Domain is back with its “Australia’s number one property app” adverts, but it’s taken five months for the property site to fire back, following a battle with News Corp which ended in Federal Court action.

From “advertising puffery” to simply “misleading ads”, the Fairfax vs News Corp property war ended in February with both sides claiming certain victories.

ADVERTISING

The saga commenced a year ago when publicly listed REA Group, which is majority owned by News Corp, alleged that its property listings rival, Fairfax-owned Domain, had breached Australian Consumer Law by publishing adverts that were misleading or deceptive.

REA’s complaints related to claims that the Domain app has the number one property app in Australia; the most property listings in Sydney; the best property listings in Melbourne, and to claims the Domain app is Australia’s highest rated property app.

In broad summary of two of the ads, Federal Court Justice Bernard Murphy said evidence showed the Domain app and website did not have more property listings overall in Sydney than the REA app and website ‘at the relevant time’.

Domain is now back with the slightly tweaked advert, with its chief editorial and marketing officer Melina Cruickshank taking to Instagram at the weekend to say “Federal Court Case later and our campaign is back. Australia’s number one property app was worth the fight” (above right).

At the time of the court case, Justice Bernard Murphy said one of these ads, a front page wrap-around on The Sydney Morning Herald (below) falsely implied Domain had the most listings in Sydney and the caveats on newspaper ads were too small for readers to easily find.

Speaking to AdNews, Cruickshank says: “Both REA and Domain had a good tussle in court. Justice Murphy ruled the #1 Property App ad wasn’t misleading. There is enough room for two strong Australian businesses in the real estate market and everything we do is in the spirit of friendly competition.”

Despite two of the six breaching rules, he said the remainder of the claims were not misleading or deceptive, broadly because they amounted to “advertising puffery”. See Federal Court case ends REA and Domain feud.

Old ad: Domain’s wrap-around which was deemed misleading

In February Fairfax Media confirmed it plans to split out Domain into its own entity to maximise shareholder value as the media company’s print ad revenue continues to decline at a rapid rate.

Domain posted revenue growth of 5.8% to $162.9m in the six months to 31 December 2016. This was driven by 15% growth in digital revenue to $114.3 million, while print revenue was down 11% to $48.6 million.

Last week Fairfax said it had ceased discussions with both private equity firms TPG Capital and Hellman & Friedman. Following the receipt of the two separate proposals this year, the Fairfax board granted both parties access to confidential due diligence to explore whether a whole company proposal was available. However, in an announcement on the ASX, the publisher says there was no certainty a proposal would result in an offer and now, as it has not received a binding offer from either party, it has “ceased discussions with both parties”.

Posted in LJ Gilland Real Estate Pty Ltd

Home ownership is still viewed in our country as something that all Australians should and, in fact, must aspire to. And for some of us when we do the maths it may still make great financial sense.

The advantages of renting over home ownership

A few years ago I conducted some research for a book I was writing and was surprised to discover that the top two things we want from our money are freedom and options. The reason I was surprised is because I expected ‘owning my own home’ would top the list but it seems while that’s important (it was number three), above that sat the freedom to have options.

The reason I was taken aback by the findings, is because for many of us, while we might be giving lip service to wanting freedom and options, how we’re behaving with our money tells quite a different story.

Perhaps it’s because home ownership is such a deeply ingrained part of our culture. Perhaps it’s because many of us feel home ownership is a rite of passage and we haven’t truly grown up if we don’t own our own home. Or perhaps it’s because we believe home ownership fills the need to provide a safe and secure place for our family. Whatever the reason, I’m finding that our behaviour when it comes to bricks and mortar is in opposition to our strong desire for freedom and options.

That’s because more and more, as a financial adviser, I’m seeing couples who are seeking a mortgage of over a million dollars to secure the home of their dreams. Which, with interest rates as they are, can mean that mortgage repayments, in some suburbs at least, are very similar to the rent being paid. But too often I’m hearing arguments that interest rates will stay low for years and even decades to come and property prices will only continue to rise, which are dangerous suppositions to hold as truths.

Instead, if we truly believe that freedom and options are to be valued, yet can’t fight against our primeval need to own bricks and mortar, then perhaps we should consider an alternative to owning our own home which can give you all three things: freedom, options plus house ownership. Currently, the federal Labor party are suggesting that this option be removed for existing houses, but if the laws remain unchanged, this can still be a viable alternative which allows you to have your cake and eat it too.

