JOSHUA WYGODA'S BLOG

Tips for Selling Real Estate - Presenting your Home

2012-02-01T00:37:00.001+11:00

Tips for Selling Real Estate - Choosing a Method of Sale

2012-02-01T00:37:00.000+11:00

Tips for Selling Real Estate - Choosing and Agent

2012-02-01T00:36:00.000+11:00

Are you thinking of Selling before winter?

2012-01-30T11:48:00.000+11:00

Who can believe how quickly this year has started? One minute it feels like everyone is going on their merry way for Christmas, and the next we’re already into the final week of January – with only one month left of summer!

If you are thinking of selling your home before the winter months are upon us, I would suggest that now is an ideal time to start the process. You will need to appoint an agent to represent you, choose a method of sale, allow time to arrange advertising and editorial and last but not least the preparation of your property itself... there is much to be done before most of you will be ready to go to market.

The first step is obviously to appoint a sales agent with which to list your property. My Tips for Selling Property video below may assist you with choosing the best agent to represent you.

In choosing the best agent for your circumstances, don't simply choose someone with whom you feel comfortable, they also need to be honest with you regarding price expectations to allow you to make informed decisions. But probably the most important aspect to look for in an agent is their Negotiation ability. Remember, you are employing an agent to get you the best possible price.

It is also not uncommon for many properties to require a bit of a ‘sprucing up’ so to speak before being officially offered to the market. It is entirely up to you to decide the quantity of funds that will be dedicated to the endeavour; however a general rule is that you should follow the rules of a cost-benefit analysis. My Tips for Selling Property video below may also give you some tips on how to present your home for sale.

It is often the case that extensive renovations are unnecessary as many people like to move into a new property and integrate their own touch and preferences. You could find that you spend a large amount on repainting and reflooring, etc, only to have new owners move in and start again.

With this in mind, many properties will benefit immensely from just a coat of fresh paint and a decluttering of all personal items. When painting, light colours are often best as they can help to create a sense of spaciousness and light – often improving the appeal of the property to prospective buyers.

Although the steps to prepare a property for sale will differ from dwelling to dwelling, with an agent in place and slight visual changes complete, many properties will now be ready to take to market.

For more information or if you have any questions about selling or buying please do not hesitate to contact me. Even if you are not in my area of expertise I am more than happy to point you in the right direction.

Market Update - 28 January 2012

2012-01-28T07:08:00.000+11:00

Market Update - 16 January 2012

2012-01-16T21:03:00.000+11:00

2012 Residential Property Market

2012-01-16T12:05:00.000+11:00

Happy New Year and welcome to 2012!

I hope everyone had a relaxing and enjoyable Christmas and New Year period. Even for those who didn’t manage to take some extended time off, I hope you were able to celebrate with family and friends.

2012 is now officially underway and I am gearing up for what is sure to be an exciting year for the Australian residential property market. I know that for many people the start of the year sees decisions made about whether to purchase or sell a property; for those with real estate plans for the year - I hope 2012 allows you to achieve your property goals.

So what does 2012 have in store for the property market? Firstly, I think it is fair to say that 2011 concluded with a bang as the Reserve Bank of Australia moved to reduce interest rates in both November and December, giving many buyers a bit more comfort surrounding the prospect of buying a property. Thanks to this we have also seen a great start to 2012 with a number of sales already being achieved and a few more in the making. There also there seems to be more genuine buyers looking to get into the market.

Will rates continue to come down? Many pundits certainly seem to think this will be the case, particularly if the situation in Europe is not resolved definitively. While movement cannot be guaranteed and conditions can change, I would continue to watch this space, particularly as the Reserve Bank meets in February to review the official cash rate.

Even if rates do not come down again, the two consecutive cuts in 2011 seem to have opened the door for many buyers.

I suspect that along with owner occupiers, investors will also be taking advantage of reduced interest rates in at least the first half of 2012, with many engaging in portfolio building property acquisitions. With a tight rental market across the country and rental rates rising, now could be a prime time to purchase your planned investment property.

There has also been some positive press and if the experts’ predictions are correct 2012 will be a much better year than 2011 for residential real estate, particularly in Sydney.

Also for this year I will be posting weekly/fortnightly market update videos. I will try and keep them to around one minute and these to simply keep everyone up to date with the ever changing property market. Subscribe to either my Blog, my Youtube channel, or to Facebook to receive notification of when the updates are available.

Blog: www.joshuawygoda.com

Youtube: www.youtube.com/c21mosman

Facebook: www.facebook.com/joshuawygoda

All in all, 2012 is looking to be quite a busy period for the Australian housing market, and my team at CENTURY 21 and I look forward to assisting you in achieving your property goals.

Happy New Year!

2012-01-09T23:50:00.000+11:00

Final Report for 2011

2011-12-14T11:26:00.000+11:00

We are now less than 2 weeks out from closing for the Christmas/New Year break and I am sure many of you have better things to think about than what is happening with the property market. With this is mind I will try to keep my commentary short.

I would also like to take this opportunity to wish you all a safe and happy holiday period and a prosperous New Year. Thank you to all those who took the time to read my monthly reports and I hope you found them of some use.

I have noticed a big improvement in buyer sentiment over the past month, particularly following the first interest rate cut. The RBA's decision a couple of weeks ago to cut rates again should further assist both prospective residential property buyers and current mortgage holders in the lead-up to Christmas, particularly now that each of the big four banks (ANZ, CBA, Westpac and NAB) have passed on the rate cut to their customers in full.

There are some extremely attractive 3 year fixed rate deals at the moment. I have seen some as low as 5.49 per cent. It is also interesting to note that Australia’s largest mortgage broker, AFG, reports an increase in fixed loans from 7.9 per cent in July to 17.2 per cent in November.

Interest rates are an important factor when people are making purchasing decisions but in the property market on the Sydney's lower north shore it is not the only one. There are other issues that have far greater influence. Global issues, such as the European crises are a major concern for many and have a far greater impact than a quarter percent rate cut.

The good news is that the market under $1 million is still strong due to both first home buyer and investor activity. We are still seeing some good sales at the top end as well particularly from overseas buyers. There are also some amazing buying opportunities for properties above $3 million.

I have said this before, for the market gain confidence we don't necessarily need to see a lot of growth in prices but rather a period of stability across the board and an increase in the number of transactions. If what I am hearing is anything to go by there's a good chance this will happen in the first half of 2012.

As I mentioned earlier there are exceptional buying opportunities in the prestige sector above $3 million. If past history is anything to go by top end home values can rise rapidly as soon as economic confidence returns.

RP Data figures suggest the window of opportunity to buy at the bottom of the cycle is closing. Capital city home values recorded their best result in seven months in September, with falling prices slowing to only -0.2 per cent seasonally-adjusted while regional houses rose 0.1 per cent.

First homebuyer activity has surged and now comprises 16.4 per cent of the market, up 27 per cent on June this year and 40 per cent on the same time last year. First homebuyers stand to save almost $18,000 in stamp duty on a $500,000 purchase if they buy before 1 January. There is still time to take advantage of this.

I should probably finish up by saying that we have some exciting properties that will be launched to the market in January next year. If you are looking to buy over the holiday period I am more than happy to discuss with you what I have coming up in the new year and could possibly even organise a “sneak peak” for you. If you are thinking of selling and would like to discuss your options please feel free contact me.

I am looking forward to putting a few more sales together before Christmas and am extremely excited about what 2012 will bring. Once again, thanks for your continued support and have a great holiday.

Don't miss the deadline!

2011-11-22T12:48:00.000+11:00

The end of the year is fast approaching and for first home buyers time is running out to buy a property without having to pay stamp duty, for some this represents a saving of nearly $18,000

For the past couple of years there have been numerous government assistance and incentive schemes designed to make it easier for first home buyers to enter the property market.

There have been changes over the past few years and how the scheme currently works is as follows: If you qualify as a first home buyer and you purchase a property for $500,000 (or less) to live in then you are exempt from having to pay stamp duty. That is a saving of $18,000 on a $500,000 property. There is also a pro-rata discount for properties purchased between $500,001 and $600,000

As of January 1 2012 this scheme changes again. The stamp duty exemptions will only apply if the property purchased is brand new or an off plan purchase.

Latest data from the Bureau of Statistics shows increased buying activity in the Sydney housing market. Most of the increased activity was driven by a 15.9 per cent surge in first-home buyer housing loans over the month to the highest level recorded since December 2009. This surge reflects the impact of the expiry at the end of 2011 of the stamp duty concession for first-home buyers for the purchase of established properties.

We are seeing a large number of first home buyers in the market place looking to take advantage before the grant runs out. Properties that meet the criteria are experiencing strong enquiry, attracting good numbers of buyers at open house inspections and these properties are selling more quickly than those in other market segments.

