property guide 2009 - Domain.com.au

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HOUSES PREVIEW Ready, set, go: it’s a race full of first-timers Government handouts will have a big influence on the market this year, writes Susan Wellings. Photo: Lee Besford A VETERAN sprinter is offering a $10,000 discount on his house to any buyer, preferably a first home buyer, who can outrun him. Another owner is pledging upwards of $60,000 to charity if he manages to sell his land. Vendors are taking their home off the market when it fails to sell, adjusting the price and then returning as a ‘‘new’’ listing in the hope of attracting the more naive of the firsttimers. With only the first-timers’ market showing much movement in Sydney going into 2009, tricky times can prompt sellers to use some unusual tactics. And even when things don’t go exactly to plan, they often still manage to stand out from the rest of the crowd. ‘‘I’vehad alot ofbadpublicity overthis,’’ saysTony Gallagher,whoseassertion thathe woulddonate someoftheproceeds fromthe $2million saleof145 hectaresofland inthe CentralTablelands totheMS Society was challengedby atelevisioncurrent affairsshow. ‘‘But since there’s been all that carry-on on TV – and yes, I am going to give the money to charity – I’ve had so many calls from people interested in buying. ‘‘There’s even a mob of investors from the US who’ve been calling. Even bad press has helped me get noticed.’’ TOUGH TIMES Yet with only the first-timers particularly active, even having the the most desirable property in the swishest location is no guarantee of a sale these days. Latest research by analysts Australian Property Monitors predicts that two of Sydney’s most affluent areas are set for a tough year. Mosman, they say, is due for a 14 per cent fall, after already enduring a 3 per cent fall in its median price to $2.1 million in 2007-8. Bellevue Hill, another prime spot with a higher current median house price of $3.07 million, is due for a 13 per cent slump. READY TO BUY Newlyweds Dionne and Jesse Wilson have just returned from a two-year trip to Europe and are determined to buy a house of their own in Sydney. After a chilly British autumn, they’re eager to build a life for themselves somewhere in the west, close to Dionne’s family. ‘‘I met Jesse in the UK and he’s originally from the Caribbean so he likes the weather here,’’ says Dionne, 23. ‘‘We’re now looking for a three-bedroom house somewhere around Old Mount Druitt, Oakhurst or St Clair, as we’d like to start a family in the next few years.’’ ‘‘With the first home owner grant and falling interest rates, our financial adviser told us it’s the perfect time to buy. It’s all very exciting.’’ Only western suburbs such as North St Marys (median of $229,000), Colyton ($275,000) and further out like Londonderry ($531,500) will do – proportionately – anywhere near as badly. North Shore agent Nicole Grady left a Mosman agency specialising in premium property late last year to work with lessexpensive homes in the same area. ‘‘I saw the top end of the property market coming to a grinding halt but saw the bottom end was still moving,’’ says Grady, now with Raine & Horne in Neutral Bay. ‘‘I had to move to the lower end, where the market is still active, in order to keep generating an income. That market, with people buying houses [for] $1 million- $2 million and upgrading from apartments, will, I think, go very well over the next year.’’ Houses in the North Shore area tend to be out of the price bracket of first home buyers and are missing out on the burst of activity With our Advantage Home Loan Package you’ll not only get ahead, you’ll stay ahead too. You get a fantastic 1.5% p.a. discount off the Standard Variable Rate for the first 12 months* and from the second year onwards you’ll enjoy our home loan package interest rate discount. And you won’t pay any monthly fees^. So the savings just keep coming. Stay ahead, contact us today. *^Conditions apply – see back cover for details. St.George Bank Limited ABN 92 055 513 070 AFS Licence 240997. CAQ0212/3 8 THE SUN-HERALD PROPERTY GUIDE 2009 DOMAIN.COM.AU
the grants have brought to other regions. In the west, despite some dire predictions of price falls, agents aren’t particularly pessimistic. They see first-timers providing their salvation – and driving Sydney’s southwest into something of a recovery. A sales consultant with Response Real Estate in Penrith, Stephen Golab, says: ‘‘In this area we have many houses priced at $250,000 to $350,000 and the level of inquiries, particularly from young first home buyers, is astronomical.’’ ‘‘We’re going to be very busy for the first six months of this year but the immediate problem is building confidence in sellers to put their homes on the market. At the moment, buyers far outweigh the number of sellers and it’ll be interesting what the economy is like if the Government stops the grant in June.’’ Investors are also back in the west, lured by low interest rates, high rents and the stillteetering stockmarket. ‘‘Now 25 per cent of inquiries are from investors,’’ Golab says. ‘‘Spending $250,000 wisely can bring $300 a week in rent, which comes very close to servicing the loan.’’ BEST GROWTH PROSPECTS It’s a similar situation in the south-west, which APM says has Sydney’s best pricegrowth prospects this year. Median prices in areas such as Moorebank, Regents Park and Cecil Hills are forecast to rise by 9 per cent. That’s a direct result of first home buyer activity, according to the chief executive of The Realty Group in Liverpool, Andrew Bodnar. ‘‘This is the area that got hurt the most by interest rate rises before,’’ he says. ‘‘We saw the highest rate of mortgagee sales and had prices fall 20 per cent to 30 per cent to 40 per cent. So we have some of the cheapest property around, particularly for the first home buyer, so it’s only natural we’ll see some price recovery. That’s why this area will grow.’’ Up to 80 per cent of his sales are to first buyers: tenants becoming owners and people coming from other areas to buy. There’s also been an increase in the number of investors, who are currently making up 25 per cent of inquiries, says Bodnar. In the inner west, the areas that will fare the best this year will be those closest to the city, such as Glebe, Ultimo, Pyrmont, Petersham, Lewisham and Stanmore, according to the principal of Planet Properties, Rosalie Gordon. Most of the east will generally weather the financial storms, says McGrath’s Simon Exleton. ‘‘Property in the eastern suburbs is generally pretty resilient,’’ he says. ‘‘Although now there’s generally one to PREDICTIONS HOUSES Best performing Suburb (% change) Moorebank Regents Park Cecil Hills Prestons Glenfield Warwick Farm Hinchinbrook Green Valley Lurnea Sadleir Ashcroft Busby Last year 1 -5 -3 -2 1 -5 -1 0 -3 1 4 -6 This year 9 9 9 9 9 9 9 9 9 9 9 9 SOURCE: AUSTRALIAN PROPERTY MONITORS Worst performing Suburb (% change) Mosman Bellevue Hill Londonderry Richmond Cambridge Park Oxley Park St Marys Erskine Park Bowen Mountain Cambridge Gdns St Clair Hobartville Colyton North St Marys two buyers for each property rather than three or four, there’s still a lot of activity as people’s circumstances are always changing and people downsize, upsize, move closer to the water, shift towards the city. ‘‘It’s a pretty good opportunity to sell and buy a bigger place in the same market.’’ That’s true for John Wall, 62, who bills himself as the world’s fastest senior sprinter. He’s offering a $10,000 discount off the $419,000 asking price of his three-bedroom Central Coast house at Shelly Beach for any buyer who can beat him over 100 metres. ‘‘I think, as Australians, we have to give others a hand and this was one way of doing it,’’ says Wall, who is selling his property through Greg Wild Real Estate (0412 911 171). ‘‘I want to give others a chance to get something for nothing. And first home buyers in particular need a helping hand.’’ Last year -3 10 -9 -8 -1 -2 1 -5 1 11 2 -3 -1 -10 This year -14 -13 -13 -13 -13 -13 -13 -13 -13 -13 -13 -13 -13 -13 TAKING THE PLUNGE After buying three houses and an apartment as investment properties, Rebecca Broughton, 32, and her husband Andrew, 34, have finally decided that 2009 will be the year to buy their first home. ‘‘With interest rates coming down, we can make the next step that we couldn’t afford to do in the heat of the market," says paralegal Broughton. ‘‘Now we’re looking to buy a house for ourselves to live in. It’s so different!’’ The couple, with daughters Taylor, 8, and Madeleine, 5, are now looking for a three-bedroom terrace with, hopefully, a courtyard, close to the inner city. ‘‘We want to be close to the city and not far from the airport and beaches, as well as having the lifestyle,’’ says Broughton, currently renting in Randwick. ‘‘Now feels the perfect time to buy a home.’’ Photo: Janie Barrett Stay a step ahead. After the first year you continue to save with our great package interest rate discount. visit a branch we come to you 1300 667 921 stgeorge.com.au/getahead DOMAIN.COM.AU THE SUN-HERALD PROPERTY GUIDE 2009 9
Page 1 and 2: PROPERTY GUIDE 2009 WHAT YOUR HOME
Page 3: An invitation to build your wealth
Page 7: Get 1.5 steps ahead. 1.5 % off p.a.
Page 11 and 12: Auburn Council for a name change to
Page 13 and 14: LOWERNORTH SHORE Perfect time for u
Page 15 and 16: LOWERNORTH SHORE LANE COVE RANK 125
Page 17 and 18: UPPERNORTH SHORE High hopes riding
Page 19 and 20: UPPERNORTH SHORE Phenomenal Success
Page 21 and 22: UPPERNORTH SHORE MARSFIELD RANK 256
Page 23 and 24: UPPERNORTH SHORE The only 1 to cons
Page 25 and 26: NORTHERN BEACHES ALLAMBIE HTS RANK
Page 27 and 28: EASTAND INNERCITY Outlook is bright
Page 29 and 30: EASTAND INNERCITY HILLSDALE RANK 30
Page 31: EASTAND INNERCITY TAMARAMA RANK 5 M

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