Buying Adelaide investment property from interstate and overseas.

Six simple steps for remote property investors. Direct Negotiations provides an end to end property search and acquisition service - For you.

The brief - Discuss your requirements, lifestyle, budget and investment strategy.

Property search - Extensively search the market to source the best property match. A large percentage of properties are never offered to the general public.

Feedback - Provide reports, property profiles, updates and photographs from our own sources as well as commercial and government databases.- real data and statistics.

Inspections - We personally inspect all properties that are a potential property match.

Evaluation - For properties that match your brief, we will provide guidance on market value based on sound market research.

Negotiations - We will negotiate or bid on your behalf to secure the property within a set price range. In many cases we have preferred pricing before negotiations even commence. We guarantee to show genuine net savings on your purchase.

Other services - We will coordinate other relevant services such as building inspections, conveyancing solicitor, mortgage broker, strata searches, property management, minor renovations.

Whether you are an Australian living overseas, or based in Australia, we are able to cater for your specific needs.

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Norwood house prices resilient

Please read a small case study that I did for Adelaide inner city suburb prices.
Sixteen months ago, I attended an auction in an area that I know very well, and where quality property will sell in all markets and economic climates if/ when correctly priced. Norwood, Adelaide.
I compared 2 Auctions of entry level properties located 3 km from the city centre of Adelaide.
The first property was a classic freestanding, single fronted , return verandah , 2 bedroom, C1910 bungalow on a 355m2 allotment. The home had been modified over time and was in need of at least a cosmetic renovation and preferably a rebuild of the extension.
The auction attracted almost a carnival atmosphere, with multiple bidders starting in the 300k's and finishing on bids of five hundred dollars at a final price of $457,500.

On Thursday 11th Dec, 2008 on an unseasonable rainy evening, I attended the auction of a second, comparable property. The property was a very similar freestanding, 2 BR, 320m block in need of renovation, situated 150 metres away from the previously mentioned property.
There were less onlookers and less bidders. The property opened boldly (by the eventual winner) at $400,000 AUD and was steadily and genuinely bid up in $10,00 and $5000 increments by 4 strong competitors.
The property was sold at $445,000 AUD.

These were the closest comparables that I had seen in that time. The land was smaller on the second property, where square meterage is at a premium.
My conclusion is that both properties were sold under similar conditions in very different markets. (Adelaide peaked sharply Dec 2007) Taking into consideration slight differences in allotment sizes and other minor variables, both properties were of similar characteristics and sold in different markets for very similar prices over a volatile period over 16 months.

Direct Negotiations has access to the facts.

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Lowest Australian interest rates since 1964

With the RBA slashing rates by 1% to 4.25% today, the housing market is poised for a significant increase in activity amid improving buying conditions and easing affordability constraints.

The extraordinary series of cuts now forecast would take the Reserve Bank cash rate to 2.5 per cent within six months. If the cuts passed through to mortgages, standard variable rates would hit a level not seen since 1964, when they were fixed at that level under the Coalition government of Robert Menzies.
Harley Dale, chief economist with the Housing Industry Association, said there are already some tentative signs that inquiries from investors are starting to pick up. "I think many are looking at their sums and are realising that with the amount of interest rate cuts and what remains a very tight rental market where yields are still climbing, it is now a good time to buy. Despite not getting the growth in asset at the moment, it's actually a good time to be investing in property particularly with what's happening with the share markets."
Tim Lawless, national research director with RP Data, said the rate cut would see further activity in the lower end of the market. "We do expect the markets that are likely to respond to the interest rate cut are the ones in the lower price segments because there has been a lot of pent-up demand building for these types of properties from first homebuyers and lower income families over the past few years. They are the markets that are becoming more active now and probably the ones that will respond first to further falls in interest rates."
However, Lawless said buyers are likely to remain very cautious as uncertainties over jobs continue to dominate.
"I don't think we're going to see a sudden increase in buying activity as a result of the latest rate cut. We have started to see more people go to open houses and inspections, but we haven't even seen a strong buying behaviour just yet. I think we're going to see the start of a gradual return to the market. It will be quiet over Christmas holidays so it won't be until the first quarter of next year that we're going to see any real signs of increase in sales volume as buying conditions and affordability will continue to improve."

