January 31 - Rich pickings for canny buyers
The Australian Financial Review - please click on the image to read the full story, including comments from Michael O'Brien, ACTON Mandurah
The West Australian - please click on the article to read the full story, including comments from ACTON Managing Director Graeme Baxter
The Sunday Times - please click on the image to read the full story
Following a strong close to the year, ACTON’s Managing Director Graeme Baxter says he feels very optimistic about the future of the market.
“Our December sales figures were very strong, as were the sales for the December quarter, and if they are any indication of where the market is heading in 2012, then we are certainly going in the right direction.”
ACTON’s December sales were 39.13 percent higher that sales in December 2010. They were also slightly higher than sales in December 2009.
Mr Baxter says it would be a little early to pop the champagne and announce a market recovery based solely on a single month’s efforts, but the December results support an ongoing positive trend that became apparent in October.
“Sales each month since October have been higher than sales in the previous year and sales for the quarter were 23.4% higher than the same time in 2010. They have even exceeded sales for the 2009 October-December quarter,” he said.
“This trend suggests a turnaround for the market and reports from our Regions indicate an encouraging return of confidence from buyers. No doubt the interest rate adjustments in October and November have contributed to this, and the possibility of additional rate adjustments in the early part of this New Year is also encouraging buyers.”
Another strong factor driving the market is the very low vacancy rate in the rental market and the upward pressure this is exerting on rental values.
“Buyers are realising that buying their own home is a positive alternative to renting and investors are also attracted by reasonable prices and good returns,” said Mr Baxter.
“Overall I think the signs are good. The number of sales is increasing, buyer confidence is rising, prices remain reasonable and interest rates are low. Our economy is also performing well and the State’s population is growing – all are good indicators for 2012.”
Community Newspapers, Residential South - please click on the article to read the full story
Whether the market is running hot or things are a little bit slower, auctions are still the fastest way to sell a property.
The latest figures from REIWA show that for the June quarter properties sold by auction took an average of 42 days to sell, while properties selling by private treaty took 79 days. Auctions sell in nearly half the time.
“These support our experiences over the last six months,” said Graeme Baxter ACTON CEO.
“We are finding that fewer properties are selling under the hammer, but a good portion of these sell soon after the auction.”
Mr Baxter said people needed to remember that an auction was not a failure if the property didn’t sell on the day.
“An auction is more than just THE day, it is a three stage process with chances to sell before, on the day, and after the auction.
“In this market buyers seem to be holding off on auction day, but are more than willing to talk to the agent afterwards.
“The major benefit of auctions is that they create a sense of urgency, prompting buyers to take action and allowing sellers to reduce the protracted negotiation process often associated with private treaty sales.
“This sense of urgency, coupled with the more intense marketing campaign that usually accompanies an auction, ensures the seller is more likely to have a quicker result at the best possible price. This doesn’t mean a record price tens of thousands of dollars over the reserve, but the best price the market is willing to pay.
“Auctions will always be a strong sales method and looking at the latest figures, I believe it should be the method of choice for people looking to secure a quick, successful sale whatever the state of the market.”
New rules introduced by Landgate require people who are overseas at the time of the sale of their property to undergo a strict new identification process.
If you’re working or holidaying overseas when you sell a property you must take an original driver’s license, original passport and an original and current rates notice to an Australian Consulate and have a consular officer certify the documents and witness the transfer of land document sent to you by your conveyancer.
Once certified, and the transfer of land document has been witnessed, you need to send all the paperwork back to your conveyancer who has to sign a statutory declaration that they are satisfied that you have the right to sell the property. They will then have to send the original, certified copies to Landgate. Failure to provide the relevant documents will prevent settlement.
Tony Reeves, Managing Director of Currie & Reeves Conveyancing Services, welcomes the changes saying that they should go a long way to prevent the type of fraud we have seen in recent years.
“It is very important to make sure the seller has the right to sell the property and these changes should make it very difficult for someone to sell your property without your knowledge.
“Sellers do need to expect some possible delays in the settlement process, however this is a small trade off for their piece of mind.”
Mr Reeves suggests most delays are likely to occur as a result of the requirement for an original rates notice and access to a consulate.
“Getting an original rates notice may take time. Many people living overseas often have an agent manage their property. You need to rely on them to mail you the latest notice quickly – a fax or scanned copy will not do, it must be the original notice.
