What We Have Been Up To While You Sleep!

Our buyer’s agent part of the business has been busy in the background purchasing some of the healthiest marginally returning assets across Australia.

– We have saved four recent clients a collective total amount of $174,000 off the original asking purchase prices.
– The average purchase price across the last four purchases was $398,000.
– The average yearly growth was 8.12% across the last four purchases.

– The average rental yield return was 4.61% across the last four purchase.
– 2 of 4 properties were sourced off market.
– One purchase was made specifically in a R3 zoned location to knockdown and build townhouses on in the next 12 months.
– Some of the units seen here have grown 45% in the last 5 years.

If your budget is not high and you are ready to get into the property market today, see a team that deliver results – available 7 days.

Why Luxland Have Started The Development Movement Towards Maitland

The City of Newcastle has had very strong price growth (many suburbs have risen 20% or more in the past 12 months. Now the momentum has shifted to Lake Macquarie and locations in the nearby Hunter Region (including Maitland, Cessnock, Singleton and Muswellbrook).

With incredibly low vacancy rates, a steady yet healthy growth year on year, I have put a further 8 local reasons as to why Luxland have started the movement towards Maitland and surrounding regions for our land & house packages.

• Hunter Express Way: $1.7 BILLION FEDERAL FUNDING
(8 minutes away)
• Newcastle University: 40,000 TOTAL STUDENT POPULATION
(29 minutes away)
• Newcastle Port: 2ND LARGEST COAL EXPORT WORLD WIDE
(45 minutes away)
• John Hunter Hospital: 650 BEDS
(32 minutes away)
• New Lower Hunter Hospital: 750 BEDS, $450M CONSTRUCTION
(7 minutes away)
• Hunter Valley Rail: TO NEWCASTLE CBD
(5 minutes away)
• Employment zone: 35 MINS AWAY
(35 minutes away)
• Stocklands Shopping Centre: $412 MILLION BUDGET RECENTLY COMPLETED
(15 minutes away)

Should you want more information on how we can help you, get in contact today – available 7 days.

The SUPERCHARGED Areas Where You Need To Invest

Property experts from Hotspotting.com.au have identified dozens of ‘supercharged’ suburbs in areas which investors should now be turning their attention to.

The website has just released their latest Price Predictor Index, which shows suburbs around Newcastle in New South Wales and Ballarat in Victoria are stand-out investment opportunity.

Terry Ryder, the website’s creator and property expert, said in a recent podcast investors not choosing the regions were missing out.

‘If you’re a property investor not considering the regions, then you’re missing opportunities to buy affordably in areas with strong yields and great potential for growth,’ Mr Ryder said.

‘The common denominator here is this – as the capital city markets in those states wind down, the regional markets are cranking up. This is a regular pattern in real estate cycles.’

Mr Ryder said Newcastle has ‘arguably the strongest market in Australia right now’ with the area ‘well advanced in its cycle’.

Suburbs in the area have experienced a median price increase of more than 20% in the past 12 months, with nearby Cessnock, Maitland, Singleton and Musswellbrook now tapping into that growth.

Want to know more? Let’s talk more today – available 7 days.

Anyone Can Purchase A Property – But Can They Spot A Deal?

Take the time to engage with the right buyer’s agent for you. There are many out there and many that specialise in specific areas only. Yes there are fees associated with using a buyer’s agent but as time rolls on, we can see purchasing property in today’s market is not an easy task…

Anyone can purchase a property and run through the process on their own, but finding a deal in specific areas that you are not as well versed on as opposed to a professional can really be the difference in the type of ‘deal’ you get for yourself.

Mandeep Sodhi, a former banker and founder and chief executive of HashChing, an online mortgage site, said stressed Millennials are being forced to cut back on dining out, holidays and are working second jobs.

“Most of these Millennials took out loans with the big four banks… they never bother looking around for property advice or shopped around for better rates with other lenders. They are paying a high price for their loyalty (to the big four banks).” said Mr Sodhi about the survey.

If you would like more information on how we can help you, send me a message today – available 7 days.

How Did The Recent Boom Compare To Previous Property Booms?

Sky-high auction clearance rates and the fear of missing out pushing up the prices of any property that was put on the market.

But how did the recent boom compare to previous property booms?

Earlier this year, CoreLogic dissected our housing cycle, categorising the past 20 years of data into five year increments, which revealed some interesting facts.

Firstly, comparing the last five years with previous market cycles showed that the increase in property prices we experienced were not as strong as some markets delivered in previous periods.

While Sydney’s property values increased 64.4% over the five years leading up to January 2018 and Melbourne dwelling prices increased 56.4% in the same period, the graphs below will show you how certain booms eclipsed these rates of growth in past cycles.

The Hunter With Some Of The Largest House Price Increases

The Hunter has recorded some of the largest house price increases in Australia over the past year as more people seek to move to the region in search of lifestyle options they could only dream of in capital cities.

