Reduce Time on the Market by Hiring a Prestige Stylist

A part of the prestige property market that is truly thriving is professional styling for sale, which says that it can cut a maximum of four weeks off a property’s time on a weakening market and boost its price by up to 20%.

In 2018, houses in Newcastle take an average of 273 days before selling and the average time for a unit to sell is 42 days. (https://homesales.com.au/location/newcastle-nsw/)

This makes good styling vital in order to cut the time it takes to sell and to increase the sale price.

A lot of sellers are styling their homes now with the help of property stylists. However, you have to pick the right style for your market, your home, your personal taste and what you are aiming for. Property stylists say that for each dollar you invest in styling, the return is $2.

Actual costs

The costs of property styling vary by capital state. Owners in Melbourne and Sydney will usually pay top dollar for property styling. In comparison, property styling services in Brisbane, Adelaide and Perth usually cost 10 to 15% less. 

The actual styling can cost between $4000 to $6000 for a four-bedroom home in Newcastle, but most stylists are happy to leave out some bedrooms or work with you to save a few more dollars.

There is no fixed price for property styling services, regardless of where you live, because property styling is customised based on the homeowner’s individual requirements. What you can do is compare quotes from several local property stylists so you can determine a ballpark figure.

However, it is probably for the best not to think of property styling as a cost, but rather as an investment. Your home is most likely the most valuable asset you own, so you should try to get the highest possible price for it.

Home staging in a tight market

When the market is tight, when people are so busy they are scrambling for time, it is important stylists show prospective buyers the possible ways they can live in a house. In the age of social media, there are lots of content on transforming property, with peopling craving the wow factor one can derive from new tiles, a new room flow or even an interesting painting hanged in an unexpected area. 

Property styling for multi-million dollar homes

For high end properties, such as those in the multi millions, people want all the works. Prospective buyers want an experience in the property, so often agents would arrange a cocktail party or an event to present a home and create added drama. It is customary to go the extra mile for elite homes.

Additionally, an art consultant is hired to handle the hiring and installation of special artworks from galleries for added gloss. Beautiful artworks can make a huge impact, can make your home look stunning, and can always lure people’s eyes away from sights that they might not want people to see.

However, the reality is, there are many people who are unable to imagine how great a house could possibly be, and in a weak market it is even more essential to make them see this.

Where to now

If you are still unsure as to the right style for your buyers, your home, your personal taste and what you are aiming for, then contact Annette Pinkerton of One Agency Pinkerton Properties and get started with some fresh and exciting ideas.

What is the Property Price Forecast for the Next One or Two Years?

This is what is in the minds of people now that Australia’s property market appears to be bottoming out.

Not so long ago the media was forecasting a housing market collapse but the property cynics were way off the mark and as green shoots are emerging it appears the property cycle is reaching the bottom.

Nonetheless, this has been the most protracted and the worst decline in modern history.

Though the aggregate capital city market prices dropped by just over 10% from their highest level, property prices in Sydney have declined by 14.9% and in Melbourne by 11.1% from the peaks since 2017.

The ailing Perth and Darwin real estate markets have further declined significantly from their peaks following the mining boom.

Change in dwelling values

  Past 12 months Past 5 years Since Peak
Sydney -9.9% 18.8% -14.9%
Melbourne -9.2% 23.7% -10.9%
Brisbane -2.6% 7.1% -2.9%
Adelaide -0.3% 10.9% -1.0%
Perth -9.1% -19.8% -19.8%
Hobart 2.9% 34.4% -1.1%
Darwin -9.3% -29.4% -30.1%
Canberra 1.4% 22.7% -1.1%
       
Regional NSW -4.9% 22.7% -5.2%
Regional Vic -0.3% 21.1% -1.7%
Regional Qld -1.9% 4.4% -5.5%
Regional SA 0.2% -0.1% -2.9%
Regional WA -10.3% -27.7% -33.5%
Regional Tas 5.6% 23.3% -0.2%
Regional NT 0.6% -6.2% -7.9%
       
Combined Capitals -8.0% 13.5% -10.2%
Combined regionals -3.1% 11.1% -3.4%
Australia -6.9% 13.0% -8.4%

Source: CoreLogic July 2019

What is the forecast?

