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National Property Statistics

12 MONTH MEDIAN GROWTH – SEPTEMBER 2017

	HOUSES	UNITS
ADELAIDE	2.5%	4.1%
MELBOURNE	11.5%	3.5%
SYDNEY	7.8%	4.3%
BRISBANE	3.3%	-2.1%
CANBERRA	7.7%	2.9%
DARWIN	-9.1%	-8.7%
PERTH	-2.4%	-3.6%
HOBART	6.8%	2.4%

12 MONTH MEDIAN PRICES – SEPTEMBER 2017

	HOUSES	UNITS
ADELAIDE	$445,000	$375,000
MELBOURNE	$702,000	$520,000
SYDNEY	$940,000	$715,000
BRISBANE	$530,000	$410,000
CANBERRA	$655,000	$430,000
DARWIN	$492,000	$390,000
PERTH	$500,000	$400,000
HOBART	$390,000	$290,000

If interested in suburb statistics for your local area in South Australia, please email info@salistings.com.au

Justine Thomson

Prescribed Minimum Advertising Price

The Prescribed Minimum Advertising Price or PMAP as known in the real estate industry, relates to legislation in South Australia prescribing the amount an Agent can advertise a property at. The price you and your Agent list in the Sales Agency Agreement will affect the price for which the property can be advertised. This legislation was designed to protect consumers from properties being advertised below current market expectations, a term referred to in the industry as underquoting to bait advertise.

In a Sales Agency Agreement, the Agent will provide a genuine estimate of the likely selling price and this figure is included in “Agents Estimated Selling Price”. The Agents estimated selling price is based on a range of factors including but not limited to, current comparable market sales in your area, the condition of your property, location within the area and any other factors that may impact price. For example, a property positioned on a main road may be appraised lower than the same property in a quiet street in the same area. A good Agent will know the local area well and will provide supporting evidence of how the “Agents Estimated Selling Price” was derived. This is not a guarantee you will receive this price when the property is presented to market, however, it is a genuine estimate based on supporting evidence. In the Sales Agency Agreement, the Agent must express the “Agents Estimated Selling Price” as a single figure without any words or symbols. If you think the estimate is not right, or want comfort in the figure provided you can pay a licensed Valuer to seek an independent valuation of the property.

The “Vendors Acceptable Price” is also included in the Sales Agency Agreement. This is the amount you, the Vendor wants from the sale of your property. When determining this price, you may consider the information provided by the Agent when appraising the property, research sale prices in your area, consider an independent valuation from a licensed Valuer and not allow emotion to cloud your judgment. This figure also needs to be presented as a single figure without any words or symbols.

How does the PMAP all come together? The PMAP is based on the “Agents Estimated Selling Price” and the “Vendors Acceptable Price” listed in the Sales Agency Agreement. The prescribed minimum advertised price is the greater of the “Agents Estimated Selling Price” or the “Vendors Acceptable Price”.

Let’s give an example to help assist in explaining the PMAP. After considering all variables including current market sales in your area, your Agent appraises your property with an “Agents Estimated Selling Price” of $550,000. You have considered the appraisal, researched your area and discussed with your partner and agree your “Vendors Acceptable Price” will be $570,000. The Prescribed Minimum Advertising Price for your property will be $570,000. Your Agent cannot advertise the property at less than this amount.

It is very important you have a good relationship with your Agent, as the advertised price can impact the campaign from the get go. There is no advantage gained by advertising your property above current market conditions. Consumers are well informed these days and will research the area they are looking to buy in with sales information and appraisals at their ready disposal via the world wide web! By advertising your property above market, the likely result is little or no enquiry and a property potentially not selling.

Let’s give another example, to reinforce the PMAP.

“Agents Estimated Selling Price” $450,000

“Vendors Acceptable Price” $430,000

The prescribed minimum advertising price is $450,000.

When determining the appraisal of your home you need to have trust and faith in your Agent and understand they have the best understanding of your local area sales and are experts in their field. If you do not trust your Agent’s knowledge there is no point pursuing a Sales Agency Agreement with them. To give an analogy, if you went to your Accountant to do your tax return would you be telling them “this item is tax deductible”, when they are the qualified expert. If you are, then you need a new Accountant!

Justine Thomson

Top Tips for First Home Buyers

To assist First Home Buyers get a step up on the property ladder, there are a few incentives you need to be aware of. To help assist, SA Listings has compiled this go to “Top Tips” for first home buyers looking to purchase in SA.

