28 suburbs have been tipped to enjoy above average 2015 price growth: NAB Survey

Brisbane (5.7%) and Sydney (4.1%) are expected to lead the market for capital growth in capital cities over this year, followed by Melbourne (2.7%), Adelaide (2.1%) and Perth (1.8%).

Then in 2016 the NAB Group Economics forecast Brisbane (3.8%), Sydney (2.3%) and Melbourne (2.3%) to remain the best cities for capital gains in the year to end-2016, with house prices rising by just 2.2% in Adelaide and 1% in Perth. 

The latest NAB report identified 28 suburbs within the capitals that are tipped to enjoy above average capital growth (click on the suburb name below to go to CoreLogic RP Data suburb data page).

No reasons are given for the selection. The forecast comes from a survey questionnaire on the Australian residential market to around 300 industry panellists. 

But with more signs emerging that the residential housing market is loosing steam, NAB Economics expects overall average capital city house prices to cool to around 4% over the year to end-2015 and 2% over the year to end-2016.

"Our assessment of the market remains that house price growth will continue to moderate because of rising unemployment, sluggish household income growth, affordability concerns, cost of living pressures and high levels of household debt," the report said.

"We are also forecasting two further interest rates cuts of 25 basic points in March and 25 bps in August 2015 (bringing the official cash rate down to 2%) which should support house prices a little more than previously expected."

The latest report shows the NAB Residential Property Index falling as house price expectations pared back and rents weaken.

The sentiment was softer in all states and still deeply negative in WA. 

SURVEY HIGHLIGHTS:

1. NAB Residential Property Index fell to +12 points in Q4 (+19 in Q3). NSW overtook QLD as strongest state; sentiment notably lower in SA/NT and still deeply negative in WA. QLD and VIC most optimistic looking forward and WA weakest by some margin.
2. Outlook for house prices over next one to two years pared back in all states (NAB also expects price growth to slow). Expectations for rents unchanged, with mildly stronger expectations in VIC and QLD masking softer outlooks in NSW and SA/NT.
3. Foreign buyers in new property markets less active in all states, except VIC where they accounted for 32.5% (or one in three) of all sales - a new high. Around 17% of first home buyers in the new property market were for owner occupation and 8% for investment.
4. Around 53% of foreign purchases were for apartments, 31% for houses and 16% for re-development. By price point, 40% of purchases were between $500,000 to less than $1 million and 29% less than $500k. Around 5% were for premium property ($5 million plus).
5. Housing affordability, construction costs and a lack of development sites seen as the biggest constraints in new housing market, while employment security and price levels the biggest impediment to buying established property.
6. Established property dominated by owner occupiers (42.6%). Local investors account for 22% of total demand, with FHBs (owner occupier) 16.1% with FHBs (investor) 9.3%. Foreign buyers more active (8.7%), led by NSW (11.3%) and VIC .(12.8%).
7. Prospects for capital growth over the next 12 months were pared back at all price ranges in both the established housing and apartment markets in Q4, except for apartments valued between $1-2 million. 

Source: 

JONATHAN CHANCELLOR
NAB

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Australia Day whats on?

The Sydney Harbour Foreshore Authority is proud to once again bring Darling Harbour to life for you on Australia Day, as part of our commitment to supporting the NSW visitor economy.

There are so many ways to be Australian; celebrate them all at Darling Harbour with our program of family fun, festivities and fireworks!

We’re all about free entertainment! The kids will love the colourful Circus Playground at Palm Grove, where they can learn to juggle, hula hoop and stilt-walk.

Enjoy live world music as artists from the Culture Beats program return to the stage, showcasing sounds from traditional Cretan music to West African rhythms.

Watch out for musical lifeguards and kangaroos on stilts around the bay, and look out for a Bollywood flash mob, lawn-bowling swing-dancers and contemporary Indigenous performers busting out their best moves at Pier 26.

Witness a heart-warming twilight concert from The Voice’s Darren Percival, enjoy the official NSW Australia Day ceremony, catch international superstar DJ Havana Brown performing live at Darling Quarter, then be wowed by spectacular fireworks and music shows lighting up Cockle Bay and NEW location, Tumbalong Park. 

