOM usually reflects a lower sale price, a lower DOM will equate to a higher price for a property. While a suburb’s DOM might be an important tool for buyers, an agent’s DOM is what sellers should be looking for to get the best price for their property.

So which agent has the lowest DOM for Merimbula?
According to Domain.com.au the average DOM for Merimbula is 248 days, but for Fisk&Nagle First Choice, it’s almost half that, at 175 days. That’s a huge advantage when it comes to selling your property for the right price.

And which agent has the lowest DOM for Bega?
According to Domain.com.au the average DOM for Bega is 200 days, but for Fisk&Nagle First Choice, it’s less than half that, at 89 days.

If you’re thinking of selling your home and would like to know how long it might take to sell, why not contact one of our friendly agents at Fisk and Nagle 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

Invest in Property in Cooma For Good Returns

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 Bowman Cooma  Geoff Bowman, Sales Agent.

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.

Port of Eden Major Upgrade Will Catch The Eye of Property Investors.

Purchasers and Property Investors keep an eye on Eden. With the announcement that the Port of Eden will receive a major upgrade to expand its capacity as the only safe deep water port between Sydney and Melbourne the community can expect a major boost to the economy.  The Merimbula News reported this week that the Member for Eden-Monaro Dr Mike Kelly visited the port and said the upgrade would expand the port’s capacity to handle large cruise ships, more bulk freight and more supply vessels for the Bass Strait oilfields. He said that the upgrade would be a massive boost to the local economy and the wider region, with cruise ship arrivals expected to increase ten-fold to 50 every year. The expansion will go ahead thanks to a $10 million federal grant that forms a major part of the investment.

Eden cruise ship Dr Kelly said “The Port of Eden is a fantastic asset for us, the best deep water port in Australia, and we will finally be taking advantage of its potential.” Dr Kelly said the project would generate 45 new jobs in its construction phase and 151 ongoing jobs upon completion.

As part of the $24.5 million project, a fixed panel wave attenuator will control the waves to protect a 150 metre-wide navigation channel into the port, and a 500-metre pedestrian boardwalk will connect the port with the tourist and community precincts of Snug Cove and Cattle Bay. 2000 passengers are expected to land in Eden every week and more small boats are expected to arrive at the port as recreational sailors will get safe moorings in Eden.

Food-Hospitality-Eden-NSW-2551-Real-Estate-photo-1-large-4373163 House prices are currently very competitive in Eden and with a development boost of this size potential purchasers and property investors should seriously consider the town of Eden for their next purchase. Call Fisk & Nagle First Choice Real Estate on 1800 For Sale to arrange an inspection of suitable properties in Eden.

Real Estate Agents in Bega, Cooma, Eden, Merimbula and Tura Beach Welcome Upgrades

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.

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