Property values are expected to stabilise in the capital cities by the end of 2019 and will then show modest growth in 2020, according to economist Trent Wilshire in Domain’s mid-year property report.

House price forecasts

  2019 (six-month change) 2020 (annual change)
Australia (combined capital cities) 1% 2% to 4%
Sydney 2% 3% to 5%
Melbourne 1% 1% to 3%
Brisbane 1% 3% to 5%
Perth 0% 0% to 2%
Adelaide 1% 1% to 3%
Hobart 0% 2% to 4%
Canberra 2% 4% to 6%

Source: Domain

Unite price forecasts

  2019 (six-month change) 2020 (annual change)
Australia (combined capital cities) 1% 1% to 3%
Sydney 2% 2% to 4%
Melbourne 1% 0% to 2%
Brisbane 0% 0% to 2%
Perth 0% 0% to 2%
Adelaide 2% 1% to 3%
Hobart 2% 3% to 5%
Canberra 1% 1% to 3%

Source: Domain

A Metropole research shows that prices are expected to decline more in the coming months, but the rate of decline in house prices is slowing.

Interest rates are declining, consumer confidence is improving, there is faith in the country’s government and taxation system, and lending institutions are beginning to relax its requirements and approve more loans.

The result is that more people are filing applications for home loans, more people are going to home inspections and sellers who have waiting for the market to turn our gaining confidence as auction clearance rates are increasing (though on low figures).

Analysts are monitoring for days on market to decline and sellers discounting to decline, along with more homes for sale before they declare a market boom,

Though the economy is declining, solid population growth (Treasury is predicting 1.75%) during a time when the recent construction boom is weakening and building approvals for new construction declined 20% from 2018 shows that the present glut in housing will soon be absorbed in the market cycle will pass.

Sydney Property Market Forecast

Following the biggest correction in home values in the past 30 years, the decline in Sydney prices are expected to end by late 2019, with values at roughly 2% higher by end-2019 and values continuing to increase in 2020.

The drop in Days on Market and Vendor Discounting and increase in auction clearance rates are all positive indicators for Sydney’s real estate market.

So is the increase in first home buyers interest, with 25% of home loans in NSW in March approved for first-time buyers,

But some sectors of the city’s property market are expected to weaken significantly more than that average in 2019 (specifically the off the plan properties and new apartments), while some sectors of the market will weather it out.

Investors are staying away from the off the plan apartment segment and countless of those who bought off the plan a few years back are presently having difficulty reconciling valuations coming in on completion at well under contract price during a time when lenders are more hesitant to approve loans for these properties.

In the backdrop, however, solid economic growth and jobs creation is driving population growth and current demand for Sydney property.

Simultaneously, overseas interest from tourists and migrants remains.

In Sydney, investors are being offered a chance to purchase established apartments in the eastern suburbs, lower north shore and inner west in a “buyer’s market” with slight further drawback and the expectation of the market recovering in late 2019 and 2020.

It is an ideal countercyclical period to consider purchasing an investment grade property in Sydney.

Melbourne Property Market Forecast

House values have dropped 11% and the prices of the Melbourne Apartments has declined 8% since their peaks. However, house and unit values are predicted to rise by 1% between June and December 2019, and in 2020, house values will increase by 1 to 3% and unit values by 0 to 2%.

However, Melbourne’s property market is highly divided, with values in some segments already recovering significantly.

The resilience throughout the apartment segment, notwithstanding increased supply levels, is likely the result of a combination of affordability limits in the market plus increased number of home buyers buoying housing demand throughout the lower price ranges of the market, due to the First Home Owner incentives.

The Melbourne property market is getting back its confidence and the principal basic growth drivers are still solid. An example is auction clearance rates, which are increasing but in much smaller quantities.

General property prices will be supported by a strong economy, jobs growth, the most robust population growth in the country, and the arrival of 35% of all foreign migrants.

Take note that Melbourne ranks as one of the 10 fastest-growing major cities in the developed countries, with its population expected to grow by roughly 10% through 2023.

