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Sydney, Perth and Melbourne led house price growth in 2013

Sydney, Perth and Melbourne led house price growth in 2013 | Property Subdivision | Scoop.it

Australia’s national house price increase of 9.8% in the 12 months to December 2013 has been driven by house price growth in the key cities of Sydney, Perth and Melbourne, according to the latest analysis from Fitch Ratings.

Sydney saw price growth of 14.5%, in Perth prices were up 9.9% and Melbourne experienced increased of 8.5%. 
The analysis report says that the main drivers of growth is an undersupply of housing and increased borrowing capacity following the policy rate reduction over the past two years.

Local and overseas investors have also driven house price growth, with local investors looking for better returns after bank deposit rates have fallen in line with the official policy rate.

There is also anecdotal evidence that foreign investors have had a role in driving prices higher, however reliable data are not available on this topic. Overseas domiciled investors are restricted to purchasing only newly constructed residential properties.

Read full story here: http://www.propertywire.com/news/australasia/australia-property-price-growth-201402148789.html

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What is a Covenant or Restriction on the Title? Source Property Services Blog

What is a Covenant or Restriction on the Title? Source Property Services Blog | Property Subdivision | Scoop.it
What is a Covenant or Restriction on the Title? By: Source Property Services How to define Covenant or restriction on the title of a property?
Source Property Services's insight:

For more information please feel free to contact Source Property Services on 1300 861 083 or email us on info@sourcepropertyservices.com

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Subdivision: the most obvious option is rarely the best one

Subdivision: the most obvious option is rarely the best one | Property Subdivision | Scoop.it

"Subdivision is one of the many ways you can develop property. It involves converting one piece of land or existing dwellings into several.

Raw land subdivision entails legally and physically converting raw, undeveloped land into developed land so that one or more buildings – residential, commercial or industrial – can be constructed.

As you will be changing the land’s usage and appearance, for example, perhaps from a rural zoned paddock into a residential land subdivision, you’ll also be building the infrastructure required, such as roads, paths, drainage systems, water, sewerage and perhaps even public utilities such as a park.

You can also subdivide developed land – much more easily – by simply splitting a block in half.

Subdivision of existing buildings is the conversion of a single title to multiple titles. For instance, a block of 10 units on a single title – often referred to as units ‘in one line’ – can be converted into individual titles, such a strata title. This is a great way to add value to the properties and allows you to sell them individually.

Subdivision is a great development strategy for current market conditions. It gives you flexibility to play it safe and sell off a newly created piece of land to reduce your loan, or to hold and add value to the property by registering the new lots and holding, or further developing, them.

The objective here is to have a creative outlook while searching for potential subdivision sites as it is this creativity that can determine the success of the development."

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What Qualifications Does a Property Investment Adviser Need? None.

What Qualifications Does a Property Investment Adviser Need? None. | Property Subdivision | Scoop.it

Excerpted from the article: 

1. To become a property investment adviser, what educational qualifications are required?

Diploma in Financial Services

Diploma in Real Estate

Bachelor of Business

Answer: none of the above.

 

2. The compulsory continuing professional development requirements for a property investment adviser are:

Attendance at the national conference (15 hours)

Equivalent of 20 hours which can include attendance at seminars, conferences, guest speaking

Equivalent of 30 hours which must include attendance at the national conference.

Answer: none of the above.

 

3. The licensing requirements to become a property investment adviser include:

Police check

Minimum entry educational qualifications

Endorsement from two current property investment advisers

All of the above

Answer: none of the above. 

 

 

 

 

Source Property Services's insight:

"If you think it's expensive to hire a professional to do the job, wait until you hire an amateur."

 

Call Source Property Services for advice that counts. 

Ph: 1300 861 083

info@sourcepropertyservices.com

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Understanding Stamp Duty

Understanding Stamp Duty | Property Subdivision | Scoop.it
Take a closer look at stamp duty to find out how much you're likely to owe on the property you've set your eye on.

