From: The Adviser 30/6/10
Spring no longer represents the best time to sell, according to RP Data.
New research from RP Data has found evidence to suggest that a great number of listings does not necessarily convert into a great number of sales.
RP Data’s research analyst Cameron Kusher found that, on a national basis, March is in fact the busiest month for house and unit sales.
Nationally over the last 10 years, March accounted for circa 9.3 per cent of all dwelling transactions.
“Despite the fact that March is the busiest month for sales, the results show that there is minimal fluctuation in sales activity except within December and January when sales volumes fall away considerably,” Mr Kusher said.
“Clearly once everything starts to settle down after year-end festive periods, the attention turns back to the property market resulting in strong sales volumes during March.”
According to Mr Kusher, May is the second busiest month for sales, accounting for almost 9.2 per cent of all transactions.
The results also confirm that spring is only the second busiest season for purchasers with autumn attracting 26.6 per cent of all sales compared to: 25.4 per cent in spring, 25.3 per cent in winter and 22.7 per cent during summer.
Mr Kusher said that although there is a ramping up in listings from August through to November, the increase in listings is not matched in sales activity. The strongest increase in sales activity is recorded between January and March each year at which time listings also ramp up.
Small- to medium-size investors have been hit hard over the past two years, yet they remain the mainstay of the property sector.
These folk – and most of them are small investors – consist not only of business people who open their doors in the wee hours to serve coffee to those in early-riser industries and stay up late to cater for the increasingly moveable working hours of office staff and late-night shift workers.
They also have to function in a sector that has to cope with many new tax imposts, huge amounts of paperwork and deal with the demands of the public daily .
Despite all this, they continue to display a strong appetite for buying shops, particularly the high-exposure properties favoured by well-known fast-food tenants.
Buying such sites is providing investors with good returns, thanks to our lifestyle demands for quick and easy food at reasonable prices.
While many people have their superannuation funds in the hands of listed trusts, owning a plot of land other than the family home – to help counteract the hardships that go with running a small- or medium-sized business – is an attractive option.
One of the most popular sectors for real estate investment is retail – whether it is a family-run coffee shop or a larger restaurant.
Buying a franchise is another form of investment that has grown in popularity in the past two years.
More than half the new owners of such property investments are people who have lost their jobs or opted for a new direction.
The investment gives property owners stability as they have a set, usually long-term tenant.
Buying a franchise also allows flexibility since the owner can open the business in many parts of the country if they decide to leave the city for a lifestyle change.
Researchers at the real estate firm Savills say $421 million worth of retail shops changed hands nationally in the year to March in 97 deals.
While this is down slightly on the $455 million in sales in the year to March last year, it shows small retail shops have continued to generate strong activity over the past two years.
Among the most popular retail shop investments are those tenanted by prominent national and international food retailers such as Hungry Jack’s, Red Rooster, Krispy Kreme, Starbucks and 7-Eleven. In recent months Savills has sold 12 Hungry Jack’s properties in South Australia for a total of more than $23 million.
The divisional director of Savills South Australia, Steve Bobridge, said 12 properties were bought by private investors, with yields ranging from 5.67 per cent to 8.17 per cent.
“Hungry Jack’s occupies prime sites with long-term leases, which provides all the necessary ingredients that private buyers are seeking for secure investment.”
In NSW a number of Hungry Jack’s sales have been recorded, including an outlet at Tweed Heads that was sold on a yield of 5.84 per cent. A Red Rooster outlet at Jamisontown, west of Sydney, was sold on a yield of 6.73 per cent.
The divisional director for sales and leasing with Savills NSW, Robert Lowe, said there was strong buyer demand for fast-food properties underpinned by long-term leases. “Security of tenure is what investors are looking for and the longer the lease terms the better.”
Savills Victoria has recently had strong buyer interest across all prominent food-tenanted properties, with sales including a Krispy Kreme outlet for $2.10 million at 5.14 per cent yield and a Starbucks for $2.90 million at 4.27 per cent yield.
Small- to medium-size investors have been hit hard over the past two years, yet they remain the mainstay of the property sector.
