What you consider essential when buying a property to live in is different to what you need to look for as an investor.

1. Setting a budget

Sitting down and working out your budget is vital — the last thing you want to do is overcommit. Let’s look at some of the things you’ll need to consider.

Budgeting to buy

When putting together a budget, some of the upfront costs you need to consider include:

• The deposit for your purchase
• Loan application fees
• Lender’s mortgage insurance if your loan to value ratio is more than 80%
• Government charges, including stamp duty
• Transfer fees and mortgage registration
• Legal and conveyancing costs
• Building inspections

With these considerations in mind, remember to have a realistic expectation of how much you can afford when choosing the location.

Budgeting for maintenance

When it comes to maintaining properties, a good rule of thumb is to expect the unexpected.

While there may be planned expenses in, for example, insurance, rates, or natural wear and tear, always budget for unplanned maintenance — especially if you’re renting out your investment property.

When weighing up your maintenance budget, consider factors such as the age of your property and how it is being used.

A general formula is the 50% rule: expect maintenance costs to be roughly 50% of any income you’re making from the property.

Another formula often cited by experts is the 1% rule: expect an annual maintenance cost of 1% of the property’s value. So, if it is worth $500,000, budget $5000 for maintenance.

2. Financing an investment property

There are a variety of ways to finance an investment property.

Seek independent financial advice before you commit to any purchase. Look at your investment goals and budget to determine which way to go.

If you’re not using your own finances, there’s a wide variety of loan types and conditions across financial institutions. Do your research to help work out the best solution for your situation. If you’re stuck, discussing your plans with a mortgage broker is a good place to start.

What are the loan options?

There are a number of loan types you can explore to get the most out of your circumstances.

If you’ve built up equity in your current property or properties, you could use this to borrow against your investment property for the full purchase, or just the deposit. This presents the opportunity to refinance your loan, meaning you could save through more competitive rates and conditions.

Another option is an investment property loan. These usually come with higher interest rates and costs, meaning you may not be able to borrow as much as for an owner-occupier loan. However, one advantage is you only have to use one property as security, compared to two if you were refinancing with a less expensive loan.

Most lenders will lend up to 90% of the investment property’s value for this type of loan, so you will need additional funds to complete the purchase.

Another option to explore is an interest-only loan. These loans provide an agreed period where you’ll only have to make interest payments and not any towards the principal.

The interest-only periods offered can vary widely, but generally are for five years. These can be useful if you think you’ll be able to sell your property for a profit before the interest-only period expires. Keep in mind these loans revert to principal and interest after the agreed period ends and may be more expensive than a straight principal and interest loan over the long term.

3. How to calculate yield

An important consideration if you’re buying a property to rent out is rental yield.

This can be split into gross and net rental yield.

To calculate the gross yield, add up your annual rental income (weekly rental by 52), divide by the property value, then multiply by 100.

ie, annual rent ÷ value of the property X 100.

To calculate the net yield, take the annual rental income (weekly rental by 52), subtract annual expenses and costs, then divide by the property value and multiply by 100.

(Annual rental income – expenses and costs) ÷ value of the property X 100.

4. Negative gearing explained

Negative gearing is a way to reduce your taxable income through any losses you incur from investing in a property.

In other words, when the expenses of investing in a property are higher than the income you’re making from it, taxation law allows you to apply them against your taxable income.

While making a loss on a property investment is not ideal and does not suit every situation, in some cases, people are expecting to make a loss on rent while waiting for the capital growth of the property to reach the point where they can still make a profit when they sell it. The aim is to limit losses before selling.

Expenses you may be entitled to claim include advertising for tenants, body corporate fees, cleaning, pest control, repairs and maintenance. Seek the advice of an accountant on what expenses you are and are not able to claim.

5. Capital gains explained

Capital gains is the difference between what you paid for an asset (less any expenses) and what you sold it for, again less any expenses.

Capital gains tax can apply when this results in you making a profit from this transaction.

This tax does not apply in all situations (such as generally when a property is your principle place of residence) but is a key consideration if you’re investing in property.

It’s always advisable to speak to a financial professional about your situation. There are a number of exemptions and concessions that may help reduce your capital gains tax bill.

For example, holding a property for more than 12 months or investing in affordable housing are just two ways you can reduce your capital gains tax burden.

6. Land tax obligations

As a property investor, another consideration is land tax. Land tax is levied by state and territory governments and is based on certain threshold levels of land value.

It applies to all freehold land in Australia and includes land that is yet to be developed or the land a house or unit is built on. Main residences, primary production land and some other types of property can be exempt, but it does apply to investment properties.

The land values where the tax is triggered varies from state to state. 

**Article written by realestate.com.au

Interest rates significantly shape the dynamics of real estate markets worldwide, including the Gold Coast - one of Australia's prime property markets. Known for its sun-drenched beaches, high-rise dominated skyline, and sophisticated dining and shopping scene, the Gold Coast holds high appeal for both residential buyers and investors. This article delves into how shifts in interest rates impact the property market in this iconic region.

Interest Rates and Property Demand:

The influence of interest rates on property prices operates through demand and supply dynamics. When interest rates decrease, borrowing becomes cheaper, increasing the number of prospective buyers who can afford to enter the market. This heightened demand can put upward pressure on property prices. The Gold Coast, with its vibrant lifestyle and strong tourism sector, can become even more attractive to buyers during periods of low interest rates.

However, when interest rates rise, mortgages become costlier, and the pool of potential buyers may shrink. This decrease in demand can contribute to a slowdown in price growth or even a drop in prices, although the Gold Coast's inherent attractiveness may buffer this effect to some extent.

Investor Interest:

Interest rates also sway the Gold Coast's appeal to property investors. Lower rates enhance the attractiveness of rental properties by increasing the potential yield relative to mortgage repayments. This trend can fuel a surge in investor activity, boosting demand and possibly driving up prices.

When rates climb, investors might retreat, given the increased cost of mortgage servicing, which can lower net returns. A pullback by investors can soften demand, potentially leading to a moderation in price growth.

New Developments:

Interest rates can impact the supply side of the Gold Coast property market too. Lower rates tend to stimulate new developments by making it cheaper for developers to finance projects. An increase in supply can help moderate property price growth, providing more options for buyers.

On the other hand, when interest rates are high, developers might postpone new projects due to the high cost of borrowing. This hesitation can constrict the supply of new properties, potentially supporting higher prices, especially if demand remains robust.

Impact of External Factors:

While the relationship between interest rates and the property market seems clear-cut, other external factors can intensify or mitigate these effects. Employment rates, population growth, consumer confidence, and overall economic health all interact with interest rates to shape the property market's direction. 

For instance, despite low interest rates, a high unemployment rate can dampen demand if potential buyers lack job security. Conversely, during periods of economic prosperity and high consumer confidence, demand might remain strong even with higher interest rates. 

The Gold Coast's property market also has unique factors, including its reliance on the tourism sector. Fluctuations in tourism can impact rental demand and property investment returns, intersecting with interest rate effects. 

Conclusion:

Interest rates are undeniably influential on the Gold Coast property market, shaping buyer affordability, investor returns, and development activity. Yet, it's critical to remember that they are one piece of the puzzle. Other economic indicators and local factors like the health of the tourism industry also play significant roles. Given these complexities, prospective buyers, sellers, and investors are encouraged to conduct thorough research and seek expert advice when making property-related decisions on the Gold Coast.

ABS data revealed the highest national quarterly population increase on record in the March quarter, and the gains from migration have never been higher.

But with the pace of building behind where it needs to be to house the booming population, more needs to be done to avoid worsening an already dire housing crisis.

There are many indications that strong population growth has accelerated to reach new historic records.

Comparing migration gains to the average in the decade to March 2020 shows an additional uplift of about 190,000 in 2022, and possible lift of about 300,000 in 2023, given net long-term and permanent arrivals — a timelier proxy for the official data — indicate continued strong gains in the June quarter and beyond.

This means net migration will have fully caught up the pandemic losses of about 440,000 people before the end of this year.

Capital city estimated residential population (ERP) updates are less timely than the national and state updates, but using historic average shares to estimate potential population gains at the capital city level indicates potentially a very fast pace of growth in some cities.

While not a perfect measure (given factors such as Covid have affected the number of Australians moving interstate) we can roughly estimate that the populations of Sydney, Melbourne, Perth and Brisbane are likely to have grown significantly in the year to June 2023.

This has likely contributed to the fast turnaround in home prices in 2023, alongside tight rental markets.

The reversal in price growth has been most significant in cities where population growth has picked up the most and rental markets have tightened most.

However, though a contributor, the causality between population growth and home price growth isn’t that simple in reality, and other factors like supply conditions matter greatly.

So how much has resurgent population growth added to housing demand?

Smaller household sizes during the pandemic resulted in significant additional demand for housing and roughly offset the entire lost population increase across both 2020 and 2021 combined.

Although recent data suggests that average household sizes (AHS) have begun to increase in the capital cities in recent months, the AHS remains below pre-pandemic levels and was at a historically low 2.49 people per household in January 2023.

Net migration has fully caught up the pandemic losses and then some, meaning demand for housing is much stronger.

While growth is expected to ease in 2024 and 2025, faster than expected population growth has meant more people are calling Australia home — against the backdrop of pre-existing housing supply issues — giving rise to a mismatch between housing supply and demand.

The fact that more than 80% of population growth is currently stemming from net migration means there are more working-age adults than if growth stemmed from natural increase. This means that growth in the adult population is steadily higher than total population growth, further boosting demand for housing.

Using the official population change in the year to March 2023, a potential 226,000 additional households would have needed homes. Australia completed around 170,000 new homes over the year to March 2023, meaning a shortfall of around 56,000 homes based on population growth alone.

This is a problem, with supply already limited and smaller households having already compensated for the missing population gains in 2020 and 2021. The strong rebound in migration and “excess” population growth means there is a clear requirement to address our housing shortage.

Growth estimates for the six months following March 2023 indicate that unless the pace of building activity steps up, there would be a further shortfall of 41,000 homes.

Obviously, not all of our growing population would be housed in new homes. The rental market and existing dwellings are also housing options, and recent arrivals to Australia being most likely to rent.

But this does illustrate that with the current housing shortage and immediate supply issues, as well as challenged rental market conditions and the worst affordability in at least three decades, these issues aren’t likely to be improving.

Population growth is likely to place continued upward pressure on home and rental prices while supply conditions remain constrained.

Governments have begun to recognise the need for more housing, and in August, the National Cabinet agreed to build 1.2 million homes over the next five years.

But we're not building enough to hit that goal. To meet the 1.2 million goal, we need to increase our pace of building by almost 40% from where it currently stands.

Concerningly, with estimated annual population growth of close to 600,000 people per year from both natural increase and net overseas migration, the new residents will simply absorb the 1.2 million homes based on current household sizes.

Mitigating factors are the potential for household sizes to increase, population gains to slow more markedly into 2024 and beyond, and building activity recovering.

As the population continues to grow, more action on housing supply will be required as well as infrastructure and investment frameworks to maintain the liveability of our future cities.

A combination of policies could help ease constraints, such as fast-tracking new supply of more of the right type of homes built where people want to live, building more medium-and high-density housing, reducing the planning impediments that hinder new supply and encouraging better use of existing homes.

** Credit to Eleanor Creagh, Senior Economist at PropTrack

Key points:

• Queensland property prices have been rising since February after falling sharply last year
• The Sunshine and Gold coasts recorded the highest property price increases for regional Queensland
• Real estate experts say further rates rises could have an impact on those increasing prices, if owners are forced into "distress"

Although the two coastal centres experienced the biggest property hikes in regional Queensland, they were not alone, with every region in the state analysed by real estate data firm CoreLogic showing prices have been on the rise since February.

From tumbling to turnaround

The real rollercoaster started when prices on the Sunshine and Gold coasts skyrocketed from March 2020 to their peak in May last year – with the average price of houses in both regions jumping by an enormous 52 per cent. 

But then came a marked downturn, when housing prices began to tumble as the Reserve Bank lifted interest rates for the first time in a decade.

People in distance walk along a beach at dusk with skyscrapers and partly cloudy skies behind them.

Property prices surged on the Gold Coast through the pandemic then fell sharply from mid last year.(ABC News: Peter McCutcheon)

By April this year, they had fallen by 12 per cent on the Sunshine Coast, which includes Noosa, and by 7.3 per cent on the Gold Coast – the biggest percentage downturn in property prices since at least 2013.

Buyers are again spending in Queensland, particularly on the Sunshine Coast.

And with lower prices came fewer sales.

The number of homes sold on the Sunshine Coast fell by 29.9 per cent in the past 12 months, and by 28 per cent on the Gold Coast.

But while the annual data seems to paint a dire image, it is not the whole story.

Prices have begun to slowly bounce back, with the two coastal centres rising by more than 2 per cent in the past three months.

Home price rises 'extraordinary'

CoreLogic head of data Tim Lawless said this new rise in house prices was "extraordinary".

"If you think about a typical wage being maybe $60,000 to $80,000 — arguably, three or four months of growth is going to be equal to someone's annual income," he said.

CoreLogic research director Tim Lawless. 

"So it's quite extraordinary to see housing prices rising as quickly, albeit against this backdrop of quite a sharp drop. 

"That's a pretty rapid return to growth."

Vendors may be reluctant to sell

Mr Lawless said would-be sellers were less willing to put their home on the market, given the uncertainty.

But those looking to buy may not have the same luxury.

"There probably hasn't been a great deal of distress despite interest rates rising so quickly, at least there's no evidence of that," he said.

"But I think what we're now seeing is just the sheer under-supply and sense of urgency coming back into the market, prompting more people to get into a purchasing situation."

Brisbane's north recorded the state's biggest hike in property prices over the past three months.

What about future rate rises?

Mr Lawless warned the new "exuberance" in the market could begin to calm if the Reserve Bank of Australia continues to lift interest rates.

"Higher interest rates would probably dispel some of these strong gains, which I would currently describe as probably unsustainable, if we saw another one or two rate hikes," he said.

The rise in house prices across Queensland was reflected across the nation, with property rising in every capital city through May.

"I think safely over the past three months, clearly a trend towards a more positive trend in housing prices has been established," Mr Lawless said.

"In fact, it's gathering momentum, if anything."

*** Credit to Owen Jacques from ABC News Sunshine Coast & Tim Lawless from Corelogic

Here are our top value-adding tips to help you prepare your home for the market:

1. First Impressions Count: Boost Street Appeal

Buyers often make a snap judgment the moment they arrive. A well-presented exterior sets the tone for the rest of the inspection.

• Mow the lawn and trim hedges
• Pressure clean the driveway and pathways
• Add fresh mulch and low-maintenance plants
• Repaint the front door or touch up the façade if needed

2. A Fresh Coat of Paint

Neutral colours throughout the home create a clean, modern feel and help buyers visualise their own style in the space. If your walls are looking tired or outdated, painting is one of the most cost-effective updates you can make.

3. Declutter and Depersonalise

Less is more when it comes to inspections.

• Remove personal photos, kids' artwork, and excess furniture
• Create a sense of space and flow through each room
• Organise storage spaces to show off capacity

4. Lighting and Presentation

Natural light and thoughtful lighting can transform how a home feels.

• Open curtains and blinds
• Replace outdated light fittings or blown bulbs
• Use mirrors to reflect light and open up smaller areas

5. Style It to Sell

Professional styling can elevate your home to a whole new level. It enhances your property’s best features and helps buyers emotionally connect with the space.

6. Fix the Small Things

Buyers will notice leaky taps, cracked tiles, or squeaky doors. These small issues may seem minor, but they signal poor maintenance. Spend a few hours attending to those “weekend jobs” you’ve been putting off.

7. Upgrade Where It Matters

You don’t need a full renovation—but minor updates in kitchens or bathrooms can go a long way.

• Replace dated cabinet handles
• Re-grout tiles
• Update tapware
• Add new pendant lighting

8. Freshen Up Outdoor Living Spaces

Outdoor entertaining areas are a big plus on the Gold Coast.

• Clean and stage patios or balconies
• Add outdoor furniture, a rug, or potted plants
• Ensure fences and gates are in good condition

Thinking of Selling? We’re Here to Help.

At Smyth Real Estate, we guide you through every step of your selling journey—from preparing your property to crafting a strategy that gets results. If you’re curious about your home’s current value or want personalised advice on what improvements will make the biggest impact, we’d love to help.

📞 Contact us today to book a complimentary sales appraisal.

When is the best time to put my house on the market?

Buyers for a good property at the right price can be uncovered and secured throughout the year. However, if your home has seasonal appeal (common on the Gold Coast), such as beach access in summer or a beautiful garden in spring, it may be worth waiting for those months, get your agent to look at the statistics and competition to guide you on this.

How long will it take to sell my home?

On average, properties are taking between two and six weeks to sell in this current high-octane environment. This does depend on the area you live in and the property type, it is important to allow for a week or two to have the property fully prepared for sale and to allow time to prepare all the necessary material for a fully effective and efficient marketing campaign.

What are the different ways to sell a property?

There are 3 main ways to sell a property in Australia, Auction, Private Treaty and expression of interest.  We are introducing a new way to add to these common 3 methods, and it has proven to be an insanely effective method, it is an online offer communication system, we would be happy to guide you through the ins and outs of this, it is a game-changer in how Australian real estate is transacted and the success stories are wide-ranging and very impressive.

How can I make sure my house appeals to more buyers?

A well-presented home usually sells faster, and at a higher price. Start by de-cluttering – remove all excess furniture and wall coverings, perhaps place them in storage or try selling on marketplace, there is a shortage of new furniture in warehouses and things are selling quickly online. Have a handyman come in and tie up loose ends, if there is an opportunity to apply a lick of paint, please do. Also, pay attention to the gardens and street appeal, a first impression is lasting.

What pre-sale repairs or renovations really pay off?

Light, if a room or space is dark, use all the tools in your toolkit to bring light into the room, this is of critical importance. Quality tapware and handles can make an immediate impact for little investment, these can be picked up from Bunnings, again we stress that a fresh coat of paint in a neutral colour gives the impression your home has been well maintained and can also deodorise.

What is a property appraisal? 

A property appraisal is an informal process that will provide you with an estimated market value of your property.  A Sales Agent will provide information about current market trends and conditions, local property values, the appropriate method of sale for your property, results-oriented advertising strategies, and a detailed timeline of the selling process.

Why should I get a property appraisal if I am not selling? 

Even if you are not looking at selling, understanding the value of one or more of your most valuable assets can help ensure you better understand your net worth and allow you make plans for the future, real estate is not a game of overnight returns so keeping up to date with the valuation changes is of paramount importance. A good agent will be happy to provide an update on your properties to build and then forge a relationship, so they are your go to professional of the future. This knowledge can help you make smarter financial decisions. Get a property appraisal. 

Is it worth paying for a home stylist?

You only get one chance to make a great first impression. If styling is a consideration, please refer to our more in depth article HERE

Is it best to sell at auction?

We have found public auctions to be highly effective, especially when there are competing buyers and at the minute QLD is seeing auction clearance rates of 80%+, this is normally reserved for Sydney and Melbourne, so it is definitely a more appealing option in this market. Emotional engagement and competitive tension can lead to FOMO (Fear of missing out), which in turn can lead to a higher result. Your alternatives include a private treaty / private sale, expressions of interest or the new age digital method we touched on previously. Your Smyth Real Estate agent can advise you on the best method for selling your home.

How does Smyth Real Estate achieve a premium price?

We have developed a proven sales system to maximise the return on your home and fine-tuned this over the last 5 years. It starts with understanding your goals in our first meeting and discussing ways to increase your home’s value and present it in the best possible way. Every detail can make a difference. Our passion really shines through when it comes to marketing your property and negotiating on your behalf, the passion is tangible from the moment you meet us, try us.

What’s your secret to a successful property marketing strategy?

We know we can achieve the best price within the first 30 days of a home being on the market, so we focus our energies on providing accurate and engaging market campaigns whilst applying speed and ease of use to all our operations, i.e. online offer systems and digital contracts are a must. We also know more than 60% of record prices come from out-of-area buyers so we use social tools to reach those buyers. So it’s not enough to put up a sign, we’ll identify the ideal buyer for your home and design the optimum online and physical marketing mix.

 What is the best method of sale for my property?

Your real estate agent is the best person to help guide you here. They will assess the kind of property you are selling, its location, the condition of the local real estate market, how quickly you want to sell and your personal preferences. 

How do I prepare my property for sale?

Spending time preparing each room and space of your property for sale can make a big difference to how much you sell your property for.  Please complete the contact form HERE and we will send through a step-by-step guide.

What are agent’s fees / agent commission?  

Commission is the agent’s payments for successfully selling a property. All good agents will ensure they work extremely hard to sell a property and secure their income. At Smyth Real Estate we charge a performance related commission which is tailored to your situation and property, get in touch today to find out more HERE

Economic and financial commentary has been particularly gloomy of late, with talk of a “dire”, “grim”, “bleak”, “perilous” and “confronting” outlook. The problems are well known: high inflation; particularly high and still rising energy prices; central banks aggressively raising interest rates; a high risk of recession globally; the war in Ukraine, along with other geopolitical risks; and the downturn in China. One could be forgiven for thinking that recession in Australia is inevitable in the next year.

Returning inflation to the 2-3% target is of utmost importance as the 1970s experience highlights that failure to do so will lead to even worse economic conditions and a continuing rough time in investment markets. And the surge in inflation is more than just supply constraints flowing from the pandemic, the war in Ukraine and floods, as demand is running well above supply in the Australian economy. This is evident in very high capacity utilisation rates and very low unemployment (see the next chart).

For the labour market its also evident in a high ratio of job vacancies to unemployment. This has meant that the “jobs gap” in Australia (defined as labour demand (as measured by job vacancies plus employment) less labour supply (or the labour force) as a share of the labour force) which has closed to around zero for the first time in over 40 years (see the next two chart). The longer the very tight labour market remains, the greater the chance that wages growth will surge will in excess of the three point something that is consistent with inflation in the 2-3% target range.

To bring demand in the economy back into line with supply some economic slowdown is required to help get inflation back down. Hence the RBA has been raising interest rates.

With households most vulnerable to higher interest rates due to high levels of household debt and the double whammy from falling real wages, consumer spending is set to slow sharply. And RBA Governor Lowe has noted on several occasions that “we are travelling along a narrow path here" in terms of being able to return inflation to target and avoid a recession. However, it’s not inevitable that Australia will slide into recession. Assuming there is no further significant flare up in geopolitical problems (such as a war over Taiwan), this note looks at seven reasons why Australian should be able to avoid a recession.

1. The business investment outlook is reasonably solid

Business investment plans for the year ahead remain strong. The ABS capital spending intentions survey is up about 15% on a year ago. It’s likely this partly reflects the higher costs of investing, but it’s also consistent with high levels of capacity utilisation, reasonable business conditions and confidence, and some easing in supply chain pressures. Real business investment is expected to grow by around 5% over the year ahead.

2. There is a large pipeline of home building work

From their high last year, approvals to build new homes in Australia have fallen about 25% reflecting the end of the HomeBuilder grant and rising interest rates. While this points to a downturn in home building, its likely to be cushioned because there is a large pipeline of work yet to be completed with home completions yet to catch up to the surge in home building approvals through the pandemic (see red circled area in the next chart). This has been due to poor weather and shortages of labour and building materials. The large pipeline of work yet to be done will likely provide a floor for home building, preventing a plunge in dwelling investment that would normally flow from a 25% fall in approvals.

Residential approvals and completions

Though the June quarter CPI came in just under forecasters’ expectations at a headline level, the Reserve Bank’s preferred measure to watch – the trimmed mean underlying – was in line with consensus expectations.

Headline CPI rose 1.8% quarter-on-quarter, surging to 6.1% through the year, whilst the trimmed mean rose 1.5% quarter-on-quarter, bringing the increase 4.9% through the year. Clothing and footwear, food, furniture, housing, and fuel prices all rose strongly through the quarter.

Fruit and vegetable prices rose strongly due to the impact of east coast floods and fuel prices are higher with the surge in oil prices. The housing subcomponent also rose with soaring building costs.

The RBA will respond, with the board committed to “doing what is necessary” to overcome the challenge of high inflation and preserve credibility with respect to their inflation target. Another 50-basis point hike of the cash rate next week is all but guaranteed.

Digging into the CPI data more closely its clear price pressures are broadening, and supply chain issues are still in play.

It was also evident that non-discretionary price pressures have surged, which is likely to be a dampener on household spending on discretionary items. Non-discretionary price pressures encompass goods and services that are usually essential to households and therefore that households are less likely to reduce their consumption of. These are goods and services like food, fuel, housing, and healthcare.

This is where one of the key challenges for the economy lies moving forward. Interest rates are rising rapidly and inflation has surged, but adjusting for inflation, wages growth is in negative territory.

While households in aggregate have accumulated large savings and wealth buffers, sentiment has collapsed as cost-of-living pressures weigh.

The knock-on effect to household spending will be important to watch in coming months.

Already, retail sales data, also released by the Australian Bureau of Statistics this week, shows that perhaps the combined impact of cost-of-living pressures, rising rates, and weaker confidence are weighing. Although, it is too early to say definitively and it will also be important to look at retail volumes next week.

Retail sales rose 0.2% from May after the May change was revised lower, the softest rise in retail trade since a decline in December 2021.

The counterbalance as higher inflation bites is that the labour market is very tight, unemployment is at the lowest level since the 1970s, and job vacancies are at record highs. Though stronger wages growth is yet to materialise, we expect wages growth to continue to lift over the remainder of 2022 and through 2023. This will offset inflation pressures and rate rises to a degree.

This a key uncertainty moving forward – how households react, and how spending evolves as interest rates quickly climb, but alongside savings and wealth buffers, and hopefully stronger wages growth.

As interest rates have risen, home price growth has slowed Australia-wide, and prices have quickly begun to fall in some regions. But housing affordability will continue to decline as mortgage repayments become more expensive due to higher interest rates. The PropTrack Home Price Index shows national prices continued to fall in June and we expect a further downturn in the period ahead.

*Article written by Eleanor Creagh, Senior Economist, REA Group

So, what will this year’s spring selling season look like?

Property prices are still on the rise in many markets, despite the Reserve Bank of Australia’s aggressive interest rate hikes since May 2022. Property prices rose 0.7 per cent in July – the fifth straight month of gains.

Listings are also on the rise but remain below 2022 levels. If you’re a prospective buyer, you’ll need to be ready to pounce when you find a bargain this spring. Here are our tips for being ready.

Tip 1: Do your research 

The property market is constantly changing. If you’re looking to buy, you’ll want to make sure you have the latest information at your fingertips so that you’re confident when making an offer.

We can provide a range of reports to help you cover your bases. Get suburb reports with all the info you need to narrow down your property search. Access property reports with valuation ranges, recent sales data and more.

Tip 2: Get your finances in order 

If you do find a bargain, you’ll want to be ready to jump on it. Speak to a mortgage broker about organising pre-approval on your finance sooner rather than later.

Pre-approval means a bank has agreed, in principle, to lend you a certain amount of money.

Having pre-approval gives you confidence during price negotiations with vendors. It may also give you an edge over other buyers without pre-approved finance. 

Tip 3: Find out why the vendor is selling 

Understanding the vendor’s motivation to sell may give you an upper hand during negotiations.

What type of settlement terms and deposit will be most attractive to them? 

They may be moving interstate, or need liquidity fast, in which case they may drop their price for a shorter settlement. 

Maybe they need an extra-long settlement while they find somewhere else to live.  

Or perhaps a larger deposit would make you more favourable compared to other buyers? 

Ask the real estate agent why the vendor is selling and use the information as a negotiation tool. 

Tip 4: Rally your team

If you’re planning a spring property purchase, start thinking about which professionals you want on your team.

You’ll need a reputable conveyancer or solicitor to take care of the legalities for you.

In addition, you’ll want to line up building and pest inspectors to make sure the property is free of unwanted surprises like termites and structural defects. If they do discover anything untoward, remember you can use this as ammo during price negotiations.

A mortgage broker will compare the market and suggest a competitive home loan that meets your specific financial situation and goals.

Get in touch

Property prices are on the rise in many markets, but there are plenty of opportunities out there for savvy buyers. Get in touch to discuss your property needs!

** Credit to Finance Focus

The Perception of "Doom and Gloom"

This phrase often pops up during times of perceived instability or uncertainty in the property market. Generally, it points to declining property values, slowing sales, and the potential difficulties for homeowners wanting to sell their properties. But like any market scenario, what may seem like a challenge for one party can present as an opportunity for another.

For Buyers: Opportunities Abound

Lower Prices: When the market is described as being in "doom and gloom", it often means property values have dipped. For buyers, especially those entering the market for the first time, this can translate to more affordable options. This might be the opportune time to snag that waterfront property or luxury apartment on the Gold Coast you've been eyeing.

Negotiating Power: A less aggressive market generally tilts the balance of power in favor of the buyer. This can give potential homeowners more room to negotiate favorable terms, be it on price, inclusions, or settlement periods.

Variety of Choices: A slower market often means more properties linger on listings for longer durations. This provides buyers with a broader spectrum of choices without the pressure of properties being snapped up in a hot market.

For Sellers: Strategies for Success

Realistic Pricing: One of the critical mistakes during a perceived "doom and gloom" scenario is overpricing. By staying informed about recent sales in your area and seeking guidance from local Gold Coast real estate agents, sellers can price their property competitively to attract genuine buyers.

Home Presentation: In a market that’s perceived as challenging, presentation becomes paramount. Investing in home staging, professional photography, or even minor renovations can make a property stand out.

Flexibility: Being open to negotiation and being flexible with terms can make a significant difference. In some cases, throwing in additional perks (like leaving behind top-of-the-line appliances) can be the tipping point for a potential buyer.

The Gold Coast Perspective

The Gold Coast, with its pristine beaches, thriving nightlife, and diverse range of properties, has always been an attraction for both investors and homeowners. While national trends can influence the local market, the Gold Coast has a unique allure that's perennial.

Historically, while metropolitan hubs like Sydney and Melbourne have witnessed sharp fluctuations, the Gold Coast tends to navigate economic waters with relative resilience. This is attributed to its strong tourism sector, increasing infrastructure investments, and its position as a desirable location for both retirees and young families.

Conclusion

While the words "doom and gloom" can be intimidating, it's essential to delve deeper and understand the opportunities and challenges these market conditions present. For the astute buyer or the well-prepared seller, this could very well be a time of significant opportunity, especially in a locale as dynamic as the Gold Coast.

While moving house can feel overwhelming, a bit of planning goes a long way in making the process smoother. Here are some helpful tips to guide you from sold sign to settled in.

1. Confirm Key Dates Early

Start by locking in your settlement date and understanding when you legally need to hand over the keys. From there, work backwards to set your moving schedule, including packing, cleaning, and booking removalists.

Pro tip: Aim to move out at least one day before settlement to avoid last-minute stress.

2. Book a Reputable Removalist

Good removalists get booked out quickly, especially on weekends or near the end of the month. Do your research, read reviews, and get a few quotes. Decide if you need a full-service option (including packing) or just transport.

If you’re going DIY with a hire truck or trailer, make sure you're confident in loading and unloading safely.

3. Declutter Before You Pack

Moving is the perfect opportunity to let go of items you no longer use. Start early and be ruthless: donate, sell, or recycle anything that doesn’t need to come with you. You’ll save time, money, and effort.

4. Pack Smart – and Early

Start packing non-essentials weeks before moving day. Label every box clearly with its contents and the room it belongs to. Keep an “essentials box” handy for the first night in your new place – include things like toiletries, chargers, toilet paper, snacks, and a change of clothes.

5. Arrange Utilities and Change of Address

Contact your electricity, gas, water, internet, and insurance providers to notify them of your move. Don’t forget to redirect your mail and update your address with banks, schools, and any subscription services.

6. Do a Final Clean (or Hire a Cleaner)

Most contracts require you to leave the home in reasonably clean condition. Whether you do it yourself or hire professionals, make sure the house is tidy and all rubbish is removed before settlement day.

7. Stay in Communication With Your Agent and Solicitor

Keep in touch with your real estate agent and conveyancer or solicitor leading up to settlement. If anything changes – like settlement being brought forward or delayed – you’ll want to be in the loop.

8. Take Photos of the Property Before You Leave

As an extra layer of protection, take time-stamped photos of the home once it's empty and clean. It can help in the rare case of disputes after settlement.

9. Celebrate the Milestone

Selling and moving is a big achievement – take a moment to acknowledge it! Whether it’s a takeaway dinner on the first night in your new place or a quiet toast to a fresh chapter, you deserve to celebrate.

At Smyth Real Estate, we're here to help you every step of the way – from preparing your home for market, to a smooth handover after the sale. If you're planning your next move or need property advice, don’t hesitate to reach out.

Need a trusted removalist, cleaner, or storage solution? We’re happy to recommend local providers we trust.

Interest rates have risen 175 basis points in the past three months and are expected to increase another 50 basis points in September.

Market pricing currently implies a cash rate of close to 3.5% by December. 

The impact of this fast pace of rate rises is the slowing and decline of property prices around Australia.

