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...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's episode, Dave, Cate and Pete take you through: 1. Heat in the market is dissipating Anecdotally, we're seeing some behaviours such as vendors holding out for better prices that are not always being achieved, supporting the fact that the heat is coming out of the market to some degree. As touched on during recent Podcasts, we don't expect prices to be growing at quite the same rate of knots as the first four months of this year across most part of Australia. 2. Smaller capital cities have been the outperformers of the last 12 months. The latest property index results for April from CoreLogic reveal that Adelaide, Hobart, Darwin and Canberra have outperformed Sydney, Melbourne and Brisbane over the last year. We know that the larger capital cities took the biggest hit during the covid-downturn due to lockdowns and halting of international travel. It's worth noting that while Darwin and Perth are doing well, they are still behind their peak medians reached in 2014 and still have far to go. And many of the regions around our nation have also outperformed the two biggest cities, but Sydney in particular is making up ground rapidly and we expect these numbers to evolve over the next three to six months. 3. What tales are the vacancy rates telling? Looking at the vacancy rates for Melbourne and Sydney, you'd think that they are in dire straits. What's increasingly evident is that the markets of the largest capitals are operating at two speeds and there is a large disparity between vacancies for houses versus units. Much of the higher vacancy rate will be due to medium to high density apartments and student accommodation. This is another example of why you need to dig beneath the data, as it can't always be taken at face value, and generalising data can hide important detail. 4. The swinging pendulum - investors vs home buyers Investor mortgage numbers have recorded an increase, suggesting that the pendulum could be swinging back towards an investor market. First home buyers are starting to reduce, as prices get more unaffordable for new entrants to the property market. This latter point is one of the drivers for government initiatives that have been announced in our most recent federal budget. 5. Property incentives from the budget announcement The trio talk through the 4 key property market incentives and schemes announced in the federal budget, including their merits, insights gleaned and likely impact on the property market. They include: · New Home Guarantee (increase demand and price) - additional 10,000 places allowing first home buyers to build a new home or buy a newly built home on as little as 5% deposit, with the government acting as guarantor on the loan, freeing the buyer from lender's mortgage insurance. · First Home Super Saver Scheme (increase demand and prices): first home buyers will be able to release up to $50,000 as part of voluntary contributions under this scheme (increased from $30,000). · Family Home Guarantee (increase demand and prices) - a scheme allowing for 10,000 single parents over the next 4 years to purchase a home with a deposit of just 2%, with the government providing a guarantee of 18%. · Downsizer Super Scheme (Increase supply) - allowing those age 60 and above to contribute $300,000 into super when selling the family home. This will not only bolster retirement savings, but also free up critical housing stock. 6. RBA reiterates its commitment to maintaining a low cash rate The RBA have consistently communicated since mid 2020 that rates will remain low until inflation hits the target band ...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#100 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: 1. Walking down memory lane From the beginning of the podcast journey in March 2019 to now, much has changed in the world of property. The Property Planner, Buyer and Professor discuss the early days of podcast recording and how the podcast and listenership has evolved since then. 2. Our top 10 episodes, as rated by you! The results are in! After two years of podcast recording, the trio share with you our top 10 episodes with the most listens and the insights gleaned from each. 3. Dave, Cate and Pete's favourite episodes The Property Planner, Buyer and Professor take you through three of their most favourite episodes to date and why they're worth a re-listen. The trio each acknowledge that they too are constantly learning from each other. 4. The Property Planner, Buyer and Professor's hottest property tips The trio share their best tips and learnings after decades of experience in the property industry. Their tips include: attitude to taking action, expecting perfection, how to manage property investing on top of a full-time job, how often you should buy property and combining finances with your partner. Don't miss out on these tips! 5. A big thank you to our listeners The trio share the wonderful feedback received over the journey from our listeners. We couldn't have done it without you! We have some surprise listener engagement in store too. 6. And of course, our 'gold nuggets' Visit the show notes - https://propertyplanning.com.au/best-property-tips-in-australia-and-top-episodes-100th-episode-special-ep-80/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#79 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Month on month growth reaches peak Some say that the housing market is beginning to show some signs of slowing. Agents who have been so inundated with activity are starting to return to their usual practices of performing pre-auction calls to firm up bidders. This signals that some of the heat in the market might be subsiding. The trio believe that we'll still continue to see positive growth, but not at the same rate of knots experienced over the last few months. The Property Buyer suggests that the velocity is decreasing despite the pace remaining positive. 