Top Tips Towards Home Ownership

First Home Super Saver Scheme: You can make contributions to your super account from your before tax pay to save for a house deposit. You are limited to $30,000 per person and capped at $15,000 per year. If you are self employed or your employer does not allow you to do salary sacrifice, you can claim a tax deduction on the after-tax contributions. To find out more, contact your Superannuation Fund direct.

Stamp Duty Savings: There are a couple of ways you can save on shelling out too much stamp duty! The SA Government allows for a stamp duty concession if you purchase an apartment off the plan anywhere in SA. What does “off the plan” mean? This means it is a new building that is yet to be constructed or it is a new building for which construction has commenced and the Commissioner is satisfied the work has not been substantially completed or it is an existing building where the Commissioner is satisfied that the building is to be substantially refurbished and the work has not yet commenced or has not been substantially completed.

The amount of stamp duty concession that applies depends on two things:

What stage the construction is at from the date you enter the contract and
What the market value of the apartment is that you purchase.

To calculate how much stamp duty you need to pay for an “off-the-plan” apartment, there is a great calculator available on the Revenue SA website: Stamp Duty Calculator

Another way to save on stamp duty is to build. By purchasing a block of land and then building, you only pay stamp duty on the land, saving you considerable money. This additional money can be put towards the build rather than to State Government coffers. For example, if you buy a block of land for $150,000 and build a home for $200,000, you will only pay stamp duty on the land only. At current rates the stamp duty on $150,000 would be $4,830. If you had purchased an established home at $350,000 the stamp duty would be $13,830. This is a saving of $9,000! As a first home buyer this is a considerable amount of savings.

First Home Owners Grant (FHOG): The FHOG is a once of grant paid to eligible first home buyers on the purchase of a new build or construction of a new home. To be eligible for the grant the market value of the property purchased must be $575,000 or less. The amount of the FHOG is $15,000. If you purchase a newly built home, the grant is paid on settlement, if you construct a new build the grant is paid on date of first progress payment.

Pre-construction Grant for “Off-The-Plan” Apartment Purchases: For contracts of “off-the-plan” apartments entered into between 20 June 2017 and 30 September 2017 the State Government is currently offering a $10,000 pre-construction grant.

Savings: Don’t forget good old fashion savings. By saving a few dollars everyday, this can go a long way towards your first home deposit!

At SA Listings we know it is tough for first home buyers to dip their toe onto the property ladder but with sound knowledge and a good understanding of managing your money, the dream can be a reality! We hope this blog assists all those aspiring first home owners and should you have any questions, please send us an email or message us on facebook and we would be happy to help.

Justine Thomson

Please note: Information provided in this blog is current as at date of going to print

Top Reno Tips Before Listing

I am often asked as an Agent, “What reno’s should I do to my home to maximise the price I achieve on sale?” Usually when a person is asking me this question, the work they are doing to the home is not for them to enjoy but to present the property as best they can to maximise return.

To answer the question, there are 5 key reno’s that will maximise the property price.

Paint: this can be done affordably if you manage yourself and can literally add tens of thousands to the sale price. Internally use a neutral white colour on all walls and ceilings. Do not do feature walls, this can polarise people if they do not have the same taste as you. Bring in colour with soft furnishings and wall art. It is also a good idea to freshen up external timber and gutters with a lick of paint if required.

Update the Kitchen: this is a major selling point of a home. Update door handles, fixtures and fittings. If the budget allows and the cabinetry/benchtops are out-dated, consider replacing the cabinetry with white laminate and upgrade the benchtops.

Update the Bathroom: you do not need to rip out and replace the entire bathroom but look at the quality of the sink, tapware and showerhead. If the tiles are dated, consider replacing or painting. Another low cost exercise is to clean all the mould from the grout. There are great products available on the market to make this job simple and easy.

Spruce up the Garden: the front garden is the first thing a prospective buyer sees. Make sure it is neat, tidy and presents well. Replace any dead plants with new, mow lawns and remove all weeds.

Repair and Patch: Consider fixing any maintenance issues including any holes/cracks in walls, cracked tiles, worn timbers and any appliances not working.

Your home is one of your most important assets and when listing to market you want to maximise your dollar return. Some hard work prior to listing should pay good dividends and will reflect in the final sale price.

Justine Thomson

Take Advantage of a Government Incentive

NRAS, or the National Rental Affordability Scheme. Don’t be bamboozled by the big words, the scheme is easy to understand and provides benefits to a wide demographic of people in Australia. Not only do investors benefit from NRAS but so do tenants and those looking to get a step up on the property ladder. So what is it? Why did it come about? And how does it work?