As interest rates have risen, home price growth has slowed nation-wide, and prices have quickly begun to fall in some regions. The PropTrack Home Price Index shows a national decline of 0.55% since March. 

Mortgage rates have moved higher, and many can no longer borrow the same amount as this time last year. As rates continue to climb, borrowing capacities will be further constrained.  

This means prospective buyers not only face higher borrowing costs, but also greater uncertainty over future mortgage servicing costs than those over the past two years.  

This is being reflected in the housing market. Potential buyer demand has slipped as confidence erodes and the fear of missing out subsides. Auction volumes and clearance rates have fallen, and sales volumes have slowed off last year’s levels.  

We expect these trends to continue, with home prices likely to keep falling through this year and into next year.

Those declines are likely to accelerate and become more widespread over the coming months. 

So, what have past downturns looked like? 

Whilst history is no predictor of the future, examining previous downturns may provide insights into what to expect. 

Since 1990, there have been only five periods when year-ended nominal home price growth has been negative.

Those downturns have never been greater than 10% in year-ended terms. And in every instance, the preceding upswing has been larger than the downturn that has followed. 

Looking even further back to 1880, adjusted for inflation, price declines of 30% have never occurred.

That’s not to say that what we’re seeing now, which is the most aggressive tightening cycle in more than 40 years in terms of the ratio of debt-servicing costs relative to disposable incomes, won’t warrant a correction in house prices. 

But whether those declines will be close to 30%, as some predict, is another question entirely.  

As rising interest rates weigh, we currently expect national price declines in the order of 9% to 15% by the end of 2023, with Sydney and Melbourne seeing larger declines, and Adelaide, Perth and Brisbane remaining more resilient. 

How long and steep have recent downturns been?  

According to PropTrack’s Home Price Index, in recent history, Australia-wide downturns have lasted an average of between nine months and ten months, with prices falling on average 2.8% from peak to trough. 

In Sydney, the picture is a little different, with recent downturns lasting an average of nine months and prices falling 3.4% 

The largest peak to trough downturn in recent years was in 2018/19 when national home prices fell 5.5% over a 13-month period. Again, in Sydney that decline was larger, with home prices falling 11.4% over 22 months. 

In 2018/19, interest rates weren’t rising, but falls were driven by a credit squeeze, as the effect of various prudential measures reduced borrowing amounts, in a period of weak wages growth and a soft labour market.  

And what about price falls further back? 

Some of the historic house price declines across the combined capital cities have been larger than corrections in recent years, but still declines of 30% have not been seen. Prices have fallen an average of 5.3% with downturns lasting on average 6 months. 

So, what’s next? 

Now interest rates are moving higher quickly, mortgage rates have followed suit and as interest rates continue to climb, borrowing capacities will be further constrained. 

As the cash rate moves above 2%, and that is passed through to mortgage rates, maximum borrowing capacities will be constrained by close to 20%. The cost of servicing a mortgage will also increase significantly.

This will impact would-be borrowers and weigh on home prices. 

A silver lining that could offset this to some degree is the tight labour market. Unemployment is the lowest it’s been since August 1974 and hopefully stronger wages growth will materialise as a result. In aggregate households are also sitting on large savings and wealth buffers accumulated since the pandemic onset.

Currently, household budgets are under pressure as the cost of living has risen, along with interest rates, and put real wages growth in deeply negative territory. 

The big question is how household spending holds up against a backdrop of higher inflation, higher interest rates and falling house prices (the negative wealth effect), versus savings and wealth buffers, and hopefully stronger wages growth.

How this unfolds will be crucial in determining the loss of conditions in the economy and as a result how high and fast the cash rate rises.  

This dynamic will also be a key source of uncertainty for the housing market and the pace and depth of price falls. 

*Article written by Eleanor Creagh, Senior Economist, REA Group

*Edited for relevant dates and RBA changes by Edward Smyth

Since finding a floor in February, the national measure of housing values has gained 3.4%, however, the market remains -6.0% below peak levels recorded in April 2022. That is the equivalent of the median dwelling value still being -$45,771 below a peak of $768,777.

Every capital city except Hobart (-0.3%) saw dwelling values rise in June, with CoreLogic’s research director, Tim Lawless, noting that Sydney continues to lead the cycle.

 “Sydney home values increased another 1.7% in June, taking the cumulative recovery since the January trough to 6.7%.  In dollar terms, Sydney’s median housing values are rising by roughly $4,262 a week,” he said.

A lack of available supply continues to be the main factor keeping upwards pressure on housing values, Mr Lawless said.  “Through June, the flow of new capital city listings was nearly -10% below the previous five-year average and total inventory levels are more than a quarter below average.  Simultaneously, our June quarter estimate of capital city sales has increased to be 2.1% above the previous five-year average.”

Although housing values continue to record a broad-based upswing, the pace of growth across most capitals eased in June.  “A slowdown in the pace of capital gains could be a reflection of a change in sentiment as interest rate expectations revise higher,” Mr Lawless said.  “Higher interest rates and lower sentiment will likely weigh on the number of active home buyers, helping to rebalance the disconnect between demand and supply.”

Regional housing values have also trended higher, albeit at a slower pace relative to the capitals.  The combined regionals index also recorded a fourth consecutive month of growth, taking housing values 1.2% higher than the recent low in February.

 Mr Lawless notes the softer growth trend across regional areas of the country align with recent shifts in demographic factors.

“After regional population growth boomed through the worst of the pandemic, internal migration trends have normalised over the past year, resulting in less housing demand across regional markets. Additionally, housing demand from overseas migration is skewed towards the capital cities rather than the regions.”

Regional Victoria is the only rest of state market where quarterly housing value trends remain negative, down -0.4% in June to be -1.3% lower over the quarter.

“Value declines were evident across most the SA4 sub-regions of regional Victoria, including the areas adjacent to Melbourne. In June, Geelong home values were down -0.7%, Ballarat values fell -0.3% and Bendigo was down -0.9%,” Mr Lawless said.

“The weaker conditions across regional parts of the state may be related to a normalisation in migration flows as more regional residents move to the city, along with a substantial narrowing of the affordability gap between regional Victoria and Melbourne through the recent upswing.”

Despite the recent uptick, most regions continue to see housing values below their recent cyclical highs. Hobart housing values have recorded the largest cumulative decline, holding -12.9% below the record high in May last year.  Across the capital cities, Perth is the only capital where home values are at record highs, having recovered from the relatively mild -0.9% decline through the downturn.  Adelaide home values are only -0.3% below record highs and likely to reach a new high point in July.

 Across the regional markets, Regional NSW is recording the largest drop from peak through to the end of June, with values down -9.6%, followed by Regional Victoria (-8.4%) and Regional Tasmania (-7.2%). At the other end of the spectrum, dwelling values in Regional South Australia and Regional Western Australia, where housing market conditions have mostly remained positive through the rate hiking cycle to-date, recorded new cyclical highs in June.

**Article written by Time Lawless at Corelogic

Understand the Local Market

Gold Coast is home to diverse property types, from sprawling beachfront houses to high-rise apartments. Each property type, area, and demographic has different expectations and preferences. Consult with a real estate agent familiar with the Gold Coast market. They can provide valuable insight into current trends, buyer expectations, and even recommend service providers for your preparations.

Enhance Curb Appeal

First impressions matter. A well-presented exterior can entice potential buyers, compelling them to take a closer look. Maintain the lawn, repaint or clean the facade, trim the hedges, and fix any minor visible issues. If you have a balcony or patio, ensure it's clean and inviting. The goal is to make your property look attractive and well-maintained, embodying the coastal lifestyle that is a part of the Gold Coast charm.

De-Clutter and Depersonalize

Buyers should be able to visualize themselves in your home. A cluttered house or one filled with personal belongings can make this difficult. Remove excess items, personal photographs, and any eclectic decor. Consider renting a storage unit for the duration of the sale period.

Stage Your Home

Home staging can create an immediate emotional connection with potential buyers. Arrange furniture to maximize space and natural light. Highlight the property's architectural features and try to emphasize Gold Coast's lifestyle in your staging - a pair of binoculars for whale watching on the balcony, or a surfboard casually propped against a wall.

Revamp the Interior

A fresh coat of paint in neutral tones can significantly enhance the interior. Repair any noticeable damage, such as holes in walls, broken tiles, or leaking taps. Make sure everything is clean, from windows to floors, kitchen appliances to bathrooms. Your home should feel fresh, clean, and ready to move in.

Professional Photography

Over 90% of property searches in Australia start online. Hence, investing in professional real estate photography is crucial. Ensure the photographer captures the property's unique features, its views, and the lifestyle it offers.

Address Necessary Repairs

Any obvious defects can deter potential buyers. Address these before listing your property. It might mean fixing a leaky roof, replacing old and worn out carpeting, or servicing the air conditioner. While these repairs might seem costly upfront, they can often be more cost-effective than the potential loss in your home's sale price if left unattended.

Price it Right

Setting the right asking price is critical. Overpricing might deter potential buyers, while underpricing could mean leaving money on the table. An experienced Gold Coast real estate agent can provide a market appraisal to guide your pricing strategy.

Market Your Property

In addition to standard real estate platforms, consider social media and local print media. Highlight the key features of your property and why it would be an ideal home. Include lifestyle shots to give a sense of the location and lifestyle the property offers.

In conclusion, preparing your home for sale on the Gold Coast requires careful planning and consideration. With the right approach and professional guidance, you can present your property in its best light, maximizing its appeal to potential buyers, and ensuring a successful sale.

Westpac, one of Australia's 'BIG FOUR' banks has weighed in on the property price argument calling for a 20% increase in residential dwelling values nationally over the next 2 years.

Please do err on the side of caution of course as many notable economists and housing specialists were expecting a dramatic pullback only this time last year.

However, there is absolutely no denying there has been an incredible verve in the housing market and surging house prices, this strength has been reported almost unilaterally.

Short-term

Economics at its core is based on the balance between demand and supply, although there were murmurs of a slightly quieter weekend (perhaps linked to the horrendous weather, some buyer fatigue, and approaching Easter), it has been clear that the demand for property has heavily outweighed supply which has caused major upward pressure on prices.

This demand has been fuelled by many reasons but perhaps the most prevalent is the lower rates and more relaxed lending criteria making it is easier to borrow the cheapest money the global financial systems (Australia being one of them) have ever offered, in history.

Homebuilder grants have brought new demand into the market that would not have been there had this not been introduced.

There is a myriad of other financial incentives, such as relaxation of early super release now accepted for home deposits working as sugar-like hits to fuel buyer demand but what about supply, if demand is higher, what about the supply?

In a word - Tight.

Our nearest capital market to the Gold Coast is Brisbane and it is reported that supply across the region of houses for sale was down 16% over the 12 months prior, whilst sales had increased by 4%.

Less available, more sold = seller's market.

Now, this is great news for those that own their homes and are seeking a profit, but it makes things hard for those homeowners who are looking to downsize, as they have a fear of selling and having nowhere to go, and those who are looking to enter into the market, especially those looking to relocate who are both ready and willing to buy but can't.

Medium-term: what can stop this?

Unemployment and underemployment - currently combined at 20%+

Lack of immigration

Overbuilding - driven mainly by Homebuilder stimulus

The decrease in birth-rate, the Covid Baby joke is not actually backed by statistics as birth rates historically decrease in financially uncertain times.

Potential oversupply, when demand outstrips supply there is often a rebalancing that can lead to swings in the opposite direction ergo those looking for a premium price and a quick sale will start coming to market. The effect will be a widening of the menu for buyers combined with many buyers leaving the market due to successful purchases or other reasons, the supply/demand equation may tilt the other way.

Limited wage growth

Rising costs - such as the increase in mandatory Super contributions to 10% this year.

The economic impact of these drivers could work as dampeners to the current high-octane buyer demand that is in the market.

Australia already has a relative imbalance between the levels of household incomes and the prices of primary properties, certain factors could compound this to then become a problem in the not-so-distant future.

If you would like to discuss any of these points further or just find out where your property sits in today's market, please contact us today.

Rising Prices: A Positive Outlook for Investors

Property values on the Gold Coast are forecasted to rise by 5-8% over the next 12-18 months. This steady growth is underpinned by a combination of factors such as strong demand, population growth, and limited housing stock. For property owners and investors, this appreciation represents a solid opportunity for capital gains, while buyers may need to act quickly to secure homes before prices climb further.

Supply Shortage: A Pressing Issue

One of the most significant challenges currently affecting the Gold Coast property market is the ongoing supply shortage. With only three months of available stock on the market, housing availability is critically low. This supply crunch puts upward pressure on prices and can make it more difficult for buyers to find the right property. It also underscores the competitive nature of the market, where demand continues to outstrip supply.

Population Growth: Driving High Demand

Australia's population is projected to grow by 395,000 people annually, with the Gold Coast being a key beneficiary of this surge. As more people flock to the region, especially from other states, demand for housing continues to soar. This population boom adds urgency for developers to create new housing solutions and for prospective buyers to secure property before demand intensifies further.

Millionaire Migration: A Boon for the Luxury Market

In recent years, the Gold Coast has become a top destination for high-net-worth individuals (HNWIs), with 10-15% of Australia’s wealthy population migrating to the region each year. This influx is fueling demand for luxury properties, waterfront homes, and high-end developments. The arrival of affluent buyers is driving premium property values and enhancing the Gold Coast's reputation as a sought-after lifestyle and investment hub.

Staying Ahead of the Curve

In light of these shifting dynamics, staying informed about the Gold Coast property market has never been more important. For sellers, this is a prime time to consider listing properties as rising demand and prices can lead to competitive offers. Buyers and investors, on the other hand, need to act strategically, taking advantage of current conditions before values escalate further.

By understanding these key trends—rising prices, constrained supply, population growth, and the migration of wealthy individuals—you can better navigate the evolving market and seize the opportunities ahead.

Stay ahead of the curve and make well-informed decisions in this dynamic real estate landscape.

Why Spring is Ideal for Selling:

Curb Appeal at its Peak: With flowers blooming and gardens looking lush, properties naturally present better during spring. Buyers are attracted to homes that feel vibrant, and the warmer weather allows them to better envision life in outdoor spaces​.

High Buyer Activity: Many buyers emerge from winter hibernation during spring, keen to settle into a new home before the holiday season. This creates a competitive market where well-presented properties can attract multiple offers​.

Perfect Conditions for Open Homes: Gold Coast’s mild spring temperatures make it ideal for hosting open houses and inspections, encouraging higher turnout and more engagement from potential buyers.

Favourable Market Trends: Recent data shows a positive market trend, with property prices on the Gold Coast steadily increasing. This spring, buyer confidence is high, making it a great time to capitalise on the demand​.

How to Get Your Property Ready for the Spring Market:

Boost Your Garden: Enhance your outdoor spaces by planting colourful flowers, trimming the lawn, and cleaning any patios or decks. First impressions are key, and a vibrant garden can add substantial appeal​.

Declutter and Depersonalise: A clutter-free space allows buyers to imagine themselves in the home. Remove excess furniture and personal items to create an open, welcoming atmosphere​.

Freshen Up the Interior: A fresh coat of neutral paint and deep cleaning can make a big difference. Consider minor touch-ups that make your home feel refreshed and inviting​.

Stage Strategically: Highlight your property’s best features. For instance, let natural light in, set up your outdoor areas for entertaining, and ensure every room feels spacious and functional.

By getting your property market-ready and capitalising on spring’s natural advantages, you can attract more potential buyers and achieve a quicker, more profitable sale. If you need any assistance with your spring campaign, reach out to our team at Smyth RE for expert advice and support.

Happy selling! 🌷

We take an in-depth look at home staging, to put you in the picture.

Why house staging is important to your sale

The Australian property market is currently going through a correction – house prices have fallen everywhere, particularly in the major cities. This means it’s a buyer’s market, so there is more competition. If you want to achieve the best possible sales price, your property needs to stand out from the crowd.

This is where a professional home stylist can help. They style your home to make it as appealing as possible to potential buyers, often bringing home furnishings with them to highlight key features of your home. This maximises your home’s appeal in a number of ways:

1. It makes your home aspirational

Potential buyers want to imagine themselves living in your home. They like the thought of being able to move straight in without having to do any work to the property. Home staging achieves this by making your home neutral, removing all personal items such as family photographs, and ensuring all the furniture is new and of good quality. This helps buyers to see your home in its best light and picture themselves living there.

2. It gives your home a broader appeal

By highlighting the best features of your home and making even dated rooms look more attractive, property styling makes your home appeal to more potential buyers. This ensures you will receive more competing offers, giving you a faster sale and helping you to achieve the best possible sale price.

3. It makes your home look better in photographs

A professional home stylist knows exactly what makes a property look good in photographs. As a result, the online advertising for your home will generate more interest, leading to more buyers wanting to visit your home in person.

How much does home staging cost?

Firstly, it is important to see home staging as an investment. Property styling statistics tell us that by having your home professionally styled, you can add between 7.5 and 12.5 percent onto the final sale price. In every case, you will at the very least make your money back, usually making significantly more.

The cost of home styling depends on what you want. It is possible to have a single consultation with a home stylist for between $150 and $500, but you would then have to carry out their recommendations yourself. Most sellers choose property styling packages, which can include a whole variety of services such as decluttering, and cleaning and minor repairs, as well as styling and hiring furniture.

The cost of a full property styling package can range from $1,500 for a one-bedroom apartment up to $10,000 for a large family home, but this is money well-spent.

Should you consider DIY home styling for sale?

If you want to style your property yourself, the most important things are to declutter and give your property a thorough clean. Make sure any minor repairs are done; and remember that a coat of paint can give the space a much fresher feel.

However, if you really want to make a difference, you also have to consider how much it might cost to hire furniture for a house sale, unless you can borrow the items you need from family and friends.

Most importantly, you need to consult with a reputable real estate agent, who will be able to offer advice on what you need to do. They will also be able to put you in touch with a professional home stylist.

If you need any further information and advice, please contact us, and we will be happy to help.

Equity is a key requirement for home upgraders, which in turn is important to unlock homes for first-home buyers to get into the market.

However, after booming in 2021, market activity has slowed considerably. With lots of equity to play with, why are sellers more reluctant going into 2023?

Higher prices enable property upgrades

National home prices remain up almost 30% since the onset of the pandemic. In some cities and regional parts of the country, prices are up by more than 40%.

This means almost everyone who owns property - more than 2/3 of Australian households - has seen significant equity gains (the value of a home less how much is still owed on it).

Home equity is very important for housing market activity. Upgraders need enough funds to pay for both the deposit on a new home (typically 20% of the purchase price) and the costs of the transaction (stamp duty, agent fees etc.).

Equity gains throughout the pandemic can therefore enable people to reach the next rung on the housing ladder, or invest in new property.

These strong equity positions are a key reason why housing market activity (the rate of home sales) reached very high levels in 2021 and early 2022.

But market activity has since decreased. This is despite prices continuing to be up considerably on pre-pandemic levels across much of the country.

So why have sellers seemed to lose confidence despite their sizeable equity positions?

Interest rates limit the use of equity

A big factor is higher interest rates.

The RBA has increased interest rates by more than 3 percentage points since May 2022, the fastest pace on record. This has reduced how much people can borrow by more than 25%.

The sentiment of those with mortgages, which includes potential upgraders or investors, has fallen significantly more than renters or outright owners over recent months.

This plummet in sentiment is likely due to the pressure higher mortgage repayments are placing on household budgets. This is on top of high inflation, which is increasing the cost of living for all Australians.

But home equity insulates upgrade buyers from interest rate increases to some extent.

Due to their equity positions, a typical recent upgrade buyer borrowed just $217,500 in 2019/20, almost half that of first-home buyers ($372,100). This is despite repeat buyers purchasing substantially more expensive homes, on average.

Their smaller loans mean three-quarters of recent upgraders have housing costs less than 25% of their total household income.

But higher interest rates still limit their purchases. 25% lower borrowing capacities can have a meaningful impact on what properties an upgrader or investor can buy, even if they only borrow half the purchase price.

And to the extent upgraders sell to first-home buyers (who typically borrow close to 80% of a home's value), these borrowing capacity reductions can affect how much they can sell their current home for.

This is why borrowing capacities and housing market activity historically tend to have a close relationship.

So what’s the outlook for market activity over 2023?

Looking at the historic relationship between housing market activity and mortgage rates combined with home price growth suggests that housing market activity will continue to fall into the middle of this year - roughly back to 2020 levels.

But market activity has held up better than historical relationships would suggest, something that is likely to continue.

There are a number of positives for market activity over 2023:

• The equity positions of existing owners remain very strong
• The uncertainty about interest rates and borrowing capacities will dissipate
• Housing demand remains exceptionally strong, with rental shortages evident across much of the country
• Housing construction will continue at a solid rate, owing to the significant backlog of projects yet to be completed

Supporting this, financing data shows investor lending – typically to those with strong equity positions – has remained relatively resilient in the face of mortgage rate increases.

In conclusion, higher interest rates mean market activity is unlikely to return to 2021 levels. But strong underlying conditions in the market are likely to support higher rates of activity than was seen before the pandemic.

*Article written by Paul Ryan, Economist, realestate.com.au

Here are some simple but powerful tips to help you get started – or improve – your budgeting game:

1. Know Your Numbers

Start with the basics: how much money comes in, and how much goes out. Grab your bank statements and list:

• Your income (wages, Centrelink payments, side hustles, etc.)
• Your regular expenses (rent, groceries, subscriptions, transport, etc.)
• Irregular expenses (like rego, birthdays, school costs)

This gives you a clear picture of your financial reality.

2. Use the 50/30/20 Rule (or Tweak It!)

A popular way to budget is:

• 50% on needs (rent, food, bills)
• 30% on wants (eating out, entertainment, shopping)
• 20% on savings or debt repayments

You can adjust the ratios based on your goals and situation – the key is to give every dollar a job.

3. Track Your Spending

This is where the magic happens. Use an app, spreadsheet, or even a notebook to record where your money goes. You’ll quickly spot leaks – like daily coffees or unused subscriptions – and can make better choices.

4. Set Realistic Goals

Budgeting without goals is like driving without a destination. Whether it’s saving for a holiday, paying off a credit card, or building an emergency fund, having a goal helps keep you motivated and disciplined.

5. Automate What You Can

Set up automatic transfers for bills and savings as soon as your pay hits your account. That way, your money goes where it needs to – before you're tempted to spend it.

6. Build a Buffer

Life throws curveballs – car repairs, unexpected bills, or emergencies. Aim to build a small buffer (even $500 to start) so you’re not stuck using credit when the unexpected happens.

7. Review and Adjust Regularly

A budget isn’t “set and forget.” Check in weekly or monthly to see how you're tracking. Life changes – and so should your budget. Don’t be afraid to adjust.

8. Be Kind to Yourself

Some months will be messier than others – that’s okay. Budgeting isn’t about perfection, it’s about progress. Celebrate the small wins and keep moving forward.

Final Thoughts Budgeting isn’t about limiting your lifestyle – it’s about making sure your money is working for you. With a few good habits, you can take control, reduce money stress, and start building the future you want.

Note: Did you know you can ask AI for help with budgeting? Tools like ChatGPT or Grok can assist with creating plans, tracking expenses, or even suggesting tweaks to your budget – making the process much easier and tailored to your needs. Give it a try! 

Let’s take a look at some of the highs and lows of 2023, and what we can expect to see in 2024.

Looking back on 2023

Interest rates climbed and then plateaued

From May 2022, the Reserve Bank of Australia (RBA) began an aggressive cycle of tightening the cash rate in order to get inflation under control.

In 2023, we saw the RBA lift the cash rate in February, March, May, June and November, leaving mortgage holders grappling with rising repayments and cost-of-living pressures.

This month, the cash rate has remained on hold at 4.35% as the RBA assesses the impact of the increased interest rates and the economic outlook.

The RBA went under the microscope

In April 2023, Treasurer Jim Chalmers released the findings of the Review of the Reserve Bank. It was the first external review of Australia’s central bank in four decades.

Some of the key recommendations included:

• The RBA should have a ‘monetary policy board’ with greater economic expertise and shift to eight meetings a year (instead of 11) to allow more time to consider issues.
• There should be a press conference after each meeting to encourage more transparency, and board members should speak publicly about the board’s work.
• Two separate boards should be established – one for monetary policy, the other for governance of the RBA.
• The inflation target of two to three per cent should be retained.
• There should be five-yearly reviews of the RBA’s monetary policy framework and policy tools.

Meanwhile, Michele Bullock was appointed as the RBA’s first female Governor, taking over from Philip Lowe on September 18. She said her priority was to develop a “culture of sharing, debate and respectful challenge” inside the bank.

Property prices rebounded in many markets

In good news for homeowners, property prices climbed in many markets in 2023.

Despite rising interest rates, we saw a 2.3% increase in property prices over the first six months of 2023, and the upwards trend continued in the second half of the year.

A lack of supply of available properties was one of the main driving factors propping up property price growth.

Rents skyrocketed

Rents across Australia rose at a rapid pace in 2023, with landlords hiking rents to cover rising mortgage repayments.

Limited rental supply added fuel to the fire, set against the backdrop of a surge in Australia’s migrant population growth.

What’s ahead in 2024

Interest rates may drop

All four of the Big Banks are predicting the cash rate will drop in 2024.

Commonwealth Bank expects a cash rate drop as early as March, while NAB is anticipating the RBA will cut the cash rate in August. Westpac believes the RBA will lower rates in September and December. ANZ anticipates a cash rate drop towards the end of 2024.

The RBA will have a shake up

Treasurer Jim Chalmers and RBA Governor Michele Bullock are working through the details, but we will likely see some of the recommendations of the RBA review implemented in 2024.

Former governor Philip Lowe in July committed to cutting the number of board meetings to eight from 11 from next February.

For borrowers, that means there will be more time between decisions for borrowers to adjust to any changes in the cash rate.

Property prices may continue to climb

The property price rebound looks set to continue into 2024.

According to the Domain Forecast Report Financial Year 2023-24, house prices in Sydney, Adelaide, and Perth, and unit prices in Brisbane, Adelaide and Hobart, could have fully recovered from the 2022 downturn by the end of this financial year. Sydney is expected to lead the way, with house prices rising 6% to 9% by the end of June 2024.

Rental growth may slow

It may not be great news for investors, but renters will be happy to know that rental growth may slow in 2024. There are a number of reasons for this, according to CoreLogic Head of Research Eliza Owen.

For one, rents move with interest rates, and interest rates could fall next year.

Housing preferences could also change, with people moving to share houses as income growth softens and rents become less affordable.

Planning a 2024 property purchase?

With interest rates expected to come down and property prices on the rise, 2024 is shaping up to be an exciting year for property owners.

If you’re planning a property purchase, talk to a mortgage broker about getting pre-approved on your finance, so that you’re ready to dive in when you find the right property.

***Article written by SA Finance Hub

1. Buyer Demand Is at a High

The Gold Coast remains one of Australia's most desirable destinations, attracting continued interstate migration and lifestyle-driven buyers. With a tight supply of quality homes and townhouses on the market, we're seeing strong competition and excellent sale prices—especially for well-located investment properties.

2. Holding Costs Are Rising

Interest rate hikes and rising insurance premiums have put pressure on investment returns. Even though rental prices have increased, they haven’t always offset the growing costs of property ownership. If your cash flow is being squeezed, it could make sense to exit now while prices remain high and buyer confidence is strong.

3. The Market Is in Your Favour

We’re currently in a seller’s market across many Gold Coast suburbs. Properties are selling quickly, and buyer demand is outstripping supply in key pockets like Bundall, Broadbeach Waters, and Labrador. Timing is critical in real estate—and from what we’re seeing on the ground, the time to act is now.

4. Regulatory Changes Are Coming

New rental reforms in Queensland are already starting to shift the landscape for landlords. Stricter tenancy laws and increased compliance costs may reduce flexibility for investors in the near future. Selling now allows you to stay ahead of regulatory changes that could affect your returns.

5. Unlock Capital for New Opportunities

Selling a high-performing property can free up equity for new ventures—whether you're diversifying your portfolio, planning a major life purchase, or looking for greater liquidity. The market is giving sellers an opportunity to realise strong capital growth—use it to your advantage.

Get a Strategic Appraisal from a Local Expert

At Smyth Real Estate, we don’t just provide market appraisals—we help you understand the bigger picture and how your investment fits into it. Whether you’re thinking about selling now or six months from now, having the right advice today could mean a better result tomorrow.

📞 Call us for a confidential chat

🌐 www.smythre.com.au

✉️ Or book your free appraisal online Property Appraisal | Smyth RE

There’s a joke that does the rounds every now and again: “If your husband says he will fix something around the house, he will do it. There’s no need to keep nagging him every six months.”

While this might give some people a chuckle, the truth is we all put off the cleaning and repair jobs that don’t exactly spark joy, especially when life gets busy.

If you’re ready to roll up your sleeves and tackle a few of those outstanding projects we have some tips.

What to DIY when you’re home more

Most tradespeople will tell you they are often called in once a DIY job has gone awry so unless you have a lot of experience, stick to smaller, simple projects. Leave things like plumbing and anything related to electricity to the pros and don’t attempt to use dangerous tools if you’re not familiar with them.

However, with that being said, there are plenty of things you can do around the house.

Sort your storage

First things first, it's decluttering time. Go through your linen closet, your wardrobe, your kitchen cupboards and your laundry. Have separate piles of things to keep, repurpose, sell online, pass on to charity and throw away.

If you’re overwhelmed, start with a type of item, for example, jackets, shoes or towels. With your entire collection in front of you, it should be easy to make decisions.

There is no better feeling than an organised wardrobe, pantry or toy room. While you’re in the process of decluttering, have a cloth and bucket of warm soapy water handy so you can give things a wipe down as well.

Many local furniture and department stores are open and offering contactless collection so do some research if you are looking to buy shelves or storage units to help tidy your home. Flat-pack bookshelves, storage units or shelves can make a big difference to the way your home is organised and they are easy to assemble.

If you don’t want to make some spare cash from decluttering, why not consider donating some of your reusable belongings to a local charity.

Cleaning: Go deep

It’s not an attractive prospect but there are certain cleaning tasks that you’ll find very satisfying to complete.

These include:

•  Under the fridge
•  Under the beds
• Behind and under the couch
• Your outside gutters
• Your oven
• Your fridge
•  Your front door (or consider pressure washing the entire front of your house, including your driveway)
•  Air conditioner filter

You can delegate tasks like polishing doorknobs or cleaning windows to older children, with an incentive for their participation.

The advantages of doing a deep clean include appliances working better than they have in a while and potentially discovering areas of your home that are in real need of attention.

Many hardware stores had to put a cap on cleaning supply sales with a limited amount available to each customer. While there is still plenty available, you might wish to get creative and make your own cleaning supplies.

Get handy

Tasks like fixing leaky taps, repairing gates, filling cracks and tidying up outside are all good for DIY. You will find a lot of tutorials online to help you get the job done the right way.

You could also take on a painting project and use your time at home to paint a bedroom or space in your home that needs freshening up. Again, track down some tips and stick to them. Painting can be harder than it looks and the bulk of the work is in the preparation.

Here’s a step-by-step guide to painting the interior of your home. It includes a list of the supplies you will need.

Find a project

You might also wish to upcycle some furniture, repurpose space in your home as a study, build some basic shelves in the garage or get to work on an outdoor playhouse now you have the time.

Take each project step by step and try not to rush. If you have older children, try involving them with less challenging parts so they can join your sense of achievement. Some projects kids might enjoy include sanding and repainting furniture, making a mosaic from old broken tiles or helping to sew new curtains.

Another project you will be pleased you got your teeth into is finding your favourite photos, printing them and creating a wall display. Again, this can be a fun one to work on with children.

If you’re really creative (and a little brave), you could work on a mural to add some personality to one of your walls. Use light colours so it can be painted over when the time comes. Here’s another step-by-step guide.

One thing to keep in mind when planning projects is the impact they will have on the value of your home. If you’re thinking of listing your property for sale (or rent) this year, focus on deep cleaning, repairs and cosmetic upgrades so your property looks its best when the agent, photographer and buyers come through. 

Remember those small DIY projects you were going to do ‘one day? Well, whilst we’re spending more time at home, it’s the perfect opportunity to get stuck in.

The stats are in; DIY projects are on the rise. According to the AFR, Bunnings sales rose 19.2% over the five months to May 31st 2020 and paint by Dulux has been riding this Bunning’s Boom.

As our ISO days made every day feel like one long Sunday, many people used DIY projects to help fill the void.

Unless you’re an absolute paragon of domesticity, you (like us) most likely have drawers that stick, rooms that could do with a refresh and at least one cupboard you haven’t opened in ages.

So, if you continue to work from home or spend more time indoors on the weekends then its time to brush up your DIY skills.

In this article, we give you some ideas about what projects you can tackle safely.

Buying and selling houses can be tricky, particularly if you are selling and buying a home at the same time. Should you buy a new property first, or sell your current home before purchasing a new one? It's an age-old conundrum.

We take a look at the pros and cons in the light of the current housing market, to help you make the right decision.

How to buy a new house in the current housing market

Talk to your agent to find out whether you are facing a buyers or seller’s market. In most property markets, selling your property before buying your next is most sensible.

Once you have released the equity from your current property, you can keep your eye out for a property you love and negotiate knowing how much money you have to spend.