So if you crave freedom and options but are fighting against the need to put down roots and buy your own home, here are a few reasons why you might consider an alternative.

1.       Negative Gearing. The current tax law allows you to claim the shortfall between interest, expenses and income earned on a rental property on your tax return. This essentially means that the refund (or tax saving) received is reducing the cost of ownership. If you buy your own home, none of these costs are deductible and unless you take in a boarder, there’s no-one helping you pay the rent.

2.       Spreading the risk. Our home is often our most valuable single asset which for many of us, means that most of our wealth is tied up in it. The problem arises when the size of our mortgage means the ability to diversify our risk is diminished. We simply can’t afford to invest in other assets such as investment properties, shares or paying extra into super because, thanks to a seven-figure mortgage, the price of living is too high. Instead of sinking all our funds (and available borrowings) into one large mortgage, it may make more sense to buy a couple of cheaper investments across different suburbs or different asset classes and therefore spread the risk.

4.       Rent can be cheaper. In some suburbs, particularly if there are a glut of apartments being built, renting can actually be cheaper than the cost of owning the apartment. In that case, while you may emotionally want to own your own home, it simply makes more sense to not purchase an asset where there is an oversupply and potentially a smaller chance of capital growth.

5.       Freedom to move. If we truly say we want freedom and options – the ability to have a sabbatical, for one parent only to work full time, to send our kids to private school, donate our time to charity or travel regularly – then committing to a large mortgage is potentially going to rob us of that. Instead, by choosing to rent and instead invest in rental property you still have an asset class that is bricks and mortar but you have the ability to upsize or downsize your rental accommodation according to your other life goals.

Home ownership is still viewed in our country as something that all Australians should and, in fact, must aspire to. And for some of us when we do the maths it may still make great financial sense. However I do believe the mood is changing, particularly as the size of a mortgage in some suburbs and capital cities increases to seven figures. Instead, with a bit of creativity and certainly the courage to swim against the tide, you may find that home ownership simply isn’t the right fit for you, allowing you to look for bricks and mortar in investments other than the home you might possibly live in.

‘We moved from a suburban house to a small city flat with two kids’ http://www.smh.com.au/money/we-moved-from-a-suburban-house-to-a-small-city-flat-with-two-kids-20170703-gx3wxv.html via @smh
Posted in Australia, ECONOMY FINANCE BUSINESS LJGREALESTATE RENTALS PROPERTY SALES PROPERTY INVESTOR PROPERTY MANAGEMENT, family, finance, LJ Gilland Real Estate Pty Ltd, ljgrealestate, Maintenance Renovating tips Construction Home Staging Property Sales Property Management Property Investor Builders Developers Rentals Sales Tenance | Tagged , , , ,

Brisbane (29.6%), LINKS

Despite being in the midst of a nationwide dwellings construction boom over recent years, the total volume of housing stock increased by a lower proportion in Brisbane, Adelaide, Perth and Hobart between 2011 and 2016 than they did between 2006 and 2011.

Over the five years between the Census collection periods, there has been a shift towards denser housing stock being added to the capital cities is evident. 

Interestingly, while driving around inner city areas you would be led to believe that it is higher density units which have been most abundant in new supply, the data points to medium density supply having ramped up the most.

In Sydney (17.9%), Melbourne (61.0%), Brisbane (29.6%), Adelaide (46.5%), Perth (49.4%) and Canberra (36.9%) it was medium density housing types which recorded the greatest increase in stock over the five years.

In each of these cities, except for Adelaide and Perth, separate house stock saw the smallest increase of the three housing types over the five years.”

Looking at the proportion of total housing stock by type based on the Census data, across each capital city, separate houses remain the dominant property type.

However, given the previously presented data, the proportion of separate houses has fallen over recent Census periods.

 

 

The data indicates that in most capital cities, medium and high density housing remain a relatively small but increasing proportion of the overall housing mix.

Ten years ago in Sydney, 61.7% of housing stock was separate houses, and in the latest Census 55.7% of housing stock was separate houses.

If this trajectory continues by the 2026 Census less than half of Sydney’s housing stock will be separate houses.

With ongoing under investment in much needed infrastructure, there are significant lifestyle benefits associated with living closer to the city centre however, the supply of land in the areas closer to the city centre is limited.

