Forecasts and Predictions for the Property Market in 2022

 

In 2022, property prices are expected to remain high due to demand in selected areas. Rental vacancies for apartments are expected to decline with the opening of international borders. For first home buyers, activity is likely to decline in major cities.

The following are the seven property forecasts for 2022:

  1. Decline in home buyer activity

Property prices rose significantly this year, causing many first home buyers to be priced out among major markets. For those looking to buy in 2022 and beyond, the challenge is their home deposit. While money will be relatively easy to come by, the available benefits with price limits attached make it impossible to stay under because of price growth.

  1. Prices will be demand-led instead of supply-short

Growth rates in a number of locations will be reduced as listing levels return to normal.

There are various reasons for the respective cycles of many locations to continue. These include localised strength in their economies; the persisting exodus; affordability; lower rates of growth in the last decade, leading to a longer cycle rate and high present market pressure. These areas will experience high demand.

  1. Continuation of change as Australians retire and continue with flexible work

People wanting to get away from the city post-lockdown made a decision to relocate to either the coast or regional areas.

Because of the pandemic, people were forced to re-assess their current living situation and improve it. People are either downsizing or investing to achieve retirement earlier. It’s not something novel – it simply became obvious during the lockdown – and will continue at higher than previously recorded levels.

  1. Borderless buying will become common

Investment opportunities in capital cities will always be there, but smart investors are outside of those locations. Virtual shopping is not a new concept, but it became popular during the pandemic. With the help of professional buyers’ agents, it has become easier to buy outside of your own city or state and ease your concerns.

  1. Various growth levels across micro markets

Investors should remember not to just buy anywhere in 2022 because the upward trend seen last year may not happen. Each micro market will have different factors shaping their growth.

It was 2000 to 2004 when growth occurred across Australia in similar fashion.

  1. Apartment rental vacancies will decline and further burden rental prices

With foreign borders reopening and skilled labour migration and foreign students coming back, apartment rentals will improve as younger immigrants become more used to overseas apartments.

  1. More homebuyers will purchase using their self-managed super fund (SMSF)

Providing the market and interest rate continue to be competitive, there will be opportunities for investors to drive their own financial future.

 

10 Ways to Create Shade in Your Backyard

Summers are best spent outdoors. But it has to be a place where you can relax and eat comfortably. This can be achieved with shade.

Adding shade in your outdoor space will keep direct sunlight away from you and your fragile plants, as well as keep them cool.

Here are 10 ways you can create shade in your garden or outdoor area:

  1. Plant a tree

Gardens and even balconies have to have trees. But you need to choose the right kind of tree that fits the space.

If you have a small balcony and can hang baskets from the roof, plant broad-leafed plants that will provide a canopy and shade without taking up space below.

You can have both shade and privacy by positioning planters with a tall sprawling shrub or bamboo. You could bring in a potted palm to transform a small city apartment or unit into a calming space.

There are several factors to consider if you’re considering planting in the ground, including how tall the tree is going to be, what impact it will have on the view of the neighbours, are there pipes that the roots will block, etc.

  1. Outdoor umbrellas

For small outdoor spaces, an umbrella is perfect because it is inexpensive, simple and temporary.

There are many options available, including collapsible cantilever umbrellas and artsy collections of suspended Japanese style paper umbrellas.

  1. Build a tent                                            

If your taste runs to the bohemian style, but you prefer something temporary, build a canvas or cotton canopy or tent above an outdoor seating area or build a teepee with some cushions on the ground. For added shade, use drapes and curtains.

  1. Install a canopy

A hot day can be bearable with a simple canopy hang between trees. You can install a more permanent canopy that can serve as a blind and let the sun in when you need it.

  1. Make a trellis

Another great idea is an overhead wooden trellis with a matchstick blind or a dark screen as cover. A climbing plant like wisteria is a good idea as it lets in the sun during cool weather but still provides greenery and shade during the summer.

  1. Hang a shade cloth

For a streamlined contemporary look, an affordable, simple option is by hanging a sail of shade cloth between two posts. This is perfect for courtyards or on a pergola.

You may need to talk to an expert since it is a structure that needs to be firmly attached so that it won’t be blown away by a strong wind or during a storm.

  1. Use DIY screens and shades

DIY screens and shades are available in different styles at your local hardware store. Options include traditional lattice, more modern laser-cut metals, decorative screens and outdoor blinds.

  1. Create a green wall

Plant a high green wall along the western border of your property to block out the harshest sun. Make sure to follow council rules on fence height. Lastly, choose the right sun-resistant plants.

  1. Construct a gazebo

A small gazebo or rotunda is worth considering if your yard has enough space. Aside from providing shade, it could also be a feature in your garden.

You have the option to purchase them flatpack and DIY, or have one custom made.

  1. Construct a verandah or pergola

A verandah or a pergola is the most effective and functional shade, but not the most economical. It can prevent your house from getting natural light and it requires painting and maintenance. You also need to secure planning permission before you can build this type of structure.

