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Tasteful decor is important

Are you currently looking for the best real estate agent in Perth to sell your property and now need to prepare your home for sale so that you can maximise the selling price? Well look no longer, Michelle Parrish from Davey Real Estate Scarborough has your answers.
– I’m not going to tell you to detach yourself from your home but it’s a great time to start the packing process, it’s very difficult for someone to imagine themselves living there if it’s full of your personal belongings.

– The same applies for clutter, it can be very distracting and not everyone will appreciate your love of books or model cars.

– Over sized furniture can misrepresent a rooms dimensions and make a space appear much smaller than it actually is but if you do have small rooms then think about decorating with furniture that is less obtrusive e.g. a glass coffee table rather than a heavy, timber one or a simple couch and arm chair instead of a large three piece suite.

– If you have a beautiful view of the garden or a stunning picture window hiding behind heavy drapes, then get rid of the drapes. Make your beautiful views visible. I’ve seen an entertainment unit placed in front of a gorgeous fireplace!

– If possible, a fresh coat of paint is always a plus but this is not the time to express yourself with colour.

– If necessary and time (and funds) permit to undertake renovations, the kitchen and bathrooms take priority. Buy the best appliances and fittings you can afford and keep tiling simple, a white subway tile in the kitchen and large white mat tiles to the bathroom are safe options.

– Break out the tool box and fix the dripping kitchen faucet or loose door handles.

Clean! Your home should be sparkling, this includes light fittings and walls (sugar soap does wonders to remove scuff marks and grime) ensure there are no lingering pet or food smells, have a friend pop in do the sniff test.

Many people make the mistake of thinking that none of the above matters and that potential buyers will look past the clutter and purple accent walls but the reality is…they don’t.

If you want more tips on how to maximise your sale price then call Michelle Parrish.

“Michelle is a proven Sales Executive with experience across a broad range of industries including human and animal health. She has an ability to achieve desired outcomes using an ethical sales attitude and honest methods.” 

Looking for a professional marketing and pricing report sent to you within hours? CLICK HERE for a FREE report.


Michelle Parrish
Davey Real Estate, Scarborough
Sales Consultant
Michelle Parrish has an interior design background and has worked in this field for several years.


Santa

Santa Claus wanted poster.

The northern suburbs crime rates are up slightly from last year in most suburbs so we thought we’d share some tips for staying safe this Christmas.

You probably know the obvious things to do to prevent burglaries, but there are some modern day twists to be aware of.

Surprisingly December isn’t the busiest month for burglaries. It is not far off it though – it would seem some Burglars take a holiday but there are more of the opportunistic type of break-and-enters at this time of year.

Keeping your goods safe is easier than you may think. Sixty percent of robberies are the result of a window or door being left open. So by simply closing doors, gates and windows you can greatly reduce your risk.

Around Christmas making your home look lived-in is the number 1 priority.  Here is how you can do this:

  1. Either don’t put up Christmas lights at all, or if you do, put them on a timer.  If your timer is accessible outside, talk to your neighbor and give them the OK to adjust it if the power goes out and affects the clock.
  2. Keep a radio on inside the house. It should be loud enough to be heard as you approach doors to the house.
  3. Put internal lights on a timer.
  4. Close curtains and lock gates.
  5. Finally, in our thirst for social media we sometimes accept friendships from people we barely know or have broad privacy settings. It can make it very easy for a would be thief to monitor your social media and see when you are away and then pay your vacant property a visit.  If you just absolutely need to let everyone know how nice your Caipiroska cocktail is while taking a photo of your feet on a beach in Bali, save the photos up for when you arrive home.

Crime rates in key suburbs for Jan – Dec 2016

(Residential Burglaries) Source: Crime Statistics, Western Australia Police

Mt Hawthorn – 45
Scarborough – 138
Padbury – 37
Sorrento – 52
North Beach – 33
Hillarys – 41
Karrinyup – 69
Currambine – 24

Your suburb not here? CLICK HERE to find the statistics for your suburb.

 


Santaclaus

Santaclaus takes a drink in a deckchair on beach

At this time of year we are bombarded by this question – and it is a fair one to ask.  The short answer is… it depends. (Don’t leave now, we’ll explain)  The key to all of this is that property absolutely does sell during the Christmas holidays. Lots do. So with that in mind read on.

Firstly you need to ask yourself four important questions. Your answers may determine the best solution for you:

  1. Do you have time to keep your house in perfect condition? It is school holidays and the relatives may be coming over to stay, so for some staying on the market just isn’t an option.
  2. How long has your property been on the market?  If you are nearing the average “days on market” for your area (in Perth it is currently 60 days) then you may be better to remove the property from the market and bring it on “fresh” in 30 days.
  3. Is your agent on holidays? Even a real estate agent needs a break, and if yours is heading off for an extended holiday and they haven’t organised cover then don’t be tempted to leave the property hanging on the market. It will only end in tears.
  4. How urgent is the sale?  If the pressure is on, then you may not have a choice other than to stay on market.

If you still are unsure then here are our arguments for, and against.

The reasons to take your property off the market

Sales are low. While there are definitely some sales during the holidays, the week before Christmas through to mid January is the quietest time for residential sales. Not only are there less agents at work, but buyers are also busy.

Remove and go back to the top. If you completely remove the property off the major websites for a specified period of time (usually 30 days minimum) then you may have the opportunity to go to the top of the search lists again. This can be invaluable in ultra-competitive markets like Scarborough, Innaloo, Doubleview, Balga and Alkimos.

The reasons to keep you property on the market

There is less competition. Many people do take their properties off the market, leaving yours for those that are still looking.

There are less buyers, but they are more willing.  Most people have better things to do than look at property during their holidays. Those that are are doing it because they may have to – they are moving to another state or only have this period of time to look.

Some people do have more time on their hands. It is common for us to get enquiry on property on boxing day. People without big families or busy with friends are usually looking for something to do and turn to the internet – and property is easily found on the internet.

Don’t underestimate the Christmas Spirit. If you have put considerable effort into decorating your house with Christmassy love, you’d be surprised how much of a positive influence this can have on buyers looking for a home for their family. It can be as powerful as staging a house and get buyers in the right frame of mind for buying.

Whether to stay on market or not is going to be determined by you or in some cases, by the circumstances of your agent. There is no right or wrong, just what is going to work for you.


Nothing gets us more annoyed than reading spectacular property headlines in the news that suggest wonderful trends are afoot in real estate. If you look at some of the most recent titles you could be excused for thinking our Perth property market is just sensational. We’ve put together the headline of the article, then extracted any reference Perth gets or made our own comment and you can see that our market is at polar extremes to the title. Considering many of these articles can be found on supposedly WA focused websites, it is frustrating and in our opinion, misleading.

“Housing Prices surge but supply surge looms” – ninemsn.com.au

We should be thankful that half this headline is correct – we already have a supply surge but housing prices are more of a suck than a surge:
“At the other end of the scale, Perth remained the weakest, with home values up 0.1 per cent in the week but down 4.9 per cent through the year as the number of homes on the market rose 18.6 per cent from a year ago.”

New data shows investors are back in the market for rental properties – PerthNow (Nov)

We’re not sure which investors are back, but they aren’t in Perth:
“South Australia was also in positive territory (4.3 per cent) as well as Victoria (2.0 per cent) but New South Wales saw a -2.6 per cent fall while Western Australia was down a whopping -18.8 per cent.”

Investors roar back into housing markets as NSW charges ahead – domain.com.au (Nov)

No mention of Perth in the article but the graph says it all…

investorlendingsep16

Markets set to sizzle this spring – realestate.com.au (Nov)

Even reading the below comment, things sound just peachy, until you read the last line:
“Despite a slowing economy, pricey western suburbs are the hottest spots right now in Perth. The top three all have median prices more than double the average for Perth.”

“…declines in prices are likely to continue to occur in the short-term…”

Vacancy rates dropped again in the past month, but we reveal the capital cities with the most rentals – PerthNow (Nov)

Great headline right? Unfortunately Perth is at odds with the title once again:
“Perth had the second highest number of vacant properties during the month, 10,292, followed by Brisbane with 10,157.”

And in regards to the rent value trends, Perth is also not getting the good stuff:
“Perth rents took the biggest dive with houses down 11 per cent on this time last year and units down 10.7 per cent.”

The truth?

It is still a buyers’ market for residential sales in Perth. Days on market are still up over 60 days and the median price has dropped to $512,500, the lowest it has been since the December Quarter 2012. (source REIWA)

It does represent a great time to buy – upgraders will find great value especially if moving up to property valued at over the million dollar mark and the affordability index in Perth is improving. There is still a  decline in the rental prices but the decline has slowed. The vacancy rate is still high (at 6%) compared to the long-term average of around 3%.

For quality information on the Perth market, we recommending visiting reiwa.com and going to the The WA Market section for unbiased facts.


If you want to know more about buying and selling property in WA, contact Davey Real Estate.

If you would like an up-to-date market appraisal and marketing options for your property CLICK HERE and we can send you a report ONLINE. Use the promo code BLOG to receive a $20 Bunnings or JB HiFi voucher.

*  FREE Voucher for property in the northern suburbs of Perth including suburbs around Padbury, North Beach, Greenwood, Currambine, Mt Hawthorn and Scarborough

Author: Andrew Davey



by Davey Real Estate In General Information

14/11/2016 11:40:25 AM

If you’ve been driving past Sorrento Surf Club recently you would have noticed the trucks and activity around the club.