NRAS is a Federal Government initiative introduced in 2008. It was designed to encourage investment in residential housing to assist people on low to moderate incomes with an opportunity to rent homes at 20% below market rent values. It is not social housing; rather, it is a scheme to provide affordable private rental homes to individuals and families who meet the income threshold. To attract investors, tax-free incentives are provided to those who invest in and own approved NRAS properties.

NRAS was designed to assist in addressing housing supply and affordability. Pressure on the private rental sector, increased rents, the difficulty of low to middle income households to access affordable private rental homes, plus the reduced supply of public housing contributed to the NRAS initiative being created.

NRAS provides benefits to both investors and tenants:

Tenants: Eligible tenants can access private rental accommodation at 20% below the market rate. Tenants’ income may increase up to 25% before their eligibility is affected. Current income eligibility rates are available here: https://goo.gl/vHuAtF

If you are interested in renting an NRAS property and meet the eligibility criteria, it can be an affordable housing solution, to assist you in meeting your financial goals.

Investors: Approved investors are eligible to receive the NRAS incentive for up to 10 years for each approved dwelling where the conditions of allocation for the dwelling are met including renting the property at least 20% below market value rent.

The NRAS incentive for the 2017/2018 year is as follows:

Federal Contribution: $8,335.75

State Contribution: $2,778.58

Total Incentive: $11,114.33

The NRAS incentive comprises two components: the Federal Government contribution is a tax offset and the State Government contribution is a direct cash payment.

The benefits for investors can be significant. For example: If Jane invests in an NRAS property where the market rent is $300, she must rent the property out at $240 per week to be eligible for the NRAS incentive. Jane effectively receives $3,120 less in rent per annum for her property. However this is more than compensated by the above annual NRAS incentive she receives from the Federal and State Government. To understand the full benefit of the NRAS incentive and what it means to you financially, it is best to speak with a qualified Accountant or Financial Planner before purchasing an NRAS property.

SA Listings has a strong understanding of NRAS and works closely with relevant providers in South Australia. SA Listings currently has a NRAS property available in Evanston, South Australia. To find out more about NRAS either as an investor or as a tenant, please contact SA Listings for more information.

Justine Thomson

Preparing Your Home for Sale

Pay attention carefully, this blog could add thousands of dollars to the sale price achieved by your home, with only a relatively small outlay, plus some hard work and elbow grease! How? Well, the formula is simple:

Fresh paint on walls: preferably a neutral or crisp white – it’s amazing what a coat of paint will do
De-clutter: everything packed away in boxes, except the bare essentials
Minimal furniture: key pieces only with modern soft furnishings and accessories
Well kept garden: fresh mulch, neatly cut lawns and healthy plants
Clean windows and walls
Clean pavers and driveway
Repair any noticeable damage to the home: patch holes in walls for example
Remove mould from bathrooms and refresh grout
Basically, present a clean sparkling home that smells fresh!

Clients often ask how the home should look for photography and opens. To help clients visualise what is needed, I can provide pictures of furniture to be showcased in each room, such as those shown below. Take note, while each room in your home will not look exactly like this, I want clients to take away from these pictures the number of furniture pieces in each room and the way it is styled with the soft furnishings and accessories.

The property image above, listed and sold recently by SA Listings, was styled for minimal cost and achieved a sale result of $46,000 in excess of Vendor expectations. Note the following from the photos:

Formal lounge includes 3 key furniture pieces: lounge, coffee table & cabinet
Bedroom includes 3 key pieces: bed and two side tables
Second bedroom includes 3 key pieces: bed, desk and chair
Kitchen: totally clean bench tops with exception of minimal accessories
Lounge includes 4 key pieces: lounge, chair, cabinet and coffee table
Meals includes 2 key pieces: kitchen table and 6 chairs
Outdoor area includes 2 key pieces: outdoor table with chairs
Front yard and rear yard: neat, tidy and clean

In addition to the key furniture pieces, the soft furnishings and accessories in each room really make it pop. Think eye-popping paintings, lamps, neutral toned rugs and fresh flowers, with a common colour scheme. For bathrooms, all you require are matching towels and a beautiful soap dispenser on the vanity.

A big mistake commonly seen in homes on the market, is overcrowding in each room with too many furniture pieces. This can have the impact of making rooms appear small and cramped. Whilst it may be difficult to live without these pieces, for the limited period it is showcased to market it is well worth taking the pain to achieve the gain.

