We are close to the pointy end of 2010 and it has been an interesting year for the real estate market in Perth.  2010 started out well, with properties generally selling within 40 days on average. The market started to slow in winter with the mining tax debate as well as the federal election. The Reserve Bank did not help the market with a number of interest rate rises. In November and December the average number of selling days exceeded 60 days and we are now in the middle of a strong buyers market not seen in many years.

I believe that 2011 will continue much in the same fashion as 2010 ended although it will then start to shift back towards a more balanced market so there is light at the end of tunnel. Average selling days  will drop as more buyers decide that they have sat on the fence long enough and will start making offers. Towards the end of 2011 the economy will again swing the Perth property market into something that somewhat resembles a sellers market. For 2011 I would not expect huge increases in selling prices but the trend of low to moderate increases in sales prices will start and continue into 2012.

Now is a good time to.....

Right now is not only a great time to buy, it is a fantastic time to find your bargain property. With record number of properties on the market and on the door step to the festive season, you can be certain that a number of vendors will be considering lower offers. There are some really good deals to be found if you know what to look for. You may not sell your property for as much as you would have in 2006/2007 but you will pay less for your next property so that is where you should be looking rather than focusing on selling your property for prices seen 2 years ago. There will always be great opportunities. It is just a matter of knowing what to look out for. What is right for you may not be right for the next person, so like anything else, it is worth doing your homework and speak to the experts. Speak to your mortgage broker about how much you can borrow, your accountant about how much debt you should take on and your real estate agent about where and what to buy......

RED ROSE HOUSE, the beachside home that's been purpose-built to be auctioned for Cystic Fibrosis Australia, CFA, is taking major steps towards completion.

The plumbing through the home is completed, the deck is being constructed off-site, the kitchen is under construction and all internal walls are expected to be sheeted by Christmas.

Community fundraising and donations of building services and supplies continues to make the three-bedroom two-bathroom coastal home at Malua Bay, NSW, a reality. A charity golf day coming up in Bega is sure to move the project closer to an anticipated April auction.

For more detail, contact Michael Skuse, LJ Hooker, on 02 4472 6455 or Terry Stewart, CFA, on 02 9878 5250.

We are close to the pointy end of 2010 and it has been an interesting year for the real estate market in Perth.  2010 started out well, with properties generally selling within 40 days on average. The market started to slow in winter with the mining tax debate as well as the federal election. The Reserve Bank did not help the market with a number of interest rate rises. In November and December the average number of selling days exceeded 60 days and we are now in the middle of a strong buyers market not seen in many years.
I believe that 2011 will continue much in the same fashion as 2010 ended although it will then start to shift back towards a more balanced market so there is light at the end of tunnel. Average selling days will drop as more buyers decide that they have sat on the fence long enough and will start making offers. Towards the end of 2011 the economy will again swing the Perth property market into something that somewhat resembles a sellers market. For 2011 I would not expect huge increases in selling prices but the trend of low to moderate increases in sales prices will start and continue into 2012.

Now is a good time to.....
Right now is not only a great time to buy, it is a fantastic time to find your bargain property. With record number of properties on the market and on the door step to the festive season, you can be certain that a number of vendors will be considering lower offers. There are some really good deals to be found if you know what to look for. You may not sell your property for as much as you would have in 2006/2007 but you will pay less for your next property so that is where you should be looking rather than focusing on selling your property for prices seen 2 years ago. There will always be great opportunities. It is just a matter of knowing what to look out for. What is right for you may not be right for the next person, so like anything else, it is worth doing your homework and speak to the experts. Speak to your mortgage broker about how much you can borrow, your accountant about how much debt you should take on and your real estate agent about where and what to buy......

Merry Christmas and Happy New Year.

In April this year, the National Housing Supply Council found there were 178,000 more potential home buyers than available properties.

By June 30 next year the gap is predicted to increase by 50,000, and the trends suggest the gap will reach 640,000 by 2029.