If you think you may qualify as a first home buyer don’t miss this final opportunity. We have a number of properties which would qualify for the exemption. Go to our website for further details: www.century21mosman.com

If you are a property owner thinking of selling, now may be the perfect opportunity to capitalise. These types of properties are selling for a premium at the moment and come January 1, 2012, a large proportion of the buyers will disappear.

There is still time to sell or buy before the end of the year.

Feel free to contact me to discuss your options.

Joshua Wygoda

0414 666 190

Are you planning to sell in 2012?

2011-11-08T15:29:00.000+11:00

With only 6 weeks to go until Christmas, for those thinking of selling their property early next year its hugely advantageous to start thinking about it now.

Our marketing campaigns generally start after the Australia Day long weekend with the first Auctions being called in late February or early March.

So why start thinking about it now?

There is a common misconception that the market goes completely quiet over the December/January holiday period. This is true to some degree but based on my experience over the past few years here is what really happens:

Decreased Stock Levels: Many vendors think this is the wrong time of year to be selling a property so they either wait or pull their properties off the market thinking there are no buyers around. Lack of stock, or choice, always leads to better sales results.

International Buyers and expats: In the holiday period we see an unusually high number or buyers from around the globe and in particular ex-pats who are looking to return to live in Sydney at some point.

Local Buyers: Even though many local buyers are away or have other things on their mind, there are some that use their down time to search for a new home or investment. They put their feet up and read the real estate sections or let their fingers do the walking by looking through the various real estate internet sites.

Whilst I would not recommend entering into a full marketing campaign it can be advantageous to have a strategy in place to take advantage of the holiday period. We may get lucky, sell the property and save you the hassle and expense of a February/March campaign.

If the property is not sold by the end of January, then we launch into a marketing campaign in February. Being prepared we become first cab off the rank in attracting new buyers.

If you are thinking of selling please contact me so that I am able to discuss the most appropriate strategy for your property and circumstances.

Call me anytime on 0414 666 190 or email me joshua@century21mosman.com

Reserve Bank of Australia lowers official cash rate to 4.5 per cent bringing much needed relief to the Australian residential property market

2011-11-01T15:37:00.000+11:00

Today's decision by the Reserve Bank of Australia to lower interest rates could be the news many prospective buyers have been waiting for to make a real estate decision, which in turn may see increased activity in the residential market. A lack of certainty surrounding the direction of interest rates over the course of 2011 has resulted in many buyers showing reluctance to commit to a property purchase.

The Consumer Price Index released by the Australian Bureau of Statistics last week showed easing inflationary pressures on the domestic economy, paving the way for the Reserve Bank to reduce the official cash rate by a quarter of a percent. The decision follows several months of heightened concerns surrounding global financial markets, with weakened consumer confidence and affordability issues on the national front.

JUST LISTED - 1/1 ESTHER ROAD MOSMAN/BALMORAL

2011-10-20T14:38:00.000+11:00

Renovators dream in lifestyle location two minutes walk to water’s edge

1/1 ESTHER ROAD BALMORAL

INSPECT SATURDAYS & THURSDAYS 11.00 - 11.45 AM

2 Bedroom plus Sunroom, Lock-Up Garage

For more details please visit our website: www.century21mosman.com

or email me:

joshua@century21mosman.com

JUST LISTED - 69 BAY ST MOSMAN

2011-10-20T14:27:00.000+11:00

Renovated Beauty Point Home with Postcard-Perfect Middle Harbour Views

69 BAY STREET MOSMAN

INSPECT SATURDAYS & THURSDAYS 1.00 - 1.45 PM

3/4 Bedrooms, 3 full Bathrooms, Parking for 4 cars.

For more details visit our website: www.century21mosman.com

or email me:

joshua@century21mosman.com

The Spring Selling Season

2011-10-17T14:23:00.001+11:00

The spring selling season is well under way. Although stock levels are down compared with the same time last year we are still seeing an increase in the level of property being offered for sale compared to a few months ago. More importantly we are experiencing increased buyer activity.

There are a large number of sub $500,000 properties on the market as a direct result of changes to the government incentive schemes for first home buyers. As of 1 January 2012 stamp duty concessions for first home buyers will no longer be available except for brand new or off plan purchases. If first home buyers purchase before the end of the year they are exempt from paying stamp duty (if the purchase price is under $500K)

We have quite a number of exciting listings coming up. Click through to our website for further details. www.century21mosman.com.

I should also mention Century 21's recent success with Channel 10's “The Renovators”. Century 21 was appointed as exclusive selling agents for the 6 houses. All 6 houses sold on Auction night and the show which aired last Wednesday night was the top rating program of the evening. It seems Australians still have an affinity with property.

Despite the strength of the Australian Dollar we are still seeing strong enquiry from Overseas buyers. In fact, the recent dip in the strength of the Aussie dollar has allowed o/s buyers to spend more money. I have come across a number of cashed up foreign buyers looking to invest in Australia. Australia is still seen by many as politically and financially stable.

Interest rates: The current stability in interest rates is expected to continue well into 2012. There is now a possibility that the Reserve Bank of Australia could cut interest rates in late 2011 to kick-start a recovery in consumer confidence and spending, thereby initiating the next phase of demand, the recovery in the economy and housing market.

Auction clearance rates have continued to hover around the 55% to 60% mark for months now. Although it would be even better to have a higher clearance rate, what it does show is stability in the market. Our office clearance rates are somewhat higher than the Sydney average at around the 70% mark, evidence that your choice of agent directly affects the end result.

There has been some other good news lately. According to a recent BIS Shrapnell report , housing prices are predicted to increase by about 20% in Perth and Sydney by 2014

In Sydney, owner-occupier and investor demand is forecast to rise in 2012, underpinned by the rising dwelling deficiency and strengthening economic conditions, leading to higher price growth and dwelling construction.

The report also shows that although the median house value rose to $644,700 in June 2011, real house prices in today’s dollar terms remain below their median house price peak of $707,000 in the March 2004 quarter.

Ian Graham, chief executive of QBE Lenders’ Mortgage Insurance Limited (QBE LMI), says despite the current volatility in the global economy, QBE LMI is cautiously optimistic about the outlook for the Australian housing market.

If all the information at hand is accurate and if you believe the so called experts it appears property prices have bottomed and are on the way up.

Buyers should be considering purchasing now, so for those thinking of selling I would encourage you to consider putting you property on the market now. I never like making predictions but what I can say is that the current market seems to be a great market in which to be trading property.

CENTURY 21 SELLS ALL RENOVATORS PROPERTIES AT AUCTION

2011-10-14T11:16:00.000+11:00

Century 21, the largest real estate organisation in the Asia Pacific region, was selected to list all six properties on Channel Ten’s The Renovators, with each property successfully selling at a recent series of auctions.

“Century 21 is delighted that such a strong result was achieved for the contestants on The Renovators during fairly turbulent market conditions,” said Century 21 Australia General Manager, Paul Mylott.

“The renovations were nothing short of superb and homeowners would be wise to take note of how a solid renovation can change the way a property is viewed and valued,” said Paul Mylott.

A nationwide advertising campaign run by Century 21 resulted in widespread exposure for the properties, which were viewed over 90,000 times online. In addition, over 800 people contacted the various Century 21 sales agents requesting further details after viewing the properties online.

The properties sold were located in the Western and Inner Western suburbs of Sydney and included ‘The Weatherboard’ house in Parramatta, ‘The Sixties Suburban’ in Castle Hill, ‘The Fibro Cottage’ in Blacktown, ‘The Shop’ in Marrickville, ‘The Terrace’ in Glebe, and ‘The Half Done’ house in St Peters.

“After a well publicised marketing drive, over two thousand people inspected the properties with dozens of interested parties registering to bid,” continued Paul Mylott.

“Century 21 congratulates all of the contestants on The Renovators for producing such saleable and appealing properties, as well as the Century 21 agents who achieved these excellent results,” concluded Paul Mylott.

With over 3,000 offices, Century 21 is the largest real estate company in the Asia Pacific region, a region vital to Australia’s continued economic success.

