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In 2025, How Will Australians Realise the Great Australian Dream?

December 23, 2022 / Sylvia G. Thompson

There has been a lot of chatter about an “Australian property bubble.” But does ‘what goes up, must come tumbling down’ truly sum up what will happen to our real estate market in the future?

Our buyers agent sydney investment strategies make winning the only option for our property investors. We make property buyers benefit both from on and off-market properties. Our buyer’s agent strategies are unique and they produce the desired results.

One thing we will make clear is that you shouldn’t focus so much on the noise in the media and around you; first try to reach out to your property buyers agents, real estate agents, or your buyer’s advocate in whatever capacity they are to you. To find out the market situation and how to profit from it.

What would happen if the housing market were to dramatically decline over the next decade, and what are the implications? What kinds of social, political, and economic repercussions may we see if the government doesn’t take action?

Balancing the act in Investment Property

We as a nation have reached a critical juncture. Within the same decade as the biggest global financial disaster in modern history, we are living through a time that few could have imagined.

The remainder of the developed world is still digging itself out of the muck; some nations are just now beginning to make some economic advances, but the vast majority have yet to see any kind of real resuscitation. You can read about What Makes a Good Sydney Investment Property by clicking here.

In the meantime, Australia has seemingly pushed on with great vigour, powered by government policies meant to encourage our most important and culturally beloved commodity: housing.

When you think about it, the retail, industrial, and service industries, as well as key infrastructure, all rely heavily on the security of brick and mortar.

Because of its persistent reliability as an asset class, real estate is a good choice for those seeking diversified growth and stable income flow.

Human behaviour has a huge impact on and is felt strongly in the housing market. It has its own dynamics and responds to changes in the prices of other commodities, as was recently shown in the aftermath of the resource boom in Australia.

The upsurge in the price of commodities in the Sydney property market.

Outback specks grew into bustling communities very immediately as a result of China’s unexpected, voracious demand for our resources.

Some businesses rode the wave to great success while others, including infrastructure and house building, went into overdrive. Communities popped almost overnight as the mining monsoon swept mercilessly through Sydney, northern Queensland, the Northern Territory, and Western Australia.

The rapidity with which everything unfolded. Which is among the primary issues during every boom. When it moves too swiftly, leaving other industries in its behind, it becomes more of a speculative thrill ride and carries with it greater danger.

When a certain industry suddenly booms, like the resources industry did in the beginning, it might be difficult to get all the related markets to move in sync with one another.

Rather, they are supported by the unique economic, political, cultural, and social foundations of each country and market. For this reason, it is sometimes impossible to decipher their motivations, and they act on their own accord.

Are those bubbles bursting?

Some journalists and economists predicted real estate would crash and burn, while others said our resources industry will continue to develop at double-digit rates thanks to China’s economic boom far into the 2020s. You can also read about Xi Starts Third Term With GDP Showing China Economy in Doldrums by visiting https://www.bloomberg.com/news/articles/2022-10-24/china-economy-shows-mixed-recovery-as-industrial-activity-climbs

Foreign economists in particular have been ranting about housing bubbles for years, stating that the growth of our thriving real estate market was and is unsustainable.

There have been rumblings recently that the resources industry might eventually die out if China’s economy slows to a more sustainable level.

So how does this relate to homes?

Many other industries were left behind as a result of the government’s heavy dependence on the mining industry during the resources boom in order to protect Australia’s economy from the fallout of the global financial crisis.

Some people suffered as a result of the mining industry receiving a disproportionate share of resources, including building and infrastructure funding. Consider the retail industry as one example.

Regulators in Australia have put themselves in a precarious position by focusing too much on the residential real estate market to offset the decline in foreign investment in the country’s other major economic sectors.

But what other option do they have? Just think of the political mayhem that would ensue if the value of everyone’s home plummeted by 30-50% overnight.

The Reserve Bank and other government agencies are having a hard time responding to the current economic uncertainty since it has coincided with a moment of profound social change in the United States.

Though interest rates are now at historic lows, the number of seniors in America is rapidly increasing as the baby boomer generation passes the torch to their children, many of whom have different priorities in life than their parents had.

What would define the Great Australian Dream?

