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Jun 16, 2021
The first offer is the best offer!
The first offer is the best offer. In most scenarios, this is the case and here is the reason why... It's all about the timeline (as well as price, property and location!). When your property has just been listed for sale, it's considered a fresh listing and buyers that have been looking for some time (normally 3 months and the early days are their research days) see your listing straight away and will act on it quickly if the property is of any interest. These buyers are motivated and know what they want. If they have missed out on other properties, they know they will need to make an offer ASAP and put their best foot forward. Most sellers are not ready for this and feel the property has just hit the market so a higher offer might come the following week. This may or may not happen. In a seller's market, multiple offers are common and the seller will be in control to get the best price possible. In a buyer's market, offers may be submitted one at a time and spaced with some time apart - this puts the buyer in control. So if you receive offers early and there are multiple offers - that is fantastic. The buyers will know there are other buyers interested and all should put their best offer forward so you can pick the best of the lot to move forward and negotiate with (you can receive multiple offers, but can only negotiate with one buyer at time). Take advantage of early interest and prepare yourself for offers early on by being educated about the current market and recent sales. Your agent should help prepare you for this. The longer your property remains on the market, the risk of it becoming stale. At that point, all motivated buyers would have purchased elsewhere and new buyers coming through may have just started looking and are in research phase. For more information about early and multiple offers, please feel free to book in a free call with us via https://www.micasapropertyboutique.com.au/
May 12, 2021
2% Deposit Introduced in Budget!
There's been no shortage of discussion about the impact of the COVID-19 pandemic on first home buyers since lockdowns and job losses first hit Australia Will the housing market crash? Is it easier or harder than ever to try and get onto the property ladder? Are we all destined for a lifetime of share houses and debt? The 2021-22 Federal Budget commits to "supporting construction jobs and home ownership" and the budget details multiple grants and schemes aimed at "helping more Australians realise their goal of home ownership", but each of those measures comes with strict eligibility criteria and significant, long-term financial commitments. Treasurer Josh Frydenberg said in his budget speech to Parliament that while initiatives like the government's HomeBuilder scheme had been a success so far, "in this budget, our housing measures go even further". Here's what we know about the new and extended measures. HomeBuilder was introduced primarily to boost the private construction sector, motivating people to build new houses or significantly renovate existing homes, creating work for tradespeople and others in the industry. But the criteria to apply for the $25,000 grants was pretty significant, with a minimum spend of at least $150,000 required to be eligible for the funding boost. Budget papers reveal that more than 120,000 applications have been received for HomeBuilder grants since the scheme was unveiled in June last year, but does not confirm how many of those have actually been approved. CoreLogic head of research Eliza Owen says initiatives like HomeBuilder, the First Home Loan Deposit Scheme and the first home buyer's grant likely contributed to this financial year's high participation of first home buyers in the market. "The federal government has utilised a different approach to boosting the rate of home ownership," she says. "They focus on increasing accessibility of mortgages, rather than risking any downward pressure on residential property prices." The New Home Guarantee scheme helps first home owners build or purchase a new home with a deposit as low as 5 per cent. But that means existing properties are not eligible for the scheme, which limits the opportunities for prospective first home owners living and working in capital cities or built-up areas. The family home guarantee does extend to both new and existing homes, and isn’t limited to first home buyers. This is a specific scheme for single parents with dependent children to lockdown a property with just 2 per cent of a deposit. This was a significant element in the budget’s focus on women, with an estimated 105,000 of the 125,000 single-parent households expected to be eligible for the guarantee led by women. CoreLogic's Eliza Owen says, to put it simply, lower deposits mean more debt and more debt means more interest — but in the right circumstances, could have potential. "Taking on more debt may still be worthwhile if the borrower is otherwise spending tens of thousands of dollars on each year on rent," she says. "Even more beneficial could be the long-term gains in real assets that come from accessing ownership earlier with a lower deposit, which could outweigh the additional interest paid." The First Home Super Saver Scheme allows eligible first home buyers to release voluntary super contributions to put towards a house deposit. The latest changes mean from July 1, those hopeful buyers will be able to access even more than they were previously. Under the existing conditions, super contributions made by employers and spouse contributions can't be released under the scheme. If you would like to know more about the Federal Budget, grants available and how it affects you and your property journey, book a call with our amazing team to discuss further.
