Spring is traditionally the most popular time of year to sell a property. It’s the season for new beginnings, when buyers spring into action (pardon the pun). Homes and gardens often look their best in spring too, which may drive up the sale price in some cases.

However, spring may not necessarily be the best time of year to sell for everyone, particularly if your property is an established home or located in a city or metropolitan area. Whilst spring may bring increased buyer demand, it may also mean many more property listings in the area your home is located. If there are many properties similar to yours on the market, that could mean lower prices.

Summer

If your home is located in a popular summer holiday destination, summer could be the best time of year to sell. Holiday-makers could potentially be your best market audience!

Properties that are particularly cool may also be more attractive from a selling point of view in summer. Depending on where your property is located, there may also be fewer properties on the market to compete with so it could help you to achieve your price. However, be careful about selling in December or January, when people are generally winding down and preparing to relax over the festive break and summer holidays. If your property is located in a city location, or its market audience is families with school-age children, there will be fewer buyers on the inspection circuit.

Autumn

Autumn is another popular time of year to sell, with auction activity usually red hot just before Easter. Many prospective home buyers hit the open house inspection circuit at this time of year, hoping to find a new home and get it settled before the cold weather arrives. Again, consider your location and check out what other properties are on the market to see how much competition you’re likely to encounter.

Winter

Your home’s key drawcards could influence when to sell. For example if it has an amazing fireplace or a fantastic underfloor heating system, it may be more appealing to buyers in winter. Likewise, if your property is in the snow-fields or an area that is popular for winter sports, winter could also be the best time to sell. West-facing properties tend to receive more sunlight around this time, and this could make them more appealing in winter than at other times of the year.

Another advantage of selling in winter is there may be fewer listings to compete against, which could drive up competition amongst buyers and lift prices, depending on the area where your property is located. Properties in popular locations often sell quickly all year round.

Don’t forget to consider market conditions

In addition to seasonal factors, it’s important to consider local property market dynamics, specifically supply and demand. If there is an oversupply of properties on the market, it may be best to wait it out until conditions change. The best option is to choose a time when stock levels of properties that are similar to yours are low.

If it’s a ‘buyer’s market’ as exists in Perth – a time when there are more properties available for sale than there is buyer demand – there may be no ‘best’ time of year to sell. It may even pay to rent the property out for a while until the market warms up.

Alternatively, if there’s not enough housing stock to meet demand and it’s a ‘seller’s market’ – as has been the case in Melbourne and Sydney – you’ll likely be able to negotiate harder and push up the price. Other influences such as new developments, changes to the first home buyer grant or stamp duty, and interest rate fluctuations can also affect supply and demand, so it’s worth talking to us about these factors.

Do your research and ask for advice

When it comes to selling your home, it’s best to take all of these factors into account, along with your personal circumstances. Your local real estate agent is a great source of information about when to sell, or you could ask us for a free market appraisal report. It’s always wise to do careful research when buying or selling a home, so please don’t hesitate to ask us for help. If you are looking to sell your home and purchase a new one, please speak to us about your finance options as we’re here to help you find the right loan for your financial circumstances and goals. We usually recommend that you try to sell before you buy if possible, so you know how much money you can budget for your next home purchase. However, if you do require bridging finance to tide you over, we can also help you with a competitive option. Please get in touch today – we’re always happy to help!

Interest Rate News

This month, the Reserve Bank of Australia decided to keep the official cash rate on hold at 1.5%. Lenders continue to cut rates for owner-occupiers on principal and interest home loans, and at the same time, try to ensure the proportion of their loan books for investment purposes and interest-only loans meet APRA’s lending guidelines. Despite these restrictions, some lenders have cut interest rates for investors on principal and interest loans in recent weeks. Overall, interest rates remain low and there are competitive deals for both home owners and property investors.

Property Market News

Last month, dwelling values increased by 0.11% overall across the combined capital cities. Sydney’s growth was flat during August, while Hobart led the way for growth in dwelling values, at 0.61%. Hobart was also the strongest capital city performer for the past 12 months (13.61% growth). Canberra experienced 0.57% growth in August, while Melbourne remained resilient, with property values increasing 0.54%. Brisbane and the Gold Coast saw an increase of 0.18% for the month, and in Adelaide property values edged 0.03% higher. Perth’s dwelling values slipped -0.83%, while in Darwin they fell -2.17%.

Auction volumes remained high in Victoria and New South Wales, with 1987 combined scheduled auctions in the week ending September 3. Both had relatively strong clearance rates of 73% and 70% respectively. Across the other auction markets, clearance rates were varied. Tasmania had 10 scheduled auctions, with an impressive 100% clearance rate. The ACT had a 68% clearance rate for 69 scheduled auctions, while South Australia’s clearance rate was 62% for 80 scheduled auctions. In Western Australia, 28 properties went to auction, but only 58% sold, while in Queensland there were 292 scheduled auctions, with a clearance rate of 36%.

If you have property plans this spring, talk to us about a competitive home loan, investment loan, or renovation loan that works to your advantage. We’ll compare the market and line you up with a mortgage that ties in with your personal financial circumstances and goals. Please get in touch today – we’d love to help!