Our way of life is shifting. In the ’70s and ’80s, the baby boomer generation was the centre of attention since they were the ones who pushed an unprecedented amount of urban development in their pursuit of the perfect suburban McMansion and weren’t concerned by the drive to work.

Sprawling family houses rapidly became dazzling social status symbols as people prioritised the needs of their growing families over other concerns, such as a need for more indoor space or access to the outdoors.

As a new generation embraces the café culture and realises that expanding job opportunities in and around our major city centres are most easily accessible from “on trend” inner urban postcodes, rather than via congested major arterials, the importance of physical size has diminished in favour of location.

Furthermore, today’s kids aren’t as gung-ho about getting some fresh air and exercise as their parents might hope; they’d rather stay inside, fire up the iPad, and experience everything they want to in a virtual setting.

It seems natural that more of us would return to living in our main cities, given this is where the majority of Australia’s commercial diversity, employment possibilities, and well-established transport, health care, and education facilities can be found.

Given the much-maligned affordability concerns surrounding areas like inner-city Sydney and Melbourne, it’s hard to determine whether our obsession with urban life will continue in the same fashion.

Affordable housing is a social good

In Australia, housing was formerly a marker of social standing, with the Great Australian Dream resonating as a beacon of hope for post-Depression baby boomers. The result would be an increased impetus for economic revival.

As the baby boomer generation passes the torch to Generations X and Y, there has been a noticeable cultural shift in how and where people choose to live.

However, many baby boomers had already begun to shift their views on the property from that of a ‘family’ home in the suburbs to that of a traded commodity in their investment portfolio that could assist support their coming retirement before this happened.

By allowing people to use the equity in their “family home” to buy other properties, baby boomers may have left us with the most lasting change to the way we see and interact with real estate.

These days, dollar signs and bank balances take precedence over sentimental notions of establishing a permanent residence for one’s family.

Consider the fact that in December of last year, investor-related property financing accounted for a record 41% of all loans.

Future projections

While it’s not simple to see where our love affair with real estate is headed, there are a few telltale signs that can help us get a sense of the future of our housing markets.

It all starts with the passing of the economic and social baton from the baby boomer generation to the next.

Since more and more young people, especially in ‘expensive’ inner city locations where purchasing brick and mortar is becoming increasingly difficult, are opting to rent instead of buy, the rental market is seeing both growth and expansion.

Lower- and middle-class families are becoming less likely to view homeownership as a ‘dream’ that is within reach, while higher-income earners are increasingly viewing property as a marketable, tax-effective commodity.

Conclusion

If the market is changing, now is the moment to be more strategic than ever with your spending, increase your return on investment, and plot out your long-term goals. Keep your wits about you and your self-assurance intact.

As of 2022 and beyond, according to reports by prominent buyer’s agents and real estate agents, it is expected that the Sydney property market would rise by 7-11%. Property Managers have also predicted a 4% increase, even in a less-than-ideal scenario. Rents have fallen in several suburbs, although overall price increase has been rather stable.

To know the best timing for the right property in the Sydney property market, and when to take the best opportunity in property purchase, our Sydney buyer’s agent recommends that you follow the right approach for your dream property. Contact the best buyers agency in Sydney for the best results.

At buyers agency Sydney, we always have the interest of our clients at the centre of our operations. Working with our experts at Buyers Agency Sydney, you can rest assured you are getting the best deals.

A Checklist for Owners of Sydney Properties Ahead of Winter

December 18, 2022 / Sylvia G. Thompson

Make sure your home is ready for winter by following this checklist. It’s never fun to rush inside to winterize your house right before a snowfall hits when it’s below-freezing outdoors. As Buyers Agents Sydney, we stress to our clients the need for routine maintenance throughout the year.

Our property Buyers Agent investment strategies make winning the only option for our property investors. We make property buyers benefit both from on and off-market properties. Our buyers agent sydney strategies are unique and they produce the desired results.

One thing we will make clear is that you shouldn’t focus so much on the noise in the media and around you; first try to reach out to your property buyers’ agents, real estate agents, or your buyer’s advocate in whatever capacity they are to you. To find out the market situation and how to profit from it.

