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Property Newsletter – March 2018
March 20, 2018 | 
Author REIWA forecasts upturn in WA home building in latest sign the property market has bottomed out
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Tradies say they are starting to see an upturn in demand for their services, as the state’s peak real estate body preaches cautious optimism about improvement in the WA property market.
Both the Real Estate Institute of WA and the Housing Industry Association predict that a recent rise in residential building is here to stay.
An increase of seven percent in home dwellings construction is predicted for the next financial year.
“We’ve seen a lot of increases in quotes from most of our builders,” tradie Clayton Pinney told 7 News Perth.
Perth is now the most affordable state capital to build in and prospective homeowners are taking the plunge.
Craig Muir just received the keys to his new home in Trigg and made the decision to build because prices were low and competition high.
“They’ve delivered a great product, at a great price. It’s been a really good experience,” he told 7 News Perth.
REWIA predicts the amount of homes built in WA will continue to increase and that there will also be a rise in pre-existing homes sold in the next few months.
They say the cause is a gradual increase in WA’s population.
The forecast coincides with The Chamber of Commerce and Industry’s review, which projects WA’s economy will grow 0.9 per cent next year, and 2 per cent the year after that.
The HIA predict for the first time in three years, housing-starts will begin to increase, but we won’t see apartment developments until at least 2019.
“Buyers need to be very cautious about their expectations about what the property market in Perth might do,” REIWA president Hayden Groves said.
“There’s really no undercurrent there that suggests we’ll see double digit growth within the next 12 months.”
But real estate agents are excited.
“People should definitely get out there and have a look around, if they want to start building now is certainly a good time,” Dean Harris from Coast Homes told 7 News Perth.
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Tax Newsletter February/March 2018
Bill to implement housing affordability CGT changes
As part of the 2017–2018 Budget, the Federal Government announced a range of reforms intended to reduce pressure on housing affordability. Legislation has now been introduced into Parliament that proposes to:
- remove the entitlement to the capital gains tax (CGT) main residence exemption for foreign residents; and
- modify the foreign resident CGT regime to clarify that, for the purpose of determining whether an entity’s underlying value is principally derived from taxable Australian real property (TARP), the principal asset test is applied on an “associate inclusive” basis.
The Bill also proposes to amend the tax law to provide an additional discount on CGT for affordable housing. The discount of up to 10% will apply if a CGT event happens to an ownership interest in residential property used to provide affordable housing.
TIP: The main residence exemption means that CGT doesn’t apply for a capital gain or loss that an individual makes from selling their main residence. A CGT discount applies if the dwelling was their main residence for only part of the time they owned it, or they partly used it to produce assessable income.
Changes to small business CGT concessions
Treasury has released draft legislation to make sure that taxpayers will only be able to access the small business CGT concessions for assets that are used (or held ready for use) in the course of a small business or are an interest in a small business.
The draft also proposes additional conditions to be satisfied from 1 July 2017 when applying the small business CGT concession for capital gains related to a share in a company or an interest in a trust.
TIP: A range of tax concessions are available for small businesses. Talk to us to find out how your business could benefit.
Bill to change residential property GST arrangements
A Bill has been introduced into Parliament that, when passed, will require purchasers of new residential premises and new subdivisions of potential residential land to pay the goods and services tax (GST) on the purchase directly to the ATO as part of the settlement process from 1 July 2018.
TIP: Under the current law, the supplier of the property (eg the developer) is responsible for paying the GST to the ATO when lodging a business activity statement (BAS). This can happen up to three months after settlement.
The new measure was announced in the 2017–2018 Federal Budget. It is intended to speed up the GST payment process, and to deal with the problem of some developers dissolving their business and setting up a new entity to avoid paying GST (a form of “phoenix” tax avoidance).
Moving to combat the black economy
The Black Economy Taskforce was established in 2017 “to develop an innovative, forward-looking whole-of-government policy response to combat the black economy in Australia, recognising that these issues cannot be tackled by traditional tax enforcement
measures alone”. In May 2017 the taskforce made a its initial recommendations, which it based on foreign jurisdiction experiences, consultation with stakeholders and anecdotal evidence it had received.
TIP: The black economy includes people who don’t correctly report and meet their tax obligations, and people who operate entirely outside the tax and regulatory system.