Brisbane Property Market Forecast

Brisbane’s house and unit prices are forecast to bottom out through December 2019 and house prices to start increasing, while apartment prices will continue to be flat for a while.

But house prices are predicted to increase by 3 to 5% in 2020.

With migration numbers increasing, supply under control and overall strong rates of housing affordability, Brisbane’s housing market basics are proving to be stronger than most other capital cities.

Simultaneously, the underlying robust demand from investors and home buyers from the southern States at a period when returns are appealing and housing affordability is fairly strong and putting a floor beneath property values.

Brisbane economy is being buoyed by big projects like Queen’s Wharf, HS Wharf, TradeCoast, Cross River Rail, the second airport runway and the Adani Coal Mine. However, jobs increase from these projects will not commence for a few more years.

There has been a major improvement in local consumer confidence as more homebuyers and investors show interest in a property.

Canberra Property Market Forecast

House prices in Canberra are forecast to increase by 2% and unit prices by 1% through the rest of 2019 and in 2020, house prices are expected to increase by 4 to 6% and unit prices to rise modestly by 1 to 3%.

This will make Canberra the country’s most robust housing market in 2020, buoyed by high population growth and low unemployment.

But the existing high number of new apartment buildings (unit, apartment and townhouse approvals during the past year are 30% higher than in 2018) will hinder unit values from increasing.

Perth Property Market Forecast

Property prices in Perth have been declining since mid-2014, but are forecast to bottom out over the rest of 2019, and home and apartment values are expected to gradually rise in 2020.

But market sentiment will take a long time to recover in the Western Australian capital.

The increasing population growth, which is expected at 1.5% in 2020, up from 0.9% in 2018, is one of the encouraging factors for Perth.

Hobart Property Market Forecast

Hobart’s property market has been one of the best performers in the past three years, but prices are flat so far in 2019.

In 2020, house prices are forecast to grow by 2 to 4% and units by 3 to 5%.

Adelaide Property Market Forecast

The current modest property price growth in Adelaide is expected to continue for the rest of 2019, with house values forecast to rise by 1% and unit values by 2%.

In 2020, property prices are forecast to increase by 1 to 3%.

House prices have increased steadily by roughly 3% in recent years (units have increased by roughly 2% per year), though prices have become stable in 2019.

What to do to stay ahead in the present market!
With indicators pointing to an excellent countercyclical buying prospects at present, you will need independent expert advice and thorough consideration in navigating the different market conditions in Australia and more importantly here at home in Newcastle.

An independent expert like Annette Pinkerton of One Agency Pinkerton Properties, will help you formulate a strategy or conduct a review of your circumstances and help you achieve your property goals.

 

 

Etiquette for Buyers During Open House

Home buyers don’t want to end up with a dud, so a certain amount of looking and inspecting is only to be expected. However, how much is too much?

 

What are you allowed to do? Do you walk straight in? Do you present and ID? Is there a dress code? What questions can you ask? Are opening cupboards acceptable? Here are the answers to all your questions and more.

What can would-be buyers do during home inspections?

1. Ask questions

The goal of the agent is to sell the property, so feel free to answer as many questions as you like. If you have additional questions, you can also call the agent after the open house.

  • Has the home been renovated?
  • What are the buyer’s reasons for selling?
  • Are there other offers you have received for the property?
  • Is the area going to have major developments?
  • How many months has the property been on the market?
  • Are there problems with the house, the land or the nearby properties?

2. Inspect for damage

You can open kitchen cupboards, open the taps to check the pressure, or check for squeaking doors. Be polite when you request to use a tape measure to check for dimensions.

3. Ask permission to take photos or video

Listings already feature photos, videos and floor plans, but it is still generally acceptable for prospective buyers to ask to take photos or videos at an open house. But just to be safe, ask your agent if it is okay to do this.

4. Feel at home, with limits

When thinking about purchasing a home, it is normal to want to know how it is to live there, so don’t hesitate to sit on the sofa or the kitchen counter. However, don’t do things like jump on the bed.

5. Wear comfortable attire

If you are worried about what to wear for an open house, don’t. Most open homes are conducted during the weekends, so people will be in a relax mode.