It is a detailed checklist of everything that has to be checked before the cold weather sets in, including the structural and mechanical systems. After you’ve finished, you may sit back with a mug of hot cocoa or toddy in front of the fire. Who wants some marshmallows?

Get Professional Help to Assess your Property.

This initial stage is crucial, as it involves one of the most crucial systems that have to be ready for winter. If you live in an area that has cold snaps or winter storms, you may want to consider signing an annual contract with a reputable HVAC firm to have your system professionally cleaned and maintained, as well as receiving priority assistance in the event of a breakdown. Click here to read about In 2025, How Will Australians Realise the Great Australian Dream?

Remember to replace low-quality furnace air filters every few months with higher-quality filters. Make sure you or the service professional replaces the filter for the dehumidifier if your HVAC system has one.

Get Professional Help to Assess your Property.

You should expect to see a circulating pump connected to the boiler if you have a hot water radiant heating system. To maintain the bearings lubricated, you should remove the little oil cap and add 10 to 15 drops of 3-in-1 oil.

Every radiator has to have the air bled out of it using a specific key that can be found at any hardware shop.

Finally, make sure that all exhaust ports are clear. Venting for gas water heaters, boilers, and furnaces can go up a chimney or out a plastic pipe in the wall. The ducts in question must be clear of obstructions at all times.

A blocked vent reduces the effectiveness of the furnace and prevents gases from escaping. They can produce deadly levels of carbon monoxide if they get clogged or backed up.

Drain Outdoor Sinks

In the colder months, uncovered pipelines and outdoor faucets are especially at risk. A pipe break may occur if the temperature drops below freezing or if a cold spell comes out of nowhere. This type of maintenance is typically quite costly to repair. Take away any hoses you may have attached to your outside water sources.

If there are inside shutoff valves supplying water to the external faucets, turn them off. Don’t forget to turn off the water supply to the hose and any other outside fixtures. This will prevent any internal leaks from forming due to frozen water.

Cover Any Exposed Pipes

Make sure you get an insulated sleeve designed specifically for this purpose and wrap over any exposed pipes in unheated areas such as attics, crawl spaces, or walls. Take, for example, a broken pipe in a basement or crawl area.

Turn Off Sprinklers for the Winter

You must remember to turn off the sprinklers and store them for the winter. If you contract this work out to a landscaping company, make sure they finish before the first frost. The month of October is a good goal for most homeowners in the DMV (Maryland, DC, and Virginia).

It seems that draining sprinkler systems is a simple matter of draining off the water once the water supply has been turned off, provided that the drain is large enough and the individual has faith in their own abilities. To avoid expensive repairs in the spring, all water must be blasted out of the pipes as per the system’s recommendations.

Take a Look at the Roof’s Condition

Using binoculars on the ground or bringing in experts, you may potentially assess the state of the roof. See whether there are any missing or damaged shingles on the roof. It is imperative that they be replaced quickly. To prevent leaks in the roof or chimney during the winter, make sure the flashing is in good condition.

Check the Chimney and Clean the Cap

It’s common practice to light up the wood stove or the gas fireplace during wintertime. If you use your fireplace frequently, you should have the chimney flue cleaned by a professional once a year. The top of the chimney, known as the crown, should be undamaged and slanted away from the flue liner. Remove any nests from the chimney top and clean it thoroughly. This will prevent animals like birds, squirrels, and raccoons from making your chimney their home.

Gutter Maintenance

Get rid of any filth or leaves that may have accumulated in your gutters. This will reduce the likelihood of gutters becoming damaged due to freezing, weight, and a buildup of leaves, which can lead to costly gutter repairs.

Ice damming happens when water collects in your gutters and freezes there because of a blockage, and clean gutters may help alleviate this problem. When the ice melts, it can seep beneath the shingles and cause water damage to the walls within the house. You can also read about the Importance of gutter cleaning in autumn by visiting https://www.racv.com.au/royalauto/property/maintenance/importance-to-clean-gutters-autumn.html

Preserving Your Snow Blower, Lawnmower, and Other Power Equipment

When feasible, bring lawnmowers and other power tools indoors for the winter. Empty the fuel tank of any gas-powered tools, such as a lawnmower, before using them.