However, putting the above aside, the process you choose will depend entirely on your circumstances.

Can I buy another house before I sell mine?

Technically, there’s absolutely nothing to stop you buying your next property first if you can afford it. Buying a new home before selling your current one does have a couple of advantages:

●     It means you don’t miss out if you fall in love with a particular property before you have sold your own.

●     It gives you more time to complete the move – you can take your time moving all your possessions, as there is nobody else waiting to move into your current home.

However, these elements tend to be outweighed by the advantages of selling your current home before you buy a new one:

1. You are more likely to achieve the best possible sale price

If you sell your current property first, you have time to make it look as attractive as possible so it will gain a higher sale price. You can also take time to consider offers and negotiate with buyers until you get the results you want.

If you have already bought a new property, you might feel time-pressured, as you could be paying two mortgages at once, or have a bridging loan. This could tempt you to sell your current property for less than it is worth for a quick sale.

2. You know exactly how much money you have to spend

Selling your current property first lets you know exactly what you can afford when it comes to purchasing a new property. It prevents you from getting into financial difficulties through overestimating the value of your current property, then not achieving the sale price you wanted.

3. It can save you time as well as money

If you buy a new property before you sell yours, you will not only have to pay two mortgages and two sets of bills, you will also be responsible for the upkeep and maintenance of two properties. This can take up a considerable amount of your time when you should be settling into your new home.

4. Remember, you don't have to rush your move

Ideally, you need to find a new home as quickly as possible after selling your current one. However, it doesn’t mean you need to end up staying with relatives! You can always seek to extend the settlement period on your current property to give you more time to find a new property you love.

Find out more about how to buy a house while selling your own

One of the most important things to do when buying or selling a house is to find an experienced and reputable real estate agent who will be able to make the process as smooth as possible for you. If you would like more information about buying and selling houses, or want to know how to build a house before selling yours, please contact us, and we will be happy to help.

Selling and buying a home at the same time can be tricky – read on to find out the best approach.

Are you thinking of selling your home but haven’t yet found a new property?

Do you want to find out more about how to buy a home when you haven’t yet sold yours?

We understand that buying and selling a property can be a tricky process, particularly when you are selling and buying a home at the same time.

We have put together this informative article to help you decide which step to take first, and we are also here to help.

Please feel free to contact us if you would like to discuss your personal situation and options.

Edward Smyth hasn’t been in real estate that long, and entering the industry wasn’t initially on the cards.

“When I was younger I wanted to be a professional footballer; my dad used to be one,” he laughs. “I’ve played for my country [Northern Ireland], but then my dad said that I wasn’t good enough – so he sent me to university!”

High grades at school in English Literature, Economics and Politics gave Smyth the opportunity to choose from a range of disciplines when it came time to go to university, including Law and Politics. But on 11 September 2001 the world saw an act of terrorism like never before, and Smyth decided instead to study the world of risk management and finance. This led to his first job in investment banking with Morgan Stanley, where he was once again a quick study and swiftly headhunted by a firm in London.

“Fifteen hours a day, five days a week I’d sit with eight computer screens, two phones, just staring at the stock markets – analysing and digesting the moves and finding smarter and faster and quicker ways to deliver the information through science,” says Smyth.

Making the move

After a period of time running his own derivatives trading desk, three years ago he made the move to Australia – but with clients in Europe and the Middle East, along with working in a different time zone, the days were long.

“I just lost the passion for it… there was so much terrorism going on that it didn’t feel right. If an airplane blew up I could either make my clients a lot of money, or alternatively I’d lose lots of money; neither one was sitting right.”

At a career crossroads, Smyth started selling real estate part time to see if it was the right move for him.

During that time he met his business partner, Karen Stewart, who happened to sell him a house. Stewart has been in real estate for more than 15 years so, Smyth says, their skills complement one another.

“I didn’t want to be a ‘normal’ real estate agent, because I’d get bored. I don’t cold call and I don’t door knock. But I love big data, and I love the move towards AI and I felt that there could be a fit.”

Acquiring and nurturing leads

“In real estate it’s not hard to acquire data; it’s what you actually do with it that counts. It depends on your systems,” says Smyth.

“Using these tools, we’re communicating to the database in ways that the database wants to be communicated to, whether that’s text messages, emails or phone calls.

“We’ve moved away from mass marketing and more getting into the nitty-gritty, servicing people with the information they require.”

Using these tools to their fullest extent is the domain of Edward Smyth, who has set up some clever automations, tracking each lead so he knows when one needs to be followed up.

But Smyth acknowledges that technology will never replace the human touch.

“Technology increases the probability and frequency of you getting in touch with more people, either face to face or with phone calls. Agents just need to make sure they don’t hide behind technology and thinking it’s going to garner the most business. It’s actually just a way to increase your opportunities.”

And more good news; Smyth also says you don’t have to make 100 phone calls every day.

“I try to connect with 20 people every day and add three new people to the database; that’s my KPI.

“I don’t sit with scripts; I just get on the phone and try to peel back the onion, try to provide value and try to provide a service.

“When I say I don’t cold call, I genuinely don’t think I do. My version of a phone call might be [to] someone who came through a past open home. I’ll call them up and say, ‘Remember you came to that open home? We’ve got another one in the area’… and then take it from there.”

That said, Smyth also says that if you’ve got nothing to say, don’t make the call – but with one caveat, which he delivers with a wink.

“If you’ve got nothing to say, then you shouldn’t be in real estate. There is always something to say.”

Building the database

Smyth has already gained a reputation for getting out there to mentor and help other agents.

His advice for new agents is to keep moving with the times.

“You can’t just come up with an idea and sit back and think it’s going to make you successful. You can’t drop 4,000 flyers and think you’re going to get five listings. You’ve just got to do all of it all the time – and don’t stop.

“What’s really important for a new agent, the key to real estate, is you’ve got to match sellers with buyers. That’s it. That’s what we do really well.

“If you are a new agent, get some old open home books – everybody has old open home books, any company you ever go to – and call them. Update the database. Find out where they are at now.”

Then it’s time to start building relationships. Smyth says he is working on a project in one of his postcodes to find out exactly how many houses there are in the area vs how many were on the market. Then you can match the names and add them as Facebook or LinkedIn connections.

“I can digitally chat to these people every day, sometimes two or three times per day,” he explains.

An important part of the strategy to build the database is using relevant Apps so the data can be captured and nurtured anywhere.

“What we do is, if someone comes to an open home we get first name, last name, email and phone – unless they specifically tell us they don’t want to give their email. We always ask for it.

“Once we get their email, it goes into our systems right there and then, so the person will get an email saying, ‘Thanks for joining us. Can we get to learn a bit more about you? Are you upsizing, downsizing, investing?’

“By the time that they’ve got home on a Saturday afternoon, they have the opportunity to tell us where they are in the real estate cycle.”

The next step is to get on the phones on a Saturday afternoon or on a Monday to follow up.

“We might say something like, ‘Thanks for filling out the information. I know that you’re looking for a townhouse up to the value of $700,000. Can you tell us a bit more? Is there a kind of style, location, whatever?’”

Marketing property on Facebook

While Smyth spends a lot of time on Facebook, he says he doesn’t overthink it as the algorithm is always changing.

“Content-wise, I use whatever is in my head that day. I don’t have a big grand strategy or plan. If I’ve got new listings I post the video and photos and I sponsor it; but make sure you’re sponsoring ads through Ads Manager, not just boosting posts.

“I’ll run three different ad sets, as an example. One might be a carousel, one might be just the photos, one might be the video. Whichever one is performing best, I’ll add budget to that one.”

But you also can’t just set and forget. And don’t forget Smyth is an expert at data analysis from his previous career.

“I’m constantly analysing ad performance; every day I’m reviewing and managing it personally. It’s too important to outsource. If a client gives me $10,000 for Google and Facebook, all those funds go into Google and Facebook.

“If I outsourced it they might only get $5,000 or $7,000 in actual advertising because you’ve got to pay the outside company. That’s actually one of our listing tactics, that we will manage it for you so you’ll get all your money in marketing.”

Communicating with multiple stakeholders

The rise of teams has seen the increased use of collaboration apps, and Smyth says some of his favourites are Microsoft Suite with To-Do, his automation driven CRM and particularly WhatsApp.

“Most times we will have multiple parties on the property title, and parties will be speaking with all involved.

“There’s a lot of information that can be lost in communication when you’re talking to one party and they don’t speak to each other until later in the day.

“What we like to do is get both agents and the clients in the same chatroom and then boom, we keep all the communication together. Whether that’s iMessage or WhatsApp or whatever. It means that I don’t have to turn around to someone and go, ‘Have you updated John Smith?’ and vice versa. There is no double handling of clients because we are constantly communicating and can see what’s happening in real time.”

Standing out from the crowd

Smyth feels that where tech is headed in real estate is more and more automation. He says his next move is working on is upgrading all automated systems to make them look, sound and feel more personal, so when people send through a realestate.com.au or a domain.com.au enquiry there is an automatic response system that provides information about a property – including things like strata fees, council rates, size of the block and other useful information.

“I really want to personalise the automation; that’s my next thing,” says Smyth. “How do you get to more people more quickly based on what they want?”

But standing out will be the big challenge.

“If someone has been to ten open homes, and everyone sends an automated email after the fact, that’s ten emails the potential buyer is going to get. What makes yours special?”

In fact, what will make you stand out, Smyth says, is being able to hone in on what the client wants using technology to execute your strategy.

“That’s how you win the future war. In my opinion!”

Source: https://eliteagent.com/big-on-data-edward-smyth/

Record levels of borrowing, three consecutive months of median price rises in every capital city, very high clearance rates up to 90% and 20-plus registered bidders at auctions. Not what you’d expect during a once-in-a-century pandemic but that’s what’s happening today.

Here’s why housing is so hot:

Record low interest rates, with the official cash rate likely to remain at 0.1% until at least 2024, according to the Reserve Bank Governor

Strong competition between the banks has pushed home loan rates down further

A significant lack of homes for sale (30% down year-on-year nationally in January) means more competition per property

More buyers are in the marketplace, predominantly upgraders and first home buyers

Many upgraders would not be in the market without COVID-19. The pandemic has inspired them to seek more space and/or move further away from the CBDs

A surge in people (mainly remote workers) leaving our big cities for lifestyle areas, with regional centres experiencing better price growth than the capitals in 2020

Billions of dollars in stimulus have kept people employed via JobKeeper and helped struggling home owners stay in their homes by taking up mortgage deferrals

The early access to superannuation was a game-changer for deposit savers, giving them access to $20,000 for singles or $40,000 for couples pooling their resources

HomeBuilder has enabled many young couples to buy their first home and given stability to the construction sector, which is a big employer in Australia

Millions of dollars that would usually be spent on travel is being pumped into property as people upgrade their homes in lieu of holidays

First home buyer demand is at a record high, driven by low interest rates and generous government incentives, such as slashed stamp duties

Australia is a global leader in managing the virus, which has led to higher consumer confidence

Vaccination programs worldwide are underway, with Australia to commence first doses by the end of February

Houses are outperforming apartments in today’s market, with the gap becoming increasingly evident in CoreLogic’s latest data.

While house prices across Australia grew by 3.5% over the past six months, apartment prices were stagnant. Over the past three months, houses have done better than apartments in every capital city.

This is a pandemic-induced trend. The virus and lockdowns have made people want more space around them. They also want more comfort at home, so they’re spending what would ordinarily be their travel and holiday budgets on renovations or an upgrade.

Many who can now work from home are moving to more affordable areas further away from the CBDs.  Seachangers and treechangers leaving cities for regional areas are also targeting houses. This is the case for both buyers and renters.

This has led to a fall in rents for apartments, which has dissuaded new investors from buying. Investors tend to buy apartments, so their absence is impacting this market more.

Meantime, new high rises continue to be built and supply is overtaking demand in some areas of our large cities. 

This presents great opportunity for first home buyers, who typically start their journey with a one or two bedroom apartment. If apartment prices soften further in 2021, young people in secure jobs can buy incredibly well now and wait for the next uplift in values, which will probably be after the international border opens.

Go into today’s marketplace with confidence. Owners of good quality homes can expect strong prices. Buyers can borrow more and enjoy a better home, potentially with some immediate capital growth if the market remains this strong all year.

The only things that will cool this market down are a third wave of the virus or a significant uptick in stock for sale. So, if you’re thinking of selling, the first half of 2021 is looking like a great window of opportunity to me.

The views expressed in this article are an opinion only and readers should rely on their independent advice in relation to such matters.

This article originally appeared in The Real Estate Conversation (February 15, 2021)

This estimate from local market data specialist Statista complements a report from Harvard University that suggests three-quarters of homeowners feel a great sense of accomplishment by completing their projects.

Now is a perfect time to focus on improving your home, especially if you are thinking of selling.

The real estate market is extremely strong right now as State governments around the country do their best to stimulate the property market with grants for first-home buyers and stamp duty discounts.

If you are thinking about downsizing or climbing up the property ladder, this is a tremendous time to make that move.

For homeowners, a critical element of a successful marketing campaign sale is their focus on preparing the property sale. Often, this involves rolling up your sleeves and undertaking a few DIY projects.

Interestingly, the Harvard study found owners were most anxious about their renovation efforts at the beginning of the process. So, I have put together some guidelines to help reduce any stress levels as you prepare for a DIY endeavour.

1 - Stay within your skill level

One of the biggest mistake’s homeowners make is to overestimate their own ability to get the job done. Do not attempt a project that you might have to abandon because you don’t possess the necessary knowledge. It does not matter how many YouTube videos you watch; some tasks require a professional.

Unless you have the expertise, avoid any project that involves the structural integrity of the building. Focus on high-impact, cosmetic enhancements that will capture buyer attention when you’re ready to sell.

2 - Don’t DIY everything

It’s relatively easy to recognise a home that has been the subject of DIY projects rather than improved by licensed contractors. There is such a thing as too much “do-it-yourself” improvement. Unless you’re in the building game, employ professionals for the bigger projects, otherwise, the value of your home could suffer because of the quality of your workmanship.

3 - Don’t assume a return on investment

There’s a common assumption that you’ll always make a profit from spending money on your home. That’s not always the case. When you sell, it will be impossible to know if your asking price was achieved because of a particular renovation. Before deciding to go down the DIY path, get your property appraised by an agent who can advise you what buyers are currently demanding. We’d be happy to help. You can also attend open homes to see what today’s buyers value.

4 - Best surprises come in small packages

Small, incremental improvements to your home can mount up after a while. Something as simple as replacing your front door and painting it a fashionable black gloss or primary colour can lift your home’s appeal. Similarly, new external light fittings and some attractive landscaping will also make a significant impact.

5 - Think about investing in technology

Most home improvements focus on traditional areas such as the kitchen, bathroom or outdoor entertaining area. But you will also impress prospective buyers by installing hi-tech solutions for security, smart lighting, temperature control and home entertainment.

6 - Create a budget and stick to it

Assess the cost of materials and any additional labour you may wish to employ. If you find this a problematic exercise, then seek quotes from a minimum of three contractors. Keep your brief consistent, or you’ll not be able to compare the responses accurately.

Your budget should ensure you purchase only the materials you can afford. If costs spiral, you can use your budget to make the appropriate cost-cutting.

Research shows that if you don’t create a budget, it’ll cost you at least an additional 30% of the total project cost.

7 - Avoid the nightmare of running out of money

Unless you’re using cash flow, you’ll need to arrange a loan for the project. Make sure you have a sufficient line of credit with your lender so you don’t run out of money midway through the project.

If you need extra assistance or advice, please get in touch today using the details provided.

CLICK HERE FOR AN APPRAISAL

For all borrower types, new lending has fallen and the value of new lending to investors was down 34.8% year-on-year in January and 35% lower than peak levels recorded in March 2022. The number of new loans to investors almost halved from that peak to hit the lowest level since August 2020.

Although the value of new lending to investors has taken a hit, the share of overall lending to investors has only declined a little since mid-last year, holding around one third (33.5%) of all new mortgages. That’s well up from the 2021 lows of closer to just one fifth (22.8%) of new lending.

Throughout 2021 and into the first half of 2022, investor activity increased to a local cycle high, reaching just over 35% share of all new lending, the highest it’s been since 2017 when macroprudential measures sharply impacted investor activity.

A look at where investor enquiry has most increased in the past year

The overall volume of enquiry from investors fell 20% over the calendar year 2022 as interest rates quickly climbed and the housing market rebalanced off 2021’s extremes. The volume of investor enquiry fell in four out of five suburbs Australia-wide.

However, irrespective of the fast rise in interest rates and shift in market conditions, there are some regions that have seen increased investor activity in comparison to the previous year.

According to enquiry data, investors set their sights predominantly on Western Australia in 2022, with the number of enquiries from investors more than doubling in parts of the state throughout the year. Some parts of regional Queensland and Adelaide were also popular.

Lending indicators data from the Australian Bureau of Statistics released earlier this month corroborates the enquiry data, showing the value of investor loans in WA has only fallen 9.6% year-on-year, compared with a 34.8% decline nationally. And when comparing the past year  with the corresponding 12 months prior, the value of new lending to investors in WA is up 26.2%.

Investors turn their attention to the North and West

Rental markets in Perth have been tight for some time and vacancy rates dropped sharply in 2020, with very limited supply. The same is true for parts of regional WA. Rental markets are tight Australia-wide, and at a national level, advertised weekly rents on realestate.com.au surged by 9% for houses and 12% for units over the past year.

Perth now has the tightest rental market in the country with the lowest rental vacancy rate among the capital cities of just 0.85%. Rental yields are also some of the highest nationwide in the suburbs of WA and regional Queensland, likely piquing investor interest.

Prices in WA are some of the most affordable in Australia, which is probably another driver of the increase in investor demand. The share of mortgage repayments for an average income household on a median priced dwelling in WA is less than in every other state, with the exception of the Northern Territory.  And again, with the exception of Darwin, Perth is the cheapest capital city. The median value of homes in Perth is currently sitting at $564,000 and $606,000 in regional Queensland, another comparatively affordable region, as of January 2023.

Relative affordability was also a factor underpinning conditions in these markets in 2022 with more expensive regions experiencing a faster pace of price falls.

After the large and fast adjustment in interest rates since May last year, with maximum borrowing capacities for potential buyers now reducing by close to 30%, price is likely to have been, and will continue to be another driver of the increased investor demand in more affordable regions.

Some regional WA suburbs, particularly those tied to the mining industry, have increased in popularity among investors, with strong yields and tight rental supply keeping rental prices high.

Adelaide, another rental market facing incredibly tight rental supply and record low vacancy rates has also experienced strong rental price growth.

Suburbs in Adelaide are also among those who saw the largest increase in investor interest in comparison to the year prior.

Home prices in Adelaide are also more affordable  compared to the larger capital cities, with the median value of homes currently sitting at $648,000, making the price point attractive in the face of significantly reduced borrowing capacities. In terms of Sydney suburbs, there are only three that make the top 50, with two of those actually making the top 10 suburbs with the greatest year-on-year increase in enquiry from investors.

Ultimo, an inner-city suburb, set to benefit from returning international arrivals and rebounding numbers of student arrivals saw enquiry from investors more than double.

Inner city rentals are in short supply and weekly rents continue to rise. Home price growth in the inner city has also underperformed relative to coastal and outer suburbs over the past three years, meaning these regions present a relative discount in some cases, particularly in the apartment market.

Clovelly, a more affordable suburb compared to others in Sydney’s eastern suburbs region that has seen some of the strongest rental price growth of anywhere else in the city over the past year. It also saw investor enquiry more than double through 2022. New data from PropTrack revealed the top 10 Sydney suburbs for growth in weekly house and unit rents, with Clovelly topping that list.

Sydney’s rental market was hard hit through the pandemic, but as life returned to normal and international borders reopened last year, rental demand quickly returned,. with conditions tightening fast for much of last year.

These tough conditions are ongoing and expected to remain with strong rental demand and tight supply seeing asking rents continue to rise.

Interestingly, there is not one Victorian suburb in the top 100 suburbs where investor enquiry most increased through calendar year 2022.

In terms of where the absolute level of investor enquiry was highest throughout the calendar year 2022, unsurprisingly larger, higher density inner city suburbs and regional centres hold the top spots.

However, in most of these locales, investor enquiry dropped off compared to the level seen in 2021, with the exception of Brisbane City, Melbourne, Redbank Plains, and Adelaide.

Brisbane City saw a 51% year-on-year increase in enquiry from investors throughout 2022. Home prices in the city have surged since the pandemic onset, rental price growth has also been strong, and properties are renting out very quickly with heightened demand for rentals in the city.

Although the affordability advantage has compressed, the city remains affordable in comparison to Sydney, Melbourne and Canberra. And elevated net migration into Queensland since the pandemic onset has underpinned already strong rental demand, with population growth surging.

What could 2023 hold for investors?

Rising interest rates have dented affordability and legislative changes are adding pressure to landlords. But with Australia in the grip of a rental crisis, markets remaining tight, and strong rental demand ongoing, what’s next?

Rental vacancy rates are sitting at historic lows – and rents are rising. Immigration is rebounding strongly, which will add to rental demand for landlords as new migrants and international students are significantly more likely to rent than buy when they first arrive in the country. Particularly in the major capitals, where we know migrants are most likely to rent – and predominantly in the inner and middle ring suburbs of Sydney and Melbourne.

The latest population data from the ABS indicated the September quarter of 2022 brought the largest quarterly increase in net inward migration on record.

The latest overseas arrivals and departures data, a good proxy for the less timely migration data, continues to point to those strong inflows having continued into this year, with net permanent arrivals rebounding fast to pre-pandemic levels and on track to well outpace Treasury forecasts.

Alongside the competitive rental market conditions, declining property prices and rising rents have meant rental yields are recovering off Covid lows. However, with changing legislation occurring alongside the significant reduction in borrowing capacities, rising mortgage servicing costs, reduced capital growth prospects, and uncertainties around where interest rates will land, investors remain hesitant.

Investor loans are continuing to trend lower, with the number of new loans to investors down from the peak of activity in March 2022 with 21,663 new loans to just 11,485 in January 2023, a fall of 47%. Though that’s still up 27% from the just 9034 loans to investors in May 2020.

Once interest rates pause their climb, as they are expected to this year, investor activity may begin to increase if uncertainty reduces and confidence increases.

This will be welcome news for tenants, with the beginning of an ease in the critical undersupply of rental properties that has been exacerbated by reduced investor activity. Although, without a significant increase in activity, this is unlikely to cover the meaningful increase in supply of rental accommodation that’s needed.

Tough rental market conditions may also encourage others into home ownership sooner than otherwise and together with investor activity, strong rent growth has potential to offset the downwards pressure from rate rises and buffer price falls in some parts of the country.

** Article is written by Eleanor Creagh, Senior Economist, Proptrack

The next move for these rates (assuming they no longer go negative, which I am sure they will not) will be to gradually start climbing again. So, what if rates double to say 4%+, what impact does this have on house prices?

It is easy to assume that in real estate, rising interest rates make things more difficult by increasing the associated costs of owning property and that the reverse is true as well.

Impact on Buyers

Using a simplified example, if a home buyer wants a 2% rate on a mortgage worth $1,000,000, the weekly payments would be approx. $924 (30-year term/ Principal+Interest/Live-In).

If rates go to 4%, on the same mortgage worth $1,000,000, the weekly payments would be approx. $1,194. an increase of $270 per week, or a 29% increase.

Therefore, the bank is likely to adjust its lending amounts in correlation to the purchaser's ability to service the loan repayments. The impact this has is that if rates continue to rise, say they move up again to 5%, then the bank will only lend the amount of money based on the mortgage applicant’s ability to keep up with the repayments unless the income of the applicant moves up in line or greater than the rate increase then their borrowing power will be less.

Impact on Sellers

Raising interest rates can affect sellers differently. Using a crude example, if Emilia wants to sell her house for $1,000,000 and markets it for sale with such price expectations, she may find that the level of competition for her home is reduced (competition drives prices), because buyers can now afford to borrow only $900,000 based on their income and the lending criteria set by banks. So Emilia's pool of buyers has reduced as a result of the increased rates.

Emilia can still make a profit of course if she times and plays the market well enough. But what this should indicate is that a rapidly increasing rate environment can have a direct impact on the slowing and/or decreasing of housing prices.

Impact on Property Prices

There is no doubt that rising rates can have a clear effect on both buyers and sellers. There are situations that can help explain that housing prices have a direct correlation to the mortgage rate, but what is of critical importance to this is the health and prosperity of the underlying economy.

If the economy is growing at a fast enough and sustainable rate, then the impact on housing prices shouldn't be too dramatic. This is a result of the overall outlook, for example, if mortgage rates were hiked 1% on a $1,000,000 loan, then the weekly increase would be $130. If the economy is buoyant then employers should be able to increase the salaries of individuals in line or above this increase in their home costs. If the economy continues to strengthen in line with and/or better than rising rates, with continued job growth and wage growth, then the impact of the rising rates will not have a paralysing effect on housing prices, they can work together.

Impact on Real Estate Investing

Effects on buyers and sellers are very noticeable, but what about investors who already own property, well a rise in rates can be of great benefit!

Competition and scarcity drive economic markets. If rising rates lead to a reduction in real estate transactions, because of tougher lending standards, for example, more people will need to rent whilst they work on saving towards a sustainable mortgage.  If fewer people are qualifying for mortgages owing to higher rates and seller expectations still high, then there will be increased demand for rental properties, which could push rental prices and therefore yields higher.

Adversely, if the rising of rates does put some downward pressure on prices, then former tenants may decide that it is better to buy into the market at a time when demand for buying properties is reduced.

Buy or Sell?

Not buying into this market purely based on the fear of rising rates should be dismissed. Please note however there is a myriad of considerations before taking the plunge. What is undeniable though is that debt has never been cheaper either in our lifetimes or that of our ancestors. "Interest Rate in Australia averaged 4.07 percent from 1990 until 2021, reaching an all-time high of 17.50 percent in January of 1990 and a record low of 0.10 percent in November of 2020." (Source)

Selling can also be a wise move if it fits in with your overall strategy, the demand for property is statistically just coming off of a 30-year high.

Summary

When the economy is strong, interest rates tend to rise along with growth.

Higher interest rates, however, translate into higher mortgage loan costs.

Rising rates may affect home buyers and sellers alike.

Thought to conclude...

Economic theory can be referred to as a zero-sum game, this means that if the total gains are added up and total losses subtracted the result is zero.  Why is this relevant? If you are the purchaser of a $1,000,000 property today and I am the seller, then the property (out with associated costs) exchanges for that amount. As the seller, I may have gained $500,000 in profit having bought the property 15 years ago and now settling into retirement, whereas the buyer will look to realize that profit over the next 15 years whilst primarily enjoying the home first or adding to a growing property portfolio.

If you need any real estate advice or just want a price check on your home, please get in touch and we will respond immediately.

Written and published by Edward Smyth, Former Chartered member of the Securities and Investment Institute (UK) and founder of Smyth Real Estate

BOOK APPRAISAL

The Initial Impact of COVID-19 on the Gold Coast Property Market

When the pandemic first hit in early 2020, uncertainty loomed over the real estate sector. Lockdowns, border closures, and economic slowdowns initially dampened market activity. However, the Reserve Bank of Australia's (RBA) record-low interest rates and government incentives—such as the Home Builder grant—quickly reignited demand. As Australians sought lifestyle changes and work-from-home flexibility, the Gold Coast emerged as a prime destination for buyers escaping major metropolitan cities like Sydney and Melbourne.

The Boom: 2020-2022

What followed was an unprecedented property boom. Median house prices on the Gold Coast surged as interstate migration reached record levels. Low interest rates, high demand, and constrained supply saw properties selling faster and at premium prices. Suburbs such as Burleigh Heads, Broadbeach, and Palm Beach became hotspots, attracting buyers seeking coastal living and larger homes.

Investors also capitalised on the strong rental demand, with vacancy rates dropping to historic lows. Short-term accommodation surged as domestic travel rebounded, with holiday homes and Airbnb properties experiencing high occupancy rates.

Market Stabilisation: 2023-Present

The post-pandemic real estate market has gradually stabilised. Interest rate hikes from mid-2022 onwards curbed the rapid price growth, with affordability concerns slowing buyer enthusiasm. While property values remain strong, the rate of appreciation has moderated. Some areas have experienced slight price corrections, but overall, the market has retained its resilience.

Interstate migration has continued, albeit at a steadier pace, as affordability pressures in major cities persist. The demand for quality rental properties remains high, keeping rental prices elevated and vacancy rates low.

The Current Economic and Real Estate Climate in 2025

1. Interest Rates and Borrowing Costs: Higher interest rates have impacted borrowing capacity, leading to more selective purchasing decisions. Buyers are prioritising value-for-money properties, and first-home buyers face increased challenges entering the market.
2. Rental Market Pressures: Rental affordability has become a major concern, with rents remaining high due to continued demand. Supply shortages, particularly in long-term rentals, are exacerbating the issue.
3. Development Challenges: Construction costs, labour shortages, and regulatory hurdles have slowed new housing developments. Delays in approvals and higher costs have put upward pressure on property prices.
4. Interstate Migration: While migration has slowed compared to the peak pandemic years, the Gold Coast remains a desirable location for those seeking lifestyle changes, particularly retirees and remote workers.
5. Commercial Real Estate Adjustments: The shift towards hybrid work models has influenced commercial real estate. While office spaces have adapted, demand for flexible and co-working spaces has increased.
6. Tourism Rebound: The return of international tourism has revitalised the short-term accommodation market, benefiting investors in the holiday rental sector.

What’s Next for the Gold Coast Property Market?

The future of the Gold Coast property market remains promising, albeit more balanced. Population growth, ongoing infrastructure developments, and strong lifestyle appeal will continue to drive demand. While affordability remains a concern, strategic investment and careful market navigation will provide opportunities for buyers, sellers, and investors alike.

At Smyth Real Estate, we are closely monitoring market trends and helping clients navigate the evolving landscape. Whether you’re looking to buy, sell, or invest, our expertise can help you make informed decisions in this post-COVID market.

For tailored advice on how these changes impact your property goals, contact Smyth Real Estate today.

But looking at the property market through a national lens doesn’t show the full picture, and some markets are seeing growth slow as more sellers take their properties to market.

The latest PropTrack Home Price Index – released today – shows prices have grown every month of this year, remaining resilient in the face of higher interest rates. However, the pace of growth has slowed in recent months with the increase in properties coming to market giving buyers more choice.  

After falling through the second half of 2022, national home prices have since fully recovered these losses to sit 1.29% above their previous peak and 5.42% above levels a year ago.

This year’s spring selling season has been stronger than last year’s so far, particularly in Sydney and Melbourne. That reflects improved selling conditions, more certainty about interest rates, and the fact that prices are growing across much of the country this year, compared to declines last year. These factors have supported vendor confidence.

As a result, choice has improved significantly in the major capitals which has seen the pace of growth slowing. But although the flow of new listings hitting the market has risen, demand for housing has remained strong and home prices have continued to move higher, albeit at a slower pace. 

Where price growth is slowing

In the capital city markets that led the home price recovery, or defied price falls entirely, price growth has slowed as the spring selling season has unfolded.

Compared to 3-months ago quarterly growth in Sydney, Brisbane, Perth, and Adelaide has slowed, although these markets still remain the top performing over the past year and continue to record strong growth despite slowing.  

The regions where growth is slowing fastest are regions that experienced an exceptionally strong pace of growth through the winter months of this year. For example, the Adelaide Central and Hills region saw house prices lifting 4.56% in the quarter ending August 2023, an annualised pace of close to 20% - well above the long run average annual pace of growth. 

Looking at unit price growth the trend is similar, with regions that experienced an exceptionally strong pace of growth earlier this year slowing fastest.  

Unit prices in the Sunshine Coast lifted 4.82% in the quarter ending August 2023, an annualised pace of more than 20%.   

The curtailing of the pace of growth from the exceptional pace experienced in some regions earlier in the recovery is natural given the rapid turnaround in prices earlier this year, a higher volume of listings hitting the market relative to the winter months and affordability constraints in play.

Looking at where price growth has slowed fastest compared to 6 months ago also paints an interesting picture.  

In Sydney, the total number of properties listed for sale has been on the rise since June 2023. Whilst total listings remained at historically low levels earlier this year the surge in the number of properties hitting the market has seen choice increase and the total number of properties listed for sale is now above the average seen over the past decade.

The regions where growth has slowed fastest over the past 6 months are predominantly Sydney regions where choice has significantly improved relative to earlier in the year.

In Sydney there was close to 14% more total listings in October than has been typical on average over the past decade.

In Melbourne, there’s also been an improvement in choice for buyers with the total number of properties listed for sale around 20% above its average over the past decade. However, the recovery in Melbourne has lagged and therefore and isn’t home to many of the regions where price growth has slowed fastest with the uplift in properties listed for sale.

In Brisbane, Adelaide and Perth choice for buyers remains restricted, with total listings much lower than the average over the past decade.  

In markets that have been slower to hit their low point or where prices are still falling - Canberra, Hobart, and Darwin – the pace of quarterly growth has accelerated relative to 3 months ago.