SOLD AT AUCTION - $110K OVER RESERVE

2011-10-10T10:48:00.000+11:00

26 BARRY ST NEUTRAL BAY

CLICK HERE FOR MORE DETAILS

On the market for the first time in 90 years, ‘Brigalow’ is a stately 2 storey, 5 bedroom turn-of-the century residence set on a large, level block just minutes walk to Neutral Bay shops, buses and local schools. Featuring impressive formal lounge and dining, a self-contained flat, lock-up garage and private gardens with sandstone flagged courtyard, this home will reward those seeking to reinvigorate its impressive dimensions and flexible floorplan.
Liberry Park & Neutral Bay Club

• 5 bedrooms including self-contained flat and upper level master bedroom with living area and ensuite
• Grand formal lounge and dining with intact period fireplaces
• Study plus library/music room
• 3 bathrooms plus internal laundry
• Lock-up garage with rear lane access
• Level lawns, mature gardens, sandstone courtyard
• Soaring ceilings and preserved period features
• Scope for renovation
• Short level stroll to local amenities

For more details please contact Joshua Wygoda on 0414 666 190

Spring Market Update – September 2011

2011-09-19T14:28:00.000+10:00

It seems that only yesterday I wrote my last market update. We are now well and truly into the spring “selling season”. There is an increased amount of property on the market but stock levels are still down on what they would normally be for this time of year. Some buyers and sellers continue to express their concerns about the uncertainly of the market however we are seeing confidence returning to the property market and the facts and figures tend to support our experiences.

We started a number of spring Auction campaigns on the weekend including apartments in Mosman and Cremorne Point through to houses in Neutral Bay and Cammeray. We had some 20 plus groups of buyers attend each of our open home inspections. We have a number of requests for contracts and have also received relatively strong offers on a number of the properties. Buyers seem to have come out of their winter hibernation.

Other positive news....

Sydney auction clearance rates over the 9 months have remained reasonably stable in the low to mid-50% and are trending upwards. Over the last two weekends Sydney’s Auction clearance rates have risen over 60% according to the Real Estate Institute of NSW.

Higher rents are driving investor demand. With the recent changes to the laws allowing SMSFs to purchase property and with the volatility of the share market many more people are using self-managed super funds to buy property – latest Tax Office figures show a 13% increase in property investment via SMSFs over the past year. Also, an increasing number of young people are choosing to buy an investment property ahead of their first home. People still want to enter the market and if they can’t afford it, they will stay at home longer, save for a larger deposit, or buy with family or friends.

Interest rates have been kept on hold for the longest period in five years with some economists even entertaining the possibility of a cut over the next few months. . The RBA’s decision marks a positive start for real estate in spring – traditionally a very busy season for residential property with the warmer weather often reinvigorating those would-be buyers who held off from making a purchase during winter.

The expectation that rates will continue to be held at 4.75 per cent for at least a little while should provide some added motivation for buyers to take advantage of generally optimistic conditions

If the RBA moves to decrease rates further, this will supersede many macro economic issues for the average buyer. Buyers have been concerned about interest rates moving upwards and we really would like to see a rate reduction that puts the steep rises of the past 18 months behind us. With three year fixed rates now below the variable, the banks’ are indicating their belief that interest rates are on the way down.

Property still remains an excellent long term investment and without a doubt it offers more stability than the volatile share market. In short, we are experiencing great buying opportunities. The long term view is to purchase quality property in blue-ribbon areas or markets that show great prospects for capital growth.

For those who would like further advice regarding the sale or purchase of property this spring, please contact me on 0414 666 190 or by email at joshua@century21mosman.com.

Choosing the right Agent to sell your home

2011-09-16T13:11:00.000+10:00

For most the prospect of selling a home at the moment seems to be somewhat daunting. Never before have vendors had access to such vast amounts of information about market conditions, and while knowledge is definitely powerful, it can also be confusing.

Add to this the continuing contradictory media speculation about the state of the market. Some weeks it looks as though interest rates are set to go up and there is an undersupply of properties, the next the commentators may be reporting that there are affordability and supply concerns. Buyers can definitely be excused for being perplexed!

When hiring a real estate agent, vendors are essentially trusting the person that sells their home to provide them with the most accurate market information. This will enable them to make an educated decision about various aspects of the sale, including the price to accept, whether to take a property to auction, and how to best negotiate on price if the auction is not successful.

In conditions where the market outlook is somewhat uncertain, good agents will be frank and honest with you as their client, both through the stages of securing your business and as your property is taken to the market.

I have no doubt that when pitching for your business, less credible agents will give you overly positive information regarding price expectations and the like, that may not necessarily be reflective of the true state of affairs. However, it could very well be what you want to hear, and thus it is tempting to believe them.

Good agents will refrain from over-exaggerating the positive state of the market to obtain your listing. While you may not like to hear it at the time, receiving an honest assessment about market conditions from the beginning should help to make your selling process a lot easier to handle.

As a vendor you will also need to trust your agent to guide you through the price reduction process; that is, if your property has not yet sold, lowering its price to a level that meets buyers’ expectations. Believe me, this won’t be an easy conversation for your agent to have with you, however a good agent will approach you respectfully and should display an understanding of your situation. They know you don’t want to hear that your expected price may not be attainable, and will attempt to deliver the disappointing news in a truthful way.

Working with an agent that you trust and whose professional opinion you believe, is incredibly important when selling a property. It is an agent’s job to educate you and prepare you to be able to make the best decision for your individual circumstances – try to appoint your business to an agent who is truthful and realistic with you from the outset of your sales process.

JUST LISTED - 26 BARRY ST NEUTRAL BAY

2011-09-15T15:11:00.000+10:00

Loads of Potential

Ripe for Restoration!

Tightly held for over 90 years, ‘Brigalow’ is a stately c.1890 residence set on a level 692sqm (approx) block, just minutes walk to Neutral Bay shops, buses and local schools.

A well-loved family home steeped in Sydney’s history and ready to make new memories, its features include:

Generously proportioned reception rooms
5 bedrooms plus study, including a self-contained flat
Unrenovated kitchen
Lock-up garage with rear lane access
Level lawn, mature private gardens, sandstone flagged courtyard
Soaring ceilings and preserved period features including fireplaces and large North-facing bay windows
Only steps to Liberry Park and Neutral Bay Club amenities

Renovate or restore – the potential is tremendous. Don’t miss your opportunity to shape your own local legacy!

Inspect on Saturdays and Thursdays 12.00 to 12.45pm

Auction: Saturday 8 October 2011

For more information including additional photographs and floorplan please visit:

the Century 21 website

Please feel free to contact me on 0414 666 190 if you require any further information.

JUST LISTED - 11 ARKLAND ST CAMMERAY

2011-09-15T15:07:00.000+10:00

RENOVATE OR REBUILD

Potential-Packed Freestanding Home

This charming California bungalow is brimming with potential and opportunity. Situated on a quiet street only a short walk to Cammeray shops, cafes and transport, its features include:

Generous land size of 427sqm (approx)
Large rear verandah with a quiet, leafy aspect
Sunny and private near-level back garden with lawn
Established flowering trees including a crepe myrtle and 2 large frangipani
Original kitchen and bathroom
Three spacious double bedrooms
Charming period character, including high decorative ceilings, working fireplace, timber floors and glasswork throughout
Picturesque street facade and front garden
Off-street parking

In original condition, choose whether to move straight in, undertake a simple ‘facelift’ renovation, or fully capitalise on the home’s position with a rear extension and second level (subject to council approval) – the possibilities are endless!

Inspect: Saturdays 1.00-1.45pm or by appointment

Auction: Saturday 8 October 2011

For more information including additional photographs and floorplan please visit:

the Century 21 website

Please feel free to contact me on 0414 666 190 if you require any further information.

JUST LISTED - Stylish Kirribilli Apartment

2011-08-25T16:11:00.000+10:00

15/48 UPPER PITT ST, KIRRIBILLI

It is not often that an affordable renovated security 2 bedroom apartment with views and a parking space on title becomes available in one of Sydney’s most sought after suburbs. Situated only steps from Kirribilli’s cafes, village shops and restaurants, this ultra-convenient address offers contemporary living at its finest.

FIRST OPEN THIS SATURDAY 10.00-10.45AM

For more details, please give me a call 0414 666 190

Property update - Global headlines and our local market

2011-08-16T11:04:00.000+10:00

Much has happened since my last update both locally and globally - the downgrade of the United States’ credit rating, stock market volatility, softening of the Australian Dollar, more speculation about interest rates, as well as many other overly sensationalised headlines that the Australian media continues to churn out to sell papers. There is, however, good news for the Australian property market, read on….

Last week's rollercoaster ride on the Australian stock market and global uncertainty did not seem to have a negative impact on the weekend's house-buying activity in Sydney. The auction clearance rate was 60.5% compared with 54.3% last weekend. It seems that with share market activity volatile, many investors are questioning their strategies, adding fuel to the long-debated argument of property versus shares.

Traditionally during uncertain times, bricks and mortar are typically a haven for investors who have pulled their money out of shares in reaction to a volatile market. Property is seen by most as a far ‘safer’ environment for investors. We are also seeing more SMSF’s turning to property. According to a survey carried out by Mortgage Choice, about 6% of first-time Sydney investors plan to tap into their super funds when making their first property acquisition.