With all this and more on offer and so many bars and restaurants to choose from, Darling Harbour is the only place to celebrate our nation’s day with your family and friends.

Accessibility
An accessible viewing area is available at Palm Grove located at the southern end of Cockle Bay, opposite IMAX.

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How to: Apply for first home onwer's grant!

Many home buyers are eligible for government support through first home owner schemes, particularly those buying off the plan apartments, but each state has their own schemes in order to boost state construction.

Here is a breakdown of the current grants and incentives available in Victoria, New South Wales, South Australia and Queensland.

The New South Wales government has the New Home Grant scheme, which offers $5000 for off the plan homes valued at $650,000 or less and is available to both investors and owner-occupiers.

An application for the New Home Grant must be made within three months of the first signed contract and is paid as credit on the purchaser’s stamp duty.
If the stamp duty tax is greater than $5000, the difference between the duty and the $5000 grant is to be paid by the buyer, but if the stamp duty is under $5000, the grant is used and the buyer is not out of pocket.

The grant can be applied for more than once on multiple properties, however each property must be new and only one grant will be issued per property.

The New South Wales government also offers a First Home Owner grant of up to $15,000 for newly built or bought homes valued at under $650,000. The property must be the intended place of residence, as the buyer must live in the property for a continuous period of six months.

The New South Wales First Home Owner grant will drop down to $10,000 from January 1, 2016.

The Queensland government offers first home buyers building or buying a brand new home a $15,000 Great Start Grant for properties valued under $750,000.

To be eligible for the grant, first home buyers must move in within one year of the completion date and live there for a minimum of six months.

Applications can be made through the Office of State Revenue or through a bank or lending institution.

The South Australian government offers up to $15,000 for first home buyers building or buying a new property that does not exceed that value of $575,000.

As with other states, the property must be the intended place of residence for at least six continuous months.

Off the plan buyers may also be eligible for an off the plan concession, which provides a full stamp duty concession of up to $21,330.

To be eligible for the full stamp duty concession, contracts must be entered into before June 30, 2014, as after this date, only a partial concession will be paid until June 30, 2016.
The stamp duty concession is only available to apartments located within a certain area, so check the Revenue South Australia website for more details.

First home buyers building or purchasing a new home in Victoria are eligible for up to $10,000 as long as the value of the home does not exceed $750,000.

All states can apply for grants via the Office of State Revenue or through a bank or lending institution.

If applications for grants are made through the Office of State Revenue, the grant may be paid as soon as all necessary documentations are received.

For those applying through a bank or lending institution, the grant is generally paid on settlement.

onsideproperty.com.au

Information gathered from the Property Observer

Australian Housing the Worlds Most Expensive! ( And a further Rise in housing forecasted )

A major ratings agency forecasts Australian home price growth to slow, as the nation approaches an "affordability ceiling".

Fitch Ratings is forecasting 4 per cent growth in Australian residential property prices this year, down from around 7 per cent in 2014.

In its 2015 Global Housing and Mortgage Outlook report, Fitch finds that Australian homes are the third most expensive of the 22 countries it looks at on the level of prices compared with rents and also compared with incomes.

"Australian property remains among the most expensive on almost all metrics," noted the report.

"With almost 25 years of continuous GDP growth, record low rates and stable unemployment, Fitch expects Australian prices to remain high and affordability likely to slightly worsen in the near term before levelling off as it reaches an affordability ceiling."

Fitch notes that Australia has had the strongest price growth of any of the nations it looks at over the period since 1997, at nearly 390 per cent.

Despite this, Fitch's forecast of 4 per cent growth this year would put the Australian market third for 2015 increases behind South Africa and Brazil, both countries with much higher rates of general consumer price inflation.

In addition, Australia has had the highest level of new mortgage lending growth since 2007.
However, Fitch notes that Australia also has the highest level of mortgage prepayments, giving many borrowers a buffer if interest rates start to rise.

