Hi Everyone
Welcome - I hope you will have a happy and prosperous 2009.
It's good to be back at work and glad we have survived another silly season. The market is in a very interesting place at the moment with lots of things to talk about.
Who wants to be on TV?
"Location Location Location", the successful UK cable TV show is coming to Oz. The show, currently on Austar's Lifestyle channel, is looking for volunteers who are moving here from the UK. They will film the process of searching for property here and then making the move from UK. If anyone is dubious about the advantages of using a buyers agent then you should watch this show. If you know of anyone who is moving to Byron Shire from the UK and they are not the shy retiring types please contact me and I will put them in touch with the production company.
Are Property prices coming down #3.
Yes it seems they are - going down that is. Buyers with short arms and long pockets are out there being very picky and demanding. Like any market - if a buyer thinks they can get something cheaper if they wait a while, they will wait.. February is usually the best month for sales so those properties not sold by the end of summer may have a long cold winter. I suggest if you do not have to list definitely stay out of the market for now. If you are a buyer (besides needing a good buyers agent) you need to know how to negotiate some of the distressed sales coming up.
But it is not the same across the board. It is very diverse depending on price range and location. I still believe Byron Shire will remain stronger because of the demand and lack of supply. Many people want to move here and live regardless, or even more so, in an economic downturn. The bottom end of the market ($550k and under) is OK because first home owners are entering the market because of the grants and low interest rates. Top end has almost no pulse at all. There is a property in Belongil Beach that listed last year at $5.5M and is now listing again at $3.5. That is a mark down of 35%. I have never seen so many properties listed between $1M and $1.5M - there is an abundance of property in that bracket.
Tips for sellers
It is interesting viewing properties that people have built, renovated or landscaped themselves. They have an emotional attachment to the place and that is understandable but that does not translate or register with potential buyers. If you need to liquidate then get good advice and list at a price that fits the present market value. There are many seller's out there who have their head in the sand and have an inflated value on their property. That rock wall and water feature that you laboured over last summer may have immense value in your heart but, unfortunately, translates very low in the buyers list of priorities.
Hot Properties
As promised here are a few (just a few) of the many good buys out there:
Myocum
I know of two excellent properties in Myocum (10 minutes to Byron) - usually very hard to get.
1. Distressed sale, 12 acres, has power and sewerage to site and an approved studio already built. Will go to Mortgagee Sale soon so make an offer somewhere in the mid $500s.
2. Myocum 15 acres with great rural views. 2 small single bedroom dwellings for low $700s
Ocean Shores
3. Waterfront house on a canal for $550K
4. A number of good 3 bed houses in Oceans shores under $400K
Reduced rural properties:
5. Auction coming up soon in Bangalow of 5 acres with a few messy structures - will go very cheap.
6. A house on small acreage near Federal with fantastic views - empty for over a year and has dropped its price twice.
How do you know if you have a good finance broker?
This is an interesting question - easy to answer but hard to know in advance. You have to know if your broker is working for you and not for themselves and the fattest commission? Of course there are other factors like service, diligence, confidentiality, communication skills, etc. At present commissions vary quite a bit and many banks are cutting the amount they are paying to independent brokers. Ouch! This means that a broker has the option of providing for the client the best loan or providing for themselves the best commission. Unfortunately I cannot tell you that bank XYZ is the best as it keeps changing. You need a good broker to find out for you.
And another thing ....
Many people are of the wrong impression that if you want a loan from a bank you go direct and brokers only provide loans from the non banks - Aussie, Mortgage Choice, etc. Well independent brokers access loans from all major banks as well at either the same rate and sometimes better. You also get a lot better service from a broker. As opposed to a couple of quick meetings across a desk. The four major banks are at present giving better rates as they can access their own deposit funds instead of buying money on the open market but this will not last forever.
New Website
www.byronpropertysearch.com.au is having its website revamped. One of the outcomes of this is the newsletter will now be coming to you via a newsletter provider called Constant Contact
The newsletter will be similar content but look different but the main difference is that you will have to register with the mail out organisation Constant Contact to keep receiving it. I will be making just a few more newsletters in this format as well but please sign up with Constant Contact when asked in the next newsletter.
Thanks and thats all for now and see you next time.
Michael