Forecast for Australian Property Prices from Three Economic Experts

Economic experts cannot agree on the health and outlook for Australia’s property market. USB saying there would be a 35% decline in Australians’ mortgage borrowing power and a likelihood of steep declines in house prices.

On the other hand, AMP expects another 5% decline in 2018 and no decline in house prices. ANZ is forecasting the property market has seen the worst and it is expected to post an increase in prices this year and the next.

In March, capital city house prices decline 0.2%, the fifth straight month of price decline. This brings the annual growth rate to 0.8%, versys 11.4% in May 2017.

UBS forecasts a ‘credit crunch’

 

The royal commission is ‘more material’ than UBS anticipated, as regulators are expected to make the appropriate lending laws stricter, an action that would make it more difficult to obtain mortgage finance.

In this case, the maximum amount of mortgage loans could drop by 35%, due to increased living costs becoming totally added to the mortgage computations.

USB’s forecast places house prices between flat and -3% year on year in 2018 and 2019, a bigger price drops due to an expected credit tightening scenario.

AMP forecasts more weaknesses moving forward but no crash

AMP doesn’t expect concerns of a house price crash to come to reality due to three things:

  • Housing supply has not been able to meet population-propelled demand
  • The fairly strong debt serviceability
  • It is risky to make sweeping forecasts. Property prices have significantly increased in Sydney and Melbourne but have declined in Perth and Darwin and have only moderately increased in other cities.

For AMP, a crash is not likely, but it projects property prices in Sydney and Melbourne to decline another 5% or more in 2018, with more drops a likelihood in 2019.

ANZ says worst is over

ANZ forecasts no more slowdown in Australia’s capital city house prices from this moment. Contrary to the forecasts by UBS and AMP, priced will increase in 2019 and next year.

In February 2018, both ANZ and NAB recalled their forecast of two RBA rate increases for 2018, a move that is welcome for the property market.

ANZ economists believe that most of the slowdown has passed and prices would not materially drop.

 

The Most Common Styling Fails You Should Avoid

So, the interior design of your home has failed to hit the desired elegance-spot because you have no professional experience. Here is what experts say about the styling habits that you must break in order to achieve a beautiful home.

  1. Clutter

Reducing surplus furniture can instantly improve many homes. You don’t need to hang artworks on every wall or place a piece of furniture in front of it. You also don’t need to have a décor item on every surface or tabletop.  Decluttering creates negative space, which lets the eye have a place to rest and give your home space to breathe. Imagine your home without so much furniture and knick knacks and how fantastic it would look with less clutter in it.

  1. Too hip

Don’t get easily carried away by the latest trends and rush out to buy without giving it thorough consideration. Always remember that the bones of the space dictate the styling.  Use a mood board to guide your styling process, including the choice of your colour palette throughout the space. Select a major piece, like a rug or bedspread, to connect all these colours. Get your décor items and play with the décor and space while maintaining a simple and restrained palette and never forget to add textures and layers. Remember that less is more.

  1. Small rug

Size is important in the matter of buying a floor rug. With small rugs, the eye is drawn inward and the room looks smaller.  To avoid this, make sure your furniture sits on your rug or at least the front feet of the furniture does. With big rugs, your eyes look outward and a room feels bigger.

     4. No restraint

A common decorating mistake is over or under-styling.  Solution? Keep it simple and edit!  Practice restraint as less is always more. Keep to a timeless and classic style, and purchase only the things that you like. And, don’t fall for fads and passing trends.

    5. Forgetting about your individual style

It’s alright to take from outside influences, but be careful that they don’t overshadow your personal style. It is essential to discover a balance between getting ideas from others and your individual sense of style.  One way to do this is to collect pictures and items that showcase your personal style and states. You can do this through a scrapbook, a pile of textile, a Pinterest board, or magazine cut-outs. It should reveal who you are and give you a pictorial guide to use.

  1. One-stop shop

Filling up a space where all the furniture and décor items are purchased from the same store is one of biggest styling no-no. The space looks contrived, uninspired and more often showcases a hot trend that will ultimately go out of style.  Experts recommend against playing it safe, and let your home showcase your individuality. Collect anything you love, from arts to objects and textiles. The hardbound coffee table books that you love to collect can be used a décor by stacking them in a pile horizontally, or placing an eye-catching deco on top of it. Use different ways to display art, you can hang them on walls or you can lean them on shelves.