These folk – and most of them are small investors – consist not only of business people who open their doors in the wee hours to serve coffee to those in early-riser industries and stay up late to cater for the increasingly moveable working hours of office staff and late-night shift workers.They also have to function in a sector that has to cope with many new tax imposts, huge amounts of paperwork and deal with the demands of the public daily .
Despite all this, they continue to display a strong appetite for buying shops, particularly the high-exposure properties favoured by well-known fast-food tenants.Buying such sites is providing investors with good returns, thanks to our lifestyle demands for quick and easy food at reasonable prices.
While many people have their superannuation funds in the hands of listed trusts, owning a plot of land other than the family home – to help counteract the hardships that go with running a small- or medium-sized business – is an attractive option.
One of the most popular sectors for real estate investment is retail – whether it is a family-run coffee shop or a larger restaurant.Buying a franchise is another form of investment that has grown in popularity in the past two years.
More than half the new owners of such property investments are people who have lost their jobs or opted for a new direction.The investment gives property owners stability as they have a set, usually long-term tenant.Buying a franchise also allows flexibility since the owner can open the business in many parts of the country if they decide to leave the city for a lifestyle change.
Researchers at the real estate firm Savills say $421 million worth of retail shops changed hands nationally in the year to March in 97 deals.While this is down slightly on the $455 million in sales in the year to March last year, it shows small retail shops have continued to generate strong activity over the past two years.
Among the most popular retail shop investments are those tenanted by prominent national and international food retailers such as Hungry Jack’s, Red Rooster, Krispy Kreme, Starbucks and 7-Eleven. In recent months Savills has sold 12 Hungry Jack’s properties in South Australia for a total of more than $23 million.The divisional director of Savills South Australia, Steve Bobridge, said 12 properties were bought by private investors, with yields ranging from 5.67 per cent to 8.17 per cent.”Hungry Jack’s occupies prime sites with long-term leases, which provides all the necessary ingredients that private buyers are seeking for secure investment.”
In NSW a number of Hungry Jack’s sales have been recorded, including an outlet at Tweed Heads that was sold on a yield of 5.84 per cent. A Red Rooster outlet at Jamisontown, west of Sydney, was sold on a yield of 6.73 per cent.
The divisional director for sales and leasing with Savills NSW, Robert Lowe, said there was strong buyer demand for fast-food properties underpinned by long-term leases. “Security of tenure is what investors are looking for and the longer the lease terms the better.”
Savills Victoria has recently had strong buyer interest across all prominent food-tenanted properties, with sales including a Krispy Kreme outlet for $2.10 million at 5.14 per cent yield and a Starbucks for $2.90 million at 4.27 per cent yield.
(Source: By CAROLYN CUMMINS, June 21, 2010)
Source: The Adviser By: Jessica Darnbrough
In a bid to make buying a house in Sydney that little bit easier, the NSW government has announced that it will no longer charge stamp duty on homes that are “bought off the plan” for less than $600,000.
The change in state policy will cost the NSW government approximately $184 million in lost property taxes.
Stamp duty will be cut by 25 per cent on homes worth up to $600,000 that are bought during construction or at completion, translating into an average saving of $5,623.
The stamp duty changes are expected to be widely welcomed by NSW buyers, as 79.1 per cent of dwellings within the state are sold for under $600,000.
In addition, the government has also introduced other concessions on new home purchases and construction.
NSW Treasurer Eric Roozendaal said the $140 million property construction initiative will save NSW families and investors up $22,490, with first home buyers eligible to receive benefits of up to $29,490.
“This is an Australian-first, signalling the Keneally government’s commitment to boosting the state’s housing construction sector and building for the future of NSW,” Mr Roozendaal said.
NSW building industry body the Urban Taskforce said the government’s latest announcement shows a clear understanding of the need to increase housing supply in NSW.
“This plan is comprehensive – it offers real hope for homebuyers and renters,” Urban Taskforce chief executive officer Aaron Gadiel said.
According to Mr Gadiel, the targeted stamp duty concession is also a welcome message of support to older Australians and will help industry focus on meeting their housing needs.
“When older Australians make the decision to downsize, they will also be freeing up underutilized existing housing stock which can be occupied by younger families,” he said.