The Government accepted a number of the taskforce’s recommendations, and has now introduced a Bill into Parliament, proposing to combat the black economy by:
- prohibiting the production, distribution and possession of sales suppression tools, which are typically used to remove or alter transaction information recorded by point-of-sale (POS) systems;
- prohibiting the use of electronic sales suppression tools to incorrectly keep tax records; and
- requiring entities that have an ABN and that provide courier or cleaning services to report to the ATO (from 1 July 2018) information about transactions that involve engaging other entities to undertake those services for them.
Corporate tax avoidance: latest
ATO targets
The ATO has provided an update on its latest focus areas and the compliance projects it is undertaking to reduce corporate tax avoidance. These include:
- investigating possible manipulation of the thin capitalisation rules, including 27 taxpayers’ asset revaluations totalling $78 billion;
- looking into arrangements that move intellectual property assets and rights offshore to multinational entities’ related parties;
- focusing on the treatment of oil and gas industry labour costs associated with high-value asset construction;
- examining the arm’s length conditions operating in pharmaceutical industry arrangements;
- identifying tax professionals and advisers who are promoting unacceptable tax planning; and
- looking at the tax affairs of various major
e-commerce players.
Social security means testing of lifetime retirement income streams
The Department of Social Services (DSS) has released its proposed means testing rules for pooled lifetime retirement income streams.
The pension standards were amended from 1 July 2017 to allow for more tax-exempt lifetime superannuation income stream products that enable pooling risk to manage longevity risk. Lifetime pensions and annuities that meet these new standards qualify for tax concessions tax treatment.
The DSS proposes to consider the following amounts when assessing such pooled lifetime income streams as part of social security means testing:
- income test: 70% of all income paid from the income stream product; and
- assets test: 70% of the purchase price of the product until the person reaches the age of their life expectancy at the time they made the purchase, and 35% from then on.
TIP: Under the new rules, deferred super income stream products would receive the same asset test assessment as products where payments begin immediately.
ATO now issuing excess transfer balance determinations
The ATO has advised that is now sending out excess transfer balance (ETB) determinations to individuals who have exceeded their superannuation transfer balance cap and not taken steps to remove the excess amount.
TIP: The transfer balance cap, currently set at $1.6 million, is a limit on the total amount of super that can be transferred into retirement phase. You can make multiple transfers as long as the total amount transferred remains below the cap.
Self managed superannuation fund (SMSF) members that had exceeded their transfer balance cap by $100,000 or less on 1 July 2017 had until 31 December 2017 to remove the excess capital from retirement phase. If they didn’t do so, they will now have to remove the excess capital and ETB earnings, and also pay ETB tax.
Windfarm grant was an assessable recoupment
The Full Federal Court has dismissed a taxpayer’s appeal and held that a Commonwealth grant of almost $2.5 million for the establishment of a windfarm was an assessable recoupment (Denmark Community Windfarm Ltd v FCT [2018] FCAFC 11).
In May 2011, the taxpayer was given a renewable energy grant for 50% of the project costs it incurred in constructing two wind turbines. The grant was paid in instalments on the completion of identified project milestones.
The ATO made a private ruling that the grant would be assessable income. The taxpayer argued against the ruling, but the Full Federal Court dismissed the taxpayer’s appeal.
Property Newsletter – February 2018
4 practical steps to increase serviceability when investing in property
With increased scrutiny by financial authorities on lending practices, banks have tightened their requirements, impacting investors trying to secure finance for property. Here are 4 practical steps investors can take to better their serviceability.
2017 marked a year of increased scrutiny of banking lending practices by the Australian Prudential Regulations Authority (APRA), resulting in banks implementing tougher procedures for obtaining investment finance. The guidelines had a profound effect, with numerous investors in our latest investor survey indicating that securing finance is now the biggest barrier to starting or growing a portfolio.
One key factor in obtaining finance approval is serviceability: banks must minimise the risk of defaults on repayments, and therefore will calculate how able you are to service (pay back) your loan over its lifetime. They use bank-specific calculators to compare your income (job income, rental income, child support etc.) to your outgoings, which includes living costs, debt and ongoing costs.
Due to the APRA interventions over the last 2 years, banks now take a far more conservative approach in their serviceability assessment and therefore, despite being able to service a loan based on your own calculations; in a bank’s system you may not pass the serviceability test.
