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SSC Newspaper : February 2012
Strathfield Scene 23 www.ourstrathfield.com.au property THINK REAL ESTATE THINK DEVINE Buying, Selling or Renting? For outstanding results and service, tel: 8080 SELL (7355) devinere.com.au STRATHFIELD | CONCORD | DRUMMOYNE By Steve Devine The start of the year is a good time to reflect on the market of the year just passed, and the most accurate way to do this is to review the statistics – after all, statistics don’t lie, so it’s said. Combining the resources of RP Data, the industry ’s leading research provider, with our own results, we have concluded that prices in Strathfield have remained relatively stable over the past two years. What is interesting is that the number of properties sold has dropped sharply. In fact, only 112 houses fetched more than $1 million in Strathfield compared to 170 in 2010. The median house price in this range for Strathfield remained relatively unchanged at $1.535 million over the two years. I believe the 52% drop in turnover can largely be attributed to a lack of confidence in the economy. Strathfield people seem particularly worried about their job stability and business profitability, so they are staying put and waiting longer before putting their homes on the market. Once confidence returns to the economy, I have no doubt we will not only see more people selling, but also a significant growth in values. The unit market has experienced a far less dramatic slowdown in volume, with only a 15% decrease on 2010. A total of 231 apartments sold in Strathfield fetched between $350,000 and $700,000 in 2010, compared to 181 in 2011. There was also a slight drop in the median price in this range, down only 1.5% from $482,000 in 2010 to $475,000 in 2011. History shows the market will always be cyclic. In my opinion we’re at the bottom of the cycle now. While the economic woes of Europe and the US are far from over, the signs are that the worst is behind them. So what will that mean for property prices in Strathfield? There’s probably never been a better time to buy than now – 2012shouldbetheyearyou make the move you say you keep thinking of ! Steve Devine is a director of Devine Real Estate Q Ihave an investment property. Should I spend money on it? Steve: Anything you spend on upgrading your property you will get back in improved value. Bear in mind, too, that subsequent increase in rent will pay the interest on the loan. This means you have not actually spent any money, but will be able to attract a better tenant. Q If I have an investment property, can I sell it if there is a tenant on a fixed term? What do I need to do? Steve: Yes, you can sell the property at any point no matter what the status of the tenancy. Because a lot of sales agents may not be aware of the specific tenancy requirements it is vital to ensure this is done properly so you are not penalised. If you know that you are selling a property in the near future but still wish to have a tenancy, simply supply the tenant with a statement of your intentions before signing the tenancy agreement. In this case, both parties are bound by the fixed-term period. If the decision to sell is made after the tenancy has started, you must give the tenant 14 days’ written notice before the property goes on the market. I want to add that this will affect the tenant’s obligations in regards to the fixed-term period. Send your questions to: email@example.com Bottom of the cycle means it’s time to buy “Once confidence returns, I have no doubt we will not only see more people selling, but also a significant growth in values." – Steve Devine.