Consumer confidence also appears to be weathering the uncertainty. According to Dr Andrew Wilson, senior economist for Australian Property Monitors, there are still some doubts about the performance of local, national and international economies, but last week's stock market rally indicates there is investor confidence in the underlying strength of the Australian economy. If this confidence holds up as expected, it will have an undeniably positive effect on the housing market.

There has been a lot of speculation about interest rates in the last few weeks. In reaction to the debt problems facing the US and Europe, money markets have already factored in a cut of 1 percentage point in the official Australian cash rate by the end of the year. Westpac is forecasting a 1 percentage point rate cut by the end of 2012. And while ANZ is erring on the side of rate stability in the short-term, publicly citing a strong domestic economy, they have followed suit with the other major 4 banks last week, dropping their fixed-rate mortgage rates. ANZ's three-year fixed rate plummeted to 6.44%, ahead of CBA at 6.59%, NAB at 6.69% and Westpac 6.79%.

Other factors are also causing downward pressure on interest rates. For example, the unemployment rate has increased nationally, although importantly for us, there has been no change in employment figures for NSW. Lower interest rates typically stimulate the property market – as we saw in late 2008, when rate cuts were quickly followed by a large increase in demand for residential property.

Importantly, we are still seeing strong levels of enquiry from overseas buyers, and the softening Australian dollar is making foreign investment even more attractive. While the US and European Union are suffering at present, we have found that East and Southeast Asian buyers continue to be attracted to Australia for its economic and political stability, and with the Australian dollar dropping, property is becoming an increasingly strong investment proposition for international buyers.

While interest rates have a strong impact when buyers are making a decision to purchase, what we really need is a period of stability. There is so much uncertainty with conflicting media stories daily – we understand that it is hard to know what to expect next. At this point, both buyers and sellers should be factoring in the rate drop that the banks have made over the last week. If you are thinking of buying, keep in mind the rise in the market that followed the last set of rate cuts – if you are holding off and waiting for the market to dip further, you may find you have missed out. For sellers who have been unsure about the climate of the market this year, there is an opportunity here as local buyers return to the market on the back of lower interest rates and from overseas on the lower Australian dollar.

I would be happy to discuss your own situation and how you can take advantage of the current market to achieve your property goals.

Best regards,

Joshua Wygoda
0414 666 190
Century 21 Mosman

JUST LISTED - Stunning Near- New Luxury Family Home

2011-08-03T17:51:00.000+10:00

18 UPPER SPIT ROAD MOSMAN

Spectacular views, uncompromising luxury and extreme privacy characterise this architectural masterpiece overlooking Middle Harbour. Situated adjacent to Parriwi Park at the end of a quiet cul-de-sac, this home commands a striking position on over 1000 square metres, with resort-style amenities and the finest in contemporary finishes.

Designed with an active family in mind, the home’s intelligent floorplan includes large formal and informal living spaces on the ground floor connected by an open plan gourmet kitchen. The bedrooms are situated on the first floor, while the lower ground floor is dedicated to a home theatre, wine cellar, sauna, pool and spa facilities, with travertine floors, underfloor heating and ducted airconditioning throughout. Completed in 2010, this is a rare opportunity to own one of Mosman’s most stunning contemporary residences.

For more details or to book an inspection, please call me - Joshua Wygoda 0414 666 190 Century 21 Mosman

C21 Market Reports – July Property Transactions

2011-08-02T15:18:00.000+10:00

Please follow the link below to open Century 21 July 2011 Market Reports, our monthly free service outlining reported property transactions in Lower North Shore suburbs that we believe you will find useful for buying and selling property in your area, or simply to keep you up to date on the local market.
July Market Reports

The Market Reports are divided by suburb - please let us know if you need market data for any other Lower North Shore suburb, or any other time period or specification, and we would be happy to be of assistance.

Joshua Wygoda 0414 666 190

JUST SOLD - Record Result in Cremorne Point

2011-08-01T16:00:00.003+10:00

9/1A Murdoch Street, Cremorne Point has JUST SOLD for a RECORD PRICE in the building!

For more details about this property or if you have been thinking of selling and would like some more information, please give me a call - Joshua Wygoda 0414 666 190

Century 21 are your Cremorne Point Specialists

JUST LISTED - Stylish 2 Bedroom + Sunroom Apartment

2011-07-28T17:45:00.001+10:00

1/7 Badham Avenue, Mosman

Set in a tranquil location, this immaculately presented two bedroom apartment features abundant natural light, an elevated aspect and district outlook. A stylish renovation has modernised the essentials, yet has retained much of the period charm, including high ornate ceilings, leadlight windows, picture rails and polished floorboards.

FIRST INSPECTION 11.00-11.45AM SATURDAY

Call me for more details - Joshua Wygoda Century 21 0414 666 190

JUST SOLD in Mosman Street

2011-07-25T13:22:00.001+10:00

31/22 Mosman Street, Mosman
For a fantastic price of $410,000 in one week!

Listed with "Offers over $405,000" this fantastic one bedroom apartment (w/o parking) was snapped up quickly after a buzzing first open house last Saturday. If you have been thinking of selling your apartment, we have buyers who have missed out and are ready to buy! Give me a call today on 0414 666 190.

Joshua Wygoda Century 21 Mosman

July RBA Minutes and Statement

2011-07-20T15:01:00.001+10:00

Please follow this link for the complete minutes of the Monetary Policy Meeting of the Reserve Bank Board for July:
http://www.rba.gov.au/monetary-policy/rba-board-minutes/2011/05072011.html

The condensed version (Glenn Stevens' Media Statement):

At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

The global economy is continuing its expansion, but the pace of growth slowed in the June quarter. The supply-chain disruptions from the Japanese earthquake and the dampening effects of high commodity prices on income and spending in major countries have both contributed to the slowing. The banking and sovereign debt problems in Europe have also added to uncertainty and volatility in financial markets over recent months.

A key question is whether this more moderate pace of growth will continue. Commodity prices have generally softened of late, though they remain at very high levels. Despite the challenging international environment, the central scenario for the world economy envisaged by most forecasters remains one of growth at, or above, average over the next couple of years. A number of countries have tightened monetary policy but, overall, global financial conditions remain accommodative and underlying rates of inflation have tended to move higher.

Australia's terms of trade are now at very high levels and national income has been growing strongly, though conditions vary significantly across industries. Investment in the resources sector is picking up strongly in response to high levels of commodity prices and the outlook remains very positive. A number of service sectors are also expanding at a solid pace. In other areas, cautious behaviour by households and the high level of the exchange rate are having a noticeable dampening effect. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.

A gradual recovery from the floods and cyclones over the summer is taking place, though the resumption of coal production in flooded mines continues to proceed more slowly than initially expected. The recovery will boost output over the months ahead, and there will also be a mild boost to demand from the broader rebuilding efforts as they get under way, but growth through 2011 is now unlikely to be as strong as earlier forecast. Over the medium term, overall growth is still likely to be at trend or higher, if the world economy grows as expected.

Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.

Credit growth remains modest. Signs have continued to emerge of some greater willingness to lend and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has slowed. Most asset prices, including housing prices, have also softened over recent months.

Year-ended CPI inflation is likely to remain elevated in the near term due to the extreme weather events earlier in the year. However, as the temporary price shocks dissipate, CPI inflation is expected to be close to target over the next 12 months. In underlying terms, inflation has been in the bottom half of the target range, though a gradual increase is expected over time.

At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

Mid-Winter Property Update

2011-07-18T14:37:00.000+10:00

We have had a great month since our last update. We’ve sold a range of properties - from an unrenovated 1-bedroom apartment for $410K in Mosman through to a family home in Cremorne Point for $4.12 million, and plenty in between. With spring on the doorstep, we are also looking forward to a number of exciting listings that we have teed-up to launch in the next few weeks.

Our recent sales have certainly benefited from the seemingly low level of quality properties on the market this winter. There have been good numbers through our open houses, and buyers are actually commenting that there is not much to choose from at the moment.

Some reported statistics back our observations - research firm SQM states that the total number of online residential property listings fell by 2% during June. This is the second month in a row that they have reported a decrease in the number of listings. Some newspaper reports have cited 25% more stock on the market than the same time last year, but based on our observations, these figures must be heavily affected by other areas in Sydney.

The low stock level is typical of the winter selling season, and this year seems no different to any other. We expect to see some more properties on the market in August, with a larger increase in September. Auction clearance rates remain stable. They have been hovering around the 55% level for quite some time.

