Posted in Blog on 19th October, 2017 | No Comments »

The Micro and Macro


The best place to begin is with the big picture, and for this exercise that big picture is ‘Interest Rates’. Behind the decision to keep the interest rates at their current level is the RBA’s view that the overall market is softening in the Melbourne and Sydney markets. Corelogic reported that this month has been the first decline in dwelling values in these markets since May last year. When this occurred May 2016, it was met with a cut to the cash rate in May and August of that year at which time investment growth accelerated.


No such life line will eventuate this time, and in all likelihood as quoted by corelogic, we will continue to see the trend rate of growth easing across the Sydney and Melbourne markets. While the outlook for the domestic economy has improved, growth in wages and inflation remain subdued. Additionally, a cooling housing market should ease some of the pressure on the reserve Bank to push the cash rate higher.


Why this is relevant? There is a common held view that the Geelong market follows the Sydney and Melbourne … Read more »

Posted in Blog on 19th September, 2017 | No Comments »

Gen Y, The Property Market and The Bank of Mum & Dad


Those born between 1981 – 1994 are aptly known as Gen Y, and they are a large percentage of home buyers. One thing that we hear frequently from parents as property prices increase is ‘how are our kids going to afford to buy their first home?’. The belief is that Gen Y are more interested in travelling, an active social life and some members of the older generation feel as though Gen Y have unrealistic expectations and want their first home to be their dream home.


Despite affordability concerns the Gen Y demographic are leading way in property investing. How they are doing this creates a proven pathway and strategy for those who are actively looking to do the same. One of the growing strategies is ‘rentvesting’, which refers to those individuals who purchase an investment property in a location they can afford, while renting in a suburb they wish to live in. Aside from owning a property there are several key benefits to this strategy which include; lifestyle, flexibility, and tax benefits. Lifestyle benefits include leasing a property closer to work, … Read more »

Posted in Blog on 16th August, 2017 | No Comments »

To Hold or Not to Hold?


The following information is drawn from an article in the ‘Maverick’ newsletter prepared by BMT tax depreciation. It relates with a high percentage of our market place who are fortunate enough to be in a position that allows them to hold their current property and offer it for rent, and then purchase a new property to call home.


The Maverick states that a recent analysis of schedules prepared by BMT Tax Depreciation highlighted that 22% of schedules were for primary places of residence (homes) which the owners turned in to rental properties. This demonstrates a popular trend occurring in the residential market, in which a significant number of home owners are recognising the additional value of renting out their home rather than selling it.


There are many reasons for this trend. Some home owners may need to temporarily relocate, with a plan of returning to their home. There could also be external factors or events which create a temporary peak in rental demand, causing home owners to take advantage of the higher rental yield.


The most common reason is usually due to the prospect of long term capital growth along … Read more »

Posted in Blog on 13th July, 2017 | No Comments »

Make the most of your Annual Financial Health Check

This time of year is great for many. The end of the financial year is when many get their annual financial health check. They look at what they have earnt for the year, and wonder ‘what have I spent my money on?’, others will save their tax return and put it towards the deposit for a home purchase, and it is also the ideal time for an accountant or financial advisor to pin you down and put an investment strategy in place. Property investment is not just limited to a ‘rental’, property investment summarises a first, family or new home for the owner occupier as it will form the catalyst for further investment strategies as you gain equity in your property. Investment encompasses a private rental property, property within a family trust or Self-managed super fund, holiday or short-term rental, and speculative investing for land banking and longer term development opportunities.
Implementing a plan or strategy may seem complex, however, it does not need to be. We see the largest percentage of buyers implanting their own process, which is called I may be generalising … Read more »

Posted in Blog on 2nd June, 2017 | No Comments »

The Budget will have a Positive Influence on the Geelong Market


Federal budget hype always creates some unease in the market place, causing speculation and hesitation. I have tried to provide an insight in to how this year’s budget will influence Geelong’s property market.


Geelong is the anticipated recipient of close to 20% of the $516 million budgeted for regional rail maintenance and upgrades to the Geelong and Warrnambool lines. The first stage is the duplication of tracks between South Geelong and Waurn Ponds, with a future line to Torquay. The first stage will have a strong influence on the Armstrong Creek Growth precinct, Marshall and the Waurn Ponds housing markets. Armstrong Creek, Warrililly, Warrilily Coast and Armstrong estates are on the South Side of Geelong and the 20-minute drive to South Geelong or the Geelong Station restricts the desirability of living in the new housing estates. The result of increased train services brings these estates closer into town, offering an affordable housing alternative, increasing buyer desirability which will have a positive influence on pricing and demand.


15 local primary Schools will be the recipients of a combined $21million, which will be utilised to upgrade and … Read more »

Posted in Blog on 5th May, 2017 | No Comments »

Some Welcomed Incentives for First Home Buyers



July 1st brings first home buyers some welcomed incentives. The initiative is 2-fold and offers advantages to those purchasing existing homes, along with new builds. It will give first home buyers a helping hand, by reducing the upfront costs of purchasing a home.  The exemption and concession are applicable to contracts signed from 1st July 2017, not for homes purchased before and settling after this date.

How it works! First home buyers purchasing properties valued below $600,000 will be exempt from paying stamp duty. Purchases between $600,000 and $750,000 will receive a concession on a sliding scale. The first home owners grant will be increased from $10,000 to $20,000 for new house purchases in regional areas, the City of Greater Geelong is classified as a regional area. This allows for new home builds and purchases of values up to $750,000.

The criteria to qualify for the exemption or concessions will be closely policed by the State Revenue Office and they can be contacted on  13 21 61 for criteria clarification.

This announcement has a positive influence on the market both pre and post implementation. An increase in competition will occur … Read more »