Generally, February is a strong month for property, especially when Easter is early in the year. 2013 has been different – while buyers have been steady, the sellers have been slow out of the blocks so far. This year, the supply of property has been slow to come on the market and so we now find ourselves running Auction campaigns over the Easter break.
Prices in the Chatswood precinct continue to be firm as demand continues to out-strip supply. We just Auctioned a house in St Ives and the sale price was $35,000 over the reserve. Actually, the Auction clearance rates in Sydney in general are high.
So there are plenty of buyers and prices are quite good. In fact, a house just sold in Roseville for a 46% (approximately) growth since being purchased 7 years ago. That’s almost a capital gain of $1m!
While interest rates remain low and the stock levels remain low, prices will continue to hold. Many property developers are limiting themselves to buying developments along the main railway lines, as they know that is where there is the strongest demand.
At present, if you own an older unit in Chatswood, you will achieve a far better price if the kitchen and bathroom are renovated. Buyers would prefer this, as it is easier to have one borrowing to buy a property rather than buying then having to raise a secondary loan to be able to renovate a bathroom and/or kitchen.
Rental properties are generally leasing fairly quickly, but prospective tenants know value, so if you overprice, they will move on to look at better priced property. If you need new carpet, think about timber floors (if strata allows it). They look great and last along longer in an investment property.