Here are four practical steps you can take to improve your chances of success:
Step 1 – Easy credit is a liability
Credit cards are ubiquitous among Australian families but must be taken into account when applying for finance. A bank will consider any kind of ‘easy’ credit a liability and therefore each credit card you own will be calculated as being a debt to the value of the credit card limit. That means if you have 2 credit cards with a limit of $10,000AUD each, the bank will consider you to have a debt of $20,000AUD and calculate a percentage of that amount as ongoing expenditure. Paying off your credit card on time or not using your credit card at all will have no impact on the bank’s calculations.
An easy step to increase your serviceability is to cancel any credit cards you don’t use, and possibly lower the limit on the ones you do use. Make sure you pay off the credit cards you do decide to keep on time. Accumulating debt on your credit card will affect the bank’s assessment of your creditworthiness.
Step 2 – Keep a record of your income
This is particularly important for those who are self-employed: keep your financial records up to date so you can prove your actual take home pay. If your business has become more profitable and income has improved over the past months, you should be able to adequately demonstrate this or the bank will use your previously lower income in their calculations.
Step 3 – Pay down debt and decrease ongoing costs
Phone plans, subscriptions and ongoing costs will all be added to your monthly expenditure, each in turn slightly lowering the amount the bank will lend you. Non-deductible debts, such as car loans, will also weigh against you.
Check that you really need that new phone on the more expensive plan, and close off any recurring payments for services you no longer need. Pay down as much of your debts as possible. Potentially consolidating short term debt into longer term debt can help to lower your repayments which in turn helps your serviceability.
Step 4 – Get professional help
With the banking environment in constant flux in the last 24 months, it is now more important than ever to work with a specialised investment broker, who has the knowledge not only of the lending landscape but also understands your unique situation and requirements. They can help you find the right product and assist with any further questions you may have on how to increase your serviceability.
If you would like to know more about how the 2017 APRA changes may affect you or how serviceability tests have changed, we recommend you watch our FREE on-demand webinar titled “APRA crackdown – navigating the changes to lending”.
What is a retail investor?
Property syndicates, investment types that utilise pooled funds to purchase or develop property, are generally offered to two types of investors, either wholesale or retail. These types of investment opportunities are less commonly open to retail clients as the law necessitates more onerous compliance requirements for funds dealing with these investors.
The intent of the distinction is to protect individuals who don’t meet the wholesale investor requirements and may not have the financial flexibility or capacity to take on higher risk investments. In essence, all investors are retail investors unless they meet the wholesale investor criteria, in which case they would have greater access to a wider range and sometimes more complex financial products.
The notable differences for retail investors can include:
Paperwork requirements
Retail investors must be provided with a Product Disclosure Statement (PDS) that includes material on the product’s key features, fees, commissions, benefits, risks and complaints handling procedures, something a wholesale investor might choose to forgo in favour of a more simplistic Information Memorandum.
Greater investor protection
The Future of Financial Advice (FOFA) legislation is intended to improve the confidence and trust of Australian retail investors in the financial services industry, providing protection from poor financial advice and ensuring the availability, accessibility and affordability of high quality financial advisors. Wholesale investors have less protection in these areas.
Increased governance requirements
The Australian Securities & Investments Commission (ASIC) requires funds open to retail investors to meet increased governance requirements, including an approved constitution and compliance plan, an authorisation for licensee on the investment type, a mandated net tangible assets requirement, external board of directors, annual audited accounts to be lodged with ASIC and custody requirements. Wholesale investor funds are permitted to vary these requirements as part of the trust deed
The increased legislation alone can add a bureaucratic and economic cost to investment types such as property syndicates open to retail investors. However, property syndicates that are able to meet the legislative requirements for retail investors can still provide the benefits of a pooled investment asset that is generally lower-risk (compared to wholesale investment opportunities) to clients that meet this profile.
If you wish to learn more about property syndicates and pooled investments, our sister company Mair Property Funds has published an excellent guide to getting started in commercial property through property syndicates.
Please note: the information in this article pertains to General Advice only. Momentum Wealth and its affiliated entities are not solicitors, accountants or financial planners. While all information is provided in good faith, you should seek your own independent legal, accounting and financial advice in relation to any transaction you undertake.
