Tony Begbie

🏡 Exploring Investment Potential: Evaluating the Pros and Cons of Building Granny Flats With Australia's rental crisis persisting, many are considering the viability of granny flats as a solution. These additional dwelling units, typically located in the backyard of existing properties, have gained attention as a means to increase housing stock and address affordability challenges. While laws governing granny flats vary across states, they remain a topic of interest for property investors nationwide. Lately, I've received inquiries from clients weighing the option of constructing granny flats on their investment properties. The allure of generating additional rental income to offset expenses and navigate changing interest rates has sparked curiosity. As investors seek to maximize cash flow and rental returns, alternative strategies such as dual key properties have also emerged as popular options. 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐚 𝐠𝐫𝐚𝐧𝐧𝐲 𝐟𝐥𝐚𝐭 𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐬 𝐚𝐧 𝐨𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐲 𝐭𝐨 𝐞𝐧𝐡𝐚𝐧𝐜𝐞 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐯𝐚𝐥𝐮𝐞, 𝐚𝐤𝐢𝐧 𝐭𝐨 𝐚𝐝𝐝𝐢𝐧𝐠 𝐚𝐧 𝐞𝐱𝐭𝐫𝐚 𝐛𝐞𝐝𝐫𝐨𝐨𝐦 𝐨𝐫 𝐫𝐞𝐧𝐨𝐯𝐚𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐤𝐢𝐭𝐜𝐡𝐞𝐧. However, compared to other investment avenues like dual-key properties or subdivisions, the return on investment from granny flats may be more modest. Despite potential cost savings, such as avoiding extensive renovations or land subdivision, the overall impact on property value may vary. In summary, the decision to build a granny flat comes with its own set of pros and cons. On the positive side, it offers the potential to increase rental income and property value while providing additional living space. However, investors should carefully consider factors such as construction costs, regulatory requirements, and the potential impact on property resale value. Ultimately, whether granny flats align with your investment goals depends on your individual circumstances and strategy in the real estate market. Engage by liking, commenting, and sharing with your network! Keep an eye out for more valuable insights in my upcoming posts. Until then, happy investing! 🏡 ✨ #PropertyInvestment #GrannyFlats #RealEstateInsights

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Each month with sponsorship from NZHL I survey real estate agents around the country. I ask them how activity levels are changing, what the views of first home buyers and investors are, and the factors which are affecting sentiment of those two large groups. The key results from this month’s survey which yielded 283 responses include the following. ·      There has been a notable rise in the proportion of agents saying that there are more investors in the market looking to make a purchase. Motivating factors include falling interest rates and rising expectations of increasing prices. ·      Demand from first home buyers also remains strong but because the number of vendors is also rising price pressure is still relatively muted. ·      FOMO has risen to 19% of agents observing it and this matches the 19% of agents saying they are seeing FOOP – fear of over-paying by buyers.  https://lnkd.in/ghStADci

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Each month with sponsorship from NZHL I survey residential real estate agents around the country to get their insights into what is happening at the housing coalface. My latest survey shows the following main things. -Most readings are very similar to a month ago. -More agents see fewer of both investors and first home buyers than say they are seeing more. -Prices are widely seen by agents as declining throughout the country. The results overall show a decidedly weak market with virtually no FOMO. https://lnkd.in/gtUsWWap

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Federal Budget Report 2024/2025 The Australian Federal Government's 2024-25 Budget looks to balance cost of living relief without stoking inflation. It marks a significant milestone, achieving back-to-back surpluses for the first time in almost two decades. This year’s budget allocates $11.3 billion for housing, including $9.3 billion for social housing and homelessness, $1 billion for crisis and transitional accommodation, and an additional 10 per cent increase in Commonwealth Rent Assistance. These measures will help boost the supply of homes over the medium term. While the plan is multifaceted, focusing on several key areas to achieve its goals and supported by a $90.6 million construction workforce package, we are still lacking a more immediate solution to increase the supply of new homes. Overall, the markets remains largely unchanged. What remains to be seen is whether the government has effectively aligned its fiscal policy with monetary policy to prevent fuelling inflation and potentially prompting further rate hikes by the RBA - meaning that the rates remains the same; steady through 2024 with a potential cut at the start of 2025. To delve deeper into the impact of the 2024-25 Federal Budget on the real estate market, download the full report: https://lnkd.in/eJPhxD3N #ljhooker #federalbudget #realestateaustralia

