Back in the High Life Again
It is a long time since we have seen such a strong growth year. In fact in Sydney it is not since June 2002 that growth was higher. For home owners in Sydney and Melbourne the increase in equity has been significant, with Sydney providing home owners with a $100,000 increase and Melbourne a $92,000 lift on median house values.
Our June figures support the view that investors are now more active than they were 12 months ago and moving into the higher priced suburbs as well as units, with growth being more likely and of lower risk in the middle to upper value areas of our markets. Our figures also suggest probably the best total and balanced returns are more likely to come from units which are significantly more affordable in both rental and capital cost terms.
The available stock of houses and units in the market is improving and the actions by the New South Wales Government to remove some stamp duties for new stock is well thought out and was much needed. With the move of investors into the market, it is worth vendors making sure that their properties are attractive to investors as well as home occupiers. Here are my tips:
1. When you list your property on homesales, let prospective buyers know about its proximity to public transport, and the local suburban centre. Indeed, any special feature that would be of value to an investor and make the property easier to rent should be pointed out.
2. Ensure the building appears in good order and has been maintained.
3. Use the homesales reports we provide to list your property at the best possible, yet realistic asking price.
How long will the investment boom last? Possibly not that much longer, so if you are thinking of listing your property on homesales, now is a very good time to secure a quick sale at the best price.
John Edwards
CEO of Residex
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