Keen observers would have also noticed the activity at the north end of Sorrento Beach in the last couple of weeks. This is the Eco-shark Net that is being installed. Below are some photos taken recently of the Sorrento Shark Net being installed.

The car park is being upgraded to allow for increased parking. According to the Wanneroo Times website there will be a total of 75 bays added. 48 bays will be added to the north of SSLC and 17 will be on the east side of West Coast Drive in front of Sacred Heart High School and finally 10 extra bays will be installed within the existing car park at the Surf Club.

As a local resident of Sorrento I don’t believe that 75 bays will be anywhere near enough – on a hot summer day 75 extra bays were needed BEFORE the Eco Shark Net was installed. Finding a solution to adding even more bays would be difficult without giving up some of the excellent open grassed areas. Whilst unlikely to ever happen, an underground car park would be the ultimate solution. Whilst at one level this is fanciful, it has already been examined for the Ocean Reef Marina development and many believe it to be a eco-friendly and viable solution.

From a real estate point of view, it is expected that the shark net will increase demand for property in the area, particularly for property that is within walking distance to the net. Certainly as agents we are quick to point out to clients the feature when selling property in Sorrento and Hillarys for those that are still unaware of the development.

 

What do you think? Is 75 bays going to be enough, and if not how can the council rectify it. Make your thoughts known in the comment section below.


Choosing the right Property Manager can be daunting

Scarborough, Innaloo and Doubleview are big suburbs with large patches of high density housing. As a result, there is always plenty of property available and there are plenty of agents servicing the area.  It can be a daunting prospect trying to rent a property in these suburbs. It is also not an area for the average Property Manager to try to tackle without some inside knowledge.

Mallory

Mallory Brown, Davey Real Estate Scarborough

Mallory Brown is an experienced Property Manager that has been working in Scarborough, Innaloo and Doubleview for over 2 years. She receives the highest satisfaction score from Landlords for any Davey Real Estate Property Manager and knows what it takes to be successful in the area.

Mallory believes knowledge of your market is vital.

She wouldn’t take on a property in Mandurah because she isn’t familiar with the area nor have as much market knowledge as a local agent. It makes sense to have a local agents managing local property as they know the market well.  For example Stanley Street attracts a younger and more transient type of renter compared to areas around Doubleview Primary School where families are more likely to be looking to secure their next property to call home.

Finding a Property Manager that truly cares about your property, your needs and wants and someone you get along with is crucial. To find one you need to ensure that you are asking the right questions and communicating what it is that you are after from the relationship. From a Property Managers perspective, being able to show the care factor can be difficult – personally, I like to mention that I have received a client satisfaction score of 8.2/10 over the last two years, finishing in the top 2 for the Davey group in both those years. I believe this helps to show that I care about my clients and I know our team all feel the same way.

Mallory shoots straight when discussing the importance of the relationship with your Property Manager – “Meeting the Property Manager face to face is something that is really important and if you are able to, something I would strongly recommend you do to ensure that you are on the same page. Not every PM is going to recognise and understand your needs and you will not always gel with every personality that you meet. If after you meet them and something doesn’t feel right, chances are that it probably isn’t and it may be best for you to continue your search.”

Mallory believes that you should “find an experienced and sizable agency. I know from experience that the established agencies have solid procedures that have been proven and tested. Property Management is very process driven and highly regulated today , therefore it is important to find an agency that has developed the processes over many years and has the size to justify great software to be efficient and ensure the best outcome for you”

Mallory’s 3 tips for Landlords trying to rent property in Scarborough, Innaloo and Doubleview:

  1. Price it right on day 1 and listen to your Property Managers advice. It’s crucial to look at what else is available in the area as this is your competition –  compare it to your property and price it accordingly to achieve the best outcome for you.  If you want to test the market and price it higher than recommended then we can but we ask that you keep an open mind and should your property not rent over the next two weeks then you should come down to the market price I have presented within the two weeks.
  2. Market it right from day 1. “Photos are the single most important element in an internet display. They are more important than the description or the floor plan as this is what any prospective tenant looks at first and what sticks in their mind. It makes sense to invest in professional photography as it is something that you can use over and over again.
  3. Flexibility to get prospective tenants through inspections are a must. Mallory says that “If a client can’t view a property within 3 days then they aren’t providing the best service possible. Often we are getting people through property within 24 hours.

If you would like to know more or have some further questions for Mallory, she can be reached at MalloryB@daveyre.com.au. To view Mallory’s profile click HERE. We encourage you to check out Mallory’s impressive testimonials and awards.

 


sara-and-sam-copy

Sara and Sam

Two of Davey Real Estate’s team have taken out the coveted Sales and Property Management awards at the recent REIWA Awards for Excellence at Crown Casino in Perth.

Sara Young (Principal Davey Real Estate Currambine) completed a rare 3-peat, winning the same award for the third time over a span of 10 years, twice whilst at Davey Real Estate. Sara first won the award at its inaugral event in 2006 and then again in 2012. To win this prestigious award the nomination must display how they have provided exceptional service to clients as well as providing a broader service to the agency.

“Sara is very active in the industry and Property Management Community and is a fantastic source of information for our team. I am most pleased with the way she goes about her business – it is generally done without much fanfare and she always shows respect for whomever she is dealing with.” said Andrew Davey, General Manager Davey Real Estate.

Sara is a director at the Currambine office for Davey Real Estate and is the senior Property Manager for that office.

Davey Real Estate has now won this award three times, with Kylie Harbo taking out the award in 2014.

Sam Hedges (Principal Davey Real Estate Coastal) grabbed the top award for the sales in his first attempt.

Andrew Davey said that “What is most pleasing about Sam’s achievement and the whole awards structure is that it isn’t awarded to the nominee with the most sales or those with the biggest marketing budget – it is focused on the actual quality of the service offered to the clients and their peers. Sam is a most deserving recipient of this award.”

Davey Real Estate would like to congratulate all the winners and the nominees at the 2016 REIWA Awards for Excellence and congratulate REIWA on a great event and concept.



by Davey Real Estate In Property Management, Residential, Sales

19/10/2016 3:38:09 PM

housing-update

Residential Property Market – Sales – 3 reasons to buy

For a change there is some good news filtering through to our market in Perth. The Northern beaches from Scarborough to Mullaloo are experiencing a surge during the Spring months.  Keen observers would have noticed that many properties have sold, whereas properties with asking prices well above market value are sticking.

In general though our opinion regarding residential sale property in the northern suburbs is that prices are steady. The number of properties that are selling is still declining and there is still too many properties coming onto the market causing a lack of demand. Short term investing is not an option for most scenarios.

Although there is doom and gloom (isn’t there always?) in the market – like this one here – there are still good reasons to buy in this market. Here are our top 3:

  1. The Housing Affordability Index in Perth is the best in the nation (source – Fin Review Jul 19). It is cheaper to buy in Perth than any other capital city in Australia.  That is pretty amazing given where we were just a few years ago.
  2. The top end (above $1M) of the market has compressed down and is great value. So if you are an upgrader, there has not been a better time to buy!
  3. Building is still an expensive proposition, although Perth is now behind Brisbane on the Building Cost Index, with Canberra still the highest (Source: BCI March 2016). It makes sense to buy established (not new) property.

The auction process is building momentum in the Northern Suburbs. We’ve sold four properties either under the hammer or within 3 days of the auction taking place – and we’re not the only ones getting success from auction.  This would indicate a shift in some segments of the market with Buyers prepared to take the leap, when only a few short months ago auctions were stalling.  Our three latest auctions sold in Sorrento, Kallaroo and Mt Lawley.

Residential Property Market – Rentals

The rental market is fairing in much the same way as the sales market. There is too much supply for the little demand. Prices are steadying but we are still playing catch up for people coming out of leases that they signed 12 months ago.

Rental

Rental Update Graph

Rental Price down, depreciation planning up

With the return on investment (ROI) down for most of our Landlords, we are suggesting some innovative (and totally legal!) ways of improving the financial viability of their rental properties in Perth’s Northern Beaches.  For example, did you know that through a process called “scrapping” that depreciation experts tell us you can actually claim back some of the cost of your old carpets?  If your house is modern, or you have done recent improvements you will have plenty of opportunity to claim depreciation for many years.  Our Padbury team has put together a seminar (November 11th, 2016) to explain in simple terms how you can get back the money you have lost on your investment property as a result of the rents dropping.  Asset Reports Tax Depreciation Experts  and Red Fox Accountants are giving a short complimentary seminar (drinks and nibbles provided) to explain the processes around depreciation and tax for investors.

Vacancy Rate at Davey better than the average

Our average vacancy rate across our 5 offices at Davey is 4.1% at the time of writing. This is well below the Perth average.  The North Beach office leads the charge at only 2.5%!  Good planning, great marketing and after hours service is helping our Landlords get paying tenants into their property faster than our competition.

Seminar Booking details: Call Lisa Finnigan today to reserve your spot – we only have limited places so please hurry! Call 9402 4255 or email lisaf@daveyre.com.au or complete the form below



by Davey Real Estate In Residential, Sales

8/08/2016 9:18:30 PM

About Garth Ormesher:
Locally born and bred Garth has a keen eye for developments and unlocking the potential of property for clients in the northern suburbs is a passion. Garth’s focus on this area has meant his knowledge is second to no real estate representative in the area. If the information below isn’t detailed enough, please contact Garth direct for more. Garth specialises in any redevelopment zone particularly in the suburbs around Sorrento.