Perth property market begins recovery in December quarter: REIWA
REIWA December quarter data in the key categories of median price, sales activity, listing levels and average selling days were all good news.
The Perth property market ended 2017 on a positive note, according to the latest data from the REIWA.
December quarter data showed improvements in the key categories of median prices, sales activity, listing levels and average selling days.
REIWA President Hayden Groves said it boded well for Perth that all key indicators had improved over the quarter.
“The Perth market found its floor and stabilised in the back half of 2017. We now appear to be entering a recovery phase, though REIWA remains cautious about expectations of rapid growth in the next 12 months,” he said.
Median house and unit price
Perth’s preliminary median house price increased 1.2 per cent to $516,000 in the December quarter 2017.
“Once all sales have settled, we expect the final December quarter median to lift to $520,000, which is a notable improvement on the September quarter median of $510,000.
“On an annual basis, the Perth market is very stable. We’ve observed consistent price levels between the December 2016 and 2017 quarters which is a strong signifier the market has turned a corner,” Groves said.
Perth’s median unit price is $405,000 for the December 2017 quarter which is a 1.3 per cent increase on the September quarter.
“It’s encouraging to see Perth’s house and unit medians increase over the quarter because it suggests one sector hasn’t recovered at the expense of the other,” Groves said.
Sales activity
There were 4,946 dwelling sales in Perth in the December quarter.
Mr Groves said this figure was expected to lift to 6,700 once all sales had settled, putting it significantly above the September quarter sales figure.
“Traditionally, the September quarter outperforms the December quarter, but that wasn’t the case in 2017. The December quarter is on track to record 14 per cent more sales than the September quarter,” Mr Groves said.
REIWA analysis shows the composition of sales shifted in the December quarter in Perth, with more transactions occurring above $700,000.
“We’ve observed a surge of activity in Perth’s aspirational suburbs, with buyers recognising there is good opportunity to secure a home in these areas which might have previously been considered unattainable by many,” Mr Groves said.
“This spike in sales above $700,000 has also contributed to Perth’s median house price increasing over the quarter.”
Listings for sale
There were 13,088 properties for sale in Perth at the end of the December quarter.
Mr Groves said this was on par with the September quarter figure and six per cent less than the December 2016 quarter figure.
“There were 800 fewer listings in Perth at the end of 2017 than there was in 2016 and some 1,300 less than there were at the same time 2015. We have consistently seen stock levels decline over the last two years as the market trends towards parity,” Mr Groves said.
“Declining listing levels combined with notable improvements in sales activity has helped restore net- demand. With buyer activity increasing, stock levels are being absorbed faster,” Mr Groves said.
Average selling days
It was 10 days faster to sell in the December quarter than it was in the September quarter, with it taking on average 60 days to secure a sale.
“It’s been two years since it was this quick to sell in Perth. The combination of sellers’ preparedness to meet the market and buyer appetite for well-priced property has significantly shortened days-on-market,” Mr Groves said.
As Sydney fades, Perth shows early signs of recovery: Hotspotting’s Terry Ryder
Generalised commentary masquerading as analysis is the curse of the real estate consumer.
Much of what appears in mainstream media about residential real estate discusses Australia as a single market. That’s an early clue for consumers that the commentator has shallow knowledge.
If you’re reading something from an alleged expert and they’re talking about what’s happening with “the Australian property market” or forecasting trends with “Australian housing prices”, turn the page because you’ve tuned into a charlatan.
Too much has been written about “the Australian property boom” and “the national affordability crisis”.
A core problem is that so much of the commentary comes out of the Sydney and the situation in our biggest city dominates the thinking and attitudes of commentators. We have outcry about a national problem that generally does not exist and “solutions” that will slug the whole nation to fix issues isolated to a small section of the national geography.
The 20 million Australians who don’t live in Sydney must wonder what the fuss is about. Any resident of Perth, Adelaide or Darwin would be bemused by the ongoing debate about soaring prices, affordability catastrophes and the need for major national action.
Many of the worst culprits for generalised and usually misinformed commentary are based overseas. Often they’re major international organisations or ratings agencies which seek to manufacture publicity by making dire warnings about Australian real estate based on generalised national statistics pumped up by the strength of the Sydney market.
