A WORD FROM WARWICK
Last month the Reserve Bank surprised many with its decision to reduce the cash rate by 0.25% to a 53 year low. Generally, the news of the interest rate drop in our local market has been received well as it bolsters purchaser affordability and can lead to stimulate competition and demand for property.
Of course affordability means little if consumer confidence is not strong, however the Inner West appears to have confident and aspiring residents, who are actively in the market keen to seize opportunities as they present themselves.
Although the volume of property on the market in Sydney is down approximately 12% for the same time last year, auction clearance rates are tracking at almost 10% higher and Sydney property vacancies are at a 12 month low.
Heading into the cooler months we tend to see the flow of new stock coming on to the market tighten, however given the momentum gained in the first quarter we feel potential vendors can capitalize on conditions in the current market no matter the season and are launching numerous campaigns to soak up demand.
We are conscious that the distraction of the Federal Election looming in September may divert attention from what is usually one of our busiest selling months of the year. With this in mind, our sales teams are working with many potential vendors on July and August campaigns to ensure smooth, uninterrupted and successful marketing programs scheduled to conclude prior to election day.
Preparedness is the key for vendors and purchasers at this time. Vendors need to be ready to launch their properties a little earlier than perhaps they planned and purchasers need to ensure they have all of their due diligence (finance, legal advice) at the ready to be able to transact swiftly given stock levels are not high.
While attractive interest rates are certainly beneficial to most groups we work with, such a low cash rate is causing concern amongst some investors, such as retirees, who are holding cash in savings accounts or in term deposits. Low returns on investment trigger a thought process as to which other asset classes would deliver higher yields (without carrying the risk of losing initial capital).
One of the obvious choices for the more conservative investor is of course property. The more investors entering our market the more of a positive flow on effect to others trading in the market – so again if you were thinking of holding off selling until the weather warms, it may be worth revisiting your strategy and chatting with us to see if we have a buyer ready for you now.
At this time of year we regularly field concerns regarding the fact that many vendors worry about presentation of their homes in the cooler months, however attention to some of the smaller details as follows should greatly assist in the saleability of any property over the coming months.
Until next time,
Maximising your returns over winter
Make your home comfortable and create a warm ambience. Turn on the heating, making sure it’s not too warm. Light the wood or gas fire place. Toss some throws on the sofa or over the back of an inviting armchair.
If the property is vacant think about getting it styled, not only will the furniture improve the room proportions and warmth, it will look great in photos and on inspection.
Let the light in, or create some. Pull back the curtains and the blinds to let as much natural light in as possible. Wash/clean the windows and skylights. If a room has few windows or little natural light ensure the furniture coverings are light and place lamps or spotlights in strategic places to accentuate art or pieces of furniture.
A beautiful vase of flowers never goes amiss.
Legislation update for pool owners - NSW Swimming Pool Registration
By Julie Hallahan, Property Manager
In May this year the NSW Swimming Pool Register went live enabling homeowners to register their backyard swimming pools.
The registration must take place online prior to 29 October 2013 or fines may be applicable.
Concerning our landlords and potential vendors, it is important to note that in addition to registering your pool online you will need to provide a certificate of compliance before being able to lease or sell a property with a pool – this change to the legislation will come into effect by 29 April 2014.
Before a compliance certificate can be issued, your pool will need to be inspected by your local council or one of their approved contractors. Under the new legislation, councils will need to organise a pool barrier inspection program prior to the end of October 2013.
Currently the City of Canada Bay Council has a pool safety checklist on their website to help you understand whether your pool complies. At the moment the website states that application for compliance certificates cost $70, however this may change once their program is established in line with the new regulations.
To register your pool visit: www.swimmingpoolregister.nsw.gov.au and they will email you the appropriate paper work.
To familiarise yourself with compliance specifics so there are no surprises at your inspection we recommend you visit www.canadabay.nsw.gov.au/forms and read the factsheet on private pools.
If you have any queries concerning how your pool ownership may affect a future rental or sale of a property please contact one of our agents directly.
Contact Julie Hallahan on 0411 710 888 or email email@example.com.