https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#111, Dave, Cate and Pete take you through: 1. Booms and busts The trio discuss the booms and busts from the years of 2003 to 2020. For each capital city and nationally, they cover the top performing 3 years and also the bottom 3 years during this time. Check out our show notes for a special excel visual with all of the key data. 2. 2003 the star performer 2003 was the best year nationally and made it in the top 3 for each capital city, except Darwin. Although not in the top 3 for Darwin, this capital city still clocked double digit growth for the year. Nationally, price growth for 2003 reached a whopping 19.3%. The trio explore the various reasons why 2003 recorded top results, from availability of finance, movements of baby boomers and first time buyers, the advent of mortgage brokers, introduction of government stimulus and property price stagnation in the years leading up to this boom. 3. 2018 the worst year Nationally, 2018 was the worst year during this period, recording home value declines of 5.5%. Interestingly, this was also the worst year for Melbourne and Sydney, and third worst year for Brisbane, but not for any other capital city. This speaks to the weight of the Sydney and Melbourne market, and their influence on national prices. The trio were happy to blame credit policy as one of the key ingredients for this particular year's woes in the residential housing market. 4. The astounding story of Hobart in 2003 Amazingly, Hobart exhibited median house price growth of 55.3% in 2003. How can that be? The trio discuss the pre-2003 environment on mainland Australia which saw Hobart quickly become a magnet for investors and retirees. As the population of Hobart is so low, any peaks or troughs in interest can have a great impact on property values. 5. Resource markets The early noughties saw the resources sector start to boom, which correlates to double digit increases for Perth from 2003 to 2006 and Darwin to 2007. These cities are greatly impacted by the health of their leading industries, which meant that unfortunately, prices have decreased since, and are yet to reach their previous peak. 6. Adelaide going slow and steady As a capital city, Adelaide doesn't have major economic drivers like resources, which can do wonders for property. It also lacks the overseas interest that Melbourne and Sydney are fortunate to have. Furthermore, if a property investor decides to purchase outside of their own capital city, they generally look to Queensland. The result is that price fluctuations in Adelaide are less severe, and there are only two years where Adelaide has experienced double digit growth. However, in its third worst year, Adelaide still experienced positive growth. 7. The property market is like a garden Just like a garden, there are many factors which determine the health and prosperity of the property market - location, sun, soil, water, plants, environment and the bugs! The property market is multifaceted market, and a micro version of the broader economy with so many inputs and outputs that determine the outcomes. The trio discuss the difficulties in being able to point to one factor which ultimately drives price increases and declines. It's important to remember that the market is not driven by investors, but majority owner occupiers, who are driven by personal factors and emotion. 8. The impact of government policy Arguably, the politicians are the bugs in the garden - which either pollinate to promote growth or eat away at the crop. One factor which always has a hand...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Market insights 1. Latest unemployment figures exceeds expectations In the latest figures released by the ABS, the unemployment rate has come down to 4.9% in June from 5.1%. The last time we saw unemployment this low was in June 2011. On the other hand, underemployment has increased to 7.9% in June (from 7.4% in May). It's probable this was caused by the extended lockdown at this time in Vic. Notably, Vic has the lowest unemployment rate of all the states and territories, with unemployment at 4.40%. 2. Time to buy a dwelling index shows slight improvement The 'Time to buy a dwelling' index produced by the Westpac Melbourne Institute has shown an increase of 0.8 points to 96.9 from June to July. Although an improvement, it is still in negative territory, with the index down substantially from its peak in November 2020 of 132 points. The consistently weaker trends likely reflect concerns about the impact of sharp price increases on affordability, especially amongst prospective first home buyers and owner occupiers. 3. Lowest vacancy rates nationally since May 2011 National vacancy rates recorded by SQM research show the economy continues to move in a very positive direction. The vacancy rate fell from 1.8% in May to 1.7% in June, which is the lowest vacancy rate since May 2011. The Sydney and Melbourne CBD apartment market also shows positive steps to recovery, with Sydney falling 0.5 to 6.3% and Melbourne falling 0.3 to 5.8%. It is fair to mention that despite the oversupply of CBD apartments in our two capital cities, the overall vacancy rate is extremely tight and is illustrating a growing concern for the plight of renters. 