There are plenty of local pontificators making the same mistake, most of them economists who should never be consulted for comment on residential real estate, a subject that’s not within their area of expertise, if indeed they have one.
Anyone who thinks Australian has had a national property boom recently should compare the price growth statistics for the capital cities in 2016 with the results in 2002 and 2003.
Back in 2002/2003, the last time we had a genuine nationwide boom, every capital city had sharply rising prices. In 2003, according to the ABS, house prices grew at least 13 percent in every one of the eight capital cities, including four where prices rose by more than 20 percent.
The ABS figures for last year have a very different look about them. Only Melbourne and Sydney managed double-digit growth and only just. Two cities, Perth and Darwin, recorded falling prices, while Brisbane, Canberra and Adelaide managed only moderate (4 or 5 percent) rises. Hobart rose 8 percent, according to these numbers.
When you compare this with that genuine boom at the start of the century, it’s apparent that even Sydney’s growth was tame compared with back then. Melbourne, meanwhile, has mostly been below 10 percent with its annual house price growth in the past four years, only recently bursting out into double digits (and now leads the nation, according to most sources).
Now the growing chorus among the generalised pontificators is that “the Australian property boom is over”.
If they’re talking about Sydney, they’re probably right. But out there in the heartland beyond the biggest cities, different things are happening, including places where markets are rising, even as Sydney is subsiding.
They include regional New South Wales, which now has far more rising markets than Sydney does.
The same is true of regional Queensland, which has many ascendant markets (as well as a few that you might still want to avoid), much more so than Brisbane at the moment.
Melbourne is less advanced than Sydney in its growth cycle, so has more time to run with price growth than Sydney does.
Both Hobart and Canberra have sparked to life recently on the back of improving local economies and are likely to continue heading in the opposite direction to Sydney.
Adelaide’s market is quite busy but is unlikely to deliver strong price growth, other than in selected pockets, because it lacks the economic and population growth impetus of other major cities.
Perth has been going backwards throughout the four years that Sydney has been advancing – and now, as Sydney fades, Perth is showing the early signs of recovery.
New report shows housing affordability continues to improve in WA
The Real Estate Institute of Australia (REIA), with support from Adelaide Bank, recently released a Housing Affordability Report which found Western Australia to be the most affordable state in the country for tenants and homebuyers.
Only the Northern Territory and Australian Capital Territory were more affordable.
The Housing Affordability Report showed buyers and tenants were in a fortunate position in WA, with affordability in the state’s housing and rental markets improving in the September quarter 2017 on both a quarterly and annual basis.
It found that in the WA housing market, the proportion of family income required to meet home loan repayments decreased from 23.8 per cent in the September quarter 2016 to 22.4 per cent in the September quarter 2017, despite wage growth remaining stagnant.
In the rental market WA tenants were also paying less, with the proportion of family income required to pay rent decreasing from 19.2 per cent in the September quarter 2016 to 17.4 per cent in the September quarter 2017.
This decline officially makes WA rent prices the most affordable in the country.
Another positive highlighted in the report is that the number of first homebuyers in WA increased by 7.4 per cent over the quarter and 17.9 per cent when compared to the same time in 2016.
Additionally, the average loan to first homebuyers in the September quarter 2017 was $330,074, which is a decrease of 0.9 per cent over the quarter and 4.4 per cent less when compared to the September quarter 2016.
Whilst the Perth property market is showing signs of recovery, buyers and tenants remain well favoured by the current market, with a good supply of housing and rental stock to choose from and, as showcased on
www.reiwa.com, at the more affordable end of the market.
Nationally, affordability improved overall across Australia as red-hot markets in Sydney and Melbourne cool, although in New South Wales homeowners still pay an average of 36.1 per cent of their family income on home loan repayments – significantly more than Western Australians do.
While the dream of homeownership remains a challenge on the east coast, it is very much alive and well in WA.
With our local market on the cusp of recovering, now is the time for buyers to take advantage of favourable conditions to secure their home before our local WA market becomes less affordable.
Finance Newsletter – December 2017/January 2018
What’s going on with interest rates?
With the current changing market conditions how do you know if you have the best rate available for your home and investment loans?
You may have noticed a Difference between home loan and investment loan rates? You might be able to save thousands per year in interest by reassessing your current loans. It costs nothing to find out.