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The new reality is that it's more expensive to rent, even a unit, than it is to buy, in most suburbs in Australia. Whilst it may cost more to own than rent, owning is the way to create long term growth. It's easier to get $100,000 of capital growth than it is to save $100,000. If you are thinking about buying then get in touch to make this happen sooner. In this rising property market your delays are costing you. Your delay will mean a higher purchase price when you do decide to buy. Let me help you. #buyersagent

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From the article: "They’re $1m-plus homes you can’t live in – with everything from rotting ceilings and floors to interiors strewn with crumbling bricks – but in many parts of Sydney they’re the few houses available to buy. Agents have reported a “severe” shortage of ready-to-move-into houses across the Greater Sydney area as uncertainty over rate rises discourages would-be sellers of turnkey homes from listing. These shortages have been particularly severe in Sydney’s well-connected inner- and middle-ring suburbs, where housing demand has historically been higher." Any agents/conveyancers noticing falling sales volumes recently? I imagine the cold and wet weather is not helping with marketing..... Any thoughts? As always please be respectful, inclusive and polite to others. This is for the purpose of encouraging discussion and I am not advocating a particular position. https://lnkd.in/gBNH4A7J

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The National Rental Affordability Index (RAI) for 2024 is out today. It’s the tenth edition of the RAI, and unfortunately it offers no good news for Queensland renters. The RAI assesses affordability based on different income levels. For individuals who are already struggling, increasing rents can lead to severe housing stress and even homelessness. Examples from this years report include: 🧍‍♀️A single person on Jobseeker in Qld, where a 1-bedroom rental is costing them 93% of their income. 🧍‍♂️🧍A couple living on the pension are paying 46% of their household income to rent an average 2-bedroom home or apartment. 🏠 Regional Queensland is also the least affordable regional area in country, with median rents of $607 and vacancy rates well below 1% in most markets. 🔖 To access the full report, click here: https://lnkd.in/gjZ-dc48 🗞️ Or read more (including my comments) in The Courier-Mail piece below. #National #Rental #Affordability #Index #Queensland #RentalMarket #Unaffordable National Shelter Q Shelter SGS Economics and Planning

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Want to know where the Property Market is sitting at the moment? have a look at this handy survey and summary from Tony Alexander #property #residential #realestate #propertyinvestment

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Interesting article discussing the difference in Capital Gains between units and detached houses. Housing is a complicated topic with so many factors and issues affecting supply, demand and price/rents. As the article points out Sydney is landlocked between National Parks/waterways to the north/east/west/south which limits urban sprawl and future supply of land releases. Added to this is the risk with many high density unit complexes now identifying significant defects and the high cost to repair these which further reduce Capital Gains for units in general. Any thoughts? As always please be respectful, inclusive and polite to others. This is for the purpose of encouraging discussion and I am not advocating a particular position. https://lnkd.in/g4bjKUeH

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Just a few weeks ago, Victorian Treasurer Tim Pallas said that housing is the "defining issue of our times". But yesterday's state budget was almost devoid of any housing announcements. I think this budget definitely puts pressure on the federal government to get some of the housing schemes right in their own budget (to be released next week). Here are some of the few VIC property announcements made 👇 🏠 An additional $700 million to be added to the $2.1 billion Victorian Homebuyer Fund (a shared equity scheme). The maximum purchase price for homes in regional Victoria will be lifted from $600,000 - $700,000. This is the final investment before the fund is superseded by the national scheme. 🏠 A further $19 million will go to public housing residents to help speed up the resolution of maintenance issues and housing complaints. 🏠 Residential stamp duty to stay. Many of us were hoping VIC would follow in NSW's footsteps and trial a switch to residential land tax, but it's not to be. The Melbourne property market definitely has its challenges for anyone trying to buy, and it's becoming even more important to have an expert (like me!) in your corner. Let's see what the Federal Budget has in store for housing next week. #budget #state #victoria #melbourne #property #realestate #home #homeloan #mortgage