4. NSW relief packages for residential landlords In an effort to assist NSW residential landlords, a grant of $1,500 or land tax reductions are available for landlords who come to an agreement with their tenants to decrease rent, to assist with reduced incomes due to Covid. The trio discuss the merits of this policy, which is able to offset some of the loss that generous landlords are shouldering. Rightsizing 1. Who are the baby boomers? The baby boomer generation were born between 1946 and 1964 and would be currently be aged between the ages of 57 to 75 years. Baby boomers make up 25% of the population, but own more than half of Australia's national wealth (53%). Given the baby boomer generation have the highest home ownership rate of all cohorts (above 80%), a lot of their wealth would be tied to property. Their economic footprint is twice as large as their demographic footprint, however, due to compound growth over time, it makes perfect sense that the older cohort should have proportionately more wealth than younger ones. 2. Effects on Australian residential property Unlocking the baby boomer's wealth in property (which could be around two trillion dollars), could be critical to the future of home ownership rates, and potentially also to the creation of seniors' accommodation, and to aged care policy. As our population is aging, there will be added costs associated with supporting the older generations, plus more demand for suitable property for our older generations (including aged care). Lower home ownership rates have been recorded in younger generations, no doubt due to other social reasons, including people choosing to get married and start a family later in life. A study by the productivity commission concluded that 60 per cent of...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#109, Dave, Cate and Pete take you through: 1. Property market acceleration is reducing, but still going strong June's growth rate of 1.9% is down 30 basis points from May 2021 2.2%, and 90 basis points from a recent peak in March 2021 2.9%. All capital cities except Canberra have posted weaker results than in May. Most notably Perth and Darwin are trailing, where they fell to 0.2% growth and 0.8% growth respectively. The trio discuss the reasons for reasons for deceleration, given that Perth was predicted to be on the top of the property ladder for 2021. 2. Upper quartile shows the largest deceleration Across the top 25% of dwelling values in the combined capital cities market, growth in dwelling values in the June quarter was 8.0%, down from 9.2% in the three months to May. While this 8.0% uplift was still the highest seen among the value tiers analysed, the growth rate also had the largest month-on-month deceleration. It's likely that we've hit the peak rate of growth and values will continue to decelerate. 3. Capitals vs regionals Combined capital cities are neck and neck with regionals since February 2021 this year. However, over the last year, capitals up 12.4% and regionals 17.7%. It's likely that we'll see some regions that will continue to flourish, particularly those that were on the rise pre-covid and that are within commuting distance to a capital city. 4. The emerging rental crisis All capital cities have seen an increase in house rents over the last year, with Darwin leading the pack with 23.6% growth. The story is similar for units, bar Melbourne and Sydney where the CBD apartment market has been most affected due to covid. The trio discuss the emerging rental crisis, where the most vulnerable will find it very difficult to get a roof over their head. A possible answer is increasing investor incentives, to get mum and dad investors into the market to share some of the housing load with the government. However, the government hasn't rolled out the welcome mat for investors and tax continues to be a hurdle, but possibly an area that could be re-evaluated. 5. Investor activity continues to increase ABS data shows that for 5 out of the last 6 months (Dec 2020 to May 2021) - investor activity has outstripped owner occupied activity for new lending. This could signal we're headed in the trajectory for more stock to be on the market for renters, which would increase rental affordability. 6. Profit making resales trending up CoreLogic data shows 9 out of every 10 properties are being re-sold for a profit, up from 89.1% in the previous quarter and the covid-induced low of 86.0% in the three months to June 2020. What can be seen is a large discrepancy between units and houses, with 16.8% of units selling for a loss vs 6.8% of houses selling for a loss in the March quarter. This is reflected in current growth rates as well, where all capital cities except Hobart showing houses increasing at a faster rate than units. The trio discuss how land to asset ratio will be a driving factor of this discrepancy. 7. Listings take a dive The number of new and total listings are looking pretty grim, with each capital city posting decreases except Darwin. Canberra and Melbourne have the biggest drop in new listings, with 10.1% and 21.7% respectively. These markets are more impacted by the colder months of winter, were stock on the market declines, due to the misconception that winter is not a good time to sell. The trio give an important tip to those...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#108, Dave, Cate and Pete take you through: Market insights 1. Race to the finish - Vic stamp duty concession is over The Victorian stamp duty concession for properties purchased under $1million ended on the 30th of June. This produced some last-minute scrambling for those trying to get the 25% discount for established property and 50% discount for new property. In Victoria, many auctions were brought forward and offers submitted, as the concession has greatly improved borrowing power for many, particularly first home buyers. This initiative was offered shortly after Melbourne's long lock-downs in 2020 in an effort to stimulate the property market. Little did our bureaucrats know that our market didn't really need external stimulus. Low interest rates would have been more than enough. 