Encouragingly, we are also seeing many more investors return to the property market, including international buyers – primarily from China, Hong Kong and Southeast Asia. There is a noticeable increase in buyer enquiry over the last few weeks following the Reserve Bank announcement that rates would remain on hold for some time. ANZ has publicly predicted interest rates to stay on hold until at least February, and Westpac chief economist Bill Evans is predicting a series of rate cuts beginning with 25 basis points in December 2011 through 2012, totaling 100 basis points prior to a period of steady rates in 2013.

Forecasting rates seems to be a new industry in of itself - predicting monthly RBA decisions has become big business. Predictions continue to dominate newspaper headlines, and every television news broadcast seems to have an “expert” sharing their opinion/prediction.

In such an interest rate-sensitive market, this can cause instability. Fortunately, most recent punts are on interest rates staying on hold for the near future.

It seems that the banks have relaxed their lending practices somewhat – whereas 3-6 months ago we had a much harder time arranging finance for our buyers, today we are having fewer issues with the banks, which is a great sign.

This appears to be mirrored in the official statistics: recently released figures show that the number of home loan approvals in May rose to the highest level seen in the last two years. Data from the Australian Bureau of Statistics showed a 4.4 per cent month-on-month rise, taking the total up to 49,437.

These lending figures could indicate that the housing market might be on the road to recovery from a sluggish first half of the year, and could account for our busy June/July. With finance newly in place, these buyers are in the market and ready to buy.

The hot topic right now of course is the Carbon Tax and what effect it will eventually have on property prices, but the more immediate impact will be on consumer confidence and retail spending. The question is, how long will it take to for the country to adapt to the changes? One half of politics is working very hard to prolong the fear until the next election. Hopefully the impact on consumer confidence will not have that much stamina.

The Westpac-Melbourne Institute Index of consumer sentiment tumbled 8.3% in July to 92.8, from 101.2 in June. These are factors that are strongly weighed by the Reserve Bank when deciding on interest rate movements, and could assist rates remaining unchanged for the rest of the year – good news for mortgage holders and the property market in general. We will have greater detail about the RBA's thinking later this week with the release of the latest board minutes - I will post these to my blog when available. We already know the conclusion: the present level of interest rates is about right.

The European debt crisis is another issue making headlines. It is just another concern people are thinking about and looks as though it will be with us for some time.

Looking beyond the current headlines and despite all of these concerns, the key fundamentals of our economy remain on track. We still believe property is a safe bet, and our clients—both buyers and sellers—agree.

If you have been considering buying or selling this year, please feel free to call us anytime to discuss your circumstances. We are here to help you achieve your property goals, and will assist you through the entire process.

Best regards,

Joshua Wygoda
0414 666 190

JUST LISTED - Fantastic First Apartment or Investment

2011-07-14T17:14:00.000+10:00

31/22 MOSMAN STREET, MOSMAN

Offers over $405,000

Ultra Contemporary 1-Bedroom Apartment with Harbour Views
This 1-bedroom apartment boasts a fabulous renovation throughout and views that span from the Eastern Suburbs across the sparkling Harbour to the CBD, Opera House, Harbour Bridge and Milsons Point. Featuring a stylish kitchen and bathroom, large balcony and facility for internal laundry, this apartment is a perfect first home buy or appealing investment.

First inspection this Saturday 1.00-1.30 - call me for more details.

Joshua Wygoda Century 21 0414 666 190

JUST SOLD - 1 Bedroom Apartment with Views

2011-07-09T11:30:00.000+10:00

52/22 Mosman Street, Mosman

Unrenovated 1 bedroom apartment with views

JUST SOLD - $410,000

We know there has been a lot of interest in this apartment - if you have missed out, don't worry! We have a fabulous renovated 1 bedroom apartment in the same building with stunning views coming on the market this week. Give us a call for more information.

Joshua Wygoda Century 21 Mosman 0414 666 190

Century 21 Monthly Market Report - June 2011

2011-07-05T10:07:00.000+10:00

Please follow the link below to open Century 21 June 2011 Market Reports, our monthly free service outlining reported property transactions in Lower North Shore suburbs that we believe you will find useful for buying and selling property in your area, or simply to keep you up to date on the local market.

Click here to view the June 2011 Market Report

The Market Reports are divided by suburb – we are currently in the process of expanding our monthly suburb coverage. In the meantime, please let us know if you need market data for any other Lower North Shore suburb, or any other time period or specification, and we would be happy to be of assistance.

Kind regards,

Joshua Wygoda

2 Huge Auction Results from Saturday

2011-07-04T13:44:00.000+10:00

We had a fantastic Saturday with 2 massive results under the hammer...

76 Milson Road, Cremorne Point

SOLD at Auction - $4,120,000

4A Government Road, Mosman

SOLD at Auction - $1,500,000

We consistently achieve fantastic results for our clients - if you are thinking of selling this spring, give us a call anytime!

Joshua Wygoda Century 21 Mosman 0414 666 190

Buying in Today’s Market

2011-06-27T11:08:00.000+10:00

We know there have been a lot of conflicting reports in the media about the market, and it seems like we should weigh-in on why we think it’s still a great time to buy this winter.

First of all there’s lots of choice. RP data reports that there is approximately 30% more properties on the market than there were at this same time last year. As this supply dries up, prices also tend to increase.

Banks seem to be lending again. There are good deals on 3-year fixed rates, which suggests the banks have confidence in residential property in the medium term.

Despite all the media reports about interest rates, they actually have not gone up since November last year. However, rates will inevitably go up in the next few months, so this is a great time to beat the rise and lock in a loan at a favourable low rate.

Rents are high, rental yields are on the rise, and the Lower North Shore continues to be an incredibly desirable area for professional singles and couples, and families of all sizes. This is good news for both investors and self managed super funds.

Our key recommendation is not to miss out by sitting on your hands. You may find that by trying to read or anticipate the market, you may miss opportunities. No one has a crystal ball to tell us what will happen next month, so be sure to keep a long-term perspective and don’t miss out on properties that suit your lifestyle today.

JUST LISTED - 25/102 Spit Road, Mosman

2011-06-16T16:46:00.000+10:00

Renovated 3-Bedroom Apartment with Breathtaking Views

With elevated views sweeping from north of Manly across Grotto Point and North Head to the ocean, Balmoral, Georges Heights and beyond to the Sydney CBD, this stunning apartment takes in one of the most exceptional vistas in Sydney.

For more details, contact Joshua Wygoda 0414 666 190 or Emily Gordon 0404 721 546

http://www.century21.com.au/c21/propertySearch/brochure.cfm?grplstno=NSW5725956

Property Market Review - June 2011

2011-06-16T16:08:00.000+10:00

Recently, we have noticed that conflicting and confusing media reports have left both buyers and sellers feeling unsure about the current state of the property market. We thought it may be useful for our clients to share some of our observations about the current Lower North Shore market, as well as giving our predictions about what is going to happen in both the short- and longer-term.

What’s happening now:

From late last year to early this year we experienced what seemed to be the beginning of a market recovery after a slow start to 2010, but growth in our area seems to be on pause for the moment. Our best guess is that this is due to global economic uncertainly, fear of interest rate rises and a number of natural disasters both abroad and closer to home.

The market generally is slightly softer than it was 6 months ago. Auction clearance rates are hovering around 50% to 60% and according to RPData there is approximately 30% more property on the market compared with the same time last year. However, the stock levels are not expected to remain so high, as traditionally there is a drop in winter and this year seems to be no different.

The luxury segment of the market seems to be most impacted market segment at present. This is certainly true in the Lower North Shore and according to our Century 21 colleagues, every capital city appears to experiencing the same conditions. Past precedent suggests that the top-end is the segment of the market that will most dramatically rise once economic confidence returns.

Buyers are also acting with a great deal of caution. From our property enquiry we can tell there are lots of people wanting to buy property, but it seems that there are plenty who are waiting to see what the market does. There seems to be greater hesitation in some segments of the market, whereas in others buyer activity is still quite strong. We are still experiencing strong demand under $2million, whilst much less demand for properties over $2million.

We constantly hear from buyers that they are waiting for prices to hit the “bottom” before buying. The problem with this methodology is that the only way you can determine the bottom of the market is once prices have already begun to rise. Over the last 20 years, each time the market has risen after a correction, buyers always lament “missing the bottom” and wish they had bought 3 months previously.

Given that rents are on the rise and prices are slightly softer at present, it is an excellent environment for investors. One and two bedroom apartments are extremely popular at the moment and there is increasing demand from Self-Managed Super Funds investing in residential property.

Our best recommendation to buyers is to make property decisions based on what best suits your lifestyle, versus gambling on what may or may not happen with the “market.” It is so critical to keep in mind that for most of us, purchasing a property is a long term proposition!

Predictions for the short-term:

Interest rate uncertainty for the months to come is causing concern for some buyers; however, we interpret the major banks’ actions to mean that rate rise woes may be limited. Banks are offering reasonably low 3-year fixed term rates at present, which indicates the banks are fairly confident that we won't see too much upward movement in rates in the coming months.

