Scott Walkom

Townhouse For Lease 2/25 Brown Street Newcastle this property has leased

TOWNHOUSE FOR LEASE 2/25 BROWN STREET NEWCASTLE

2/25 Brown Street Newcastle, Nsw

Townhouse Rent – leased

2/25 Brown Street Newcastle, NswIN THE HEART OF THE CITY

This sophisticated three bedroom townhouse oozes quality and style. The property features modern kitchen with dishwasher, open plan living with timber floors that flow out to the low maintenance private courtyard. The living area has reverse cycle air conditioning with internal access from the double auto garage below. The Master Bedroom has an ensuite and enormous walk in wardrobe, all three bedrooms have ceiling fans. This is a must to inspect.

We now accept 1Form, please apply online at www.walkom.com.au

***REGISTER FOR AN INSPECTION ONLINE AT WALKOM.COM.AU***

Townhouse For Lease 2/25 Brown Street Newcastle

Rental Enquiries


Scott Walkom

Property Market Update – November/December 2016

mailchimp2

 

6% pa Median house price average growth in Newcastle Local Government Area (Sept Qtr)

5% pa Median house price average growth in Lake Macquarie (LGA). (Sept Qtr)

 

newcastle-house-prices

 

 

 

 

 

 

 

 

 

 

Positive factors driving the property market;

  • Low mortgage rates – lowest rates since the 1960’s
  • Investors a large part of the market – 48% of new mortgages are to investors (Last year 55%)
  • Low stock levels – less property for sale means more competition from buyers and a sense of urgency for buyers to purchase quickly. The number of sales transactions in Sydney are down 18% compared to last year and in Melbourne they are down 20%.
  • Locally, the Newcastle inner city revitalisation work such as; the Wickham transport interchange, light rail project, and the University Campus (opens late 2017) are creating huge interest in Newcastle.

Some head winds effecting the market;

  • Banks have tightened lending policies and require larger deposits
  • Supply levels may trend higher as approvals move through construction phase
  • Rental yields are at record lows and may act as a disincentive. Gross yields on houses are 3% in Sydney and Melbourne.
  • Housing affordability is becoming stretched as prices out pace household income growth.
  • Offshore investors are now a smaller component of the property market due to stricter lending policies and government rules.

Summary
‘Despite these headwinds, with conservative asset classes like cash or government bonds offering low returns and share markets remaining volatile, it’s likely that housing investment will continue to be a popular option. Although gross rental yields are at historic lows, they remain higher than rates for cash deposits and are quite attractive when you factor in the growth in home values as well as the yield, especially if investors are using larger deposits.’

Sources
Corelogic / NAB Business Research and Insights. Australian housing market update. October 17, 2016.
Hunter Research Foundation September Qtr 2016 Hunter Economy Update

 

To see our full market report for the November/December follow this link 

 

 


Scott Walkom

The Grounds

15039476_1334895709863519_5623240432771853257_o

 

 

 

 

 

 

 

 

 

 

 

Fantastic opportunity to purchase a selection of 1 & 2 bedroom apartments and 2 bedroom townhouses, with car parking. Right near the University of Newcastle. Pricing; 1 bedroom apt from $355,000, 2 bedroom apt from $395,000& 2 bedroom Townhouse from $405,000. Call Stephen Henderson 0411573538 or stephen.henderson@walkom.com.au

 

http://bit.ly/2eyN67r

 

 


Scott Walkom

Clarendene

3849-exterior-longworth-cowper-6850-1115-labelled-artist-impression

 

 

 

 

 

 

 

 

 

Another exciting new development in the booming suburb of Wallsend! Clarendene offers 2 and 3 bedroom spacious townhouses with 2 bathrooms plus an extra w/c in Laundry, open plan living, contemporary design throughout, lock up garaging and generous courtyards for entertaining.
To find out more contact Stephen Henderson on 0411 573 538 or stephen.henderson@walkom.com.au

http://bit.ly/2eMiOmK

 


Scott Walkom

PROPERTY MARKET UPDATE AND FORECAST – SEPTEMBER 16

mailchimp

 

 

 

 

 

 

 

 

 

Interest Rate – Outlook
One of the biggest drivers of the recent large gains in the property market has been the reduction in interest rates combined with the flight to property as a more secure investment source since the GFC. Low interest rates have been locked in by countries around the world to kick start lagging economic growth.

In a recent update from BIS Shrapnel (September 16) they advise that interest rates are forecast ‘to stay lower for longer’ with some further cuts in rates to come. This is supported by Macquarie Securities (Australia) in August 16 suggesting that a rate cut may occur in early 2017.

The eventual rise in US bond rates will flow to Australian bonds but the US Fed is extremely cautious and the RBA has a buffer due to our contained inflation (1%) and hence rates in Australia won’t raise until our growth strengthens, which is great news for property buyers.

 

australian-housing-lending-rates

 

 

 

 

 

 

 

 

 

 

Property Prices
As interest rates have declined in recent years, asset prices (property) have risen. This is evident from the Quarterly Median House Price – Sydney rising around 50.8% from 2012 to 2015, from $662,500 to $1,051,000. (Newcastle rose 27.7%). Residential gross rental yields have fallen to around 3% from   4.5-5% in past years.

Forecast
The forecast for Sydney property prices on average is largely flat for the next two years to 2018, based on BIS Shrapnel September review. There may be some reductions in apartment prices offset by increases in detached Home prices.  We think this forecast can be adopted for the Newcastle market as well.

The Newcastle market is benefiting greatly by the infrastructure projects underway, such as the new transport hub at Wickham, the light rail Wickham to Newcastle beach, the newly completed Court House ($95M) at Civic and the University CBD campus (Auckland St). These projects are giving the CBD a large influx of people (the Uni alone is 3000 students) and we think this will completely transform the CBD within 18 months into a vibrant place to work and live. Hence property investors are very buoyant about Newcastle’s growth prospects.

Rents
Rental yields have fallen in recent years. With current yields for residential property in Sydney being 3.1% and Melbourne 2.9% (Corelogic July 16).

So why are rents so low?
We are currently seeing the softest wages growth on record;

  • Relatively high levels of housing investment following record highs recently;
  • Historically high levels of new dwelling construction (most of which are units which are more than twice as likely to be rented);
  • Slowing population growth which creates less overall demand for housing;
  • Dwelling commencements & the number of dwellings under construction at historic high levels in March 2016.

Mr Kusher from Corelogic said, “Once again the combination of all these factors means that landlords have little scope to increase rental rates in this current market.”

In Newcastle, several newly constructed apartment blocks which will add to the supply of residential property; these come onto the market in the next two years. So landlords will need to be very competitive with apartment rents for some period to come.

Source:
BIS Shrapnel, Economic Outlook and Building Industry Prospects September 2016
Macquarie Securities(Australia) Ltd,  Aussie Macro Moments, July 16
Corelogic :  www.corelogic, News, Rent August 16

To see our full market report for the month of September follow this link