Property Prices to Double in 20 Suburbs of South Australia

Some of the latest figures coming out of Southern Australia is that property values are set to double within the next 10 years. Does that lead to an economic boon or just false hopes?

The latest RP Data Investors Report, released yesterday, highlights 15 suburbs and five towns where property prices have increased by at least 7.2 per cent a year over the past five years. If the suburbs and towns maintain similar levels of growth over the next five years, property prices will double over the decade. This means that an asset’s value will double over 10 years if it records an annual increase of 7.2 per cent.

This may seem like it is far fetched at this moment where the world economy is teetering on the edge of a nasty cliff of sorts. While this is true in many areas, there are some highlights. The RP Data Investors reports states, “Housing market conditions have been much weaker over the past five years and the suburbs highlighted have achieved a strong performance despite the overall weaker market conditions.”

There are 20 different areas highlighted in the report which show that prices are actually increasing. However, unit owners in the Norwood, Payneham and St Peters Council area among the most likely to experience a doubling of their property price. The report also shows that unit prices in Adelaide are far more likely to double than house prices.

Why is this happening? Well it is mostly a cultural, and migratory thing.

Toop & Toop managing director Anthony Toop said the area was being fuelled by urban renewal.

“It shows a growing trend that people want to live in those areas but in something that is modern and low-maintenance,” he said. “The Norwood, Payneham and St Peters area is really hot and very much in demand at the moment. It offers very attractive cosmopolitan living.”

People are moving towards different places, but are also developing a cultural trend in more modern and low-maintenance type of homes.

While the speculation of the doubling prices in real estate, units, and property is fun, only time will tell if this migrations continues, or if it will fizzle out within a few years.

Property owners have turned to BuilderSelector to help them with the process of building a new home or remodeling an older home. BuilderSelector works with homeowners to select the right contractor, cut through the red tape, and save money in the process. Check them out today to see how they can help you.

The Importance of Building Approval for Your Home

When it comes to real estate in Australia the importance of having an approved home can not be understated. The recent news of increased new home approvals within Australia is a tremendous opportunity for many to be able to not only build that new home, but also seek approval for their already existing home.

Unapproved homes are the not-so-little secret of the Australian bush. Maybe it’s something to do with the pioneer days. Basically, these houses are built away from prying eyes without council approval. By doing so they can avoid any of the licenses, the red tape, and the fees associated with getting approval. But, as enticing as that may be to some, there is a tremendous down side. Your home can not be sold if it is unapproved.

Illegal dwellings are worthless in the world of real estate. What this means is that all your property is land value. The home itself is not counted in with the value of the land. If you have a $100,000 home on the land, you can only sell for the value of the land only. If you want to get more money, you will have to get retrospective planning permission. But that can be a very costly and time-consuming business.

In order to go through the approval process you will need a DA, or development application, and the building will need to meet council’s building codes to pass. A council approved engineer can make a thorough inspection and note any works that must be done to make the building compliant. The biggest cost will be the home renovations needed to bring the structure up to standard in terms of engineering, bush fire safety, drainage and sewage disposal.

With the increased rate of building approvals, it is important to seek out the approval for your home in order to keep the value of it in the event that you want to sell or leave it as an inheritance.

BuilderSelector partners with homeowners, and those wanting to build their new home, in order to make the process much easier and less expensive. Contact them today to see how they can work with you with your renovations, or new home building.

Australian Housing Sector Shows Signs of Growth

The news for new home construction is not as dreary as it has been in the last year. The numbers do suggest that the latest housing loan figures support hopes for better times in the home building industry. This is good for both those who work in the home building industry and potential homeowners who want to start building soon.

For the wider economy though, it’s not just the number of home loans that matters. The value of home loan approvals is important. And then there are investors, not generally mentioned when the “home loan” figures from the Australian Bureau of Statistics are reported every month.

So, if you take in investors along with home buyers, the total value of housing finance approvals to both investors and home buyers in February was $21.83 billion, compared with the 2012 average of $20.61 billion. In other words, this means that the money from new housing is $1.2 billion more each month than it was last year.