2. Positive market indicators The latest unemployment figures released by the ABS for the month of March show unemployment lowering from 5.8% to 5.6%, which is great news. Iron Ore spot prices per tonne cracked $190, which is the highest price since 2011 and 1% off record highs in the mining boom years. This bodes well for the Government's coffers and our federal budget returning to surplus over the coming years. 3. Loan deferrals back on track In more positive news, only 0.5% of the million loans deferred due to Covid are still frozen. Many people who were hanging their hat on waiting for properties to flood the market because of forced sales have missed out on opportunities. Like we always say, there is no time like the present to purchase property, provided that you are making decisions based on your own personal economy. Timing the market is incredibly difficult, even for the property experts. 4. Houses outperform units Latest figures from CoreLogic reveal that for all capital cities (bar Melbourne), houses have performed units over the last year. That has been the case for many decades, but accentuated further through Covid where people were looking for bigger dwellings. We expect rental yield and capital growth for units to slow down even further. Cross collateralisation 1. What is cross collateralisation? Also known as cross securitisation, put simply, cross collateralisation is where you have a single loan secured by two or more properties. The Property Planner and Buyer unpack the myths that surround this loan structure strategy. 2. Why do people think cross collateralisation should be avoided? The main reason why people are averse to cross collateralisation, is the belief that by having a single property providing security for a loan, you are protecting your other assets from the bank in the event of loan default and forced mortgagee (lender) sale. If the value of property is not enough to extinguish the debt on the loan, the lender may look to your other assets to cover the shortfall. While retaining individual loans for each security property may limit a lender's ability to access your other assets, it is certainly not impossible and there are other legal means that lenders can use to access your other properties to recoup their losses. 3. Beware of spruikers! A large proponent of not crossing securities are property spruikers who are selling properties under the guise of 'free property advice'. This is because their aim is to convince people to buy multiple properties, with high loan to value ratios which are often poorer quality assets, with low prospects of capital growth. Brand new properties can often decline in value, so the spruiker is actually protecting themselves by advising against cross-collateralisation, and promoting assets are financed across multiple...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#78 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Stretching budgets and changing sentiments The gap between what a buyer can actually spend vs what they planned to spend is getting closer as we see buyers revise up their limits to compete in this market. We made a prediction that APRA would step in with macro prudential measures late this year or next, now every man and his dog is reporting on the potential for APRA intervention. Although APRA Chair Wayne Byres recently stated that APRA has no mandate to target the level of housing prices - they are simply a risk factor, not a goal. 2. Tips to increase your borrowing power The Property Planner and Buyer share the insider scoop on how you can increase your borrowing power to maximise your buying power. 3. Banks and economists revise UP their expectations for 2021 NAB is the latest bank to jump on board and predict 15% national price rises for 2021. This follows ANZ upping their predictions in late March to 17% growth this year. Recent reports tip Sydney and Perth to exhibit 19% capital growth each, 18% for Hobart, 16% for Melbourne and Brisbane and 13% for Adelaide. Preparing for auction #2 1. Can you have a 'subject to' clause at auction? A common misconception is that 'subject to' clauses cannot be introduced in an auction. The Property Buyer explains that although very rare, everything is negotiable. 2. Cooling off periods - what are they and when do they apply? A cooling off period is a purchaser's right to terminate the contract without needing to validate their decision. The cooling off periods and penalties vary State by State, so it's important to know your legislative rights and any penalties that may follow. 3. Boardroom auctions vs public auctions The Property Buyer takes you through the key differences between boardroom auctions and publicly scheduled auctions that you need to know about to put your best foot forward. 