Regional areas were also slower to join the 2023 home price recovery but every regional area except regional NSW and SA has seen the pace of quarterly growth has accelerate relative to 3-months ago.

Why prices will continue to grow 

Despite the pace of growth slowing in some parts of the country, further growth is expected ahead, although the pace at which prices have grown this year is expected to continue slowing into 2024.

Strong housing demand, buoyed by record net overseas migration, tight rental markets, low unemployment and home equity gains of recent years, has worked alongside limited housing stock to offset the impacts of higher interest rates.

Earlier this year the turnaround in home prices was underpinned by the subdued listings environment that meant buyers were competing for fewer properties. However, although the volume of new listings hitting the market has increased in some regions in recent months, the positive tailwinds for housing demand remain.

At the same time, the sharp rise in construction costs, compounded by costly delays arising from labour and materials shortages, has slowed the completion of new homes hampering the supply of new housing.

Looking ahead, although there is a risk that interest rates rise further, they are close to, if not already at their peak and while the outlook for the economy is weaker, population growth is set to remain strong.

Together with the housing shortfall and continued challenging conditions in the rental market, prices are expected to continue to rise despite affordability remaining stretched.

However, price growth is expected to slow from the above average growth seen in 2023 as the positive tailwinds for housing demand and a slowdown in the completion of new homes counter the sharp deterioration in affordability and slowing economy. 

** Article written by Eleanor Creagh, Senior Economist at Proptrack

Current Market Overview

At the end of 2024, property prices on the Gold Coast remained at record highs, fueled by strong demand and limited supply. Migration from interstate, particularly from Sydney and Melbourne, has kept the pressure on housing, with many buyers willing to pay premium prices for homes near the coastline and within key growth corridors.

Despite these demand levels, stock remains constrained. CoreLogic and REA Group data indicate that the number of listings in the Gold Coast market is well below historical averages. This is partially due to ongoing reluctance from homeowners to sell, as well as delays in new developments that have stalled supply.

Supply Issues and Development Delays

One of the biggest hurdles for the Gold Coast housing market is the shortfall in new housing supply. The city’s construction sector has faced numerous challenges, including:

• Rising construction costs – Labour shortages and increased material costs have made building more expensive and slowed the rollout of new housing projects.
• Planning and approval delays – Local councils and state government processes have struggled to keep up with demand, leading to bottlenecks in development approvals.
• Infrastructure limitations – Transport, roads, and public amenities need expansion to support new developments, but funding and planning have lagged behind population growth.

These factors mean that even as demand surges, the number of new dwellings being completed remains well below what’s required to keep pace with migration trends.

What to Expect in 2025

Looking ahead to 2025, several key trends will shape the Gold Coast property market:

1. Continued Price Growth (But at a Slower Pace?)

The affordability crisis is real, but demand for property remains high. Unless there is a significant increase in supply, prices are unlikely to drop. Instead, we may see a moderation in the rate of price growth rather than a sharp decline.

2. Rental Market Pressures Will Continue

The rental market remains under pressure, with record-low vacancy rates and rising weekly rents. Investors who hold property in high-demand areas will likely continue to see strong yields. Renters, on the other hand, may face further price hikes unless more rental stock comes onto the market.

3. Interstate and International Interest Remains Strong

The Gold Coast remains one of the most desirable destinations for both domestic and international buyers. With the 2032 Brisbane Olympics drawing closer, infrastructure projects and global attention on Southeast Queensland will likely sustain buyer interest in the region.

4. More High-Density Living Solutions

Given the shortage of land for standalone homes, the shift toward high-density developments such as apartments and townhouses will continue. Areas like Southport, Broadbeach, and Robina are already seeing an increase in mid-rise and high-rise developments to cater to growing demand.

5. Government Intervention?

Pressure is mounting on the government to address housing supply and affordability. In 2025, we may see increased incentives for developers, potential tax breaks for build-to-rent projects, and streamlined planning approvals to fast-track new housing.

Advice for Buyers, Sellers, and Investors

For Buyers: If you’re looking to enter the market, acting sooner rather than later may be wise, as prices are unlikely to decrease significantly. Consider emerging suburbs with upcoming infrastructure projects.

For Sellers: The limited stock situation means you’re still in a strong position. If you’re considering selling in 2025, the demand is likely to remain strong, particularly for well-located properties.

For Investors: The rental crisis presents opportunities for investors, particularly in high-demand suburbs. Strong rental yields and continued migration make the Gold Coast a viable long-term investment option.

Final Thoughts

The Gold Coast property market in 2025 will continue to be shaped by supply shortages, strong demand, and ongoing affordability challenges. While government interventions and new developments may help ease some pressures, the fundamentals of high demand and constrained supply mean the market will likely remain competitive. For those looking to buy, sell, or invest, staying informed and making strategic decisions will be key to navigating the year ahead.

More than 80% of population growth is currently stemming from net migration, which means more working-age adults than it would if growth stemmed from natural increase.

This means that growth in the adult population is steadily higher than total population growth, leading to a surge in demand for housing.

Meanwhile the residential construction industry has been challenged by capacity constraints and higher costs, leading to fewer new builds.

In fact, the supply deficit has never been so extreme. 

Although this period follows one where growth in the working age population lagged new housing, net migration has caught up and outpaced the losses during the Covid period. 

Further, smaller household sizes during the pandemic resulted in significant additional demand for housing and roughly offset the entire lost population increase across both 2020 and 2021 combined.

Although recent data suggests that average household sizes (AHS) have slightly increased from the historic lows seen during the pandemic, AHS remains below pre-pandemic levels at 2.5 people.

The lasting preference for living with fewer people is continuing to add to housing demand driving up house prices and rents.

And now net migration has fully caught up the pandemic losses and then some, meaning demand for housing is much stronger while supply fails to keep pace. 

Despite some easing in population growth, this ongoing mismatch between supply and demand has offset the higher interest rate environment and is expected to persist in mitigating the downward effects of affordability challenges, fuelling further price rises.

Using the official population change in the year to September 2023, a potential 264,000 additional households would have needed homes.

Around 170,000 new homes were completed in that period, meaning a shortfall of around 94,000 homes based on potential new household additions, assuming average household sizes remained constant.

Typically, recent arrivals to Australia are more likely to rent, and existing dwellings are also housing options, but the deficit clearly illustrates the shortage impacting both prices for existing homes and the rental market.

This strength in housing demand relative to supply is one reason why home prices have remained resilient to the higher interest rate environment.

Strong labour market conditions, tight rental markets, home equity gains supporting upgrade activity and more recently interest rate stability have also been drivers of robust homebuying demand. 

This dynamic has fuelled a strong start to the year with home prices rising quickly in early 2024, though it is reasonable to expect a slowing from here as we move into a seasonally quieter period for property markets, especially with interest rate cut expectations pushed back.

This week the PropTrack Home Price Index showed the pace of monthly growth has slowed since March in every capital city, except Darwin.

Annual growth rates also look to have peaked in most capital city markets, slowing in Sydney, Melbourne, Brisbane, Adelaide, and Perth. Though Canberra, Hobart and Darwin saw the pace of annual growth increasing slightly.

But despite slowing growth, the home price uptrend remains intact and prices in most markets are recording robust growth.

The smaller capital cities continue to outperform, and Perth, Adelaide and Brisbane remain the strongest markets over the past year with prices 20.16%, 13.99% and 12.82% above April 2023 levels respectively. 

The relative affordability of these cities’ homes, population growth, and very tight rental markets are supporting home values. Low stock levels are intensifying competition amid strong buyer demand, resulting in a sellers’ market with home prices rising at a fast pace in 2024. 

 In fact, outside of houses in Perth (+20.80% year-on-year) the unit market in Brisbane is the top performing over the past year with prices up 15.08% compared to the same period last year.

Unit prices nationally have outpaced houses year to date, with affordability constraints in play. With housing affordability having deteriorated significantly, many buyers will shift down the value chain making trade-offs as dictated by what remains affordable.

The significant reduction in borrowing capacities and deterioration in affordability are being reflected elsewhere as lower value homes are recording stronger growth than more expensive homes across the combined capital cities. This is a direct contrast to the same time last year when the upper end was driving the recovery. 

The stable interest rate environment has likely been a driver of confidence among buyers and sellers, and with housing supply unable to meet demand across the country, national home prices reached a fresh peak in April as robust demand has continued to push prices upwards.

Higher interest rates and inflation are squeezing household budgets, and many remain concerned about the economic outlook. But property prices are expected to lift further this year, with housing demand buoyed by population growth, tight rental markets, resilient labour market conditions and home equity gains, alongside the stable interest rate environment.

The supply side of the housing market has fallen short in responding to substantial demand. Building activity is at decade low levels, exacerbating the housing supply shortage and maintaining a floor under home prices.

Although higher than expected inflation in the March quarter has pushed back the expected timing of rate cuts most still expect that the next move for interest rates will be down. However, the timing remains uncertain.

As a result, prices are expected to lift further in the months ahead, though it’s likely the pace of growth will continue slowing as the seasonally quieter winter period approaches, particularly in tandem with rate cut expectations being pushed further out.

The smaller capital city markets, Perth, Adelaide, and Brisbane are likely to maintain their outperformance despite growth slowing as constrained stock levels are intensifying competition amid strong buyer demand. 

***Article Written by Eleanor Creagh, Senior Economist at Proptrack

At its May board meeting, the RBA lifted the official cash rate by 25 basis points, marking the 11th hike in its tightening cycle, bringing the cash rate to 3.85% - its highest level since April 2012.

The hike was another blow to struggling mortgage holders, who will see their repayments increase - as well as borrowers, with maximum borrowing capacities now down by around 30% since rates started rising.

With the release of the April Home Price Index report, here are the top 4 things you need to know:

Housing supply still very tight

Belle Property head of network growth Nick Boyd said he did not believe the rate rise will deter buyers or sellers due to the fact the volume of homes available for sale was drastically low compared to previous years.

“And that's why these interest rate rises haven’t actually curbed the appetite for real estate,” he said.

“The reality is there are more buyers in the market.

“The silver lining in all of this is, that people who are going through hardship right now - with interest rate rises and cost of living - and they own a property, they should have confidence knowing that the market is stable enough to transact within if they need to.”

Impact on buyer confidence

AMP Capital chief economist Shane Oliver said the RBA decision has left “a bit of a cloud” over the housing market recovery.

“Interest rates were always the main risk for the market recovery," he said.

“[This year] we started to see that recovery creeping through, with the key drivers being a surge in immigration at a time when property supply is very constrained, combined with a perception that interest rates were close to the top.

“But since then, we've had three hikes and that might cause some potential buyers to rethink.

“I suspect many buyers will consider holding off just to see how far the RBA does go with rates.”

PropTrack economist Anne Flaherty said the latest rate rise was going to impact buyer confidence.

“I think that many people have delayed decision making around both buying and selling until they see where interest rates end up,” she said.

“We had a pause last month, which helped restore a bit of confidence, but now that we've seen another interest rate rise, that's just going to make people feel a little bit more uncertain about what could happen.”

Borrowers yet to feel pinch

The lag between interest rate rises and its flow on effect on the economy was important to note, Ms Flaherty said.

“We know that there’s a several-month lag for mortgage holders so we are still seeing the impact of previous interest rate rises hitting mortgage holders.

“So yesterday's decision again is going to take several months to be fully felt in the economy.”

Mr Oliver said the best case was the May rate hike was a mere “speed bump” in the property market recovery.

“It causes things to soften a bit in the auctions, prices to flatten out a little bit but not come down a lot,” he said.

“But there is a risk that it knocks things lower and there’s always the risk that the more they (the RBA) keep raising interest rates, the greater the risk of recession.”

Price still up, despite capacities reducing

While the average buyer’s borrowing capacity now reduced by almost 30%, Ms Flaherty said in property prices have fallen significantly less than that.

“And in fact, over the first four months of this year, we've even seen property prices consistently rising,” she said.

“I think one of the reasons is the restricted stock of properties for sale, which means that buying environment is still quite competitive.”

Shortages within the construction industry and a reduction in housing supply were also supporting resilience in property prices, she said.

“I think the impact of interest rate rises is being felt disproportionately across our economy,” Ms Flaherty said.

“First home buyers have been among the hardest hit by these interest rate rises because essentially, the combination of price rises and interest rate increases has decreased their borrowing capacity and has effectively shut many first-time buyers out of the market.”

**Article written by Lisa Calautti, Property Journalist 

How much is your property worth? Property Appraisal | Smyth RE

1. Not Defining Your Goals Clearly

Before spending a cent, define why you are renovating. Are you upgrading your forever home, flipping for profit, or improving a rental property? Your goals will shape your renovation choices and budget.

• If you’re staying long-term, focus on comfort and functionality.
• If you’re selling soon, prioritise renovations that add resale value.
• If it’s an investment property, choose cost-effective upgrades that attract tenants and maximise rental income.

2. Failing to Plan and Budget Accurately

Renovations almost always cost more than expected. To avoid financial strain:

• Set a budget and stick to it.
• Get multiple quotes from tradespeople.
• Allocate at least 10-20% extra for unexpected expenses.
• Research material costs and factor in labour fees.

3. Overcapitalising on Your Renovation

Overcapitalisation happens when you spend more on renovations than you can recoup in resale value. Research your local property market to understand the price ceiling in your area. Instead of excessive spending, focus on renovations that provide the best return on investment:

• Kitchen and bathroom updates
• Fresh interior and exterior paint
• Adding an extra bedroom or ensuite
• Smart storage solutions
• Outdoor entertaining spaces

Luxury finishes and expensive fittings may look appealing but may not yield the best financial return.

4. Ignoring Necessary Permits and Regulations

Failing to obtain the required approvals can lead to costly legal issues, fines, or having to undo work. Before starting:

• Check local council requirements for building permits.
• Ensure compliance with zoning and structural regulations.
• Work with licensed professionals to meet Australian standards.

5. Attempting Too Much DIY

DIY can be a great way to save money, but some tasks require professional expertise. Knowing when to DIY and when to hire experts can prevent costly mistakes.

DIY-friendly tasks:

• Painting
• Removing old flooring
• Demolition (non-structural elements)

Jobs best left to professionals:

• Electrical and plumbing work (illegal without a licence)
• Structural modifications
• Waterproofing bathrooms
• Tiling and high-end carpentry

If a professional can do the job faster and with better quality, it may be worth the investment.

6. Choosing Trendy Over Timeless

Trendy designs may look great now, but they can quickly become outdated. Stick to classic, neutral styles for major elements like flooring, cabinetry, and fixtures. You can add personality through easily changeable elements such as paint, décor, and accessories.

7. Not Considering the Living Arrangements During the Renovation

Renovations can be disruptive. If you’re living in the property while it’s under construction, consider:

• Setting up a temporary kitchen if remodelling the existing one.
• Creating a dust-free zone to maintain some normalcy.
• Arranging alternative accommodation if the work is extensive.

8. Hiring the Wrong Tradespeople

Hiring unqualified or unreliable tradespeople can result in poor workmanship and costly fixes down the line.

• Always check references and reviews.
• Ensure they are licensed and insured.
• Get a detailed contract outlining the scope of work, timelines, and costs.

9. Not Planning for Unexpected Costs and Delays

Even the best-planned projects encounter delays due to weather, material shortages, or unforeseen structural issues. To mitigate this:

• Build a buffer into your timeline and budget.
• Order materials in advance to avoid supply chain disruptions.
• Have a contingency plan for potential setbacks.

10. Financing Without a Strategy

There are multiple ways to fund a renovation, each with pros and cons. Consider:

• Refinancing or topping up your mortgage.
• Using redraw or offset account funds.
• Taking out a personal or construction loan.

Not sure which option suits you? Speaking with a financial expert can help you find the best way to fund your renovation.

Final Thoughts: Plan Before You Renovate

A successful renovation comes down to planning, budgeting, and making informed choices. Whether you're upgrading for personal comfort or resale value, focusing on high-impact, cost-effective improvements will ensure the best return on investment.

Considering a renovation? Reach out if you’d like some ideas—we’d be happy to help! We work with a great team of trusted, friendly tradespeople who are ready to bring your vision to life.

The next move for these rates (assuming they no longer go negative, which I am sure they will not) will be to gradually start climbing again. So, what if rates double to say 4%+, what impact does this have on house prices?

It is easy to assume that in real estate, rising interest rates make things more difficult by increasing the associated costs of owning property and that the reverse is true as well.

Impact on Buyers

Using a simplified example, if a home buyer wants a 2% rate on a mortgage worth $1,000,000, the weekly payments would be approx. $924 (30-year term/ Principal+Interest/Live-In).

If rates go to 4%, on the same mortgage worth $1,000,000, the weekly payments would be approx. $1,194. an increase of $270 per week, or a 29% increase.

Therefore, the bank is likely to adjust its lending amounts in correlation to the purchaser's ability to service the loan repayments. The impact this has is that if rates continue to rise, say they move up again to 5%, then the bank will only lend the amount of money based on the mortgage applicant’s ability to keep up with the repayments unless the income of the applicant moves up in line or greater than the rate increase then their borrowing power will be less.

Impact on Sellers

Raising interest rates can affect sellers differently. Using a crude example, if Emilia wants to sell her house for $1,000,000 and markets it for sale with such price expectations, she may find that the level of competition for her home is reduced (competition drives prices), because buyers can now afford to borrow only $900,000 based on their income and the lending criteria set by banks. So Emilia's pool of buyers has reduced as a result of the increased rates.

Emilia can still make a profit of course if she times and plays the market well enough. But what this should indicate is that a rapidly increasing rate environment can have a direct impact on the slowing and/or decreasing of housing prices.

Impact on Property Prices

There is no doubt that rising rates can have a clear effect on both buyers and sellers. There are situations that can help explain that housing prices have a direct correlation to the mortgage rate, but what is of critical importance to this is the health and prosperity of the underlying economy.

If the economy is growing at a fast enough and sustainable rate, then the impact on housing prices shouldn't be too dramatic. This is a result of the overall outlook, for example, if mortgage rates were hiked 1% on a $1,000,000 loan, then the weekly increase would be $130. If the economy is buoyant then employers should be able to increase the salaries of individuals in line or above this increase in their home costs. If the economy continues to strengthen in line with and/or better than rising rates, with continued job growth and wage growth, then the impact of the rising rates will not have a paralysing effect on housing prices, they can work together.

Impact on Real Estate Investing

Effects on buyers and sellers are very noticeable, but what about investors who already own property, well a rise in rates can be of great benefit!

Competition and scarcity drive economic markets. If rising rates lead to a reduction in real estate transactions, because of tougher lending standards, for example, more people will need to rent whilst they work on saving towards a sustainable mortgage.  If fewer people are qualifying for mortgages owing to higher rates and seller expectations still high, then there will be increased demand for rental properties, which could push rental prices and therefore yields higher.

Adversely, if the rising of rates does put some downward pressure on prices, then former tenants may decide that it is better to buy into the market at a time when demand for buying properties is reduced.

Buy or Sell?

Not buying into this market purely based on the fear of rising rates should be dismissed. Please note however there is a myriad of considerations before taking the plunge. What is undeniable though is that debt has never been cheaper either in our lifetimes or that of our ancestors. "Interest Rate in Australia averaged 4.07 percent from 1990 until 2021, reaching an all-time high of 17.50 percent in January of 1990 and a record low of 0.10 percent in November of 2020." (Source)

Selling can also be a wise move if it fits in with your overall strategy, the demand for property is statistically just coming off of a 30-year high.

Summary

When the economy is strong, interest rates tend to rise along with growth.

Higher interest rates, however, translate into higher mortgage loan costs.

Rising rates may affect home buyers and sellers alike.

Thought to conclude...

Economic theory can be referred to as a zero-sum game, this means that if the total gains are added up and total losses subtracted the result is zero.  Why is this relevant? If you are the purchaser of a $1,000,000 property today and I am the seller, then the property (out with associated costs) exchanges for that amount. As the seller, I may have gained $500,000 in profit having bought the property 15 years ago and now settling into retirement, whereas the buyer will look to realize that profit over the next 15 years whilst primarily enjoying the home first or adding to a growing property portfolio.

If you need any real estate advice or just want a price check on your home, please get in touch and we will respond immediately.

Written and published by Edward Smyth, Former Chartered member of the Securities and Investment Institute (UK) and founder of Smyth Real Estate

BOOK APPRAISAL

PropTrack’s latest Home Price Index for May has shown the national rise in prices already seen so far this year gathered pace in May, broadening and accelerating across markets.

According to the figures, national home prices rose for a fifth consecutive month in May, increasing 0.33%, bringing prices up 1.55% from the low point recorded in December last year.

“Home prices in the combined capital cities have risen 1.34% in the past three months, the strongest quarterly growth since the December quarter of 2021,” PropTrack senior economist Eleanor Creagh said.

“Supply constraints have eased slightly with respect to total stock for sale, but the flow of new listings remains soft.

“This is keeping a floor under prices, with sellers benefitting from less competition with other vendors.”

Market conditions have recovered following five consecutive months of price growth, driven by stronger housing demand relative to stock on market, Ms Creagh said.

“Auction activity has improved and clearance rates remain firm after rising above levels seen in the second half of 2022,” she said.

“This was a period when interest rates were rising rapidly and prices were falling in most markets.

“Although they are at, or close to peak levels, interest rates may still rise further and the economy is also expected to slow.”

Home prices grew in every capital city except Darwin, with Canberra and Perth recording the largest increases, with monthly growth of 0.65% and 0.64%, respectively.

Here's how home prices around the country fared in May.

Sydney

Sydney home prices have increased 2.94% this year, with prices rising for the sixth consecutive month in May – up a further 0.58% and 3.03% up from their low in November 2022.

“Sydney led the recent downturn and saw the largest correction, with home prices falling 7.19% from their February 2022 peak to the November 2022 low,” Ms Creagh said.

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“Positive demand drivers stemming from the shortages in rental supply and strong rebound in net overseas migration have buoyed housing demand.”

Home prices in Sydney are "now down less than 2% from levels seen in the same period last year,” Ms Creagh said.

Melbourne

Home prices grew 0.22% - the city’s fastest monthly growth since February last year.

Prices were now up 0.38% from their low point in January 2023 after four consecutive months of gains.

“With the end of interest rate tightening in sight, much of the uncertainty buyers have experienced with respect to borrowing capacities and mortgage servicing costs is subsiding,” Ms Creagh said.

“Given the rebound in migration and tight rental markets, prices have been resilient to the reduction in borrowing capacities.”

Brisbane

Brisbane’s home prices have risen for five consecutive months after increasing 0.33% in May.

Ms Creagh said strong housing demand and constrained supply have offset the substantial deterioration in affordability from rising interest rates.

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“As the rebound has gathered pace, home prices in Brisbane are now up 1.99% this year and down only 1.50% from their peak in April 2022,” she said.

Adelaide

Home prices reached a new peak in May, rising 0.58% compared to April and 2.64% year-to-date.

“Adelaide maintains its top spot as the strongest performing capital city market over the past year, with home prices up 5.60%,” Ms Creagh said.

“The comparative affordability of the city’s homes has seen prices holding up better as interest rates have quickly risen.”

Perth

Home prices in Perth have grown 3.07% so far in 2023, with 0.64% of growth recorded in May making it the strongest performing capital city market year-to-date.

“Perth home prices bucked the falling price trend seen nationally for much of last year and have continued to climb this year,” Ms Creagh said.

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“After Darwin, Perth is the cheapest capital city market in terms of dwelling values. The relative affordability of the city’s homes and tight supply has supported prices.”

Hobart

Following several years of outperformance, Hobart recorded 13 consecutive months of price falls which continued into 2023.

Ms Creagh said housing market conditions improved this year, with rising auction clearance rates and stronger housing demand relative to stock on market.

“Hobart has now joined the national price rebound, lifting 0.07% in May,” she said.

ACT

Home prices in Canberra recorded the fastest monthly growth of all markets in May.

Prices rose 0.65%, which was the fastest pace of growth since March 2022.

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“With stronger market conditions, home prices in Canberra haven risen for three consecutive months and are up 1.00% from their low recorded in February 2023,” Ms Creagh said.

Darwin

Home prices experienced a small 0.01% decline in May, taking them just 0.93% below their peak in May 2022.

Buyers out in force

Buyer interest and levels of enquiry has experienced a marked increase due to a combination of factors, LJ Hooker head of research Mathew Tiller said.

“You have those (buyers) out there that are maybe on the edge of where their mortgage repayments can be and they're actually looking to downsize their mortgage, downsize their houses,” he said.

“But definitely there's owner occupiers looking to upgrade that are really comfortable in their employment position.

“They've had increases in pay rises. So, they're out there in the market, comfortable and confident that they that they can withstand any increase in interest rates.”

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At Smyth Real Estate, we're seeing large numbers of eager buyers at open homes, ready to put pen to paper. So, how can you ensure you don't miss out when you find your dream home?

Here are our top tips for buyers in today's fast-paced market:

1. Get Pre-Approved Finance

Before you even start looking, have your finances in order. A pre-approval from your lender not only clarifies your budget but also demonstrates to sellers that you're a serious and prepared buyer.

2. Be Ready to Act Quickly

Properties are selling rapidly, so delaying decisions can mean missing out. When you find a property you love, be ready to make a decisive move promptly.

3. Transparent Offer Systems

Many properties, especially those managed by Smyth Real Estate, use transparent offer systems. Register early and engage with these systems to clearly see how your offer compares to others and what you might need to do to secure the property.

4. Submit a Strong Initial Offer

With competition high, a compelling initial offer can be crucial. Be strategic but realistic—waiting to negotiate or lowball offers often isn't effective in the current climate.

5. Have Your Team Ready

Prepare a trusted team—real estate agent, solicitor, building inspector, and broker—ready to move swiftly on your behalf. Quick access to professional advice can mean the difference between securing your property and losing it to another buyer.

6. Flexibility Can Help

If possible, be flexible with settlement terms. Often, sellers will choose offers with fewer conditions or flexible settlement terms, even if the price is comparable to others.

At Smyth Real Estate, we understand the pressures and excitement of buying a home in a booming market. Our experienced team is here to guide you through every step, ensuring you're in the best position to act decisively and successfully secure your ideal property.

Don't miss out—be informed, prepared, and ready to act. Connect with us today to give yourself the best possible chance in the vibrant Gold Coast property market.

There is some evidence of stronger wage increases, though it is not broad based. For those private sector jobs that did receive a pay increase, the average increase was 3.8% in the June quarter, the highest increase recorded since June 2012. 
This bears watching next quarter given the September quarter typically sees a larger proportion of pay increases.



Labour market

The labour market remains tight and this week the latest labour force survey shows that in July the unemployment rate fell to 3.4% - the lowest since September 1974. Though this fall from 3.5% in June was driven by a drop in participation.

The underutilisation rate and underemployment rate continue to lower, both measures of spare capacity in the labour force, with stronger linkages to wages growth. The underutlisation rate which refers to people who are either unemployed or looking for more hours of work has fallen sharply, to levels last seen in the 80s.

Inflation

Inflation has surged with supply chain disruptions, higher fuel prices and floods pushing food prices higher.

Though there are signs that inflation pressures could be set to ease off, as freight costs and supply chain disruptions are reversing, while oil and other commodity prices have fallen. Data released from China this week, the world’s factory gate, showed producer prices tumbling. And excess inventories at retailers who over-anticipated the demand pulse are likely to combine to reduce pressure on core goods prices later this year.

Australia’s consumer inflation expectations in August show expectations easing to now sit at 5.9% (vs. prior 6.3%).

RBA minutes

This week the Reserve Bank released the minutes of its August meeting. Providing insights into the RBA’s decision at the meeting to raise rates by 0.5 percentage points, bringing the cash rate to 1.85%.

The minutes, in keeping with the statement, suggest an element of caution with a nod to economic conditions as well as inflationary pressures. The RBA reiterated its data dependent stance flagged in the statement, with no “pre-set path” for further tightening.

The RBA again highlighted the “narrow path” and unenviable task of keeping the economy on an “even keel” whilst returning inflation to its 2-3% target range

The language perhaps an indication of a shift back to a more measured pace of tightening with a return to “business as usual” (25bp) rate rises coming sooner rather than later.

With respect to data dependency, the wages data and the labour force survey released this week have not provided a clean-cut trigger for another 50-basis point hike in September. It’s quite possible the RBA will opt for a less aggressive 40bp increase to return the target to a conventional step point, signaling that the return to “business as usual” (25bp) rate rises is not far off.



Interest rates – a pause in sight?

A spending slowdown is inevitable with household budgets under pressure as the cost of living has risen. The big question is how much household spending slows with higher inflation, higher interest rates and falling house prices (the negative wealth effect), against the backdrop of savings and wealth buffers, a tight labour market and hopefully stronger wages growth.

How these factor interplay will be crucial in determining the loss of conditions in the economy and as a result how high and fast the cash rate rises.

In many developed economies recession is a growing risk. The US is already in a technical recession (two consecutive quarters of negative growth), and weak China growth, Euro zone frailty and a looming pullback in the British economy all spell potential for a global recession.

With easing inflation pressures into year-end, it’s looking more likely that rates could peak towards the lower end of the range of forecasts.

Interest rates are likely to keep rising, but at a slower pace, to levels in line with the lower end of the RBA’s estimated 2.5-3.5% neutral range, as the year ends.

So, what could all this mean for mortgage holders?

The cost of servicing a mortgage will continue to increase, but if the cash rate were to climb to 3% (implying a variable mortgage rate above 6%) that would mean even more pressure on households, so a pause ahead of 3% could be welcome relief.

And for Buyers?

As interest rates continue to climb, borrowing capacities will be further constrained. As the cash rate moves above 2%, and that is passed through to mortgage rates, maximum borrowing capacities will be constrained by close to 20%, meaning many potential buyers' budgets will shrink.

And lastly for sellers?

For those looking to sell it’s not such good news, with price expectations dropping and properties taking longer to sell with fewer competing bidders. With maximum borrowing capacities shrinking and repayments sharply rising, downward pressure on house prices will remain.

** Article written by Eleanor Creagh, Senior Economist, REA Group

The good news is that as long as the foundations of your home are still in good shape, you might not need to knock down any walls or do a complete renovation to add considerable value.

Making your property feel bigger, brighter and more appealing to prospective buyers is often as easy as a lick of paint or swapping out fixtures and fittings for new ones.

On the other hand, knowing which improvements won't add value to your potential sale price means you can focus your time and money on those that do.

Ready to get started? Here are 13 easy ways to add value if you're thinking of selling your home.

1. Paint

Old paint can make your home feel, well, old. But a fresh coat of paint can do wonders. It’ll make your home seem newer, cleaner and more contemporary – and it can easily be done on a tight budget.

If you’re willing to spend the time and energy painting your home yourself, you can get away with only paying for the paint, roller and brushes, drop cloths and other painting accessories. Alternatively, if your budget is a little more flexible, pay for the professionals to do it.

Just make sure to pick neutral colours that’ll stand the test of time or - at the very least - remove dated colours.

2. Improve the garden and outdoor living areas

A goody tidy may be all your garden and outdoor living space need. Cut back overgrown trees, hedges, bushes and foliage, clear up dead leaves, get rid of weeds and dead plants, clean any paved areas, and add fresh mulch if needed.

If you have a deck, give it a good scrub and apply a coat of oil to get it looking spick, span and sellable.

The same goes for any outdoor furniture, features like barbecues or fire pits, and outdoor dining areas.

3. Add storage

Most buyers look for homes with ample storage. This means a good amount of cupboard, cabinet and wardrobe space, shelving, racks, and wall and door hooks.

Furthermore, clutter in general is one of the biggest turnoffs for many would-be buyers.

So if you’re lacking in storage, many of these are easy and relatively inexpensive to add to your home.

You can add wall shelving to rooms like the kitchen, laundry and living area, and hooks to pretty much any room in the home. If you have freestanding wardrobes in the bedrooms, consider changing them to built-ins – these are a big pull for buyers.

4. Improve the facade and landscaping

Your home’s facade is likely the first thing prospective buyers will see, and we all know first impressions count.

If your budget allows, you could give the exterior of your home a serious revamp by having it repainted.

If not, simply painting the front door and sprucing up the front garden, paving and fencing can rejuvenate your home’s facade.

Parts of your garden may also look better with a bit of work. You could add new plants or flowers to bare patches, chuck in some garden features like sculptures or lighting, or even consider adding a 

5. Give the floors some love

Whether you’ve got floorboards, carpet, tiles or something else entirely, any kind of flooring does well with a nice spruce-up to entice buyers.

Have your carpet professionally steam-cleaned to remove stains and get it back to its original glory. There’s only so much cleaning can do, though: if your carpet is too old and far-gone, and the stains are too stubborn, think about replacing it.

You could slot in new carpet or go for a different type of flooring, such as hardwood and the price is often less than you think.

Given their hardiness and attractiveness, hardwood floors are very popular among buyers.

If you have floorboards, have them resanded by a professional. If the budget doesn’t quite stretch that far, you can have them rebuffed and polished to get rid of any nicks.

6. Update the heating and cooling

A quality heating and cooling system – be it gas or electric – is a huge draw for buyers. This is especially the case if you live in a particularly hot or cold climate.