Banks are also starting to lend again: it’s been awhile since we have seen a bank lend 95%, but we have just sold a handful of properties where the purchasers have in fact borrowed 95% without any difficulty. This suggests that the banking sector has confidence in the property market and anticipates longer-term capital growth.

In regards to recent headlines claiming that Sydney property prices are 40% overvalued, we would not recommend putting too much credence in these “experts”. These headlines appear in the media every couple of years. Over the last 20 years, we have not had a market drop by anywhere near this figure. If memory serves, the biggest drop was about 20% and within about 9 months these losses had been made up.

Our house prices are underpinned by a strong demand at the entry level of the market, which trickles up to the higher end through a knock-on effect. First home buyers continue to represent a large segment of the market, reportedly as high as 17% of the market in Sydney. As rents in Sydney continue to escalate and the government continues to incentivise buyers, tenants are more than ever trying to break the renting cycle in favour of purchasing a place to live.

Predictions for the medium- to long-term:

Sydney’s housing shortage and record low building approvals remain unresolved, which means the property supply will not be able to keep up with immigration and population growth in the years to come. This will continue to drive the market in the medium to longer term.

We are predicting an adjustment somewhere between 5 and 10% over the next 12 months, followed by a period of relative stability over the next 3 to 5 years with nominal growth. Before there is any real upward pressure on house prices, there needs to be some absorption of the extra stock on the market, as well as a return to sustained buyer confidence.

Unfortunately no one can know for sure what the next 12 years or even the next 12 months will bring, but we are certainly committed to keeping you up –to-date with the latest developments in the market as we see change. We are committed to assisting our clients to make the most of any market, and would be happy to discuss your buying or selling plans further, please contact us anytime.

Best regards,

Joshua Wygoda

JUST LISTED - Renovated Beauty Point Home

2011-06-14T17:57:00.000+10:00

Renovated Beauty Point Home with Postcard-Perfect Middle Harbour Views

Capturing stunning Middle Harbour views over 2 levels, this recently renovated Beauty Point home is ideally designed for entertaining or quiet family living. The views take centre-stage in the spacious, high-ceilinged open plan formal living and dining room, flowing onto a large covered verandah that wraps around the front of the home. There is also a separate informal lounge and family meals room providing for flexible living.

To register your interest or request an appointment, please contact Joshua Wygoda 0414 666 190 or Emily Gordon 0404 721 546.

JUST LISTED - Fantastic 2-bedroom Cremorne Point apartment

2011-06-10T12:27:00.000+10:00

9/1A Murdoch Street Cremorne Point

FOR SALE $650,000

Enjoy the twinkle of the city lights and the Harbour Bridge from this delightfully presented art deco apartment located in a quiet and exclusive, well-maintained security block. The generous floorplan features a bright north-facing aspect and has been completely renovated with quality inclusions and finishes throughout.

First inspection this Saturday 12.00-12.45pm

Call Joshua Wygoda 0414 666 190 or Emily Gordon 0404 721 546 for more details.

SOLD - 302/56 SPIT ROAD, MOSMAN

2011-06-09T11:10:00.000+10:00

Another sold using the power of the Century 21 Global Network

Fantastic 1 bedroom apartment sold for $500,000 by Joshua Wygoda and Emily Gordon of Century 21 Mosman.

Through our Century 21 Database we were able to match a buyer with the property and negotiate a record price for the building... without the need for marketing!

For more details on how we can do the same for you, please contact Joshua Wygoda 0414 666 190 or Emily Gordon 0404 721 546.

Statement by RBA governor Glenn Stevens

2011-06-07T17:34:00.000+10:00

At its meeting today, the board decided to leave the cash rate unchanged at 4.75 per cent.

The global economy is continuing its expansion, led by very strong growth in the Asian region, though the recent disaster in Japan is having a major impact on Japanese production, and significant effects on production of some manufactured products further afield. Commodity prices have generally softened a little of late, but they remain at very high levels, which is weighing on income and demand in major countries and also pushing up measures of consumer price inflation. In response, a number of the countries with stronger expansions have been moving to tighten their monetary policy settings over recent months. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty over the prospects for resolution of the banking and sovereign debt problems in Europe has increased over the past couple of months, which has been adding to financial market volatility.

Australia's terms of trade are reaching very high levels and national income has been growing strongly. Private investment is picking up, led by very large capital spending programs in the resources sector, in response to high levels of commodity prices. Outside the resources sector, investment intentions have been revised lower recently. In the household sector thus far, there continues to be a degree of caution in spending and borrowing and a higher rate of saving out of current income. The impetus from earlier Australian Government spending programs is now also abating, as had been intended.

The floods and cyclones over the summer have reduced output in some key sectors. As a result there was a sharp fall in real GDP in the March quarter, despite a solid increase in aggregate demand. The resumption of coal production in flooded mines is taking longer than initially expected, but production levels are now increasing again and there will be a mild boost to demand from the broader rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.

Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest that this slower pace of employment growth is likely to continue in the near term. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.

Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has expanded this year after a period of contraction. Growth in credit to households, on the other hand, has softened, as have housing prices. The exchange rate remains, in real effective terms, close to its highest level in several decades. If sustained, this could be expected to exert continued restraint on the traded sector.
CPI inflation has risen over the past year, reflecting the effects of extreme weather and rises in utilities prices, with lower prices for traded goods providing some offset. The weather-affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the next 12 months.

At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

Mosman Remains Sydney's "Most Popular Prestige Suburb"

2011-05-30T17:25:00.000+10:00

Great to hear some positive news - in Saturday's SMH Domain, APM analyst Andrew Wilson published an article "Sydney's prestige market shows some resilience" where our own Mosman got a mention as "the most popular prestige suburb." The complete article along with the weekly market figures are available online http://news.domain.com.au/domain/home-investor-centre/sydneys-prestige-market-not-all-grim-20110527-1f6wb.html.

How useful is Property Data?

2011-05-25T16:54:00.000+10:00

An extract from Australian Property Investor Magazine's Deputy Editor Vanessa De Groot 25 May 2011:

The compilation of data related to the property market is now extremely comprehensive, with some companies dedicated solely to putting figures together and getting information out there.

BY VANESSA DE GROOT
There are regular news stories about the increase or decrease in the median price of property and it’s widely used as an indicator of the overall state of the property market.

For instance, it was recently reported from figures released by one of the data compilation companies that over the March quarter home values fell by 2.1 per cent. That, in turn, saw a number of stories in the media that used the data to claim the housing market was in a bad state, with prices falling.
Many of us know well the arguments about house prices falling, one of the most important being that even though prices might fall across the board, that doesn’t mean that they’ve fallen in every suburb in Australia – in fact in some places they might go up. Similarly, it doesn’t mean prices have fallen for every property. It also doesn’t mean the property market is in dire straits.
So I pose the question – how important is this data? Is it an accurate reflection of what’s going on in the market and can we rely on it as such? Or should it just be used as a guide?
I think many property investors use the data to get an overall understanding of what’s going on in a particular market.
But we must be aware that the data needs to be carefully examined. If a median house price in a particular area has risen then you also need to look at things like the number of sales, because if there’s only a low number it might not be an accurate reflection, and whether there’s new housing development in the area, which might be pushing the median price up.
Investors shouldn’t look at median prices for an area and immediately assume that they can find something in that area for that price – many factors can throw the median off and hence, it may not be a 100 per cent accurate reflection of the market.
Similarly, if you have a property in a particular area and the median price has grown by a certain percentage, but yours hasn’t, it doesn’t necessarily mean the data is wrong. The percentage growth rate doesn’t necessarily apply to every single property. There are a lot of variables and your property may have characteristics that means it may grow more than the average growth rate, or less.
It may also be a good idea to look at data for a long period of time – that is, the growth rate over five or 10 years may more accurately reflect the growth in median price rather than looking at the past year, as that can be influenced by different, temporary factors.
As an example, if we look at the media reports now, with all the doom and gloom about property prices having fallen, we’d be misled about the property market.
Figures might indicate – rightly or wrongly – that the market has dropped a tad, but over time if we look at the growth rate of property prices it’s an entirely different story, with prices having risen exponentially over the years.
This is just a temporary slowdown and if we interpret the figures correctly, looking at growth over a longer period of time, we can see that.
While it’s a good idea for property investors to use data that looks at median prices, rents and even things like supply and demand and stock on market, it’s important to put it all in context. Thorough research of a particular area should be undertaken before buying solely on the figures.
That’s important too because even though there might have been growth in a particular area in the past, there’s no guarantee from that that there’ll be growth in the future. Future growth depends on things like whether there’s population growth and infrastructure being built, among many other things.
Don’t get me wrong – I think the property data provided by research houses is very worthwhile and is essential for investors to be familiar with and understand, but I also think we shouldn’t put too much reliance on it when buying or selling, or even setting a rental rate.
It’s just one part of the whole story.