  

For information on concessions and exemptions, visit State Revenue Office Victoria

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Ten Ways to Increase Your Borrowing Capacity

Excerpted from the article:

 

Since the mid nineties Australian mortgage providers have operated under regulatory guidelines designed to encourage responsible lending. One aspect of these guidelines has been the ‘Ability to Repay Test’, commonly referred to as 'serviceability'.

"Put simply, financial institutions must demonstrate they’re satisfied that borrowers can afford to repay their debt," Smartline Personal Mortgage Advisers managing director Chris Acret explains. "If lenders don't demonstrate their satisfaction to that end, they risk their right to foreclose on a client in the event of default."

Acret says lenders interpret the Ability to Repay Test in different ways and, contrary to popular opinion, the loan amounts lenders deem to be responsible also vary greatly.

"In fact, a recent enquiry made by one of our advisers determined – from a range of 22 mortgage lenders – that a single borrower on a gross annual salary of $60,000 and a credit card liability of $5000 was able to borrow approximately $277,000 with the most frugal lender and approximately $372,000 with the most expansive lender," he says. "This demonstrates the range within which lenders interpret a borrower’s ability to repay – and that it pays to shop around."

Since the global financial crisis lenders have tightened their Ability to Repay calculations. "However, while lenders have been making moves to lend us less money, borrowers are faced with growing property prices in every capital city," Acret says.

These changes don’t mean that securing the right loan for your needs is an insurmountable task, but it’s more challenging and time consuming to wade through the policies, loan types, rates and lenders on offer.

With that in mind, API asked a few experts in the finance field to come up with effective strategies for investors to consider in their mission to boost their borrowing capacity.

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Why You Shouldn’t Believe the Property Bubble Story

Why You Shouldn’t Believe the Property Bubble Story | Property Subdivision | Scoop.it

Excerpted from the article:

There are ongoing claims that a price bubble is forming across the Australian residential property market, but the numbers don’t stack up. But even if it was, don’t worry about being in property. Policy makers will let the market run its course, unless they have major concerns around a deterioration in credit conditions.

Weak credit growth, low debt servicing ratios and a low rate of non-performing bank loans suggest we are a very long way from a housing price bubble.

The topic of a housing bubble has attracted a lot of attention this past week, although in truth the talk has been around a lot longer.

Now, up front, and while I think a housing bubble is a real risk, investors shouldn’t be scared off.

Firstly, and as other commentators have noted, we are not in a bubble now and no reasonable person would suggest this. You can see this most simply by noting that house prices nationally are only up five per cent for the year – and this largely reflects price growth in Sydney (six per cent year-on-year) and Perth (11 per cent year-on-year). In other cities, house price growth has been modest. For example, Melbourne (three per cent year-on-year), Brisbane (3.7 per cent year-on-year) and Adelaide (0.6 per cent year-on-year). Looking over a longer horizon – the last five years say – house prices are only up about 15 per cent or so. That’s a growth rate of around three per cent per year. There’s nothing bubble-like about that

Source Property Services's insight:

A very timely piece!

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Can You Play the Waiting Game?

Can You Play the Waiting Game? | Property Subdivision | Scoop.it

Excerpted from the article: 

 

"There is an old army expression that cautions us to “hurry up and wait”. 
  
This means that you should be prepared to leap into action at the drop of a hat, whilst exercising patience sitting around and waiting for that moment to come, only to do the same thing all over again as the cycle of waiting, then proceeding very quickly and then waiting some more continues. 
  
This expression is very apt for those who want to achieve long term wealth through real estate or any other asset class.
  
While it is necessary to be pro-active as to the strategy you take into the bricks and mortar battleground, there are many times when the best thing to do is nothing at all and simply wait for the right time or for the power of leverage and compounding to work its magic.
  
And yes, you guessed it, this too will follow a cycle of intensive moments of action and activity followed by a hibernation period, where you wait for the value of the property you bought to grow in order to fund the next investment.

The property cycle.

