Many of these people entering the area are struggling to secure rental accommodation as there is a shortage of new developments given the lack of available land and recent developer reluctance.

The first home buyer incentives offered by the NSW State Government in recent times have also had a role to play with a number of investment properties being sold for good prices to first home buyers, thereby further reducing the stock of available rental accommodation.

As a result of these circumstances vacancy rates are extremely low. The vacancy rate for the Pittwater LGA is currently just 1.2%. This means that at any given moment only 1.2% of the total number of rental properties situated in the Pittwater LGA are available for rent.

Rental properties no sooner hit the market and they are snapped up by desperate tenants who on many occasions are offering to pay more than the asking rental in order to secure the property. Things are that desperate out there at the moment.

This growth in population and shortage of supply of rental properties has resulted in strong rental growth over the past few years. For example, the Pittwater LGA median rent increased by 12.1% in the 12 months to September 2010 and that upward trend continues.

Investors should give serious thought to investing in local residential property given the prevailing market conditions and the rest of us should spare a thought for those who are struggling to find a place to live!

John Gavagna

john@residentialagents.com.au

www.residentialagents.com.au

1. Budget: Consult your accountant/financial advisor to work out whether you can afford to buy a home and then prepare a budget including the purchase price, stamp duty, legal fees, mortgage expenses, moving expenses etc.
2. Loan approval: Obtain a loan pre-approval through your finance broker or bank before you go shopping so you know exactly how much you have to spend.
3. Wish list: Make a list of the features in a home you need and want and prioritise them in order of their importance as every purchase involves compromises.
4. Market research: Research the market as thoroughly as possible by searching suitable properties on the Internet, in local and metropolitan newspapers, by driving around your target suburbs and looking at for sale signs, and by speaking with local real estate agents who can assist you with your search.
5. Inspections: Inspect as many homes as possible, conduct a thorough physical inspection of properties you are serious about and make notes on a #homebuyer’s checklist like the one produced by the NSW government that can be downloaded at www.housing.nsw.gov.au on the ‘home buying and building’ page.
6. Legal advice: Obtain a copy of the contract for sale for each property and obtain detailed legal advice from your solicitor/conveyancer.
7. Local council: Check improvements on the property are council approved, and check the development possibilities for the subject property and neighbouring properties as future developments may impact the value of the property (e.g. a second storey on a neighbouring house might block your water view).
8. Negotiate: Make offers on your preferred property or properties and negotiate offer and acceptance subject to obtaining a satisfactory building and pest report, a survey of the property if a recent one is not included in the contract, and/or a strata report in the case of strata properties.
9. Expert reports: Obtain those expert reports and read them thoroughly to avoid buying any ‘surprises.’
10. Exchange contracts: If all is in order then sign the contract and instruct your solicitor/conveyancer to arrange an exchange of contracts on your behalf.

John Gavagna

john@residentialagents.com.au

www.residentialagents.com.au

We are indeed very fortunate to live in such a wonderful part of the world but living here does come at a cost whether you are a home owner or living in rented premises.

An average house in #Pittwater today will cost you the best part of one million dollars!

The median sale price for single residential dwellings (i.e. free-standing houses) in the Pittwater Local Government Area for calendar year 2010 was $988,000.

Looking at individual suburbs Palm Beach tops the list with a median house price of $2,485,000 and at the other end of the spectrum North Narrabeen is more affordable with a median house price of $832,600. The #median house price for #Mona Vale was $942,500.

Scarcity of supply and the desirability of the area combine to produce these million dollar median house prices. Apart from the proposed land release in Ingleside by the New South Wales State Government there are very few new home sites being made available in Pittwater

Following the Global Financial Crisis residential property prices tumbled in many countries however median house prices in Pittwater, in “God’s country”, have weathered the storm exceedingly well by comparison.

john@residentialagents.com.au

www.residentialagents.com.au

If you are just curious about what your home is worth or if you are planning on selling a real estate agent can provide you with a ‘market appraisal’ which is an estimate of the likely selling price of your property in the current market.

When preparing a #market appraisal an agent will have regard to prevailing market conditions, recent sales of comparable properties, and similar properties currently for sale in the immediate local area.

In most cases real estate agents make it their business to know the values of properties in your area and will have a fairly accurate idea of the likely selling price of your property.

If however there are significant discrepancies between the market appraisals provided by the real estate agents you interview it might be worth paying a registered valuer to provide you with a formal #valuation of your property.

The important difference between a market appraisal and a valuation is that registered valuers get paid for providing you with the valuation, whereas real estate agents only get paid if and when they sell your property (which encourages some agents to inflate their appraisal of your home to secure your business).

Regardless of the path you take you would be well advised to carry out your own investigations which would include analysing recent sales data and inspecting comparable properties currently for sale in your area. In doing so it is important to be as objective as you can be in determining which other properties are ‘comparable’ to your property as you need to be comparing ‘apples with apples.’

Your home like any tangible asset is ultimately worth what a willing and able purchaser is prepared to pay. Therefore, whilst there are several ways to estimate the value of a property they remain ‘estimates’ until such time as you go to the market and secure an actual sale.

John Gavagna

office@residentialagents.com.au

www.residentialagents.com.au