One area where Australian housing continues to fall is in home ownership rates, which have declined from 70.7 per cent in 2000 to 67.5 per cent, although this is a trend that has been observed in most developed countries, except Germany where ownership rates have traditionally been lower at just above 50 per cent due to favourable tenancy laws for renters.
While ownership keeps falling, it seems the supply of dwellings is finally starting to match demand.

It appears that, at worst, Australia's reported housing shortage will not worsen and, at best, it will improve, with Fitch forecasting a surge in construction to continue keeping up with strong population growth, mainly due to immigration.

Michael Janda ABC Reports

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JUST LISTED - FOR SALE - DULWICH HILL - THE DENISON BUILDING

Private courtyard apartment in a resort-like setting
THE DENISON - DULWICH HILL

 

 For Sale - Offers above $680,000

30/115-117 Constitution Road, Dulwich Hill

Perfect for relaxed living and entertaining, this immaculately presented courtyard apartment is secluded from the road amid the leafy garden surrounds of the sought-after Denison complex. With a villa-like layout and all principal rooms opening to a private all-weather courtyard, it features a resort-like vibe with direct level access to a sunny pool and entertaining area and the convenience of an on-site café. Just 200m to the Light Rail and Arlington Recreation Reserve, it's a short stroll to village life.

Two double beds with built-ins and courtyard access
Master with a walk-in robe and sparkling fresh ensuite
Spacious open living flows to a 24sqm approx courtyard
Smart granite gas kitchen with stainless steel appliances
Huge bathroom with laundry, reverse air, gas heating
Undercover access to secure parking, visitor parking
Sunny common pool with spa, pet friendly complex

Internal size approximately 80 sqm plus 24 sqm courtyard
Strata: $875 pq
Council:$276 pq
Water:$170 pq

 

Anthony Fung 1300 938 931

Ralf Baumann 1300 938 931

 www.onsideproperty.com.au
info@onsideproperty.com.au
PH:1300938931

 Onside Property Introducing Antony Fung 冯建东 - Sales Associate - Business Development Manager 銷售助理及業務拓展經理. Asian Market Alliance

 

 

Focused, hardworking and honest, Antony is a fresh new addition to our talented team bringing a strong work ethic and an honest and positive approach.

Combining genuine concern for his clients and taking time to understand their specific needs, he is a respected individual offering customer service that is second to none.

Antony is backed with more than five years sales experience and successfully operating and owner of a high end fashion brand, he recognises the importance of professionalism and customer care. The opportunity to meet new people and assist them with selling or securing there future home, as well as visiting an array of properties each day are aspects of Real Estate that particularly appeal to Antony.

Prior to his sales career, Antony earned his bachelor’s degree in Business (Accounting/Finance) with University of Technology Sydney, and subsequently worked in Asia for 10 years in the corporate consulting and banking sector.

Developing his analytical skill's and his attention to detail, and also his understanding of the growing influence of the many Asian/Chinese communities in Sydney. Clients that are (local/overseas) within the Asian/Chinese sector are what Antony will be appealing to.

Outside of work, Antony is an enthusiastic fitness fanatic who enjoys crossfit, running and tennis. He believes having a healthy life style is important to keep him driven and balance-minded.
Onside Property are proud to announce Antony's role within our company, and wish him all the very best for a bright career ahead!

Antony speaks fluent English, Cantonese and Mandarin

antony.fung@onsideproperty.com.au
www.onsideproperty.com.au
#Marrickville #dulwichhill #summerhill #canterbury #hurlstonepark #Newtown #Ashfield #Petersham #Camperdown #alexandria
#onsideproperty #realestate #asianinvestment #foregininvest  

Summer 2015

Onside Property Youtube Clip 

Looking back at 2014

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A happy tenant often means a happy landlord.

 When a landlord has a good relationship with their tenant, issues such as late or no payment of rent and damage to property may be minimal.

