PK’S Sydney Property Market Update

November / December 2011

1. We Are Now Entering the Next Upward Phase
2. PK’s November / December Sydney Property Property Market Update
3. PK’s November / December Sydney Property Market Video Update
4. PK’s Hot Tips

Peter Kelaher

Managing Director

We are now entering the Next Upward Phase

After being the principal of PK Property for just on 15 years now I know the telltale signs of when the property market is about to enter it’s next capital growth cycle. One of the main signs is the volume of telephone enquiry we receive at the office, but most of all it’s what that phone enquiry is saying to our buyer’s agents. The main theme over the last 6 weeks is that buyers are telling us that they think the time is right to buy now.
 
With variable and fixed rates available under 6% and the drop in interest rates this month plus further predicted rate cuts on the way, there is no doubt that the government wants to not only protect our economy but also stimulate it.

Other signs of stability moving forward are the figures of the recovery in housing finance volumes for September which rose to its highest level since back in the boom days of 2009.
 
With unemployment rates staying steady over the past month of October, and Westpac reporting consumer sentiment surging 6.3% in November to 103.4 points which is above the long term average Australia is looking in tip top shape compared to the rest of the world.
 
Over the recent weeks we have purchased well over $30 Million in property and still going strong, these are just a few properties purchased of late. Please note due to confidentiality reasons we can’t publish some of the properties we have purchased.  

23/120 Burns Bay Road Lane Cove $536,500
asking $550,000
 
3 Grosvenor Street Wahroonga $1,910,000
asking $2,100,000 
 
10D/2 Bowman Street Pyrmont $2,500,000
asking $2,550,000
 
13/ 147 Bradleys Head Road Mosman $2,450,000
asking $2,550,000
 
3/68 Addison Road Manly $1,580,000   
asking $1,650,000
 
26 Young Street Redfern $760,000
asking $800,000
 
24 Patrick Street Willoughby
confidential
 
12 Grafton Street Cremorne $1,560,000
asking over $1,600,000
 
48 Dalton Road Mosman $1,625,000
asking $1,700,000
 
7/4 Paling Street Cremorne $620,000     
asking $650,000
 
3/26 Parriwi Road Mosman $1,550,000
asking $1,700,000
 
1a Harris Street Willoughby $1,065,000
Purchased prior to auction asking over $1,100,000
 
96 Newman Street Newtown $915,000
asking $1,025,000
 
7 Baringa Avenue Seaforth $915,000
Asking $930,000+
 
90/362 Mitchell Road Erskineville $425,000
Asking $425,000
 
9/23-31 Whistler Street Manly $760,000
Asking $785,000
 
3/86 Kurraba Road, Neutral Bay confidential
 
32 Ronald Ave, Greenwich $1,390,000
purchased at auction
 
4 Sirius Cove Rd, Mosman $2,630,000
asking $2,750,000
 
30 Valerie Ave, Chatswood West $950,000
Prior to auction saving $70,000
 
4 Laguna Rd Northbridge $1,950,000
asking $2,200,000+
 
14 Drynan Street, Summer Hill
confidential
 
52 Holmwood St, Newtown $760,000
asking $780,000+
 
4 Sirius Cove Rd, Mosman $2,630,000
asking $2,750,000
 
30 Valerie Ave, Chatswood West $950,000
saving $70,000
 
4 Laguna Rd Northbridge $1,950,000
saving $250,000

18 Ingleside Road Ingleside

confidential

3/62 Carter Street Cammeray

confidential

 PK’s November / December Sydney Property Video Market Update 

Click the image to view the video

PK’s Property Market Predictions for 2012

Unfortunately stock levels for spring were nowhere near as high as all agents expected therefore competition has been stronger.
 
Heading into 2012 we will be seeing a drop in interest rates to shelter us from the global turmoil and in turn will fuel the property market to the tune of around 10% over the next twelve months in certain price brackets and segments of the Sydney market.
I believe the aussie dollar will also come down to reasonable levels and therefore stimulate the expatriate market buying back into Sydney.
 
I also think that rents are peaking and that landlords will see smaller rental increases moving forward because more people will be buying now. But that just means for the investor smaller rental increases but stronger capital gains. 
 
 
All in all a great year coming up for the Sydney property market in 2012.

PK’s Hot Tip

From this time in November until first week of February it is no doubt the biggest bargain time of the year to buy but the only problem is a lot of the time you don’t have the choice of stock like you do in the middle of Spring. The reason it is a great time to buy is because vendors are wanting to move their properties before the end of the year, or at the latest early next year to just clean the slate and move on. Another reason is that people have bought before they sell in spring and are now under pressure to sell late in the season. 

If you would like to receive PK’s Sydney Property Market updates, hot investment tips and much more please click here Or call one of our buyers agents today on (+61) 2 9904-3444 or email us so we can help you find your next dream home or investment property for the lowest possible purchase price.

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If you are interested in building and diversifying your DIY super fund by purchasing property or just want an update on the Sydney Property Market – then you cannot afford to miss this free seminar. Seats are strictly limited so RSVP today. 
 

Build and Diversify Your DIY Super Fund Through Purchasing Property

Bradfield & Pritchard, Perpetual Private Clients, PK Property Search & Negotiators & Ray White Lower North Shore, invite you to attend an informative seminar that will provide you with essential insights into borrowing through your DIY super fund to acquire property.

