5 Reasons to buy Property in Sydney

Buyers Agent Sydney
Sydney is the largest, strongest and most expensive property market in Australia. Growth has been so significant over recent years, it’s become a common worry that Sydney property is now overpriced, with many people believing it’s the wrong time to enter or invest in the market. Sydney is one of the most desirable places to live in the world, and there’s no denying that the amount of people looking to buy property is substantially higher than the supply available on the market. This means buying a property in Sydney can certainly be challenging. But, there are plenty of legitimate reasons Sydney is still the perfect place to buy.
1. Capital growth continues
Sydney’s property market has experienced phenomenal growth over the last three or four years. Although the market began to show signs of slowing at the start of 2016, and there was talk of the property bubble coming to an end, investors need not worry, as the figures are still demonstrating clear growth. According to CoreLogic RP Data, dwelling values in Sydney rose by 3 per cent for March, 5.8 per cent over the quarter and 13.9 per cent over the year. Low interest rates and renewed confidence after the election means growth is not expected to end anytime soon, so now is still the perfect time to invest in Sydney.
2. There are still bargains to be snapped up
While strong growth is still being seen in the Sydney property market, it doesn’t apply to all suburbs. There are still some bargains to be had – you just need to know where to look. In the inner city areas, as well as the Eastern suburbs, record prices are being set on a regular basis. But Sydney’s outer ring and western suburbs are not showing the same sort of growth, and still offer opportunities for the astute buyer. Research is key to being able to snap up the right property. Knowing the right suburbs, the right streets, the current infrastructure and any infrastructure planned will give you the clearest view of your options.
3. An apartment boom
Australia is experiencing a monumental apartment boom at the moment – the biggest ever – with more than 270,000 new apartments currently being planned or constructed across the country. More than 88,000 of these will be in Sydney. While extra housing and development can be great in terms of providing better choice for buyers as well as renters, this sort of influx of new apartments can also have some downsides, with a tendency to increase vacancy rates and push rental yields down. Yet these risks are not seen to be relevant to Sydney. The Commbank Property Insights report indicates that the apartments planned in Sydney are spread proportionately across a large number of suburbs, meaning there will be a greater depth to the market, yet without the risk of there being an oversupply of housing, or negatively impacting vacancy rates.
4. There’s no need to hold back for the market to steady
There is a perception amongst many that you should wait for the market to be at its best before you consider buying. But, that’s not necessarily true. If you’re looking to buy property as an investment, and you’re willing to look at it as a long-term investment, it’s not so important whereabouts in the cycle you decide to jump in – it’s more about when you get out. Property value tends to double within a 10 year span, so If you’re prepared to hang on to your investment for a while, you can still make significant capital gains no matter what you paid for it initially. If you’re a first-time buyer, and you’re ready to go with your deposit, don’t hold back. As long as you take the time to really understand what your spending limits are, and don’t overstretch yourself financially, it’s better to jump in now and start reaping the rewards of capital gain, rather than wait till the market steadies or drops.
5. Quality of life!
With some of the world’s most iconic architecture, a thriving city and business centre, funky inner-city suburbs and and countless beachside suburbs to choose from, Sydney offers a quality of life that is hard to beat. In fact, Sydney is officially recognised as one of the best cities in the world to live – placing tenth in the 2016 Mercer Quality of Living ranking, and ranking higher than any other Australian city. So what makes Sydney so special? Sydney is home to one of the most beautiful harbours in the world; it has a fantastic climate that translates to long summers and sunny days, and, as a true multi-cultural city, it has a fantastic arts and culture scene to explore. The food and café culture in particular is outstanding, and each year Sydney puts on a New Year’s celebration that rivals the best in the world. Being surrounded by beaches, Sydney is a city that embraces sun, sea and sand, and it’s a city that offers some of the most special and unique lifestyle opportunities for anyone who lives here.
Be prepared
For many, finding the perfect property in Sydney might seem a daunting prospect, but with the help of a professional buyer’s agent, it’s still possible to find your dream home and not have to pay over the odds for it. Here at TBAS®
we can help you navigate the process from start to finish. We’ll give you valuable insights into the current market trends, help you to understand which suburbs are possible for you to buy in based on your budget, and we can even introduce you to opportunities that are not on the market.
Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
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PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304