While this is obviously beneficial to the landlord, developing and maintaining a good relationship requires some work. It won’t be achieved by putting tenants into a property and then forgetting about them. Nor will it be developed by micro-managing and constantly checking on the tenants while they are trying to get on with their lives.
There are five key things to consider when developing and maintaining good relationships between landlords and tenants.

Attend to maintenance issues promptly

For tenants, how quickly a landlord attends to maintenance issues can be an indication of how the landlord views the relationship and values the tenant. Landlords who act promptly and keep their tenants informed of progress show that they care.
Responding quickly to issues that affect a tenant’s enjoyment of the property, such as broken water heaters, stoves or air conditioners, blocked drains or rainwater damage, is vital. It may take a few days for a tradesperson to undertake the repairs or replace a broken unit, but if the tenant knows that action was taken as soon as the issue was reported, it may help to ease stress levels. A follow-up call a few days after the repairs are made also helps develop trust.
Delaying repairs or maintenance can open a landlord up to a legal liability claim if a tenant or their guest is injured as a result. It may also send the wrong message to tenants.

Undertake regular inspections

Regular inspections are essential to ensure the tenant is looking after the property, and there may be requirements for inspections in your rental agreement or by law. It’s also an opportunity for a tenant to point out any maintenance issues the landlord needs to address. Regular inspections show the tenant that the landlord takes an active interest in the condition of their property and helps reinforce the conditions under which the tenant has leased their property.

Maintain positive relationships with tenants

Maintaining a positive relationship with your tenant can help to ensure that they remain cooperative throughout their lease agreement. Listening and carefully considering requests for changes to lease conditions and responding quickly to queries or concerns helps build rapport.
Requests to change lease conditions should be carefully considered and, if rejected, sound reasons should be provided in writing. There may be specific requirements about dealing with requests in your rental agreement or at law. Where routine maintenance needs to be undertaken, working with the tenant to determine the best time for the work to be undertaken is also good practice.

Consider the tenant's needs

If you’re looking to sell your rental property, your tenant’s lease should be a priority. Changes to the ownership of a rental house or unit can be a time of stress for a tenant, as it may destabilise their life and make their future less certain.
Give the tenant as much notice as possible that a property is going onto the market and work with them to determine the best way to go forward. If open-for-inspections are required, give tenants as much notice as possible.

Landlords may be entitled to raise the rent of their properties periodically, and you should check your rental agreement. No tenant wants to pay more rent, however, it is sometimes necessary to implement rental increases to cover the rising costs of maintaining a property.
Letting tenants know about a rental increase should take place in a timely fashion and in accordance with your rental agreement and other laws, not left until just before the lease expires. If a tenant knows in advance that a rate rise is coming and the reasons behind it are justified, they may be more inclined to stay.

Be realistic

Even the most careful of tenants can damage a property. Accidents happen and if a tenant has a good track record, there is nothing to be gained by adopting an unreasonable approach.
Landlords should consider having tailored landlord insurance in place in the event of the unforeseen. This may cover them for both malicious and accidental damage, although, if the landlord has a good relationship with the tenant, the chance of malicious damage may be significantly lessened.

Click below; 

5 Ways to Keep Your

Onside Property Website

Unemployment the key in 2015 house price direction

The onetime bearish strategist at Morgan Stanley, Gerard Minack, has addressed his housing market concerns in his first expansive interview since he went solo 18 months ago.

"When we get across-the-board unemployment then we’ll get an across-the-board downturn in house prices; it’s just a matter of time," Morgan Stanley’s former head of global developed markets and now publisher of Downunder Daily advised when asked by the Australian Financial Review on how vulnerable the housing market is.

"I don’t think there’s anything exceptional about our housing market, except that we’ve gone 23 years without a downturn," he added.

"Far better to take some excess out of the market now."

On monetary policy he suggested "you either get nothing or more than two [cuts]".
"If the leading indicators of employment roll over, then for me recession is the most likely outcome," Minack said.

"We have national domestic demand growth of 1%. Here in NSW it’s 4.5% while in the rest of the country it’s falling.

"We know this year that residential investment will contribute less to growth, we know car workers will start to get fired.

