HTW Property Review May 2014

HTW Commentary On Melbourne Property May 2014

 

– With interest rates at record lows and property prices in many regions beginning to increase, now may be the perfect time for first home buyers to enter the market.
– Suburbs such as Werribee, Deer Park and Cranbourne are fast becoming a mecca for first home buyers and young families due to the affordability of these suburbs.
– However there may be an oversupply of new house-and-land packages in the western suburbs, which could intensify given the recent job losses in the surrounding area.
– Investors on the other hand are seeking properties with different characteristics than those of first home buyers such as proximity to public transport, infrastructure and strong rental demand. Investors therefore are interested in different suburbs.
– Many investors are seeking out properties in established suburbs such as Bayside’s Highett, where they can manufacture equity by renovating an existing dwelling.
– Both domestic investors and first home buyers are steering clear of the CBD, as international purchasers from countries such as China, Malaysia and Singapore are paying premiums for off the plan inner city apartments.
– The oversupply of certain properties has resulted in Melbourne now having the softest rental yields of any of the capital cities.
– In order to overcome the affordability issue, first home buyers have been using various strategies in order to enter the property market.
– A popular method at the moment is to purchase a property and then lease it out.
– The rent helps cover the mortgage and the owner can take advantage of tax savings through negative gearing.
– Another way of easing the financial burden of a property is to purchase it with someone else, such as a parent, sibling or partner.
– This assists with another income helping meet monthly repayments and can also avoid incurring extra bank fees.
– When parents or family help out when gathering a deposit, Lenders Mortgage Insurance (LMI) potentially can be avoided, by insuring your loan-to-value (LVR) is below 80%, thereby save you thousands of dollars.

If you don’t already, you can subscribe to receive this report directly each month for FREE. Simply jump on the HTW website www.htw.com.au  and follow the prompts.

 

Thanks To Alphabroker

HTW Property Review Dec 2013

“2013 – The year that was” is the Theme of this month’s HTW Month in Review

 

– Opinion on the Melbourne residential market begins at page 30. Here are some highlights:

– The Melbourne property market has experienced overall steady growth throughout the year.

– Melbourne continues to recover and has reached a new median house price peak of $595,500 for the September quarter (in contrast to $518,500 for the same period last year) indicating an annual increase of 14.9%.

– The house price index for Melbourne also shows steady recovery rising by 4.7%.

– The combination of the RBA’s decision to keep interest rates low, continued strong immigration and international investment has contributed to increased sales activity for the year.

– The market has also benefited from increased demand from SMSFs and small movements from the return of first home buyers.

– With building activity being in decline since the last quarter of 2012 this year has proven to show a steady recovery with increased numbers of building approvals reflecting a seasonally adjusted increased trend of 18%.

– Consumer uncertainty this year has been mainly driven by the unemployment rate increasing by 1.2%, largely as a result of the downturn in the manufacturing industry (Ford announcing its production plant closures in Broadmeadows and Geelong) and potential policy changes still expected to filter through.

– Despite the effects of consumer uncertainty the rate of annual housing finance experienced an 11.5% growth over the same period last year. Auction clearance rates have demonstrated strong demand with clearance rates at 72% YTD

 

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Thanks to Alphabroker for this summary

HTW Property Review July 2013

“A lazy half million 2013” is the Theme of this month’s HTW Month in Review

HTW take a look at how the market stacks up in your locality and compare it against others from around Australia

Opinion on the Melbourne residential market begins at page 31. Here are some highlights:

•         With interest rates at record low levels it would appear that now is the time to buy residential property.
•         Properties with strong tenant demand and minimal holding costs will help to maximise your rental return; however homes with the potential for significant capital growth help to provide financial freedom in the long run.
•         The equity built up can be used to purchase another property.
•         This is particularly beneficial for those looking to expand their portfolio as one of the hardest obstacles to home ownership is coming up with the deposit.
•         Footscray, West Footscray and Maidstone show positive signs for strong growth in the detached/ semi detached market.
•         Footscray is expected to profit from the proposed and current development in the area including the Footscray Railway Station Redevelopment, Footscray Plaza redevelopment and the Whitten Oval redevelopment
•         The Melbourne apartment market is currently being watched very closely as evidence continues to emerge of an oversupply of apartments in the  development pipeline particularly in the metro area with approximately 25,500 expected to be completed by the end of next year.
•         Off the plan properties may be tempting with 10% deposits and reduced stamp duty, however a large portion of demand is coming from overseas.
•         The majority of foreign investors are only able to purchase new off the plan properties; so when it comes to selling years later, your market pool has shrunk considerably.
•         The Melbourne property market is currently a buyer’s market, giving potential purchasers the chance to shop around, negotiate and find themselves a bargain.

If you don’t already, you can subscribe to receive this report directly each month for FREE. Simply jump on the HTW website www.htw.com.au  and follow the prompts.

Thanks to alphabroker for this summary

HTW Property Review June 2013

“Medium term growth for the medium priced buyer”

– With interest rates at record low levels it would appear that now is a good time to buy residential property.
– Properties with strong tenant demand and minimal holding costs will help to maximise your rental return; however homes with the potential for significant capital growth help to provide financial freedom in the long run
– The Melbourne 2030 planning strategy has designated Footscray as one of the Major Activity Centres which are the preferred locations for future higher density residential and mixed use development.
– The Melbourne apartment market is currently being watched very closely as evidence continues to emerge of an oversupply of apartments in the  development pipeline particularly in the metro area with approximately 25,500 expected to be completed by the end of next year.
– Off the plan properties may be tempting with 10% deposits and reduced stamp duty, however a large portion of demand is coming from overseas.
– The majority of foreign investors are only able to purchase new off the plan properties; so when it comes to selling years later, your market pool has shrunk considerably.
– The Melbourne property market is currently a buyer’s market, giving potential purchasers the chance to shop around, negotiate and find themselves a bargain.
If you don’t already, you can subscribe to receive this report directly each month for FREE. Simply jump on the HTW website www.htw.com.au  and follow the prompts.

Thanks to Therese O’Neill from Alphabroker

HTW Property Review May 2013

“Eye Candy ‘What the big money will buy’?” is the Theme of this month’s HTW Month in Review

HTW are talking about the very aloof end of the market. It is here that buyers become impervious to trifling movements of things like interest rates, and much keener to ensure that political turmoil in a far off island state doesn’t interfere with their gold mining exploration.

Opinion on the Melbourne residential market begins at page 25. Here are some highlights:

•During the global financial crisis the prestige and super prestige property market was hit hard.
•Holiday homes were generally the first to be put on the market, followed by investment properties and then personal homes.
•Consumer and business confidence has increased, interest rates are low, and the outlook for the USA is brighter while Europe is still trying to push through its economic issues.
•Chinese investors who face tough property investment restrictions in their own country are looking to Australia as a safe and lucrative place to invest.
•The government’s introduction of the Significant Investor Visa which was introduced on 24 November 2012 is already showing signs of prevalence particularly in the apartment and prestige market – the government will fast track residency for  investors who invest at least $5 million in the Australian economy.
•While the prestige detached housing market is leaning towards a seller’s market, the high stock level of prestige inner city apartments is creating a favourable environment for buyers.
•There is a hangover of stock, particularly in the Docklands.
•Given the high proportion of land value for prestige and super prestige properties, there is room and often capital to be gained from renovation or new buildings.
•With strong demand from international investors, the outlook for prestige and super prestige property looks positive, particularly for houses where an under supply may eventuate.

If you don’t already, you can subscribe to receive this report directly each month for FREE. Simply jump on the HTW website www.htw.com.au  and follow the prompts.

Thanks to Alphabroker for this summary