Buying Property in a SMSF

Benefits of buying Property in SMSF

​Some of the potential benefits of buying property through a SMSF include the fact that the fund will pay a maximum 15 per cent tax on rent from the property.  On properties held for longer than 12 months, the fund also gets a one third discount on any capital gain it makes upon sale.  The remaining two thirds are then added to the fund’s income and taxed at the funds rate of 15 per cent, effectively providing a ten per cent tax rate.

Also, once fund members start receiving a pension at retirement – assuming they’ve held onto the property this long – they’ll pay no tax on either rental income or any capital gains tax when they sell.

Setting up the SMSF

​If you want  to buy a property in your Self Managed Super Fund (SMSF) it is best to setup the SMSF prior to looking at properties, as the process can be quite lengthy.

​It is important to do your research. A good place to start is The ATO website https://www.ato.gov.au/Super/Self-managed-super-funds/

​There is a company called Squirrel SMSF who I can personally recommend, that will help you set up the fund at a reasonable rate, attend to all your fund’s annual compliance requirements and has established direct arrangements with a number of Lenders allowing clients to easily apply for an SMSF Loan online.

​Rules to consider

There are strict rules governing what money borrowed through an SMSF can be used for.  For example, spending borrowed money on repairs and maintenance is ok, but spending borrowed money on anything deemed to be an ‘improvement’ is not allowed.  While improvements to the investment property are allowed, they must be funded using other money in the SMSF (such as money from member contributions) and not any funds the SMSF has borrowed.

You can NOT purchase your family home in a SMSF, as this would contravene the ‘sole purpose’ test and put your SMSF in danger of non-compliance. Your SMSF needs to be a arms length.

Interested in buying a property in your SMSF?

Get in touch to get started today

Our Fee’s

​After understanding what your needs are, and agreeing on a brief for us to work to, a small retainer fee is payable to engage our services. We also charge a flat rate success fee for properties under $1 million and a small percentage over $1 million,  which is only payable upon the purchase of a property that you love. There are no other hidden costs, and as we are boutique agency, our fees are very competitive.

Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
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PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304

Seven Secrets from a Sydney Buyer’s Agent

Buyers Agent Sydney

Rodney McL Photo Size 2

A  N O T E  T O  S Y D N E Y ’ S  P R O P E R T Y  H U N T E R S
Buying a house is one of the most exciting – and stressful – purchases you can make. I’ve supported hundreds of property hunters through this process and spent years finding ways to make buying the right property easier. I’m also well aware of common mistakes that end up costing people time and money.
So I want to share some of the most valuable things I’ve learned with people like you – buyers and investors who want to make the most of Sydney real estate.
Sydney is home to one of the most competitive, fast-paced and occasionally ruthless real estate markets in Australia. In 2016 alone property prices rose 13.1% according to CoreLogic. That means they rose a whopping 67.3% over the five years between 2011 and 2016.
No wonder then, that for many people looking to buy their first or next property, it can feel like there’s simply no way in….
But there is. So long, of course, as you’re willing to take concrete steps to be more prepared, more informed and more negotiation-savvy than the other property hunters out there. In this guide, I’ll show you how to become all of these things and more.
So, why am I giving away my buyer’s secrets? I’m hoping this information will make your property search that much easier. I’m regularly surprised by how many people don’t put the principles I’m sharing here – many of which should be common sense – into practice. Instead, they get carried away by the emotion and stress of the search.
And of course, I’m also hoping you’ll get in touch with the TBAS – The Buyers Agency Sydney team for our expert advice. After all, our clients rely on our experience, our connections with agents in exclusive areas and our direct access to off-market deals. We’re specialists in Sydney’s Eastern Suburbs and Lower North Shore and we cover every step of the process – from initial research to managing inspections, negotiating the best price, settling contracts, advice on renovating and tracking the value of your property over time.
So take a few minutes to read these tips. It could save you months of heartache and many thousands of dollars.
Here’s the link below to your copy of ‘Seven Secrets from a Sydney Buyer’s Agent’
Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
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PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304

 

 

Waiting for the Sydney Property Bubble to Burst?