 

Things you shouldn’t do in an open house

What you shouldn’t do during an open house can be summarised in two words: basic manners.

1. Openly critique the households

It is normal to find issues while you are looking at the property, but it is rude to say out loud your criticisms. What you should do is call the agent when the open is finished to talk about any problems.

2. Bring beverages or go barefoot

Not bringing drinks or anything that might spill and make a mess in the home is a common courtesy. And even if you are attending an open home of a beachfront or beachside property it is not appropriate to go without footwear.

3. Take kids with dirty shoes with you

Because open homes are typically held on weekends, busy families will try to squeeze this in their scheduled activities. Don’t allow your kids to enter the home with dirty shoes in consideration of the homeowners.

4. Snoop

Taking a quick look about how spacious the kitchen cupboards are is quite different from snooping around by going through other people’s belongings. Never snoop around during open homes.

5. Ill-mannered

Being polite is the most effective way to build rapport with the agent. Agents do encounter people who are rude for various reasons, but they are at open homes on behalf of the owners, so the best approach is to be well-mannered and communicate with the agent.

Providing ID

In Australia, there is no law requiring would-be buyers to provide identification when attending an open house. But you may be asked by the agent to sign a log before entering the property.

A reliable agency will send more than one agent to an open home, so there will be someone to greet you at the door. You are entering someone’s home, so you would be asked to sign you name and provide contact information.

If you don’t want an agent to make a follow-up call to you, simply state that on the day of the open house.

7 Common Mistakes to Avoid When Buying Property

Majority of the people who enter the property investment market don’t succeed. They commit mistakes that can easily be avoided.

Here are eight mistakes that are easily avoided and help you successfully navigate the path towards property investing.

1. Choosing the wrong loan structure and lender

Many investors choose a loan type that works against them rather than for them. This can have serious consequences later on. Similarly, choosing the wrong lender for their particular investment property can have negative effects on their ability to secure a loan for their next property.

2.  Lacking an even strategy of capital growth and cash flow

Focusing only on capital growth can compromise cash flow, causing the investor to eventually lose the capacity to borrow and unable to keep growing their portfolio.

Similarly, focusing on higher yield property can compromise more ideal locations for capital growth, leading to less wealth being produced in the future.

3.  Not doing research

Being myopically minded, people buy where they are familiar with and take shortcuts when they decide on a property, foregoing to spend time on doing further research that would benefit them.

Buying where your home is, and where you are at ease can often result in considerably limited opportunity.

4.  Losing patience with your investment and selling too soon

If you believe you bought the perfect property, it is smart to hold on to it. Property investment is long term.

If you are not developing or subdividing or renovating for profit, you usually have to keep the property for a while to let it profit from the property cycle instead of being badly affected by the cycle it is in.

5.  Waiting for the right property

Fear is usually the culprit of analysis paralysis and the inability to act. The sad part is when you suddenly make the realisation when you’re already 65 years old, and hadn’t done anything for your retirement, except for increasing a negligible amount in superannuation. This usually happens because for many people doing something is far scarier than not doing anything.

6.  Too late in realising that you underestimating the cost of a property

The cost of property includes rates, insurance, agent fees, maintenance allowance, water, and more. Make sure to hire the services of a quantity surveyor to create a depreciation schedule so you know the tax deductions that you are eligible to claim.

7.  Taking advice from backyard experts like family and friends

Family and friends usually don’t have the knowledge and experience to offer you helpful information. Don’t listen to opinions and hearsay; search for facts and figures.

These people are not out to destroy you; they probably just want to feel important by providing you with an opinion. Seek the advice of a person with experience, someone who owns several properties, as they have enough experience to give advice.

You can increase your chances of being more successful by knowing about these mistakes and doing something to avoid them.  In the end, the key is your borrowing capacity, creating a personalised strategy, and buying in an ideal location to conform to the strategy, your personal situation, and your objectives.  The most important is knowing that fear is the biggest obstacle to an investor’s success. Defeating fear is crucial. Fear shows itself in many varied ways, so understanding and tackling them head on should help you overcome.

One of the major contributors to a satisfying life is investing for your future and being financially secure in your retirement.