The next best thing is to run the engine for a few minutes after adding the engine stabilizer to the remaining fuel in the tank so that the stabilizer can reach the carburetor. This should ensure that power tools may be started up without any issues come springtime.

Make sure your snow thrower is in good working order. Get it fixed before the month of October is over if it isn’t. If you don’t, you’ll be kicking yourself the moment it starts to snow.

Keep Outdoor Furniture Covered

Waterproof, sturdy, and appropriate coverings should be used to protect expensive outdoor furniture. The interior should be kept in storage if at all feasible. This greatly extends the lifespan of patio furniture.

Conclusion

At buyers agency Sydney, we always have the interest of our clients at the center of our operations. Working with our experts at Buyers Agency Sydney, you can rest assured you are getting the best deals.

What Makes a Good Sydney Investment Property?

December 18, 2022 / Sylvia G. Thompson

Making a bundle rapidly through real estate investing is quite unlikely. If you’re thinking about them, you need to ask yourself more questions than just “how much money can I spend on a house?”

In contrast to other forms of investing, real estate is dependable. Investing in stocks and shares exposes you to the risk of suffering a significant financial loss in as little as a week. Investment property offers more stable profits over the long run.

Our Sydney buyers agent investment strategies make winning the only option for our property investors. We make property buyers benefit both from on and off-market properties. Our buyer’s agent strategies are unique and they produce the desired results.

Investing in the incorrect property will not provide a profit. This issue may be avoided by searching for the following qualities in good property investment.

Desirable Location in Sydney property market

Everyone will tell you that the location of a property is the single most important factor in its value. Since that is accurate, that is the case. The question of “how do I discover the perfect suburb for me?” is of paramount importance. However, it’s important to choose a location that will attract tenants.

The answer to this question depends on the type of renters you’re seeking. As an illustration, it’s helpful for families if there are places like schools and entertainment centers in the area. Access to the city is a must for today’s young professionals. Your investment will benefit greatly from your property’s proximity to such amenities.

You can’t compete with investors who can meet renters’ needs by charging higher rents. The question of expansion is equally important to think about. Check out the health of the local economy to get a feel for the area. You can read about A Checklist for Owners of Sydney Properties Ahead of Winter by visiting http://californiahomes-mls.com/a-checklist-for-owners-of-sydney-properties-ahead-of-winter/

A region’s potential for development is reflected in its ability to provide or prepare for, a high quality of life for its residents. In addition to safe neighborhoods, you value thriving commercial and academic establishments.

If your building is in a bad neighborhood, you can’t charge as much in rent. Moreover, if you invest in a region that is falling, you will incur losses when you eventually sell.

Cost of Purchase

Simply asking, “how much money do I have to spend on a house?” isn’t enough of a question to answer when deciding on a purchase price. Keep in mind that the ultimate goal is financial success. You shouldn’t feel obligated to spend more just because you can.

In this case, it might be instructive to examine the ratio of the property’s asking price to its true market worth. The real worth of a piece of property may be measured by its intrinsic value. Yield and growth potential are two of the many aspects that go into establishing it. Ultimately, the amount you pay to acquire the property is known as the purchase price. This pricing can be affected by a variety of factors, including the quality of your buyer’s agent and the incentives of the seller.

In most cases, this is the norm. There needs to be a discount between the asking price and the property’s true market worth. That’s how money can be made. Only through investigation can you learn the true worth of the property. Do your research and try to find homes that are listed for less than they’re worth.

Minor Defects

As a feature, this one appears out of place. However, finding the property’s minor problems might lead you to a fantastic investment opportunity.

The procedure is as follows. The vast majority of shareholders consider even minor defects to be deal breakers. Numerous people are looking to invest in homes that can produce a quick return on their investment. After making the initial investment, they have little interest in making any more.

That’s why it’s a good idea to hunt for imperfections when there’s less competition. The crucial aspect here is that the defect is easy to repair. Spending months on a home renovation project is not a good idea since the return on investment will be low.