If you already have heating and cooling, consider its age and condition. You might want to upgrade it if it’s been in your home for a long time and isn’t running too well, as buyers will likely look for a modern system that’ll last them years.

And if your home doesn’t have heating and cooling, be sure to have a decent system installed before you take your property to market.

7. Update the blinds and curtains

Blinds and curtains seen better days? It might be time to give them an update. Contemporary window treatments can make your whole home feel different and add value to your property.

If you’ve got old or thick, bulky curtains, think about replacing them with light, airy ones or even shutters or vertical blinds.

Not only will these give your home a fresher, more modern vibe, but they’ll also let in more natural light – making your home appear airier, brighter and bigger.

8. Replace old handles and hardware

If your kitchen is stuck in a timewarp, you may not necessarily need to replace the entire thing. By updating the handles and hardware on your cabinets and drawers, you can instantly make a kitchen feel much newer. You can also do this in your bathroom and laundry.

Just make sure to go for a timeless hardware material, such as chrome or brass, which will appeal to a more diverse range of buyers. And try to match the style of your new hardware to your existing kitchen, bathroom or laundry – minimalist stainless steel pulls might look a little odd paired with a vintage-style kitchen.

9. Replace dated splashbacks

Just like new handles and hardware, replacing the splashback in your kitchen cuts the need to do a full kitchen renovation.

It can also do a lot to make your kitchen look more modern, especially if you go for a classic splashback style like glass, stone, or neutral tiles laid in a timeless pattern.

If you really want to take your new splashback up a notch, and your kitchen is fortunate enough to look out onto a decent view, think about adding a window instead. Along with giving your splashback a significant upgrade, it’ll also welcome lots more light into the space.

10. Replace older toilets and sinks

Your bathroom may not need an entire revamp either.

As long as the bones are good, replacing your toilet, sink and/or vanity can make a world of difference to the overall look and feel of the space.

Go for replacements that are contemporary yet classic to ensure your bathroom is both fresh and timeless. 

11. Replace the tapware

Even the best-quality taps can look worn after time. A great way to quickly update your bathroom is to simply replace the taps, spout and mixer, and maybe even the showerhead while you’re at it.

Choose a style and material that work with your bathroom, even if the space is a little old.

You can also replicate this tip in other areas that utilise taps, including ensuites, the kitchen and laundry – we promise it’ll make any room feel more elevated.

12. Update old and broken light switches

They’re such a small detail in your home that you may not even consider them, but light switches have a surprising impact on a property’s general vibe. If they’re old and starting to turn yellow after years of use, they can make a home seem more dated than it should.

On the other hand, new light switches can make a significant difference. Despite the fact that you’ll need a professional electrician to install them, they’re relatively inexpensive to buy, making them a great budget-friendly way to add value to your home.

*Written by Gemma Kaczerepa, Property Journalist at realestate.com.au
Images from realestate.com.au

Buyers’ mindsets are also starting to adjust to rising interest rates, Moore adds.

"The rate hit 2.60 per cent in October, but we have a much clearer picture of where interest rates are going," he says. "Buyers are probably a bit more comfortable with the trajectory than they were six months ago."

Plus, for prospective first home buyers facing the tightest rental market on record, there's a whole suite of government grants and incentives available to help them on their journey to home ownership.

So, with all these factors in mind, if you’ve been scouring the market and think spring is a good time to act, here are some tips to help you buy a property.

1. Know your financials  

First and foremost, when it comes to purchasing property, getting your head around your budget and outgoing costs is essential.

It’s a good idea to visit the bank, a broker or a financial advisor to look at your earnings and figure out precisely what you will be able to repay each week, factoring in rising interest rates. 

Remember, it's not just the deposit you'll have to factor in. Stamp duty, conveyancing fees and building inspections are all potential costs to factor in.

2. Understand your buying power

While buyer activity is picking up as greater housing supply returns to the market, many are still choosing to hold off. Buyers who move now will benefit from reduced competition, Moore says.

"This is obviously great for buyers as it takes the pressure off," he says. "They don't have this fear of missing out, which gives them more chance to think about their decision."

Take the extra time to do due diligence, get to know the market and pick the home that's right for you.

3. Consider buying new

Too many buyers make the mistake of sticking to the established market when significant gains can be made from a house and land package.

When looking for a bigger family house, homebuilder Anh Nguyen decided to build a two-storey home at Stockland's Grandview Estate in Melbourne.

"We always loved the idea of building, and we thought we could do a bigger house with bigger bedrooms... It was basically a great decision for our family," she says.

"The whole process has been amazing, especially the upfront nature when it came to financial costs."

Nguyen adds creating something from scratch was not only more affordable but also rewarding.

"There is nothing that feels like walking into your own brand-new home," she says. "There's that sense of pride and achievement." 

4. Choose a good community

Buying a new home isn't just about the physical property — the connectivity of the location, local amenities and surrounding community are important factors to consider.

Look for a community with schools, transport, community hubs, sporting fields, and beautiful parklands — these often mean it’s a high growth area and may yield a bigger return if you do choose to sell.

Unique touches and forward-thinking designs make a big difference to a community's liveability, Stephanie Mackenzie, Stockland's general manager of community sales, explains.

Good community creators are always on the front foot, learning from their prior experiences to ensure they are delivering the best possible experience for residents.

"We’ve been tapping into what truly matters to our residents in terms of the community for over a decade now through our annual liveability survey," Mackenzie says. "All these insights are used to shape future communities for generations that are happy, healthy and thriving."

Also, keep an eye out for neighbourhoods that offer opportunity for authentic connection to make daily life more enjoyable.

"We stumbled across Grandview in Melbourne," Nguyen says. "They had put a lot of time and energy into the planning with parks and bike trails. Just looking around the area, we felt like we were at home."

5. Don't wait too long

Home prices have declined due to the rising interest rates — welcome news for buyers trying to make their dream home a reality. However, the downward trend won't last forever, cautions Moore.

"Further out from mid-2023, the fundamentals of housing demand remain very strong and we do expect prices to pick up," Moore explains.

Remember, the home buying journey — especially when buying new — takes research, effort and time.

With conditions becoming more favourable to buyers, as well as great pockets of opportunity, it’s a great time to start the journey.  

**Article written by Stockland 19/10/2022 and found on www.realestate.com.au

Enhancing Visual Appeal:

First impressions matter, especially when it comes to selling a property. Professional home staging is all about presenting your home in the best possible light, highlighting its strengths, and creating an emotional connection with potential buyers. Stagers possess an eye for design, arranging furniture, and decor in a way that optimizes the flow of space, emphasizes key features, and makes the property look visually stunning. By transforming your home into a welcoming and aesthetically pleasing space, you significantly increase its overall appeal.

Showcasing the Property's Potential:

Buyers often find it challenging to envision their own lives in a new space. Home staging helps address this issue by showcasing the property's potential. Through carefully selected furniture, artwork, and accessories, stagers create a lifestyle narrative that allows potential buyers to imagine themselves living in the home. Staging can define each room's purpose, highlight functional spaces, and illustrate the versatility and livability of the property. By showcasing the property's full potential, you increase the likelihood of attracting serious buyers.

Stand Out from the Competition:

The Gold Coast real estate market is highly competitive, with numerous properties vying for buyers' attention. Professionally staged homes have a distinct advantage in this crowded landscape. When potential buyers walk into a well-staged property, they are more likely to remember it amongst the sea of others they may have seen. Staging adds a professional touch that sets your property apart, making it memorable and more likely to stay in the buyer's consideration. By standing out from the competition, you increase your chances of securing a quick sale at a favorable price.

Highlighting Key Features:

Every property has unique selling points, and staging allows you to accentuate those features effectively. Whether it's a stunning ocean view, a spacious living area, or an inviting outdoor space, professional stagers know how to highlight these key features to captivate potential buyers. By drawing attention to these distinctive elements, staging can increase the perceived value of the property and leave a lasting impression on buyers.

Maximizing Online Presence:

In today's digital era, the majority of property searches begin online. Professional staging ensures that the listing photographs and virtual tours are visually compelling, creating a positive and lasting impression on potential buyers. Beautifully staged rooms not only attract more online views but also increase the likelihood of buyers clicking through for further information. As a result, staging enhances your property's online presence, generating more interest and attracting serious buyers to schedule in-person viewings.

Conclusion:

In the competitive real estate market on the Gold Coast, professional home staging has become an invaluable tool for sellers aiming to maximize their property's appeal and secure a successful sale. By enhancing the visual appeal, showcasing the property's potential, standing out from the competition, highlighting key features, and maximizing online presence, home staging creates an enticing environment that connects with potential buyers on an emotional level. Ultimately, the investment in professional staging is likely to pay off, resulting in a quicker sale at a higher price. So, if you're selling your home on the Gold Coast, consider the benefits of professional home staging to give yourself the best chance of success.

Presentation is one of the most important keys to achieving a top sale price for your home. A great presentation showcases the space and light available and puts buyers at ease. Buyers will stay longer at your inspections if the property is presented beautifully.

1. Please de-clutter as much as possible. Minimally furnished rooms with appropriate hints of colour will help showcase the space and light. Too much furniture, especially ornaments, can make a room small. Please ask for our advice!
   
   
2. Power Wash! Who doesn't find the process and more so the results of a good power wash, the results are amazing versus the outlay. We highly recommend having driveways, side access, and even entire homes professionally hosed down; this hugely positively impacts the presentation of a home.
   
   
3. We recommend removing personal photos, as we want buyers to imagine themselves living in your home rather than you and your family. 
   
   
4. Please consider professional styling if we deem it necessary. Styling does not have to be expensive. A few colourful cushions and a bright rug can transform an otherwise dull room.
   
   
5. Invest in professional photography. When we talk about presentation, we're talking not only about how your property looks in the real world but also how it presents in the digital world. Professional photos can make the difference between a buyer dismissing your home or putting it at the top of their list, they are essential to a successful campaign. Smyth RE has its own in house photographer, please see the sold section of our site for examples of recent shoots.
   
   
6. Cleanliness is very important. Buyers won't stay in messy or dirty homes - they will leave the inspection as soon as possible. Preparing for sale can be physically and emotionally draining, so if you ask our advice, it would be to bring in the professionals. We can help you organise for your home to be professionally cleaned.
   
   
7. If you have animals, remove them during inspections, remove food bowls and kitty litter and deodorise all rooms. Bad smells can be very off-putting to buyers.
   
   
8. Fresh flowers always look great, especially on large dining tables or the kitchen bench. Flowers are inexpensive and can add a vital pop of colour to neutral rooms.
   
   
9. Your garden is a critical part of the presentation. If it needs a make-over, prune dead leaves and branches, remove overgrown or unattractive plants, lay some mulch and add a few green shrubs for an easy, inexpensive 'wow factor'.
   
   
10. New paint and carpet is the oldest trick in the book, and there's a reason for it! It's a quick and easy way to transform a tired old property into a bright, attractive home.

Please understand our styling and presentation recommendations do not represent any criticism of your personal style. Our recommendations are based on what will appeal to the likely buyer demographic for your property.

If you have any questions regarding these presentation tips, please call me on 0451 125 809.

* Article written by Kaytlin Ezzy, Economist at Corelogic

Prices across Australia’s capital cities advanced 0.8%, a fifth straight monthly gain, albeit slower than June’s 1.2% pace, data from property consultancy CoreLogic Inc. showed Tuesday. Market bellwether Sydney rose 0.9% while Melbourne grew at a more subdued 0.3%. 

July’s cooling was driven by the upper quartile of the market, which tends to lead the cycle and could be “a sign of a broader easing in the pace of growth over the coming months,” said Tim Lawless, research director at CoreLogic. 

The figures come as the the Reserve Bank has raised its key rate to 4.1% — the highest since April 2012 — hitting consumer sentiment. At the same time, Australia’s job market remains strong, with unemployment at an ultra-low 3.5%.

The cooling in property price momentum will be welcomed by the RBA ahead of its rate decision later Tuesday. Financial markets are betting the cash rate will remain unchanged while economists see a 25 basis-point hike to 4.35%. 

The central bank has lifted borrowing costs by 4 percentage points since May 2022 and signaled a higher hurdle to raise further as it tries to bring down inflation and engineer a soft landing. 

Tuesday’s data showed the flow of new home listings in capital city markets rose almost 4% over July, bucking a seasonal trend in which vendors traditionally put off sales during winter months.

“It may be the case that more home owners are picking current market conditions as a good time to sell,” said Lawless. “Another possibility is that we are seeing the first signs of motivated selling as the rapid rate hiking cycle catches up with household balance sheets.”

Even so, the data indicate the housing rebound that began earlier this year persists — over the three months to July, prices in Sydney surged 4.5% for a median home value of A$1.08 million ($720,000).

Strong population growth in Australia and a supply shortage has fueled price gains despite higher borrowing costs.

“Overall, the housing market remains resilient to a double dip downturn, with housing values continuing to trend higher across most regions of the country,” Lawless said. “The trend in advertised stock levels will be a key factor determining housing market outcomes."

*** Credit: Bloomberg & Corelogic

Houses listed in Springbrook, Lower Beechmont, and Stapylton in the Gold Coast region had 239%, 226% and 185% more potential buyers respectively than a typical suburb in regional Queensland.

With house prices below the median of the region, buyers were likely attracted to the relative affordability of these suburbs.

Seaside and nature-rich areas also continued to be in high demand.

There was at least 170% more potential buyers per listing in Maroochy River, Tallebudgera, and Trigg compared to the median in regional Queensland and Perth.

The trend was similar for units, with Gold Coast, Sunshine Coast, and Brisbane suburbs most sought out by people looking to buy.

Units in Peregian Beach, Currumbin, and Highland Park had 276%, 247% and 219% more potential buyers per listing respectively than a typical regional Queensland suburb.

Red Hill and Wilston in Brisbane also received strong interest from buyers, with 1.7 times more people looking for units compared to the average of the city.

Margaret River in Western Australia was popular among buyers as well.

Heading into spring, we expect demand for homes in Queensland, South Australia, and WA to continue to exceed that of other states.

With more affordable homes relative to New South Wales and Victoria, buyers looking for lifestyle shifts will find these particular states quite attractive.

* Article written by Megan Lieu, Economic Analyst at REA Group

Dwelling values were higher across the four largest capital cities and most of the broad ‘rest-of-state’ regions, led by a 1.4% gain in Sydney.

CoreLogic’s Research Director, Tim Lawless, put the rise down to a combination of low advertised stock levels, extremely tight rental conditions and additional demand from overseas migration.

“Although interest rates are high and there is an expectation the economy will slow through the year, it’s clear other factors are now placing upwards pressure on home prices,” Mr Lawless said.

“Advertised supply has been below average since September last year, with capital city listing numbers ending March almost -20% below the previous five-year average.  Purchasing activity has also fallen but not as much as available supply; capital city sales activity was estimated to be roughly -7% below the previous five-year average through the March quarter.

“With rental markets this tight, it’s likely we are seeing some spillover from renting into purchasing, although, with mortgage rates so high, not everyone who wants to buy will be able to qualify for a loan.  Similarly, with net overseas migration at record levels and rising, there is a chance more permanent or long-term migrants who can afford to, will skip the rental phase and fast track a home purchase simply because they can’t find rental accommodation.”

Monthly Change

Quarterly Change

Annual Change

The lift in housing values has been most evident across the upper quartile of Sydney’s housing market.  House values within the most expensive quarter of Sydney’s market were up 2.0% in March and the upper quartile of the Sydney unit market was 1.4% higher over the month.

“Sydney upper quartile house values fell by -17.4% from their peak in January 2022 to a recent low in January 2023, the largest drop from the market peak of any capital city market segment.  We may be seeing some opportunistic buyers coming back into the market where prices have fallen the most,” Mr Lawless said.

Regional housing markets have mostly shown firmer housing conditions as well, with the combined regionals index rising 0.2% over the month.  Housing values across Regional WA and Regional SA remain at cyclical highs despite 10 rate hikes.  SA’s Fleurieu-Kangaroo Island SA3 sub-region led capital gains over the month with a 2.6% rise in dwelling values followed by Dubbo, NSW (2.5%), Wellington, Victoria (2.4%) and Mid West, WA (2.1%).

“The best performing regional markets are quite different to what we were seeing through the recent growth cycle,” Mr Lawless said.

“In today’s market it is mainly rural areas that are seeing the strongest increases, rather than the commutable coastal and lifestyle markets that were booming through the upswing.  However, we are seeing some subtle growth return to regions within commuting distance of the major capitals, after many recorded a sharp drop in values.”

But housing values aren’t rising everywhere. Hobart recorded the largest drop in home values among the capital cities, down -0.9% over the month.  Housing values across the southern most capital have fallen -12.9% since peaking in May last year; overtaking Sydney as the largest cumulative fall from peak across the capital cities.  However, the pace of decline has been easing across Hobart over the past three months.

Canberra (-0.5%), Darwin (-0.4%) and Adelaide (-0.1%) also recorded a decline in values over the month, as did Regional Victoria (-0.1%) and Regional Tasmania (-0.7%).

Capitals

Regionals

National

Send us an email if you would like to receive the complete April Home Value Index for graphs, charts and in-depth commentary and analysis on:

• Listings
• Sales volumes
• Rents
• Rental yields
• Market outlook
• Top 10 Capital city SA3s with highest 12 month value growth – Dwellings, and
• Top 10 regional SA3s with highest 12 month value growth – Dwellings.

** Article written by Tim Lawless, Executive Research Director of Corelogic's Asia-Pacific research division

The draconian methodologies of Real Estate, especially in Queensland, have proven to be quite prohibitive and restrictive at times for either side (and often both), of the real estate transaction. Let's look at our two most common methods, being, Private Treaty and the 'Dreaded Auction' and then let's discuss how we are reinventing them.

Both have been designed to apply as much pressure as possible on both buyers and sellers to rush through a decision that can and, in many cases, will shape the rest of their lives. This is nonsense, and I am 100% an advocate of people making better decisions when they are well informed. To have time to consider their position, and then the process to make the offer, is both quick and professional.

Let's talk Auction first...

For buyers to be expected to be at a particular place at a specific time with a briefcase of cash and no Building & Pest reports as a safety net can, in many cases, be deemed inappropriate and too pressurised. I have two businesses, two kids and two dogs, timing can at times be challenging due to many unforeseen circumstances, it is just life.

What we have created with our Hybrid Auction functionality: a date for the property to be sold, buyers can go into the online portal and make as many offers with or without conditions as they’d like, up until the end of the set date. The property is open for viewing via private inspections and open home inspections to work around the buyer's schedule. (example of the sale of 79 Bollard Circuit).

Suppose a buyer is interested and wants to make an offer. In that case, they can do so immediately and from anywhere using a smartphone, tablet, PC, anything with internet basically, even your smartwatch. 

The buyer can make an offer based on their terms and conditions, typically finance and/or building & Pest, maybe even subject to sale (which can potentially weaken an offer); this offer, when made, goes straight to the owner in real-time, no more agent games. The owner can decide on the spot as to whether they take the offer; it does not need to run through to the auction deadline; sounds better for both sides, right?

And Private Treaty...

OK, so in this case, a buyer has seen a property, likes it, and wants to make an offer (I have done this in the last two weeks, and the agents still haven't responded to my offers). 

The property has a price or an interest offer indication or similar, so there is a guide around the price expectations of the seller; now let's be mindful that a seller never really knows the true market price of a property until the market comes to them by way of an offer or multiple offers. 

So two different buyers make an offer and both sit anxiously waiting to see if their offer has been accepted, declined or countered. And they wait. And wait....nothing. 

Of course, the sales agents call the winning bidder and congratulate the buyer and whizzes round to their house in their rented European sports car and suit to fill in the paperwork. The other buyer sees the sale price published in a few weeks and says, I would have paid more. D'Oh! 

Using our real-time offer functionality backed with our easy-to-use support systems to execute contracts, collect deposits etc, we deliver transparency on submitting offers on Private Treaty campaigns so the buyers can see where the bid is at and make informed decisions as to whether or not they want to participate. 

The owner has real-time information on the offer status and chooses the offer that is most suitable for them; for example, an offer may be slightly lower in price but is unconditional, so the seller decides that the lower risk is worth something to them in $ terms. So a win can be had for buyers and sellers, and transparency is achieved in real-time. Great, right?

Who the hell are we?

Our Vision: Why we get out of bed each day

• To be unlike any real estate agency in the country
• To use technology to completely change the way people buy and sell homes
• To champion change throughout the industry
• To put customer satisfaction at the centre of our business
• To become the benchmark for professionalism and standards
• To establish ourselves as an authority on real estate
• To become a trusted presence across the Australian real estate landscape

How we plan to achieve our vision

• To build a team of highly experienced and respected people who cut through all the usual estate agency bullshit.
• Utilise and develop intelligent technologies to provide support
• Systemise and automate as much as possible
• Lower the cost of marketing for all home buyers/sellers
• Develop stronger relationships with the best builders and developers in the land
• Scale nationally using the best technology, systems and people
• Establish our brand as the future of the real estate

Our Mission: 

Our mission is to provide an innovative, personable, and efficient property service on the Gold Coast. 

We are Smyth Real Estate.

We look forward to helping you achieve your property market objectives.

CLICK HERE - WHAT'S YOUR HOME WORTH?

1. Interconnected photoelectric smoke alarms (not also containing an ionisation sensor) have been installed on every level and in every bedroom and interconnecting hallways outside the bedrooms
2. Be hardwired to the mains power supply, if currently hardwired, or powered by a non-removeable 10-year lithium battery
3. Comply with Australian Standard 3786:2014, be less than 10 years old, and function when tested

Disclosure obligations and smoke alarm compliance

If you are selling a residential property in QLD you are required by law to disclose certain information to the buyer before they enter into a contract.

The two main documents where this information is captured are;

• the contract of sale
• the ‘Form 24’ (Transfer of Title)

Contract of Sale

The standard REIQ contract of sale in Queensland contains a section that the seller is required to complete prior to the buyer signing the contract, stating whether the property is fitted with compliant smoke alarms.

When preparing a property for sale, these smoke alarm requirements must be met before a property can settle.

An example of the smoke alarm section for a contract of sale:

As a seller you cannot contract out of this obligation and must comply with the minimum smoke alarm requirements. Failure to install compliant smoke alarms is an offence (even if it has been disclosed) and the seller may be subject to a fine (a seller can still be fined for committing an offence after the property has been sold). Additionally, the buyer may be entitled to an adjustment of 0.15% of the contract purchase price in their favour. As such, it is recommended that QLD sellers ensure compliant interconnected photoelectric smoke alarms are installed at their cost prior to settlement.

Form 24

When a property is sold, the vendor must also lodge a Form 24 (transfer of title form) with Titles Queensland (formerly named the Queensland Land Registry Office), stating that the above requirements of the smoke alarm legislation have been met, and that the purchaser is aware of the fact.

Smoke alarm compliance certificate when selling in QLD?

The Real Estate Institute of Queensland (REIQ) is Queensland’s peak professional body for the real estate industry.

On their website they clarify a few points in relation to smoke alarm compliance certificates for selling in QLD. See below information directly from the REIQ website:

These are a few illustrations of the possible amounts you might have to pay the Buyer if your smoke alarms do not meet the required standards:

For a selling price of $1,500,000, the cost could be $2,250.
For a selling price of $2,500,000, the cost could be $3,750.
For a selling price of $5,000,000, the cost could be $7,500.

*** Credit to Photoelectric Smoke Alarms Australia

*** Disclaimer: Information provided is general in nature and should not be construed as expert legal advice. You should always seek the assistance of a legal professional when selling or purchasing a property.

Whilst history is no predictor of the future, examining previous downturns may provide insights into what to expect.

Since 1990, there have been only five periods when year-ended nominal home price growth has been negative. Those downturns have never been greater than 10% in year-ended terms. And in every instance, the preceding upswing has been larger than the downturn that has followed.

Looking even further back to 1880, adjusted for inflation, price declines of 30% have never occurred.

That’s not to say that what we’re seeing now, which is the most aggressive tightening cycle in more than 40 years in terms of the ratio of debt-servicing costs relative to disposable incomes, won’t warrant a correction in house prices.

But whether those declines will be close to 30%, as some predict, is another question entirely.

We currently expect national price declines in the order of 7% to 15% by the end of 2023, with Sydney and Melbourne perhaps seeing larger declines, and Brisbane and Adelaide less so.

How long and steep have recent downturns been?

According to PropTrack’s Home Price Index, in recent history, Australia-wide downturns have lasted an average of between nine months and ten months, with prices falling on average 2.8% from peak to trough.

In Sydney, the picture is a little different, with recent downturns lasting an average of nine months and prices falling 3.4%

The largest peak to trough downturn in recent years was in 2018/19 when national home prices fell 5.5% over a 13-month period. Again, in Sydney that decline was larger, with home prices falling 11.4% over 22 months.

In 2018/19, interest rates weren’t rising, but falls were driven by a credit squeeze, as the effect of various prudential measures reduced borrowing amounts, in a period of weak wages growth and a soft labour market



Now interest rates are moving higher quite quickly, mortgage rates have followed suit and as interest rates continue to climb, borrowing capacities will be further constrained.



If interest rates end the year above 2%, and that is passed through to mortgage rates, maximum borrowing capacities will be constrained by close to 20%. The cost of servicing a mortgage will also increase significantly. This will impact would-be borrowers and weigh on home prices.

A silver lining that could offset this to some degree is the tight labour market. Unemployment is the lowest it’s been since August 1974 and hopefully stronger wages growth will materialise as a result.

Currently, household budgets are under pressure as the cost of living has risen, along with interest rates, and put real wages growth in deeply negative territory.

How household spending holds up against a backdrop of higher inflation and falling house prices (the negative wealth effect), versus savings and wealth buffers, and hopefully stronger wages growth, will be crucial in determining the loss of conditions in the economy and how high and fast the cash rate rises.

This dynamic will also be a key source of uncertainty for the housing market and the pace and depth of price falls.

CLICK HERE - WHAT'S YOUR HOME WORTH?

* This article was written by Eleanor Creagh, Senior Economist, REA Group

Across the capital cities it has been the busiest first half on PropTrack record for interest from potential buyers in Canberra and Perth.

Although the level of interest has moderated in recent months, total demand from potential buyers in the first half of 2022 has been stronger than the first half of 2021 in every capital city except Hobart and Sydney.

Demand per listing

Although, even with a lot of potential buyers, there are also a lot more listings in most parts of Australia.

This dynamic is rapidly shifting the balance back in favour of buyers, particularly in Canberra, Hobart, Sydney, and Melbourne where buyers have regained the upper hand from sellers, who had a firm grip throughout 2021.



On a per listing basis for houses, demand from potential buyers has dropped 19% in Canberra when comparing the first half of this year to the first half of last year. In Hobart and Sydney, the number of potential buyers per house listing has fallen 15% and 13% respectively when comparing that same period.

It is a little different for units, with demand from potential buyers slowing less quickly in the apartment market. That could be because the premium of house prices over unit prices reached record highs, with tough restrictions weighing on the appeal of apartment living and the pandemic driving one of the biggest shifts ever seen when it comes to housing preferences. But now financial conditions are tightening, and a normalisation of migration is placing renewed pressure on inner-city rental markets as the pandemic fades.

It is also a different story entirely in Brisbane and Adelaide. In Adelaide, on a per listing basis for houses, demand from potential buyers is up 22% when comparing the first half of this year to the first half of last year. On aer unit listing basis, demand is up 50% comparing the same periods. Benefitting from preference shifts toward larger homes, as well as affordability advantages, population growth, and workplace flexibility trends, both Adelaide and Brisbane have seen strength in market conditions so far this year.

Days on Site

As the housing market slows, properties are no longer selling as quickly. With more supply and fewer competing bidders, ‘fear of missing out’ has subsided. As a result. days on site have climbed and will likely continue to do so as the year progresses. 



Sales

Comparing the period to date with the same in 2021, sales volumes have slowed the most in the regions. In the capital cities, Hobart, Sydney, and Melbourne are seeing transaction volumes slow the quickest compared to last year’s record levels. Sales volumes have also slowed in both Brisbane and Adelaide, but to a lesser extent.

The combination of rising mortgage rates and already high home prices is seeing fewer buyers and transaction volumes are slowing relative to the record high volumes seen through much of last year.



It is clear that last year’s boom has passed and the housing market so far this year is rebalancing off those extremes.

Mortgage rates have moved higher, and many buyers can no longer borrow the same amount as this time last year. That combined with expectations of price falls and weaker sentiment, is seeing heat coming out of the market Australia-wide.

Housing prices are already high and the increase in listings has provided a lot more choice for buyers, easing competition and further adding to the loss of momentum in housing market conditions.

From here, interest rates are expected to continue to climb, which is likely to further weigh on demand and cause an acceleration in the decline in prices.

CLICK HERE - WHAT'S YOUR HOME WORTH?

*Written by Eleanor Creagh, Senior Economist, REA Group

1. Determine your budget: Before you start looking for a home, it's important to determine how much you can afford to spend. Consider your income, expenses, and savings to come up with a realistic budget.
2. Get pre-approved for a mortgage: Once you have a budget in mind, it's a good idea to get pre-approved for a mortgage. This will give you a better idea of what you can afford and can help you move quickly if you find a home you love.
3. Research neighborhoods: Take the time to research neighborhoods that interest you. Look at factors like school districts, crime rates, and property values to find a location that fits your lifestyle and budget.
4. Work with a reputable real estate agent: A good real estate agent can help you find homes that meet your criteria, negotiate with sellers, and guide you through the home buying process. Look for an agent with local expertise and a track record of success.
5. Attend open houses and inspections: Once you've identified some homes you're interested in, attend open houses and inspections to get a closer look. Take note of any issues or repairs that may need to be addressed.
6. Conduct due diligence: Before making an offer, it's important to conduct due diligence on the property. This may include a home inspection, a title search, and a review of strata or homeowners association documents.
7. Make an offer: Once you've found a home you love and have completed your due diligence, it's time to make an offer. Your real estate agent can help you prepare a competitive offer and negotiate with the seller if necessary.
8. Close the deal: Once your offer has been accepted, there are several steps involved in finalizing the sale, including arranging financing, signing contracts, and transferring ownership. Your real estate agent and solicitor can guide you through this process.

Remember that buying a home is a significant financial and emotional investment, so it's important to take your time, do your research, and work with professionals who can help you make informed decisions.

Get Advance Access To The Hottest Properties: Priority Buyer Alerts | Smyth RE

1. Hire a reputable real estate agent: A good real estate agent can help you price your home correctly, market it effectively, and negotiate with potential buyers on your behalf. Make sure to research and interview multiple agents before making a decision.
2. Price your home realistically: Setting the right price for your home is critical to attracting potential buyers. Your real estate agent can help you determine a fair and competitive price based on market conditions and recent sales in your area.
3. Stage your home: Staging your home can help potential buyers envision themselves living in the space. Consider decluttering, depersonalizing, and adding some decorative touches to make your home feel welcoming.
4. Take high-quality photos and create a compelling listing: Your real estate agent should be able to take professional photos and create a detailed listing that highlights your home's best features. Make sure the listing is clear, concise, and easy to read.
5. Be flexible with showings: Making your home available for showings at different times of the day and on weekends can help potential buyers who have busy schedules. Try to be accommodating as much as possible.
6. Respond to offers promptly: When you receive an offer, respond as quickly as possible to keep the momentum going. Your real estate agent can help you evaluate the offer and negotiate with the buyer if necessary.
7. Be prepared for the sale process: Once you have accepted an offer, there are several steps involved in finalizing the sale, including inspections, appraisals, and closing paperwork. Your real estate agent can guide you through the process and answer any questions you may have.

Remember that selling a home can be a complex and emotional process, so it's important to work with a real estate professional who can provide expert guidance and support throughout the journey.

How much is your property worth? Property Appraisal | Smyth RE

Searches from overseas for properties to buy and rent on realestate.com.au last quarter reached their highest level since PropTrack records began in 2019.

Rental property searches in the past three months are up 34% on the same period in 2019, and searches to buy properties are up 29%.

Where the demand is coming from

The countries with the highest searches for Aussie properties are New Zealand, The United States, The United Kingdom, China, Singapore, Hong Kong, and India.

New Zealand has held the top spot for the past two years in terms of searches for Australian real estate, with rent searches up 37.5% on this time last year and searches to buy up 8.8%.

Demand from India has increased substantially in the past 12 months, with faster growth in both searches to buy and rent than other countries.

The Chinese government's call for all international students to return to their campuses at the end of January drove a surge in rental searches from China, reaching their highest point in over three years in February.

Arrivals from overseas in line with search activity

The increase in offshore searches for Australian rental properties has coincided with a sharp increase in student arrivals. In February, student arrivals hit 142,000, a 190% increase on February 2022, according to data from the Australian Bureau of Statistics. Although March's preliminary figure was a third of February's number, it was still over 90% higher than March 2020.

However, Hong Kong appears to be bucking the trend, with searches to rent Australian properties down 27.8% on last year and searches to buy down 15.4%.

Most-searched suburbs

As a whole, overseas searchers, whether looking for properties to rent or buy, favour the major capital cities, with Melbourne and Sydney topping the list.