Other statistics, from the ABS this time, show that for more than four decades, around 70 per cent of Australians have chosen home ownership.

Interestingly the figure for outright home ownership - that is, people without a mortgage - has not been as stable over a similar period of time, with the figure fluctuating between 45 per cent in 1947 and 34 per cent on 2006 (having dropped to 32 per cent in 1976 and risen to 43 per cent in 1996).

This is not such an unpredictable outcome however when you think of the correlation between age and unencumbered home ownership; but, is all that predictability becoming less relevant?

Not that long ago, most people's idea was to have the house paid off by the time retirement came around.

It seems that the relationship between debt and life cycles has changed. Entering 'retirement' with a mortgage is often part of the plan.

Property investment is a strategy decision, and with the need for housing on the increase any higher interest rates will be factored in by investors who face only an over-tightening rental market.

At LJ Hooker we know how important your future planning is, and our team of sales, finance and property investment specialists is here for you through the festive season.

LJ Hooker has announced that the interest rate on its competitive 'Classic Home Loan' will remain unchanged until at least early February 2011 despite the Reserve Bank of Australia raising rates by 0.25% in November.

In a move challenging the offerings of the major banks, LJ Hooker will maintain the interest rate on its 'Classic Home Loan' at a competitive 6.65 per cent. It is available to all prospective home buyers regardless of whether they buy or sell through the LJ Hooker real estate network.

As a leading property and finance group, LJ Hooker is offering customers an alternative option to the banks by keeping its rates at the current level.

CEO, L. Janusz Hooker, describes it as providing customers with some financial relief over the Christmas season.

"Our customers will benefit from the stability of knowing their loan is fixed at 6.65 per cent until February next year which will offer them a reprieve over the holiday period, a time when household expenditure typically increases with Christmas spending."

The launch of the LJ Hooker 'Classic Home Loan' in July 2010 was an industry first with an Australian real estate company backing a home loan with its own brand.

The LJ Hooker 'Classic Home Loan' offers borrowers several advantages including no application fee, no valuation or redraw fees and no ongoing annual fee.

Consumers can choose fully flexible, price-competitive loans from the name they already trust for their real estate transactions.

Having the home buying and loan phases under the one roof offers borrowers a streamlined process, giving them the edge in securing their home loan at faster turnaround times than other leading vendors.

This full service solution means that home buyers do not have to go past
LJ Hooker for their financing needs. This not only offers greater convenience but strengthens the relationship between LJ Hooker and its customers.

For more information about securing a 'Classic Home Loan', visit ljhookerhomeloans.com.au call the dedicated customer centre on
1300 515 200 or speak with a finance consultant on your local LJ Hooker team.

We are close to the pointy end of 2010 and it has been an interesting year for the real estate market in Perth.  2010 started out well, with properties generally selling within 40 days on average. The market started to slow in winter with the mining tax debate as well as the federal election. The Reserve Bank did not help the market with a number of interest rate rises. In November and December the average number of selling days exceeded 60 days and we are now in the middle of a strong buyers market not seen in many years.

I believe that 2011 will continue much in the same fashion as 2010 ended although it will then start to shift back towards a more balanced market. Average selling days will drop as more buyers decide that they have sat on the fence long enough and will start making offers. Towards the end of 2011 the economy will again swing the Perth property market into something that somewhat resembles a sellers market. For 2011 I would not expect huge increases in selling prices but the trend of low to moderate increases in sales prices will start and continue into 2012.

Converting property to cash
If you are looking to convert your property into cash you are likely to find that you will receive around the same money as it was worth in 2006/2007. If the property was bought after 2007, there is a good chance of experiencing a small loss.

If you are looking to sell your home or your investment property and either upgrade or downgrade the overall situation does not change significantly. You may not sell your property for as much as you would in 2006/2007 but you will pay less for your next property and there are properties on the market that sell quickly, just not as many as before.

If you are thinking of selling and are thinking of what your property is worth, forget about what the next door property sold for in the past couple of years. Look at what has sold during the past 6 months and look at the competition in your suburb. If you think your home is worth $550,000 - $600,000 your property should stand out and present better than any of the other properties that are in the same price range as you.