Jan 6, 2021
Perth Property Sales Soar!
Properties sold like hotcakes in December, with sales 42.5 per cent higher than the same time in 2019. The Real Estate Institute of WA recorded 3067 transactions for the month, which president Damian Collins said was not the norm. “Traditionally December experiences a reduction in the number of house sales due to buyers going away for the festive period, yet we have seen a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions while they are unable to travel,” he said. “Agents have reported that good, quality stock is being snapped up fairly quickly and, with listings for sale decreasing 16.5 per cent in December, it is only a matter of time before median prices start to increase.” REIWA is forecasting between six and 10 per cent price growth in 2021 and values are already on the move, with the latest figures from CoreLogic showing 1.1 per cent growth in December and 2.8 per cent over the quarter. After many years of negative or no price movement, Perth also recorded growth over the year, up 1.9 percent to $471,310. According to reiwa.com data 45 per cent of suburbs saw an increase in median price last month. “Kelmscott saw the largest increase in median sale price in December with a 6.2 per cent increase to $375,000, followed by Yokine with a 4.8 per cent increase to $650,000 and Wellard with a 4 per cent increase to $399,500,” Mr Collins said. “Rounding out the top five was Girrawheen, which also experienced a 4 per cent increase to $310,000, and Applecross with a 3.4 increase to $1.5 million.” Activity was also up in the tight rental market, with 3655 properties leased in December, an increase of 9 per cent on November. Mr Collins said leasing figures had been declining in recent months, but it was pleasing to see them pick up at a time when activity traditionally slowed. “While leasing activity increased, we saw listings continue to decline, with a 14.5 per cent decrease when compared to November and 56.6 per cent decrease when compared to December 2019,” he said. Reiwa.com data shows leasing activity increased in 100 suburbs last month, with East Victoria Park, Harrisdale, Cloverdale, Aveley and Port Kennedy the biggest improvers. Other suburbs to perform well were Willetton, Maylands, Clarkson, Bayswater and Applecross. Perth’s overall median rent rose $5 to $395 per week in December — the fourth consecutive monthly increase — and is the highest it has been since February 2016. “In December it was Perth’s higher end of the market that dominated the top suburbs to see an increase in median weekly rent, with Mt Pleasant and Duncraig increasing 4 per cent to $550 and $520 per week,” Mr Collins said. “This was followed by Applecross which increased 3 per cent to $650, Alkimos increasing 2.9 per cent to $340 and Wanneroo, which also increased 2.9 per went to see a $360 per week increase. “As we see rental stock levels continue to remain low, we can expect rents to continue increasing, however we need to remember that rents are still a lot cheaper than they were in 2014.”
Nov 20, 2020
‘Buy Now Pay Later’ Coming to the Australian Real Estate Market
Buy Now Pay Later is coming to real estate, giving investors an alternative avenue to realising their dreams of property ownership. As housing affordability continues to be a pressing issue, especially for younger generations, and the national housing market rebounds solidly from COVID-19, the Afterpay of real estate has come knocking. Dynamic micro-investing platform Bricklet is providing buyers the opportunity to become an independent part owner of their chosen residential or commercial dwelling via BNPL as of this weekend. “Bricklet came about from the idea of making property investment accessible to all Australians and buy now pay later is about extending that reach,” Bricklet CEO Darren Younger said. “Saving up your deposit for your first home is a big challenge and Bricklet has always been about providing an alternative to that. But we also understand saving up a lump sum to invest via Bricklet can also be an ask. “That’s why we have opened up the buy now pay later option. The amount required to get your foot in the door is within the reach of many potential investors.” However, Bricklet’s investment proposal differs from most BNPL platforms in that there are no penalties for late payments. There are no extra fees or interest due on late payments. The cost of a bricklet depends on the purchase price of the property and the number of investors or owners. For example, if a $1 million property is fragmented into 40 bricklets, each one is valued at $25,000. Each owner is registered on the title as tenants in common and the independent part-ownership allows you to sell your slice of the property at any time on the Bricklet platform, which is a venture from the Lakeba Group. Mr Younger said the average time on market for a single bricklet is about a week. Via buy now pay later, the owner would pay a first payment of 10 per cent of the value of the Bricklet (plus costs where applicable such as stamp duty and conveyancing) and then pay off the remainder of the amount owing over 18 months in instalments of five per cent. As always, seek independent financial advice when considering buying real estate.