Whether you’re ready for a complete home renovation or simply want to bring your house up-to-date with a few cosmetic changes, you’ll want to get on top of the latest trends so you can make some wise choices on where to invest your budget. Here are 7 top renovation and décor ideas that could help you make sure your money is well spent.

1. Get eco-friendly.
   People want more sustainable homes and as eco-friendly renovations genuinely help to make older homes more sustainable, they’re on trend in 2017. Essential considerations are sustainably produced ceiling and wall insulation, the general use of sustainable building materials, built-in waste management systems, rainwater tanks and water recycling systems, solar energy panels, green walls and leafy facades. Roof gardens and passive design elements that provide natural light and reduce heating and cooling costs are also popular. You probably won’t want to go as far as foregoing the dishwasher or air conditioner entirely, but you should invest in energy saving appliances wherever possible.
2. Create more space and make it more interesting.
   More spacious homes (or homes that appear to be more spacious) are ever popular with home buyers today, so renovations that include extending or adding extra rooms to your home are still great ways to add value in 2017. However, rather than just focusing on knocking all the smaller rooms into one big open plan communal space, the new trend is to also provide options for privacy, with spaces that offer interesting nooks and crannies where people can escape with their personal technological devices and do their own thing.

   Roof rooms and attic renovations are going to be popular in 2017, because they provide opportunities to add a point of interest and difference. The open, spacious look is still the fashion, however finding ways to add character and uniqueness are trendy too.

3. More efficient storage spaces.
   Investing in upgrading your laundry to create and maximise storage space was a very popular option for home renovations last year, and this is all set to continue into 2017. Maximising your storage areas means you can keep all of your untidy clutter out of sight, which will make your home appear much more spacious and help you keep the look up-to-date, with clean crisp lines. Adding clever storage that utilises any dead space in your home is an easy way to add value, particularly important if your property is a family home.
4. Terracotta Tiles.
   If you’ve been around long enough to have survived the ‘80’s, you may be very surprised to learn that terracotta is back in fashion for home renovations in 2017. Interior trends are now moving away from the cool tones that have been popular for the last decade and designers are returning to warm colours and natural materials that add character.

   Today’s fashion in terracotta calls for a smooth matte finish with crisp edges and a more finished look. The idea is to add warmth and depth with natural colours and materials, so consider using your terracotta tiles on feature walls or for cladding fireplaces.

5. Darker Wood Tones.
   If you are tired of the blonde wood look of the world’s recent ‘Scandi’ obsession, you’ll be happy to know that darker wood tones are finally back for homes in 2017. Remembering the current trend is for warm, natural materials that add character, you can now go ahead and use darker wood and natural timbers as feature walls and flooring. Consider adding texture by using it in herringbone tiling on floors, or by choosing interesting darker wood furniture pieces as focal items.
6. Go natural in the bathroom.
   Updating the kitchen and bathroom in your home is one of the tried and tested ways of adding value and is one of the main motivations for choosing to renovate for many home owners. Bathroom makeovers in 2017 will also follow the new interior design trend that combines modern, clean lines with natural materials and organic warmth. Functionality is also an important consideration to home buyers today, so try and choose materials that are easy to clean and maintain to generate the most value.

   Remember that sinks and baths with classic, elegant, clean lines are always timeless favourites. Add that natural touch by using wood in warm tones for accents and furniture or accessories. Don’t forget the terracotta in the bathroom too – add some extra organic depth with a fern in a terracotta pot or consider a small terracotta sculpture.

7. Create more curb appeal.
   A garden makeover that creates more curb appeal for your home is still one of the best investments you can make in terms of adding value this year. Garden design is now moving away from that harsh, minimalistic look that has been popular of late and following the new interior design trend of a warmer, more welcoming look that incorporates natural materials.

   Create a more natural style by staying away from geometric design layouts. You can achieve a more authentic, organic feeling in your garden by using recycled materials, free-form decks, stepping stones or meandering pebble paths. Locally sourced is the buzz word of the year, with native plants and shrubs planted in abundance adding charm.

Talk to us about renovation finance and budgeting.

Over capitalising is one of the greatest dangers when making home renovations, so be careful to set a practical budget and resist the temptation to splurge on too many designer or big brand items. They may make you feel good about what you’ve created, but they won’t add more value and you risk losing money if you decide to sell. If you need help working out how much money you can afford to invest in your renovation project, please give us a call and we’ll be happy to help.

Once you’ve set a practical budget, forward planning for how you intend to finance your renovation project is also a wise idea. Depending on how much you plan to spend, there are a variety of finance options that you can choose from, so talk to us before you start your renovation project so we can help you get it organised. Financing your renovations could mean refinancing your home loan to access some of the equity, taking out a line of credit, or perhaps a personal loan. To find out which option is the right one for you, just give us a call for a chat today.

The Reserve Bank of Australia (RBA) has met for their final meeting for 2016, and announced the official cash rate will remain unchanged at 1.5 per cent. We last saw rates fall in May and August this year, which brought the official cash rate to its lowest level in Australian history. The RBA will not meet again until February 2017, so the cash rate will stay at this record breaking low level at least until then.