2. Latest unemployment figures exceeds expectations The ABS has recorded a drop in unemployment from 5.5% in April to 5.1% in May. Thankfully, Australia is one of only two nations that has more people employed now, than prior to when covid took hold. The lowest unemployment level reached in the last decade is 4.9% and we're not far away! Interestingly, despite Victoria's extended lockdowns, the unemployment rate in Victoria is 4.8%, while NSW sits at 5%. South Australia has the highest unemployment rate at 5.8% and ACT, the lowest rate at 3.6%. No surprises here, as the public service is less affected by downturns. The trio discuss the reasons behind the stellar unemployment result. Land tax 1. Land tax basics Land tax is an annual cost that is determined on the total value of the land you own, (with the exception of a principle place of residence). Unlike Capital Gains Tax, Land Tax is a state tax, with differing thresholds, tiers, rates and methods of calculation between each state. Another layer of complexity are the differing rates and thresholds for owning property in trusts or in a company. As you acquire property, you need to be mindful of your ever-growing land tax bill, and this is often not factored into cash flow costs when people make property decisions. The trio also discuss and explain how land values are calculated for tax purposes. 2. Tax on unimproved value Each year the Valuer-General evaluates the 'unimproved value' of the property, meaning the land portion without the dwelling. Funnily enough, the only time you want a conservative estimate of value is on your land tax bill and council rates notice. If you disagree with an estimate, you normally have 30 to 90 days to challenge it, and if found in your favour, this could save you thousands of dollars. More often than not, the value that the government apportions for your land is not what the market would give you. Where this will hurt, is in a falling market. Although you're more likely to be eligible for a re-assessment in this case. 3. The friendliest land tax states The trio outline the differences in land tax for each state. Which states have the lowest tax-free threshold? And which states offer the friendliest environment for building a property portfolio. Before you purchase your next property, you should be broadly aware of the land value component, and you should try to determine many properties you will accumulate over your life-time in each state. Having a plan that factors in land tax, helps an investor provision for cash flow obligations. 4. Tax decisions drive investment choices Political, financial and economic discussion is often centred around tax and it's implications. States may...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Watch our special recording for a masterclass on valuations! Weekly market update 1. Victoria the host of another Super Saturday This past weekend, Victoria hosted more than 1,000 auctions, which is referred to as a 'Super Saturday', with a whopping 1,414 homes going under the hammer. This time of year, going into winter, this number is unprecedented for a Saturday of auctions. The influx of stock can be put down to the most recent Covid lockdown and also school holidays starting. We could possibly see more Super Saturdays in July once school resumes. 2. CBA the first lender to raise assessment rates After APRA wrote to 14 of the biggest banks in the business, asking them to provide more data on their prudential practices, CBA was the first lender to raise their assessment rate from 5.1% to 5.25%. This is the first trickle of macro prudential regulation and APRA's light touch, which is likely to increase over the coming months as the next dominos (lenders) start to fall in line. 3. Adelaide crowned the 3rd most liveable city in the whole world The Economist Intelligence Unit's latest Global Liveability Index, which considered factors including healthcare, education and infrastructure across 140 cities around the world, has named Adelaide as the third most liveable city in the world. Perth, Melbourne and Brisbane also made the top 10, while six of the top ten cities are in New Zealand or Australia, where tight border controls have allowed residents to live relatively normal lives (through COVID), the report states. How to determine property value for your home 1. Using comparable sales refresher The Property Professor takes you through how to select comparable sales and the elements of the property to rate for valuation purposes. Plus, important details on which properties are NOT comparable and should be removed from your analysis. 2. How old is too old? The trio discuss when it's appropriate to use data from a year or more ago. While it may not be helpful in terms of a bank valuation, it can be useful for your own valuation purposes. 3. Twice the size doesn't equal twice the value The Property Professor explains the law of diminishing returns and why land size isn't always proportionate to the cost per square metre. In essence, the price per square metre reduces, the bigger the land size. These reductions are not linear and are determined by what the market desires, specific to a suburb or micro location. 4. The art and science of valuing While comparing apples with apples would make valuation a lot easier, it's nearly impossible to do. Every property is unique, after all. A great example of this is how street frontage and 'best and highest use' could turn two seemingly identical properties, into distant cousins. Overlay subjective perceptions, the psychology of missing out and the mathematical science of valuation quickly turns to a fine art of nuances and finesse. 5. Live example of valuation The Property Professor shares his methodology and reasoning behind valuing 20 Allen Avenue in Brooklyn Park which is going to auction the weekend after recording. The trio place their bets on the auction outcome. Stay tuned for our next episode to find out the result! Visit the show notes and watch our special recording - https://propertyplanning.com.au/how-to-determin...