The closing weekend for the August market saw Sydney’s 7th consecutive auction week whereby auction clearance rates sat above 70%. The story was only better in the Epping area with last Saturday boasting an auction clearance rate of approximately 80% providing further testament of improving conditions in the property market post-election. The major drivers of this recovery period are the record low interest rates and seasonally low number properties on the market creating a sense of FOMO (fear of missing out) amongst eager buyers. The sustainability of such growth will be tested in the coming months however, as we enter the peak selling period of the Spring property market.
Lending conditions continue to improve following the recent interest rate reduction by the RBA to the record low of 1% and perceptions of future movements in the interest rate have only bolstered buyer activity. These perceptions are supported by the majority of new loans being variable, rather than fixed for security.
This sense of FOMO amongst buyers is expected to ease with the introduction of the Spring Market as stock levels increase, so too does the variety of options for competing buyers, allowing them to take their time and focus on quality over opportunity.
On the ground, open for inspection numbers across the board continue to increase and auction registrations have sharply increased. The average number of registered bidders is currently at 3.5 which is double that of the pre-election period.
Looking at the July results for Epping and North Epping the volume of property transactions has steadied itself to a seasonal average for Winter however, clearance rates have jumped significantly. A number of the results are yet to be disclosed however, the highest currently released price was attained by 111 Essex Street, Epping which achieved a sale price of $2,360,000
Leasing a property to a Friend? Ensure it is documented to protect yourself – Contributed by Omega Legal
If you plan to lease your property to a family member or friend, you should document the arrangement in writing to prevent any uncertainties and potential disputes later on. It will also benefit you to have a property manager to stay on top of rent collections and maintenance and repair works.
In Dimov v Cagorski  VCAT 1039A, Dimov leased her property to her best friend Cagorski and did not put their arrangement in writing. Consequently, they later disputed about unpaid rent and requests for repairs which led to Dimov giving Cagorski a notice to vacate the premises. Cagorski refused to leave so the tribunal had to intervene. Due to the lack of documentation of their arrangement, the tribunal had to determine what rent was owed and whether possession should be awarded. The Tribunal ultimately found that Cagorski owed Dimov $7,607.15 in unpaid rent and had to vacate the premises within 14 days. Even though you are leasing your property to someone you know, you are best to document your arrangement just like any other tenancy.
If you are planning to sell your property this year, obtaining legal advice early will help ensure a smooth conveyancing process. Contact Omega Legal at firstname.lastname@example.org or call 0402 990 108 to find out more.
0434 821 219