4. Getting yourself finance ready With turn-around times improving, it's possible to be finance ready if you plan to go to auction in three weeks' time. However, it's incredibly important to move with speed and have your finance arranged as early as possible. The Property Planner shares the critical need to be able to juggle multiple balls at the same time, rather than focusing on one thing at a time. 5. What prep do you need to do to get ready? If you want any variations to the contract or deposit terms, these need to be arranged before the big day. Doing your market research, planning and setting your bidding price point and strategy is critical and likely to take more than an afternoon. Ensure that you have not left this to the last minute! 6. What is an auction quote range and why you shouldn't rely on it In a moving market, an auction quote range at best can be wrong and unreliable, at worst, it's misleading. In determining a quote range, the agent is permitted to cover historical sales prices, (in Victoria for example; over the last 6 months), which could be 15-20% lower than the current market. The best thing is to do your own research and collect your own comparable sales. 7. Where to stand at auction The Property Buyer shares with you the key vantage points to give yourself the edge over the competition. 8. The differences between auction campaigns and private sale campaigns The Property...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#77 of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. Investors creeping back in Westpac lending numbers for February reveal that investor lending is up 4.5%, while first time buyers are down 4% and upgraders down 0.8%. It's still early days, but it's likely to be a sign that the tide is starting to turn from home buyers driving the market to investors. Investor lending at Westpac is still only at 35%, compared with 65% when APRA brought in macro prudential measures in 2015. We expect these numbers to continue to grow in the coming months as investors tap into increasing equity and the lower cash flow needed to service a loan, with increasing rental yields covering much of the cost of interest with rates at an all-time low. 2. Property cycles Sydney has recorded 6.7% growth for the March quarter, which when annualised is growth of 26% for the calendar year. You may think that's amazing and has never happened before, but according to ABS data, Sydney prices went up 50% in 1988. The following year, prices dropped by 6% before rising again, albeit at a slower pace. The property market is cyclical in nature, sometimes they spike, but it doesn't mean there will be a collapse afterwards. 3. The property peaks and troughs Looking at property data over the last few decades, it's clear to see that the negative periods are much shorter than the positive periods. Amazingly, despite all of the doomsayers, the covid downturn was one of the shortest and lowest downturns that we've had over the last 30 years. Our most recent property market price reduction lasted for almost two years from 2017 and 2019 and was predominantly driven by APRA implementing macro prudential measures and not economic factors. A poignant reminder of how our property market can be manipulated by government policy and stimulus. What will drive capital growth after interest rates rise? 1. Access to finance and consumer confidence These are two key drivers of the property market. If finance is restricted or there is a lack of consumer confidence, this will have a significant impact on demand, which in turn will affect property prices. Consumer confidence is largely impacted by low unemployment or the wealth effect, which is rising property and to a lesser degree share prices. This is why the RBA are so strong on keeping rates low through to 2024, until we see inflation growth of 2% to 3%. 2. Immigration Although we've had negative population growth due to Covid, we still find ourselves in the midst of a property boom. Whilst immigration can certainly increase demand, it will be heavily influenced by the number of 'skilled' workers that migrate. The Morrison government have spoken about specifically targeting this sector once borders open which is likely to have a positive multiplier effect on the economy. 3. Interest rate increases may not be significant Governor Lowe of the RBA has stated that interest rates will remain low for the next 3 years. However, important to remember, when we do see some increases, it won't happen overnight. Based on the interest rate environments we are seeing for many other first world nations, it's likely we will see gradual increases spanning years to come - and this will only occur if we have very low unemployment resulting in inflation hitting the target band, which has not been achieved for around a decade. 4. Mastering renewable energy Our ability to transition away from creating fossil fuel-based energy and move to more...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's market update #20, Dave, Cate and Pete take our listeners through: 1. Hobart median dwelling values Despite being the capital city with the smallest population, median home values in Hobart are higher than Brisbane, Perth, Adelaide, and Darwin. The trio explore the reasons behind this surprising statistic. But is it sustainable? The Property Buyer thinks yes! 2. Melbourne growing at 1% a fortnight At last, the data is catching up with what we've been seeing since the inflection point in the final quarter of 2020. The median price for homes sold at auction has soared 18% since March last year. 3. Why stock on the market is still so low In economics 101 we learn that price is a function of supply and demand. With supply still so low, it's no wonder that we're seeing the highest monthly rises in value since 1988. The trio discuss why new listing figures have returned to normal levels, but total stock on the market remains at half the usual level. 