We hope you found this blog informative and if the styling process is too overwhelming, SA Listings can assist you with professional styling. We offer a unique styling service with affordable styling packages. To find out more contact us at http://www.salistings.com.au/contact

Justine Thomson

What Price to Offer?

As an Agent I am often asked the same question from each and every potential purchaser, “How much should I offer?” The answer to this question is: there is no answer! As the Agent selling the home I work for the Vendor and my role is to achieve the best possible price for them – but I’m unable to advise you, the purchaser, of what price you should offer for the property.

However, to give you some insight into ways to determine the offer price to secure the home of your dreams, SA Listings suggests you think about the following points:

Do your own research on the area and current market sale prices for similar properties. To assist you with this, a good Agent should be able to provide you with a list of recent sales of comparable properties in the area.

A good Agent should always consider current market prices for similar properties sold in the area and should price the property accordingly. Your own research, plus the agent’s comparable price list, should give you an indication of where you believe the property price sits. Remember, the price advertised will be the Vendors expectation so your offer should, as a minimum, be in this range.

Have you missed out on previous properties you were interested in? If so, the reason may be is you are low-balling your offer in the hope of securing a property below current market conditions or you may be seeking a property outside your budget. I can tell you, the chances of securing a property using this approach is slim. A good Agent prices the property in accord with current market conditions and if you low-ball an offer the Agent will likely recommend the Vendor reject it. The likelihood of securing a property using this tactic is as probable as daily rain in Dubai. Do not low-ball, go in with your best offer from the start.

Consider carefully any conditions you include with the offer. An Agent may recommend a Vendor accept a lower offer if no conditions are attached, for example, a cash unconditional may be more attractive than subject to sale. So be prepared: have finance pre-approvals in place, offer an appropriate deposit and know what you are prepared to do regarding settlement timeframes. Being prepared here provides confidence to the Vendor of your ability to pay for the property and shows you are serious about the property and your offer.

Remember, each property is unique and if you have been searching for some time and this property ticks most of your boxes then don’t miss out, put your best foot forward from the start. Too many people miss out by trying to snag “that bargain” when in reality, had they put in a realistic offer initially they would have secured the property.

One final note, don’t bother asking the Agent where your offer sits compared to others. A good Agent will not disclose this as it is against South Australian legislation. The agent is unable to tell you any details of other offers, other than the fact there are other offers. If you wish, you can ask for this in writing.

If this home is THE ONE, your inner Zen, your sanctuary, the right floor plan, the right location and within budget then don’t be influenced by other offers, just focus on what you want, what you can afford and put forward your best and final offer. You may not get a second chance. If your best offer is not good enough, be prepared to walk away, another one will come along.

If after reading this blog, you are unsure on how to go about the negotiation process you can always engage a Buyers Agent to act on your behalf. SA Listings offers this service – for more information contact SA Listings at info@salistings.com.au

Justine Thomson

Staging a Home for Sale

The whole world is a stage – but should your home be?

What is it buyers look at when visiting an open home? Frankly, ask three different people and you may get four different answers! While one may step back and take in the larger picture of the home as a whole, another may look at the same house through the eyes of the furniture, the art, or even the family photos on the wall, and yet another will simply cast a critical eye over the structural integrity of the home. It may even be that it is easier to answer what is it buyers look at by first ensuring there is nothing in the home that will turn them off as soon as they walk in.

Some examples? Tired, ratty old furniture that has seen better days, magazines or books in the loo, and whilst you may simply love your collection of every set of commemorative babushka dolls from the twentieth century – it may be many buyers will not.

Now of course, most people have some idea that in order to correctly present your home for sale you need to “de-clutter” and “de-personalise,” but what about the styling through out the home? This is where the services of a home styling or staging professional can help – with interior designing skills to make your home stand out that extra mile.

A home stylist will cast a critical eye over the home, and will be able to provide appropriately styled furniture and accessories to suit. For example, large furniture pieces may be comfortable, but they may be cramping the space available, making it look smaller than it really is. Changing them over for smaller, less intrusive pieces that match and compliment other pieces in other rooms creates a sense of space and style. Styling gives potential purchasers an idea of what the home could be for them, not what it currently is for the vendor.

A home stylist may also remove items that stand out and draw the attention of buyers, such as loud artwork or rugs. Again, a flowing sense of style throughout the home will help ensure the home appeals to as broad an audience as possible.

Remember, first impressions count. You want buyers to walk into your home and imagine living there with their family, inviting their friends over to a home they are proud of, a home that is up to date and on trend.

Not every home will require the expense of a stylist or staging. But in some cases, the outlay of a moderate expense may mean a greater return come settlement day.

