What to do in the lead up to Christmas

We have been receiving many enquiries with our clients on what they should do in the lead up to Christmas and the festive season.

Is it a good time to place my property on the market for sale?

Perths property market has been on the decline since November 2015, Perth and other cities are seeing more buyers out in the market looking for their dream home or investment property to purchase. It is definitely a great time to buy prior to Christmas as you will be able to achieve a great property purchase and at a competitive price.

In the up and coming months after Christmas and the New Year the property market will begin to move a little faster and this will possibly reduce the chance of achieving that bargain you are looking for as there will be more properties coming on the market for sale with the sellers taking advantage of the fine weather and summer months.

Is it a good time to look for a new Tenant for our investment Property?

The rental market is very strong at the current moment and this is the prime time to have your property ready to place the right tenants in your investment property. In the lead up to Christmas your Tenants wish to be settled in before Christmas and the New Year so the can enjoy this festive time with out the hassles of moving and unpacking. Rents are competitive with more than 4 to 5 applications coming in on properties on the one day, providing a better choice to the Landlord and enabling you to have the right person or family for your home.

Australian Rental Market Declines !!

Rents across the nation fell 0.2% during the 12 months to April, sending yields to record lows, according to Core Logic’s monthly rental review.Flick

Rents rose 0.1% for the month of April, but the rise was not enough to counter falls throughout the year.

The result is in line with recent inflation data, which showed prices in general were weaker in the March quarter, sparking fears we could be entering a period of declining prices.

Five of the country’s eight capital cities saw rents rise over the last 12 months, but Perth and Darwin experienced large declines in rent, sending the overall indicator lower.

The results were as follows:

– Sydney +1.4%

– Melbourne +1.7%

– Adelaide +0.5%

– Hobart +1.1%

– Canberra +2.5%

– Brisbane -0.6%

– Perth -8.9%

– Darwin -12.6%.

The national rent was $490/week for houses, and $467/week for units across all capital cities.

Research analyst Cameron Kusher said he expects rent growth will remain subdued.

“We anticipate that the weakness in the rental market will persist over the year and rents will continue to fall over the coming months. The annual change in rental rates continues to be at its slowest pace since before 1996,” he said.

“At the same time last year, rental rates increased by 1.7% which indicates a sharp slowdown in rental growth over the past year.”

Slower wage growth, excess supply and slower population growth were all keeping rents down.

“Factors contributing to a slowing in rental growth include falling real wages, excess rental supply in certain areas and lower rates of population growth – all of which have impacted on demand for rental accommodation.

“With dwelling approvals at recent record highs and construction activity set to peak over the next 24 months, accompanied by many new properties still to settle, we anticipate that the weak rental market conditions will persist with rental growth continuing to slow and, or, fall in most capital cities,” he said.

“Based on current market conditions, landlords won’t be in a position to lift rental rates and may actually need to reduce rents in order to keep their tenants. We see renters as holding a stronger negotiation position and where they now have the potential to upgrade into higher grades of accommodation for a similar, or lower rents.

The data shows that Canberra is the only capital city where rental growth is stronger now than it was a year ago.

With rental rates increasing in some cities in April, rates in Sydney, Adelaide and Hobart are at record highs. In Melbourne, Brisbane, Perth, Darwin and Canberra, rents are down from record highs.

The results show that as home values outpace rents, gross rental yields are trending lower, hitting record lows of 3.3% for houses and 4.2% for units.

In our two largest capital cities, we’ve seen rental yields move to record lows of 3.1% for houses and 4.0% for units in Sydney and in Melbourne, rental yields are at a record low 2.9% for houses and 4.0% for units.”

A Transitioning National Economy

The slow growth of incomes, a transitioning national economy and increased housing supply are set to lead to a slowdown in capital growth across Australian real estate in 2016 according to research released yesterday.

The Australian Forecast Home Value Index, developed in partnership between CoreLogic RP Data and Moody’s Analytics, predicts Australia’s housing market will see a national rate of growth of 3.66% through 2016, with no individual market to see capital growth hit double figures.