Instead, try to pinpoint a few minor flaws that detract from the property’s appeal but are easy enough to rectify. Then you should make the necessary repairs. The property’s worth increases instantly, and it becomes available to a wider range of potential renters and purchasers. Moreover, your final cost will likely be lower than you had anticipated.

Simple Care

What about the most common blunders that people make when purchasing a rental home? It’s like buying something without knowing the answer to a question: When purchasing a home, what other fees can we expect to pay?

The expenses of an investor go well beyond the payment of a mortgage or the price of a lawyer. The upkeep of the property is also your responsibility. Tenants won’t be interested if you don’t keep up with repairs.

Having a terrible service reputation will also hurt the property’s potential to produce a profit. Because of this, a fantastic investment property has little upkeep needs. There shouldn’t be a significant monthly cost to keep it running, beyond the bare minimum.

Maintenance costs are magnified for expensive homes. There are several machines and mechanisms to monitor. More expenses are created, decreasing your profits. What we mean by “low maintenance” in this context is a property that won’t eat away at your savings due to repairs and upkeep costs.

Select a home that doesn’t have frequent maintenance difficulties to save time and effort. Click here to read about Challenges to Aging in Place: Understanding Home Maintenance Difficulties.

A Favorable Rate in Contrast to Cost

Okay, now let’s get into some of the nitty-gritty of the money side of things. Those of you who are investing for return must choose what rent to charge. This is the end goal, so let’s go to it. The annual rent you charge tenants should be no more than five percent of the sum you paid for the property.

So why is it really a big deal, anyway? Most people in rental agreements think carefully about whether or not purchasing a home would be a better option. A person who pays too much in rent each month might be better off saving up for a down payment on a home.

A reasonable rent-to-cost ratio should be maintained to avoid this. Assume, for the sake of argument, that you spend $500,000 on a home purchase. At a 5% ratio, your renters pay you $25,000 each year.

That’s not a little amount of money, and it’s not so much that renters will start saving for their own houses. You may provide a reasonable rent for the purchase price of the investment property if it is a good one.

If yours reaches 5%, you may wind up costing too much. This effectively shuts you out of the market and dampens interest in the home.

Existing Value

The housing market is very susceptible to prevailing societal trends. Each and every possible investor rush to cash in on the latest trend. Alternatively, fads in architectural styles may emerge. A rush of investors then buys up the company. Remembering this is crucial. Fashions change with time.

What is trending now might not be so much a week from now. So, don’t think you’ve located a terrific investment property just because it fits in with the latest fashions. The secret is to focus on the long term.

Find homes that are unique and interesting in their own right rather than ones that are popular because of a trend. The need of having ample closets and sleeping space remains constant. Favor these above fleeting fads.

This is not exclusive to any one business sector.

Property values tend to increase when there is significant manufacturing in the area. This occurred during the mining boom in Western Australia. Masses of people migrated there because employment opportunities were plentiful. As prices rose, happy sellers and investors rubbed their hands together.

The boom finally petered out, though. Investors who had acquired homes during the boom were hit hard. Western Australia saw a decline in property prices as residents left the state. They were forced to reduce rent, which impacted their ability to pay their mortgage.

As the real estate bubble in the state crashed, repossessions rose. So let me explain. Investments based on anticipation of future economic growth are risky. Real estate investing is a long-term play. Investing in a place where the economy is highly dependent on a single sector is a high-risk proposition.

Your money might go down with the ship if that business sector tanks. Try to find investment opportunities in areas that are home to various businesses.

The Minutiae

In addition to these major considerations, your rental property also has to provide the conveniences that tenants value most. Tenant preferences are heavily influenced by the availability of storage space.

A wonderful investment property may be improved by something as basic as shelf space on the walls. The availability of contemporary conveniences such as kitchens and toilets is also important. The bedroom sizes vary as well.

Furthermore, if the exterior of the home is unappealing, it will be difficult to find a buyer. The good news is that you can influence many of these minor details. The ability to care for them on your property is still crucial.

Conclusion

As of 2022 and beyond, according to reports by prominent buyer’s agents and real estate agents, it is expected that the Sydney property market would rise at 7-11%. Property Managers have also predicted a 4% increase, even in a less-than-ideal scenario. Rents have fallen in several suburbs, although overall price increase has been rather stable.