Why not taking action could cost you Thousands!
The media often talks about Sydney property as though it’s a bubble – and one that could burst any day soon. It’s a powerful image, the bubble, and one that instills great fear in many would be real estate buyers who have watched property prices rise to record levels over the past few years. But it’s not necessarily an accurate one.
So, if you’re cooling your heels and holding back from buying your next home or investing in Sydney property, you could be costing yourself thousands of dollars. Here’s why.
1. No one knows what will happen next to Sydney property prices
Plenty of educated people have been predicting a fall in Sydney house prices for some time. If you had heeded their advice at the start of 2016 and held off buying in the hope of correction, you would have missed out on an average 13.1% growth across the 12 months according to CoreLogic’s figures. In other words, the property that would have cost you two million at the start of 2016 would have cost $2.262m by the end of the year. That’s the equivalent of more than $5,000 a week.
The reality is that no one can predict exactly when real estate prices will rise and fall or by how much. However, the long-term trend is very much in favour of property prices continuing to rise.
So, if you’re waiting for property prices to fall before taking the plunge, you may be waiting some time… potentially even forever.
2. A property bubble tomorrow? It’s the long-term that matters
Whether you’re buying a home or buying property as an investment, it isn’t what happens in the next weeks, months or even years that matters. It’s what happens in the mid-to-long term.
After all, if you’re buying a place to live in, chances are you won’t want to up and leave anytime soon. If you’re buying property as an investment, looking at spending some time in the market, will give you the chance to capitalise on at least one property cycle. These cycles usually last five-to-seven years.
It’s important to think in cycles because property prices don’t rise and fall uniformly. While the long-term trend for Sydney property is that it tends to go up, it usually does this in short bursts. For instance, if you look at the past decade, Sydney property prices were dipped in 2008-2009, rose sharply in 2010, were stagnant again and the rose sharply (but not uniformly) between 2014 and 2017.
As we said, no one can accurately predict what will happen to the property market. But if you’re in it for the long-haul you should ride out any short-term price dips. Even if you had bought just as the market dipped in 2008, you would still be well and truly ahead now.
In other words, the long-term risk in buying quality Sydney property is low. The great risk is not being in the market at all.

3. Sydney property remains a solid investment

Like all investments, property prices are set by the simple principles of supply and demand: so long as there is high demand and limited supply, property values stay high.
In Sydney, recent demand has been fuelled by a growing population, relatively strong economy and record low interest rates. Meanwhile, while there has been a lot of development recently – especially when it comes to high density apartments – the number of desirable properties on the market in good locations stays constrained. Add to that new transport links being added and the fundamentals look good.
On top of this, the government provides a number of tax incentives – such as a capital gains tax discount and the ability to offset interest repayments on negatively geared properties against income tax. These continue to make property an attractive asset for investors when compared to other options.
And, while there is talk of some of these incentives being scrapped in the future – especially if there is a change of government at the federal level – it’s likely any changes will apply to investors who buy after the change to the law, not before it.
If it’s an investment property you’re after, staying out of the market could mean you miss out on the tax relief other investors enjoy.
What goes up doesn’t always have to come down….
Finally, it’s always worth remembering that what goes up doesn’t necessarily have to come down – especially not over the long term. There are concrete financial reasons to get in as soon as possible.
So, while saving a deposit and doing your research is important. But it can also pay to act before you feel completely ready, even if that just means starting a conversation with a buyer’s agent at TBAS®.
Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
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PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304

First Home Buyers: Don’t miss your chance!