Should you be interested in property staging, during the appraisal of your home the SA Listings’ team is able to discuss options that best fit your property and budget.

Justine Thomson

Selling Yourself

If you are considering selling your home in 2017 there are many paths you can take:

Sell it yourself
Engage a traditional real estate agent on commission with a full agent service
Engage a real estate agent at a fixed price with a full agent service

Selling an $800,000 home could cost as little as $2,610 if you sell yourself or up to $17,675 if you utilise a traditional commission agent.

If you are considering selling on your own, think carefully about the following:

Appraise the property correctly by using publicly available information about local sale prices and consider an independent valuation to assist
Ensure you present the home well for photography
Prepare relevant marketing material
Ensure all relevant documentation is available to a potential purchaser to enable an informed decision to be made, example: council rates, water rates, copy of title etc
Be prepared to arrange inspections by appointments and opens at various hours of the day
Be prepared to meet potential purchasers and take on board any negative feedback
Follow up with those people interested in your home and be prepared to take the emotion out of the sale negotiation
Engage a Solicitor or Conveyancer to prepare the Contract and Form 1

People often underestimate the work involved in selling a home and the level of professionalism required to negotiate the best conditions and price. Selling a property is an emotional and intense experience. It can be easy for a seller who decides to sell it on their own to run into trouble with incorrect information provided to a prospective purchaser or the inability to remove the emotion from the sale. A real estate agents market knowledge and negotiating skills can be particularly useful when it comes to listing a property for sale. Following is an indicative table of costs under each model.

Cost to sell an $800,000 Home by Private Treaty	Sell On Your Own	Sell with SA Listings	Sell with a Traditional Agent @ 2%
Base Price	$1,295.00	$7,888.00	$16,000.00
Professional Photography	Inc	Inc	$200.00
Sign Board	Inc	Inc	$150.00
Listing on realestate.com	Inc	Inc	$500.00
Brochures	Inc	Inc	$110.00
Open For Inspection	Manage Yourself	Inc	Inc
Form 1	$330.00	Inc	$330.00
Government Searches	$385.00	Inc	$385.00
Contract Preparation	$600.00	Inc	Inc
Total	$2,610.00	$7,888.00	$17,675.00

In 2017 there is choice and the flexibility to now sell your home with a full agent service at a lower cost to a traditional commission agent. So why create a headache for yourself and embark on selling alone when you can engage the service of a real estate professional at a transparent fixed fee. Whilst you think you will save thousands by selling yourself, it could in fact cost you thousands in the final negotiated price!

Justine Thomson

SA Homes Top Ten Wish List

I thought with 2016 recently ending and the New Year ringing in, it is an apt time to review the most common search words buyers use when seeking a property in SA, to assist any would be seller in 2017.

Many will be surprised pool is the number one search word when seeking properties in SA. For all those lucky enough to have a pool, the cost to run, maintenance and amount of times utilised often outweigh the benefits a pool can bring but at sale time this can be a bonus. A pool can be an attractive garden feature and for families a must have in our dry, hot summers. If your kids have flown the coop and you are thinking of ditching the pool, think twice, especially if you have plans to one day sell your home and downsize.

The old fashion granny flat is back in vogue! Statistics prove our kids are staying at home much longer these days and often do not consider leaving the family abode until in their late twenties or early thirties, sigh…. Grandparents are also becoming a part of the extended family, assuming a carers role for children when both parents work. To give extended adult families breathing space it is little wonder the granny flat is a highly sought after commodity. If you are fortunate enough to have a granny flat and are considering taking your home to market, it would be worth spending some coin on reinvigorating life into this space. If used as storage, clear out the boxes, de-clutter and style as you would a second home.

The corner block has always been a sought after find in SA but even more so since the State Government zoning changes. If you fall into the new zoning categories for higher density living, the corner block can be correlated to the golden goose who lays the golden eggs. Make sure you check with your council for current zoning requirements before putting your home on the market. The right zoning can add tens of thousands to your sale price. A good agent should be aware of the possibilities in your area when it comes to potential development or subdivision and should factor this into the market price.

Top Ten Property Search Words in SA

Pool
Granny Flat
Corner
Views
Beach
Shed
Esplanade
Cottage
Character
Investment

To maximise the return on your property consider the top ten search words and ensure your Agent takes full advantage of known characteristics your home has in meeting buyer needs.

If considering selling your home in 2017, we would love to hear from you and assist you in making the most of your properties attributes: salistings.com.au

Justine Thomson