Sep 9, 2020
Taking Advantage of Grants
Grants - What is Available There is so many options available to home buyers in regards to obtaining a grant when purchasing their new home or investment. With grant options comes loads of information and this information can be a little overwhelming. To help you out, we have compiled some key information for you. The grants available are: Building Bonus grant $20k HomeBuilder grant $25k First Home Owner grant $10k No First Home Owners Stamp Duty REBA grant $2k So let's find out more: Building Bonus Grant What is it? A grant for buyers who enter into a contract to build a new home on vacant land or purchase a new home being constructed under a single-tier development on a strata plan or other land survey type. How much can I get? $20,000 What are the guidelines? - Must enter into a contract by 31 December 2020 - No cap on purchase price or value of the contract More info here Home Builder grant What is it? A grant for owner occupiers to build a new home, substantially renovate an existing home or purchase a new home off-the-plan. How much can I get? $25,000 What are the guidelines? Must enter into a contract by 31 December 2020 Construction must commence within 3 months of the contract date No cap on the purchase price or value of the contract Renovation contract is between $150k - $750k and value of existing home and land (pre-reno) cannot exceed $1.5m Individual must be an Australian citizen aged 18 years or over and a natural person (not a company or trust) Meet annual taxable income cap for individual at $125k or $200k for couple New build cannot exceed $750k in property value More info here First Home Owner grant What is it? A one-off payment to assist first home buyers to buy or build a residential property for use as their principal place of residence. How much can I get? $10,000 What are the guidelines? Must be principle place of residence & occupy for continuous 6 months within first 12 months of ownership New homes only A home that has been substantially renovated may be considered a new home Available for Australian/permanent residents only Cannot have owned a home before Property value is capped at $750,000 More info here First Home Owners Stamp Duty Rate What is it? Transfer duty or stamp duty is charged on dutiable transactions over land in Western Australia How much can I get? No duty payable up to $430,000 and reduced duty up to $530,000 What are the guidelines? Must qualify for the FHOG Must reside in the property within 12 months of settlement Must be an Australia/permanent resident More info here Home buyers assistance account REBA grant What is it? A grant from the Home Buyers Assistance Account How much can I get? $2,000 What are the guidelines? Purchase price of property is capped at $400,000 Must not have previously owned a property in WA Property must be purchased through a licensed real estate agency operating in WA Property must be financed by a lending institution Property must be established or partially built at the time of contract signed Applicant must reside in the property for the first 12 months Should you wish to discuss these options any further, do not hesitate to contact our Licensee Susan Lam here. This information should be used as a guide only, you should seek further professional advice if required. Information current as at August 2020.