This is leading to increasing levels of medium and higher density dwelling construction and premiums for detached housing located close to the city centres.

Although approvals for these types of properties has slowed recently, it is anticipated that construction of medium and high density dwellings will remain elevated relative to historic levels.

I believe we’ll see the shift towards a greater proportion of capital city housing being medium and high density will continue over the coming years.

Cameron Kusher is research analyst for CoreLogic.

Brisbane. The housing and economic data is derived from the CoreLogic Hedonic Home Value Index for the month of June, released July 2017

The mortgage rate lift is starting to be felt, driven largely by Australian mortgage lenders rationing credit to the investor segment, according to CoreLogic’s Cameron Kusher.

He said the mortgage rate premium for investors appears to finally be biting into the market with weakness in both total investor credit and investor housing finance commitments.

“April 2017 lending aggregates data from the Reserve Bank (RBA) showed that investor credit rose by 0.55 percent over the month, its lowest monthly increase since August 2016,” he said.

 

“At the same time, April 2017 housing finance data shows there was $12.6 billion in investor housing finance commitments over the month, the lowest value since September 2016.

“Since August and September of last year, standard variable mortgage rates for investors rose by 30 basis points compared to a 5 basis point increase for owner occupiers.

“There are individual states and territories in where a slowdown in mortgage demand by investors will have more of an impact, namely New South Wales and Victoria.

“Tasmania is the only state or territory where the value of lending to housing investors is currently rising however, in terms of the value of lending to investors, New South Wales and Victoria account for a substantial majority of overall lending.

“This is partly a function of higher housing costs in these two states, nevertheless, New South Wales accounted for 49.3 percent of all investor lending nationally in April 2017 with Victoria accounting for 27.4 percent.

“A pull- back in lending to investors is inherently likely to have more of an impact on the New South Wales (Sydney) and Victorian (Melbourne) housing markets.”

 

The potential impact on the New South Wales and Victorian housing markets of investor slowdown is further highlighted by the fact that, excluding refinances (which are also trending lower), investors accounted for 55.3 percent of mortgage demand in New South Wales in April 2017 and 46.8 percent in Victoria.

“In all other states and territories, investors accounted for less than 40 percent of mortgage demand in April 2017, with the proportion trending lower over recent months in most regions.

“We anticipate that investor demand will continue to slow over the coming months.

“We’re seeing lenders re-price mortgage rates for investors and, we are yet to see the full impact of the policy changes designed to slow the level of interest-only lending.”

“With investor demand likely to fade further, this will also contribute to a further slowing of the rate of value growth in the Sydney and Melbourne housing markets where investor demand has been significantly greater than it has been elsewhere.

“A reduction in the pace of capital gains will add further disincentive to investors.

“We can assume most investors are focussed on the prospects for capital growth and relying on a negative gearing strategy to offset the cash flow losses.”

Posted in Australia, Brisbane, ECONOMY FINANCE BUSINESS LJGREALESTATE RENTALS PROPERTY SALES PROPERTY INVESTOR PROPERTY MANAGEMENT, Empowerment, family, finance, LJ Gilland Real Estate Pty Ltd, ljgrealestate, Maintenance Renovating tips Construction Home Staging Property Sales Property Management Property Investor Builders Developers Rentals Sales Tenance | Tagged , , , , , , , , , ,

http://www.abc.net.au/news/2017-07-03/housing-surplus-raises-price-crash-risks/8663860?section=business

Posted in LJ Gilland Real Estate Pty Ltd

92.2% of capital city resales and 87.4% of resales in regional areas over the quarter were at a profit. 

With Compliments Removing the hassle from sales & rentals Brisbane Wide. 92.2% of capital city resales and 87.4% of resales in regional areas over the quarter were at a profit. Download report: http://bddy.me/2swAk5g

Posted in LJ Gilland Real Estate Pty Ltd

Across the board, the most significant change in days on market took place in Perth and Brisbane in Q2

Rent.com.au has produced a report based on property leasing data from the April to June quarter (Q2), illustrating the shift in median rental property prices (both metro and regional), rental affordability (the median room price metric) and the Walk Score® / median rent and room price.

Photo: iStock/tap10.

Rent.com.au has aligned its data set with the updated ABS structures released in census 2016 data in late June, including the Greater Capital City Statistical Areas (GSCSA). This release and subsequent update has resulted in minor changes to our reporting areas and results from May 2017.