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#84, Dave, Cate and Pete take you through an episode dedicated to this question posed from one of our listeners: "Australia's economy is highly dependent on China, do you see immediate risk in the housing market should China reduce dependency on Australia's supply chain?" Market insights Housing market consumer sentiment moves into negative territory For the first time in a year, the Westpac Melbourne Institute Consumer Sentiment index on whether now is a good 'Time to buy a dwelling' has dropped below 100 and is now in pessimistic territory. This is the fifth monthly decline in a row, dropping 7.1% from May to June and the index is now 27% below its November high of 132. The shift in sentiment is mainly caused by rapid price rises over the last 6-9 months, supported by fringe factors including: increased fixed rates from lenders, with speculation of more increases to come and various government incentives coming to an end. This index generally is a forward indicator of markets, however it could be 3 to 6 months before we see any impact on the housing market, if not longer. The hope is that this signals the possibility of more sanguine value growth without the requirement of intervention from APRA placing extra limitations on borrowers. The property buyer isn't upset at the prospect of slightly relaxed competition levels either. Australia & China relations 1. Update from the G7 summit The Property Planner takes you through some of the communiques and resolutions formed in the 47th G7 summit, held on 11-13 June. The G7 is a meeting of the 7 largest Western democratic economies, including Canada, France, Germany, Italy, Japan, UK and the US. Australia and three other nations of Japan, South Korea and South Africa were invited to attend. The G7 pledged to tackle China's market-distorting economic practices which are currently affecting Australia's exports, as well as authoritarian actions in relation to Hong Kong. 2. Foreign investment and Australian property Australia is the fourth most popular residential property market after the US, UK and Singapore with ultra-high net worth Asian cross-border property investors. The Property Buyer shares key data showing that the overall market share of foreign buyers fell to 4% in the fourth quarter of 2020 in relation to new property. This is the lowest result since NAB started tracking the data in 2010. Harsh taxes were introduced in 2015-2017 for foreign investors, and for some local markets, this had a severe impact on asset prices. However, the taxes haven't had the devastating impact that many people feared would happen. 3. Why is Australian residential property so attractive to foreign investors? The Property Professor shares key insights from a special dissertation written by one of his students on the appeal of Australian property for Chinese investors, who sheds light on some of the key aspirational, social and financial motivations held by Chinese buyers. 4. Cultural based dwelling preferences The trio discuss how current dwelling preferences have been shaped by Australia's European heritage and discuss the expected changes from the current and future generation of Asian migrants to Australia. The Property Buyer shares some of the key preferences from Asian buyers, some of the positive influences on Australian housing design and layouts to modern day, and offers a hot tip on how you can gain an edge if you're finding that you're missing out at auction. 5. Iron ore - mutual dependence on trade between China and Australia Whilst the political environment betwee...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ Market insights 1. Regulation on the horizon as the property market continues to surge New data shows that property buyers are stretching towards their maximum borrowing capacity to compete in this hot market. Investors have been quiet in this market so far, but they are making a come-back, as first home buyer numbers start to taper. As we expect annualised growth to hit 15% for some of our capitals and regions in the coming months, the jungle drums will beat louder for regulator intervention to slow down the velocity of the growth. 2. Australia's AAA credit rating Australia is now one of only 9 economies to have a pristine AAA balance sheet recognised by all three of the world's largest credit rating agencies. This is great news for us, as it keeps our interest rates slightly lower, which we do enjoy as a capital importing nation. The AAA rating means that our interest rates are 0.15% lower than they otherwise would have been. Listener questions answered 1. The market seems to be at the top of its cycle. Is it a good time to invest in property or should we be waiting for the demand to subside or the chance that govt regulators will step in to curb prices? Whilst prices are undeniably on the rise, the trio firmly believe that we are certainly not yet at the top of the market. Any regulation introduced will be carefully planned so as not to de-stablise the market or cause a downturn, but simply to slow the acceleration of property price growth. The focus for regulators is optimising GDP and bringing unemployment down. The government will be loathe to introduce any measures that could hamper our economic recovery, particularly before the election. 2. What are the implications of waiting it out? If you would like to purchase property and are waiting for demand to subside or property prices to stop rising, it's likely that the market will move further away from you. There is great fear in purchasing at the top of a market cycle, however this only poses an issue if you crystalise losses by selling or if you have purchased a poor-quality asset in the first place. If your strategy is to purchase and hold for the long term, you will most likely be able to ride through any downturns. 