Archive for the ‘Buying Real Estate’ Category

Watch this Video to hear from Raine & Horne SA’s CEO Kevin Magee, to find out what is happening in the SA Real Estate Market in January 2011.

This blog post and video is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts

Watch this Video to hear from Raine & Horne SA’s CEO Kevin Magee, to find out what is happening in the SA Real Estate Market in December 2010.

This blog post and video is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts

Watch this video … to get the latest in the South Australian Property Market Updates

This video is to brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Experts

This video is brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Specialists.

Buyer databases have become an incredibly important marketing tool for agents in recent years. One of the first things an agent will do after listing a property is tell their buyer database about it.

Whether it’s their own personal database or one belonging to their agency, these are the buyers who find out about it first.

I’ll use our agency for example, at Raine & Horne Glenelg we have a web based company database called RH Compass, which is linked to over 450 Raine & Horne offices nationwide, and has thousands of motivated buyers in it.

At the start of a property marketing campaign, the very first thing we do is an email broadcast to buyers on our database looking for that kind of property. These emails go out at least a week before the property is posted on to the 10 internet sites (rh.com.au, realestate.com, domain.com.au, homehound.com.au, adelaidenow.com.au and others) and before the property is advertised in the newspapers (Adelaide Advertiser and Guardian Messenger). We also personally call our VIP Buyers who have registered with us on our Raine & Horne Glenelg website VIP Page, to tell them about the property and arrange a viewing before the property is released to the public.

In the week prior to the first Saturday open inspection, we will usually conduct a special “preview open” for VIP Buyers and our database buyers only, giving them an exclusive opportunity to see the property first!

We great to great lengths to make open inspections successful, watch this Youtube Video to see what I mean…

That’s why there is good reason for you to make a date with a database. If you would like to become a VIP Buyer at Raine & Horne Glenelg, you could be linked to the RH Compass Nationwide database which has over 450 Raine & Horne offices looking for properties for you.

Register as a VIP Buyer today.

First home buyers were an extremely important element in the property market recovery during 2009. This week we look at exactly what impact first home buyers had on the market in 2009 and how their gradual slowdown in demand may affect the market in 2010.

See John Symonds from Aussie Homeloans talk about the effect of the First Home Owners Grant in 2009…

During 2009, 191,000 first home buyers took the opportunity to become home owners across Australia. It’s no real surprise that first home buyers were so active during 2009 given that the Government was offering the First Home Owners Grant Boost, interest rates were at almost 50 year lows, some State Government’s were offering additional incentives such as low or no stamp duty on more affordable property purchases and properties had become more affordable during 2008 thanks to a fall in values. The volume of first home buyers during 2009 represented the highest annual volume of buyers on record and saw a 55% increase on first home buyer activity compared to the previous year.

Between 1992 and 2009 there was an average of just over 116,000 first home buyers annually. Not only was the level of activity during 2009 the highest on record it was 64% greater than the long-term average level of activity.

Many people claimed that the active first home buyer market was artificially inflating prices however, it is important to look at just how much of the market first home buyers accounted for. During 2009, owner occupiers took out finance for approximately 739,000 dwellings of which 26% was taken out by first home buyers and the remaining 74% came from non first home buyers. Obviously first home buyers accounted for a much greater portion of the market during 2009 than they have in the past however, their portion still paled in comparison to non first home buyers.

Importantly, this data doesn’t include investors. The ABS doesn’t publish volumes of investor finance but it does publish the total value which shows that the amount spent on residential property by investors was worth more than 25% of the value of all housing finance during 2009. This result combined with the proportions for owner occupiers split between first home buyers and non first home buyers show that even though first time buyers were extremely active during 2009 compared to previous years, they still only accounted for a relatively small portion of the overall market, likely to be around 15% of the whole market.

On a month by month basis during 2009, first home buyer activity peaked at 28.5% of all owner occupier finance during May 2009. As the graph shows, following the peak and once the First Home Owners Grant Boost in full was removed, the proportion of first home buyers in the market fell sharply. During December 2009 first home buyers made up 21% of the owner occupier market. Historically, first home buyers have accounted for around 20% of the owner occupier finance market and we would expect that during 2010 they will sit at a similar if not lower level than the historical average.

On a state by state basis first home buyers during 2009 were generally most active within Western Australia where on a month by month basis they averaged 28.4% of housing finance commitments during 2009. The second greatest proportion of home loans for first home buyers was found in Victoria (26.9%), followed by New South Wales (26.8%). The markets which saw the lowest proportion of first home buyers during 2009 were: South Australia (20.6%), Northern Territory (21.1%) and the ACT (22.0%). When looking at the results of the most recent month you can see the impact of the slowdown in first home buyer activity with each state seeing fewer first home buyers during December 2009 than witnessed during December 2008.

Although first home buyers still only accounted for a relatively minor portion of all housing finance commitments during 2009, the impact of the greatest ever level of first home buyer activity was certainly felt across the rental market. Such a significant influx of first home buyers to home ownership eased rental pressure and has been a factor contributing to falling rental rates in many regions during the second half of 2009. With an expectation that first home buyers will at least fall back to historic average levels during 2010 we anticipate a turnaround in rental markets with higher rents likely to become evident this year. We also anticipate that investors will become more active in the marketplace due to less competition, particularly from first and second home buyers, brought on by the higher interest rate environment.

This article is an extract from RP Data Property Pulse, and is brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Specialists

For Adelaide to become a more vibrant and sustainable city, we need to stop the urban sprawl.

Did you know that Adelaide covers the same area as London? The major difference being that London has a population of 7 Million whilst Adelaide has a population of just 1 Million.