“Delays, and extra costs, can occur if you are in a remote area and cannot get to a consular office, or if the one nearest to you doesn’t provide that service. A client in Houston went to his local Consulate, only to be told they wouldn’t certify the documents, so he had to fly 1200km to Atlanta.
“You may also be charged to have the paperwork certified. Apparently the Consulate in the UK is getting up to 15 calls a day and is now charging £70 to certify documents.”
In addition to the new rules for overseas sellers, sellers within Australia now also have to complete a 100 point identity check with their real estate agent and conveyancer.
While not yet compulsory there are other actions being taken to prevent property fraud.
For example, the Australian Institute of Conveyancers recommends that all funds from the sale of the property are paid into an Australian account, rather than an overseas account.
Community News, Residential South - please click on the article to read the full story
The Sunday Times - please click on the article to read comments from Clinton Edwards, ACTON Mount Lawley
The Australian Financial Review - please click on the article to read the full story
Community Newspapers, Residential West - please click on the image to read the full story
The West Australian, August 20 - please click on the article to read the full story
Residential North, August 9 - please click on article to read the full story
The Australian Financial Review, July 16 - please click on the article to read the full story
The West Australian, June 23 - please click on the image to read the full story.
It's always hard to predict what will happen to the market, so many variables like interest rate changes and a Global Financial Crisis can affect market sentiment. However by looking back we can get some indication of where the market may be heading.
Based on ACTON's sales figures the market experienced a downturn in 2010/2011, with sales 9.56 per cent lower than in 2009/2010.
This seems to contradict recent indications of a gentle recovery and improving market sentiment. However, when you break the figures down further you get a clearer picture of the changing market.
Sales were robust in the first half of the 2009/2010 financial year. However they fell from January to June 2010 and again from July to December 2010.
We seem to have experienced the worst in 2010 and through 2011 we have seen sales steadily improve. Figures have varied from month to month, but the overall trend has been positive. We have had some of the highest monthly results since 2009, and since February 2011 the monthly sales have consistently surpassed the corresponding monthly figures from 2010. All these are positive signs of an improving market.
Confidence in the market has increased, most likely as a result of continuing interest rate stability. The Reserve Bank of Australia has left interest rates unchanged since November 2010. Some analysts are predicting rates will remain stable until 2012 and this will have a positive effect if it happens.
While sales are improving in all price brackets, we are seeing the strongest increases for homes priced under $600,000. Sales here indicate that first homebuyers are taking a more active role, and this will have a flow on effect to other areas of the market.
Investors are also showing greater interest, with many well-priced houses offering great investment opportunities.
A tightening of the vacancy rate and slight increases in rents are also making investment attractive. However, huge capital gains are not expected in the short term.
Where to from here?
The truth is no one can predict this with any accuracy. A couple of interest rate rises could shock the market, and the issues experienced by Greece and similar economies may see a second GFC. Or we could have rate stability and see sales continue to improve.
There is no harm in buying or selling in the current market. Yes, there is a large number of properties for sale, which is an advantage for buyers, but even if you have to sell at a lower price than expected, you can then expect to buy at a lower price. The best advice for sellers is to price your home realistically and be prepared for it to take some time to sell. Buyers - make sure you buy what you can afford, can cope with any potential interest rate rises, and have some money put aside for emergencies.
The Sunday Times, July 3 - please click on the image to read the full story.
The West Australian, June 25 - please click on the image for the full story.
ACTON's May sales figures continue to following an improving trend, with sales slightly higher than the bumper figures experienced in February.
Sales were 11.31 per cent higher than in April, but a staggering 65.49 per cent higher than the same time last year.
"The huge increase on 2010 figures is a good indicator of overall market improvement," said ACTON Managing Director Graeme Baxter.
"Sales are improving slightly from month to month, but when we look back we actually see how much things have improved.
"People are still feeling uncertain about the direction of the market, and everyone is concerned about the two possible interest rate rises predicted for later in the year, but the big picture is positive."
All price brackets improved on 2010, with the largest increased seen in the under $400,000, $400,001 - $600,000, and $800,000 - $1 million price ranges.
"After the boost to the First Home Buyers Grant ended there was a dramatic fall in sales in the lower price brackets. Now we are seeing strong improvement, which will flow on to other areas of the market," said Mr Baxter.
"The signs are encouraging and we hope strong employment conditions and stable interest rates will continue to support the market’s recovery."
The West Australian, June 18 - please click on the image for the full story
On Thursday May 26 the ACTON Ladies group settled down to enjoy a Parisian High Tea in support of Australia's Biggest Morning Tea.