Is winter a good time to sell?

2011-05-16T14:47:00.000+10:00

It may be getting cold outside, but the winter property market is just warming up!

Year after year we get asked the same question by clients wanting to sell their property:

Is winter a good time to sell or should we wait for spring?

The answer: winter is a great time to sell.

Traditionally, the number of homes on the market decreases over the winter months, creating a huge opportunity for owners aiming to sell before the spring rush of properties for sale.

Fewer houses on the market means reduced choice for buyers, but there are still plenty of buyers around. We have found the level of buyer enquiry does not vary significantly based on the season. Whilst there are generally fewer transactions recorded during winter months, the prices tend to be a bit higher because of the increased competition.

Selling this winter may have an added benefit. With rate rises predicted to strike later this year, selling in the winter months may give owners a chance to beat the next rise. The past few rate rises have put dampers on buyer sentiment, so there is a definite advantage to getting your property on the market and sold as soon as possible.

I would be happy to discuss buying and selling in winter, and how it can affect your circumstances, please give me a call anytime.

Warm wishes,

Joshua Wygoda

Rates on hold for now, but expect an increase soon.

2011-05-11T23:57:00.000+10:00

Last week at its monthly meeting the Reserve Bank of Australia decided to keep the official cash rate on hold at 4.75 per cent. This decision is good news for the residential property market as it means that mortgage holders have at least another month without an increase to their repayments. Having said this, I do feel that buyers and home owners are going to need to prepare for a rate rise in the coming months.

In his statement following the rate hold announcement, the Governor of the RBA, Glenn Stevens, said that the RBA Board felt the current mildly restrictive stance of monetary policy remained appropriate, but that in future meetings the Board would continue to carefully assess the evolving outlook for Australia’s growth and inflation.

In terms of the global economy, the RBA felt despite other countries moving to tighten their monetary policy settings, financial conditions continue to remain accommodative. There has been some interpretation in the media post decision however that the RBA also recognises that the strong Australian dollar poses some risk to our economy.

An important consideration for the RBA has always been levels of inflation. The recent official inflation data for the first quarter released by the Australian Bureau of Statistics saw a surprise jump of 1.6 per cent in the CPI over the March quarter, which is the largest quarterly rise seen in the CPI in five years.

The RBA’s statement showed that it recognised the issue of increasing inflation. While the RBA expects inflation will be close to its target levels over the year ahead, Governor Stevens acknowledged that recent information suggests that the marked decline in underlying inflation from the peak in 2008 has now run its course. He said that over the longer term inflation can be expected to increase somewhat if economic conditions evolve as broadly as expected. We need to recognise that such an increase would strengthen the possibility of a rate rise.

Getting back to property, as a result of this rate hold CENTURY 21 continues to believe that the residential market is an attractive environment for property buyers, given the amount of stock that is currently available and the low clearance rates that we are seeing.

In approaching a property decision, buyers need to recognise the possibility of a rate rise and obtain an understanding about how this outcome could affect the viability of their purchase. Current owners with mortgages also need to practically prepare for the increased repayments that an interest rate rise would result in, and use this month’s rate rest to budget accordingly.

And so, for the sixth month in a row we wait to see what the next RBA decision will bring. While we cannot be sure when a rate increase will come, we can recognise that current economic indicators point to its eventual arrival. It is my view that the best action that residential property owners and purchasers can take is to prepare adequately.

Interesting SMH article - 7 May 2011

2011-05-09T11:05:00.000+10:00

Prices are falling - some suburbs still hot

Dr Andrew Wilson

May 7, 2011

The latest house price data from the Australian Bureau of Statistics has confirmed most capital city markets slowed in the March quarter.
The ABS reports that prices for established houses in Sydney fell by 1.8 per cent during the quarter, containing the annual increase to just 0.8 per cent.
The ABS trend is broadly in line with the latest Australian Property Monitors' March quarter house price report that reveals Sydney median house prices fell by 0.4 per cent in the quarter and rose by 2 per cent during the year. It should be noted that APM models all house sales, not just established houses, as the ABS does.
Despite the recent decline in prices, Sydney remains the most expensive capital. With the median house price in the March quarter at $643,713, Sydney clearly leads its closest rivals, Darwin ($615,653), Canberra ($568,541) and Melbourne ($563,397).

Some Sydney suburbs have continued to perform strongly despite the weaker overall market. The top-10 suburbs for median house price growth in the past year are Kensington (30.9 per cent), Westmead (30.7 per cent), North Sydney (28.9 per cent), Lewisham (26.1 per cent), Neutral Bay (25.2 per cent), Tempe (24.6 per cent), Dundas (24.2 per cent), Abbotsbury (24.2 per cent), Rosebery (24 per cent) and Coogee (23.4 per cent).
These suburbs are in varied locations, with no clear regional trend in house price growth apparent. The annual median prices for these suburbs are also mixed, with four suburbs greater than $1 million and six less.
Dr Andrew Wilson is senior economist for Australian Property Monitors.

Interest Rates

2011-05-04T21:43:00.000+10:00

Glen Stevens' Reserve Bank Statement - 3 May 2011

2011-05-04T14:35:00.000+10:00

At its meeting today, the Board decided to leave the cash rate unchanged at 4.75 per cent.

The global economy is continuing its expansion, led by very strong growth in the Asian region. The recent disaster in Japan is having a major impact on Japanese production, and some effects on production of manufactured products further afield. Commodity prices, including oil prices, have generally continued to rise over recent months, pushing up measures of consumer price inflation in many countries. A number of countries have been moving to tighten their monetary policy settings. Overall, though, financial conditions for the global economy remain accommodative. Uncertainty remains over the prospects for resolution of the banking and sovereign debt issues in Europe.

Australia's terms of trade are reaching higher levels than assumed a few months ago, and national income is growing strongly. Private investment is picking up, mainly in the resources sector, in response to high levels of commodity prices. In the household sector thus far, in contrast, there continues to be caution in spending and borrowing, and a higher rate of saving out of current income.

The natural disasters over the summer have reduced output in some key sectors and the resumption of coal production in flooded mines is taking longer than initially expected. It is likely this caused a decline in real GDP in the March quarter. Production levels should, however, recover over the months ahead, and there will be a mild boost to demand from the rebuilding efforts as they get under way. Over the medium term, overall growth is likely to be at trend or higher.

Growth in employment has moderated over recent months and the unemployment rate has been little changed, near 5 per cent. Most leading indicators suggest further growth in employment, though most likely at a slower pace than in 2010. Reports of skills shortages remain confined, at this point, to the resources and related sectors. After the significant decline in 2009, growth in wages has returned to rates seen prior to the downturn.

Overall credit growth remains quite modest. Signs have continued to emerge of some greater willingness to lend, and business credit has resumed growth after a period of contraction. Growth in credit to households, on the other hand, has softened recently, as have housing prices in several cities. The exchange rate has risen further and, in real effective terms, is at its highest level in several decades. This, if sustained, could be expected to exert additional restraint on the traded sector.

Recent data on inflation show the effects of production losses due to the floods and Cyclone Yasi. The affected prices should fall back later in the year, though substantial rises in utilities prices are still occurring. The Bank expects that, as the temporary price shocks dissipate over the coming quarters, CPI inflation will be close to target over the year ahead.

Looking through these short-term movements, however, the recent information suggests that the marked decline in underlying inflation from the peak in 2008 has now run its course. While the rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters, over the longer term inflation can be expected to increase somewhat if economic conditions evolve broadly as expected.

At today's meeting, the Board judged that the current mildly restrictive stance of monetary policy remained appropriate. In future meetings, the Board will continue to assess carefully the evolving outlook for growth and inflation.

JUST LISTED - 5/2 Upper Avenue Road, Mosman

2011-05-02T17:22:00.000+10:00

JUST LISTED

5/2 Upper Avenue Road, Mosman

Offering expansive district views over Mosman Bay, city skyline and Harbour Bridge, this stylish and superbly presented top floor, strata-titled 2 bedroom apartment features light-filled north facing interiors and wide entertaining balcony.