Domain data released on Thursday shows Port Stephens is leading the Hunter price boom with a year on year increase of 16% followed by the Upper Hunter with an increase of 15.9%.

Newcastle recorded year on year increases of 7.9%, Lake Macquarie 6% and Maitland 5.9%.

By comparison, Sydney house prices have experienced a 4.5% fall over the past year.
The median house price in Sydney now sits at $1.14 million compared to $650,000 in the Lower Hunter.

“Regional areas like the Hunter are out-performing Sydney across the board,” Fairfax Domain Group data scientist Dr Nicola Powell said.

Relative housing affordability combined with lifestyle and access to employment opportunities is continuing to lure people out of Sydney to areas like Newcastle, Maitland and Lake Macquarie, Dr Powell said.

“Proximity to transport links is also important. The number of people who have a job in Sydney but only work in the office one or two days a week is definitely increasing,” Dr Powell said.

If you have further questions about The Hunter – available 7 days.

What Has The Last 12 Months Been Like?

Across the capital cities according to CoreLogic, Melbourne has been leading the downturn, with the quarterly rate of decline outpacing Sydney since May this year.

Melbourne dwelling values were down 1.8% over the past three months, followed by Perth (-1.5%) and Sydney (-1.1%). Melbourne’s decline phase commenced five months later than Sydney’s, with the market peaking in November last year. Since that time, Melbourne dwelling values have fallen by 2.9%, while in Sydney, where values peaked twelve months ago, the market is down 5.4%.

Those cities where values continue to trend higher have also seen a sharp reduction in their rate of capital gain. In Brisbane and Adelaide, where housing values were rising at a more sustainable pace over the past five years, the annual rate of capital gains has weakened.

In Brisbane, the annual rate of growth has eased from 2.9% a year ago to 1.2% over the past twelve months and in Adelaide the annual growth rate has dropped from 5.4% a year ago to just 0.7% over the most recent twelve month period.

Some Of The Highest Investment Yields In The Nation

Rental properties in suburban Newcastle are delivering some of the highest investment yields in the nation, new data shows.

The latest Domain Rental Report shows other hot suburbs included Adamstown Heights (7.8%), Maryville (6.5%) and Ashtonfield (6.5%). Median weekly rents for houses in the above suburbs were between $450 and $548.

“There’s a mix of things happening in the Hunter. Newcastle is going through a huge transformation, while areas like Maitland and Lake Macquarie are also experiencing very strong growth.”

Lake Macquarie and Port Stephens local government areas had the highest year on year rental yield for houses with an average return of 5%. They were was followed by Cessnock at 3.7% and Newcastle with 2.4%.

For units Lake Macquarie had the highest average return at 8.5%. It was followed by Newcastle with 7.1%, Cessnock at 3.7% and Port Stephens at 2.3%.

Real Estate Institute of NSW statistics show the combined vacancy rate for units and houses in Newcastle increased from 1.4% in 2008 to 4.6% in 2015 to 3% in the first quarter of 2018.

Are you looking to buy your first investment property and can not afford to purchase within desirable locations across the major capital cities? Let’s talk more – available 7 days.

Central Coast’s House Price Growth

First home buyers are driving much of the Central Coast’s house price growth.

The latest Domain House Price Report out today shows the median home will set us back around $650,000. That’s an increase of 1.6% since last year.

But Domain’s Dr Nicola Powell says apartments saw the biggest jumps locally, they now typically cost $490,000.

“Units grew 1.6% over the last quarter and 4.7% over the year,” Dr Powell says.

“When you compare it to all the other regions within the Greater Sydney catchment, the Coast is outperforming all of those regions: It’s the most affordable area, and I think it’s that activation of First Home Buyers, we are seeing them move and migrate up to the Central Coast.”

Elsewhere Sydney House Prices have fallen 4.5% over the past year. While a house at Lake Macquarie will set you back an average of $522,000, an annual increase of 6%.

Fast Train Network Connecting Sydney, Wollongong & Newcastle

A fast train network connecting greater Sydney, Wollongong and Newcastle as a “mega region” could create more than 10,000 new jobs, according to a new report.
A planning lobby group, the Committee for Sydney, said such a rail network could slash the commutes from Gosford to Sydney, and from Wollongong to Liverpool, by half.

The report said even a moderately fast rail network, which reaches speeds of 200 kilometres per hour, could connect Newcastle, the Central Coast and Wollongong with western Sydney in less than one hour.

Building new housing along such rail corridors could take the pressure off the Sydney housing market, the report said.
The Committee for Sydney has spent a year investigating the potential of improving links between Sydney, the Central Coast, Newcastle and Wollongong in what it is describing as a “mega-region”.

It estimates that if an extra 40,000 homes were built along the new rail corridors, that could deliver more than $75 billion of housing affordability improvements.
It also said such a rail network could create 4,725 new jobs for Wollongong, 3,875 for Gosford and 3,225 for Newcastle.

Early days, but very exciting for investors who are looking to diversify their portfolios. If you require more information, I’m available 7 days.