Call Garth on 0400 088 989 or email him on developments@daveyre.com.au
Find Garth at Davey Real Estate North Beach and click HERE for his online profile
p: (08) 9447 1644


Are you looking to buy smart or sell savvy by taking advantage of the new (implemented January 2016) R-Code changes in Sorrento? Then you have come to the right place.

Here we’ll explain the basics of the R-Codes and explain the changes that have come through and what it can potentially mean to you as a buyer or as a seller.

Before we begin, we must point out that any advice here should be corroborated by checking in with a surveyor and a very good local one is Lester Surveys located in the North Beach shopping center.

What are R-Codes?

R-Codes is real estate lingo for Residential Design Codes and they are pretty much self-explanatory in that they outline the rules and regulations for designing residential property in Western Australia. Easy right? Well not exactly because lurking behind the R-Codes is a series of complicated rules that are sometime open to interpretation. Enter a knowledgeable real estate agent (with an equally knowledgeable surveyor by his side). A real estate agent can interpret the R-Codes as they apply to your specific property and can sometime unlock potential that you would have never known existed.  For example, did you know that in Sorrento there are many rear laneways (we call them Right of Ways – or R.O.W.) and you can, in certain circumstances, add 50% of the area of the laneway to your property for the purposes of calculating area?  And there are plenty of other “tricks” out there too.

What do the numbers mean – R20, R25, R30, R60?

The most significant change in Sorrento is that some areas are given duel zoning. They are all R20 but some specific areas can apply for R25. A long time ago R20 meant that you could fit 20 blocks onto 10,000 sqm (or 2 blocks in 1,000sqm) and R25 meant 25 blocks in 10,000sqm. The principal is the same in that R25 allows for higher “density” but the number of subdivisions allowed isn’t quite as straightforward – many factors now need to be considered.

For Sorrento residents the common land size in the redevelopment area is 711sqm and we know that with a R.O.W. at the back then the block can be subdivided into two lots – providing some important design rules are followed. In fact the only area in the Sorrento Rezoning plan that does not have a R.O.W. running parallel to the road is Syree Court and Arkwell Way but subdivision is still possible there too.

If you want an updated (Jan 2016) map of any re-zoned area (Northern Suburbs) just email me today – my details are below.

Map

City of Joondalup Suburb Map

 

I’ve found a property that is advertised as “subdividable” – what should I do before I make an offer?

If there is time, it is worth getting a sketch of the block if it is available and taking it to a real estate agent or better still a surveyor. Get a quick assessment from them – most, like Lester Surveys, will do this free of charge knowing that you will need their expertise later. Once you have been given the nod place an offer on the property “Subject to a Due Diligence Clause” being added. Once again a good agent will know how to write this up to protect you from buying a “dud” block. A due diligence clause normally gives you a number of days (you specify how many) to seek advice on the suitability of the block – this is where you will need your surveyor. You may like to talk to the council as well about anything that may stop you doing what you want to do.

Is my property worth more now?

The rezoning has pushed prices up in Sorrento / Marmion and in other areas that have it. If you fall outside of the zoning area you will still see a benefit. Prices don’t fall off a cliff once you are outside the zone. Improved property prices in a patch has a ripple effect further out and increased development will bring new and modern properties to an area that had largely old and sometime dilapidated buildings in it. This improves prices to the whole area.

Still confused?

Don’t worry, I can help. Send me via email the street address (even one currently for sale) of the property you want information for, and I’ll give you the following:

  • Confirmation you are in/out of the re-zoning area
  • A copy of the re-zoning map
  • R-Code table with minimum setbacks, frontages and ratio’s for property in Sorrento, Hillarys, Marmion and Watermans Bay
  • A “sight unseen” estimate if you can sub-divide the property or not
  • An invitation to have me visit the property to determine in detail what can and cannot be developed/built (subject to survey)
  • Optional: A FREE written estimate of the value of your property compared to similar properties I have and others have sold in the area

Email me today at developments@daveyre.com.au to get all of the above within 24 hours or call me direct on: 0400 088 989

More information and background can be found here at the City of Joondalup.

 

 

 


The offer from the Water Corporation is a generous one – swap your old water gushing unit for a brand new water-wise one. The vision most owners have is the plumber can drop into Bunnings (voucher is redeemable only at Bunnings) and swap the unit then quickly (ie Cheaply) swap the unit over. Most owners expect a cost of around $50 – $120.

showerhead

Is that what you’re thinking? Well it isn’t working out that way in many cases.  If you are D.I.Y. then it may be feasible but consider these realistic factors for most Investors:

  1. The plumber needs to get the original unit from the property (that costs time = money)
  2. They then need to go to Bunnings to pick up the new unit (more time)
  3. Sometimes when they look at the fitting attachment, it is different so they’ll need to connect an adapter (= $$)
  4. They then finally need to go back and fit the new unit.

Lastly these units are chrome plated and are never going to be as long lasting as some of the top end stainless steel units some Owners prefer.

The time for a plumber to carry out this for you is considerable and it is not cost effective.  From a financial point of view it is very hard for us to justify.

We’ve also already had complaints from some tenants that find the water pressure and volume is insufficient. It may be a case of them needing to get used to it, but the complaints are coming.

Finally at least one of our plumbers has said that some water-saving devices can actually damage your hot water system. The Water Corporation recommends checking your Hot Water System is compatible before removal.

From an environmental point of view – we fully support the idea and encourage our clients to do it if looking after our water resource is the goal.

More information is available here from the Water Corporation

Do you need an estimate of the rental income your property could achieve? CLICK HERE to get one done within 48 hours. Use the promo code BLOG to get a free $20 voucher from Bunnings.


House_On_Fire

The Greenwood property that was set on fire

There has been a recent spate of unauthorised entries into vacant rental properties in Perth. Most recently PerthNow reported that a house in Greenwood was broken into and then a party was organised via social media. The unfortunate end to this case was a fire at the property causing significant damage. This story came after an earlier similar story in WAToday where another northern suburb house was targeted.

It is a further downside to Perth’s long running high vacancy rate. The long term average vacancy rate in Perth is around 3% (REIWA) but the current average in Perth is sitting at double this at 6.0%.

If it wasn’t for a quick thinking neighbour, Davey Real Estate may have had a similar situation in Morley this week. A neighbour called police, noticing youths unpacking DJ equipment into one of our vacant properties. The police quickly shut down the proposed party.

So here are our top 6 tips for preventing unauthorised use of your property:

  1. Get an alarm. It doesn’t need to be monitored (although this would be better) but this obviously will alert neighbours that can call police. Place “Alarm on site” stickers on your property. It is no good having an alarm if the would-by short-term squatters don’t know there is one inside. Place several stickers on windows around the house.
  2. General house security. Here is a quick checklist from experienced Property Manager Holly Mennell:
    • Ensure you have quality security screens and doors or at least get windows locks on all windows
    • Consider installing perimeter lighting
    • Leave a radio on
    • Leave lights on, on a timer
    • If you have a spare car, park it in the garage
    • Make sure gates have secure locks
  3. Know your neighbours. Let them know your property is vacant and give them your number, or the number of your real estate agent in the event of some dodgy looking characters lurking near the property they can call to check if they are supposed to be there
  4. Make sure your insurance is up-to-date. Make sure you use a reputable insurer that specialises in Landlord Insurance like EBM Insurance, AON Insurance or Terri Scheer. They will often cover such an event. If the worst does happen you want to lessen the financial pain.
  5. Get a tenant fast! So this one is obvious but some Landlords delay dropping price on their rental, meaning that the property sits there vacant for weeks on end. These are the properties that are most likely to be targeted. See our blog on Avoiding the Vacancy Trap for more tips.
  6.  Get a For Lease sign on your property. If these people are targeting Private Landlords, then a sign will help to put them off. The advantage of a For Lease sign is that neighbours have a direct contact number to call. Police can be arranged quickly.

Need an appraisal on your property? CLICK HERE to get a full report sent to you via email. Use promo code BLOG to get a FREE $20 Bunnings or JB HiFi voucher. Bonus offer for property located in the Northern suburbs of Perth.



by Davey Real Estate In Residential, Sales

25/06/2016 6:53:32 PM

Commission

Real Estate Commissions in WA

We know how confusing real estate agent fees can be for sellers. In this blog post, we’ve answered the top questions our clients ask us about selling fees.

What are the typical selling fees for a real estate agent?

No one wants to be ripped off by real estate agent fees, but how much should you be paying? The factors that influence agent fees are:

  • The condition and realistic selling price of the property.
  • The agreed-upon marketing plan for selling the property.

Davey Real Estate managing director Andrew Davey said the average selling fee for a property in Perth’s northern suburbs is between 2.0% and 3.0% of the property’s selling price, including GST.

Some agents are cheaper and some are more expensive. But it’s more important to look at what you’re getting for your money, rather than simply worrying about the cost.  Keep in mind that in residential real estate the fee is a commission for the sale of the house – no sale should equal no commission.

How much should I spend on marketing?

Marketing is an important investment in your property and a key part of successful sales.

Marketing fees generally start at around $1,000 but can go as high as $5,000 for auctions and high impact marketing campaigns.

Of course, it’s not as simple as throwing money into advertising.