There is a great deal of speculation about what the RBA’s next move will be. Some forecasters anticipate that rates will now stay on hold until later in 2017 and then start to rise as inflation improves. Others are predicting continuing low inflation and soft wages growth may influence another RBA cash rate cut to as low as 1.0 per cent next year, with the first cut coming as early as February next year. Either way, we can expect to see these very competitive home loan rates in the market for some time.

Regardless of what the RBA decide to do, lenders have been varying their rates outside of the RBA’s rate movements. Over recent weeks we have seen quite a few lenders increase their fixed rates, so if you are considering fixing some or all of your loan, now might be a good time to talk to us.

We are also seeing a more noticeable variance in the rates that are being offered by different lenders in the market. So if you have a current home loan, it’s worthwhile getting in touch to determine if your loan product is still right for your needs.

2016 has been a fascinating year. Global economic influences and developments in the US, such as the election of Donald Trump to the presidency, have caused a bit of uncertainty in the market. But overall it has been a strong year for home values here in Australia. From January to October this year, capital city home values grew by 9.1 per cent. Perth and Darwin are the only cities where values have fallen slightly for the first 10 months of the year.

Compared to the same time last year, combined capital city home values have increased by 7.5 per cent. This is trending up from 6.1 per cent at the end of July this year, with house values growing slightly higher than unit values across the country.

Summer is usually a slower time for Australian property markets, with much activity coming to a standstill over the Christmas period. However, the market activity in most of our capital cities is still quite strong.

According to Australian Property Monitors (APM), Melbourne listed 1173 auctions on Saturday 3 December alone, with a clearance rate of 80 per cent. Sydney also had a strong clearance rate of 76 per cent from 874 auctions on the same day. Other cities with strong auction numbers included Adelaide (160 auctions), and Brisbane (148 auctions), and even Canberra (with 81 auctions).

2016 has been a positive year in our property markets, and this looks set to continue into 2017! With the low interest rates we are seeing at the moment, it’s a great time for those in the market to purchase property, whether you’re a first home buyer, investor or refinancing an existing loan.

As this is our last newsletter for 2016, we’d like to take this opportunity to wish you and your family Merry Christmas and a safe and happy festive season. Thank you for your support throughout 2016, it’s been a big year for everyone, and we’re sure you’re looking forward to the break as much as we are! Thank you once again for your ongoing support, and we look forward to connecting in the New Year.

Information sources:
Home values: www.corelogic.com.au
RBA: www.rba.gov.au

At its 2016 Melbourne Cup Day meeting, the Reserve Bank of Australia (RBA) decided to keep the official cash rate on hold at 1.5 per cent for November. The decision was widely expected by analysts and forward predictions are for no further RBA cash rate cuts in 2016.

The RBA may not have cut rates this month, but you can. Many lenders have indicated that interest rate changes do not only depend on RBA changes to the cash rate, but also on other market factors and their actual costs. So if you’re a home owner and looking to refinance to save interest, call us regularly to check the latest home loan interest rate that is available for you.

The RBA last cut rates in August and May this year, which brought the official cash rate to its lowest level in history. As a result, home loan interest rates are very competitive and the good news for home buyers and property investors is that it looks as though they will remain low for quite a while.

That means buying conditions are great this spring. Property market activity is heating up, particularly in Melbourne and Sydney, with plenty of housing stock for buyers and investors to choose from. For the week ending October 30, Victoria held 727 auctions and achieved a clearance rate of 76%, whilst Sydney held a whopping 1309 auctions and achieved a clearance rate of 77%.

Activity in other markets indicated that buyers are possibly being a bit more discerning about prices. Queensland held 417 auctions for the same period, which is quite high, however they only achieved a low clearance rate of 39%. South Australia held 179 auctions with a clearance rate of 69%, ACT had 93 auctions with a clearance rate of 70%, Western Australia – which is not a big auction market – held 75 auctions with a clearance rate of just 37%. Northern Territory only held 6 auctions with a clearance rate of just 17% and Tasmania 10 auctions with a clearance rate of 33%.

Rises in home values appear to have slowed across all markets during October. In Sydney, home values only rose by 0.62% and in Melbourne, they rose by just 0.78% despite strong activity from buyers in both of these markets. Brisbane/Gold Coast showed an increase of 1.10%, Perth 0.78%, Darwin 2.20%, and Canberra 0.40%. Adelaide showed a decrease of 2.39% as did Hobart, which showed a decrease in home values of 2.05% for the month.

Opportunities are plentiful for first home buyers, next home buyers, refinancers and property investors right now. We’re here to help you make the most of low interest rates and the excellent spring property buying conditions, so please give us a call to chat about your plans. We’ll help you get the right home loan for your needs, with the most competitive interest rate available for you from Australia’s leading lenders. Christmas is also approaching fast and if you’re looking to buy a big ticket item for yourself or your family, we’ll be happy to help you with your finance needs for that too, so please give us a call today.

We recommend that you seek independent financial and taxation advice before acting on any information in this newsletter. It contains general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply. Information sources: Auction results: www.realestate.com.au. Home values: www.corelogic.com.au