"We know mining capex starts to accelerate to the downside.

"The one thing that looks half-good are leading indicators of employment.

"The ANZ and ABS jobs ads, and the components of the monthly purchasing managers index, look OK.

"But if they roll over we’ve got a problem, and already we’ve seen them wobble, which is partly due to politics.

"One of the few areas of bipartisanship we’ve had over the past dozen years is both parties have agreed to be short term and second rate!"

When asked by the AFR's Patrick Commins what are the big global risks, Minack pointed to central bank credibility.

"If (European Central Bank president Mario) Draghi was a stock he’d be on a P/E of 200! (US Fed chair Janet) Yellen’s on 100.

"When that bubble pops, all hell will break loose again, and there you really just want to be in cash."
In October, Minack said while many people have been wrong calling a collapse in the Australian property market, he still saw the sector, along with investing in the major banks, as great risks to the economy in the year ahead.

“Australia has not had a housing bubble blow-up or a recession but let’s not forget at other times [market bears] have made money from it, so they are willing to give it another go.

"My advice is . . . I think it is a little too early. I think down the track this will be a problem.
"I’m not so sure you look for this to be a problem in Australia on a six-month view,” said Minack.

Minack's comments came just ahead of ANZ announcing its latest survey showed job advertisements rose a further 1.8% m/m in December to record their seventh consecutive monthly rise (in seasonally adjusted terms).

Job ads have now trended higher for 14 months and are up 11.4% over the year to December.
The ANZ chief economist Warren Hogan said the data was an encouraging sign that labour demand was firming.

"Annual growth in job advertisements is now at 11.4%, a moderate rate by historical standards but the fastest rate in over 3½ years.

"The improving trend in job ads appears to be at odds with the official employment data which continues to depict a rising unemployment rate.

"In all likelihood, this divergence can be explained by a higher than usual rate of job losses in the economy.

"The good news is that the economy continues to produce new employment opportunities.

"The bad news is that this has not been quite enough to counteract the flow of new workers into the economy plus the on-going loss of jobs in certain sectors.”

“As a result labour market conditions can be described as soft which will continue to cap wage increases.

"Together with the recent decline in oil prices, this will feed through to relatively subdued inflation outcomes through 2015.

"For monetary policy, the most likely course remains for the RBA to keep rates in a holding pattern for most of 2015.

"However a softer inflation outlook suggests the RBA could have a little more wriggle room than previously anticipated to support business and consumer confidence.

"Right now we think the best course of action is for the RBA to maintain a steady hand on interest rates.

"But with global energy costs falling substantially, and inflation likely to be lower than previously thought, there is increasing scope for Australian interest rates to fall a little over the first half of 2015,” Warren Hogan said.

Property Observer : Jonathan Chancellor

Onside Property > Click Website 

Property development and sales forecasted

Expanding on an article written by Harj signifies 2015 and within the years to come that the property industry within Sydney will still show a strong signs of progression. 

"As the Australian property market becomes more and more competitive, one real estate expert has explained how off-market property deals in Sydney are becoming increasingly commonplace.

Harj explaining "that many real estate deals are completed without a property even being advertised or marketed to the public. The first thing your average person on the street knows about the property being for sale is when hands have already shaken and papers already signed" 

As developers continue to battle for prime real estate across Australia, but particularly in Sydney, a huge number of these apartments will be snapped up before they are fully completed and before most people even know they exist"

Harj continues by saying;

“Many of his clients like to keep their financial dealings to themselves, and are mindful of potential negative impacts which can flow from having a high media profile.”

Developing strong relationships with property buyers around the world, particularly with wealthy developers in Russia, China and India is important he says, and I would have to strongly agree with him here.

Overseas buyers have played a big part in Australia’s booming property market and –  "if you thought 2014 was busy for the construction industry wait until next year; Sydney will become ‘crane city’.”

And Harj hit the nail on the head here, we are indeed going to see tremendous amounts for construction expansion. In 2015.