For details:

Joshua Wygoda 0414 666 190
Emily Jessee Gordon 0404 721 546

Property profile:
http://www.century21.com.au/c21/propertysearch/Brochure.cfm?grplstno=NSW5725781

FIRST INSPECTION SATURDAY 7 MAY 11.00-11.45AM

CPI Data and Interest Rates

2011-04-29T16:19:00.000+10:00

Consumer Price Index data was released this week which showed a sharp rise in inflation during the March quarter, some of this due to the floods and inclement weather during the quarter, some not. The RBA targets long-term inflation of between 2% and 3% on an annual basis. The all groups inflation indicator increased by 1.6% during the quarter, well above the market expectation and taking annual headline inflation to 3.3%. Importantly, the RBA’s preferred measures (weighted median and trimmed mean) increased by a much lower 0.8% and 0.9% respectively during the quarter. On an annual basis these two measures of underlying or ‘core’ inflation remain well within the RBA’s target range at 2.2% and 2.3% respectively.

The items which recorded the greatest quarterly increases in inflation were: education (5.7%), health (3.9%), food (2.9%) and transportation (2.7%). The increase in education and health is a seasonal blip which occurs each year during the March quarter however, only the increase in food can really be attributed to the weather during the quarter and what’s more that can only be partially attributed to loss of crops. Although there was a sharp rise in inflation some items did record a fall: household contents and services (-1.6%), clothing and footwear (-0.7%) and recreation (-0.6%).

The RBA has their May board meeting next Tuesday and will decide whether or not to adjust official interest rates. Although the CPI figure came in well above market expectations the RBA has stated that they will look through any short-term effects of the cyclones and floods. We would expect that rates will remain unchanged however, given the sharp rises in transportation (petrol) and some strong increases elsewhere, if these persist the RBA may have to lift rates sooner rather than later.

Source: RP Data

What to do if your property is passed in at Auction

2011-04-28T13:44:00.000+10:00

It can be a very frustrating experience to have your property passed in at auction. The lead up to and auction themselves are often emotion-charged experiences and after all of that it can be hugely anticlimactic if the property does not sell at all.

Realistically, the possibility that your property may be passed in should be a consideration when you are initially choosing an agent - you need to feel confident in the agent’s ability to negotiate the best deal on your behalf should your auction be unsuccessful.

So, what are you to do if the possibility becomes a reality - your property is passed in at auction?
The first step is not to worry – the result is not necessarily a bad one. The good news is that the majority of homes will go on to be sold afterwards, if not in the hours immediately post-auction then usually in the days following. Many prospective buyers will even increase their offering from what was bid at auction in order to secure the property, sometimes reaching the reserve price.

It is therefore important to stay calm and focussed – you are still going to be called on to make decisions and to do so requires a clear head.

It is usually the case, and the law in some Australian states, that the first right of negotiation after a property has been passed in rests with the highest bidder. These discussions invariably start directly after the auction has finished with your agent acting on your behalf.

It is important to go into these preliminary negotiations with somewhat of an understanding as to why your property did not sell. For example, you may have set a reserve price that is deemed to be higher than market value, and thus buyers were not prepared to meet it. Having a general idea (aided by your agent’s advice) should help you to better reach a settlement that is favourable to you as well as being realistic.
Depending on your need to sell, it will also be important to go into these discussions prepared to negotiate. You want the best price; however your property may also have been sitting on the market for a fair amount of time, or you could be financially committed to another property that requires funding to settle. It is important that your agent is aware of your situation and the importance of achieving a sale, keeping these in mind throughout their negotiations with potential buyers.

Remember that your agent is looking out for your interests and wants to achieve the best possible sale price for you. Accept that your agent knows the area and market conditions, and try to take their advice in situations where you are unsure as to what will be the best action to take.

In the end, it is a possibility that every auction could end with the property in question being passed in. Just remember to stay calm and focused throughout the negotiations that take place afterwards and, with the help of your agent, you should be able to achieve a satisfactory sale.

Things to consider when purchasing an apartment

2011-04-27T06:39:00.000+10:00

There is no doubt that apartment living can be a very attractive housing option for many people. But before purchasing an apartment, it is important to understand how the ownership of an apartment differs from that of a house, and the responsibilities that you may inherit upon buying into an apartment complex.

Ownership
In the majority of cases the ownership of an apartment or unit comes under strata title – which refers to the individual ownership of a single unit within a multi-unit complex. In owning your apartment you also become a joint owner of the common property with the other owners in your apartment complex.

Depending on your strata scheme, areas such as your external walls, floor and roof may be considered common property, and thus do not below to you. This means you may not be able to renovate or alter them.

Levies
Owners of apartments are obligated to pay rates for the upkeep of the common building of which they are a part owner. Apartment complexes may have two separate funds running concurrently to which the owners must contribute. Typically an Administrative Fund is used for day-to-day operational expenses, while a Sinking Fund is in place for long term expenditure. The Owners Corporation of a building will estimate how much is needed for each year to cover all costs, and this figure is then split between all owners, becoming a fee known as a ‘levy’.

Before buying into an apartment building it is important to consider the state of the building to ascertain whether or not extensive renovations or repairs may need to be undertaken in the near future. If this is the case, and the funds have not already been raised, you as the owner may be asked to contribute to pay a Special Levy to cover the costs. This information can usually be found in the Minutes of meetings held by the owners of the building, and should be identified if you have a Strata search carried out.
Try not to fall into the trap of selecting a building purely because its levies are low. This could be a risky tactic, particularly if the building will be in need of repairs shortly after your purchase. While your general levies may stay the same, a Special Levy established to cover the costs of the work could be far more than you budgeted for.

Pets
Some apartment buildings allow animals while others don’t. If you wish to live with a pet it is important to check this before making your purchase.
In your search for a suitable apartment you will find that many buildings vary, from the way they are maintained to the levies charged. Be sure to have the appropriate studies and reports completed so that you can ensure there are no surprises later on into your ownership.

If you require any further information please don't hesitate to contact me.

JUST SOLD

2011-04-11T15:22:00.000+10:00

205/732 Military Rd Mosman

Contemporary 1-bed apartment with unbelievable storage

Situated in the heart of Mosman Village in the recently built ‘M on Military’ complex, this one bedroom apartment has so much to offer. With an incredible 358sqm on title, this is not one to miss!

291sqm of secure storage
Open plan combined lounge and dining
Modern kitchen includes Smeg appliances
Large bedroom with built in wardrobes
Ultra modern bathroom
Internal laundry
Large balcony on the quiet side of the building
Reverse cycle split system air conditioning
Lift access and video intercom system
Security undercover carspace

For further details please contact Joshua Wygoda on 0414 666 190.

JUST SOLD - UNDER THE HAMMER

2011-04-11T11:50:00.000+10:00

60 Willowie Road Castle Cove

Boasting an elevated northerly aspect with sublime water views over Middle Harbour, this substantial 3 storey, 4 bedroom home offers copious accommodation in a quiet location with views that can never be built out. In original condition and beckoning renovation, this is a rare opportunity to enter this exclusive neighbourhood and create a family home perfectly tailored to your requirements.

4 double bedrooms opening to harbour facing balcony
Spacious formal lounge/dining with cathedral ceilings
Family room plus eat-in kitchen
4 bathrooms inc. ensuite
2 auto garages plus driveway parking
Large in-ground pool
Prized north facing, tranquil location
Renovate to create extensive family home

For further details please contact Joshua Wygoda on 0414 666 190

JUST SOLD

2011-03-04T15:58:00.000+11:00

40 Cremorne Road, Cremorne Point

For a huge result!!

Contact Joshua Wygoda 0414 666 190 or Emily Jessee 0404 721 546 for more details

Century 21 are your Cremorne Point real estate specialists!!

JUST SOLD

2011-03-04T15:35:00.000+11:00

12 Shellcove Road, Neutral Bay

After only 1 inspection!!

Call Joshua Wygoda 0414 666 190 or Emily Jessee 0404 721 546 for more details

Century 21 are your Neutral Bay real estate specialists

JUST SOLD

2011-02-28T14:12:00.000+11:00

4/50 Aubin Street

Neutral Bay

For more details, please contact Joshua Wygoda 0414 666 190

or Emily Jessee 0404 721 546

Century 21 is your Neutral Bay property specialist

Auction Clearance Rates for the week ending 6 February

2011-02-12T16:16:00.000+11:00

JUST SOLD

2011-02-10T13:54:00.000+11:00

3/17 Royalist Road, Mosman

After only 3 inspections!

Call Joshua Wygoda 0414 666 190 or Emily Jessee 0404 721 546 for more details.

Century 21 Resnekov Realty is your Mosman specialist

JUST LISTED - Waterfront Kirribilli Apartment

2011-02-04T15:24:00.000+11:00

JUST LISTED

6/29 Waruda Street, Kirribilli

2 bedroom apartment with point blank views of the Opera House and Harbour Bridge

FIRST INSPECTION THIS SATURDAY 10.00-10.45

Contact Joshua Wygoda 0414 666 190 or Emily Jessee 0404 721 546 for more details

www.century21mosman.com