So there you have it.  10 great ways to create a little shade in your backyard.

 

What is a property appraisal?

Ever wondered what a property appraisal is? Why online calculators to determine the value of your home don’t really work? And also, why a Real Estate Agent can’t always provide you with an appraisal on the spot. Understanding the process of how your property’s worth in the current market is determined is important.

A property appraisal is an estimation of what your home may be worth in the current market. It is a free-of-charge service provided by a real estate agent who will produce an educated opinion based on several elements and factors.

In determining a market opinion of your property, agents take into consideration the following factors:

• Recent sale prices of similar properties in the area,
• Location, aspect and outlook of the property,
• The presentation, features, age and condition of the property,
• The current state of the property market.

Most potential sellers will usually request an appraisal from a few agents before making a selection of who will ultimately sell your property. However, beware – it is recommended that you conduct your own research so you can decipher and make an educated decision about whether you agree or disagree with the agents information and marketing proposal.

How is a Property Valuation Different?
A property valuation is usually performed by a Certified Practicing Valuer who will charge a fee for the service.  A valuer will inspect the property, carry out research and provide an analysis into the local market and report on issues affecting the current market value of the property. This type of service is commonly ordered by a bank or financial institution prior to approving a home loan.  Valuers are not real estate agents or associated with any real estate agency.  Some property owners wanting an independent opinion may also require a valuer for family settlements, capital gains tax or even building insurance.

How to Research the Market Yourself
You can do your own research to find out what your property may be worth in the current market.

  • Inspect local homes that are similar to yours. The level of interest from buyers will help you to measure the current market conditions and give you an idea of how your home compares.
  • Study websites like www.domain.com.au, www.realestate.com.au and the agency websites for sales in your area and specifically look for houses like yours.

What is a Seller’s Market and How Can it Affect Your Price?
A seller’s market is when buyer demand outweighs housing supply.  It’s when greater competition inevitably drives property prices up favouring the seller.

What About a Buyer’s Market?  How Does it Affect the Sale Price?
A buyer’s market is when market conditions favour buyers. In a buyer’s market there are usually a greater number of properties for sale and less buyers. This may come about because of rising interest rates, inflation or a slowing economy. In this type of market, sellers need to be competitive with pricing in order to achieve a sale.  The consequence maybe that they just help everyone else sell their home instead!

Property owners love to discuss the market – what’s happened, what’s going to happen, how it will happen and for how long!   Sellers are always debating if they should sell now or wait for something better, and buyers often think that they should hold off buying believing housing prices will drop.

Booking a property appraisal with Annette Pinkerton of One Agency Pinkerton Properties will allow you to discover current market trends and gauge where your property is positioned. To get your free property appraisal simply call Annette on 0418447856 or click here.

 

5 Things to Consider When Rightsizing

Rightsizing is replacing upgrading and downsizing as the hottest trend in lifestyle change. Home buyers are trading big, high-maintenance homes for spacious high-end apartments.

Experts share the 5 essential things you need to consider when rightsizing your property.

  1. Your Spending Power
    Having equity, and plenty of it, is a big advantage when rightsizing. You can unlock your equity by selling your family home and using the proceeds to purchase a new home in cash.  Apartments are generally less expensive than houses, so at a comparable price point, you can afford a more luxurious address in the apartment market.  Or, if you have a family home with rental appeal, you can refinance and keep it as an investment property. This will allow you to buy another property without using your savings.  It gives you purchasing power without reducing the value of the asset and not losing the potential for future capital gains.
  1. Design and layout
    You’re not swapping your home for a shoebox when rightsizing – you are searching for a space that is right for you.  Rightsizers can include retirees, families and even young professionals. It can be diverse, so choosing the right floor is important. The common preference is two-to-three bedroom apartments with house-like sizes, particularly the kitchen, bathroom and living area, as well as a laundry and storage for their hobby and recreational belongings.  The varying requirements of rightsizers are motivating developers to focus on flexibility and not on the “one-size-fits-all” approach.
  1. Lifestyle amenities
    The exclusive perks on offer is one of the major drawcards of rightsizing. Unlike normal homes, apartments provide extra amenities such as pool decks, gyms, dining rooms and barbeque areas that can use for entertaining with friends.  Some apartment complexes even have a rooftop bar, spa, outdoor cinema, playground, dog run, visitor parking, garden clubs and more. These facilities and amenities not only offer long-term appeal but are also important for creating a sense of community among residents.
  1. Location
    According to research, rightsizers prefer to be near the city, in walkable suburbs, and in proximity of cafes and shopping. This makes inner-city suburbs attractive to rightsizers.
  1. Incentives
    New builds commonly offer buyer incentives, including appliance upgrades, gift cards and even cash amounting to tens of thousands of dollars. You should allot time to explore the kinds of deals on offer.