Great article 

Real Estate Snapshot for 2015 – Our Local Suburbs

Real Estate Snapshot for 2015 – Our areas

Click "ON" now!

With our offices now combining over seven locations and offering a tailored approach with state of the art systems and an IT savvy edge for the benefit of our owners, “ON” as we know it is ready to take the Inner West and South West areas by storm in 2015.

Joining our team for 2015 is Antony Fung and Martin Khoury.

Dulwich Hill

Current medium house price standing at $1,047,000, and in 2014 experienced a 15.74% property growth, Dulwich Hill is anticipating much more growth within the apartment sector. This will in turn effect the overall house price value and add substantial attraction to homes as they become much more appealing to buyers.

With many developments taking shape within the area and making Dulwich Hill a prominent area for property owners and investors to secure, Dulwich Hill I believe will experience continued growth within the years to come.

www.dulwichhill-realestate.com.au

Summer Hill

Current medium house price ending 2014 being $1,145,000 and during the year experience and staggering 23.95% property growth increase, this is largely due to the areas dynamic’s, Summer Hill has always been considered a great place to live. Developments on Liverpool Street, Lewisham and the ‘Buckle Factory” on Smith Street, have landmarked Summer Hill as a great Inner West playground for astute buyers and investors.

Summer Hill catchment zone is sort after, as buyers push to secure the property within this “School catchment” area, creating buyer frenzy within Summer Hill and iconic destination for families to live.

I believe Summer Hill will continue a rapid growth climb and stabilise towards the end of 2015.  

www.summerhill-realestate.com.au

Marrickville

Current medium house price is $905,000 year ending 2014, and Marrickville achieved a 9.37% property growth percentage. This is still above the capital average of 5%, and as we dip into 2015, Marrickville has much more growth within.

Marrickville has yet to have provided an attractive house price amount, Paul Salsano set the record in Holmesdale Street, Marrickville with an off market sale of a 3 bedroom terrace for $1,270,000. However, within a 6 month period the neighbouring property was sold at Auction for $1,575,000.

I believe Marrickville has moved further in growth within the apartment sector and we haven’t yet seen the growth to come within the home sector as there has been limited stock that was on the market within 2014. If my theory is correct, Marrickville will rival Summer Hill as an iconic area to live in! Keep an eye out for Marrickville!

www.marrickville-realestate.com.au

Canterbury

Canterbury house sector only received a 3.7% below average on property growth; however, Canterbury’s apartment sector with construction and escalating property prices has seen an overall spike in growth at 5.7%, still a much low recorded price record as much of these prices have not been published as yet, as the developments have not yet completed.

Canterbury would have to be on my top list for house prices, as this will influence and push house prices. However, there are sectors of Canterbury that are viable and that may adversely affect the purchase, therefore it is very important when purchasing your first home to make sure that you are buying in the right area!

www.canterbury-realestate.com.au    

Ashfield

With the leading suburb performer Ashfield with a staggering 25.29% property growth increase, Ashfield has been the silent performer and is still continuing this trend on the development front. Ashfield has sort after Victorian homes on large blocks of land and has an Asian flare with a cosmopolitan feel about it!

We are marketing a development within this area and have noticed that Ashfield is experiencing the same response with developer interest. And we have had to change our price list to adjust accordingly.

I believe Ashfield is on my top list with much more growth ahead within 2015!

www.ashfield-realestate.com.au

Written by Paul Salsano.

Managing Director 0433 230 000 or paul@onsideproperty.com.au

Information above is not to be treated as a sworn valuation, in accordance to market knowledge and general property information

Unit & Apartment buying, what to look for?

The question that every investor, first home buyer or property purchaser asks. 

Generally both have great aspects; however, making the right choice is the hard question that is always a difficult decision.

For many, buying an apartment to live or to buy would certainly be a life changing experience.

Essentially you have two buyers:

1. The Investor
2. The home owner

Both have two expectations and want to maximise their purchase regardless of the situation.