Buyers Agent Sydney
A look at the opportunity cost of waiting to buy.
Is a Sydney home out of reach for first time buyers? The market may be challenging but the costs of not buying now may be higher than waiting to save more towards your deposit.
As a first home buyer it can sometimes feel like you’re faced with an impossible task. How do you break into the competitive Sydney property market before the neighbourhood you want is out of reach? And how do you do it without overextending yourself financially?
Not buying can actually cost you money
The fact is that every week you don’t buy a home has a real cost. June figures from the ABS show Sydney residential property prices rose 14.4% over the year to March 2017. This increase is rivalled only by Melbourne, where prices rose 13.4%. Meanwhile, Brisbane prices rose just 3.5% and Perth prices were actually down by the same margin.
While some financial forecasters have since started talking about a ‘correction’ to Sydney property prices, the reality is that this change will be gradual and won’t affect many of the city’s more desirable locations across the east and north shore. With Sydney’s median property price now at just over $1 million, even another 10% increase by mid-2018 could end up costing buyers another $100,000, which equates to just under $2000 every week.
Could ‘rentvesting’ be your answer?
The ‘rentvesting’ strategy is steadily gaining traction with savvy first time buyers who want the best of both worlds. These buyers are purchasing investment properties in less expensive areas like Parramatta, the inner west and Sydney’s south, while continuing to rent much closer to the CBD.
This strategy not only allows first time buyers to start paying off their mortgage sooner, it also has potential tax benefits. If the rent you charge is less than the actual cost of owning your investment property after factoring in mortgage repayments and other fees, your property is ‘negatively geared’. This means a much bigger deduction to your tax bill.
Rentvesting also gives you time to use your investment property to build equity (the difference between what your property is worth and how much is left owing on your mortgage). When it comes time to buy your next property, your equity will be a factor that could make a big difference to the amount you can borrow, especially if your investment property has increased in value.
Consider the mortgage insurance factor
Many first time buyers are so focused on building towards a 20% deposit they forget about the option of using Lenders’ Mortgage Insurance (LMI). LMI allows you to borrow up to 95% of the purchase price by paying an extra fee that protects the lender if you default on your repayments.
Adding another cost to an already expensive home loan doesn’t appeal to everyone, but when you consider that you don’t have to pay Lenders Mortgage Insurance upfront, along with the fact that it could help you step onto the property ladder months or even years sooner, LMI becomes a much more compelling option.
Key first home buyer strategies
Along with rentvesting and LMI, keep these key strategies in mind when you start to seriously consider your first property purchase:
  • Prepare your budget and get home loan pre-approval so you can arrive at auctions and inspections completely prepared.
  • Find out about stamp duty concessions. NSW has now abolished stamp duty for homes up to $650,000 and offers concessions on homes up to $800,000.
  • Enlist the help of a buyer’s agent, especially when aiming to buy in a highly competitive area.
The Sydney real estate market is definitely challenging for first home buyers, but getting onto the property ladder isn’t impossible with the right strategies in place.
Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
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PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304

 

Is buying ‘Off the Plan’ a good idea?

Buyers Agent Sydney

What you need to know when considering a new build apartment.

Thinking of buying off the plan? Look beyond the marketing campaigns to consider the real pros and cons of an off the plan property.

There are plenty of arguments in favour of buying off the plan, whether you’re looking for your first property or planning to downsize. But along with the convenience and control comes a degree of risk. Here are the pros and cons to consider when buying off the plan.

Positives of buying off the plan

There are some real positives for Sydney buyers looking at off the plan apartments, with location top of the list. Buyers willing to compromise on size are often able to buy into the suburb they really want, dramatically reducing their commute. New apartment complexes are currently transforming Sydney’s CBD, but even in more family friendly areas like Randwick, North Sydney and the inner west we’re seeing plenty of new build activity.

Control is another big advantage for off the plan buyers. Often you’ll have a direct say in your apartment’s fittings, colour scheme, and be able to choose from a range of floor plans. You may also have more control when it comes to financing as many developers only require a deposit to hold your property until the build is complete.

Price is usually the other deciding factor for buyers considering off the plan properties, as developers tend to set their prices slightly below the local market average. The right price will be particularly compelling if you’re a first home buyer aiming to gain a foothold on Sydney’s highly competitive property ladder.

The downsides: Is off the plan worth the risk?