However, the Gold Coast is also proving popular with overseas buyers and renters.

Breaking down the search data by country, the Gold Coast is favoured most by searchers from New Zealand, the United States and the United Kingdom. However, searchers from China, Hong Kong and India have been most interested in Box Hill and Chatswood.

Most-viewed new developments

Overseas properties seekers have historically favoured new apartment developments in Melbourne and Sydney, followed by the Gold Coast.

However, a new development in Perth, Dianella Apartments has piqued the interest of searchers from New Zealand, the UK, and India. In the past three months, overseas views of this property were seven times higher than the next most-viewed listing, which was 111 Castlereagh in Sydney.

Looking ahead

Searches from overseas property seekers are at an all-time high since PropTrack records began, and this is a positive sign for future migration.

The number of arrivals with student or work visas has not yet reached pre-pandemic heights, but they are likely to return to normal levels in time.

** Article written by Karen Dellow, Senior Data Analyst for PropTrack

How much is your property worth? Property Appraisal | Smyth RE

Want an exclusive quarterly expert analysis and insights on your properties, stay informed about the latest trends and developments in the Gold Coast property market? Then click here 

The first was the appointment of a new RBA governor. Michele Bullock, who has been the RBA deputy governor since April 2022, will take up the top job on 18 September, replacing Phillip Lowe who held the post for seven years.

The other important revelation was a cash rate pause at 4.1 per cent. While it’s likely rates could rise again in the near-term, the decision to hold for now demonstrates the RBA is taking a steadier approach to cooling inflation. The unchanged cash rate will deliver some relief however it will take several months for any previous rate increases to be felt fully by households.

There is also an undercurrent of uncertainty among property owners at present. That’s part of the reason behind an unseasonable jump in residential listing numbers throughout June and July. It appears some owners who’d held off selling over the past year or so are now looking to capitalise on a more balanced market. My suspicion is we’ll continue to see additional properties hit the portals in coming months. Listing numbers may well amplify post-Christmas too. Consumer spending during the festive season combined with the full impact of rate rises to date will prompt many to rationalise their household finances in early 2024 and some will choose to sell down assets to help balance the books.

Which leads me to the other big challenge in population centres across the country. There are simply too few rental properties to meet the growing demand for shelter and the situation will become more imbalanced as immigration ramps up.

Attempts to relieve the burden on tenants have seen some sectors of government implement legislative changes. This has included discussions around limiting rent increases (or even freezing rents) and altering legislation to provide tenants with more certainty… but these moves are often to the landlord’s detriment.

It’s important to take a step back and consider what’s happening in the rental space. The case is fundamentally one where low supply and high demand have resulted in tighter vacancies and higher rents. Any moves designed to ease rental pressures should probably focus on increasing supply. As such, a measured approach that doesn’t overly interfere in an already fragile market where investors play an important role in the supply of housing would seem like the most effective strategy for our leaders.

Looking to the rural sector and our experts have noted that rising interest rates and softening commodity prices have tempered property buyer enthusiasm across many industries. After several years of impressive and seemingly relentless price growth, our teams are reporting that we’re back to 2022 price levels in several locations and sectors. There’s also been an uptick in large operations and aggregated holdings being purchased by institutional investors.

A week may be a long time in politics, but a month is an eternity in property. With things moving so quickly and so dramatically, it’s crucial to rely on advice from independent professionals working daily in their speciality markets.

*** Article written by Drew Hendrey at Herron Todd White

When prices drop consistently, consumers and businesses might delay purchases and investments, anticipating that prices will fall even further in the future. This can lead to reduced economic activity and slow down the growth of the economy.

In terms of the property market, deflation has historically had mixed effects. A deflationary environment might make prospective home buyers hold off on purchasing, expecting property prices to fall further. This can result in reduced demand, leading to a drop in property prices.

In the history of the Australian property market, periods of deflation have generally coincided with times of broader economic difficulty. For example, during the Great Depression in the early 1930s, deflation was widespread, and property prices fell significantly. More recently, however, the robust nature of Australia's property market has shown resilience, often maintaining growth even during periods of mild deflation.

It's important to remember that property market outcomes depend on a multitude of factors, including interest rates, employment rates, population growth, and government policy, not just inflation or deflation.

We recommend staying informed about economic conditions and seeking professional advice to understand how these factors could affect your property investment.

Thank you for taking the time to read this article. If you have any further questions, please feel free to get in touch.

How much is your property worth? Property Appraisal | Smyth RE

Brisbane homes have seen extraordinary capital growth in the past few years, rising 50.2% since the onset of the pandemic in March 2020. The city’s appeal amid an increase in remote work helped fuel strong population growth, increasing housing demand, driving down supply and making it a seller’s market.

At the end of last year, Brisbane reached a new milestone. The city now has the third-highest median dwelling value among the capitals, behind Sydney and Canberra. In December, the Greater Brisbane median dwelling value was $787,000, surpassing Melbourne’s median value for the first time since July 2009 by around $7,000 (Figure 1).

So why has Brisbane surpassed Melbourne in the median dwelling value ranks? 

Composition of housing stock

Despite recording a higher median dwelling value, Brisbane’s median house and unit values are still -$72,000 and -$49,000 below Melbourne’s medians respectively (Figure 2a). The reason for this is that Melbourne has a higher share of units as a portion of the dwelling market. CoreLogic estimates that units comprise 33.8% of Melbourne dwellings, compared to 25.6% of homes across Brisbane (Figure 2b). Because units are generally lower value than detached houses, a higher portion of units brings down the median dwelling across all houses and units.

In the near term, this compositional difference might rebalance a little. The latest building activity data from the ABS showed that as of June last year, there were 1.4 units under construction for every house in Victoria, compared to 1.6 units for every house across Queensland. This implies there could be a slightly higher concentration of unit stock to come across Brisbane.

Brisbane booms against mild Melbourne upswing

Since the onset of the pandemic in March 2020, Brisbane dwelling values rose 50.2% through to the end of last year. Over the same period Melbourne values rose just 11.0% (Figure 3), which was the weakest increase of any capital city market.

This disparity in growth has seen Brisbane’s median dwelling value rise from -$187,000 below Melbourne’s median in March 2020, to $7,000 higher in December last year.

The reason for such varied capital growth outcomes may be partly due to lifestyle factors, where the appeal of South East Queensland rose through the pandemic. The normalisation of remote work for many professionals made interstate migration to Queensland more feasible, while Melbourne’s extended lockdowns from March 2020 through to October 2021 may have prompted people to leave the city.

This is reflected in ABS migration data, which shows net interstate migration to Queensland hit a record high of 51,500 in the year to March 2022. In the same period, net interstate migration to Victoria was -20,000. Net internal migration to Victoria bottomed out at a loss of -35,600 people in the year to June 2021, and was still negative as of June last year. Value falls across Melbourne were also exacerbated by the loss of overseas migration through COVID, but net overseas migration turned positive in 2022. These trends can be seen in Figure 4, which shows rolling annual interstate and overseas migration by state.

While the most recent migration data is only available at a state-wide level, regional population data from the ABS showed that over the year to June 2022, Brisbane’s population grew by 2.3%, more than double the rate across Melbourne (1.1%). Overall, Melbourne still had a higher estimated resident population at 5,031,000, compared to 2,628,000 across Brisbane.

Outlook for market rankings

Brisbane was not the only city to ‘shift ranks’ in December, with the median dwelling value in Perth inching above the median Hobart dwelling value in the month. Adelaide also surpassed the Hobart median earlier in 2023, making Hobart the second-lowest median across the capitals.

However, these new rankings may be tested in the months ahead. Brisbane remains a seller’s market, but the pace of monthly growth in values has eased slightly, from 1.5% in October 2023 to 1.0% in December. As home values in the city continue to rise, there is less claim to Brisbane being relatively affordable, and some prospective interstate movers may decide to remain in their city. Recent weeks have also demonstrated there is some added risk to pockets of the Brisbane property market from extreme weather and flooding, which could impact demand in the near term.

Overall, the data reinforces the substantial impact that the pandemic has had on housing preferences, and shifting market dynamics.

** Article written by Eliza Owen, Head of Residential Research Australia, Corelogic

1. When’s the best time to put my house on the market?

We can find buyers for a good property at any time of the year. However, if your home has seasonal appeal, such as beach access in summer or a beautiful garden in spring, it’s worth waiting for those months.

2. How long will it take to sell my home?

On average, we find our properties take between two and six weeks to sell. This does depend on the area you live in, and you should add another two weeks to this for us to prepare your house and for your marketing campaign.

3. How can I make sure my house appeals to buyers?

A well-presented home usually sells faster, and at a higher price. Start by de-cluttering - put excess belongings and furniture into storage and you’ll make your home look bigger. Tidy up the garden and make sure the front of your home makes the right first impression.

4. What pre-sale repairs or renovations really pay off?

If a room is dark, look for ways to create more light. Quality taps and door handles can make an immediate impact for little investment, and a fresh coat of paint in a neutral colour gives the impression your home has been well maintained.

5. Is it really worth paying for a home stylist?

You only get one chance to make a great first impression. Investing a little in making your property look its best usually pays off with a higher sale price, however this is your decision. If your house is empty, it’s a good idea to hire some quality furniture. You’re selling a lifestyle, not just a home.

6. How does Smyth RE achieve a premium price?

We've developed a proven sales system to maximise the return on your home. It starts with understanding your goals in our first meeting, and discussing ways to increase your home’s value and present it in the best possible way. Every detail can make a difference.

7. What’s your secret to a successful property marketing strategy?

We know we can achieve the best price within the first 30 days of a home being on the market so we focus our energies on achieving that. We also know more than 60% of record prices come from out-of-area buyers. So it’s not enough to put up a sign, we’ll identify the ideal buyer for your home and design the optimum online and physical marketing mix.

8. What is a property appraisal? 

A property appraisal is an informal process that will provide you with an estimated market value of your property.  A Sales Agent will do a comparative market analysis and look at similar properties that have sold in the last 90 days, along with current competition, wider market trends and the key features of your property.

9. What do I receive in a property appraisal?

We will provide you with a report including a comprehensive assessment of your property, its location, an overview of recent sales in the area and a suggested price guide for your property.  

10. Why should I get a property appraisal if I am not selling? 

Even if you are not looking at selling, understanding the value of one, if not your more valuable asset can help ensure you better understand your net worth.  This knowledge can help you make smarter financial decisions. Get a property appraisal. 

12. What are the different ways to sell a property?

There are 4 main ways to sell a property in Australia, Auction, Private Treaty, Tender / expression of interest and MarketBuy.  Click here to see the benefits of using MarketBuy as your preferred method of sale.

13. What is the best method of sale for my property?

We can help guide you here.  We will assess the kind of property you are selling, its location, the condition of the local real estate market, how quickly you want to sell and your personal preferences. 

14. How do I prepare my property for sale?

Spending time preparing each room and space of your property for sale can make a big difference to how much you sell your property for.  Click here for more info.

15. What are agent’s fees / agent commission?  

Commission is the agent’s payments for successfully selling a property. All good agents will ensure they work extremely hard to sell a property and secure their income.  

There are 10 stages you’re likely to experience: 

Step 1: Understand the Market 

You’re looking to find out more about what’s happening in the property market.

• Read up on how home prices in Australia are trending and the market outlook for the months ahead
• Understand the estimated value of your current property and what you could realistically sell or lease it for
• Get a sense of how much similar properties are selling for in your area. 

Step 2: Investigate Your Options and Approach

You’re looking to make a move and trying to work out what the next step looks like.

• Consider what locations you would like to live in next
• Consider the ‘must haves’ for your property, including size, bedrooms and property types
• Get visibility of what’s involved in selling your home and understand the financial implications/costs (including agent commissions, marketing costs, etc.)
• Understand your financial position: What is your borrowing power and how does this affect what options are available?
• Take an initial look at what’s on the market in your price bracket and see if you need to make any adjustments
• Understand your options for financing the transition between one property and the next (e.g., bridging finance)
• Investigate options and costs for moving house (including interim rental costs)
• Choose your approach: Selling your current home before buying the next place, or buying before your current home sells

Step 3: [Buying] Explore and Prioritise 

You’re exploring your next purchase, learning more about your options and starting to refine your priorities

• Start to research properties that match your criteria
• Learn more about different ways to buy, including auction and private treaty sales
• Firm up your understanding of your borrowing capacity – consider speaking with a mortgage broker
• Keep track of properties that you like so you can stay updated on inspection times and sale information

Step 4: [Buying] Conduct a Detailed Search 

You’re researching suburbs and properties in even more detail and assessing against highly refined criteria

• Attend inspections for properties on your shortlist, and see how they match up against your expectations
• Look for more detailed property information, beyond what’s available on the listing (e.g., Property.com.au shows local amenities, schools, property boundaries, local planning permits and government overlays and more)
• Connect with real estate agents in your local area at open for inspections and ask them to let you know about other properties that fit your criteria
• Consider applying for pre-approval to build confidence in your borrowing power ahead of making an offer or bidding at auction
• Re-engage your conveyancer/solicitor to help you navigate legal paperwork

Step 5: [Selling]: Explore and Evaluate Agents 

You’re exploring agents to represent you and evaluating them against your criteria

• Research which agencies operate in your local area
• Understand what you could or should do to prepare your property for listing and budget for these
• Decide whether to live in your home while selling
• Explore conveyancers/solicitors to help you navigate legal paperwork and the settlement process
• Define how you’ll assess which agent is right for you, then book agent appraisals
• Receive proposals back from agents and compare against your criteria
• Research tradespeople to help fix up or renovate your property for open for inspections
• Understand campaign types and typical duration – E.g., Private Treaty (also known as Private Sale) vs Auction

Step 6: [Selling] Negotiate Selling Terms

You’re working with your preferred agent to get ready for your selling campaign

• Select your preferred agents and negotiate any costs and listing agreement details including commission, exclusivity and sale types
• Define the marketing schedule for your property, including advertising, photography and signage
• Discuss and agree realistic price and timeframe expectations with your agent
• Sign a sales authority with your selected agent
• Appoint a conveyancer to prepare the contract of sale and paperwork required for the sale of your property

Step 7: [Buying] Evaluate and Choose

You’re getting the last bits of important information to narrow down even further

• Reach out to the real estate agent for a contract of sale for properties you have a serious interest in
• Consider whether you need a building and/or pest inspection on any properties you’re seriously considering
• Ask your conveyancer/solicitor to review the contract of sale before making an offer
• Check with your lender or mortgage broker whether you need to complete any financial applications before making an offer
• Consider a realistic sale price by reviewing comparable property sales (you can find these on Property.com.au) and determine what you’re willing to pay

Step 8: [Selling] Market and Display 

Your property is on the market and you’re fine-tuning your approach for the best result

• Prepare your property ahead of your first open for inspection, including staging (if you choose to do this), decluttering and cleaning
• Finalise your marketing materials in conjunction with your agent, including listing descriptions and photos
• Work with your agent to schedule open for inspections
• Check in with your agent to understand buyer interest after each inspection and recommended next steps
• Assess buyer interest levels and whether to consider any change to pricing and/or marketing

Step 9: Buy and Sell 

You’re almost there – it’s crunch time as you receive and make offers

• Understand the sales process for the property you’re buying - it will be different depending on whether it’s a private treaty sale, auction or other sale process and can also vary state by state
• Ask your conveyancer/solicitor to help you review contracts, navigate making offers and understand any cooling off periods (if applicable)
• Receive and assess offers for your property, considering your reserve and price expectations
• Make an offer or bid at auction
• Negotiate final contract terms and sign the contract of sale
• Choose to accept an offer through private sale or auction, and finalise the paperwork
• Where possible, see if you can align the settlement times of your new home and current home to avoid moving twice

Step 10: Settle and Move 

Congratulations, you have a new home & a buyer for your current property!

• Finalise any loan applications through your mortgage broker or bank
• Finalise finance paperwork, complete any final property inspections and wait for settlement – of both properties
• Get ready to move: make any final plans for your move and organise removalists, utility connections, etc
• Wait for settlement
• Settlement is here! Your conveyancer will guide you through the process
• Say goodbye to your home – it’s time to hand over house keys to your agent for the new owner and pick up the keys to your new home!

*** Article written by the team at Property.com.au

STEP 1  |  Curb Side Appeal

Even if you are not planning to sell immediately, a welcoming exterior is a wonderful thing to come home to each day.  Spending a few hours ensuring your property looks good from the street can pay dividends down the track. It helps create a great first impression and sets the right tone. It is important this looks great throughout the duration of the campaign, as people drive by at all hours of the day and night.

STEP 2  |  Make Necessary Repairs to Your Home

Sometimes cosmetic repairs take a while to complete, so it is worth getting onto these early. For instance, if your kitchen or bathroom need a refresh, perhaps the walls need to be painted, you need new tiles or the floorboards need to be sanded, getting onto these jobs well in advance of your property going on the market is a smart idea.

STEP 3  |  Declutter and Remove Personal Items

You want buyers to be able to visualise themselves in your property; to feel an emotional connection. It is hard to do this if all your knick-knacks and family photos are scattered throughout the property. This is not to say everything has to go, it just needs to be refined.

STEP 4  |  Spring Clean the Entire Property

A sparkling property is a must have when selling your home. Spending time cleaning every corner of your property is time well spent - and yes, that does mean inside all your drawers and cupboards as buyers open these up for a peak inside. 

STEP 5  |  Professional Styling

Professional styling can add 5%-10% to the final sale price of a property. Talk to our team about who we would recommend to help you.

Here’s what you can expect when you list your home for sale, and how we can help make the process as stress-free as possible:

1. Initial Consultation and Property Appraisal

The first step in selling your home is meeting with us to discuss your goals and understand your property's value. At this stage, we’ll walk through your home, evaluate the current market conditions, and provide you with a detailed property appraisal.

This is where we establish a clear sales strategy tailored to your needs. We’ll explain the different methods of sale, from auction to private treaty, and recommend the most suitable option based on your property and market trends.

2. Preparing Your Property for Sale

You only get one chance to make a first impression, so it’s important that your home is in its best possible condition before it hits the market. From decluttering and deep cleaning to freshening up the garden and minor repairs, preparation is key.

At Smyth RE, we don’t just give advice—we help you implement it. We offer a comprehensive project management service to help get your property market-ready. This can include:

• Organising trades for repairs, maintenance, or painting
• Coordinating professional cleaners, gardeners, and stylists
• Arranging furniture hire or staging to enhance your home’s appeal

We understand that sellers are busy, so we’ll take care of everything from start to finish, working with trusted local trades and suppliers to ensure your home is presented at its absolute best.

3. Photography and Marketing Campaign

In today’s market, the listing process goes far beyond a simple “For Sale” sign. It’s all about crafting a powerful marketing campaign that reaches buyers wherever they are.

Once your property is ready, we arrange professional photography and video production to capture your home in its best light. We’ll create a customised marketing plan that includes:

• Online listings on major property platforms
• Social media advertising
• Email campaigns to our buyer database
• Optional print advertising

We make sure your property gets the attention it deserves, from targeted online ads to neighbourhood letterbox drops. Our goal is to attract the right buyers to your door, and we closely monitor the response to the campaign, adjusting it as needed to maximise exposure.

4. Open Homes and Buyer Engagement

Once your home is listed and live on the market, we arrange open homes and private inspections. We’ll coordinate with you to schedule times that are convenient, ensuring your home is presented immaculately each time.

During this phase, communication is key. We’ll keep you informed with regular updates on how the campaign is tracking, the level of buyer interest, and feedback from each inspection. If adjustments are needed, such as changing the marketing strategy or tweaking the price guide, we’ll work with you to ensure your home remains competitive in the market.

5. Negotiations and Offers

One of the most critical steps in the selling process is negotiating offers. Whether you’re selling via auction or private treaty, we handle all negotiations with potential buyers to secure the best possible price for your home. We are skilled in managing buyer expectations and navigating the negotiation process.

If multiple offers come in, we’ll guide you through the options and help you choose the best path forward. We always act in your best interest, ensuring that each offer is carefully considered and communicated clearly.

6. The Settlement Process

Once the sale is agreed upon, the settlement process begins. There are legal and financial steps to complete, including contracts, inspections, and the final exchange of funds.

At Smyth RE, we work closely with your solicitor or conveyancer to ensure that the settlement process goes smoothly. We’ll be there to help you every step of the way, ensuring that all paperwork is handled efficiently, so you can focus on what’s next.

Why Work With Us?

Selling your home doesn’t have to be stressful. At Smyth RE, we take a hands-on approach to the entire process, from pre-sale preparation to project management, marketing, and final negotiations. We’ll work with you to develop a strategic sales plan tailored to your home, and we’re here to handle the details—whether it’s organising trades, arranging professional staging, or adjusting the marketing campaign as needed.

We understand that life doesn’t pause when you decide to sell, and that’s why we aim to take the weight off your shoulders. You can trust us to manage the entire process professionally, helping you achieve the best possible outcome with minimal hassle.

By listing with Smyth RE, you’re not just selling a property - you’re setting yourself up for a successful, well-managed, and stress-free sale. Let us guide you through every step of the way, so you can focus on your future with confidence.

Here is a simplified step-by-step guide to help you understand how the "subject to sale" contract works:

1. Offer and Acceptance: The buyer makes an offer to purchase the seller's property. In the contract, the buyer includes a clause stating that the contract is "subject to the sale" of the buyer's property by a specific date.
2. Agreement: The seller accepts the offer and agrees to the "subject to sale" condition. The contract is then signed by both parties.
3. Marketing and Selling the Buyer's Property: The buyer must market and sell their existing property within the agreed timeframe.
4. Notification of Sale: Once the buyer's property is sold, the buyer must notify the seller as per the requirements set out in the contract.
5. Completion of Sale: The contract of sale for the new property will be completed only after the buyer's existing property is sold.

However, there are some important considerations for both buyers and sellers:

For Buyers:

• Time Limit: There is typically a time limit within which the buyer's property must be sold. If the property isn't sold within this timeframe, the contract could be terminated unless both parties agree to extend the deadline.
• Risk of a Sunset Clause: In Queensland, sellers can still entertain other offers after accepting a "subject to sale" contract. This means a seller can potentially accept a more appealing unconditional offer, known as 'a sunset clause'.

For Sellers:

• Continued Marketing: In many cases, sellers can continue to market their property and accept backup offers while waiting for the buyer's property to sell.
• 72 Hour Clause (a "Sunset Clause"): If the seller receives another offer that they wish to accept, a 72-hour clause can be invoked. This clause gives the original buyer 72 hours to either waive their "subject to sale" condition and proceed with the sale, or withdraw, allowing the seller to accept the new offer.

Here is an example of a "subject to sale" clause in a contract of sale:

Subject to Sale and Unconditional

1.0 Buyer Entering Contract of Sale

1.1 This contract is subject to and conditional upon the Buyers entering into a contract, on terms satisfactory to the Buyers, for the sale the Buyer’s property at [property address] on or before 60 days from the date hereof(hereinafter referred to as “the prior contract”). In the event that the Buyers do not enter into a prior contract by this date, or relevant extensions agreed upon, the Buyers may terminate this Contract by notice to the Seller given in accordance with the Terms of Contract, and this Contract shall be at an end and the Deposit must be promptly refunded without deduction.

1.2 In the event that special condition 1.1 is satisfied, then this contract is also subject to and conditional upon the prior contract becoming unconditional within 30 days of the date of the prior contract. In the event that the prior contract does not become unconditional as required herein, the Buyers may terminate this Contract by notice to the Seller given in accordance with the Terms of Contract, and this contract shall be at an end and the Deposit must be promptly refunded without deduction.

1.3 In the event that special conditions 1.1 and 1.2 are satisfied, then this contract is also subject to and conditional upon the settlement of the prior contract on or before 30 days from the date of the prior contract. In the event that the prior sale does not settle for any reason, the Buyers may terminate by notice to the Seller given in accordance with the Terms of Contract, and this contract shall be at an end and the Deposit must be promptly refunded without deduction.

1.4 The Seller hereby acknowledges that this special condition is for the benefit of the Buyers only and can only be waived or exercised by the Buyers.

2.0 Contemporaneous Settlement

2.1 Settlement of this Contract shall be effected contemporaneously with the buyers prior sale contract.

Here is an example of a "sunset clause" in a contract of sale:

Sunset Clause

In the event that the Seller gives the Buyer written notice that the Seller has received another offer to purchase the subject property, which is in the opinion of the Seller a better offer, the Buyer shall within three (3) business days of receipt of such notice advise the Seller whether the Buyer agrees to the waiving of all conditions to the Contract of Sale. Should the Buyer not give the Seller the notice referred to above, this Contract shall be deemed to be at an end and all deposit monies refunded in full.

Remember, each "subject to sale" contract is unique, and legal and professional advice should be sought before entering such a contract. It's crucial to understand your rights, obligations, and potential risks involved in this kind of transaction.

We hope this provides a clearer understanding of the process of a "subject to sale" contract. Please do not hesitate to contact our office if you have further queries or need more information.

**Legal Disclaimer:**
The information in this article is for general informational purposes only and is not legal advice. We have made efforts to ensure its accuracy, but we make no warranties or representations. Consult a qualified legal professional for advice on your specific situation. We are not liable for any damages resulting from reliance on this article. External links are not endorsements, and laws may change. No solicitor-client or agency relationship is created.

Australia’s economy grew 0.4% in the June quarter, with annual growth slowing to 2.1% from 2.3% the previous quarter, according to the Australian Bureau of Statistics.

But the devil is in the detail, with the growth largely underpinned by business investment and the continued recovery in tourism and international student numbers following the Covid-19 pandemic.

Household consumption remained relatively flat during the quarter, with consumers pulling back on discretionary items to make room for essentials and soaring mortgage repayments.

People are also saving less of their incomes, with the household saving ratio falling to 3.2% in the June quarter from 3.6%, as consumers draw down on the buffers they built up during the pandemic.

PropTrack senior economist Eleanor Creagh says it’s the lowest rate of household savings since mid-2008.

“The Reserve Bank maintained the pause on their rate hiking cycle this month, but the substantial tightening already delivered since May 2022 is weighing on economic activity,” Ms Creagh said.

“Spending is slowing, and conditions are likely to continue to soften in the coming months as the full impact of previous tightening catches up.”

HSBC chief economist Paul Bloxham says Wednesday’s GDP figures are likely to have been welcomed by the RBA and outgoing governor Philip Lowe.

“The GDP figures provide a clear indication that the economy is, so far, tracking what he has described as the 'narrow pathway' to a 'soft landing',” Mr Bloxham said.

“Growth has slowed to a bit below trend, but is still positive, and, at the same time, the economy is gradually dis-inflating. Things are moving in the right direction for the RBA to achieve its mandate.”

Interest bill almost doubles

The RBA’s decision on Tuesday to hold interest rates steady at 4.1% for a third straight month came as welcome relief to households, firming expectations that the cash rate has now peaked.

But with cuts not anticipated until next year, AMP deputy chief economist Diana Mousina says households will continue to run down their savings.

“A further decline in the savings ratio is expected as households deplete their accumulated savings given the pressure on household budgets due to the lift in interest rates and elevated inflation,” Ms Mousina said.

“Overall, the GDP data is consistent with an economy that is slowing as expected given the increase to interest rates since May last year.”

Over the year, households shelled out $82.8 billion in mortgage interest payments, almost double last year’s interest bill.

AMP estimates a variable rate borrower with a $600,000 mortgage will have seen $1,300 a month added to their mortgage payments since April 2022 – an additional $15,600 a year.

Even if that borrower managed to secure a 0.5% discount with their lender, the annual burden would still be $13,000 more than before the first rate hike, a significant hit to their spending power.

Household consumer spending grew just 0.1% in the June quarter, to be up 1.5% over the past year.

Unsurprisingly, more spending was directed towards essential items amid increasing mortgage, rent, utility and insurance costs, while discretionary spending fell for a third straight quarter.

Housing market activity picks up – but for how long?

Despite sharply higher interest rates and inflation, the latest PropTrack Home Price Index shows national property prices rose for an eighth straight month in August, with prices in some cities hitting new record highs.

“This year’s recovery has brought national annual price growth back to positive, with prices up 2.64% on their year ago levels and just 0.75% below their March 2022 peak,” Ms Creagh said.

A shortage of property listings for most of the year offset the 400 basis points worth of interest rate rises, Ms Creagh says, which has driven up repayments and crushed borrowing capacities by around 30%.

“Stronger housing demand is being bolstered by the rebound in net overseas migration, tight rental markets amidst shortages in rental supply and ongoing labour market tightness with slowly increasing wages growth and the unemployment rate holding close to multi-decade lows,” she said.

But with more homes now hitting the market, Ms Creagh says a levelling of supply and demand could see price growth slow in the months ahead.

“If the flow of new listings continues to lift, which is likely with the spring selling season kicking off, the pace at which prices have grown this year may slow,” she said.

“Further out, as affordability continues to worsen and the economy slows, this begs the question of whether the strong price rises of this year can continue.

“But high levels of migration coupled with lower new supply and an emergent housing shortfall is likely to continue to cause prices to lift despite affordability remaining stretched.”

She says Wednesday’s data confirms the pick-up in population growth has continued, with the strongest quarterly increase since 1974.

*** Credit to Sarah Dowling, Property News Editor for relaestate.com.au

• National home prices lifted 0.30% to hit a new record in May, bringing prices up 2.73% year-to-date. Prices were 6.68% above May 2023 levels and up 9.58% from their December 2022 low.
• Prices in the combined capital cities rose 0.41% to a new peak in May. Capital city prices are now up 7.22% year on-year, though performance has diverged between capitals as well as regional areas.
• All capitals bar Hobart (-0.13%) and Canberra (-0.21%) saw prices rise in May, though the pace of home price growth has slowed since the end of the summer in every capital city.
• Perth (+0.73%), Brisbane (+0.67%) and Adelaide (+0.53%) recorded the strongest price growth in May. In keeping with the trend seen for much of the past two years, these markets remain the strongest for annual growth, with Perth prices up 20.58% over the past year, while Adelaide and Brisbane have grown 14.49% and 13.69% respectively.
• Prices in capital cities have outpaced regional areas over the past year. This trend continued in May, with prices in the combined regional areas remaining flat while regional NSW (+0.16%) and regional Tasmania (+0.12%) were the only regional markets to see price growth in May.

“With housing supply unable to meet demand, national home prices have cycled through 17 consecutive months of growth to hit a fresh peak in May.

“Despite a rise in the number of homes for sale this year, strong population growth, tight rental markets, and home equity gains continue to bolster strong demand. Meanwhile, building activity remains challenged by capacity constraints and higher costs, with consequent tight housing supply pushing prices and rents higher.

“This mismatch between supply and demand is continuing to offset the higher interest rate environment. Further, current interest rate stability has sustained buyer and seller confidence, while ongoing home price rises are likely incentivising many to overcome affordability challenges and transact with the expectation of further growth.

“Despite some easing in the rate of population growth and more stock on market, home prices are expected to lift further in the months ahead. Although, it is likely the pace of growth will continue slowing through the seasonally quieter winter period, particularly with interest rate cut expectations pushed out to late-2025.”

Sydney
Sydney home prices lifted 0.42% in May to a new peak, bringing prices up 3.09% year-to-date. Prices were 7.01% above May 2023 levels and 11.89% abover their November 2022 low. The uplift in properties hitting the market this year has been matched by robust demand fuelling further price increases. However, growth momentum has slowed consistently since February as buyers benefit from more choice.

Brisbane
Brisbane is now the second-most expensive capital following a period of consistently strong growth. Prices are now 18.15% above their December 2022 low, putting values ahead of Melbourne and on par with Canberra. Brisbane remains one of the strongest performing markets over the past year with home prices now 13.69% above May 2023 levels. Prices lifted a further 0.67% in May to a fresh peak, though the strength of monthly growth has eased from the fast pace seen throughout the first three months of 2024.

Perth
Perth has maintained its streak of relative outperformance and remains the strongest market in the country for monthly (+0.73%) and annual (+20.58%) home price growth. Tight supply amid strong buyer demand has seen competitive conditions fuelling strong price growth. The relative affordability of the city’s homes, population growth, and very tight rental markets are also supporting home values.

Darwin
Darwin home prices rose 0.25% in May, with prices now 1.38% higher than a year ago. However, prices remain 1.34% below their May 2022 peak.

Melbourne
Melbourne home prices lifted 0.23% in May, reversing the small falls (-0.05%) seen in April. Prices are up 0.87% year-on-year but remain 3.08% below their March 2022 peak. Melbourne’s recovery is lagging Sydney and Brisbane, where prices fully recovered from 2022’s falls last year. Prices in Melbourne have regained just under half of their decline, up 2.42% from their January 2023 low.

Adelaide
Adelaide home prices rose 0.53% in May to a new peak. Adelaide remains one of the country’s top performing markets, with home prices up 14.49% year-on-year. The comparative affordability of the city’s homes has seen prices defy the significant increase in interest rates since May 2022. Low stock levels are also intensifying competition, with home prices in Adelaide rising at a fast pace over the past year.

