For property investors, growing wealth depends on rental income or capital gains, and these are both anchored on the popularity of a property’s location among tenants and buyers. This is why it’s essential to know what makes the location of a property in demand to your target clients. Based on a recent Raine & Horne article by property management business support manager Maria Milillo, here are three factors to consider when choosing where a property is built: 1. Accessibility A 2017 study by RMIT University revealed that Australian city workers spend an average of 66 minutes on their daily commute.   Spending that much time on the road affects productivity. And this is why Aussies are attracted to residential properties near schools, employment hubs, healthcare facilities, and those with lifestyle amenities. Properties in locations that link all these living essentials in a commuter-friendly system help elevate the quality of life of […]

With record-high property prices all over the country, more and more property owners have been contemplating selling their property. If you’re one of those intending to sell, here are some simple tips to boost your chances of success. Aegean Zhang, sales director of Sydney-based Atlas Real Estate, has recently suggested that if you keep your property up to date, it can generate bigger returns when it’s time to sell. “Even in challenging markets, simple improvements to a property can help you to push up the sale price and generate increased interest from buyers,” Ms Zhang said. And no, home improvements don’t have to cost you an arm and a leg. “Improvements don’t have to be expensive; they just have to emphasise certain features of the property and minimise negative elements. It is all about delivering the right perception for the right market and this can be done through dressing a property,” […]

The property market has had an earlier than usual jumpstart in January 2022. After the traditional seasonal slowdown which comes through Christmas and the New Year,, CoreLogic’s Property Market Indicator Summary for the week ending 23 January 2022 has reported that 448 homes went under the hammer last week across the combined capital cities, a significant rise from the 244 homes sold this time last year. According to CoreLogic research analyst Kaytlin Ezzy, the auction activity resulted in a preliminary auction clearance rate of 68.6 per cent, from 310 results collected thus far. Melbourne emerged as the busiest capital city with 144 homes going under the hammer. Sixty-four per cent of the results obtained thus far have been successful, putting it nearly on par with the December 2021 average final clearance rate of 63.0 per cent. Last year, 127 homes were auctioned during the same week. Sydney saw 79 homes sold this week, which was an improvement from the […]

From 1 November, banks must ensure that new home loan applicants would be able to repay their mortgage at a new rate – so what will this actually mean for would-be buyers? Australian Prudential Regulation Authority’s (APRA) recent rule change has placed the new “stress test” for home loan applicants at 3 per cent – from the previous 2.5 per cent buffer. What this means is that banks must consider whether would-be borrowers will still be able to afford repayments on a loan 3 percentage points above current rates. APRA has stated that this would reduce people’s maximum borrowing capacity by approximately 5 per cent. According to RateCity, the big four banks (CBA, ANZ, Westpac and NAB) have stated that loans with unconditional approval that have not yet settled will still be processed using the old 2.5 per cent serviceability test.  They’ve also indicated that they will continue to assess customers with pre-approval […]

One of the strongest benefits of investing in commercial property is the ability to add value to the property to increase its worth. This aspect alone is what makes commercial so lucrative and sets it apart from its low-yielding counterpart, residential. If you’re looking to maximise your commercial property returns, here’s four key things to consider: Rent Increases One way to slowly build capital in a commercial property is to simply allow the rent to increase over time. If you are negotiating the lease yourself, this could be an opportunity to add value at a faster rate. Most leases have an annual scheduled increase built into them and as the rent grows, so does your commercial property’s value. There are a few options for annual rent reviews. You can set them to coincide with the CPI (Consumer Price Index), which is the most common approach. A fixed percentage increase is […]

Home values in Australia’s most in-demand country towns are surging strongly as the COVID-led exodus from capital cities continues, with the nation’s top five growth areas for regional migration located within a three-hour drive of Melbourne.  New research from the Commonwealth Bank showed Melbourne’s numerous and lengthy lockdowns drove a mass exodus to nearby country towns in 2020-21, with five local government areas within a three-hour drive recording at least a 47 per cent lift in regional migration. Leading the nation with a 68 per cent rise in regional migration was the Shire of Moorabool in western Victoria, with its main centres Bacchus Marsh and Ballan not only recording strong population growth, but also big gains in house prices. CoreLogic data showed median house prices rose by 17.6 per cent in the 12 months to the end of August in Bacchus Marsh, which is located around 45 kilometres from the Melbourne CBD. Ballan house values […]