If you’ve been involved in property for a while you’d know the market moves in cycles. After each period of strong property growth, prices stagnate or perhaps drop a little and then flatten out before once again they begin to rise.
  
Just another instance of “hurry up and wait” isn’t it?
  
Strategic property investors know how to use this cycle to their advantage. 
  
Rather than waiting for the times when all the good news has already happened and is then being reported in the media, they “hurry up” and buy their investments at the bottom of the cycle, taking advantage while everyone else is waiting. 
  
They then recognise the right thing to do is wait until they have built up enough capital to refinance and use the equity in their investment to make the next purchase.
  
The power of this is that if you buy the right type of property, one that will be in continuous strong demand by a wide range of owner occupiers, regardless of the housing cycle’s ups and downs, the value of your property is likely to double every eight to 10 years.
  
Of course you can speed this up by buying well, purchasing a property in an area that outperforms the averages, by choosing a special property with unique features that will give it a scarcity factor and by “manufacturing” capital growth through renovations or redevelopment.
  
This minimises your risks and maximises your upside. Each strand represents a way of making money from property and combining all four is a powerful way of putting the odds in your favour..

Source Property Services's insight:

“Wealth is the transfer of money from the impatient to the patient.” - Warren Buffett. 
Great advice for those who want to profit from real estate.

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Melbourne Property Market Showing Healthy Signs

Melbourne Property Market Showing Healthy  Signs | Property Subdivision | Scoop.it

Excerpted from the article: 

"Melbourne is displaying a markedly improved outlook, but that apartment oversupply problem continues to linger

Certain health problems have long plagued Victoria’s property market but, in recent months, it has started to look much healthier and more confident.

Victoria’s market reported a significant increase in confidence – with a rise of 18 points to 117 in the June quarter – in the latest Property Council of Australia-ANZ Property Industry Confidence Survey. This result is Victoria’s first positive index reading since the first survey in December 2011.

ANZ head of property research Paul Braddick says the increase in confidence was probably driven largely by an improved outlook for the residential property market, with solid housing sales and positive house price growth in recent months. “In addition, a more stable global economic outlook and expectations of increased availability of debt finance is likely to have boosted expectations for construction activity and property capital growth in Victoria.”

Nonetheless, ANZ still expect property industry confidence to be weaker in the coming quarters. Braddick says it will be weighed down by a soft outlook for the state economy, further slowing in housing construction from the recent peak and a subdued outlook for retail spending and office employment.

However, Australian Property Buyers managing director Karin MacKay says the property market has definitely been on the rise, with inner cityMelbourne houses in high demand – especially
period houses in areas like Hawthorne and Camberwell. “It’s a good positive market at the moment. There was 1-2% growth last quarter. Individual properties are doing well. There always seems to be at least two bidders on properties at sale. This has all been impacting on prices.”

The crucial factor in this is the low interest rates, but Victoria’s high migration rates – with approximately 7000 people moving to the state each week – also help, she says. “Low interest rates are key to the improved market though. They are a big decision making factor for investors, particularly for first home buyers.”

Source Property Services's insight:

The Land Subdivision and Development industry has received a much needed impetus with Melbourne's property market showing a steady rise from the slump of the previous years. 

Traditionally low interest rates have fuelled demand and this coupled with a trend towards urbanisation and steady population growth means we can expect the property market to register substantial growth in the next 3-5 years. 

The increased interest in subdivided properties also highlights the fact that there is an oversupply of units in the inner-city.  

More and more potential buyers are venturing further out to high-amenity areas in middle and outer city suburbs to escape the potentially cramped-living closer to the city and to get better value for their investment dollar. 

Consequently the land subdivision industry has received a shot in the arm and factors such as better investment returns and growing demand for detached properties are fueling this trend. 

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What Kind of Property is Right for You

What Kind of Property is Right for You | Property Subdivision | Scoop.it

Excerpted from the article: 

"

The mistake most buyers make is that they ask this question first, when it should be the last in a long line of others. They choose a property and build their purchasing strategy around it, rather than developing a strategy and then finding a property to suit it.  