“It is best to use smart money and not dumb dimes,” said Phil Pope, Davey Real Estate’s Sales Champion (2014, 2015, 2016).
“Smart money is about knowing where buyers for the property come from and how to market to them directly.
Dumb dollars are wasted money – that is, marketing where buyers aren’t looking, or advertising the company instead of the property.
Ask the agent for some proof of recent sales and the marketing plan for the property. The marketing plan should be detailed and itemised. After reading it, you should have complete confidence that the property will sell.”

When should I ask about my real estate agent fee?

We asked Sam Hedges – Principal of Davey Real Estate Coastal– when to enquire about selling fees.

“If you are about to sign the listing forms it is often too late to ask for a discount on the fees,” he said.
“It is best to clear up any queries you have on an agents fees at the Market Appraisal stage.  Not all sales people will negotiate their fees but none will resent you for asking.
A good representative will explain to you why they are great value and if you are not convinced, move onto the next agent.”

Other Selling Fees to be aware of:

Alan Bolton (Wembley Settlements) is a 30 year veteran doing settlements for sellers and buyers of residential property. Alan reminds us that there are other selling costs including:

  • Settlement Agent Fees
  • Transfer of Land Fees

For the Buyer some of the costs include rates that relate to now being the proud owner of a property:

  • A portion of your land rates (pro-rated for the year)
  • A portion of your water rates
  • Strata Levies
  • Enquiry fees (for Landgate, Strata inquiries if required)
  • Settlement Agent Fees

If you want to know more about buying and selling property in WA, as well as real estate agent fees, contact Davey Real Estate.


If you would like a up-to-date market appraisal and marketing options for your property CLICK HERE and we can send you a report ONLINE. Use the promo code BLOG to receive a $20 Bunnings or JB HiFi voucher.

*  FREE Voucher for property in the northern suburbs of Perth including suburbs in and around Padbury, North Beach, Greenwood, Currambine, Mt Hawthorn and Scarborough



by Davey Real Estate In Property Management, Residential

14/06/2016 5:31:19 PM

Tips for Investors and Landlords

Vacant

Vacant Property

A vacant property is very costly to the owner and the agent and it is a conflict of emotions for owners. Should they take the agents’ advice and drop the price, or hang on and try to snag a tenant at the higher price? Andrew Davey, General Manager of Davey Real Estate says:

“It is no secret that the rental market in Perth’s northern suburbs is diabolical. Prices in our normally steady suburbs of Carine, Sorrento, Greenwood, Currambine, Doubleview and Mount Hawthorn have been dropping and demand is low – but heeding some advice and following your head and not your heart will lead you to success.”

Negotiate Early

Fortunately, there is much you can do BEFORE you even get yourself in a stalemate with the market. Holding onto a good tenant should be your priority. Do not wait for the tenant to ask for a discount because they would have already looked around by then. Get on the front foot and make an offer. If you have a long term tenant then consider negotiating as much as 6 months out but no less than 3 months. You may find that getting in early may stop you reducing the property as much as you would have had to if you needed to go to the open market. You still need to be prepared to drop your price – even though prices are recovering, they are still going to be below the level the market was when the tenant initially went into the property – it has been a bleak 12 months!

Time to upgrade?

Improving your property is often tax deduction, can increase the value of your overall asset and can halt the rental price drop. Things that are going to improve the tenure of the tenant will be a much better carrot than gimmicks such as a week or two free rent unless you have a property that is similar to many others and there is no other way to distinguish between properties. Some of the items we recommend that are likely to help you find a tenant and increase your return are:

  • Air-conditioning
  • Replacing old and stained curtains
  • Upgrading old carpets
  • Painting walls that are chipped, a bold colour or severely marked
  • Kitchen upgrades – although this needs to be done with care because the costs can easily blow out. Tenants love a space for their dishwasher (if one isn’t already provided) and fridge.
  • Patios – can increase the outdoor living areas and be another “room” in summer
  • Front garden clean up – mulch and pull all weeds out

What to avoid?

  • Pools – expensive to install and to maintain so the return is absorbed in these costs
  • Spas – less expensive but the tenants don’t seem to be that fussed about them
  • Bathroom upgrades – only because they are expensive and you often don’t see a corresponding return. You may see a good return though if you are thinking of selling.

Add the “Pets Allowed” option

It is a smaller market, so why knock out 10% or 20% of it by not allowing pets. When a tenant wants to have a pet, there is an additional pet bond of $260 to protect you and if we pick up any additional dirt or hair on our inspections it is dealt with. It often makes the difference between getting a tenant and not.

Market Hard and early

Our top tips here are:
1. When we recommend a sign, take it. We get lots of calls from people that live nearby that aren’t actively looking.
2. Get professional photography – it is policy for us to do it because it makes such a difference
3. Consider a website upgrade. If the property has been sitting on the market for weeks, then we’ll ask you if you want to upgrade the property to bring it back to the top of search results – combined with a price adjustment it can breath new life into a faltering marketing campaign.
4. Don’t “test the market”. Get the price right and take the pain early otherwise you can take it from us – it will only get worse.

If you want a free rental appraisal on your home in the northern suburbs, please click here

 

Andrew_Davey

About the author: Andrew Davey is a third generation real estate agent and has been involved in real estate since the early 1990’s. He is in touch with his Property Management team daily and has a great grasp on what Landlords need to do to succeed.



by Davey Real Estate In Residential

14/06/2016 5:05:52 PM

Signs of recovery

Source

Source: REIWA

A small drop in the vacancy rate is a step in the right direction for owners of investment property.
We suspect that this is the beginning of a better market in rentals. We have noticed an improvement in the level of enquiry in the last 3 – 4 weeks. Our team has worked very hard to reduce the length of time property is sitting vacant on the market but we simultaneously have noticed an improved rate of applications being received on our vacant property. This is partly due to aggressive price reductions from Owners and also increased demand.

Where to from here?
Over the next three months, we’re still expecting owners will need to reduce their prices, especially the suburbs north of Iluka and Pearsall. There is just not enough people moving into Perth to soak up the supply, and people in these northern suburbs are moving closer to the city as prices drop. In the suburbs south of this we can expect prices to be stable – but be warned – if you have had a tenant in your property for more than 6 months (and that is most of us!), you are still going to need to meet the market. We’re talking about property such as in Scarborough, Padbury, North Beach, Greenwood, Currambine and Mount Hawthorn.

When will prices start to increase?
It is extremely unlikely to see increased prices until summer. We suspect the Christmas rush will give prices a nudge but this will depend on the results of the election, and some bounce back of our fragile WA economy.

Why can we be positive?
1) As usual, much of the main stream media commentary is aimed at the Sydney and Melbourne market. For example, according to media the overseas investors are about to stop investing in Australia – Well they never did much in our part of WA anyway. It will have next to no impact on residential property in the northern beaches where your property is located.
2) The Commonwealth Bank has dropped interest rates for investors by 0.4% – a clear signal that it sees an opportunity for investors to get into the market. It has read the market and determined that their risk as a bank is minimal and is encouraging people to borrow money from them. This is good news.
3) The negative gearing debate is more interesting, and can be a factor going forward. Labors’ talk of scrapping negative gearing will undoubtedly spook investors and will cause a section of the market to sell off their property. Let’s wait and see what party gets in, and what the final negative gearing plan looks like before assuming it is all bad news here. I suspect that if Liberals get in, there will be relief and improved demand for property.

It is worth noting that while the Perth Vacancy Rate average is close to 6%, the Davey Real Estate group is around 4% with some offices nearer 3%. See our blog on how to avoid the vacant property trap. CLICK HERE to read it.

About the author: Andrew Davey is a third generation real estate agent and has been involved in real estate since the early 1990’s.  He has a knack for picking the real estate cycles in Perth and quick look back at his blogs will reveal his foresight in this area.

If you would like a market appraisal for your investment property CLICK HERE and we’ll put you in touch with one of our very capable property managers.



by Davey Real Estate In Residential

20/01/2016 1:55:28 PM

FOR_RENT

 

Glimmers of improvement are starting to show,

Whilst the September Quarter showed an increase in vacancy rate and a decline in the average rental amount it was expected that things would stabilise for the December Quarter and that is exactly what the REIWA statistics are showing. The average rent actually improved by $10 to $410, but Landlords need to be cautious before jumping to conclusions.  Seasonally we see an improvement in the Summer months and unfortunately there has been an increase in the number of rental properties becoming available (a jump of 15% over the last 3 months).

Economic Outlook for Western Australia

BIS Shrapnel reported in December that their research indicates growth will remain below trend for another two years. Their report states that “dwelling investment… is showing signs of peaking in a year’s time” however that is in reference to the eastern states market. We have over-supply of residential sale properties in Perth, prices have already deteriorated so we will not see a “bust”, as they are predicting for some of the eastern states markets.

Interest rates are still favourable for owners of property with loans which will enable them to keep rental prices low and they can afford to hold onto their property. Population growth in WA has also slowed with zero migration from Interstate and reduced overseas migration. It is expected that net migration will settle back to “normal” levels seen prior to the mining boom.

Residential Rental Market 2016 for Perth Metropolitan Area

It is expected that the summer months will continue to show signs of improvement. We expect rental prices to increase in the March quarter before falling again in the winter months. The flood of available properties doesn’t show much sign of abating and that is going to keep prices down.  On the sales side we expect improvement with Consumer Sentiment Index improving (REIWA statistics show November 2015 at 104.7, up 10.4%) and this will lead to even more property being available for rent.  The good news is that we expect that we’ve passed through the “pain point” – the worst is over and prices will stabilise before improving towards the end of the year.