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Nowhere, in the ever-so-slight easing in rental vacancy rates, is there comfort for renters. April Real Estate Institute of New South Wales [REINSW] figures show Sydney’s overall vacancy rate rose 0.1% to 1.5%. This is half of what’s considered healthy. Demand continues to swamp supply and finding a home to rent remains a pipedream for many tenants. And it’s getting worse: REINSW members report more investors are selling than buying, exacerbating the supply shortage. Discouraging residential investment is having a disastrous impact. A new approach is needed now. Vacancy rate data here: https://bit.ly/4asxj6e #reinsw #vacancyrates

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These 6 Key Factors Are Crucial for Selecting Australian Property Investments??? 𝐖𝐡𝐞𝐧 𝐢𝐭 𝐜𝐨𝐦𝐞𝐬 𝐭𝐨 𝐦𝐚𝐤𝐢𝐧𝐠 𝐬𝐦𝐚𝐫𝐭 𝐝𝐞𝐜𝐢𝐬𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐀𝐮𝐬𝐭𝐫𝐚𝐥𝐢𝐚𝐧 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐦𝐚𝐫𝐤𝐞𝐭, 𝐟𝐨𝐜𝐮𝐬𝐢𝐧𝐠 𝐨𝐧 𝐭𝐡𝐞 𝐫𝐢𝐠𝐡𝐭 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐢𝐬 𝐞𝐬𝐬𝐞𝐧𝐭𝐢𝐚𝐥. Here are six key factors that can guide you in identifying areas with high potential for price growth: 1. Vacancy Rate: A low vacancy rate shows that rental properties are in demand, signaling a strong rental market and potential rental income growth. 2. Economic Diversity: Looks at the variety of industries in a region. Areas with diverse economies are more resilient to market fluctuations, providing long-term stability. 3. Stock on Market (SOM): Tracks the total number of properties available. A decrease in stock suggests limited supply, which can drive up prices. 4. Rental Growth: Examines how much rent has increased over the past year. Consistent rental growth points to a healthy market with strong demand. 5. Building Approvals: Analyzes the number of building approvals over the past year. A significant increase in new developments can lead to oversupply, which may impact future property values. 6. Days on Market (DOM): Measures how quickly properties are selling in a given area. A shorter DOM indicates rising demand, a sign that prices may increase. By considering these six factors, you can better understand supply and demand dynamics and make more informed decisions in the Australian property market. Want to know more? Reach out or using Jade AI! These predictions are based on current data and aim to provide valuable guidance for those navigating or observing the market. ❇️ Jade AI: Tailored for real estate investors, Jade AI offers personalized insights, real-time market updates, and multilingual support to help you stay ahead of the competition. Register Link https://lnkd.in/gsEB4scj #AustralianProperty #RealEstateInvestment #PropertyMarket #MarketTrends #InvestmentStrategy #SupplyAndDemand #VacancyRates #RentalGrowth #EconomicDiversity #BuildingApprovals #JADEAI

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August Property Auction Market Update https://lnkd.in/gK24Z4-F A Strong Market, But Cautious? Now that some of the uncertainty surrounding the general election, and the direction of the next government, is out of the way what happened at the residential property auctions in July 2024? In this monthly update we will take a closer look at current trends in sales volumes, percentages sold, amounts raised and other interesting developments in the market. Number of lots offered Business seemed brisk again this month. The number of lots offered was strong again, with around 3,150 properties being offered for sale at the auctions we track in July. Although this was 10% below June’s total it was well ahead of both the average over the last year and a full one third more than in July 2023. After a notable shift to online last month the split between online and live sales was more evenly balanced this month, but with very slightly more properties offered at live events. Click on the link above to read the article in full.

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Dover Heights: The Hidden Gem with Massive Growth Potential Discover why Dover Heights is one of the best-valued suburbs with untapped growth opportunities. We analyze the latest stats and the proximity to Bondi, highlighting why this area is under the radar and poised for significant development. Don't miss out on this real estate goldmine! #DoverHeights #RealEstateInvesting #PropertyGrowth #SydneySuburbs #HiddenGems #BondiBeach #InvestmentOpportunity #GrowthPotential #RealEstateMarket #SydneyLiving

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