3. Is now a good time to refinance? If so, why? The trio discuss the current conditions for refinance, which are fantastic. Property prices have gone up, so it's likely that property owners have more equity that can be tapped into and interest rates are the lowest they've ever been. This environment provides great opportunity to get on to a sharper rate and release some equity to protect and/or build your wealth. 4. What's your opinion on where interest rates will go over the next 12-18 months? Should I be fixing some of my debt now while fixed rates are low? The trio discuss the outlook for variable rates, which are linked to the RBA cash rate, while fixed rates which are connected to bond yields. Fixed rates are expected to rise, and even since recording, one major bank has increased their fixed rates by 0.25% and 0.45% for two of their fixed rate terms. This is likely to be the trend in the coming months as the $200B term funding facility that the Government has provided to banks is coming to an end in June. For reasons relating to our economic recovery, the variable rate is expected to remain nailed to the floor for some time to come, as consistently communicated by the RBA. 5. Considerations for fixing some of your debt The Property Planner explains why it's almost always a good idea to have some...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's market update Dave, Cate and Pete take you through: 1. Impact of lockdown #4 in Melbourne Whilst there may be a small lull, we expect activities to pick up where they left off after this small blip. Many auctions have been brought forward or held over zoom. We're seeing a bit of vendor discomfort in response to the COVID lockdown, but no buyer panic. If anything, buyers seem even more spurred on to compete hard for property. 2. Internal migrations The bigger picture is that internal migration to Melbourne could be impacted as there is now stigma around the ability to manage Covid and future outbreaks. This will have a lag effect for a period of time, but will most likely dissipate in the next 1 to 3 years. Development of quarantine facilities outside of the CBD is on the cards and this could have some positive implications for the Melbourne market. 3. The return of international students SA and NSW are making efforts to return back to normal, as international education is in the top 3 exports for every Australian state. We hope to see education get back up and running, watch this space. 4. May property Index results are out! May has returned the 8th consecutive month of growth for national housing values, reaching 2.2% in May and a stronger result than April's 1.8%. The Property Planner explains expectations of reaching 15% annual growth in all capitals in the next few months. The poorer months of June, July and August 2020 are still included in the annual growth rate, which are weighting it down even though the market has been booming for the last 6-9 months. Once these levels are reached, there will likely be greater noise in the media and political pressure for intervention against run-away house prices. 5. Capital cities are up on regionals for the month and the quarter We've had over a year of regional cities outperforming capital cities, due to the pandemic induced sea and tree change. For the second month this year, capital cities have outstripped the regions in monthly growth and as predicted, the tide is starting to turn towards capital cities. Regional areas are still exhibiting strong results, but the capital cities will catch up. 6. Taking a critical eye to median values The Property Professor takes you through some data analysis of the 'Turquiose coast' in SA, pointing out that median values can be unreliable when looking at the suburb or lower level, because of the smaller number of sales that the data is based on. Incentives can also skew data, such as concessions that have a cap on the value of the property that can be bought. 7. Upper and lower quartile analysis When markets are bullish, the upper quartile (the top 25%) tends to outperform, which is what we're currently seeing. This is because the people who have more money, spend at a greater level on higher priced properties. Conversely, when there is a downturn, the upper quartile tends to drop the furthest, because there are less buyers as a total proportion of all buyers who are circling the top quartile properties (based on affordability). In particular, at this price level people are more concerned about their level of wealth and hold on to their money. We're seeing this play out across the combined capitals, where the upper quartile increased by 9.2% over the quarter and the lowest quartile rose 4.2%. 8. Rentals - supply is dwindling and demand is increasing With the return of expats to Australia and an increased number of home buyers converting previous investment properties into homes, rental stock on the...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Market insights 1. The number of vendors lifting their asking price mid-campaign has dropped New data from Domain reveals that the percentage of vendors who increase their asking price mid-campaign has lowered from March to April for Sydney, Melbourne, Brisbane and Canberra, which covers around 2 out of 3 property sales. This is likely occurring for a combination of reasons. Values are going up but not as fast as they were earlier this year, agents are more conscious of being busted for under-quoting, and vendor price expectations have risen since the rebound began in earnest. The locations with the highest proportion of vendors lifting their asking price is dominated by Sydney and Melbourne. 