We would not be surprised, and are expecting, medium to good growth for the last quarter of this year in both sales and rental prices.  Sales in particular should be the highlight and we expect increased sales volume, increased prices and less available property at the end of the year.

Who wins?SalesRentals
March Qtr 2016BuyersLandlords
July QtrBuyersTenants
September QtrBuyersTenants
December QtrSellersLandlords

The facts (December Quarter):
Median Weekly Rent:    $410 (Down 2% from the previous quarter)
Davey Median Rent:      $470
Vacancy Rate:                  3.6%
Median Sale Price          $540,000 (Up 1% from the previous quarter)

Davey Real Estate has 6 offices located in the North West suburbs of Perth. We are experts in selling and leasing commercial and residential property in these suburbs.


Pre-Purchase-Building-Inspection

 

At Davey, our staff complete the routine inspections. We often use a third party for the first inspection – the Property Condition Report as it takes up to three hours to do properly and we can get it done cheaper for our Landlords through an outsourced company than doing it ourselves. Professional inspection companies can use up to three people to do one PCR and clearly this is beyond the resources of your average real estate company.

However, routine inspections is a different story. Your real estate company needs to do your routine inspections and our crack PM team of Holly, Jane and Vera have come up with the top 10 reasons why:

  1. We need to get to know your property. If we don’t complete the inspections we don’t get to see the condition of the property first hand. This is important when a tenant rings us and tells us that there is a maintenance issue – we are better able to direct trades people to the problem.
  2. There is a required format for inspection reports that needs to be used.  Since the Residential Tenancy Act was updated, there are now specific requirements for the inspection report.  If these items are missed it can cause some big problems. At best, we’ll need to re-inspect the property (and charge for it) at worst if something like smoke alarm damage is missed there can be fines or worse – a fire occurs.
  3. Direct contact with the tenant is not always a good thing. Once a tenant realises the owner is at the property, they often take the opportunity of bombarding you with requests. It is much more difficult to refuse a tenants request for a reduction in rent when they are right in front of you – and that may only be the beginning.
  4. It will take longer than you think. If professionals can do it in an hour, it will take you at least double this. It will likely take up to three hours if you are going to type it.
  5. Your inspections will not sync with our system. OK so it is more painful for us than the Landlord but all of our inspections are done on an iPad and sync with our servers. We always know where they are and we can update them easily at the next inspection. It saves us time and saves you money.
  6. Did you know where to look for damage? Did you remember to check in the oven for baked-in mess? …and under the mat that is in the middle of the floor that may be hiding a stain, and the poster on the door that is hiding a hole?  And what is that blue stain in the sink and that strange smell? We are trained on what to look for, where to look for damage or even the (unlikely) signs that drugs are being made.
  7. It is a tax deduction!
  8. Do you know your boundaries? A good tenant treats the house like it is their own. If you go poking around in draws or cupboards you may be breaching their privacy. If you start “popping in” to “fix” things then you could be encroaching on the quiet enjoyment a tenant has a right to.
  9. We need to maintain our relationships.  It is not just the property we care about, we also take the opportunity to talk to the tenant. Are they happy or do they give us signals they may be thinking of moving? Are they late with their rent, what is the real reason for this?
  10. Pro-active approach to maintenance and damage. Often we can pick a problem and get it repaired before it becomes an even bigger (more costly) one.  Cracked tiles may also mean leaking into the wall. Leaking pipes, dry lawns, rusting or cluttered gutters, large overhanging trees and leaning fences can all lead to bigger issues.


questionmark

  1. What are your Fees? We discussed fees in an earlier blog and we recommend you read this blog. 
  1. Who is actually managing my property and how much experience do they have?
    Often Property Managers will say that they are “senior” and only have 2 or 3 years of experience.  At Davey we believe Property Managers should have at least 6 years of experience before they call themselves “senior”.
  1. How many tenants do you have in arrears right now?
    You may need to watch body language a little here to pick the Property Manager that is going to make up a number.  A good one will know this information, and unfortunately having zero arrears in this market is unlikely.  It should be low (they may say 2% but you need a number – any more than 5 tenants is too many for an average sized portfolio).
  1. How many leases are expired?
    Again, watch for body language but the answer should be zero. If it isn’t there should be a good explanation for this (a bad tenant that is being evicted can cause problems for example).
  1. How many properties are you managing?
    A very good Property Manager can handle around 140 properties themselves. Sometimes Property Managers have assistants that can assist in pushing these numbers well past this figure, however if they are managing the portfolio on their own then the most you should feel comfortable with is 140. To manage this number of properties, the Property Manager will need to be very efficient and have a good brand behind them. A smaller portfolio does mean that they will have more time to spend on the minor details.
  1. Can you provide me with a sample of your PCR and Inspection and how many inspections are carried out each year?
    The PCR may be outsourced however regardless of who completes this, a PCR should be a very thorough and detailed report. We often refer to the PCR as our “bible” because it is so crucial if there is a dispute with a tenant. Similarly with inspections, the more detail the better and if you need the security of more inspections then 4 per year is plenty.
  1. Do you open homes for inspections after hours?
    In this current market (high vacancy rate) it is crucial that agents are prepared to work after hours to find a tenant for your property. The extra service may be included within the leasing fee, the usual fee of two weeks’ rent is great if a dedicated leasing agent or after hours home open stops your property being vacant for several weeks.

Would you like a rental market update on your property? Please CLICK HERE for a FREE report.



by Davey Real Estate In Residential

11/11/2015 9:12:07 AM

House

We’ve seen rental prices dropping again this quarter. Crucially, REIWA report that there is no immediate relief in sight for the rental market as WA population growth declines. This decline is due to less people moving to WA from interstate.  There is also predicted to be a wave of residential apartments flooding the market that will increase the pain for Landlords, particularly for property located in and around the city.

Our advice this coming quarter to our Landlords is to keep your tenants happy – offer a small price reduction (if recommended by your Property Manager) to keep pace with the market and prevent your tenants from vacating. As mentioned in our previous blog, keep up your maintenance on the property too!

The facts (June Quarter):

Median weekly rent:    $420 (Down 0.3% previous quarter)

Davey Median Rent:    $480

Vacancy Rate:                4.7%

Median Sale Price        $530,000 (Down 2.6% previous quarter)

Davey Real Estate has 6 offices located in the North West suburbs of Perth. We are experts in selling and leasing commercial and residential property in these suburbs.


Fotolia_28398670_S.jpg.opt789x315o0,0s789x315

  1. It improves the quality of tenant that applies for a vacant property.  A neat and well maintained property attracts the kind of people you are looking for especially if the maintenance completed transfers over to better photos that a prospective tenant can see on the websites.  Things like freshly painted walls, new carpet and perhaps the best of all, weeding and mulching the garden are going to be seen by tenants, and appreciated.
  2. It avoids costly repairs in the future. I’ve seen dripping taps go months, sometimes years unreported until there is the green stain down the sink. Now we have one problem turning into two. Leaking roofs, wall cracks and out-of-control tree roots are common minor maintenance items that can become major financial headaches if left unchecked.
  3. You may void your insurance. Some maintenance items, left without action, can result in insurance companies refusing to insure the resulting damage. Simply failing to clean your gutters regularly can have the insurance company asking some direct questions about the maintenance program – and a casual disregard for maintenance may leave an owner red faced and out of pocket.
  4. Lowers the rental value. It is obvious but worth stating. A poorly maintained property is a tenant turn-off. You’ll not only get a bad tenant, but they’ll pay less each week than a comparable property that has had some time and money spent on it.
  5. Results in less break-leases and turn-over of tenants. I have seen dozens of tenants vacate property because they are tired and frustrated at the lack of care shown by a Landlord.  This costs you, the Landlord, plenty – a new leasing fee is often triggered AND chances are you may need to drop the rent to attract a new tenant – not to mention the weeks it may be left vacant without a paying tenant.  Ouch!

Content by Natalie Gage, Senior Property Manager for Davey Real Estate, North Beach, Western Australia.



by Davey Real Estate In Residential

5/11/2015 5:00:41 PM

Property

Property Management Fees are confusing and complex. With so many different fees it is easy to be unsure about what you get for your money.  We are here to peel back the layers and explain the fees and offer an easy solution to take the stress and complexity away.

The “Management Fee” is the main fee that is talked about when leasing your residential property in WA. This fee can be as little as 7.5% up to 9.35% (both including GST)  The difference in the range is usually to do with the experience and skills of the Property Manager.  It is unlikely to find an experienced and efficient “senior” Property Manager that will manage your property for under the 9% range. By the way, many Property Managers call themselves “senior” when they don’t have a lot of experience.  At Davey Real Estate we don’t give our PM’s the “senior” title unless they have 6+ years of experience within the industry.  It is an important question to ask of the company and the Property Manager – “how long have you been managing property and how long has your company been managing property?”

The other important fee to consider is the “Leasing Fee”. This is the fee charged for leasing your property and is usually not included in the management fee. This, on average, is two weeks rent. So if you are getting $400 per week in rent for your property, then the leasing fee will be $800 and this is paid once a tenant has been secured and has started paying their rent.

A “Lease Renewal Fee” is often applicable on most properties too.  This fee applies when a tenant renews their lease and covers for the negotiation and research that is put into the process. In a rising market, a bad Property Manager will not keep up with the market trends and you will miss out on money. A good Property Manager will complete a Comparative Market Analysis and educate the tenant on the updated market. They will then enter into negotiation on behalf of the Landlord to ensure that you are getting the most value for your investment.