  1. Poor grouping

Décor pieces and artworks that are not thoughtfully arranged look disjointed even if they look stunning separately.  To avoid bad grouping, check the height and determine a connecting theme between the objects. Group vessels, books, sculptures and plants in a cluster to create a layered look of different heights. See to it that there is a common theme with the clustering of the objects. The theme could be colour or materials such as metal, ceramic, glass or wood.

And above all, have some fun with your styling!!

The Benefits of Using Video to Advertise your Property

These days, properties for sale often have a video that prospective buyers can watch, as well as a gallery of photos. Creating a nice video to showcase your property is an effective method to stand out and grab the attention on buyers.

Here are the benefits of having a video of the property you’re selling:

Better online tour of the your property  –  Your property is available for a “visit” any day, any time, rain or shine. Buyers can virtually view the house, all its rooms and all its important features without making an appointment with the agent. They can look at the house from the comfort of their own home or office. This is especially important for buyers who can’t spare a Saturday to attend open homes, who might be working or even interstate.

A professional and lasting impression  –  A well produced video of your home will leave a positive lasting impression on potential buyers. Make sure the video captures the beautiful features of the interior and exterior of your home. In many ways, a video is better than a photograph. For one, a video can capture motion and emotion that a still image can’t. Leaves moving to the beat of the wind, waves gently crushing the shore of a beachfront property, small children happily playing in the yard –  these are images that bring out emotions in buyers and make them take a second look at a property.

For another, a video can accurately capture the distance of the living room to the dining area or where the bedrooms are located in relation to the rest of the house. This is not easily determined when you are just looking at a series of photographs.

Greater online presence  –  A video is more likely to be on the first page of Google than a website. This alone makes it more important than ever to have a video of your property uploaded and online. A real estate video will boost your listing’s online visibility, and will become more and more visible as time goes on. Having a real estate video will put your property on search engine results faster, which can traditionally take some time, and effort, to top.

Real estate videos have not been adopted by many agents in Newcastle. In fact out of those who do, most don’t even take the time to present your home and speak in the video.  If you’re shopping around for an agent make sure you choose an agent who includes videos in their marketing strategy. This is a progressive agent who is using everything at their disposal, they know and understand marketing and how Google and social media platforms work.  They know how to market your property.  

 

 

Tips on How to Make an Offer a Seller Cannot Refuse

Homebuyers not purchasing at an auction are most likely going to have to negotiate one way or another.

You could be negotiating with an agent, negotiating against other buyers or you could be the one to make a ‘one-and-only standout offer’ that sets you apart from your competition and entices the seller to accept you!  

Think of the seller’s situation  –   You’re going to have a hard time framing your offer in the right way if you don’t put yourself in the seller’s shoes.  Sometimes an offer might be close to the right amount but the terms and conditions of settlement may not be.  For example, if the seller has already purchased their next property, you could align your settlement date with theirs.  To prevent sellers from ending up homeless, having to move twice or face a costly bridging finance, allow for a merging of settlement dates.  Another option might be letting them lease the house from you for a brief term while they look for a new home, build or pack their belongings.  

Ask good questions  –  Agents are not going to divulge information about the sellers but you can ask questions to help your situation to discover a better way to negotiate.   Try questions like these,  “Is there a specific settlement date that the sellers prefer?” or “Can you recommend any stipulations I could provide that would make my offer more attractive?”  Another question might be, “Is a pest and building report available?   

Be mindful that even after your offer has been accepted it still does not mean the property is yours.  Not until you’ve paid your deposit, signed the contract, the seller has also signed and the contracts have exchanged.  Buyers who are already pre-approved and have a Pest &  Building Inspector ready to fit them in are more likely to secure the property.  You might even consider buying the pest and building report that has already been done to speed the process up.

Let me know if you are in need of a mortgage broker, banker, financier, accountant or pest and building inspector.  I can also help with conveyancers and solicitors too!