2. What are the clear signals that an agent is underquoting? This will normally be easy to spot if you've done your homework, know your market and are armed with your comparable sales. If an agent is saying that there are limited comparable sales or where sales provided are not actually comparable, they are probably trying to pull the wool over your eyes. Another factor for the lower quote could be because there is an issue with the property that the agent has factored in that you are not aware of! The important thing to remember is that you're highly unlikely to get lucky with an under-market purchase price on a good quality property. Conveyancing 101 1. What do conveyancers do? Conveyancing is the legal process of moving land or property from one owner to another and conducting the pre-purchase contract review and associated due diligence. The trio discuss the ins and outs of the conveyancing process, what are they responsible for and how you can engage either a solicitor or a licenced conveyancer to do the job. 2. What is the difference between a conveyancer and a solicitor? Either are sufficiently equipped to manage a property transfer and in the end, the most important factor is the quality of the service provider, not their official title. However, there are some key differences in the breadth of their advice that you should know before making your selection. 3. Can your conveyancing representative work Australia-wide? Property law and the conveyancing process differs state by state, which means a conveyancer must obtain a licence from the state in which they operate and cannot operate in states in which they are not licenced. This can be a huge positive, as you want your property conveyancing representative to be an absolute expert in the law relating to your property transaction. Having to be across one set of property laws and processes is hard enough, let alone seven. A solicitor on the other hand can work across all jurisdictions, although we would recommend working with local experts. 4. What are the limitations of your legal representatives due diligence? The trio discuss the elements of the property purchasing process that your conveyancer or solicitor will not do, which you must be on the look-out for! 5. What can go wrong? The Property Buyer takes you through the legal elements and deal-breakers that conveyancers can uncover during the conveyancing process, that buyers often miss. Tune in for the Property Planner's real-life examples where legal handy work has picked up illegal cladding, a vendor trying to slip through old body corporate minutes and incorrect fence lines, highlighting why it pays to have a great solicitor or conveyancer in your corner. 6. How do pre-purchase contract...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: Market update 1. Stamp duty and the VIC budget For Victoria, a new premium for stamp duty was announced for property transactions above $2million, increasing the duty payable for contracts entered into from 1 July 2021. The trio share their thoughts on this 'lazy taxation grab' from the government and the potential impact on both residential and commercial property investment in Victoria. 2. Sydney prices taking flight Latest figures from CoreLogic see growth in Sydney housing values reaching 9.21% in the last quarter. Annualised, that is 40% when compounded. The Sydney market is very hot indeed, but we do expect the heat to dissipate? Taking the lead from the other capital cities may not be an accurate gauge. Comparable sales 1. Valuation methods The Property Professor takes you through 3 of the most common methods of evaluating the price of a property: comparable sales, summation and income/capitalisation. Tune in to our show notes for a visual presentation. https://propertyplanning.com.au/how-to-determine-property-market-values-by-using-comparable-sales-ep-81/ 2. Finding comparable sales The main attributes that buyers should itemise to compare the subject property to are: similar location, land size, building size, building condition and the recency of sale. The trio discuss the ins and outs of what to be looking for in order to determine whether a sale is 'comparable'. 3. Additional property attributes that can impact value Other factors that could impact demand for a property (and therefore competition) include: topography, environmental factors, accessibility, utility services, town planning, zoning, other restrictions, improvements to the property, the potential for alternate use (commercial for example), views, orientation and shared ownership of common areas. 4. How to value a property Each component of a property can be boiled down to dollars and cents to arrive at an end figure - EG what you are willing to spend! The trio take you through how to attribute monetary value to the various components of the property and which factors are most important. The Property Buyer shares a hot tip when it comes to properties on main roads vs quiet streets. Don't forget, finding the similarities between properties is easy, the tricky part is identifying the differences and placing a value on those. 5. Case study....be sure to watch the video to get the most out of this educational experience In true lecturer style, the Property Professor takes you through a real-life example of finding comparable sales for a property going to auction on Saturday 22nd of May. Cate and Pete value the property and the expected result on auction day, with the disclaimer that there may be additional factors identified after walking through the property. 6. When is comparable sales methodology a challenge or impossible? The trio discuss the circumstances that may cause some obstacles for comparable sales analysis. The Property Planner issues an important reminder that comparable sales cannot be taken as gospel. 7. How to deal with anomaly sales results When you come across a sale that has a surprising result, it is important to understand the reasons behind it and the circumstances of the sale. What bank valuers often don't take into account is real estate agents with excellent digital marketing skills, irrational bidders and tenants that hinder access to the property. A...