“If there’s 2 words to describe the present market, it’s random and erratic”. You could have one house that’s getting lots of interest and competitive bids and selling reallly quickly, while a similar property down the road is getting no attention and languishing online for a couple of months. There’s no logic to it.
In Byron Bay at the moment, in postcode 2481, we’ve had a price drop this calendar year of 5.3%, so if you add the .8% that we experienced last year, we’ve come off the highs of late 2017, early 2018 of about 6%.
Assuming nothing random happens, I expect we are going to be plateauing for a while and maybe see some price growth back in the market in the Spring or early next year.
Micheal’s advice for sellers
Make sure you get really good quality information before going to list. People are being puniished in this market if they’re over-listing and expecting too much for their property.
Micheal’s advice for buyers
Do you own good quality research if you need or get a buyers agent if you can. If you are lucky in the right place at the right time, make a gambit bid or negotiate a good price on a property because there are some deals out there.
If you think hiring a professional is expensive, try hiring an amateur
Here is a video blog that gives some insight into the local property market. I will intend to do this every 6 months. Hope you enjoy it and feel free to share it with your friends, relatives or anyone interested in the Northern Rivers real estate market. Please click here.
How do you value a view – a buyer’s agent’s perspective
This is a good question that often comes up during my inspections. Since a view is a very subjective thing how do you put a value on it? Lots of people value a view and clients think its important.
Michael Yardney is a property commentator who has put a bit of thought into quantifying it. His formula is this: unobstructed view from a medium height add 9 -12%. Unobstructed view from a high elevation is worth 15-25%, while an unobstructed water view is 30-80% increase in value.
This is an opinion mainly for a city dwelling. Here is my estimation in our area: Good elevation with rolling green rural views is worth another $100-200K. Rolling hills with Ocean glimpses is worth an extra $200-$300K, while unobstructed ocean view would be worth at least $300-400K. The last figure also assumes a short distance to the beach. Also worth money is privacy, with little neighbourhood properties in view, as well as no road noise.
Man builds house for $1,000
A near-homeless man built his own house in Tasmania for less than $1,000. He is completely off the grid and used only found and recycled materials.
“In architectural terms, what they call this now is ultra lightweight construction and adaptive re-use. But for many years, people who build their own homes have been calling it building with stuff you find.”
Rob said he would never of had the funds to pay council fees and would be living under a bridge if he did not do what he did. “The skills and the networks it’s given me, the satisfaction it’s given me, it’s absolutely unbelievable. Certainly better than a $250,000 mortgage,” he says. “I did four years of manual arts at school, I’ve worked extensively on construction sites. Plus, a simple house is very simple. I think building your own home is one of the most fantastic things you can do for your life and for your family.”
“Rob” wishes to remain anonymous as the property is unapproved and without any council DA. See the original story here at ABC News.
Lost In Byron
The story of missing Belgium backpacker, Theo Hayez, is a complete mystery. If you subtract fowl play, which is unlikely, the only other possibility is he fell off the cliffs at the lighthouse and his body was then swept out to sea. These things are not good to speculate on as anything could have happened. But the reality is there are kids are over the fence and exploring in the national park there all the time. A local lad came to grief doing that not so long ago. There is even a campaign to fence off access to the cliff, which will be a shame.
Byron Agent Pleads Guilty
The luxury real estate agent Nicolette van Wijngaarden has pleaded guilty to real estate trust fund fraud. She will be sentenced next month at the Sydney Downing Centre.
One of the vendors caught up in the messy collapse in February 2018 was fashion designer Collette Dinnigan. Also entangled and left owed wages and commission were local agents, Denzil Lloyd now with First National Byron Bay and Gary Brazenor, now with Byron Shire Real Estate.
This month’s market watch is a video blog. Every six months I give an overview of where the market has been or is heading. Please go to the link here to view.
And Another One Goes to Jail
To give more context to the above story, a Melbourne agent, Truc Thanh Le Nguyen, also known as Judy Nguyen, pleaded guilty to 11 counts of wrongful conversion of sales deposits. Ms Nguyen transferred from a trust account just over $800K for her personal use. Her husband and co-director, Joseph Ngo, was last year sentenced to five years jail. Mr Ngo was a drug addict and misappropriated $6.4 million from the office’s trust accounts. He spent over $2 million of that on clothing, jewellery and drugs, including ice.
Beware Dodgy Buyer’s Agents
More context still and highlighting the difference between a real estate agent and a buyers agent: The Real Estate Buyer’s Agent Association (REBAA) is on a mission to differentiate between trained experienced Buyer’s Agents and fly-by-nighters. While some buyer’s agents are licensed buyer’s agents, they may be acting on behalf of sellers AND buyers. This means that an agent claiming to be a buyer’s agent may in fact be working for a vendor or a developer at the same time and accepting payment from both sides.
We encourage buyers to ask their prospective agents, “Are you licensed and are you an exclusive buyer’s agent?” REBAA is Australia’s largest industry body of accredited buyer’s agents. All qualified Buyer’s Agents in each state are listed on the REBAA website. #lookforthelogo
Remember: If you think its expensive hiring a professional – try using an amateur.
Happy Birthday Enova
Local energy provider Enova is celebrating its third year of life. Even with some heavy headwinds in the renewable energy sector, Enova is going from strength to strength. Anyone can switch to a locally owned and community run electricity company just go here. You do not need to solar panels on your roof to be a part of Enova. Go here to switch your power provider.
Best of Sri Lanka Tour is Back
Here at BPS, we also have a side project called Best Of Sri Lanka Tours. Twice a year, principal Michael Murray, leads small groups to this beautiful but troubled Island. Sri Lanka’s economy is partly dependent on tourism. Australia has now dropped the travel warning after the horrific Easter terrorist attacks. This makes it a good time to go as you can get a good deal. BoSL has been able to negotiate some excellent hotel and travel rates if any of you are interested to going the September tour – 11 days for $2300. More info here.