10 years ago I would’ve advised my clients to secure new apartments for the simple reason being “demand”. However market trends and property buying has reached an entirely new level, and I have some great pointers below on what the benefits are for individuals who may be scratching their head with uncertainty.
The new apartment or off-plan purchase

Buying new is a great way to take advantage of the government incentives on offer if you are a first home buyer, the OSR (Office of State Revenue) has the buying guidelines of new apartment incentives whether it being stamp duty exemptions or capital incentive to buy off the plan or new, there are some great incentives driving the property market into a buying frenzy. This, along with foreign capital injection and low interest rates is a recipe for a boom.

Here are some of the benefits of buying new apartments;

1. Brand new property with warranty inclusions
2. New apartments these days are approx. 55m2 for 1 bedders / 78m2 for 2 bedders / 95m2 for 3 bedders internally as oppose to older type strata complex’s that range in the 60m2 internal range for 2 bedders. Essentially they are built these days a lot bigger than 10-30 years ago.
3. Home warranty ( Subject to building height’s )
4. Tax depreciation and benefits
5. Possibility of growth when buying off the plan up until the apartment building settles
6. Flexibility
7. Buying a property with new technology, light saving devices, energy efficiencies and lower greenhouse affect
8. Securing where you want to be or where you want to invest
9. Having the security of what you are buying is what you have seen or been told is correct
10. Timing
11. Assessment of market growth and yields
12. Knowing the building company and reputation behind the product

13. Essentially hassle free of property issues 
14. Buying in the location you want to be for yield projection or simply to live
Here are some of the issues in buying new apartments;
1. Defects ( this is the most common problem of buying new )
2. Issues with the structural composition of the building 
3. Possibility of paying too much off the plan and losing money
4. The quality of the finishes aren’t what they are supposed to be
5. Noise or the apartment aspect and position are not what you expected. 
6. Water issues ( one of the largest complaints due to new dwellings and apartments, as water proofing was not completed to a satisfactory level, in most cases, this is not entirely the builders fault? Why? Because it is too hard to ascertain whether or not the water proofers have completed several layers of proofing) from a property management perspective, be mindful of this.
Whether buying off the plan or newly finished, the word “Perfection” is something buyers/investors need to dismiss, why? Because there is no such thing as a perfectly built new property, in some instances it’s neither the builders fault nor the structure. Every new property will have a minor issue, “it’s a fact”. 

Whether it’s a sloppy door handle or faulty dishwasher, there is always going to be a problem with buying new property. Even to the extent of “Movement” naturally our planet “Earth” as we know it plays another role on property. Rest assured there are plenty more issues that I can provide during my time of Real Estate I have observed some pretty gut wrenching issues. 

Therefore be mindful of who you are buying from, the builders reputation and the area you are buying in. Surrounding Infrastructure and overall size of the development can play a significant part down the track.
With my experience 90% of buyers that have purchased new apartments whether off the plan or completed have had no issues and made the right decisions. My advice is, do your homework and simply jot down the “Advantages” and “Disadvantages”, weigh these two side by side and you will have a better understanding and direction.

Buying an apartment (Unit) in a 10-30 year old building

Buying an older style apartment is very much like buying a second hand car, essentially you need to carry out an investigation, my recommendation is to put yourself in an “FBI mind-frame” and follow the below simple guidelines that will ensure your process of due diligence is carried out effectively and efficiently. The issues that occur with buying, is that many buyers tend to miss the boat for the simple reason of “time”. Timing is critical and as you know in today’s market you need to be on your “A” game when trying to buy a property whether it is “For Sale” or at “Auction”, because you will miss out.
There are some advantages that many tend to disregard when buying older type apartments actually they are called (Units) and buyers nowadays are in a rush and leaving the appropriate assessments leading to their purchase unnoticed. 