As predicted by most economists, the Reserve Bank has left interest rates on hold at 4.75 per cent.

The RBA says after the increase on Melbourne Cup day and the subsequent rises beyond the official cash rate by the major banks, lending rates are a little above average.

"The board views this monetary policy setting as appropriate for the economic outlook," RBA governor Glenn Stevens said in a statement.

The board also noted inflation was set to remain steady over the next few quarters, suggesting the RBA was in no hurry to raise rates.

Last week's weaker-than-expected September quarter GDP number and a decline in retail sales in October may have also given the Reserve Bank a little more room to move.

But the Reserve Bank says there are factors putting upward pressure on interest rates, such as strength in the Chinese economy, increasing terms of trade, rising commodity prices and wages growth.

It balanced that with the risks to the local economy, such as eurozone sovereign debt issues spilling over into financial markets and cautious consumer spending.

The Australian dollar fell to about 98.90 US cents from about 99.10 US cents shortly before the decision was announced, but by 2.45pm (AEDT) it was buying around 99.05 US cents.

Given the decision was factored in by economists, the local share market barely moved after the announcement.

On hold, for now

Not one of the 25 economists surveyed by financial company Bloomberg expected the official cash rate to increase today.

But most economists expect the RBA will have to tighten monetary policy by the second quarter of next year, as the resources boom drives huge export earnings and could put a strain on the spare capacity in the economy.

"[The RBA is] suggesting no great need to rush in with another rate rise," CBA chief economist Michael Blythe said.

"But with the terms of trade, national income growing strongly, wages growth to pick up further, that still suggests higher rates at some point.

"We have February pencilled in at the moment, but that sounds a little soon and we may have to push that back a bit, sometime in the first half of next year."

UBS chief economist Scott Haslem is looking well beyond February for the next interest rate rise and is tipping there will be plenty of breathing space for home owners and retailers until the second half of next year.

"The RBA's assessment that 'over the next few quarters inflation is expected to be little changed', rising only 'somewhat', and the characterisation that rates are 'now a little above average', is a further reduction in the near-term urgency for policy," Mr Haslem wrote in a statement.

Su lin Ong, senior economist at RBC Capital Markets, also noted the RBA's statement was a little on the cautious side and thinks it will hold off until April.

"The case to hike further needs to be compelling, and amid conflicting data and continued global uncertainty we expect the RBA to stay on the sidelines for several months and anticipate the next hike in Q2," she wrote in a statement.

The Reserve Bank has raised rates four times this year.

It next meets on February 1.

From ABC

When selling your property, presentation is everything. It can add thousands of dollars to the selling price and it can help you sell your property faster as it will appeal to a broader range of buyers. If you plan to sell your property, you need to stand out from the competition with the assistance of a professional interior decorator. Fiona Hutchinson from Revive Design has been kind enough to share her top 5 tips on presenting your property for sale:

1. Style your home for sale. In today's market it is imperative that your property stands out from the crowd.  If your property is empty, it is well worth the cost to "dress" your home using hired furniture and accessories.  Visit display homes for inspiration or best of all call in the professionals.
2. Review your competition!  Visit home opens in your area. If you want your home to stand out from the pack then you need to know what the competition is offering.
3. Spring clean your property before your first open day and ensure that your property is cleaned again before each open day. 
4. Put aside a reasonable budget to make any minor repairs to your property.  Ensure all handywork is completed before your first open day.  Nothing puts a buyer off more than thinking that they have work to do as soon as they move in!
5. If you have pets, ensure all signs of them are removed before open days. This includes their smells. Remember, you may not be able to smell any signs of your pets but potential buyers will.

When selling with Rasmus, you now have the option of receiving a comprehensive professional report detailing how your can prepare your property for sale and add thousands of dollars to the selling price as a part of the marketing strategy.

To find out more contact Rasmus or alternatively speak directly with Fiona on (08) 9443 3547 or email Revive Design here.