As with any property decision, it’s not all upside when it comes to buying off the plan. Some of the biggest risks for buyers include:

  • Depreciation: While your property may increase in value over time, external market factors such as oversupply can leave you with a property that’s less valuable than when you bought it. Research your market and get expert advice before you buy to guard against this.

  • Delays: Even the most organised developers will face delays on a new build. The question is whether this delay only amounts to a few weeks or months, or balloons into a number of years before you can actually move in. Check your contract for the ‘sunset clause’ to find out exactly how long your developer has before they’re legally bound to complete the build.

  • Not what you paid for: The biggest risk for buyers is ending up owning an apartment that has defects or doesn’t match up to the image the developers promised. It’s important to protect yourself by researching your developer and looking closely at your contract before you sign to make sure you’re protected if something does go wrong.

The alternatives to off the plan apartments

If the risks of buying off the plan seem too great, the good news is that there are still plenty of older apartments across Sydney’s east, lower north shore and the inner west to consider. There are character filled art deco apartments, or older, well-built, walk-up style blocks built between the 1960s-80s. There’s no trouble with oversupply, and while they’re in smaller blocks, these apartments can be just as spacious or even bigger than their newer neighbours, with the added advantage that you can see (and touch) exactly what you’re buying.

Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
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PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304

How a Buyer’s Agent can help you downsize

Buyers Agent Sydney

Your guide to common challenges and solutions for Sydney downsizers.

Downsizing offers the chance for buyers to liquidate cash and gain lifestyle benefits as they move into a smaller property. But there are also challenges, especially when buying in Sydney’s more competitive markets. Here’s your guide to the difference a buyer’s agent can make when downsizing.

The market challenges for downsizers

Many Sydney downsizers are looking for a property that offers the full range of lifestyle benefits. They’re focused on 2-3 bedroom apartments in sought-after locations such as the eastern suburbs or lower north shore, ideally with courtyards or generous balconies. Townhouses and terraces in these areas are also increasingly popular due to the fact that they offer a low-maintenance property with an added degree of privacy.

While properties that meet these criteria do exist, downsizers routinely face challenges in terms of:

  • Quality: Hasty new developments are common, along with apartments and townhouses that require extensive renovation.

  • Price: Those who own high quality properties know they have the upper hand and tend to price accordingly.

  • Supply: When reasonably priced, quality properties do enter the market, savvy buyers move in quickly – sometimes before a public campaign has begun.

  • Hidden costs: Even with the government’s new $300,000 super contribution incentive for older retirees selling their family home, there are plenty of other costs involved in downsizing including legal fees, stamp duty, moving costs and strata/body corporate charges.

Why off-market sales matter in Sydney

In this tightly held section of the Sydney real estate market, having access to off-market sales through a buyer’s agent opens up a much wider range of opportunities. Buyer’s agents have knowledge of properties that are about to be advertised (pre-market sales) along with access to multiple real estate agencies databases of sellers who are only willing to negotiate privately (off-market sales). As a downsizer, a buyer’s agent not only gives you direct access to these sellers, but also supports you in your negotiations for the best possible sale price.

How a buyer’s agent saves time and money

Experienced buyer’s agents understand that their role is to listen to the specific needs of their client, save them time by shortlisting only appropriate properties, and save them money through expert negotiations with the seller. They also know that downsizing can be advantageous for buyers across all areas of the market – it’s not just a strategy for high-end buyers.

Due to their knowledge of the downsizing process, buyer’s agents can also provide advice on common areas of concern, such as:

  • Is a unit or townhouse a good investment overall?

  • Which markets should I focus on for maximum capital growth?

  • What are the fees and levies I need to be aware of? E.g. How much should I expect to pay in body corporate fees?

  • How do I deal with practicalities like timing my sale/next purchase, negotiating settlement and storing my possessions in the interim?

Downsizing in Sydney can be daunting, but with the right agent in your corner it can also lead to increased financial freedom. For advice on your next move

 

Call us on 02 9363 3239 for an obligation-free consultation or EMAIL US
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PO Box 49 Double Bay NSW 1360
P: +61 2 9363 3239 M: 0418 474 304