Hobart
Prices in Hobart fell in May, declining 0.13% to sit 1.93% below levels seen this time last year. Hobart remains the weakest capital city market when comparing annual price growth (-1.93%), as well as the change from peak (-8.97%). However, this comes following a period of outperformance during the pandemic as well as strong growth in the years preceding. Home prices in Hobart are still up 34.9% since March 2020.

ACT
Home prices in Canberra fell 0.21% in May, though prices remain 1.23% above May 2023 levels. After recovering just under a third of their decline, prices were 4.58% below their March 2022 peak.

*** Article written by Eleanor Creagh, Senior Economist, Proptrack

This took the cash rate to 2012 levels and similarly for mortgage rates.

In leaving the cash rate on hold the RBA reiterated that interest rates have already been increased by 4%, higher rates are working to establish a “more sustainable balance between supply and demand”, uncertainty remains high and staying on hold provides further time to assess the outlook. The RBA also noted again that recent data is consistent with inflation returning to target in late 2025. So have we reached the peak in the cash rate? And what does this mean for the economy?

The case for the peak in rates

We were way too optimistic as to how far the RBA would raise the cash rate, but our view remains that the RBA has done more than enough to bring inflation back to target and so we are likely at the peak.

First, rate hikes impact the economy with a lag of a year or more. This is because it takes a while for the hikes to be passed through to borrowers and for them to adjust their spending and for this to impact companies and jobs. This time around the lag has likely been lengthened by savings buffers built up in the pandemic, the reopening boost, more than normal home borrowers locking in at 2% or so fixed mortgage rates in the pandemic and the highly competitive mortgage market which has meant that actual mortgage rates paid on outstanding mortgages have gone up by less than the cash rate. However, these protections are now wearing off.

The rate hikes since April last year mean that a variable rate borrower with a $600,000 mortgage will have seen around $1300 a month added to their mortgage payments. That’s an extra $15,700 a year. Even if the borrower has managed to get a 0.5% discount to their mortgage rate it would amount to an extra $13,300. Many of those on fixed rates are now starting to experience an even bigger increase (because fixed rates in 2020-21 fell to much lower levels than variable rates) in one jump. This has already seen housing debt interest payments as a share of household disposable income double from their lows. Once the rate hikes fully flow through it will likely go to a record high. This is a very big hit to household spending power.

Secondly, we are now seeing increasing evidence that rate hikes are biting:

• Real retail sales have fallen for three quarters in a row and are very weak on a per capita basis, ie adjusting for population growth.

• The ABS’ Household Spending Indicator suggests annual growth in nominal consumer spending has gone negative this quarter which suggests weakness in both goods and services.

• A sharp slump in building approvals points to weak in-home building.
• Business investment plans as surveyed by the ABS for the current financial year are only up 7.1% on the same estimate made for the last financial year pointing to a deceleration in growth from the 15.9% rise seen in 2022-23. This is in nominal terms so the slowdown after allowing for inflation will be greater.

• GDP growth has slowed to a 1.6% pace in the last two quarters.
• Labour market indicators including job vacancies and hiring plans in surveys have started to cool and unemployment looks to have bottomed at 3.4% late last year.
• The June half profit reporting season saw less companies than normal report profits up on a year ago and far less than normal raise their dividends, suggesting a degree of caution.

Finally, while our Australian Inflation Indicator has picked up a bit with higher labour and raw material costs it continues to point to a further rapid fall in inflation.

Continuing to raise interest rates will only add to the already very high risk (at around 50%) of recession. At the very least the economy is likely to have slowed substantially by late this year with unemployment starting to rise faster than the RBA is allowing for. This will likely see inflation fall next year faster than the RBA expects. As a result, our base case is that the cash rate has peaked ahead of rate cuts starting in the March quarter next year which should help growth then stabilise and improve later next year.

Short term risks for rates are still on the upside though

In the short term, the risks are still skewed to a further increase in interest rates and or a delay in the start of rate cuts as: inflation is still too high; the labour market remains tight with upwards risks to wages flowing from higher minimum and award wage rises; productivity growth is very weak; and the rebound in home prices is partly offsetting the tightening impact of higher interest rates. Consistent with this the RBA retained its guidance that some further rate hikes may be required. Key to watch will be the global economy, household spending, inflation and the labour market.

While the near-term risks for interest rates are still on the upside those risks have declined though. Absent much stronger wages growth, a further drop in unemployment and/or a reversal of the downtrend in inflation, the RBA is expected to leave interest rates on hold for the rest of this year ahead of rate cuts next year. We are allowing for four rate cuts through 2024 as the economy and inflation slow further.

So soon-to-be Governor Bullock should get an easier run than Governor Lowe. Her main challenge may be trying to turn the economy back up.

***Credit to Dr Shane Oliver - Head of Investment Strategy and Economics and Chief Economist, AMP Investments

Queensland real estate law requires that all people bidding at a residential property auction must provide their names, addresses and proof of identity to the Auctioneer prior to the auction in order for their bids to be accepted.

How to Register

• You can register at any time prior to the auction. This can be at an open for inspection, or when visiting the listing agency prior to the auction. Registering early will save you the trouble of registering on auction day.
• You will need to provide the Auctioneer with your name and address and some photo identification – e.g. drivers licence or passport.
• The Auctioneer will record these details in a Bidders Register and provide you with a Bidder number. This number must be displayed by you when making a bid during the course of the auction.
• If you register prior to auction day, you may not receive your number. When you arrive at the auction, you will need to see the Auctioneer or their representative, provide the proof of your identity, and receive your number or bidder card at that time.
• Auctioneers are not permitted to provide your information to any other person other than an inspector or the court. However, the auctioneer may disclose to the seller of the property the identity of a bidder if it is necessary for negotiating the sale of the property after the auction.

Remember: You do not have to bid just because you have registered, but you must be registered if you intend to bid.

How to Bid

• Make sure that the Auctioneer can see you. Ideally, you should hold up your bidder number and call out your bid in a clear audible voice. This will be provided upon entry to Auction once registration is complete.
• You can call out an exact amount – e.g. "$260,000" or indicate the amount you wish to increase the previous bid by the increment suggested by the Auctioneer – e.g “Another $10,000”.
• If the Auctioneer calls the incorrect amount or misinterprets your bid – call out to the auctioneer and clarify the bid with them immediately.

Important Points to Remember When bidding at an Auction:

• Make sure you are familiar Conditions of Sale prior to bidding at the auction. Auctioneers will have these displayed at the auction for inspection by bidders prior to the auction commencing. Some Auctioneers will read some or all of these out at the start of the auction.
• If you propose to bid on behalf of another person, you must have a letter of authority and provide the name and address details of that person to the Auctioneer in order to register them as bidders in the bidder register.
• When bidding at an auction, remember that if you are the successful bidder you will be required to sign the contract of sale and pay a deposit on the spot.
• There is no cooling-off period when you buy at an auction.
• The Auctioneer's decision is final. In the event of a dispute arising, the Auctioneer has the right to resubmit the property afresh or with a Vendor's bid in the event that the dispute arise before the reserve price was reached.
• Prior to the commencement of an auction, Auctioneers are unable by law to provide advice to potential purchasers as to what the reserve price is.
• At the commencement of the auction, the Auctioneer may announce if the property is to be sold with or without a reserve price.

Remember: hand in your bidder number at the end of the Auction.

Need more information? 

The Office of Fair Trading can provide you with more information on the laws that apply to property auctions. You can contact them on 3246 1523 or check out their website on www.fairtrading.qld.gov.au

** Source: Real Estate Institute of Queensland. (2015). A Bidder's Guide for Residential Property in Queensland. REIQ. Brisbane: The Real Estate Insitute of Queensland Ltd. 

Why Sell Between October and November 2023?

1. Festive Momentum: 
   With the holidays just around the corner, buyers are often in a positive and decisive mood. Closing a deal now means they can start the new year in their new home.
2. Lower Inventory:
   Historically, there are fewer properties listed at the end of the year, meaning less competition for sellers and potentially higher offers from eager buyers.
3. Tax Benefits:
   Buyers looking to purchase before the year ends might be aiming for specific tax benefits, making them more inclined to close deals quickly.
4. Motivated Buyers:
   Those searching in this period are typically serious about buying and less likely to be merely 'window shopping.'

Why Wait and Sell Between January and March 2024?

1. New Beginnings: 
   The new year symbolizes fresh starts. Buyers often enter the market with renewed vigor, searching for their dream home.
2. Higher Inventory:
   While there might be more properties listed, the increased activity also means more potential buyers in the market.
3. Summer Appeal:
   On the Gold Coast, our summers are captivating. Properties, especially those with outdoor amenities, can show exceptionally well in these months.
4. Post-Holiday Resolutions:
   After the holidays, many people decide it's time for a change, including moving to a new home. This can lead to a surge of potential buyers.

Conclusion:

There's no one-size-fits-all answer. The decision to sell now or wait until next year should align with your personal goals and circumstances. However, regardless of when you choose to sell, our dedicated team is here to guide and support you through the process.

Considering making a move? Contact us today for a comprehensive market analysis tailored to your property.

• Rate path will depend on data, evolving assessment of risks
• Australian dollar, yields rise as traders trim rate-cut bets

Australia’s central bank left interest rates at a 12-year high and signaled further tightening remains possible, joining global peers in pushing back against expectations for near-term easing and sending the currency and bond yields higher.

The Reserve Bank maintained its cash rate at 4.35% — as predicted by economists — on Tuesday, and said in a post-meeting statement that “a further increase in interest rates cannot be ruled out.”

At her inaugural conference following the rate decision, RBA Governor Michele Bullock reiterated the board’s hawkish stance as she emphasized that inflation remained “too high.” The messaging prompted the currency to rise against all its major peers and swaps traders to bet the RBA will trail counterparts from the Federal Reserve to the Bank of England in policy easing this year.

“We are not ruling in anything or out anything,” Bullock said. She signaled that taming inflation was taking priority over the desire to provide relief to heavily-indebted mortgage holders, saying “we need to stay the course.”

The governor defended the RBA’s surprise November interest-rate hike, noting it was needed to guard against upside risks to inflation. Risks now appear “fairly balanced,” she said.

The Australian dollar rose as much as 0.5% to 65.17 US cents, while yields on policy sensitive three-year government bonds were up 2 basis points to 3.70%. Swaps traders now see the chance of a June rate cut at 42% from about 50% beforehand, according to data compiled by Bloomberg.

The RBA “retains a mild tightening bias in contrast to the Fed, BoC, ECB and BoE,” said Su-Lin Ong, chief economist at Royal Bank of Canada, adding the statement was “more hawkish” than markets expected.“The language around inflation is strong despite downward revisions.”

The RBA also released its quarterly forecasts which showed core inflation will only hit the midpoint of its 2-3% target band in 2026. The trimmed mean measure, which smooths volatile items, came in at 4.2% in the final three months of 2023.

The extended timeframe for inflation to return to target suggests the RBA will stick to its view that rates need to remain at elevated levels for some time, according to money markets and economists. That suggests Australia may be one of the last dollar-bloc economies to begin easing, they said.

Underlining that, rates traders expect the RBA to hold off policy easing until later in the year, while they are certain the Fed will begin cuts by June. Australia’s central bank is seen as likely to undertake two quarter-point reductions this year, while the Fed is seen delivering as many as five.

“Maintaining a tightening bias signals to the fiscal authorities that it’s too early to declare the inflation fight over,” said Gareth Aird, head of Australia economics at Commonwealth Bank of Australia. “The RBA would not wish to see fiscal settings loosened until further progress on inflation has been made towards the target band.”

Reinforcing that theme, Bullock noted in her press conference that Australian governments are “keenly aware” of inflation risks.

Fed Chair Jerome Powell said Americans may have to wait beyond March for the central bank to cut rates as officials look for more economic data to confirm that inflation is headed down to 2%. In an interview with CBS’s 60 Minutes that aired Sunday evening, Powell said the “danger of moving too soon is that the job’s not quite done.”

Bullock did not provide a timeline on the RBA’s next moves in either direction, saying optionality on rates is needed as the board remains squarely data-dependent.

What Bloomberg Economics Says...

“We think the evolution of inflation, demand and the labor market over coming months will lead the RBA to not only pivot to neutral, but to begin cutting rates as soon as May.” - James McIntyre, economist

The RBA moved cautiously during its tightening campaign — its 4.25 percentage points of hikes was 1 point less than the US and New Zealand delivered. Another reason for expectations the RBA will be slower on the way down is the disinflation impulse so far in Australia is weaker than elsewhere, with productivity growth among the weakest in the developed world.

At the same time, Australia’s labor market remains solid and the economy has shown resilience to higher borrowing costs, suggesting there’s no urgency to shift quickly to easing. Moreover, policymakers won’t want to further fuel house prices that have been driven up by a supply shortage and high immigration.

** Article from Bloomberg

General Preparation

Declutter: Remove personal items, unnecessary furniture, and clutter to make spaces appear larger and more inviting.

Deep Clean: Ensure every area of the home, including carpets, windows, and bathrooms, is thoroughly cleaned.

Paint: A fresh coat of paint in neutral colors can brighten up spaces and appeal to a wider range of buyers.

Repair: Fix any minor repairs such as leaking faucets, squeaky doors, or loose handles to avoid potential buyer concerns.

Upgrade: Consider small updates that can boost value, such as new cabinet hardware, light fixtures, or door handles.

Landscape: Mow the lawn, trim hedges, and ensure the garden is tidy. First impressions are crucial.

Pest Inspection: Conduct a pest inspection to ensure no infestations need to be addressed.

Staging

Furniture Arrangement: Arrange furniture to maximize space and flow within the home.

Decor: Use neutral decor to appeal to a broad audience and help buyers envision themselves in the space.

Lighting: Enhance lighting by opening curtains/blinds during viewings and adding lamps to darker areas.

Documentation and Legalities

Property Documents: Gather all necessary documents, including the title deed, recent utility bills, and any warranties or manuals for included appliances.

Compliance Certificates: Ensure you have up-to-date compliance certificates for electrical, gas, and other relevant inspections required in your area.

Marketing Materials

Professional Photography: Hire a professional photographer to take high-quality photos of your home. Good photography significantly impacts online appeal.

Virtual Tour: Consider creating a virtual tour of your home for online listings, offering a 360-degree view of the property.

Detailed Description: Write a compelling and detailed description of your property, highlighting key features and benefits.

Online Listing Preparation

Choose the Right Platform: Research and select the most effective online real estate platforms for your target market.

SEO Optimization: Use relevant keywords in your online listing to ensure it's easily found by potential buyers.

Contact Information: Make sure your contact information is correct and easily accessible for inquiries.

Final Checks

Review Listings: Before going live, review your listing for accuracy in details, spelling, and grammar.

Legal Consultation: Consult with a real estate lawyer to review all documents and ensure you're compliant with all legal requirements.

Pricing Strategy: Confirm your asking price aligns with the current market conditions and comparable properties in your area.

Completing these steps before your property goes online can enhance its appeal, potentially reduce the time it spends on the market, and help achieve a favorable sale price. Remember, the goal is to make your property stand out in the online marketplace.

Impact on the Gold Coast Property Market

Historically, reductions in interest rates have stimulated the Australian housing market by enhancing affordability and boosting buyer confidence. For instance, following the RBA's February rate cut, national home prices rose by 0.27% in March, with all capital cities, including Brisbane, experiencing price increases. ​

On the Gold Coast, lower interest rates can lead to heightened demand, as buyers are more inclined to enter the market due to reduced borrowing costs. This increased competition often results in upward pressure on property prices. Recent data indicates that the median price for units in the area has seen a 4.6% increase over the past year. ​

What This Means for Sellers

For property sellers, a decrease in interest rates can be advantageous. Lower rates typically attract more buyers, leading to increased demand and potentially higher sale prices. Sellers might experience shorter timeframes on the market and receive offers closer to or exceeding their asking prices. However, it's essential to remain mindful of broader economic conditions and local market trends that could influence buyer behavior.​

Implications for Buyers

Buyers stand to benefit from lower interest rates through reduced mortgage repayments and enhanced borrowing capacity. This financial relief can make homeownership more attainable, especially for first-time buyers. However, the resultant increase in buyer competition can drive property prices higher, potentially offsetting the advantages of lower borrowing costs. Therefore, buyers should act prudently, ensuring they are financially prepared and have a clear understanding of their budget constraints.​

Conclusion

While the anticipated RBA rate cut presents opportunities for both buyers and sellers in the Gold Coast property market, it's imperative to approach these changes with careful consideration. Sellers may find favorable conditions to achieve desirable sale outcomes, whereas buyers should remain vigilant, balancing the benefits of lower interest rates against the potential for rising property prices. Engaging with financial advisors and real estate professionals can provide valuable insights tailored to individual circumstances, ensuring informed decision-making in this evolving market landscape.

Book a sales appraisal with us to decide if now is the right time for you.

Understanding Fixtures and Chattels

Fixtures are items that are physically attached to the property and are considered part of the real estate. They are generally expected to stay with the home unless specifically excluded in the sale contract. Examples include:

• Stoves
• Built-in dishwashers
• Ceiling fans
• Plumbed-in systems like garden sprinklers and pool heating
• Wired-in light fittings
• Smoke detectors

Chattels, on the other hand, are movable items that are not permanently attached to the property and can be taken by the seller. Examples include:

• Fridges
• Freezers
• Microwaves
• Washing machines
• Clothes dryers
• Potted plants
• Outdoor furniture (if not secured to the ground)

A simple way to distinguish between the two is the "turn-the-house-upside-down" test: if it falls out, it’s a chattel; if it stays put, it’s a fixture.

Deciding What to Take Before Listing

Before listing your home, decide what you want to take with you. Discuss these items with your real estate agent to ensure clarity and avoid disputes. It’s advisable to remove any fixtures you plan to keep before photographing the property for marketing purposes, as photos can be used as evidence if there's a disagreement.

Common Disputes and How to Avoid Them

Disagreements often arise over items in the grey area between fixtures and chattels. For instance:

• Dishwashers: If it’s built-in, it’s generally a fixture. Specify in the contract whether it will stay or go.
• Curtains and Blinds: While blinds (fixed) usually stay, curtains may be taken if not specified in the contract.
• Light fittings: Custom or valuable light fittings should be noted in the contract if you plan to take them.

To prevent disputes, clearly list any exclusions (items you will take) or inclusions (items you will leave) in the sale contract.

Boosting Your Bargaining Power

Sometimes, offering items that fit well with the house can enhance your bargaining position. This might include:

• Custom-made curtains
• Large, fitted rugs
• Specific appliances like a large refrigerator that suits the kitchen space

These items can be used as a negotiating tool or sold separately to the buyer.

Items You Typically Can't Take

When selling your home, the following items are generally expected to remain with the property:

• Fixed floor coverings (carpet, hardwood flooring)
• Curtain rods and fixed window coverings (blinds)
• Built-in bookshelves and benches
• Wall-mounted TV and speaker brackets
• Plumbed-in fountains and irrigation systems
• Pool and spa filtration systems

Items You Typically Can Take

Conversely, these items are usually taken by the seller:

• Portable appliances (fridges, freezers, microwaves)
• Washers and dryers (if not built-in)
• Loose outdoor furniture and garden ornaments
• Potted plants (unless they are secured in the ground)

Legal and Practical Considerations

According to legal experts, any item that can be removed without damaging the property is generally considered a chattel and can be taken by the seller. However, ambiguity can lead to disputes, so clarity in the contract is crucial. If in doubt, list the item in the sale contract.

Kristy Fletcher of LEAD Conveyancing advises: "If it’s physically attached to the building, it’s expected to stay. For any item you wish to take, either remove it before listing or explicitly exclude it in the contract."

Elizabeth Espinosa, Commissioner of the Land and Environment Court of NSW, also emphasizes the importance of detailing any exclusions in the contract: "Where anything is in doubt, it should be expressly included in the contract for sale."

By understanding these guidelines and clearly communicating your intentions through the sale contract, you can ensure a smoother transition and avoid potential legal conflicts.

1. The Market is Hot, and So is Your Property

The property market moves in cycles, and there are times when homes in your area are in high demand. A seller’s market, where demand outstrips supply, can mean shorter selling times and the potential to get top dollar for your home. If your property has appreciated in value due to local infrastructure growth or neighbourhood improvements, now could be the perfect time to list it. At Smyth RE, we stay on top of these trends, giving you insider knowledge of the local Gold Coast market and beyond, so you never miss the best opportunity to sell.

2. Your Home No Longer Fits Your Needs

As life changes, so do your living needs. Whether you're outgrowing your current home, downsizing for a simpler lifestyle, or looking for a better location, your home should suit your current and future needs. A house that was perfect when you bought it might not accommodate your growing family or lifestyle anymore. Perhaps you're dreaming of a home office, outdoor entertaining space, or a quieter neighborhood. If your current property isn't cutting it anymore, it might be time to sell.

At Smyth RE, we understand that every client’s situation is unique. Our personalised service takes your future goals into account, helping you transition smoothly into your next chapter.

3. Emotional Readiness to Move On

Selling a home isn't just a financial decision; it’s an emotional one too. If you've been contemplating selling but have held off for sentimental reasons, it’s important to assess your readiness. Are you prepared to let go and embrace the possibilities that come with a fresh start? If so, now could be your time to sell.

With Smyth RE by your side, we’re here to support you every step of the way. We understand that selling a home involves more than just paperwork—it's a significant life change. Our caring and compassionate team will handle every detail while respecting the emotional ties you may have to your home.

4. You Want to Take Advantage of Lower Fixed Interest Rates

When interest rates are lower, potential buyers have better borrowing power, which often leads to higher demand for homes. If you've been watching the fixed interest rates fall, this could signal a great opportunity to sell. Buyers are motivated to secure properties due to increased buying power, potentially leading to competitive bidding for your home.

Smyth RE has in-depth knowledge of market conditions and buyer behavior. Our marketing strategies are designed to highlight your home’s best features and ensure it reaches the right buyers at the right time.

5. You Want to Free Up Equity or Downsize for Retirement

Selling your home can help unlock the equity you've built over the years, giving you the financial freedom to invest in other ventures, buy a new property, or downsize to a more manageable home. Whether you’re preparing for retirement or just want a change of pace, selling can provide you with options.

At Smyth RE, we specialise in helping our clients strategically capitalize on their home’s value. Our expert agents are skilled in negotiating the best deals, ensuring you walk away with maximum profits that align with your long-term goals.

Why Choose Smyth RE?

Our Local Expertise: Based on the Gold Coast, Smyth RE is deeply rooted in the local community. We know the market, the neighbourhoods, and the unique selling points of each area. With us, you're getting more than just an agent—you’re gaining a team of experts who are passionate about helping you sell your home for the best possible price.

A Personalised Approach: No two homes or sellers are the same. That’s why we take the time to understand your personal situation and create a customised marketing strategy that works for you. From preparing your home for sale to handling negotiations, our focus is always on delivering exceptional service with results that exceed your expectations.

Cutting-Edge Marketing: We know how to make your property stand out. From professional photography and video tours to targeted digital marketing campaigns, Smyth RE ensures your home gets maximum exposure to the right audience. Our tailored approach means your home is showcased in the best light, reaching potential buyers near and far.

Stress-Free Process: Selling your home doesn’t have to be overwhelming. At Smyth RE, we handle everything—from valuations, inspections, and open houses, to contract negotiations. With our full-service approach, you can focus on your next move while we take care of the rest.

Deciding to sell your home is a big decision, but with the right guidance, it can also be an exciting and rewarding one. If you’re thinking about selling, Smyth RE is here to help you navigate the process with ease, providing expert advice, support, and world-class marketing strategies.

Ready to make the move? Contact Smyth RE today and let us help you turn your selling dreams into reality. Whether you're downsizing, upgrading, or simply looking for a change, we’re here to guide you every step of the way.

Market Performance and Projections

In recent years, the Gold Coast has experienced substantial property value increases. Propertyology's 2025 Property Market Outlook forecasts a further 10–13% rise in property prices for the year. This projection reflects the region's ongoing appeal and economic resilience. ​

Demand Drivers

Several elements contribute to the robust demand in the Gold Coast property market:​

• Population Growth: The area's population is projected to reach one million by 2046, necessitating the construction of approximately 161,700 new dwellings over the next two decades. ​
• Interstate Migration: A significant number of residents relocating from other states have chosen the Gold Coast, attracted by its lifestyle and economic opportunities. ​

Supply Constraints

The market faces notable supply challenges:​

• Land Shortages: The availability of vacant residential lots is limited, with high demand and lengthy approval processes contributing to a bottleneck. This scarcity has driven the average price per square meter for vacant land above $1,500. ​
• Construction Delays: Increased construction costs and labor shortages have slowed the completion of new housing projects, further constraining supply. ​

Suburb Highlights

Certain suburbs are experiencing particularly strong growth:​

• Surfers Paradise: The median house price has reached $4 million, marking a 123% increase over five years. ​
• Upper Coomera: This suburb has shown significant sales activity, indicating rising demand and potential for future growth. ​

Investment Outlook

The combination of strong demand and limited supply positions the Gold Coast as an attractive market for investors. The luxury property segment, in particular, is experiencing heightened interest, with sales of properties over $5 million increasing by 12% in 2024. ​

In summary, the Gold Coast property market is set for continued growth in 2025, underpinned by demographic trends, supply constraints, and ongoing infrastructure developments.​

Launching yourself into property investment can seem daunting. But, by following some sound advice, it doesn’t have to be so scary. Here are the steps to get you on your way.

1. How much money do I need to get started?

The first step is one of the most obvious; ask yourself: do you have enough money?

Start by calculating what your income and expenses are and separate your ‘surplus money’ from any expenditures you’re already committed to. This will help you on your way to work out how much you might be able to afford to spend.

How much you need to start your property investment journey can vary widely depending on your circumstances. There is a myriad of factors that will influence your starting budget, including your investment strategy, location and housing type.

Getting pre-approval from a lending institution will allow you to find out if you’re eligible for a loan and how much you’re able to borrow. It gives you greater clarity about how much you can afford, which properties you should be looking at and confidence around making an offer.

2. Setting investment goals

Next, set your goals. What are you hoping to achieve with your investment? Common goals include gaining an income stream or providing for retirement.

Start by setting your long-term goal. Then, break it down into smaller steps and shorter-term goals. This will help you stay focused and not lose sight of what you’re hoping to achieve.

Some common goals for investment include planning for retirement, providing an asset for family members, earning a regular rental income, building equity to buy a home or other major purchase, or minimising taxable income.

It’s important to always keep in mind that property investment is usually a medium to long-term prospect. Consider how your financial situation is likely to change over these time frames.

3. Choosing your strategy

Once you have established your ultimate goal, your strategy will generally fall into three categories: capital growth strategy, cashflow strategy or renovation.

Capital growth strategy

A capital growth strategy involves buying a property with the expectation it will increase in value over time.

In most cases, this strategy is best suited for medium to long-term investors who aim to buy when the market is down and sell when it’s at a high.

Cashflow strategy

A cashflow strategy places less emphasis on capital growth and more on providing an income stream.

Generally, this strategy involves purchasing a rental property that will provide greater income than the mortgage repayments, maintenance and management costs associated with the property.

While this strategy can provide income, it may take longer to build equity, while there may also be fewer tax benefits involved.

Renovation strategy

A renovation strategy, sometimes known as ‘house flipping’, involves purchasing a property that needs improvement, renovating it and then selling for a profit. This strategy may also be used to increase an investment property’s rental income.

This approach can work on a shorter time frame that other strategies. Rather than waiting for the property’s market value to increase, you’re making direct physical investments in the property itself.

A potential hazard can be if the renovation costs are more than you anticipate. If your financial situation is dependent on a quick turnaround and the market dips when you’re trying to sell, some of the value you have added may be negated.

4. Research

Property investment should always be based on facts and figures, not emotion. To give yourself the best chance of success, take your time.

Remember, the old property adage — location, location, location.

Your investment is likely long-term, so will the area you buy in maintain or increase its value? Look for factors such as nearby infrastructure projects, accessibility to desirable jobs and lifestyle activities.

Look at the median price and year-on-year growth for property in the areas you’re considering. Investment data from reputable sources can help you understand what the rental yield might be.

Consider tapping into some professional advice. It could be good to talk to a lending specialist, such as a mortgage broker, to get a thorough understanding of the products available to you and decide which best suit your needs.

Your accountant can advise on tax issues and how to structure your borrowings; local real estate agents can provide insights into the local market; a depreciation specialist can advise what losses you can claim against tax; and a conveyancer can talk about contracting and legal affairs.

Depending on your purchase, approach your council about any possible costs related to redevelopments or renovations.

5. Pros and cons of property investing

Like any investment, there are risks and benefits you should weigh up before making the leap.

Pros of property investing

The upsides to property investing can include:

• Property is a well-known, familiar investment vehicle that you can find a wealth of information and support for.
• There’s a long list of property costs that provide tax benefits, such as negative gearing.
• Investing in property can yield long-term returns, both in terms of rental payments and in increased market value over time.
• Property is generally less volatile than other types of investment.
• You can access equity you build in the property to help finance other purchases.
• Property allows you to maintain control of the decision making, whether it be improvements to the property, when to sell, tenant selection and more.

Cons of property investing

Every type of investment has potential downsides. Some associated with property investment can include:

• Large upfront costs, with potentially more after the purchase. These can include legal fees, stamp duties, building inspections, etc. Ongoing costs may include real estate management fees and maintenance costs.
• If the property you’re buying is not intended to be your primary residence, when you come to sell, capital gains tax may be applicable.
• Costs can increase if interest rates rise.
• A large outlay into a single asset class means your risk profile is not diversified.
• There is no guarantee your large investment in a property will pay off. Most Australian markets have shown great resilience in the wake of the COVID-19 pandemic and recession. But, like every investment, property is not a “sure thing”.

**Article written by realestate.com.au

Interest Rate Outlook

Currently, interest rates range between 5.99% and 6.30%, and there’s growing optimism that rates may decrease in the near future. A potential drop to around 4.35% has been forecasted, which would enhance buyer confidence and drive further activity in the market​.

Market Resilience

The Gold Coast property market has proven remarkably resilient, with a projected growth of 4% in 2024. Median house prices have already surpassed the $1 million mark, underpinned by factors such as population growth, interstate migration, and the lifestyle appeal of the region. The demand for housing, paired with a shortage in supply, has helped sustain property values despite the higher interest rates​.

How Does This Affect Buyers and Sellers?

For buyers, the outlook is promising. As interest rates stabilise or even decrease, it could become easier to secure financing, potentially leading to a more favorable environment for those looking to purchase property. Additionally, prices are expected to continue appreciating, meaning that now could be an excellent time to enter the market before further increases.

Sellers, meanwhile, continue to benefit from strong demand and limited stock, especially in key growth suburbs like Southport, Broadbeach, and Coomera. Even with slightly higher borrowing costs, the sustained demand for the Gold Coast’s coastal lifestyle ensures a healthy level of competition for properties.

Conclusion: A Bright Horizon

While the market has experienced some adjustments due to interest rates, the long-term outlook for Gold Coast real estate remains positive. With stabilizing rates, continued demand, and strong price growth projections, the region is well-positioned for a vibrant year ahead in real estate. Whether you're buying, selling, or investing, the Gold Coast market offers plenty of opportunities as we move into 2024.

If you'd like to discuss how current conditions can impact your real estate goals, feel free to reach out to our team for personalised advice!

What you consider essential when buying a property to live in is different to what you need to look for as an investor.

1. What makes a good investment property?

What makes a good investment property will come down to three key fundamentals: rental yield, capital growth potential and underlying demand.

Rental yield is especially important for a cashflow investment strategy. A property’s gross rental yield is calculated by taking the annual rental income, dividing it by the property value and then multiplying it by 100. For example, a property that earns $375 a week in rent, for a total of $19,500 a year, on a property purchased for $450,000, returns 4.3% gross rental yield.

The higher the yield, the better. But it isn’t everything.

Property experts advise you should ensure you choose a property that also has good capital growth potential. This means a property that will gain in market value over time.

Strong underlying demand means that tenants are more likely to apply for your property. A quality home in a desirable area that is well presented is more likely to have strong underlying demand.

So, while you should always crunch the numbers, don’t forget to assess the attractiveness of your property. Tenants are more likely to want to rent a well-presented property.

2. What kind of property should you buy for an investment?

You probably have your own preferences for the kind of property you would like to live in.

But the criteria for picking the perfect investment property isn’t necessarily the same.

Units/apartments versus houses

There’s a place for both houses and units in a property investment portfolio.

Houses are generally more expensive than units in a similar location. Houses in growing areas tend to experience higher capital growth than units or townhouses. But units may provide higher rental yields.

For houses, you’ll have complete responsibility for costs such as maintenance and insurance.

Units will usually have associated body corporate fees which should be factored into your budget as ongoing costs.

Location

You’ll never be able to change a property’s location. It’s a vital consideration when you’re looking to buy.

Once you have your budget sorted, look for the best suburb you can afford and spend some time in the neighbourhood.

Visit cafes, shops and recreation areas and get a feel for the kind of community that exists there. Look for features such as parks, walking tracks, beaches and bushland nearby that can also increase value. Of course, water or city views will also be desirable.

Proximity and transport to work centres is also something to consider. Property experts suggest looking for upcoming government infrastructure projects, such as major road links. In the short term, they could be drivers of demand for renters working on the project, while long-term these projects may improve commute times to major job hubs.