Nationaly housing values increased by 9.12% over 2015.

The index predicts Melbourne will be home to the strongest rate of growth this year, with values expected to grow by 7.16%, followed by Hobart at 6.61%.

After increasing by more than 14% in 2015, Sydney’s growth rate is predicted to plummet to just 2.24% this year.

The index predicts it will be at least another 12 months before a recovery is seen in Darwin and Perth, with further price falls of 1.68% and 0.05% predicted for the respective cities.

“On the outlook for the housing market nationally, we expect house price appreciation to slow in 2016. Our forecast reflects lower income growth as the Australian economy transitions away from mining-related investment, as well as the strong build-up of housing supply over the past two years,” Moody’s Analytics economist Alistair Chan said.

“Nevertheless, accommodative policy, robust rental growth, and a recovering labour market are expected to support valuations over the medium term,” Chan said.

The Index predicts the national rate of growth will slow further in 2017, down to just 2.77%, with Melbourne to see the largest drop-off, as it capital growth slows to just 1.31%.

Source: Moody’s Analytics/CoreLogic

While Melbourne is expected to lose its crown as the strongest performing market, speaking at the launch of the research CoreLogic research head Tim Lawless said the slowdown is a necessary occurrence for the city.

“It’s a good news story in the sense we’re not seeing Melbourne values crashing,” Lawless said.

“The good news story is that we’re seeing a controlled descent in the rate of growth after such striong growth conditions… [You] can’t expect dwelling values to keep on rising by 10 or 11% per annum indefinitely in a time where household incomes aren’t moving, he said.

Lawless’ claim the slowdown is appropriate for Melbourne may be tied to the fact that Moody’s Analytics claims the Victorian capital is the most overvalued in the country.

“As of February 2016, house prices nationwide are 5.9% overvalued relative to fundamental values. The biggest driver of this overvaluation is the housing market in Melbourne, which is more than 23% above the Moody’s Analytics estimate of fundamental value. House values in Melbourne have appreciated far beyond what income and rental growth suggests is appropriate,” Moody’s Analytics said.

Source: Moody’s Analytics/CoreLogic

“This underlines the Moody’s Analytics forecast that Melbourne’s housing market is set for aperiod of near-stagnation while incomes, rents, and the employment market catch up with actual housing values.

“House prices in Sydney are closer to fair value than Melbourne’s, although they are still 9.5% overvalued in aggregate. This smaller estimate of overvaluation is the result of Sydney’s stronger employment market.”

The property market in Perth has become very buoyant over the past 4 months with the majority of our properties selling over the asking price and also in record time. For example 3 of our homes sold this month prior to the home open and well over the selling price. This has made our clients very happy allowing them to make the right decision of settling the property before or after christmas and also providing them with the flexibility of purchasing a home when they wish to and not having to rush into it.

The property management department has been very steady with an increase on our investors beginning to enquire about purchasing another property to increase their portfolio base and with our affordable management fees we are able to provide them with a great service. Our affordable property management fee of 6.6%  allows the clients a larger profit margin on their investment whilst being managed by a agency.


The real estate market is beginning to pick up in 2013.
CEO Mike Wilding of Flick Realty would like to provide the sellers with some top tips to sell their home at
the best price.
1   Gardens are the first thing a new buyer will see when they arrive at your home. The best tip is to have your front and rear gardens in top notch, manicured and mulched.
The presentation of the gardens can effect your buyers impression of the home from start to finish and as we know “first impressions last”

2   The inside of your home is the place to capture your buyers heart to make that emotional commitment. A home that presents neat, tidy and open with no clutter can provide a 10% increase in the selling price. A few tips are to open the living areas up by removing any bulky furniture, repair any damaged walls with a fresh coat of paint, clean the carpets, windows and blinds giving your home the finished “wow” factor and homely feel.