2010 Christmas Street Mall
Sunday 28 November 4pm - 8pm
Albany Highway between Mint and Dane streets

Don't miss Santa's Parade at 6pm - led by Brazilian Drummers!

The Town of Victoria Park invites children, families and residents to attend the annual Christmas Street Mall.  Albany Highway between Mint and Dane Streets will be transformed into a buzzing pedestrian mall packed with plenty of free activities including craft stalls, displays, rides, entertainment, al-fresco dining and of course a visit from Santa! 

Stage Entertainment

PLUS interactive FUN!

Trampoline trailer
Santa's Cave and Fairy Queen Caroline  
Giant Checkers and Chess
Mini Golf
Merry Go Round
Old MacDonald's Farmyard
Facepainting

See you there!

Courtesey of Town of Victoria Park

For this edition of the market update, I have included a short video with great tips on how to prepare your property for sale.

Trouble viewing video, click here

The Perth property market, what is happening?

With the RBA increasing the cash rate by 0.25% to the official interest rate of 4.75% home owners are now waiting to see the reaction from the rest of the major banks after CBA increased their cash rate with 45 basis point. So where do you stand as a seller and as a buyer?

If you are considering selling?
If you are in a situation where you are thinking of selling, now is as a good time to sell as any other time, however, sellers dreaming of a quick sale, may need to readjust their expectations as we are in a buyers market. It is very important to do your research and be up to date with where the local market is at. Being aware of the market and understanding where your property sits today (and not 12 months ago) cannot be stressed enough. This includes listing according to market feedback when you do go on the market. Having said all this, it is possible to sell your property quickly and above the asking price. If this is the right time for you to sell, take the property to the market but be realistic with your expectations.

If you are considering buying?
As a buyer there is no question you have plenty of stock to choose from. With the latest figures from REIWA showing in excess of 16600 properties on the market and a sales period of 63 days it is a very strong buyers market. If you find a property that you would like to purchase and it has been on the market for a while (over 50 days), there is a very good chance you can buy the property for a very good price. Be a bit cheeky and place a low initial asking price and see what kind of response you receive.

What happens next?
The market will always go up and go down and right now prices are being squeezed because of the stock level. Having said that, a number of forecasts have recently indicated that the Perth property market will increase by 9 - 20% (QBE Housing) over the next 3 years. For property owners that would be great and I have no doubt that over the next 3 years we will see an increase in property prices. Over the past decades property prices have doubled every 7 - 10 years and I don't see any reason for that to change as long as our local economy continues to grow. It will continue to be a buyers market for the next 6 months.  Over the past couple of weeks, the number of properties on the market has increased but I would predict that the stock level will drop slightly, though not enough to turn the market into a sellers market (the gap is still too big). Having said that, it is important to remember that you as an individual have no control of the general market, but complete control of the purchase or sale of your property.

If you are in a situation where you are looking to upgrade or downgrade your property, is now a good time to buy and sell? Yes, absolutely.

Sure, you need to be sharp with your selling price but in return you will be in the box seat to pick up a good property at a good price.

To receive the FREE market update from Rasmus, click here

For current listings click image below

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Well done Rasmus!

Thank you for looking after my parents and special needs brother. A delicate sale process due to the emotion attached after being in a property for some 30 years however you handled it with confidence and respect which was greatly appreciated by all. Rasmus, we will certainly be recommending your services and style to many. Again, thank you. All the best in your well suited career”.

Caroline Johnston

Referrals

Do you know someone who is:

• Looking at selling their home
• Looking for an investment property
• Looking to buy a new home
• Looking to upgrade or downgrade their existing home

They may benefit from chatting with someone who they can trust and who is going to go out of their way to make sure they receive the best possible service and outcome. Please have them call me or forward this newsletter.

.......Until next time,

Area Manager

LJ Hooker Victoria Park

849 Albany Hwy, East Victoria Park, WA 6101

08 9473 7777 / 0430 015 796