Held at the Peninsula Tea Rooms in Maylands, the event raised funds for the Cancer Council.
ACTON have supported the Cancer Council for seven years and this is the third year they have been involved in Australia's Biggest Morning Tea.
"Normally our offices hold individual events, but this year we thought it would be lovely for the ladies to get together and enjoy themselves," said Managing Director Graeme Baxter.
"They were very generous in their support, raising $400 through donations at the door and a raffle. ACTON Corporate will match their efforts, and donate a total of $800 to the Cancer Council."
ACTON Applecross will also hold a Morning Tea at their office in Kearns Crescent, Applecross on Friday June 17 between 10:00am and 11:30am. Everyone is welcome to come and have a cuppa and enjoy some tasty treats prepared by the Applecross team.
If you are unable to visit one of ACTON's offices, you can go to the Cancer Council’s website biggestmorningtea.com.au and make a donation online.
John and Rebecca have been trying to sell their home for a couple of years. While they have received several offers, none has met their expectations and they are unwilling to reduce their asking price. They would like to buy a new home, but have been waiting for their current home to sell. What are their options?
They could keep waiting for the right offer. Their second option is to take the property off the market and wait for conditions to improve. This may take some time.
However, John and Rebecca don't want to wait any longer, so their third option is to buy a new home and rent out their old home.
"Many people assume that you need to sell your old property before the bank will lend you money for a new one," said Vicki Dick of LoanCom Australia.
“If you intend to sell the old property fairly quickly you may consider using bridging finance, but if a quick sale is unlikely you may be able to use the equity in the home to finance the loan for a new property.
“Everyone’s financial situation is different, and this option may not work in all cases. The amount of equity you have in the old home, plus the rent you will receive, plus your income all combine to determine the amount you will be able to borrow.
“You also need to be aware that when you eventually sell the old property the lender is likely to insist that the proceeds be used to reduce the new loan as the old property can no longer be used for security on the new loan.”
Before taking any steps Ms Dick suggests you speak to an accountant or financial advisor.
“You will need to understand the tax implications of using your old residence as an investment property. For example as the property is now earning income and will no longer be your ‘main residence’ it will be subject to capital gains tax when you sell.
“Therefore you should get a valuation done on the property so that capital gains commitments start from when it became an investment, rather than when you actually bought it.”
If John and Rebecca are unable to borrow enough to buy a new home, their fourth option is to rent out their old home and rent a home in the area they would like to live in. This would allow them to live in their preferred area, while keeping their old home as an asset. They will then be able to sell it in more favourable conditions.
A benefit of renting is that they will be able to keep their old property as their ‘main residence’ for up to six years and avoid paying capital gains tax if they sell in this time frame. To be on the safe side they should still get a valuation done when they move out and also at the six year mark if they still haven’t sold the property and decide to keep it as an investment.
For more information about finance contact LoanCom Australia on 9386 9211
The latest figures from the ACTON group suggest the market is holding steady.
Sales figures for February, March and April have only showed slight variations from month to month. April sales were up 2.41 per cent on March, but were slightly lower than February figures.
All sales for the last three months have been higher than for the corresponding months in 2010, suggesting an overall improvement in the market.
“We’ve also seen sales increase in all price brackets over the last 12 months, which is another positive sign,” said ACTON Managing Director Graeme Baxter.
“And while the 2011 figures for each price bracket vary from month to month, the fact that the total sales figure is holding steady suggests the market is fairly stable, which is a good sign for both buyers and sellers.”
In the last month, the biggest growth in sales was in the $0-$400,000 and $1 million to $5 million price brackets.
“It is good to see both areas of the market performing well. The top end was hit hard by the Global Financial Crisis and is well on the way to recovery. In fact we sold 33 percent more properties in the top bracket than in April 2010,” said Mr Baxter.
“It’s also important for the cheaper end of the market to see growth, as sales here free people up to buy into the next price bracket, which again flows into other areas.”
The steady figures and good results over all price brackets suggest that people are able to find affordable property whatever their budget.
“The figures show a stable market where people have the ability to negotiate to pay a reasonable price, unlike a few years ago where you had to compete with other buyers and, in some cases, pay above market price to secure a property,” said Mr Baxter.
“Having a large number of properties for sale does make it harder for sellers, who are all competing with each other, but it is a great benefit for buyers who can choose from a greater range of properties at a variety of prices.”
Australian Financial Review - May 6
ACTON South West Director Brian Moulton is quoted in this story about the availability of vineyards. Please click on the image for the full story.