3   The kitchen is the heart of the home which needs to be designed to suit all occasions from entertaining guests to relaxing after work and cooking for the family. A fantastic kitchen will provide your buyers with a feeling of warmth and usefulness. A well-designed kitchen and meals area is essential and can be a make or break decision at the time of the buyer making an offer on the home. The best tips are to replace rusty taps, damaged bench tops; old cook top or oven and replace with something modern and stylish. A small financial investment can provide a healthy return.

4    The bathrooms are the next place where your buyers will be looking carefully, A torn shower curtain or dirty glass shower screen can make all the difference of your buyers opinion to the presentation of the home.

5   Last but not least make sure the home is smelling nice with some coffee beans in the oven, Bake a loaf of bread or even pop a roast in the oven. These ideas allow the aroma of fresh cooked food to drift through the home, giving the property the sense of being a real family home. With these quick tips and more professional
advise Flick Realty can help you sell your home with a Capped Selling Fee of $6950

A change in the market place

Perth’s real estate market may be on the move and start to benefit the sellers and the sales process of their home, we have noticed over the past few months, the homes on the market for sale are having more buyer inquiries and a quicker sales process. This could be the beginning of the market changing to a sellers market rather than a buyers market which i am sure will be a pleasant surprise. The rental market is also showing signs of slowing down with some suburbs being flooded with rental properties available for lease. In some circumstances the monthly rental amount is fairly close to a monthly mortgage payment allowing the tenants to be a first home buyer and take advantage of the Government grants. There has also been a increase in the new homes building sector of the market and we have noticed some tenants buying a new home allowing more rental properties becoming vacant.

With spring on its way and the nice weather coming we are confident the home seller will be in a great position to place their home on their market for sale with confidence.

Flick breaks Records

Flick realty would like to thank everyone who placed their property on the market with the Company recently and helped Flick to have it’s “highest monthly sales” in May this year.

It goes to show that a property which is listed for sale at the correct price and having the correct marketing will sell even when the market is not performing at it’s best. With our extra sales staff and expanding Property Management Department Flick is obviously going in the right direction.

We feel having a good knowledge of all areas has been a immense help in placing these homes on the market at the correct market price, which goes against the normal practice of going with the “Local Agent” said spokesperson Garry Fife.

Flick Has Arrived

Pricing Your Home For Sale Or Rent

Here are a few tips on pricing your home for sale within the market today and taking into consideration of the current market conditions. As you are probably aware Perth’s sitting in a situation where home buyers can pick and choose the best properties on the market and then place offers in and pick up a bargain or purchase a home a little cheaper than the marketed price.

Many clients have been asking Flick Realty the big question of do I sell my home or rent it out until the market picks up.
Well there is no real answer to this as both options have their pros and cons as a seller, the real estate market is benefiting the buyers at the moment allowing them to purchase a home at a good price as most suburbs have a good variety of properties for sale.
Flick Realty has found the homes going on the market for sale at market value are selling within a 6 week period and homes over market value are taking up to 4 months to sell,  should you be looking at selling make sure the real estate agent has priced the home correctly and the seller will reap the benefits of a great sale of their home.

Flick Realty has had a few recent property sales where the home have come on just under market value and received offers on the home up to $30,000 more than the asking price. This is cleaver marketing and allows the company to structure the sale to the benefit on the seller and providing them with a higher return on their money and a very happy seller.

Whilst the rental market is very buoyant with only an approximate 2% vacancy rate in Perth at the moment we have found potential tenants are placing applications above the rental asking price and the property management department has found there can be up to 40 clients viewing the homes in some areas of the city. Naturally with a shortage of rental properties in the market, rental incomes are pushed up higher on the homes, making it harder for the tenants to find a available rental at a affordable price.

Placing your property on the rental market and leasing it out through Flick Realty Property Management Department or a well established real estate can provide you with the benefits of a stress free tenant, allowing you to keep your property as a investment and wait for the sales market to catch up. Be sure you have a chat to your accountant prior to making this decision to place your home on the rental market.