Other fees that are common in Perth are Admin Fees (usually less than $10 per month), Marketing Charges (usually at cost) and the Annual Financial Statement (we have heard this charge can be up to $50).

How can I save on property management fees in Perth?

Natalie Gage (Senior Property Manager, Davey Real Estate North Beach) says “There are a couple of ways of saving on the fee. The most obvious is if you have multiple investment properties, nearly all agents will discount to get your second or third property.  The more properties you have, the higher the discount.”

Holly Mennell (Property Manager, Davey Real Estate Coastal) suggests that “some agents (such as Davey Real Estate) can provide a simple fee – all the fees are bundled into one fee and often it is a cheaper way to go – it is certainly easier to budget and understand.”

Signing a long term management authority will often lock you into today’s rates and you will avoid future fee increases. You should also look for long term tenants with long lease terms as this will also save you a considerable amount of money – usually up to two weeks rent every year!

Avoid the “Management Fee” Rip Off

There are some agents out there in the northern suburbs of Perth charging their management fee on ALL INVOICES not just the incoming rent. That means you can add 10% to your insurance, your water bills, your cleaning and anything else they arrange for you on your behalf.  Be particularly weary of this with flat fees of 10% or amazingly low management fees.  We think it is a little cheeky.  That system may suit you but be careful to compare apples with apples when doing your homework.

For a full explanation of all fees and the average costs, please email us today at rentals@daveyre.com.au.
For a FREE Market Appraisal on your investment, CLICK HERE and use promo code BLOG to get a free $20 Bunnings or JB HiFi voucher


Broken_Lease

There has been a significant increase in broken leases in WA over the past 12 months, which has major implications for landlords and tenants alike.

No matter what side of the fence you’re on, this information will give you a better understanding of what to do, and what not to do if a lease is broken.

What does ‘breaking a lease’ mean?

Breaking a lease is what happens when a tenant moves out before the end of a fixed-term lease agreement, or without giving the landlord appropriate notice.

Broken leases in WA’s real estate market

We asked Sara Young – Director of Davey Real Estate’s Currambine office – why more people in WA are breaking leases.

“There are various reasons that I believe are contributing to the trend,” she said.
“The job cutbacks in the resource sector has seen a large number of people unexpectedly leave WA, and as a result, they end their leases prematurely.”

Sara said low interest rates had an impact too.

“This, along with tenants choosing to take advantage of record low interest rates and purchase homes, has seen the supply of rentals increasing to the highest level in six years,” she said.
“Plus, the oversupply [of rental properties] has caused prices to drop substantially, which many tenants are choosing to take advantage of mid-lease.”

I am breaking a lease in WA. What should I do? 

Sara has some helpful advice for tenants who are considering breaking a lease.

“If you are thinking of moving to a cheaper property, talk to your property manager first,” she said.
“Make sure you are aware of the costs involved and your liabilities.”

Sara explained what happens when you break a lease.

“Properties can take a considerable time to rent, and you are liable to pay the rent until a new tenant moves in, so you may end up out of pocket,” she said.
“The landlord may consider a price reduction to keep you as a tenant, so it is worth having the conversation first before you commit to another property.”

What should you do if your tenant breaks their lease?

“Break-leases can be very frustrating for landlords,” Sara said. “However, as a landlord you have to be seen to mitigate your tenant’s loss and be seen to be helping secure a new tenant.

“The rent you can achieve in the current market may be considerably less than what your current tenant pays, so you may need to advertise at the market rent.”

For more property advice from our WA real estate agents, contact Davey Real Estate.



by Davey Real Estate In Residential

24/08/2015 2:51:49 PM

0108_FRA9977
Davey Real Estate celebrated its 40th birthday in style at the Novotel Langley Ballroom this month. iKatcher Events transformed the ballroom into a truly glamorous soiree, where more than a hundred staff, family and honoured guests celebrated the achievements and dedication of Davey’s people.

The evening began with welcome drinks and red carpet arrival photos of Davey staff, their partners & honoured guests. Inside the ballroom, Ola the Magician impressed the crowd with his amazing sleight of hand. Andrew and Mal Davey took to the stage soon after, where they shared the story of Davey Real Estate’s founder, Peg Davey, who launched the Western Australian real estate company back in 1975. At that time, Peg was the first woman in the state to hold a real estate license.

2015 marks a special year for Davey Real Estate, as the team celebrates its legacy as one of the longest serving residential real estate companies in WA.

Davey would like to extend a thank you to all of the sponsors who supported the awards, including Domain, REIWA, EBM Insurance, Rockend, Byfields, First Choice Electrics, Open2View, Macquarie Bank, Asset Reports and Netlink. The group would also like to extend a huge congratulations to all of our staff who won awards on the evening.

Your hard work, dedication and commitment to helping people excel in the WA real estate market is what makes Davey Real Estate stronger every year!

Head to our Facebook page to see more pictures of the night.



by Davey Real Estate In Residential

11/08/2015 2:19:29 PM

Perth

A leading economic and property modelling firm has predicted that the Perth rental market will drop for the next three years. BIS Shrapnel released their research this month and it is good news for tenants.

Perth and Canberra have been bucking the general trend of increased property values and rental values. Perth had over 2,000 more rental vacancies in August than at the same time last year – that is 30% more property available! The graph hereabouts (source: REIWA) shows that the median house rent has already plummeted this year to $430, down from $450 in March.

And for a Landlord the hits keep on coming. The trend is unlikely to change in the short term. BIS Shrapnel expect median house prices to drop 3% to June 2018 and rental prices to be even worse with a 10% reduction predicted. It is a boom for renters – except those that want to break their lease.  Break leasers will find it increasingly difficult to find a replacement tenant, meaning they may be stuck paying rent for several weeks.

The good news?

Well if there is to be any good news it is that after this 3 years of Landlord pain the market should stabilise, according to BIS Shrapnel. It may even be a better market than the eastern states markets that are expected to come off the boil at the same time.

Advice to our Landlords?

Sara Young from our Currambine Office has the following recommendations:

We agree with most of the research.  We suspect the reductions from here on will not be quite as severe as suggested.  However, plan for a reduction in rent when your tenant vacates. If you suspect you were getting rent well over the market then consider approaching your tenant early with a reduced rent offer prior to the end of the lease. Start this process 6 months out if you have a long term tenant.


real-estate-jargon

The acronyms and terms used in the world of property can be more than a little confusing. Ever wondered what the meaning of a conjunctional sale is, what about the meaning of a subject to sale offer and how it works. If you’d like a word or acronym defined, that is not already listed here, please email us.

Real estate definitions for sellers and buyers in WA

  • Bidder – Someone who makes a bid at an auction.
  • Buyers’ Agent – This is where a real estate representative is working for the Buyer, not the seller. As such, the agent is paid by the Buyer. Their job is to get the best deal for the buyer whereas an Selling Agent is trying to achieve the best outcome for the Seller, within reason.
  • Clauses – these are sections of the Offer and Acceptance that contain conditions, warnings, awareness clauses or other things that need to be done before settlement. A clause may be as simple as making sure the Buyer and Seller all have the correct documents to something as complicated as a subject sale clause (see below)
  • Conditions of Sale – these are items that must be attended to before settlement (see definition below) can occur. It may be a condition that a building report be done on the property for example.
  • Conjunction (also Conjunctional Sale or Conjunctional Agent)- This is a real estate term for when a sales representative from another agency brings a buyer to a property being sold by an agent.  The other agent will share in the commission – the split is determined by the agents. It is used less in WA today than it used to be 5 years ago.
  • Contract of Sale – A written agreement that details the terms and conditions of a property’s sale or purchase.
  • Counter Offer – This is when the Seller doesn’t immediately accept your offer but comes back with you with a
  • End Date Sale – A method of sale where all offers are collected by the agent and presented to the seller of the property. The seller then chooses the best offer. This tender process is also known as ‘Set Date Sale’.
  • EOI – Expressions of Interest. This is a method of sale where interested buyers make their best offer in writing to the agent. Sometimes a closing date is advertised, often there is none. Buyers can negotiate conditions of the sale. It is often used when the Seller or the Agent thinks putting a price on it may limit the properties ability to be sold at a higher price. For example, if the property has a great view, pricing a view is very difficult.
  • O & A or Offer & Acceptance – this is the form that is completed when you make on offer on a property. You make an offer and the Seller may accept it (or make a counter offer)
  • Passed In – When a property fails to sell at auction because the highest bid doesn’t meet the reserve price.
  • POA – Price on Application. This may be put on the real estate listing instead of an asking price. It means buyers need to call the real estate agent to get the price.
  • Private Treaty – not a word you hear often but it is actually the most common way of selling a property in WA. It means offering your property for sale at a price and accepting offers at any time.
  • Reserve Price – The minimum price that the seller is willing to sell the property for at auction. The seller sets this price with the agent.
  • Cash – the term ‘cash’ doesn’t mean physical dollars and cents. It includes any appropriate form of payment, such as Eftpos, bank transfer or cheque. You’ll hear the term used at Auction, For Sale by Treaty and when selling by other methods too. Confusingly it is possible to get finance from a bank and still make a “cash offer”,
  • Market Appraisal – This is an estimate of the selling price of a property if it was placed on the market “today”. It is based on recent sales and also what is currently available for sale. Factors such as the marketing plan chosen, timing and motivation are taken into account.  It is not to be used as a valuation as a valuers license is needed to do these formal proposals.
  • Set Date Sale – A method of sale where all offers are collected by the agent and presented to the seller of the property. The seller then chooses the best offer. This tender process is also known as ‘End Date Sale’.
  • Settlement – When the sale of a property is finalised by the buyer’s and seller’s respective legal representatives (in WA we call them Settlement Agents, we recommend Wembley Settlements). The new owner can move in when settlement is finalised.
  • Stamp duty – A state tax applied to the transfer of property. Legally, this must be paid within 30-days of settlement.
  • Subject To Sale Offer – This is when the Buyer needs to sell a property before they can proceed to settlement. A full explanation of this can be found here from REIWA.
  • Under Bidder – Technically everyone who makes a bid lower than the top bid is an under bidder, but the term usually refers to the second-highest bidder. It’s a good idea to keep under bidders around during negotiations in case the top bidder doesn’t end up buying the property for some reason.
  • 48 Hour Clause – We’ve saved the best until last. This is one of the most complex, but very useful, clauses. It is used together with a “subject to sale offer”.  See link above for “subject to sale offer” for full outline.