If your interest rate is over 3.68% variable then you may be able to save by changing loans and or banks. I have access to a major bank that is currently offering customers a 3.68% variable rate ( 3.69% comparison rate). This NOT a honeymoon rate, discount is for the life of the loan. Conditions apply – owner occupied homes only, principal and interest payments, 80% LVR maximum – No application fee. NO ongoing monthly or annual fees.
If you are interested in saving thousands per year call Mercia finance to see if we can show you how to benefit from a better rate. We can also show you some great fixed rates and investment loan discounts. An example of what the above may mean to you – an average mortgage of $450 000 at the average big bank discounted rate of 4.4% = an annual interest saving of over $3 105 per year. I may cost you little or nothing to get this rate for your mortgage – find out today.
Investors will have read that most banks are increasing the rate on investment loans. This includes current investment loans. If you are a property investor check your rates and find out if these increases apply to you. If you are not sure, ask Mercia finance for an obligation free loan check. Some institutions are not increasing the rates for investors. So this is a good time to make sure you have the best loan for your circumstances.
If you have questions regarding any type of loan, call Dan Goodridge on 04144 233 40. Our service is free of charge to you the borrower and we have access to all the major lenders in WA. Call us anytime. After hours is OK.
Property Newsletter – December 2017
What can Census data reveal about investment locations?
The latest Census by the Australian Bureau of Statistics (ABS) was conducted in 2016, and results have been steadily released over the course of 2017. What insights can we gain from the data when it comes to selecting a property investment location?
The first comprehensive dataset from the 2016 Census was released at the end of June 2017, and included key characteristics on ‘person, family and dwelling’ such as age, sex, religion, language and income.
The remaining data was released in late October and contained useful figures on employment, qualifications and the mobility of the population, including internal migration and worker commute times.
These figures can be further broken down by state, region, and even suburb, providing valuable insights into the demographic profiles of particular areas. While the data from a single Census can paint a clear picture of an area at a certain point in time, it is by comparing the trends from one Census to another that the Momentum Wealth research team is able to map and follow key result indicators
For instance, in following the same metrics from previous Census data to the most recent, we are able to identify areas undergoing change to their demographic makeup. This change can be due to a number of factors including dwelling additions, the previous age structure (for example, a younger population may have more births resulting in more children in the area), birth and death rates, and migration. These factors affect the type of people moving in or out of an area, the overall age profile and its economic prosperity.
An important trend to look out for is the process of suburb gentrification, which is the influx of more affluent residents to an area.. This may be from the addition of new infrastructure, increased employment opportunities attracting more workers, and increased amenity improving an area’s desirability as a place to live.
Typically, areas undergoing gentrification will see an increase in property values as the process advances. Identifying these areas early on in the process can be hugely beneficial when selecting a property investment location. Read more about how Momentum Wealth Research tracks such gentrification processes in our case study
Festive fervour – the benefits of acting during the holiday season
With the silly season just around the corner, it’s a busy period for many as they prepare for upcoming festivities or plan a holiday away. Often, big decisions – such as choosing an investment property – are either put on hold or are simply the last things that come to mind at this time of year. But what are the benefits of purchasing while it’s relatively quiet?
If you’ve already made the decision to invest in property, not waiting until general market activity is back in full swing can reap huge rewards. Purchasing during the Christmas and New Year season presents a unique set of circumstances that, if taken advantage of, can be a great opportunity for the astute investor.
The number of properties listed for sale will typically take a dive over Christmas and New Year, with a noticeable drop in activity in the market. With people generally busy or away during this time, there are less buyers around which prompts many sellers to delay listing their property or even to take their already listed property off the market until it’s a better time to sell.
The reduced number of buyers results in less competition for those buyers remaining, and while less properties to choose from may not seem like an advantage, what it can mean is that sellers who are still advertising their properties while others aren’t may have a very strong motivation to sell. For example, they may have placed an offer on a property themselves and need to sell their current home to facilitate the purchase, or it could be due to financial hardship, a change in family situation, or other matters necessitating a speedy sale.
When it comes to negotiating a property purchase, finding a highly-motivated seller works well in your favour, as the buyer. Knowing how desperately someone needs to sell can give you the upper hand, but also knowing the reasons behind the sale can allow you to make an offer that meets the seller’s needs while securing yourself a great deal, thereby benefiting both parties.
