There are just under eight weeks to go until Christmas – even less time until the frivolity of the holiday season is upon us. It’s a lively time of hectic personal, social and business commitments, followed by a period of relative down-time. So what if you’re in the market for a new home – should you buy before Christmas or put it off until next year?
Whether it’s gift-giving, taking a holiday or entertainment expenses, the festive period can put a strain on the budget. According to Credit and Charge Card Statistics reported monthly by the Reserve Bank, Australians owe more than $44.9 billion in credit card debt, and our credit card purchases in December are at least 15 per cent higher than the average monthly purchases throughout the rest of the year. With many economists predicting more than one interest rate rise in the next few months, house-hunters need to plan their finances very carefully.
But while it’s an expensive time of year, there’s also opportunity to snap up a pre-Christmas property bargain.
“It is a really good time for purchasers to be picking up a good buy, pre-Christmas,” says Georgi Coward, Real Estate Agent with Cunninghams Property. Coward explains that in December, homes on the market are those leftover from spring, which may not have been priced appropriately. “Vendors realise at this stage that it hasn’t sold and that they’ll now be waiting an extra, longer time.”
“A lot of buyers disappear as well, so there are just the really keen ones that are out there,” says Coward. “They’re often the ones that will pick up a bargain, as vendors are more negotiable, and there’s a little bit more desperation to sell, move on and enjoy Christmas.”
As for property values, there are indications that prices will only go up from here. “Overall we’re finding that buyers are very confident about the direction of the market and most agree that 2010 will see between five to ten per cent price growth across the board,” says John McGrath, CEO of McGrath Estate Agents. “Serious buyers have been looking to get set in the market for the last three months.”
McGrath says that interest rate rises will have an impact on anticipated price growth “only if we see a two per cent hike in the next nine months, which is unlikely.” He says, “Most buyers have factored in another one per cent in their thinking and are happy to buy with that in mind.”
But buying next year has its benefits too. “January can be a good time to be buying with leftover stock that hasn’t sold prior to Christmas,” says Coward. Holding off also gives you a little more financial breathing space over the holiday season, and the chance to pounce on the fresh New Year stock as it comes onto the market – while other buyers are taking holidays.
“There’s an opportunity that you can jump on it before anybody else, and before it hits the papers,” says Coward. “But you may end up paying a premium to take it off the market.”
If your home is, or will be on the market before you buy, these considerations apply to you as a vendor as well, not to mention the need to time both your transactions optimally. So, whether ‘tis the season for a sale or not, ultimately depends on your circumstances and needs. And your Christmas wish list.
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0403 144 822
(08) 9300 0686
michael.cormack@aussie.com.au
Mike Cormack
Aussie Home Loans Joondalup
Tuesday, November 3, 2009
Christmas Present Or January Sales? When Is The Best Time To Buy Property?
Monday, July 6, 2009
Searching For Your Dream Home Online? Google Real Estate!
This month Google released Google Real Estate Australia and NZ. They now provide current property listings with information collected from many third party websites. You can use Google's powerful search engine to customise your search with specific criteria like number of bedrooms or bathrooms, price and suburb. Using Google's famous 'Maps', they indicate properties for sale or rent with a 'marker'. Clicking on the marker will provide the searcher with some useful information and a link to the agents site to view the property in detail.
The feature also allows independent sellers to list their properties for free, so long as they are shown on a website. “People can upload a feed of all of their properties and they can do that one or more times a day to keep the information up to date,” Google spokesmane Andrew Foster said. “With cities like Perth being so remote from the eastern seaboard, this kind of technology will be an advance for interstate investors who can do their research and go on virtual tours that they might have not seen.”
Check it out right here.
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Tuesday, June 30, 2009
Perth's Hot Suburbs - Where To Find Value
When searching for the most suitable location to purchase your new property, value for money and growth are generally considered - more so if the property is for investment. So what Perth suburbs are currently considered 'under-valued'?
The July issue Australian Property Investor magazine's feature article is '18 Hottest Suburbs Revealed'. Perth features twice in this list by way of Rockingham and Mandurah. Recent infrastructure spending is the main contributor, according to the magazine. The rail and freeway extensions have recently opened, making the region much more accessable and so much more desirable.
A recent feature on realestate.com.au agrees. The below excerpt by Peter Koulizos also puts Rockingham as Perth's number one pick for house price growth and Victoria Park as the leader for units.
Houses – Rockingham
Ongoing expenditure by both the private and public sectors is a sure sign that this suburb will continue to do relatively well as far as property prices are concerned. Add to this the proximity to the sea and good rental prospects from Murdoch University, Challenger TAFE and the hospital nearby, both investors and home buyers will be targeting Rockingham in 2009.
View listings in Rockingham
Units – Victoria Park
Its proximity to the city, Swan River and the increased state government expenditure as part of the Network City strategy are just three reasons Victoria Park will do well in 2009. House prices are quite expensive but median unit prices are only $300,000. This is one of the few locations in Perth where renovating for profit is a very real possibility, due to the many character dwellings in the area.
View listings in Victoria Park
0403 144 822
(08) 9300 0686
michael.cormack@aussie.com.au
Mike Cormack
Aussie Joondalup
Monday, June 29, 2009
Tips to Sell You House For More
If you are thinking of selling your home, or if you already have it on the market, of course you want to get the best price possible and you don't want to see it sitting on the market for longer than necessary. Making some small subtle changes to your property can mean a huge difference in the selling price and time on the market. Read through and see. Please add any other tips or experiences you may have for other readers.
INSIDE PRESENTATION
Ensure your house is clean and tidy
Remove any clutter.
Make sure windows are sparkling clean.
Check that all doors work well and doors don’t jam.
Think about how you arrange your furniture.
Consider obtaining advice of an interior designer.
Rub lavender oil into door jambs to provide a clean smell.
Shower screens, bathrooms and ovens should all be immaculate.
OUTSIDE PRESENTATION
Check gutters and remove any rust spots or debris
Mulch gardens and mow lawns, weed and prune shrubs
Replace any broken fences or missing pailings.
Ensure all gates are working properly
Clean paving to courtyards or pool areas.
Check all pool equipment is in working order.
Pool water should look inviting and well cared for.
Garages and carports should not be cluttered.
Try and store things away neatly.
Water features should be operational and well presented.
INSPECTIONS & HOME OPEN
Buyers will feel more comfortable when they inspect the house if the owner is not home.
Ensure the house is a comfortable temperature.
Brewing coffee creates a pleasant aroma throughout the house.
Open windows and blinds to create natural light.
Fresh flowers always add colour and are a must
Switch on your answering machine, phone ringing can be off putting for potential buyers.
If you are selling, or thinking about selling, with the intention of buying a new home you should speak with a mortgage broker sooner rather than later. Did you know you don't always have to sell your current home before buying the new one? I am a mortgage broker at Aussie Joondalup and am experienced with these loans. Contact me today to see how I could help.
0403 144 822
(08) 9300 0686
michael.cormack@aussie.com.au
Mike Cormack
Aussie Joondalup