In doing so, they run a higher risk of choosing a property that won’t deliver the lifestyle or financial benefits they need. It may even put them behind the eight-ball, making it much harder to play catch-up down the track.  

To choose the property that really is right for you, you need to start with the most basic question first: Do you want a property to live in as your family home, or purely as an investment to rent out?  

If a home to live in is what you’re after, it’s important to choose one that will cater for the way you live—not just now, but for the medium to long term. Property is expensive to buy and expensive to sell, so why spend thousands on stamp duty and agents’ fees until you absolutely have to? By holding the property for seven to 10 years, you’ll also give capital growth a chance to do its work; an important consideration even when you’re buying primarily for lifestyle purposes."

 

Full article here: http://www.propertyobserver.com.au/residential/before-asking-which-property-to-buy-ask-yourself-what-kind-of-property-is-right-for-you-mark-armstrong/2013082764592

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Role of Arborists in Town Planning Projects - Carrol James

Melbourne's Property Subdivision Experts! Visit http://sourcemeasubdivision.com.au/ to find out how we can help turn your dreams into reality! Allow us to ex...
Source Property Services's insight:

Watch Carrol James, Director, Source Property Services, explain the role of arborists in town planning projects. For more inforamtion please feel free to comment or get in touch with us. 

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Creative Ways to Help First-home Buyers

Creative Ways to Help First-home Buyers | Property Subdivision | Scoop.it
For many, renting a property is a stop-gap solution on the pathway to the bigger dream of owning a home. And while renting provides a certain flexibility and potentially affordability the lure of home ownership appears as strong as ever it was.
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Unlock the cash in Your Property

Melbourne's Property Subdivision Experts! Visit http://sourcemeasubdivision.com.au/ to find out how we can help turn your dreams into reality! Allow us to ex...
Source Property Services's insight:

Carrol James from Source Property Services talks about the subdivision process, council rules and her business. 

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Selling Off The Plan – Advantages, Disadvantages

Selling Off The Plan – Advantages, Disadvantages | Property Subdivision | Scoop.it

Selling off the plan involves selling properties to home buyers and investors even before the construction begins. The buyers will have to make their decision based on the plans provided by the architects and there won’t be any real property at the time of purchase. Developers usually sell properties off the plan to generate initial cash flow for the construction phase. Investors too are finding selling off the plan more appealing where the hassle of construction is taken care of by developers. As it usually takes a long time to complete construction, quick profits can be generated by selling properties off the plan. However, not all property owners have the luxury of selling their properties off the plan as it is a complicated process.

Source Property Services's insight:

For more articles and information please visit http://sourcemeasubdivision.com.au

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Hurdles to watch out for when acquiring a bank loan

Mortgage brokers and property advisors to provide a list of obstacles that may come in the way of you and your bank loan, so that you don't find yourself in the middle of any nasty surprises.

 

Excerpted from the article:

“The important thing is if there is a risk with either the security or you, then your highest criteria for your loan search does not come down to the lowest interest rate, rather which lenders policies will mean that you satisfy their risk tolerance and that of the Lenders Mortgage Insurance (LMI) they use,” said director of Investors Choice Mortgages Jane Slack-Smith.

 

Obstacles include:

Bushfire prone areas and flood areas Results in credit score

“A minor default on a telephone bill or a late gas payment could stop a borrower from obtaining finance,” Mortgage Choice spokesperson Jessica Darnbrough explained.

Buying in a mining townProperties under 50 square metres and studio apartments

“Some lenders will not lend on a unit located in a high density apartment block. High density apartment blocks are usually three to four stories high and have more than 30 units,” Darnbrough continued.

Heritage listed propertiesUninhabitable to live in “as is” – It could be a renovators dream but financing is difficult to obtain if the property is lacking a kitchen or a bathroomHigh tension power lines

Each mortgage insurer differs and some have a 100 metre restriction, whereas others will only have a 50 metre restriction.