AVERAGE MEDIAN RENT BY PROPERTY TYPE

Click image to open in a new window.

Q2 SUMMARY

Rent.com.au’s Q2 2017 (April – June) report reveals prices remained relatively steady across the period, with median rent price decreases in four of the state capitals, and increases in those remaining.

Of the metro areas, Brisbane, Perth, Adelaide and Darwin recorded a decrease in median rent. Perth saw the most significant dip in pricing, down 2.78% to $350/week in Q2. Rents in Brisbane also dropped, this time by 2.44% to $400/week.

Sydney was the only state capital which saw no change to results from the past quarter, stationary at $550/week. With only Canberra as its closest contender price-wise ($460/week), Sydney remains the most expensive city in Q2 for house hunters.

Rents were also on the rise in Melbourne (up 1.27% to 400/week) and Hobart (up 2.78% to $370/week). Nationally, the market remained stable quarter-on-quarter; the national median average staying at $390/week.

MEDIAN RENT AND PRICE PER ROOM (all property types)

Metro area Q1 Q2 % change Q1 Q2 % change
Sydney $550 $550 0.00% $265 $275 3.77%
Melbourne $395 $400 1.27% $170 $165 -2.94%
Brisbane $410 $400 -2.44% $165 $153 -7.09%
Perth $360 $350 -2.78% $130 $125 -3.85%
Adelaide $340 $335 -1.47% $131 $128 -2.89%
Hobart $360 $370 2.78% $150 $140 -6.67%
Darwin $450 $440 -2.22% $167 $163 -2.52%
Canberra $450 $460 2.22% $190 $188 -1.32%
National average $390 $390 0.00% $180 $175 -2.78%

REGIONAL MEDIAN RENT (all property types)

In Q2, regional median rents were largely unchanged from the previous quarter. The national average median rent was stable at $390/week.

Price decreases did occur in Brisbane (down 2.44% to $400/week), Perth (down 2.78% to $350/week), Adelaide (down 1.47% to $335/week) and in Darwin, which dropped 2.22% to record a median of $440/week.

The most significant rise in regional median rents was in Hobart, where prices rose 2.78% to $370/week.

Metro area Q1 Q2 % change
Sydney $550 $550 0.00%
Melbourne $395 $400 1.27%
Brisbane $410 $400 -2.44%
Perth $360 $350 -2.78%
Adelaide $340 $335 -1.47%
Hobart $360 $370 2.78%
Darwin $450 $440 -2.22%
Canberra $450 $460 2.22%
National average $390 $390 0.00%

MEDIAN DAYS ON MARKET (Q2 2017)

Apartments Houses
Metro area Q1 Q2 % change Q1 Q2 % change
Sydney 19.31 19.01 -1.55% 23 21.87 -4.91%
Melbourne 22.01 20.05 -8.91% 23.17 22.84 -1.42%
Brisbane 27.01 31.08 15.07% 25.88 28.12 8.66%
Perth 37.88 43.95 16.02% 36.98 41.16 11.30%
Adelaide 28.16 28.95 2.81% 25.09 26.75 6.62%
Hobart 14.85 15.83 6.60% 15.83 17.05 7.71%
Darwin 39.16 41.84 6.84% 36.88 39.98 8.41%
Canberra 20 19.6 -2.00% 18.67 20.84 11.62%

Across the board, the most significant change in days on market took place in Perth and Brisbane in Q2. Perth apartment turnover slowed by 16.02% to 43.95 days in the period, while Brisbane came close with a 15.07% increase in days on market, now 31.08 days.

Changes were less significant for houses across the country, the highest recorded change took place in Canberra, slowing from 18.67 days in Q1 to 20.84 days in Q2, an increase of 11.62%.