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 (0)8 84631997

Back In Black

Nationally, property value growth is back in the black.
Claims that the Australian property market would in 2008 experience a major downturn have been proven incorrect based on the most recent findings of the RP Data-Rismark Hedonic Property Value Index, which in October again showed that Australian capital city property prices had increased for the second consecutive month.
Released today, the RP Data-Rismark Hedonic Property Value Index showed that Australian dwelling prices had increased by 0.3 percent over the three months ending October ’08. On a month-on-month basis, Australian dwelling prices have now risen in the months of both September (+0.2 percent), based on the ‘final’ RP Data-Rismark index numbers, and in October (+0.4 percent) using the latest ‘indicative’ estimates.
Using Australia’s largest property database, the RP Data-Rismark Index results are reported by the RBA in its Statement on Monetary Policy and have recently been selected by the ASX as the basis for the ASX’s new residential property derivatives market. Moody’s and SIRCA have both independently concluded that the RP Data-Rismark Index results are the most accurate measures of house price change in Australia.
Based on RP Data-Rismark Index results, RP Data head of research Tim Lawless believes that the doom and gloom merchants have misunderstood the fundamentals and the diversity of the Australian residential property market by predicting that Australia was headed for a market-wide implosion in 2008.
“The facts are that over the past 12 months Australian property values have declined by just 0.8 percent which is a phenomenal result when compared to the S&P/ASX 200 index which reported a decline of 40.5 percent,” Mr Lawless said.
“The October RP Data-Rismark Index results reinforce my suggestion that the Australian property market has moved through the bottom of its cycle.”
“While we are likely to see property values remain relatively flat for the first half of 2009, it appears from the RP Data-Rismark Indices that Australian property values have proven to be remarkably resilient despite multiple interest rate hikes in early 2008 and the effects of the credit crisis.”
Rismark International managing director Christopher Joye said “The recent recovery is consistent with the big improvements in affordability brought about by the RBA’s decision to cut rates by 1.25 percent in September and October, combined with the government’s announcement that it would increase the first home owner’s grant as part of its $10.4 billion fiscal stimulus package.
“The RBA’s 0.75 percent rate cut in November has lent further support to the market with mortgage rates having fallen from a peak of 9.6 percent in August to around 7.7 percent today. Based on current futures market pricing, we should see mortgage rates fall below 6 percent during 2009,” Mr Joye said.
“The recent improvements in market conditions are also in line with housing finance volumes released by Australia’s largest mortgage broker, AFG, which announced that its October 2008 home loan volumes were the strongest since November 2007 rising by 18 percent in the month. Australia’s biggest property listings website, realestate.com.au, has also released data showing record increases for 2008 in home buyer activity during the months of September, October and November.”
“Recent dramatic improvements in affordability combined with Australia’s substantial housing supply shortages, low mortgage default rates and the absence of large volumes of distressed sellers will see the residential property market continue to deliver robust performance in 2009.

“With home loan rates likely to fall below 6 percent in 2009 and record low vacancy rates driving up rental yields, it is likely that more and more investors will begin to view the market in a positive light. For example, a recent report by RP Data identified 45 suburbs around Australia where the average rental property was likely to be cash-flow positive,” Mr Joye said.
For savvy investors the timing to enter the market is now better than ever according to RP Data’s Tim Lawless – “For investors who are willing to go against the flow, buying conditions are exceptionally strong and yields are improving every month,” he said.
“The fundamentals underlying the Australian property market are extremely robust. Investors need to take into account current supply constraints, infrastructure delivery, immigration, vacancy rates, rising rents and expectations that interest rates will continue to fall. These are the basics that should fuel capital gains for investors.”
“There is a very strong likelihood that more and more suburbs around Australia will move into the realm of positive cash flow.”
“With dwelling values flat, interest rates falling and rental rates increasing, yields are improving every month. These positive cash flow suburbs will be mostly concentrated in either the inner city unit markets or the regional townships driven by the mining sector or agriculture.” Mr Lawless said.

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

Aussie Expats return to Adelaide

Over the last few months, Direct Negotiations have had a substantial increase in the number of clients from the UK, Europe and Asia purchasing homes and investment properties in Adelaide.
This is represented by an increasing number of Australian Expats who are looking to the resilient Adelaide market for investment and/or the next logical career move.

Low interest rates, stronger finance sector and job market, palleatable exchange rates and a First Home Owner Grant of up to $25,000 - not to mention the sun is shining!

There are a record number of Aussies leaving London to return home to Australia - 2700 individuals per month.

The global credit crisis has had at least one positive spin-off. The crisis is driving expatriate Australians home, pushing up interest in property in the resilient South Australia/Adelaide market. The demand for property buyers agents from expats had especially escalated in recent weeks.
There is strong interest from expatriate Australians, many of them banking and finance professionals, who are looking to return home to escape the credit crunch in places like London and Singapore. They want to secure property upon their return or even before they come back.

If you are considering purchasing property in Adelaide, your first point of contact should be http://www.directnegotiations.com.au/ Our team of buyer's advocates will take the time to understand your individual needs in order to find the right property to suit your requirements. We are business people ourselves, so we understand that different people have different needs. We can organise finance, property search , negotiation , conveyance/property settlement and even placement of tenants to provide income for investors. First Home buyers can take advantage of our preferred pricing and have (FHOG) money left in the bank after their purchase. We guarantee to save you money on your next real estate purchase.
Go to the website, or give us a call on +61 8 84631997

Keeping it real - Adelaide property prices.