A few simple pointers to take into consideration;

1. Conduct a strata report, make sure you assess the raised issues such as;
- Defect works
- Upgrades
- Water proofing issues
- Water leaking
- Previous structural notes and claims
- Insurance claims
- The most recent AGM or raised owners corporation meeting that took place and what was it about?
- Recently adjusted levies?
- Break down of the costs associated with the building contract maintenance this is called the AGM summary or annual agenda. Try to look at any increase in fees and clearly ask the Strata company or manager what is was for and when? 
- Overall condition of the unit – is it in working order? 
- Pest and building report

Many pest and building reports are “templates” already mocked up by the assessor and during the assessment the inspectors input the main issues with a few adjustments depending on the condition and shoot it through. Some buyers are turned off straight away with the size and the pages of this report and in some cases do not proceed. Buyers are not builders and builders are not buying, they are basically covering themselves and note every issue in some instances irrelevant and off-putting to the buyer. When I personally ask an investor or buyer why have you taken so long to buy? In some cases this is what I believe has happened. 

The most important procedure to an inspection is for the builder to ascertain previous water damage or mould and penetration from this into the unit. The shell is covered by the owner’s corporation insurance; PLEASE carefully understand this (Strata is responsible for the wall under the layer of paint, the ceiling roof underneath the ceiling grid or paint, the floor concrete underneath the carpet and underlay ) So essentially, any water that is penetrating through the apartment is a strata issue. 

However, you are probably thinking why an older unit? So much to do and watch out for, this is the part and parcel procedure in buying the right way and will lead you to making a great choice because in actual fact there are many bonuses in buying an older unit.

1. The building foundation is settled and whatever issues have risen in the past are now fixed and working fine. Meaning, the building being that old has settled as a structure, when I studied building & construction, concrete to completely cure in strength can take up to 7-10 years. 
2. An established and excessive “Sinking fund” is already in place, in simple terms, you have access to other people’s money whilst having an opportunity to add value to the building and the owner’s corporation and advise them of upgrades that should take place, and in turn this improves the value of your property.

An upside they can advantage a buyer looking for an older style unit within a 10-30 year old block; 

If Building example “A” has 12 apartments and was built 30 years ago, no doubt the building would have been constructed on approximately 20% -30% of the land, (meaning the envelope of the land) was not entirely built to boundary. Ok confused? Have you ever walked into an older style apartment block and wondered why there is so much land and space around the building? Well in those days, regulations to build strata unit blocks were different to what they are today, and the reason for this is simple ‘Space”. Sydney had loads of space to build back then. 

Where this is an upside to buying in a boutique older style block is taking advantage of the sinking fund. My advice would be to attend all “AGM’s” and try to position your-self within the committee. Why? Because that sinking fund will benefit not only your property, everyone else’s in the building.

Older type apartment blocks had no lifts? And loads of communal space and staircase space, surely there would be opportunity to submit forward to the committee a proposal to include an “upside” installation subject to an engineer’s report and owners corporation approval add an internal or external lift shaft? And use the money to upgrade the look of the building? Benefit the building envelope where necessary by looking at increased balcony space, structural internal increases, even adding additional income to the owner’s corporation fund by using this fund to add value upgrade to the development by seeking architectural advice to possibly even add a dual occupancy granny flat or rear self-contained dwelling. Is this all possible? Yes why not! This is by far increasing the building value; in turn you are increasing value for every other apartment. The owners would be throwing the flowers on the ground you walk on. Does this sound all too hard? In actual fact it’s not, it’s simply doing your homework and doing it quickly. 

This information above is sort after advice from my Building, Strata, Development & Real Estate experience that I have ascertained over the last 15 years. 

Anything is possible when buying an older style unit, the opportunities are endless, moving forward most these buildings are becoming older and older by the year, therefore rest assured opportunities such as the above are available and can work, and thinking outside the general scope of buying is what my advice is for the apartment/unit buyer. 

Buying new and old has its up’s and down’s, however, if you are buying with a savvy approach and knowing the opportunities with a reasonable amount of homework, you will be fine. 

If you would like to discuss the above scenarios in depth, please do not hesitate to contact me.
Written by Paul Salsano 
Onside Property Group
Managing Director LIC BS
PH: 1300 938 931
MOB: 0433 230 000 

www.onsideproperty.com.au
www.dulwichhill-realestate.com.au
paul@onsideproperty.com.au