Here you can find plenty of comprehensive definitions for Buyers and Sellers

If you would like to know what real estate agent selling fees in Perth are, click on the link to go to the blog.

For more information about the WA property market, contact the experts at Davey Real Estate.
We can email you a FREE ONLINE MARKET APPRAISAL by clicking the link. Use promo code BLOG to also receive a $20 voucher to JB HiFi or Bunnings. Only for northern suburbs property in Perth, WA.



by Davey Real Estate In Residential

10/07/2015 12:40:57 PM

Perth

The Elizabeth Quay and Perth Stadium developments are changing the face of Perth. But will their presence impact property prices in WA? We’ve been speculating about this one for a while now, so we thought it was about time to put our opinions into blog form.

The impact on property in WA

The additional amenities and infrastructure that accompany these kinds of major developments are likely to make properties immediately around Elizabeth Quay and the Burswood area more appealing to potential buyers.

In saying this, we expect the impact on property price to be only minor. We can look to the Docklands development in Melbourne and even Hillarys Boat Harbour (on a much smaller scale), as past case studies to compare.

In both cases, these developments were followed by increased demand in the suburbs surrounding them.

Spotlight on Elizabeth Quay

The State Government is revitalising this area, which runs roughly from the Bell Tower, all the way down to the Perth Convention Centre. The development will feature:

  • An inlet connected by 1.5 kilometres of boardwalk.
  • Open public spaces for people to enjoy.
  • Hotel and short stay accommodation options for tourists.
  • Residential properties for sale and rent.
  • An island, with a kiosk, kid’s playground and views of the city.

The Government hopes to generate 4,000 plus jobs during construction of the project. And aims to attract over $2billion in private investment funding.

Elizabeth Quay is scheduled for completion late this year. Find out more about the project here.1

The facts on Perth Stadium

Perth Stadium is the crowning glory of the Burswood Peninsula redevelopment. The stadium will be a major entertainment and sporting hub, designed to attract large-scale events from all over the world.

The Government has been careful to integrate public transport solutions into the build, so fans can travel to and fro without the usual event congestion.

Other specs include:

  • Capacity for 60,000 fans. (This may increase to 70,000.)
  • World-class amenities designed to make the stadium amongst the best in Australia.
  • For more information visit this website.2

Final word

On the back of increased tourism, employment and better infrastructure, we predict these completed developments will have a positive effect on the Perth economy. We also predict that benefits are likely to flow to Perth suburbs such as Mount Hawthorn and Scarborough, but probably not far beyond these areas.

Contact our Perth real estate agents3 for more insights into the WA property market.



by Davey Real Estate In Residential

3/07/2015 3:39:32 PM

Make-offer-to-purchase-real-estate

Exactly where to start your negotiation is a tricky one. We have put together a checklist, based on what seasoned investors do when they’re preparing to make an offer.

Ask each of the questions below before you make any offer on a property.

  1. How long has the property been on the market?

If it’s been on the market for a few months, there is probably a pricing issue with the property.

  1. Why are the owners selling?

You won’t always get an answer to this one. But it’s worth asking anyway. If they’ve just purchased another property, they may be motivated to take a lower offer.

  1. How many people are at the home open?

A busy home open means greater buyer interest in a property. This is likely to make the price less negotiable.

  1. What did the property last sell for?

REIWA.com.au1 has free, publicly available information on the selling prices of properties in WA. If the property was sold in the past 5 years, then it’s selling price should not have changed much. (Unless major improvements have been made that add-value to the home.)

  1. How does it compare to similar properties?

This final question is key. We recommend heading to REIWA.com.au to discover the selling prices of similar properties in the area. If the property you’re looking at is priced way over these properties, then it’s probably overvalued.

  1. Now I have the right information, what do I do?
  • You’ve done your due diligence, so head into the negotiation process with confidence.
  • If you have discovered that the property is priced right, then you may choose to make a full priced offer.
  • If your research evidences that the property is overpriced, don’t be afraid to offer a low amount.

Case Study: Bidding lower

“I once saw a counter offer come back from the sellers $1 million under the original asking price,” said Davey Real Estate General Manager Andrew Davey.
“They were asking for $3.2 million and the buyer offered $1.8 million.”

In this case, the buyer had evidence to support his lower bid, and the seller came back with a counter offer of $2.2 million.

“The property sold for somewhere between $1.8 million and $2.2 million,” said Andrew.

Final Word: Finance Matters

We asked Davey Real Estate Scarborough Director Tim Schifferli to add his insights on buying smarter in WA.

“Have your finance arrangements in place before you make an offer, so you can make the offer with confidence,” he said.
“If you’re renting, do you know your lease arrangements and the termination-date of your lease? Do you have a deposit? Do you have a settlement agent? If you are organised, you’ll be in a better position to place an offer when the right home comes along.”

For more buying and selling tips from our WA real estate agents, contact Davey Real Estate.



by Davey Real Estate In Residential

18/06/2015 5:19:37 PM

FIFO-workers

WA had a great run during the mining boom. While the rest of Australia coughed and spluttered its way to average growth, the WA property market flourished.

Of course, we all know things have changed now.

But beyond the inevitable ebb and flow of any market, why has WA been hit so hard? And is there a silver lining for us?

We’ve dealt with some of the tougher questions in our latest blog.

The state of property in WA

When the mining boom came to a halt, WA began to experience an over-supply of property. Basic economics says that when supply exceeds demand, prices fall.

Davey Real Estate General Manager Andrew Davey explained the concept in more detail.

“It’s not the rate of property hitting the market that is the problem, it is the lack of demand soaking it up that has caused the glut,” he said.
“When there is little demand keeping prices on the upward march, they [property prices] inevitably drop in price.”

What’s the link between the mining boom and real estate in WA?

Andrew explained that the connection is relatively simple.

“There are two reasons for the drop in demand; first and foremost, the constant stream of people moving into WA to take up mining jobs has slowed,” he said.
“These people needed somewhere to live, so they either bought or rented. High rental prices made property attractive to investors, which therefore created more demand for property.”

According to Andrew, immigration is another factor driving property prices down in WA.

“The Australian Bureau of Statistics states that immigration has dropped to levels not seen in 12 years,” he said.
“And unfortunately, the forecast is not too bright in the long term.”

Is there a silver lining?

The short answer is yes.

“Keen investors time the bottom of the market and buy when everyone else is bunkering down,” explained Andrew.
“If you are an investor it could soon be time to get busy.”

First homebuyers are in an incredibly good position too. Mainly thanks to wages rising slowly, or at least remaining firm, and other prices coming down, like petrol, interest rates, some groceries and property.

“We are actually better off from an affordability point of view,” Andrew said.
“For first home buyers, it hasn’t been this good since 2011, when the market experienced its last trough.”

How to succeed in the WA property market

Getting advice from a property expert with a realistic understanding of where the market is at is vital to achieving success. An experienced agent knows how to get the most out of an investment opportunity, even in challenging market conditions.

For more honest opinions about the WA property market, check out our blog. Or contact Davey Real Estate.



by Davey Real Estate In Residential, Sales

8/06/2015 4:11:54 PM

HomeForSaleSign

Ignore what you’ve been hearing about property in the Eastern states – right here in Perth, it’s a buyer’s market. That means sellers can have a property on the market for up to 2 or 3 months before closing any kind of deal.

How long is too long?

If your property has been on the market for a while, you’re probably concerned about how and when it will sell. But also, whether you will achieve a good price, or at the very least, market value.

It’s important to note that if your property did not receive substantial interest in the first month it was listed, it’s unlikely to receive a sudden wave of new interest in month 2.

If this has happened to your listing, now is the time to act.

Yes, you only need one buyer to make sale, but getting the right buyer is a numbers game. One solitary buyer is unlikely to pay top dollar for a property. A property that’s been sitting on the market for a long time doesn’t evoke urgency in buyers. And when there’s not urgency, there’s no real impetus for buyers to act. Good real estate agents know this.

Luckily there are strategies that will improve your chances of selling, even if your dwelling has been listed for a long period of time. Davey Real Estate General Manager Andrew Davey shared his tips for getting a dormant property sold in weeks.

1. Respond to buyer feedback

If your property has been on the market for a while, you’ve probably been privy to a fair share of opinions from people. Perhaps your agent has mentioned that prospective buyers aren’t taking to the colour scheme.