This month we have seen quite an increase in first home buyer activity in the Adelaide market. It makes sense. There is a good supply of stock- good entry level homes, that have been on the market and overstayed the anticipated duration of their marketing campaigns initiated before our 2% interest rate decrease and then suffered a long wait while the global financial instability was being reported.
The Adelaide market has enjoyed 16-18% growth 2007-2008. The market has levelled in recent months, which means it is an excellent time for a first home owner to buy quality property and enter the market. The government has put a time limit to their FHOG increase, so we expect to see strong activity and competition in this sector after Jan-Feb if buyers are to settle their purchases in time.
Not every house is going to be a good, long term investment and it is essential to identify several aspects that determine value in today’s market. Times have changed.
Properties in the $200k-upper $300’s will hold their values in the medium term. Why? The government is injecting funds in order to boost first home ownership in a tough market. If they buy well, they could, subject to serviceability, purchase their first home using the government’s recent windfall, and have money left over after purchasing costs. Effectively this is real estate, “no money down”...but you must buy well.
We have recently been purchasing quality properties in the $400 – $700K at very good prices. The properties being sold in this price range are typically heavily mortgaged, so there are pressures to retain as much equity as possible for the vendors. Negotiations are taking longer and must be handled carefully in order to buy these homes well.
The $950k- $1.2 million is where there is room for price reduction. The pressure is on. Owners here are exposed to the stock market, SME’s and the govt is taking more rather than handing is over as in the case of the First Home buyer category.
You make your money in real estate when you Buy as opposed to when you Sell. If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

If you haven't purchased a house before... all your Christmas's have come at once.

On 14 October 2008, the Australian Government announced that it was introducing the First Home Owners Boost, which together with the current $7,000 First Home Owner Grant (“FHOG”) will provide first home buyers with up to $21,000 on houses purchased before 30 June 2009.
The Boost applies to contracts entered into on or after 14 October 2008 and will leverage off the administration of the current FHOG scheme (Noting that some details are yet to be finalised with the Commonwealth).
The First Home Owners Boost will provide an additional $7,000 to first home buyers purchasing an established home before the end of June 2009. First home buyers purchasing a newly-constructed home will receive an additional $14,000 on contracts signed before the end of June 2009.
Time limits will apply on the building and completion of the newly-constructed home in order for first home buyers to qualify for the First Home Owners Boost. A newly-constructed home means a property that has never been sold by the builder/vendor, or been occupied as a residence by a tenant or other occupant. The purchaser must have proof, such as a statement from the vendor or other evidence, that the property meets these requirements for them to be eligible for the higher level of the First Home Owners Boost.
The FHOG eligibility criteria are generally that:
the applicant be a natural person;
the applicant be at least 18;
the applicant be an Australian citizen or permanent resident;
the applicant or their spouse must not have received an earlier grant;
the applicant or their spouse must not have had a prior interest in residential property;
the applicant must occupy the home to which the application relates as the applicant’s principal place of residence for a continuous period of at least 6 months (or a shorter period approved by the Commissioner) commencing within 12 months of completion of the eligible transaction (or within a longer period approved by the Commissioner).
If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997

South Australian major projects and investment opportunities

South Australia has traditionally enjoyed steady growth and the indicators tell us that this will continue with our mining, exploration, defence contracts as well as unprecedented skilled immigration levels.
South Australia is currently undergoing the largest injection of funds and infrastructure since its founding history.
Adelaide, South Australia is Australia’s least costly place to set up and do business, and has been rated as one of the world's most cost-competitive locations for aerospace.
South Australia supports many complementary aviation/defence projects, including $8 billion Air Warfare Destroyer Contract ;10-year $1 billion deal to maintain and upgrade the AP-3C Orion aircraft fleet; multi-billion Collins class submarine through-life support contract; relocation of Australia’s new Mechanised Battalion Group to Adelaide, (capital construction commencing in late 2008)
South Australia is a key minerals supplier, with almost 40% of the world’s known recoverable uranium reserves and significant volumes of copper, gold and silver. Oxiana’s Prominent Hill project ;Iluka Resources' Jacinth/Ambrosia Heavy Mineral Sands project; Terramin Australia’s Angas Zinc project ; Uranium One’s Honeymoon uranium mine; Exco Resources’ White Dam gold mine

Adelaide residential rental yields above 6% in select areas.

Adelaide and South Australian real estate has again shown resilience in a tough economic climate.
If you are looking for reassurance, here are 5 solid reasons that Adelaide has again been the top performer for property investors.

1. Over the last 120 years property prices have risen on average 10% per year -despite wars, droughts, Asian meltdowns, 20% interest rates in the late 80’s, the recession we had to have etc. On a $300,000 property compounded at 10% a year the value the property would double in just 7 years that’s $42857 a year -more than some people get paid at their full time job.

2. Supply of residential housing in Australia is at an all time low, down from 17000 dwellings a month to 13000 dwellings per month and continuing to fall, with no foreseeable supply meeting demand according to the HIA (housing industry of Australia) . The calculated total undersupply right now 190,000 homes!

3. Adelaide had its biggest net population increase last year and is on track for an even bigger increase this year! People need somewhere to live!

4. Interest rates are coming down fast - which is great because…

5. Rents are going up fast - with rates coming down and rents going up there are some amazing rental yields in selected areas!

If you are looking for a well performing investment property, an addition to your existing property portfolio or a home to live in, We guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ , or give us a call on +61 8 84631997