Its amazing how much can happen in 6 months after a banking royal commission, two elections and a couple of interest rate drops and we are in a totally different market. What seemed to be a set-in downturn to the market in November 2018 and a correction that needed to happen, we saw prices in some of our local areas drop by up to 25%, now we have the curve moving in the right direction. We are now seeing the positive cycle begin again.
There is plenty of talk about a recession, especially overseas, at this stage that doesn’t look like it will worry us as much as the talk indicates. Our area is set to take massive advantage of this with our cheapies now between 350-400k presenting awesome value and new homes selling for 550-600k with a great rental return. In both of these options if there was a 20% deposit paid to avoid mortgage insurance, this would equate to loads of positive gearing opportunities.
First Home Buyers incentive scheme that arrives in January 2020 has allowed investors a bit of a head start which I think will be well received.
From the property management world, we need to keep an eye on vacancy factor as tenants have noticed a large amount of available properties at cheaper prices with the surplus in most places changing price between $10-$20 lower than the demanded price. For investors that don’t have their tenants locked in fixed terms, might be worth offering one with a slight reduction to keep tenants happy and in the property. Last month saw our tenancy team perform a record month with 56 leased properties. We are so delighted to have this strong department doing these wonderful numbers with great tenants and this is highlighted by strong databases, great time in the local area and fantastic relationships with both landlords and tenants. We also believe the tenant of the year program which is loved by both tenants and landlords alike is a big reason for the high demand to lease Wiseberry properties.
A massive congratulations and thank you to you all and our community for the huge support that last week saw Wiseberry Heritage Group winning Best Real Estate on the Central Coast at the Local Small Business Awards. The awards have had a 12-year sabbatical on the coast and we must say we are as delighted to win this award for the 5th time as the very first time all the way back in 1997. We could not have won this award without your continued support and constant referrals we have in place.
Where do we see the market from here? My personal belief is I think for our investors it’s a great time to buy, if you want to trade or buy a better property to live in; this is also great timing as we feel the banks are now become open for business again.
Our team recently supporting Jeans for Genes Day and had a ball doing so.
Author: Darin Butcher