 Valuation shortfall

“One of the most common problems people face when applying for a home loan is a shortfall between the purchase price of the property and the amount the bank values that property for,” Darnbrough said.

Buying a property in a specific holding structure, for example Hybrid Discretionary Trust with corporate Trustee or SMSFA property with a granny flatA property with a specific use, such as a boarding house, commercial property, holiday house, student accommodation, display homes and NRASServiced apartments

As Slack-Smith says, some lenders will not lend at all if these obstacles come in the way, whereas others will reduce the loan to value ratio (LVR) to below 80%.

 

Read original article here: http://www.propertyobserver.com.au/news/hurdles-to-watch-out-for-when-acquiring-a-bank-loan/2013102265861?utm_source=po&utm_medium=aida&utm_campaign=newsplus

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Auction Numbers to Soar

Auction Numbers to Soar | Property Subdivision | Scoop.it

Excerpted from the article:

The number of properties expected to go under the hammer in Melbourne and Sydney is hurtling towards record highs.

While the peak numbers being predicted vary from analyst to analyst, there's general agreement that after the October long weekend there will be a surge in properties selling via auction.

Dr Andrew Wilson, the senior economist at Australian Property Monitors (a Fairfax Media company) says the market could peak with 1200 auctions in Melbourne and 700 in Sydney, near records for both capitals.

The Melbourne market will be affected by spikes as vendors shuffle dates of avoid the AFL grand final weekend this weekend and the Melbourne Cup week, which kicks off with Derby Day on Saturday November 2.

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In Sydney, Damien Cooley, of Cooley Auctions, is predicting auction numbers could smash previous highs and reach more than 800 in the harbour city on at least one Saturday before the year is out.

"Our numbers tend to represent about 10-12 per cent of a Saturday market and our record is 86 auctions," Cooley explains.

"On October 12 we're already nudging that figure and it wouldn't surprise me to see our business crack 100 auctions on an upcoming Saturday this Spring."

This weekend, there are 593 auctions scheduled for Sydney but just 47 planned in Melbourne due to the AFL grand final.

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Auction numbers to soar

Auction numbers to soar | Property Subdivision | Scoop.it

Excerpted from the article:

The number of properties expected to go under the hammer in Melbourne and Sydney is hurtling towards record highs.

While the peak numbers being predicted vary from analyst to analyst, there's general agreement that after the October long weekend there will be a surge in properties selling via auction.

Dr Andrew Wilson, the senior economist at Australian Property Monitors (a Fairfax Media company) says the market could peak with 1200 auctions in Melbourne and 700 in Sydney, near records for both capitals.

The Melbourne market will be affected by spikes as vendors shuffle dates of avoid the AFL grand final weekend this weekend and the Melbourne Cup week, which kicks off with Derby Day on Saturday November 2.

Advertisement

In Sydney, Damien Cooley, of Cooley Auctions, is predicting auction numbers could smash previous highs and reach more than 800 in the harbour city on at least one Saturday before the year is out.

"Our numbers tend to represent about 10-12 per cent of a Saturday market and our record is 86 auctions," Cooley explains.

"On October 12 we're already nudging that figure and it wouldn't surprise me to see our business crack 100 auctions on an upcoming Saturday this Spring."

This weekend, there are 593 auctions scheduled for Sydney but just 47 planned in Melbourne due to the AFL grand final.

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Grand Final Hasn't Prevented Melbourne Auction Sales

Grand Final Hasn't Prevented Melbourne Auction Sales | Property Subdivision | Scoop.it

There may have been fewer auctions this week due to the grand final but that has not prevented people buying and selling.

RP Data’s preliminary results include 63 auctions reported in Melbourne this week with 53 finding a buyer.

Across the broader market there have been 1,748 houses and units sold over the last week. The median sale prices have remained mostly stable with $462,000 being recorded for houses and $425,000 for units.