Don’t forget to explore neighbouring suburbs — you might find a property that still ticks all your boxes.

Contact local agents and ask them about the preferred areas in suburbs and any available properties.

Established versus new

There are pros and cons to both old (established) and new properties.

Because they are more likely to be tied to their own land, established homes may have greater potential for capital growth. There’s also broader scope for negotiation when purchasing and the ability to renovate or develop.

However, they typically have lower rental yields and may have higher maintenance costs.

If you buy a new property off-the-plan, there are higher depreciation benefits and potential stamp duty savings. Maintenance costs are typically lower.

3. Different ways to invest in property

There’s more than one way to invest in property. Consider which path may be the best for you.

Mortgages

Mortgages are the best-known option when it comes to financing your property investment. There is a multitude of loan products available with varying conditions and flexibility. Most financial institutions have a lot of experience lending for property investment. They can give you guidance to which loan will suit you best.

Fractional investing

Fractional property investing divides the total cost of a property into shares. Investors can purchase a portion of an individual property to receive a respective portion of rental income and capital gains.

Real estate investment trusts (REITs)

You can also invest in property via the share market through real estate investment trusts (REITs) or directly in property development companies. REITs pool investor capital into development and real estate assets on your behalf. They can have the benefit of spreading risk through a more diversified portfolio of investments.

Exchange traded funds (ETFs)

Similar to REITs, exchange traded funds (EFTs) allow you to invest in property via the stock market. They pool investor capital to invest across a variety of different assets. Real estate EFTs often spread their investment across a range of REITs.

Self-managed super funds (SMSFs)

If you have a self-managed super fund, you may be able to use the equity from your fund to invest in property.

**Article written by realestate.com.au

No doubt about it, moving home is stressful. So much so that it’s usually ranked as one of life’s Top 5 most stressful events.

Amid the chaos of packing, logistics, and setting up again, there’s an awful lot to remember to ensure a smooth transition out of your old place and into your new one.

It’s easy to forget that you’ll also need your essential services connected - like your electricity and internet - at your new place to make a successful transition on day one.

Plus, when you’re exhausted from moving and just want to stream some TV shows, or scroll endlessly through social media, you’ll be glad you set up your new home for internet connection, including checking if nbn connectivity is available.

And while we all take different approaches to moving home, you can pretty much guarantee you’ll fall into one of these three categories: The Planner, The Outsourcer, and The Last-Minute Mover.

So, which one are you?

The Planner

Planners are meticulous and prefer to have everything sorted well in advance. They love being across all the details and research properties thoroughly.

They know their needs – especially when it comes to internet - and consider factors like nbn availability before deciding on where to live.

Planners’ key actions for a smooth move:

1. Research early: Start your search on real estate which often indicates if a property has nbn availability.
2. Write out lists and set out exactly what you need to do and when you need to do it.
3. Prepare in advance: Make sure to leave the nbn connection box behind at your old place, ready for the next resident, and confirm your new home’s nbn readiness before moving in.

How it helps

By planning ahead, you help ensure that your internet setup is one less thing to worry about on moving day.

You’ll arrive at your new home with a clear plan and the confidence that you know if your nbn connection will be available there, ready to support your next big project - even if it’s just finding the best-rated pizza in your new neighbourhood.

The Outsourcer

Outsourcers prefer to delegate moving tasks to the professionals – because you don’t have to do it all yourself.

Often time-poor, they’re comfortable taking recommendations from trustworthy sources and are open to relying on assistant services to help manage their moving logistics.

Outsourcers’ key actions for a smooth move:

1. Book in your removalist and any other help you need to move.
2. Communicate clearly: Ensure the moving company is aware of the specific instructions regarding nbn equipment and the need to leave the nbn connection box at your old place when you leave.
3. Notify your provider about disconnecting the service at your old address and organising a new service, and nbn installation if required, at your new address. They’ll take it from there.
4. Check with your provider to see if your nbn speed plan or Wi-Fi router needs an upgrade to help you get the most out of your nbn connection.  A newer modem with the latest Wi-Fi (Wi-Fi 6 or even Wi-Fi 7) will not only offer better performance to help you get the most out of your nbn connection, but could help deliver a better broadband connection.

How it helps:

For outsourcers, getting help eases the mental load of moving, saving time and reducing stress.

It ensures that all the key steps are taken care of, allowing you to focus on other aspects of your move like planning your new commute to work.

The Last-Minute Mover

Sometimes it's due to circumstances beyond their control, and sometimes it’s just how they do things, but there are plenty of Last-Minute Movers out there.

They often find themselves scrambling to get everything done at the eleventh hour.

That means they might forget important details amid the rush, so they need clear, concise instructions, delivered at the right moment.

Key actions for a smooth last-minute move:

1. Keep key information like your nbn set up instructions and your Wi-Fi password handy for quick reference when you need them.
2. When it’s time to pack up, make sure you leave the nbn connection box at your old place and take your Wi-Fi router to your new place. If you accidentally take the nbn connection box to your new place, don’t stress – you can send back via Australia Post for free.
3. Once you’re in the new place, remember it’s not too late to get reconnected. Just contact your provider to check what’s available in your new home and your provider can help you get connected to the nbn network.

How it helps

Knowing where you can get immediate access to information and clear instructions can help Last Minute Movers avoid pitfalls during the rush of moving.

A moving checklist can be a big help because it helps you remember everything you need – like being connected to fast, reliable internet as soon as you move into your new home, giving you one less thing to worry about during a very hectic time.  

So now you have an idea of which mover you are, hopefully your next move will be the most stress free one you’ve had yet. 

**** Article written by NBN

© 2024 nbn co ltd. ‘nbn’ is a registered trade mark of nbn co ltd | ABN 86 136 533 741 

When selling your home in Queensland, the protocol regarding internet and Wi-Fi setup is relatively straightforward, but there are a few important details to consider.

1. Modem/Router:

Ownership: If the modem or router was purchased by you (rather than provided by an ISP on a rental basis), you can take it with you when you move.

Rental Equipment: If the modem was supplied as part of your internet service provider (ISP) contract (common with ISPs like Telstra, Optus, etc.), it may need to be returned to the ISP if you are cancelling the service. In this case, you would not take the modem with you.

2. Internet Service:

Cancelling or Transferring: You should contact your internet service provider to either cancel your current contract or transfer your service to your new address. Timing is key here—you’ll want to ensure your new home is set up with internet when you arrive.

3. NBN (National Broadband Network):

NBN Box: In homes with NBN, the NBN connection box (also called the Network Termination Device or NTD) is generally fixed and part of the infrastructure. This device should stay at the property, as it is linked to the physical connection. You don't take this with you when you move.

4. Remove Personal Data:

Before taking your modem or leaving it behind, it’s a good idea to reset the device to factory settings to ensure any personal data, including Wi-Fi passwords, browsing history, or device settings, are erased.

5. Prepare for Settlement:

Make sure to communicate with the buyer, through the agent, about what technology stays or goes. It’s generally good practice to mention whether the home has been wired for internet, especially with any fixed assets like the NBN box, to avoid confusion.

In summary, yes, you generally take your modem with you unless it’s owned by the ISP or it’s an NBN connection box that stays with the property.

Across the country, vacancy rates are creeping up, rising by 0.3 percentage points over the past year alone.

That might not sound like much, but for landlords, it’s a signal: renters are beginning to have more choice, and standing out is now more essential than ever.

In major cities like Sydney and Melbourne, vacancies have jumped even more than the national average - up by 0.5%.

“A rise in vacancy is good news for renters as it means more choice,” says Anne Flaherty, Senior Economist, PropTrack.

“Properties listed for rent at the higher end are taking longer to lease out, with more renters looking to move into more affordable properties,” she says.

There are two main reasons for this shift: increased investor activity, which has resulted in more properties on the market, and rising cost-of-living pressures.

According to REA Group’s July Residential Audience Pulse, 41% of renters reported needing to downsize or move into shared housing to manage financial difficulties, while 22% are considering renting with others to reduce costs.

With renters now on the lookout and vacancy rates on the upward trend, property owners are realising they need to make their rentals more appealing and cost-effective to attract and retain tenants.

Here’s a list of some quick and affordable upgrades for landlords to keep properties in demand and avoid costly vacancies.

1. Revamp your space with a fresh coat of paint

A fresh coat of paint is the fastest facelift you can make to your house, and it’s one of the most cost-effective ways to instantly elevate your property’s appeal.

Neutral tones are the way to go: think soft whites, light greys, and warm beiges.

They not only make rooms feel brighter and more spacious but also appeal to a wider range of renters.

2. Stay cool and competitive

When it comes to upgrades that really catch renters’ attention, air conditioning is near the top of the list.

With each summer becoming hotter than the last, tenants are no longer just hoping for air conditioning—they’re expecting it.

When selecting a new system, prioritise brands with a track record of customer satisfaction.

Installing a quality system, like those from Mitsubishi Heavy Industries Air Conditioning (MHIAA), gives your property year-round appeal.

MHIAA has become the most independently awarded brand of air conditioners with over 20 accolades in Australia alone.

Tenants will appreciate the comfort in both the scorching summer heat and chilly winter nights.

Plus, MHIAA units are known for their energy efficiency, meaning tenants could enjoy lower utility bills - a big selling point in today’s market, where renters are increasingly cost-conscious.

3. Upgrade your flooring

Old, worn-out carpets are a turn-off for most renters, especially in a market where tenants have options.

Upgrading your flooring to something more durable and modern, like laminate or hybrid flooring, not only boosts the aesthetic appeal but also ensures the property is low maintenance.

Think of it this way: a quick flooring upgrade can give your rental property an entirely new feel.

And since vacancy rates in capital cities have climbed, every little detail matters.

4. Brighten up your space

Never underestimate the power of good lighting.

Replacing outdated light fixtures with modern, energy-efficient options like LED lighting can completely transform a space.

Not only do they look better, but they also save on electricity—something that tenants will definitely notice.

Adding a mix of ambient, task, and accent lighting can create a cosy, inviting environment that stands out in online listings and open inspections.

5. Boost your curb appeal

First impressions matter, especially when potential tenants are scrolling through listings or attending inspections.

A well-maintained exterior signals that the property is cared for, giving tenants confidence in the quality of the home.

Start with low-maintenance landscaping, like quality plants, to keep the yard looking fresh year-round without creating extra work for tenants.

Consider adding features like shade sails or a simple patio setup to enhance outdoor liveability.

Aussies love outdoor spaces, and even a modest investment in an inviting outdoor area can make your property stand out.

Whether it’s a small garden, a tidy backyard, or some outdoor seating, these enhancements not only improve the property’s aesthetics but also create a lifestyle appeal that draws tenants in.

*** Article written by realestate.com.au and Mitsubishi Heavy Industries Air-Conditioning

1. Reduce Maintenance and Upkeep

Owning a large home often comes with endless chores and maintenance tasks—gardening, cleaning, repairs, and general upkeep can quickly eat into your free time. By downsizing to a smaller property, you’ll spend significantly less time on these duties and more time doing what you love. Imagine weekends without mowing expansive lawns or endless dusting, and instead, enjoying leisure activities, travel, or spending quality time with loved ones.

A smaller home means fewer rooms to clean, fewer repairs to handle, and generally lower upkeep costs. This reduced maintenance not only saves time but can also make it easier to maintain your home as you age, ensuring it remains a comfortable and enjoyable space for years to come.

2. Unlock Financial Freedom

With a smaller home often comes lower mortgage payments, utility bills, and property taxes. Downsizing can free up a significant portion of your budget, allowing you to allocate money towards more meaningful pursuits. You could invest in experiences like travel, hobbies, or starting a new business. Alternatively, you might use the extra funds to pay off debts or grow your savings for a more comfortable retirement.

Moreover, selling your larger home may allow you to release equity that’s been tied up in the property, providing you with a substantial cash injection. This can be a game-changer if you're approaching retirement or simply looking for a change in lifestyle. You could even consider using these extra funds to purchase a smaller property outright, eliminating mortgage repayments altogether.

3. Simplify Your Life

Downsizing naturally encourages decluttering, prompting you to reconsider what you truly need. A smaller space will help you prioritize your belongings, keeping only those items that add real value to your life. This can lead to a more organized and streamlined living environment, which has been shown to reduce stress and enhance overall well-being.

When you live in a large home, it’s easy to accumulate excess belongings simply because there’s room to store them. Downsizing helps break that cycle, giving you the opportunity to adopt a more minimalist lifestyle. This simpler way of living can have profound effects on your mental and emotional health, freeing you from the pressure of materialism and making daily life more enjoyable.

4. Embrace a Lifestyle Change

For many, downsizing represents more than just a physical change; it signifies a lifestyle shift towards living more intentionally. A smaller home may be located in a more convenient location, such as a vibrant city area, a beachside community, or closer to family and friends. You could find yourself closer to amenities like cafes, parks, and cultural venues, allowing for a richer social life and more activities within walking distance.

If you’re someone who enjoys an active lifestyle, moving to a location with easy access to outdoor activities or community events can be a great way to increase your quality of life. By downsizing, you can choose a location that aligns with your interests and goals, whether that’s living closer to nature, having easier access to healthcare, or being part of a lively community.

5. Prepare for the Future

As we age, our housing needs inevitably change. Downsizing to a more manageable property can be a proactive step to prepare for future lifestyle changes. A smaller home can be more accessible, often coming in a single-level design that minimizes the need for stairs. This reduces the risk of accidents and can make day-to-day living easier as mobility changes.

Furthermore, if your current home feels empty because the kids have moved out or you no longer need the extra rooms, it might be time to reassess your living situation. A more suitable home layout will better accommodate your evolving needs and provide you with a comfortable environment for the long term. Downsizing can also help reduce the burden on your loved ones, making it easier for family members to support you as you grow older.

Conclusion

The decision to downsize is a deeply personal one, but it can bring about significant benefits that enhance your quality of life. Whether you're looking for financial freedom, a simpler way of living, or a more fitting home for your current lifestyle, downsizing can offer a fresh start and open the door to new opportunities. At Smyth RE, we understand the challenges and rewards of making this transition, and we’re here to guide you through every step of the process.

If you’re ready to explore the possibilities of downsizing, reach out to us at Smyth RE. Our team can help you find the perfect property to suit your new lifestyle, ensuring the next chapter of your life is filled with more freedom, less stress, and greater joy. It’s time to get more out of life—by living with less.

What is Capital Gains Tax?

Capital Gains Tax is a tax levied on the profit made from the sale of an asset, including property. Essentially, CGT is the difference between the price you paid for the property (cost base) and the price at which you sell it (sale price). If the sale price is higher than the cost base, the difference is considered a capital gain, and it is subject to taxation. Conversely, if you sell the property for less than what you paid, you incur a capital loss.

In Australia, CGT is not a separate tax but part of your income tax, meaning the profit from the sale of an investment property is added to your taxable income for the financial year in which the sale occurred.

When is CGT Applicable?

Not every property sale triggers CGT. Generally, CGT applies when you sell:

• Investment properties (rental properties)
• Holiday homes
• Properties inherited or received as a gift (with certain exceptions)
• Commercial real estate

However, if you are selling your primary residence, you may be eligible for a CGT exemption. This is the most common way Australians avoid paying capital gains tax when selling their homes.

How to Avoid or Minimise CGT When Selling Property in Queensland

While CGT is unavoidable in many cases, there are several legal ways to minimise or even eliminate the tax burden when selling a property. Below are some strategies:

1. Principal Place of Residence (PPR) Exemption

The primary way to avoid CGT is by ensuring the property you're selling qualifies as your Principal Place of Residence (PPR). This means that if the property has been your main home for the duration of your ownership, you may be fully exempt from CGT.

To qualify for this exemption, you must have:

• Lived in the property as your main residence for the whole period of ownership
• Not used the property to produce income (such as renting it out)
• Not claimed any other property as your PPR during the period of ownership

If you’ve lived in the property for part of the time and rented it out for the rest, you might still qualify for a partial exemption. The calculation will depend on how long the property was your main residence and how long it was rented out.

2. 6-Year Rule for Investment Properties

If you’ve rented out a property that was once your main residence, you may still avoid CGT under the six-year rule. This rule allows you to move out of your home and rent it for up to six years without losing your PPR exemption. The key conditions are:

• The property must have been your main residence before it was rented out.
• You did not purchase another property as your PPR during this period.

This rule can be particularly useful for those who temporarily move for work or other reasons and wish to keep their primary residence status on the property.

3. 50% CGT Discount for Long-Term Ownership

If your property doesn’t qualify for full CGT exemption, another way to reduce your tax liability is through the 50% CGT discount. This discount applies if you have held the property for at least 12 months before selling. For example, if your capital gain on the sale is $100,000, and you’ve owned the property for more than 12 months, you’ll only need to declare $50,000 as taxable income.

This discount is available to individuals, trusts, and some superannuation funds but not to companies.

4. Offsetting Gains with Capital Losses

If you’ve made a capital gain on a property, you can reduce your CGT liability by offsetting it against any capital losses you’ve incurred during the same financial year. For instance, if you sold another property or asset at a loss, that loss can be used to reduce the overall taxable gain from the profitable sale.

5. Using Superannuation to Reduce CGT

For retirees or those nearing retirement, selling an investment property and contributing the proceeds to your superannuation can be a tax-effective way to minimise CGT. The downsizer contribution scheme allows eligible individuals aged 55 and above to contribute up to $300,000 from the sale of their home to their superannuation fund. While this strategy does not directly reduce CGT, it can provide tax savings through the superannuation system.

6. Pre-Sale Expenses and Capital Improvements

Before you sell your property, it's important to carefully calculate your cost base—which includes the original purchase price, plus any costs related to buying, holding, and selling the property. This can include:

• Legal fees
• Stamp duty
• Maintenance costs
• Renovation or improvement expenses

By ensuring you account for all these expenses, you can reduce the total capital gain, thereby lowering your CGT liability.

Conclusion

While CGT is an inevitable part of the property market for many, there are several legal and legitimate strategies available to property owners in Queensland to either avoid or minimise this tax. Whether through the principal place of residence exemption, the six-year rule, or strategic use of tax offsets, planning ahead is key. Before selling a property, especially an investment or rental property, it’s essential to seek professional advice to ensure you are using the most appropriate CGT minimisation strategies for your situation.

At Smyth Real Estate, we are here to help guide you through the complexities of property sales and ensure you get the best possible outcome. If you have any questions or would like to discuss how CGT might affect your property sale, don’t hesitate to get in touch!

** This article provides a general overview of CGT considerations, but specific tax advice should always be sought from a qualified accountant or tax advisor.

Here’s an overview of the Seller Disclosure Scheme, its requirements, and its implications for both sellers and buyers.

Understanding the Seller Disclosure Scheme

The Seller Disclosure Scheme was introduced to standardize the information provided to buyers before they enter into a purchase contract. Previously, disclosure obligations varied, with limited mandatory information shared before signing. The new scheme prioritizes buyer awareness, giving them a more comprehensive understanding of the property they intend to purchase, and reduces the potential for disputes due to hidden issues post-settlement.

Key Elements of the Seller Disclosure Statement

Under the new scheme, sellers must complete a comprehensive disclosure statement that includes details about:

1. Property Title
   Sellers are required to disclose any information related to the title, such as any encumbrances, easements, or covenants affecting the property. This includes details about any mortgages, leases, or other interests that may limit the buyer's use of the property.
2. Building Approvals and Council Regulations
   Any building approvals or compliance notices that affect the property must be disclosed. This is critical in cases where unapproved structures, renovations, or additions exist, as they could impact the property's value or the buyer’s intended use.
3. Physical Condition of the Property
   Sellers must disclose known material facts that may affect a buyer's decision. For instance, if there is asbestos, water ingress issues, or structural damage, these must be documented. This provides transparency and allows buyers to make an informed decision based on the condition of the property.
4. Body Corporate Information (for Units and Strata Properties)
   For properties under a body corporate arrangement, additional information must be disclosed. This includes levies, body corporate rules, sinking funds, and upcoming major maintenance plans. This transparency helps buyers assess ongoing costs and obligations.
5. Environmental and Hazardous Risks
   Sellers must disclose known environmental factors, such as flood zoning, bushfire risk, or contamination. This information is essential for buyers, especially those unfamiliar with the local area or specific environmental concerns.

What Sellers Need to Do

For sellers, the new disclosure obligations mean gathering a range of documents and verifying details before listing a property. These include title searches, building permits, and any reports on material issues affecting the property. While this may initially require more work, it ultimately strengthens buyer confidence and reduces the risk of contract disputes.

To facilitate this, sellers should:

• Consult with legal professionals to ensure full compliance with the disclosure requirements.
• Work with their agents to identify what information must be collected and disclosed.
• Consider having a building and pest inspection to identify any issues that might need to be disclosed or addressed before listing the property.

Buyer Benefits and Protections

The Seller Disclosure Scheme is designed to protect buyers, ensuring they have access to relevant property information to make an informed purchase decision. It offers several key benefits:

• Reduced risk of hidden surprises post-settlement, as critical information about the property is disclosed upfront.
• Empowerment of buyers to negotiate terms or request repairs before signing a contract, based on the information provided in the disclosure statement.
• Enhanced market transparency in Queensland, fostering trust between buyers and sellers and promoting more competitive market conditions.

Implications for Real Estate Agents and Legal Advisors

Real estate agents play a crucial role under the new Seller Disclosure Scheme. As the main point of contact between buyers and sellers, agents are instrumental in ensuring that disclosure obligations are met and that all relevant information is made available. They are responsible for educating sellers on their obligations and facilitating the disclosure process efficiently.

Legal advisors are also essential in this framework, as they provide sellers with guidance on compliance and help buyers understand the implications of the disclosed information. Both agents and lawyers must now ensure that their clients are aware of these new responsibilities and that compliance is achieved.

Conclusion

The Seller Disclosure Scheme represents a significant move toward a more transparent, buyer-focused real estate process in Queensland. By requiring sellers to disclose comprehensive information upfront, the scheme not only protects buyers but also encourages fair dealings and reduces the risk of disputes.

For both sellers and buyers, understanding and complying with the new requirements is crucial for a smooth transaction. As Queensland’s real estate market adapts to this change, the increased transparency is expected to enhance the reputation and reliability of property transactions throughout the state.

Buying Before Selling: Pros and Cons

Pros

1. Freedom to Search – Buying first can give you the flexibility to wait for the perfect property without the pressure of an impending sale deadline.
2. Reduced Moving Stress – You’ll have the chance to move directly into your new property without interim accommodation, saving you on storage and rental costs.
3. Locking in a Home in a Hot Market – With demand often high on the Gold Coast, buying first means you can secure a property before prices rise further, which is particularly advantageous in a competitive market.

Cons

1. Financing Challenges – Buying first often means you'll need a larger deposit, bridging finance, or other arrangements. If your current property takes longer than expected to sell, this could put you under financial pressure.
2. Risk of Overcommitting – If the market shifts or your property sells for less than expected, you may find yourself short on funds. This can be a risk if you’re relying on the sale to cover part of your new purchase.

Financing Options for Buying Before Selling

On the Gold Coast, several financial products can assist buyers in this scenario:

• Bridging Loans: This short-term loan allows you to buy your new property while you wait to sell your existing one. Be mindful, though, as these loans come with higher interest rates and may require stringent qualifying criteria.
• Equity Release: If you've built substantial equity in your existing property, some lenders may allow you to use it towards a new purchase. Keep in mind this approach requires strong financial standing.
• Guarantor Loans: Some buyers can leverage a guarantor, often a family member, to secure a loan without selling first. This option can be beneficial for high-demand areas like the Gold Coast.

Selling Before Buying: Pros and Cons

Pros

1. Better Financial Position – Selling first provides you with a clear budget, allowing you to make a purchase with greater financial confidence. It removes the guesswork and pressure that comes with juggling two properties.
2. Avoiding Bridging Finance – Without the need for a bridging loan, you can save on potential high-interest costs and fees, which can be significant.
3. Market Adaptability – Selling first means you’re less exposed to changes in market conditions. Once you have funds from your sale, you can wait for an ideal buying opportunity without financial strain.

Cons

1. Potential for Temporary Accommodation – If you don’t find a suitable new property quickly, you may need interim housing, which could mean rental and storage costs.
2. Rushed Decisions – Selling first can sometimes pressure buyers into making hasty decisions. If the Gold Coast market moves quickly, you might feel rushed into purchasing a less-than-perfect property.

Options to Consider When Selling First

• Extended Settlement Period: When selling, you might negotiate a longer settlement period, giving yourself more time to find a new home before needing to vacate.
• Leaseback Arrangement: In some cases, buyers may agree to rent the property back to you after the sale, allowing you more time to search without needing to relocate.
• Renting: While this isn’t always ideal, renting a property after you sell can provide temporary flexibility. This allows you to buy with the freedom of knowing your exact financial position.

Factors to Consider When Deciding

1. Market Conditions on the Gold Coast

In a fast-paced market, like much of the Gold Coast, buying first could be advantageous to lock in a property before prices shift. However, if the market is slower, selling first might be a safer option as it reduces your financial risk.

2. Financial Flexibility

Evaluate your financial position and borrowing capacity. If you have the financial capacity to manage two properties temporarily, buying first could give you an edge. Otherwise, selling first might allow you to keep finances stable without bridging loans or extra interest.

3. Your Timeline and Life Circumstances

Consider your lifestyle, job situation, family, and other personal factors. Families often prefer to avoid renting and moving twice, which may make buying first more appealing.

4. Professional Support

Working with a local real estate agent and mortgage broker who understands the Gold Coast market can make a significant difference. They can advise on current trends, negotiate sale terms that suit your timeline, and provide realistic property valuations to help you make informed decisions.

Conclusion

The decision to buy before selling or sell before buying ultimately comes down to personal circumstances, financial readiness, and the Gold Coast's market conditions. Each option has benefits and risks, but with the right planning and professional support, you can navigate the process smoothly. Be sure to explore all financing and timing options available, and reach out to a trusted real estate professional to guide you through every step of your journey.

In a competitive market like the Gold Coast, having clarity and a strategic plan will put you in the best position to achieve your property goals, whether you choose to buy first, sell first, or explore creative solutions in between.

1. Understanding Contract Conditions

In Queensland, contracts can be either unconditional or conditional. Most commonly, contracts are conditional upon certain key events such as:

• Finance Approval: The buyer may have a set period (commonly around 14 to 21 days) to secure finance approval from their lender. During this period, the buyer works with their bank or mortgage broker to obtain final approval of their home loan.
• Building and Pest Inspection: Often, a buyer will request a building and pest inspection to assess the condition of the property. If issues arise, there may be negotiations to address any repairs, reduce the purchase price, or agree on other adjustments. This is usually completed within a specified timeframe, typically between 7 to 14 days from the contract date.
• Other Conditions: Depending on the situation, contracts may also be subject to the sale of the buyer’s existing home, pool compliance, body corporate approval (for units or townhouses), or other conditions unique to the agreement.

Once these conditions are met, the contract becomes unconditional and moves to the next steps.

2. The Cooling-Off Period

In Queensland, residential property buyers generally have a five-business-day cooling-off period from the date of the contract being signed. During this time, the buyer can choose to terminate the contract, though a termination fee of 0.25% of the purchase price may apply if the buyer pulls out. Sellers should be aware of this window, as it may impact their plans if the buyer exercises their right to cancel.

3. Legal and Conveyancing Processes

Your conveyancer or solicitor will play a key role once your property goes under contract. They handle:

• Title Searches and Documentation: Ensuring there are no encumbrances, caveats, or other issues with the title that might delay settlement.
• Drafting Settlement Statements: They’ll prepare a breakdown of funds, including adjustments for council rates, water charges, and any other relevant costs.
• Communication with the Buyer’s Legal Team: They’ll liaise with the buyer’s representatives to ensure both parties are prepared for settlement.

4. Preparing for Settlement

With all conditions satisfied, the contract is considered unconditional and moves toward settlement. Settlement is the official handover of the property, at which point ownership is transferred, and funds are exchanged.

• Final Inspection: Buyers typically have the right to a final inspection of the property (usually 1-2 days before settlement) to ensure it remains in the agreed-upon condition.
• Vacating the Property: Ensure you’ve moved all possessions out of the property (unless there is another agreed arrangement). The property must be left in a reasonably clean state, with any agreed repairs completed.
• Key Handover and Settlement Day: On the settlement day, your solicitor/conveyancer will handle the exchange of documents and funds. Once finalised, you’ll hand over keys and any remotes or relevant manuals to your agent or directly to the buyer’s representative.

5. What Could Go Wrong?

While most transactions proceed smoothly, unforeseen issues can arise, such as:

• Finance Delays: Buyers’ finance approvals may be delayed, potentially requiring an extension to the settlement date.
• Inspection Issues: Building and pest inspections might uncover unexpected issues, leading to potential renegotiations.
• Legal Matters: If title issues emerge, they must be resolved before settlement.

At Smyth RE, we work closely with all parties to minimise these disruptions, keep you informed, and ensure the best possible outcome.

6. Celebrating Settlement Day

Once settlement is complete, funds are distributed, and ownership is officially transferred. Congratulations—you’ve successfully sold your property! At Smyth RE, we celebrate this important milestone with you, and we’re always here to assist with any future real estate needs.

In Summary: Key Tips for Sellers

• Stay in close communication with your solicitor/conveyancer.
• Be prepared for potential renegotiations or adjustments during the conditional period.
• Ensure the property remains in the agreed-upon condition for the buyer’s final inspection.
• Trust your real estate agent to guide you and keep everything on track!

Selling a property can be complex, but with the right support and knowledge, it can be a rewarding experience. At Smyth RE, we’re with you every step of the way!

✅ Buyer Demand is Strong

The Gold Coast lifestyle is as appealing as ever. Buyers—both local and interstate—are actively searching for quality homes, and properties that are well-presented and well-positioned are generating strong interest and competitive offers.

✅ Low Stock, Less Competition

With fewer homes on the market, your property has a better chance of standing out. Less competition means more eyes on your listing—and potentially, a better sale price.

✅ Population Growth is Powering the Market

The migration from southern states continues, with families and professionals choosing the Gold Coast for its blend of beachside living and modern infrastructure. This demand is driving momentum in key lifestyle suburbs.

✅ Prices Are Holding Steady

Despite national headlines, many Gold Coast suburbs are holding their value—or even experiencing growth. Areas like Burleigh, Palm Beach, and Robina continue to perform strongly.

✅ Lifestyle Properties Are in Demand

Buyers are prioritising lifestyle more than ever. If your property features open spaces, natural light, proximity to beaches, or work-from-home options—it’s exactly what today’s buyers are seeking.

Let’s Talk About Your Property

At Smyth Real Estate, we’re seeing great results for sellers who are ready to make a move. A free, no-obligation appraisal can give you a clear understanding of what your home is worth in today’s market—and help you take the next step with confidence.

👉 Call us today or visit www.smythrealestate.com.au to book your appraisal.

If you’re looking to buy on the Gold Coast, the answer may very well be yes.

While the ideal time to buy always depends on your personal goals and financial situation, there are several market factors that make this moment especially promising for buyers.

1. Interest Rates Are Trending Down

February’s rate cut has been welcomed by both buyers and lenders. The average home loan rate now sits around 6.24% p.a. for owner occupiers, and major lenders are rolling out incentives such as:

• No application or ongoing fees
• Flexible extra repayments and redraws
• Annual rate discounts

These offers can significantly reduce the cost of your loan, making it more affordable to enter the market now compared to late 2023.

2. Your Borrowing Power May Have Increased

With interest rates falling, many buyers are discovering they can borrow more than they could just a few months ago. For the average buyer, borrowing capacity has increased by approximately $9,000 to $10,000 thanks to the lower cash rate—enough to bring a previously out-of-reach property into your price range.

Combine that with the Stage 3 tax cuts introduced in July and easing inflation, and many households are finding their financial position improving.

Want to know how much you could borrow? Get in touch with our team at Smyth Real Estate—we'll crunch the numbers for you.

3. Gold Coast Property Values Are Still Rising

Nationally, property prices are back on the rise, with February seeing a 0.3% increase across the board. Closer to home, the Gold Coast market remains resilient.

We’re seeing strong demand from both owner occupiers and investors, particularly in lifestyle suburbs like Burleigh, Palm Beach, and Labrador. Limited housing supply, interstate migration, and ongoing infrastructure investment are all contributing to sustained growth.

Delaying your purchase could mean paying more later.

4. Strong Rental Yields and High Demand

For investors, the Gold Coast continues to offer attractive rental yields. Vacancy rates remain low, and with population growth on the rise, the rental market is tighter than ever. This is particularly relevant for suburbs popular with young families and professionals.

Buying now means you can capitalise on rental demand and lock in a strong return.

Final Thoughts

Whether you’re looking for your first home, a family upgrade, or a solid investment, current market conditions are favourable. Interest rates are easing, borrowing power is increasing, and Gold Coast property remains in demand.

The best time to buy is when you’re ready. But if you're close, now could be the perfect window to make your move.

At Smyth Real Estate, we’re here to help you navigate your options. Reach out for a no-obligation chat—we’ll guide you through suburb insights, and the steps to secure your next property.