While it’s never nice to hear this kind of feedback, it’s important to remember that your ultimate goal is a successful sale. If a feature wall isn’t to everyone’s taste, then bite the bullet and grab a paintbrush (or hire a painter).

Choose a neutral colour that is unlikely to make a statement. If you can make a property appeal to a broader number of people, you will attract more prospective buyers. The same advice goes for untidy gardens, 70’s era carpets and smelly kitchens. (Most people only like the smell of curry when they’re eating it!)

2. Reduce price

Advertising a property as ‘price reduced’ has a number of benefits. The first is obvious – new people are likely to inquire, generating fresh selling opportunities. Your real estate agent can also contact everyone who has already shown interest in the property, and let them know about the reduced price.

Tapping into databases this way is a valuable tool. In most cases, it doesn’t matter how much the price reduction is, just that it’s been reduced in some way.

3. De-clutter and hire furniture

If prospective buyers haven’t commented on the colour scheme or design of your property, then it may be the décor that is putting them off. Once again, try to put your feelings aside on this and think about the end result – selling for more.

Store away personal photos and items that don’t have a broad appeal. This makes it easier for people to imagine themselves making a life in the home.

Hiring furniture is another great option. Yes, it can be expensive, but so is lowering your price by $10,000. The charm and style achieved by a good home stylist can make a big difference to your home’s appeal.

4. Fewer home opens

Now we’re back at the concept of ‘urgency’. If lots of people are viewing a home at once, they will notice. This creates an atmosphere of competition. When you re-launch the property, try to get everyone at the one home open at once.

If your property has been on the market for a while, contact Davey Real Estate for effective selling strategies.1



by Davey Real Estate In Residential

3/06/2015 4:34:26 PM

the-block

 

 

 

Love or hate it, Australian reality TV series ‘The Block’ has around 1 million people tuning in to every episode. Last season we saw Darren and Deanne auction off their South Yarra (VIC) apartment for $2.29 million – a record price for any contestant since the show started 10 seasons ago.

In fact, each couple on The Block managed to come away with an impressive windfall. Here are the stats.

  1. Darren and Deanne
  • Reserve: $1.455m
  • Auction Result: $2.29m
  • Profit: $835,000
  1. Josh and Charlotte
  • Reserve: $1.39m
  • Auction Result: $2.2m
  • Profit: $810,000
  1. Tim and Anastasia
  • Reserve: $1.42m
  • Auction Result: $2.175m
  • Profit: $755,000
  1. Ayden and Jess
  • Reserve: $1.335m
  • Auction Result: $2.175m
  • Profit: $665,000

So given that the ‘losers’ of the show came away with well over half a million dollars in profit, how come Joe Blow from Palmyra only just broken even selling his newly renovated duplex?

We asked Davey North Beach Director Phil Pope and Davey Scarborough Real Estate Agent David Speyers for answers.

Davey Real Estate: Do you think strategies used on The Block work in Perth’s property market?

Phil Pope: If buying a property and renovating it, then selling it to make a profit is considered a strategy, then I would say no. Unless you have the assistance of free trades, or if you’re a tradesperson yourself, it would be a high-risk exercise to purchase a property, pay stamp duty etc and then spend money on areas that could overcapitalise the property.

David Speyers: As I wasn’t privy to the marketing campaign, the only thing I know was that they auctioned the apartments. My understanding is that the Melbourne property market is much stronger than the Perth market at the moment, so I don’t believe we would get anywhere near as good a result right at this point in time. However, if our market was also strong then I believe the Auction process would be well suited to these sorts of apartments.

DR: Why do you think the Perth property market differs to the Eastern States?

PP: Auctions are more acceptable on the East Coast. This is not so much the case on the West Coast, which means having an auction will reduce the viable market [those wishing to contend for the property].

DS: At the moment WA’s slowing economy is the main difference between our property market and that of the Eastern states. The mining downturn has had a greater impact on WA than other states.

WA Sellers are Different

So it looks like even though The Block is a nail biting watch with exceptional results for its contestants, it’s not necessarily relevant to the WA property market. We asked David to share his tips for selling in Western Australia’s softer marketing conditions.

David’s Top Tips for WA Sellers

1. Be reasonable with your asking price.
Price too high to begin with and you will most likely end up selling for less than if you had priced the property reasonably from the start.

2. Property presentation is everything.
Hired furniture for styling is really taking off. This small difference gives some properties a real edge over others.

 3. Develop a relationship with an agent.
It’s important to trust your agent well before you go to sell. Don’t invite 3 unknown agents to appraise your home and then choose the ‘middle’ or highest appraisal. This can leave you unstuck.

4. Trust your agent when it comes to pricing.
Scanning a property for 15 minutes online can lead you astray. Plenty of these properties are over priced, so pricing yours accordingly could lead you down the same path.

For more selling strategies from our property experts, contact Davey Real Estate.1



by Davey Real Estate In Residential

4/05/2015 2:00:25 PM

Our Property Managers swapped the office for the outdoors on Friday 17 April, all in the name of a ‘renovation rescue’ for the Cancer Council of Western Australia.

“Our staff were made aware that they would not be in the office that day, but they didn’t know what the day would entail until we briefed them that morning,” said event organiser Lisa Finnigan.

The brief was simple. Give three brave West Australian women suffering from cancer a backyard makeover.

Davey Real Estate Currambine Principal Sara Young explained why the initiative mattered to her and her team.

“We wanted to create a space where these women could take time for themselves, and also enjoy with their families,” Sara said.
“We painted benches, hung outside blinds, transformed courtyards and tidied and weeded gardens.”

Sara’s team was given the challenge of transforming Heidi’s backyard. Heidi, who is in remission from throat cancer, wanted an outdoor space to enjoy with her son and four foster kids.

“Some talented members of the team hand painted a basketball court for the children,” Sara said.
“It was a real honour to help Heidi, who through her own battle, has still managed to give back to the community through fostering.”

Giving back to the community is important to the people at Davey Real Estate.

“Our livelihood relies on the community giving us work and we see this as a way of giving back to the community,” said Davey Real Estate Director Andrew Davey.

“In particular we have a long connection with the Cancer Council of WA, dating back to the first Australia Day breakfast in 1995.”

Andrew’s grandmother Peg Davey used the services of the Cancer Council during her battle with the disease many years ago.

“Every person has or knows someone who has fought the disease, or who has unfortunately lost their life battling this disease,” said Lisa.
“This is why everyone who helped out had a real vested personal interest in making the dreams of the people involved come true.”

The other 2 teams worked hard to transform the gardens of Chantelle, who is in the final stages of cervical cancer, and Carol, who is currently undergoing chemo treatment.

“It isn’t often you find yourself in the position to be able to assist the greater community, and because of the ‘Property Manager’s Big Day Out’, we were able to do so,” said Lisa.

“This is certainly something I am proud of, and I will remember it for the rest of my life.”

To find out more about the Cancer Council of Western Australia, please visit www.cancerwa.asn.au. 



by Davey Real Estate In Residential

30/03/2015 12:38:26 PM

HouseAround the dinner tables the question as to what the residential market is going to experience in the next 12 months or so is a common one to ask someone that works in the industry.

For a real estate agency, whether the price of property goes up or down is a moot point – we just want people to transact.  When the market moves rapidly either way it triggers selling and or buying action.  The worst scenario for a real estate agency is for nothing to happen – that is that prices don’t move much either way or worse slowly decline.  And guess what – the latter is exactly what we are experiencing right now – slowly but surely declining property prices.  Expert opinion (REIWA) and common sense would indicate that the market is likely to stay this way for most of the year – with residential house values and rental values looking set to decline over the period.

The good news is that for first home buyers, getting into property will become more affordable.  Investors will be monitoring the market very closely, looking for the bottom.  We are not there yet and our best guess is that it will come in the latter part of the year.

Why sell now?

If you aren’t needing to sell for a couple of years, then there is not much incentive to sell.  However if you have plans of reinvesting your money into other areas then selling now can make sense before your property loses any more value.  It is also a great time to upgrade but we would advise you to sell first then look into where to buy.

Why buy now?

If you are an investor looking to get a return on your investment through capital growth or rental return you are going to have to wait it out.  Developers will pause on projects and wait for the market to adjust but bigger projects are likely to proceed as by the time the development is ready we should have been through the worst and start to see prices increasing again.



by Davey Real Estate In Welcome Post

6/03/2015 2:04:01 PM

..And we are live!

The new Davey Real Estate website has arrived. In our 40th year of real estate we thought it was about time we updated our website and we have based our upgrades on feedback received from our staff and clients.  We have made it much easier for our clients to find our friendly staff and have added some great features for clients to access the information they are looking for.

The website is a virtual window into our 7 offices and the wonderful people within them, it is also a great way to find information about our commercial and residential properties for lease, for sale and for auction.

In a first for REIWA (who have built our website) and perhaps WA, our website is the first Residential and Commercial Real Estate Agency Website to be available on all popular platforms – iOS, Android, Windows Mobile and of course Desktop.

You will notice we have two new offices added to the group. These two brand new offices are located in Currambine and Mount Hawthorn, adding to our 5 offices located in North Beach, Padbury, Greenwood, Wanneroo and Scarborough.

A big thank you to Lisa Finnigan for her efforts in getting this website up and running; We would also like to thank REIWA.com.au for their brilliance and multiple ideas, especially Phil Knight.  Phil Knight has been patient and tenacious in getting our website completed and we certainly could not have done it without him!


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