Last month the Reserve Bank of Australia was cautiously optimistic about the prospects for the home building sector.

“Overall, recent housing market developments pointed to a further moderate increase in dwelling construction in the period ahead,” the central bank said in the minutes of its board’s monetary policy meeting earlier in March.

Where is all this money coming from? The market is dominated by established homes. However, this is a good thing because the strength of the market is always found on the movement of established homes in their selling and renovations. This then sends waves throughout the economy and boosts everything else.

The value of lending for new housing, including those investor loans identified by the ABS as going into construction, was $2.70 billion in February, $124 million or five per cent above last year’s average.

Of course, before unbridled excitement ensues, it is important to realize that there is still a journey ahead to get the economy moving again. However, if the numbers continue to hold, or climb, this could be a very good sign for both contractors, real estate companies, investors, and homeowners.

For anyone looking to build a new home, or renovate their existing home, BuilderSelector can come alongside and help with each step in the process. They have helped many homeowners with getting the right contractors, licenses, and save lots of money in the process. Check out their website today to see how they can help you too.

Home Building: Tips for choosing the right location for your new home

Location is everything when it comes to choosing where you want to have your new home built. There are many different aspects to consider other than the price and size of the block of land for your home building project, and much depends on whether you have a young family or if your newly-built home will be where you spend the rest of your retirement.

Image courtesy of littlerockfamilyhousing.com

It is of the utmost importance to do your research before undertaking your home building project; here is a checklist of some of the things that you should investigate before deciding where to build your dream home.  Don’t forget that not only will this point be useful to you, but if you decide to sell your home further down the line then this points will help tempt potential buyers.

• What are the local kindys and schools like?  Would you ideally prefer to keep your children at the same school, if so is there an adequate bus service, or if they’re younger, is it a reasonably small drive to take and collect them?

 

• Will you be connected to mains utilities?  Or will you need to make alternative arrangements for your electricity and water supplies?

 

• Is there a supermarket nearby, or local butchers, grocers, bakeries etc?

 

• What are the local amenities like?  Are there nearby places for children to enjoy such as playgrounds, cinemas and bowling alleys?  Likewise, are there enjoyable places for adults to go to within walking distance or a short drive?  How far away from the beach will you be?

 

• If you’re a sporty family, are there plenty of sporting facilities nearby you can use?

 

• Are there any family-friendly restaurants around? Or decent bars and cafes to visit at the weekend?

 

• Will you be close enough to health care facilities such as doctor’s surgeries, dentists and hospitals?

 

• Are there any plans or proposals for major construction or road works in the area that might have an impact on the value of your newly built home in the future?

 

• If you’re planning a home building project with a view to renting it out, are there offices and shops nearby that would help secure tenants?

 

• Is the style of your home building project in keeping with nearby residences?  Is your newly built house going to look odd in the neighbourhood?

 

• What kind of reputation does the neighbourhood have?  Some neighbourhoods have undergone regeneration and attracted lots of new residents which has increased the overall view of the area.  However, others are not considered nice neighbourhoods and probably won’t be in the foreseeable future.

 

• What are the travel links like?  Are you near a train line or a good bus service?  If not, is the route to work a short and easy drive, or will you be stuck in traffic each morning and night?

 

 

 

 

How to Choose the Right Block Of Land

Choosing the right block of land is an essential step when building the home of your dreams
Image courtesy destinationliving.com.au

If the great Australian dream is to own your own home, then even better would be to design and build your own home with your family’s needs and lifestyle in mind. If you think about it, it is extremely unlikely that any prebuilt home could be more perfectly matched to your family’s tastes than if you had designed it yourselves, carefully planning the style and selecting all the finishing touches.

As an added bonus, some of Australia’s state governments are offering incentives for people to buy vacant land and engage custom builders, such as zero stamp duty on the purchase of vacant land. And with the property market still trying to recover from its recent slump, it seems that now is the perfect time to build your dream home on the perfect block of land.

It is important to keep in mind that various aspects of the block of land that you choose will determine the features that you can include in your house design as well as the overall cost of the development. So how do you go about choosing the perfect block of land to build your family’s new home?