By attending you will learn more about:

• How to purchase a property in your self managed super fund.
• How smart borrowing strategies can help increase and diversify your superannuation assets.
• Structuring a compliant superannuation borrowing arrangements that is tax effective.
• Future property hotspots – where to buy and where not to buy!
• How to identify an excellent investment property
• The new Residential Tenancy Act and the impact on landlords

Hear from the Experts…….

The Benefits and Risks of Borrowing Through Super
Presented by Kate Bowditch, Senior Financial Consultant, Perpetual Private Clients, providing successful Australians with tailored financial advice and wealth solutions for more than 124 years.

Sydney Property Market Update and Some Hot Tips on What Properties to Buy Through Your DIY Super Fund
Presented by Peter Kelaher, Managing Director, PK Property Search & Negotiators, Sydney’s leading buyer’s agents who has helped clients purchase more than $1.8 billion worth of property.

The Importance of Engaging a Professional Property Manager
CBD seminar presented by Bob Guth, Director, Bradfield & Pritchard. North Shore seminar presented by Peter Matthews, Director, Ray White Lower North Shore.
 
Dates:        CBD Wednesday, 1 June 2011
                    North Shore Tuesday, 7 June 2011
Time:         6.00pm for a 6.15pm start
                    7.45pm finish
                    Light refreshments will be provided
RSVP:        RSVP today as seats are strictly limited
Email:       marie@pkproperty.com.au
 
We look forward to seeing you.
  
If you would like to receive PK’s Sydney Property Market updates, hot investment tips and much more please click here Or call one of our buyers agents today on (+61) 2 9904-3444 or email us so we can help you find your next dream home or investment property for the lowest possible purchase price.

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PK’S Sydney Property Market Update

March / April 2011
1.  Market Kicking Along at a Steady Rate
2.  PK Property Market – video update
3.  PK’s Sydney “Purchasing Property Through Your Superannuation” Seminars
4.  PK’s Hot Property Tip
 

Market Kicking Along at a Steady Rate

I thought I would cover both March and April in one hit as the month of April is usually that little bit quieter because of school holidays and Easter.
 
In saying that, enquiry from clients to purchase property has been very strong over March and PK Property has purchased, or in the process of purchasing well over $38 million dollars worth of property for our clients. From stately homes in Killara, Turramurra, Mosman, Chatswood, Watsons Bay and Bellevue Hill to investment units all over Sydney to large commercial buildings on the Central Coast - it’s been busy.
 
Interest rates have been steady for 4 months now and we are finding that people are really making the move to upgrade because they feel as though it is more of a steady environment to do so.
 

With an unpredictable stock market and a rental market that still has a vacancy rate of 2% and looks like getting lower, we are also seeing investors jumping back into the property market as they see it to be a very safe place to put their money.

PK’s Sydney “Purchasing Property Through Your Superannuation” Seminars

Perpetual in conjunction with Bradfield & Pritchard, Ray White Lower North Shore & PK Property Search & Negotiators .

Perpetual, a well known Australian company that has provided financial advice to Australians for over 124 years will be teaming up with PK Property to show you the best way to purchase property through your Self Managed Super Fund (SMSF).
 
I have been involved in this space for many years now and have seen many many investors that have received the wrong advice in regards to not structuring a compliant superannuation fund when purchasing their investment property.
 
As far as I am concerned Perpetual is the only company that has this compliant structure right from start to finish.
 
Your accountant or financial advisor might very well tell you it’s all too hard and cumbersome to buy property in your SMSF, or charge you an arm and a leg to set it up and look after the ongoing audit. Trust me, it really is not that hard and can be extremely beneficial if executed correctly.
 
I must admit buying property in your SMSF is not for everyone, but if you have over $100,000 in your super fund you can’t afford to not be at this seminar, as the advantages and simplicity to buying property in your SMSF are too large to ignore.
 
I will be talking on ‘Property Hotspots’, where to buy, where not to buy and the general outlook of the Sydney property market for 2011.
 
Also speakers from 2 real estate agencies will be updating you on the new Residential Tenancy Act that arrived on our doorstep this year, and the impact it will have on landlords and potential landlords. 
 
The first seminar will be held on Wednesday 1 June 2011 in the Perpetual boardroom; Level 12, Angel Place Building 123 Pitt Street Sydney with a 6pm start. Light refreshments will be provided.
 
The second seminar will be held on Tuesday 7 June 2011 at Ray White Lower North Shore offices; Level 1, 3 Young Street Neutral Bay with a 6pm start. Light refreshments will be provided.  
 
 RSVP today as seats are strictly limited to marie@pkproperty.com.au
 

PK’s Hot Tip

I am really excited about the small window of opportunity to upgrade at the moment . For example if you have a property under $1million the auction clearance rates for properties in that price range when you separate them from all properties sold is approximately 75%. If you have a look at separate properties sold between $1.5million and $3million clearance rates are around 40%.
 
So if you do the maths and sell at roughly $900,000 and take a 5% reduction on the sale of your property which is $45,000 (and the reason I say 5% is because there is still a lot more competition in that price range which is holding up that end of the market) then if you purchase something for roughly $1.8million, I believe the reduction in prices are around 10% in that price range which equates to a massive $180,000. And if it’s your principal place of residence that’s a huge capital gain tax free investment.
 

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