4. Escape to the regions For the first time since covid lockdown, monthly data shows that combined capital cities have come ahead of regions in monthly growth statistics this month. This reflects what we've seen anecdotally, with the number of enquiries of people looking to sell up their city homes and move to regional areas decreasing as life returns to 'normal'. 5. How long will the frenzy last? The trio make their predictions for the property market in 2021. The consensus is that there is still a lot of steam and heat to go. Until we see some lending or macro prudential changes, we don't expect to see the buying conditions easing for some time. 6. Relaxation of responsible lending guidelines The Property Planner explains the expected impact to the property market if responsible lending laws are amended as planned by the Morrison Government. 7. Australia the ultimate destination nation Although it may not happen this year, when boarders open up again allowing for immigration, we expect this will add more entrants into the property market, further fuelling the fire into 2022. 8. Many purchasers are dropping out for fear of overpaying Although no one wants to buy at the peak of the market, the risk you take by holding out is that you're priced out of a market that you could have bought into. Provided that you plan for holding the property for the long-term and it fits within your overall property plans, now is the best time to buy. 9. Top tip - don't bypass the properties that have been on the market for longer The Property Professor shares this hidden gem for finding a great property. 10. And of course, our 'gold nuggets' Visit the show notes - https://propertyplanning.com.au/hot-property-median-home-values-largest-property-rise-since-1988-stock-on-the-market-capitals-vs-regionals/

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's ep#76, Dave, Cate and Pete take our listeners through: Market insights 1. March index results show the largest growth since 1988 CoreLogic property results are finally starting to show what we've been seeing on the ground since late last year. Every capital city is increasing full steam ahead. We think the market is only going to heat up further and there's more to go in this property run. What's more, we know that data lag creates delayed reporting. Our trio are certain that the record growth is yet to come to light. 2. First time buyers dominating the market Despite the fact that prices are high, first home buyers have never had it easier to get their first property purchase under their belt. Interest rates are the lowest they've ever been, the level of government stimulus and support is at an all-time high and savings are at record levels as well after months of buckling down (and locking down) on savings, particularly in the Melbourne market. As we recall, Melbourne suffered the longest periods of lockdown in our nation and the strength of the market bounce-back is palpable. 3. The bank of mum and dad Another player in the first home buyer corner is the bank of mum and dad providing their assistance. Parental contributions are averaging more than $89,000, which is an increase of nearly 20 per cent in the past 12 months. $89,000 is enough for a 20 per cent deposit in most of the nation's postcodes outside Melbourne and Sydney. 4. APRA won't intervene in the short-term At the Australian Financial Review Banking Summit held last week, APRA have said that their job is not to regulate the property market, it is to make sure there's no systemic risk in bank lending. As the media and political pressure increases with property values rising to new highs, APRA may get a tap on the shoulder sooner than anticipated to intervene and help take the heat out of the market. How to help your kids get on the property ladder 1. Monetary gifts (it's better than Christmas!) One of the primary ways a parent can assist their child is providing a lump sum of money to go towards the deposit. The trio explain how this method can be particularly helpful for many first-time buyers who have a strong borrowing capacity. 2. The difference between gifts and genuine savings Despite your generous gift, a lender may still require evidence of genuine savings before they provide the tick of approval. The trio discuss the optimum timing to give your gift, and some of the perils and pitfalls associated with this approach. 3. Security guarantees - the most popular method of assistance The Property Planner and Buyer take you through how a security guarantee works, the benefits and why it is the most common way parents help their kids in property. 4. Going in to a security guarantee with your eyes open If you've got equity available in your property, it may sound like a fantastic idea to offer your home or investment as a security. But as with any major decision, there are risks involved, not to mention a mountain of paperwork. The trio discuss the ins and outs of providing a security guarantee and costs, (and steps) involved. 5. Co-borrowing with your kids The Property Buyer and Professor share their first-hand experience of purchasing a property with their children. They cover off on ownership considerations, caveats and the agreements they've made with their kids. 6. The...