Aug 24, 2020
Off-Market Selling
What is Off-market selling and is it right for you? There has been a recent surge in the promotion and awareness of off-market sales. With a limited pool of houses available the list of buyers that agencies have are long, but is it the right strategy for you. What is Off-market selling? According to realestate.com.au an off-market sale is a term used to define a property that is selling, or has already been sold, without any public advertising. This process of selling a home is usually used in cases where the seller is desperate to sell their home, or they have a predetermined buyer. What it means for your property? If you feel that an off-market strategy is right for you, there are some things you need to consider first: Does the agency you choose have a large enough database of relevant buyers who are looking for a property like yours? Are you happy to not have your property exposed to additional property buyers across alternate platforms? Is price a driving factor? Not having your property on the market could result in less competition, meaning the chance to obtain your desired price could be missed. What are the benefits of listing my property? In a highly digitally focused world, it is important to ensure that your property is receiving the reach and impressions that is needs to get in front of the RIGHT buyer. Online property searches are up 35% higher than this time last year, so listing your property means that you will be seen! You have the opportunity to be seen by buyers who hadn't considered your property. How many times do you see something in the "properties nearby" section of your search field. Create more urgency and competition within the market, resulting in a stronger price outcome for you. Don't sell your property short. Are marketing costs really worth it? The fact of it is that sellers need to be ramping up their marketing to achieve the best sales outcome. Each property is individual and therefore should be assessed and have a tailored approach. Here at Mi Casa we take the time to understand your needs and wants and then determine the best plan of action for you and your property. It is important during this time to consider the important of a multi-tired digital and traditional marketing campaign to not only engage the marketplace but get seen by as many eyeballs as possible. Are there any alternatives? If you are conscious of the cost of selling your home, but want to ensure that your property is getting the right exposure, then talk to us about Mi Casa Lite and find out how you could potentially save thousands on the sale of your home. Still feeling a little overwhelmed and would like to talk through this further, then contact Susan Lam today who will help explain your options to you.
Nov 14, 2018
Buying in Perth
img {object-fit: contain!important;} Seize the opportunity – Why now is the right time for buying? If you are thinking about upgrading your property and buying in the next few years NOW IS THE TIME! I recently came across a great article written in The West about Perth’s property market and its current state. It got my thinking about the right time for buying and when it is. While it might seem quiet to some, there are some positive points that we can hold of. It had some interesting statistics and opinions that got me thinking, and I wanted to share these thoughts with you. If you are considering buying or selling in Perth, then this is for you: https://thewest.com.au/news/wa/trade-up-buyers-fuel-perths-property-market-ng-b881016823z As this article shows the market is starting to move in the right direction, especially in regards to a few of the factors I have mentioned previously about population growth, job security and business confidence. It also touches on history repeating with Sydney and Melbourne coming off the boil. Buying in Perth may be the answer for many. These are some key points I took out of it: We are not the eastern states – The Perth Bubble We need to be very mindful in WA not to compare ourselves to the doom and gloom of Sydney and Melbourne and the outcome of the banking Royal commission - be very careful when you listen to national news! If you are looking at buying property 5mins out of the Perth CBD compared to Sydney CBD, you have the potential to be saving over $18,000 per sqm. We are in a better position to afford it In WA our median house price is much lower and our average income is higher, so when it comes to housing affordability WA is the best performing state in the country. And because the average house price is $450k in Perth meaning this is approximately 5 times the average income, compared to the houses 8 and 10 times the house prices in both Melbourne and Sydney. Trading up, mind the gap The gap is the smallest it will ever be if you want to sell under 800k and buy over 800k. This means the higher the price of the property the less buyers there are and the more they have come down in price. Whereas those under the $800k mark don’t have to jump too far to get their dream home…with the pool! Where to buy and sell I am finding that every suburb has been affected differently. Suburbs like Willagee, Melville and Palmyra with homes $500 - 800k have taken less of a hit than the likes of Bicton/East Freo/Attadale $800k +. Not to mention the many bargains $1.2m+ in the Western Suburbs.... you can buy a duplex block in Mosman Park for $1.4! Or a home in Cottesloe for $1.2! This gap won’t be around forever, so if you are considering upgrading, now is the right time. If you would like an appraisal on your own home call or text me 0412742380 or email welcome@micasaproperty.com Mi Casa Property Boutique. Have us call you? Click here.