Neighbourhood

You may have found a large block of land that’s right in your price range, but is it close to your children’s school? What about your workplace – is it worth a thirty minute commute just to get a cheaper block of land? How important is it that your home is near the necessary infrastructure that your family replies upon? All of these factors need to be considered before deciding on a particular parcel of land.

New Subdivisions

If you’re looking at buying a block of land in a new subdivision, you can naturally expect that many of the usual amenities may not have been constructed – especially schools, shopping centers and public transport. Everything will have been at least roughly planned for though, so check with your local council to find out when various facilities are expected to be available.

Slope

While a block with a slope may mean a great view, it may also mean additional challenges. Building a house on a slope is not without its difficulties, as your home will have to be either cut into the slope, or built high out of the ground – both of which require additional expenses. The extra costs associated with drainage and retaining walls also need to be taken into account when dealing with a sloping block. Sometimes it will be worth your while to choose a level block (or ideally, a block that slopes very slightly in order to allow for the natural drainage of rainwater) and forfeit the slightly better view that a more drastically sloping block may have offered.

Soil Test

Find out whether the block you’re looking at has had a soil test conducted. If not (and if you really have your heart set on that block) organise your own soil test as early as possible, and certainly before making an offer on the block. This is important as it will determine whether your foundation material will create additional building costs: i.e. if rocks, deep fill or reactive soil or trees are present.

A little extra research and time taken when choosing your new block of land could pay off significantly in the long run.

Escape the Rent Trap: Four Reasons Why Owning Your Own Home Is Better Than Renting

The rent trap: it’s easy to get into, and sure hard to get out of. When you first move out of your parents’ home it seems a logical step to move into a rental with your friends, your partner or by yourself. But with rental prices soaring all around Australia, the average renter is having trouble saving for their deposit and showing a sufficient income to qualify for a mortgage.

Or are they? Many renters don’t believe that they would qualify for a loan, so they continue to rent. However, what many renters don’t know is that there are a range of mortgage products available that might suit their needs. No-Doc or Low-Doc loans are perfect for self employed, unemployed, seasonal workers and new immigrants, but usually require a higher deposit and/or a higher interest rate. On the other hand, No Deposit loans allow you to borrow 100% of the purchase price with little or no savings – perfect for those on high incomes (such as people working in the mining sector) with no savings history. There are even Government loans available in certain circumstances, e.g. for low-income earners and single mothers wishing to retain their family home after the death of their spouse.

Our advice is to speak with a mortgage broker (or even a number of independent mortgage brokers) and allow them to source the best possible loan for your circumstances. You may just be surprised at what they can find!

And why should you go to all this trouble? Because in most cases, mortgage repayments are not much more than you would pay for rent for a comparable property. And here are four more reasons why building a home is just so much better than renting someone else’s home:

1. Your home, your lifestyle. When you’re renting you have to hope that you find a rental that has the right number of bedrooms and bathrooms, plus enough storage space for your belongings and your cars. If not, you’ll find yourself paying for a self-storage facility to store your work car or your boxes of books. But when you build a home you can ensure that it will suit your lifestyle and your belongings perfectly.

2. Your bond. No matter how good a tenant you are there is every chance that you will lose your bond when you leave your rental property (especially if you have pets). Landlords are always going to try to find a way to keep your bond: it only takes one accident or clumsy visitor and it’s gone.

3. Renovate, rearrange and adapt. When you’re renting you’re very limited in the improvements that you can make to your house. Even if you are permitted to paint a wall or replace some flooring, you’re really only adding value to your landlord’s property. When you leave (or when your lease expires!) you will have lost all of the money and time that you put in. But when you buy or build, you can do what you like: hang pictures, redo the kitchen, rip down a wall – it’s up to you!

4. Equity. Put simply: when you pay rent, you’re increasing your landlord’s equity. When you pay your own mortgage, you’re increasing your own equity! When it comes time to retire, you’ll have a fully paid property to live in rent-free, plus you’ll always have the option of taking out a reverse mortgage to live off the equity in your home.