Australian Financial Review - April 21
Brian Moulton, Director ACTON South West was quoted in the following story on Chinese interest in Australian vineyards. Please click on the image to read the full story.
Communty Newspapers - 19 April 2011
THERE was no fooling anyone on April 1 for the team at Acton Southern Suburbs, who expanded their Kardinya head office to a second branch at Cockburn Gateway shopping centre.
Acton Southern Suburbs director Darren Berley said the former Raine & Horne office had been identified for having a fantastic group of real estate experts who were already successful in their own right.
“The Kardinya office has been here for 24 years and we wanted to expand on the growing team and get into the Success/Gateway belt where we see massive opportunities in a rapidly developing area,” Mr Berley said.
“Our new colleagues have been excited to join the group and have renewed enthusiasm to be able to bring an unparalleled level of service to their clients.
“We believe that clients will benefit from the increased exposure of their properties through two offices and almost 30 staff members working together as one team.”
Mr Berley said a great deal of work had gone into the expansion, including changing shop and property signage, refreshing internet listings, moving to new software, notifying clients, additional staff training, organising data and phone cabling plus ordering new business cards and name badges.
Acton Southern Suburbs now services all areas between Leach Highway to the north and Rowley Road to the south.
“We look forward to meeting residents in the area and assisting them will all their real estate needs,” he said.
For any real estate inquiries, phone the Acton Southern Suburbs team on 9414 4444 or 9331 9700.
ACTON’s expansion continues with the opening of a second office in its Southern Suburb region.
Directors Ryan Thompson and Darren Berley say their new branch in Success will allow them to continue to provide a superior level of service in a rapidly expanding area.
“Our region is quite large, running from Kardinya down to Hammond Park and Aubin Grove. We needed more salespeople to adequately cover all the suburbs in the region and we felt it was better to have a base in the more southern suburbs, rather than just increase the sales team at our Kardinya office.”
Ryan and Darren have purchased Raine & Horne Success, owned by local agents Peter and Heather Sampson. They both will continue to work in the business, with Heather focussing on sales and Peter taking on the role of Office Manager.
“We’ve wanted to move into the area for some time, but have just been waiting for the right opportunity,” said Ryan and Darren.
“Peter and Heather share our goals and aspirations for real estate in the southern corridor. They have been working in Success and the surrounding suburbs since 2003 and they know the area well. They have built a strong, successful team and we feel they will be a great asset to ACTON.”
Success, Atwell, Beeliar, Hammond Grove and Aubin Park make up a fast growing region, with room for more expansion. The area is very attractive to families, with a range of schools, good transport to major locations, and constant improvements to infrastructure – such as the Cockburn Gateway Shopping City complex.
“These are reasonably affordable areas, and the train and freeway make them very accessible. They have a high appeal to young families, and as a result there is a high turnover of properties when people upgrade as their family grows,” said Ryan and Darren.
The new ACTON Southern Suburbs - Success Branch is located at Unit 9 Cockburn Gateway Shopping Centre, 824 Beeliar Drive, Success.
ACTON’s figures for March show continued market improvement.
While the number of sales was marginally below the bumper February result, they were still higher than previous months and higher than the same time last year.
Higher price brackets showed the greatest improvement.
“Sales were up strongly in the $800,000 to $1 million and $1million to $5 million price brackets,” said ACTON Managing Director Graeme Baxter
“Previous strong sales in lower price ranges have allowed people to upgrade and we are seeing the flow on effect in the higher brackets. People are feeling more confident, interest rates have been stable for a few months, and are tipped to remain that way for some time. Price growth has slowed and people are feeling that property is more affordable.
“Our offices are still saying that price is a big factor in making a sale. Those properties that are realistically priced will sell within a reasonable time frame. Successful sellers have adjusted their expectations and are achieving the desired result.”
The quarterly sales figures are also positive. The number of sales was 11.29 percent higher than the December 2010 quarter and slightly higher than the 2010 March quarter. Quarterly sales have been steadily increasing over the last 12 months.
The West Australian - please click on the image to view the full story
The WA property market is showing more positive signs, with the number of suburbs with million dollar median prices rebounding after a 28 per cent drop in 2009.
The latest figures from RP Data show that WA had 26 suburbs with over $1 million median prices in 2010. Peppermint Grove, Dalkeith and Cottesloe were in the top 25 Australia-wide, with Peppermint Grove topping the list above Sydney’s Vaucluse, and Dalkeith placing fourth.
