Your Empire Property Market Update March 2023
THE EXPATRIATE Property Specialist, Lauren Staley Infolio Property Melbourne, Chris Gray Your Empire Sydney, Zoran Solano, and Hot Property Buyers Agency Brisbane share insider market updates and tips for buyers and vendors in their YouTube Video with us. Here are there key points below;
What does the market feel like?
Chris Gray - Sydney
Not much happening due to low stock levels
Positive - Buyers are paying cash for properties again and not needing finance.
Zoran Solano - Brisbane
Good Number to Open to Inspections with active buyers, making multiple offers.
It feels like we have rebounded from the bottom.
Cash buyers are downsizing and reinvesting; these buyers are unaffected by interest rate increases.
Lauren Staley - Melbourne
In Melbourne there is a supply issue, around 40% down on normal stock levels; this means high clearance rates.
Agents are working twice as hard to get the deals done
There are a lot of “off-market” transactions.
In the Mornington Peninsula, there is price reductions in the 10-20 million dollar properties with Covid buyers are re-selling.
Be picky in this market.
It is the best buying since the GFC
What do we all think about interest rate rises? Where is its peak? The media is suggesting interest rates peaking in May and then potentially having price reductions.
Chris Gray - Sydney
Don’t listen to the negative speculation in the media around interest rates.
Track the interest rates rise yourself on a spreadsheet with your repayments, expenses etc
Decide if you need to increase or drop rents from your own data and what you can afford.
“Only worry about what you can control”
“Don’t try and predict the future”
Zoran Solano - Brisbane
Fence sitters are waiting until mid-year to purchase to capitalise on the potential interest rate cut.
Buying property is not instant. You need finance, cash, etc; this can take a few weeks, to time the mid-year purchase, you need to be getting ready now.
It is a competitive market
Currently, properties are selling for more than the appraisal range, which means the market is going up.
What have we seen with the CoreLogic data for February?
Chris Gray - Sydney
Sydney +0.3%
Nationally -0.1%
Tim Lawless says he doesn’t think this is the bottom, but this is a sign we are close.
Once confidence returns, prices can jump overnight 10-20%
Important to invest in the long term
Invest close to the median values, that you are less impacted by movements in the market.
Lauren Staley - Melbourne
Encouraging numbers, “fortune favours the brave” Covid price increases are "lessons to learnt”
There have been some changes in Land Taxes in New South Wales; Chris, what are those changes?
You can now pay 6 monthly instalments without paying extra interest.
Improve your cash flow, keep those funds in your offset account, and pay less interest.
Zoran Solano - Brisbane
It’s essential to have the correct planning when building your portfolio to reduce the amount of land tax you are paying.
Land tax can be debilitating for some owners, forcing them into selling their property.
What’s happening in the rental market?
Lauren Staley - Melbourne
Melbourne there is a supply issue.
Less than 1% vacancy rate.
Zoran Solano - Brisbane
It is seasonal, with January - February Peak and June-July Peak with interstate migration with the timing of their move around their children’s schooling or student university semesters.
Tenants are starting to worry about cash flow
Chris Gray - Sydney
In NSW, landlords can only increase their rent, usually from Summer to Summer.
Tenants may have their lease terminated as they may be unable to afford the rental increase.
Rents are subsidised by negative gearing, by landlords can only subside so much.
With interest rates as high as they are expect rental increases in early 2024.
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