https://propertyplanning.com.au/propertyplannerbuyerprofessor/ In this week's Ep#75, of the Property Planner, Buyer and Professor Podcast, Dave, Cate and Pete take you through: Market insights 1. NZ abolishes negative gearing Any properties purchased after Saturday 27th of March will not attract tax deductibility on the interest portion of the repayments, while existing investment properties will have the negative gearing benefit phased out over the next 5 years. Although there is no silver bullet to cure housing affordability, could this be on the cards for Australia? Our trio discuss reasons it may or may not be a future policy setting of at least one party. As the Property Professor points out, investors share the task of providing shelter and this is something that our government is unable to deliver without the help of investors. 2. Increased agent activity unlikely to abate the pace of the market Although data shows an uptick in agent activity, which is a precursor to more stock on the market, it's unlikely that this will take the heat out of the market. Corresponding data for buyer search activity is going through the roof and any new stock on the market is likely to be swallowed quickly. 3. The bigger picture with property prices Darwin and Perth property prices are growing strongly, exciting many property owners and prospective home buyers and investors. However, when looking at the data, it's important to remember that although they've had strong growth recently (Darwin 16.7% and Perth 5%), prices are at the same level they were in 2009 and 2010. Data can be manipulated to support any intended view, so we advise you look beyond the superficial and news sound bites! The winner's curse and how to avoid it 1. What is the winner's curse? Where there's competition to win an asset that is in limited supply, (eg: a house), there can only be one winner. Typically, the person who wins the property pays the highest price. The winner's curse can manifest in concern and fear about overpaying. 2. Why are we prone to the winner's curse? It stems from our need for social proof to affirm that we've made a good decision and if we feel like we did not do enough research and analysis to accurately understand the market and/or our own financial position and goals. The fact that a buyer is willing to pay the highest affirms that no one else was willing to pay a price at that magnitude. This can make a buyer second guess all of the planning and preparation that went in to their decision in the first place. 3. When is it most likely to strike? The trio share the scenarios where the winner's curse is most likely to creep up on the successful purchaser. 4. How to combat the winner's curse Planning and preparation is a sure-fire way to avoid feeling concern that you've overpaid. The Property Planner and Buyer share their top tips on how to prepare so that you can be confident in your evaluation of the property's value and when to stretch beyond this price. You also need to understand your financial position, short and long-term goals clearly to buy confidently without regret. But if you can't help feeling the winner's curse, it's important to remember that if you're in it for the long-haul, the property market is forgiving if the property is held for many years to come. 5. The other side of the coin - loser's regret Loser's regret is the feeling of having been too conservative with the limit that you ended at in your bidding or highest offer, when you fail to purchase the property. This is particularly pertinent when you find out...

In this week's Ep#74, Dave, Cate and Pete take you through: Market insights 1. ABS and Core Logic data reinforces strong growth for 2021 According to ABS data for the December quarter of 2020, each capital city recorded growth between 2.6% and 3.4% which is between 10%1 and 15% annualised. CoreLogic data, which is more recent, for start of this year suggests even stronger growth of between 3% and 5% for Sydney, Melbourne, Adelaide, Perth and Brisbane which is in the 15% to 20% range when extrapolated. Property Planning Australia has now revised its forecast up to 15% house price growth for 2021. 2. FOMO causing irrational buying behaviour from first home buyers Fear of missing out is driving some first-time buyers, particularly those backed by the bank of mum and dad, to take "over the top" measures to secure properties. The Property Buyer shares her experiences at the coalface. 3. NZ Government expand powers of the RBNZ The Reserve Bank of New Zealand is now the first reserve bank in the world to include in its remit how its decisions may stabilise house prices. This part of the NZ government determination to take action against rapidly escalating house prices that have increased by over 20% over the last year. NZ were a world leader being the first bank to include a target for inflation under the Reserve Bank powers which all major economies subsequently followed. Could history be about to repeat this move by the NZ government be a harbinger of what's to come as other Federal Reserve follow suit in the coming months and years. 4. Property price growth is a world-wide phenomenon Across the globe, 2020 was the fastest year of house price growth since 2016. But 2021 could set even larger records. Canada, NZ and the US have seen housing markets rise faster than Australia, but Australia is on the move following in there footsteps as reserve bank employ previously unseen levels of monetary policy through rate setting and bond buying. 5. APRA says increase in debt to income ratio is not a concern Data released by APRA for the December 2020 quarter show that the number of property owners with debt greater than 6 times their income has almost doubled. The commentary from APRA is that debt to income ratios are broadly in line with historical averages and not something that they are concerned about currently with rates so low, but will this change? We think yes, the question is whether it is in 2021 or 2022. Secret steps to buying a house - The seven 'S's 1. State Property cycles play a part in determining price increases (and decreases) so when you do buy, you want to ensure that you buy in a state that is about to enter the upward swing of the property cycle. If your plan is to hold for the long-term, the stage of the property cycle diminishes in importance. 2. (S)City or Town Technically, not an 'S', but phonetically it works! When selecting a city or a town, understanding the capital growth drivers is paramount, including changing demographics and employment opportunities. 3. Suburb Just like cities, regional towns also have desirable suburbs primed for capital growth and gentrification and those that are best to stear clear of! The trio share the signs and data to look out for. 4. Street In blue chip suburbs, the A-grade streets are evident. But in a gentrifying suburb, it may not be known yet and you have to go looking. The trio share with you the secret characteristics of spotting an A-grade street. 5. Style The best styles of property, especially in our eastern an...