Over the same time the daily index recorded a 2.2% rise in Melbourne which was consistent with the 2.1% recorded in Sydney. Over the medium term Sydney has stronger price growth as different fundamentals apply.

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Buyer's Agents: Arguments For and Against

Excerpted from the article: 

Purchasing a property usually requires a fair amount of time for research, calculation, and consideration – which some buyers may not necessarily have. Buyer’s agents can represent a buyer in a real estate transaction, help negotiate for a better deal, and help you achieve your investment goals by looking for the right properties.

Property Observer spoke to Simon Buckingham from Results Mentoring,Wakelin Property Advisory's director Monique Wakelin and founder of Melbourne buyers agency Secret Agent Paul Osborne to gain different perspectives on buyers agents – whether or not you should hire them, and how to find the best one for you.

Buyers who have neither the time nor the inclination to conduct research and analysis on potential property deals should consider hiring a buyer’s agent to represent them, according to Buckingham.

In addition, an investor looking to invest somewhere away from home and does not want to spend time and money for travel could benefit from a buyer’s agent’s services.

Source Property Services's insight:

Like most investments, buying a property requires due deligence on your part. It's very imporant to have a clear idea of what you are looking for and what kind of funds do you have at your disposal.

We at Source Property Services offer advice to our clients based on key factors such as property assesment, market trends, choosing the right home loan, property potential etc.  

We are happy to answer your queries and offer the best advice we can. Call us on 1300 861 083. 

 

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Why do You Need a Licensed Surveyor When Subdividing

Why do You Need a Licensed Surveyor When Subdividing | Property Subdivision | Scoop.it
So why do you need to use a licensed surveyor when subdividing or realigning boundaries on your property? From a council point of view, surveys performed by unlicensed practitioners can compromise the future ...
Source Property Services's insight:

"Imagine building your dream home only to discover that part of your house or the shed out the back is actually on the neighbour's land."

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What to Look for When Buying a Property for Subdivision

Melbourne's Property Subdivision Experts! Visit http://sourcemeasubdivision.com.au/ to find out how we can help turn your dreams into reality! Allow us to ex...
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Home Loans Rise as Market Recovers

Home Loans Rise as Market Recovers | Property Subdivision | Scoop.it

Excerpted from the article: 

New home loans approved by banks and other lenders jumped by 28 per cent to $79 billion in the June quarter, amid growing signs of a recovery in the residential property market.

Official figures released today put Australian lenders' total exposure to residential property at $1.13 trillion, an amount that has increased by 7.3 per cent in the year to June.

New lending, however, is expanding much more quickly than the banking sector's total exposure to property, because many borrowers are using low interest rates to pay off their debts more quickly, taking older loans off banks' books.

The Australian Prudential Regulation Authority said lenders had approved $79 billion in new loans during the June quarter, which was 28 per cent more than they approved in the previous March quarter and 20 per cent more than a year earlier.



Read more: http://www.theage.com.au/business/new-home-loans-jump-as-market-picks-up-20130827-2snra.html#ixzz2dE1g5Uj9

Source Property Services's insight:

Welcome news for the property market. 

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7 Things to do if Your Property Doesn't Sell

7 Things to do if Your Property Doesn't Sell | Property Subdivision | Scoop.it
Your house has been dwindling on the market for months, even years, yet nobody wants to bite. What's going wrong - and more importantly - how can you turn it around?
Source Property Services's insight:

Or you can explore the option of subdividing your property. This will not only make your property more attractive for potential buyers, it'll fetch you a much better price. 

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A Simpler Planning Permit Process?

A Simpler Planning Permit Process? | Property Subdivision | Scoop.it
A new faster way of dealing with low-impact, straightforward planning permit applications known as VicSmart planning assessment
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Melbourne Auctions Jump to 3 Year High

Melbourne Auctions Jump to 3 Year High | Property Subdivision | Scoop.it

Melbourne's auction clearance rate came in at around average over the weekend, representing a turnaround for a city where rates had been trending down. 

Source Property Services's insight:

Clearly another sign of market recovery.

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