“Perth residents have always had a love affair with properties along the river and near the beach and this is reflected in the value of those suburbs,” said Graeme Baxter, Managing Director of ACTON.
“Houses in these areas are in demand and tend to be a good investment for the future. Strength in these areas also has a flow on effect to surrounding suburbs like Nedlands, Claremont and Cottesloe, which can only benefit property owners.”
Mr Baxter said that the RP Data figures suggested the market outlook was improving.
“To have two WA suburbs in the Top 5 across Australia shows the strength of the local Perth market. To see the number of suburbs with million plus medians increase over the last year suggests confidence is returning to the market and people are seeing value in these premium suburbs.
“This result doesn’t indicate that the market is becoming less affordable, the figure is only slightly higher than the 2008 figure of 25 suburbs with million dollar medians. What it does indicate is a recovery in a sector of the market that was hit hard by the downturn,” said Mr Baxter.
The West Australian - please click on image for full story.
ACTON’s sales figures for February indicate the start of a positive comeback.
The number of sales was up 39.85 per cent on January and 20.78 per cent on the same time last year.
“This is the highest monthly sales figure we have seen since October 2009. Considering February in only a 28 day month, the result could have been even higher. It is also the first month to exceed the previous year’s figure since January 2010,” said Graeme Baxter, ACTON Managing Director.
“To quote an old saying ‘one swallow does not a summer make’, we need to remember that it is early days and one very strong month does not indicate an ongoing revival. However early indications are that March will also be a positive month.”
The number of sales was up in all price brackets, with the greatest increases being seen in the $600,000 to $800,000 and $1 million to $5 million categories. Sales over $5 million also improved.
“We have also had one of our best months for property management, with many offices reporting vacancy rates below 1 per cent, said Mr Baxter.
“The signs are positive and we will have to wait and see where the market takes us. Market confidence is reasonable following a period of stable interest rates and we can only hope that this continues.”
Recent negative comments about auctions by REIWA President Alan Bourke have caused concern among ACTON agents.
"Our Group conducts a lot of auctions and with a lot of success. For Alan to say that auctions are a poor choice for sellers was extremely disappointing," said ACTON Managing Director Graeme Baxter.
"Auctions are simply another method of selling and in our experience auctioned properties tend to sell faster than those using the standard method of sale. Auctions have their greatest value in times of market uncertainty when it is hard to determine price. This can be when the market is booming, or even now when price growth has slowed and people are unsure what the market is willing to pay."
According to Mr Baxter auctions have several advantages.
"Firstly auctions have a short, sharp marketing campaign designed to get the property noticed. Secondly it gives buyers a deadline. If they are interested they need to come to a decision quickly. They cannot wait around for a few months to see if the property is still on the market."
While auctions are very popular in the Eastern States, the WA market is a lot more wary. Unfortunately there are a lot of misconceptions about auctions in the marketplace.
"Perhaps the biggest misconception is that if the property doesn't sell under the hammer the auction was unsuccessful," said Mr Baxter.
"Auctions are actually a three stage process and buyers can make an offer at any time before the auction, by bidding on the day, or after the auction if the property hasn't sold.
"If people feel uncomfortable about bidding at an auction they can make an offer before the day, this is particularly useful if they need to make an offer subject to sale or finance. Buyers can also wait to make an offer until after the auction, but this is reliant on the property being passed in and they may miss their opportunity."
Please click on image for full story.
Emma Proud of ACTON Dalkeith took on the Rottnest Channel Swim in memory of her friend Brockie who recently lost her struggle with depression.
“Brockie and I used to swim together at Challenge Stadium, she was a beautiful person, inside and out, with a gorgeous smile and wonderful laugh and we all miss her very much,” said Emma.
“Depression has touched many people’s lives, most of us have a friend or family member suffering from the condition and I wanted to do something to help raise funds to help combat this serious illness.
Emma has been raising funds for beyondblue: the National Depression Initiative, by holding a movie night and collecting donations. She is close to her $5,000 goal.
Swimming in a team of four Emma completed the 19.7km course in 7 hours and 52 minutes.
“It was a tough swim with a third of the solo swimmers pulling out. There was a strong current pushing the field south and at the end there was a northerly wind making the water choppy and this definitely added to our time,” she said.
“However it was great to swim in a team and we had a fantastic time - I even saw three huge stingrays! At the end I said this would be my last swim, but I think I’m ready to tackle it once more.”
The West Australian - please click on image for full story.
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