HIGHEST AND LOWEST GROWTH SUBURBS

State Suburb Q1 Q2 % change
NSW (Highest growth) Revesby $500.00 $550.00 10.00%
Mayfield $350.00 $385.00 10.00%
Cremorne $620.00 $680.00 9.68%
Granville $420.00 $460.00 9.52%
North Sydney $600.00 $650.00 8.33%
NSW (Lowest growth) Newcastle $450.00 $420.00 -6.67%
Wagga Wagga $300.00 $280.00 -6.67%
Seven Hills $450.00 $420.00 -6.67%
Balmain $792.50 $740.00 -6.62%
Bondi Junction $792.50 $750.00 -5.36%
VIC (Highest growth) Hawthorn $370.00 $410.00 10.81%
Warragul $295.00 $320.00 8.47%
Thornbury $370.00 $400.00 8.11%
Box Hill $352.50 $380.00 7.80%
Glen Iris $415.00 $445.00 7.23%
VIC (Lowest growth) Carlton $450.00 $410.00 -8.89%
Brighton $650.00 $600.00 -7.69%
Glenroy $360.00 $350.00 -2.78%
Elwood $435.00 $425.00 -2.30%
Croydon $377.50 $370.00 -1.99%
QLD (Highest growth) North Mackay $230.00 $245.00 6.52%
Burleigh Heads $470.00 $500.00 6.38%
Morayfield $320.00 $340.00 6.25%
Cannonvale $330.00 $350.00 6.06%
Buderim $450.00 $475.00 5.56%
QLD (Lowest growth) Kelvin Grove $450.00 $400.00 -11.11%
St Lucia $450.00 $400.00 -11.11%
Paddington $505.00 $465.00 -7.92%
Kangaroo Point $477.50 $450.00 -5.76%
Upper Mount Gravatt $440.00 $415.00 -5.68%
WA (Highest growth) Kalgoorlie $320.00 $350.00 9.38%
Dianella $330.00 $350.00 6.06%
Secret Harbour $370.00 $380.00 2.70%
East Perth $425.00 $430.00 1.18%
Innaloo $425.00 $427.50 0.59%
WA (Lowest growth) Victoria Park $350.00 $310.00 -11.43%
Rivervale $355.00 $330.00 -7.04%
West Perth $430.00 $400.00 -6.98%
Maylands $300.00 $280.00 -6.67%
Thornlie $342.50 $320.00 -6.57%


WALK SCORE
® MEETS PRICE PER ROOM
APARTMENTS

NSW VIC QLD WA SA TAS NT ACT
Car dependent $175.00 $140.00 $137.50 $137.50 $127.50 $127.50 $180.00 $240.00
Somewhat walkable $225.00 $170.00 $166.70 $160.00 $140.00 $133.30 $195.80 $280.00
Very walkable $260.00 $212.50 $200.00 $198.30 $150.00 $180.00 $200.00 $315.80
Walker’s paradise $395.00 $300.00 $275.00 $240.00 $225.00 $225.00 $275.00 $350.00

Rent.com.au’s Q2 report compares Walk Score® data to price-per-room data on all leased properties in the period with an aim to identify price trends in areas with varying levels of walkability.

WALK SCORE® MEETS PRICE PER ROOM
HOUSES

NSW VIC QLD WA SA TAS NT ACT
Car dependent $136.70 $112.50 $112.50 $105.00 $100.00 $103.30 $150.00 $156.70
Somewhat walkable $160.00 $128.30 $130.00 $121.70 $120.00 $110.00 $166.70 $175.00
Very walkable $190.00 $160.00 $148.80 $145.00 $143.30 $137.50 $150.00 $180.00
Walker’s paradise $322.50 $260.00 $183.30 $192.50 $200.00 $180.00 $375.00 $330.00

Source: rent.com.au. Figures for properties leased in the month of June 2017. http://ljgrealestate.com.au/rental/10b-karawatha-street-springwood-qld-4127-2

Posted in Australia, Brisbane, ECONOMIC OUTLOOK, family, finance, LJ Gilland Real Estate Pty Ltd, ljgrealestate, Maintenance Renovating tips Construction Home Staging Property Sales Property Management Property Investor Builders Developers Rentals Sales Tenance | Tagged , , , , , ,

Brisbane was one of only two capital cities (including Perth) to see an improvement in the average time on market in June, dropping to 28.1 days for apartments (down 12.73%) and 27.8 days for houses (down 4.47%). The city’s median rents remained consistent with no change in June. Across the nation, rents remained relatively stable with changes only seen in Sydney, Adelaide and Hobart. Brisbane’s price-per-room rose 3.33% to $155/week.

https://www.rent.com.au/blog/rental-snapshot-june-2017

 

http://ljgrealestate.com.au/rental/10b-karawatha-street-springwood-qld-4127-2

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