So what does this mean for our kids…

Gone are the days that we condemn our kids to migrating to the outer suburbs, to find the cheapest block of land, or house & land package that they can afford to purchase as a first homeowner.  And in the process condemn them to owning two vehicles to commute to work and raise a family to commute to school and leasure.

At last we have a sustainable plan for Adelaide, which provides us with a direction on population and how our city will grow.

Watch this Youtube Video about Adelaide’s 30 Year Plan…

So how does the 30 Year Greater Adelaide Plan change the future for our kids… 

The first step is what is happening now with our $2 Billion Public Transport Infrastructure Upgrade.

This investment is all about improving our public transport with modern new electrified passenger trains, trams and modern buses which integrate into our train and tram network. The next step once our public transport network is upgraded, is to encourage urban consolidation along our major public transport corridors, which means we will lessen our reliance on vehicles as our sole form of transport.

How will the 30 Year Greater Adelaide Plan encourage urban consolidation?

The 30 Year Greater Adelaide Plan, announce the intention of our Government to encourage higher density housing along our major publice transport routes by relaxing Council Planning policies 800 metres either side of major public transport routes.

So if I was a Property Investor… where should I purchase property for future growth?

Obviosly 800 metres either side of the major established train and tram lines!

This story was brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Specialists.

The South Australian property market continues to go from strength to strength on the back of investor demand.

Watch this Youtube Video about Adelaide…

Kevin Magee, CEO, Raine & Horne South Australia, explained, “There is very good economic confidence among investors about the local and interstate economies. As a result our offices are fielding plenty of interstate and international enquiries – particularly from Chinese investors.”

According to the Raine & Horne SA chief, the relative affordability and stability of Adelaide’s housing prices is the cornerstone of buyer demand. “The median house price in Adelaide is still around $380,000, which typically buys a three-bedroom, two-bathroom house within 30km of the city,” said Mr Magee. “Move to within 15km of the city and in many areas $380,000 will still buy a home with three bedrooms and one bathroom.”

Mr Magee added, “The Adelaide property market has recorded just 7 falls in quarterly price growth since March 2000. Each time it’s only been a small percentage fall and it’s quickly recovered the following quarter.”

Mr Magee nominates Hope Valley as a suburban property hot spot. “Hope Valley offers first time buyers and investors quality properties on large blocks within 15km of the CBD at a rate well below the median price. In addition the area is seeing a revival with many buyers subdividing or demolishing old properties to build their ‘dream homes.’ These are exactly the type of factors that drive future price growth and lead to good long term capital return. It’s not surprising to see this area has achieved average annual median price growth of 12% for the last nine years. To find out more about the property market in Adelaide’s north east, contact Raine & Horne North East on 08 8395 2233 .

Gawler is the gateway to the Barossa Valley and is attracting those buyers looking for a lifestyle change or a home with a country town feel. “There is a nice mix of housing – from heritage, to very modern properties and cafes in Gawler,” explained Mr Magee. “Gawler is somewhere where people can choose to live in a rural country town, but still work in the northern part of Adelaide at Technology Park or Edinburgh. For more on Gawler, contact Raine & Horne Gawler on 08 8522 2777.

It’s famous for tuna fishing, but Mr Magee says Port Lincoln is attracting home buyer attention. In fact, Raine & Horne Port Lincoln’s Steve Prout recently sold six brand new townhouses off the plan to interstate investors within a week. “And they were sold sight unseen,” said Mr Magee.
Port Lincoln is a day’s drive from Adelaide, but it’s an area that is moving ahead in leaps and bounds, and investors are well aware the town is a designated area for people returning from jobs in the Iron Triangle region.

“When workers with young families leave the mining towns, they tend to prefer coastal towns such as Port Lincoln, Whyalla or Kangaroo Island to a suburb in Adelaide,” explained Mr Magee. “The coastal towns provide the intoxicating mix of a country lifestyle and good schooling.”

This article is brought to you by Raine & Horne Glenelg, your Glenelg Property Management and Glenelg Real Estate Specialists.

When searching for an investment property, don’t fall into the trap of asking “Would I live there?”

Watch this Youtube Video about which picking suburb you should buy in…

Don’t be like most Property Investors… often your tastes in a property can be very different from a tenant’s needs and likes within a particular area.

SOME KEY FACTORS THAT YOU SHOULD FOCUS ON WHEN CONSIDERING THE PURCHASE OF AN INVESTMENT PROPERTY ARE:

• Are the rents affordable within the average to medium price range?
• Has the area shown a solid history of steady rental demand from nearby industry, educational, medical or commercial office workers?
• Does the area provide good access to shops, transport, schools, churches, sporting and other facilities in keeping with the profile of the local population?

If you can answer yes to the above then you are on course to making a sound investment decision.

 This article was brought to you by Raine & Horne Glenelg your Glenelg Real Estate and Glenelg Property Management Experts.

Oh… to have a property crystal ball so we could see into the future of the property market.

See comments from John Symonds of Aussie Home Loans 0n why the RBA raised interest rates…

It is a hot topic with many property owners and investors – whether to fix their mortgage or leave it as a variable rate.

While we are not financial advisors and strongly recommend that you seek independent advice on the best options for your circumstance, we do, however, suggest that you consider splitting your loan/s to edge a two-way bet of fixed and variable.

Now is the time to look at all of your finance options to ensure that you are maximising your return and getting the best possible loan.  One quick call to your bank or financial advisor could save you $10,000+ in interest payments.

If you need to get an independent opinion of what your home is worth today in Glenelg or the western and coastal suburbs of Adelaide, call Monika on 83768844, you’ll receive a written letter of appraisal with a detailed comparative market analysis  of properties sold in your suburb in the past 6 months.

If you would like us to also arrange to give you finance options just mention that also when you call.

 This article was brought to you by Raine & Horne Glenelg your Glenelg Real Estate and Glenelg Property Management Experts.