While not all properties being sold at this time of year have strong motivations behind them, the chance of this being the case does increase considerably, allowing those who are willing to keep an eye out the opportunity to swoop in and snap up a great purchase.
In the event that you don’t find that great deal in the last few weeks of the year, the fact that you are already closely watching the market puts you in a good position in January, when a lot of the ‘on hold’ stock comes to market. There will be more choice available, and you’ll already be on the front foot while other buyers are still enjoying the remnants of their glazed hams.
In summary, it simply comes down to: if you don’t look, you won’t see the deals. Continuing to actively look for properties while others are taking a break over the festive season means you won’t miss out on any great deals that emerge.
A well-connected, well-serviced suburb packed full of amenity
Bateman is a family suburb benefiting from excellent educational facilities, attractive parklands and a well-connected public transport system. It’s one of the premium lower-density suburbs of Perth with a median price under $1 million and room to grow.
Located in the City of Melville, Bateman is approximately 12km south of the Perth CBD, with a median house price of $805,000. Its neighbouring suburbs include the similarly-priced Brentwood to the north, Murdoch to the west and Bull Creek to the east, with the southern periphery being Murdoch University and Fiona Stanley Hospital, which are part of the suburb of Murdoch.
With a population of 3,717 Bateman is a medium-sized suburb compared to the surrounds. 34.8% of the population identify themselves as professionals, which is well above the WA and national averages of 20.5% and 22.2% respectively. Due to the area being popular with the Baby Boomer generation, there is currently an abundance of empty-nesters which has pushed the suburb’s median age to 40 — much older than Perth’s overall median of 36.
The suburb is well connected, being bordered by three main arterial corridors allowing efficient access to the area. It is situated between Leach Highway and South Street to the north and south, with the Kwinana Freeway making up the eastern periphery. Buses run frequently along these roads, providing convenient public transport to the CBD, Fremantle and other major amenities. Two train stations, Murdoch Train Station and Bull Creek Train Station, also service the area as part of the Mandurah Line. More than 70% of the suburb is within walking distance (1km) to either of these stations, making the area highly accessible and favoured by CBD workers for efficient public transport to their place of employment.
The area is mostly zoned R20 (low density), with a few pockets of R40 zoning near Bull Creek Station. Dwelling stock comprises 87% houses, 13% semi-detached dwellings, and no units — making the area extremely low density. The whole area is built out to its current residential limits, with very few development options besides updating older stock. However, the City of Melville has released its Murdoch Activity Centre Structure Plan, which identifies residential areas within walking distance to the Education and Health Centre to potentially receive a zoning upgrade, creating greater development opportunities in the future.
Construction is dated from the 1970s with redevelopment common in the 2000s as well as high levels of renovations to the aged stock. The typical streetscape is a mixture of single- and double-storey houses.
Bateman benefits from abundant amenity in its neighbouring suburbs, including Murdoch University, Fiona Stanley Hospital, Garden City Shopping Centre and Stockland Bull Creek Shopping Centre. The suburb is also within the catchment zone for Rossmoyne Senior High School, which is one of the top-rated public high schools in the state. This high level of amenity has made Bateman a highly desirable suburb to live in.
Recent finance award makes it a hat trick for Momentum Wealth this year
Momentum Wealth was honoured to be named the WA Brokerage of the Year (<5 Staff) at the 2017 Connective Excellence Awards held last month, which was the third major finance accolade awarded to the team this calendar year.
The Connective Excellence Awards winners were chosen for their expertise, integrity and outstanding customer service standards. Connective is one of Australia’s leading mortgage aggregators, accounting for one in every 10 Australian home loans.
The accolade was a great achievement in a competitive category, and Momentum Wealth is proud to be recognised amongst the best in Australia’s mortgage and finance broking industry.
A big congratulations also to Momentum Wealth’s Ashleigh Patterson, who was named Best Newcomer of the Year at the awards ceremony. The award celebrates innovation in business practice that sets the broker apart from the rest.
It has been a successful year for our broking team, picking up two other major awards earlier in the year — these were the Best Customer Service award at the Better Business Awards in March, and Best Finance Broker (2-5 loan writers) at the MFAA Excellence Awards in May