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