HAPPY NY DY!

| Date:29 December 2009

Many of us may look back on 2009 as a year we couldn’t wait to end. The year had barely even began and we were all exhausted: the stock market was all over the place (mostly down). Cars weren’t selling. People weren’t spending. The change many people hoped for in the new year didn’t materialize as a dramatic sunrise. It crept in in welcome and unwelcome ways.

We simply could not let ’09 pass us by without taking a sneak peek at the year that was. A conglomeration of world wide events, ’09 certainly was a colourful year where many of us lost our pants, literally eh em Tiger Woods, and some even their voices…yes! we’re talking about you Britney Spears.

There were rate cuts and hikes, somewhat of a recession and a bummer of a year for prestige home owners who saw 40% of the value of their home tumble by 40%!

We welcomed the 44th US President and farewelled one of the best entertainers this world will ever see Mr Michael Jackson. The death of the 50-year-old entertainer and self-styled “King of Pop” stunned the world.

We choked on red dust on a day when we all thought we’d been invaded by aliens and gasped at the voice of a rather unusual Scottish charity worker when she sang her way into our homes.

In a grim year that saw the global financial crisis dominate headlines and affect rich and poor alike across the world, one of 2009’s most haunting tales turned out to be that of a young Austrian woman who was forced to endure 24 years of being imprisoned by her father Josef Fritzl in a cramped stinking cellar where she was repeatedly raped and forced to raise his children.

Moving forward, a new decade, a new year, a new beginning for many of us. 2010 has all the right ingredients for being nothing short of a brilliant year. Property prices are on the rise, the stock market has stabilised and housing is still very affordable with interest rates still at an all time low.

May 2010 be a perfect 10/10 for you and your family! From us to you Happy New Year and may your troubles last as long as your new year resolutions.

PS. While many of the other agents are sleeping over the New Year break, we are open, every day except for New Years Day! We never sleep.

WHY DEE WHY?

| Date:9 November 2009

Gone are the days where most of us used to walk around Dee Why in our boardies and thongs. Seems these days many more of us are swanning around in our best designer clothes in what is now the new uber chic Dee Why!

Dee Why has done a huge about face in the past 5 years where it once was somewhat of an untidy borderline daggy kind of neighbourhood to what it is being transformed into now.

So, why the change?

In the past 5 years Dee Why has come ahead in leaps and bounds and it seems it is now the “in” place to live.

You’d have to be living in a bubble to not notice that Dee Why is located in an irreplaceable position, with many residential streets being just a hop, skip and a jump to the world famous Dee Why Beach, Manly Beach & beyond.

Loads of luxury, state of the art apartments are going up in the area which is encouraging a slightly more mature, asset rich demographic. On the other end of the scale it appears that Dee Why is now made up of a young, trendy population with 40% between the ages of 20-39 years of age. The majority of these young inhabitants seem to enjoy a rather sizeable income and many own their own property within the area. This is a real family suburb with the benefit of having a surf beach right at the front door.

One would never go hungry in Dee Why with some 46 restaurants, cafes and bars many overlooking the beach where you can grab anything from Pizza to Indian spices, there is something for everyone! With all the new developing going on in Dee Why there has been a huge increase in the number of eateries with one trendier than the next. Been to Dee Why Market Place yet???

There is a ton of sporting clubs including rugby clubs, golf clubs and of course surf clubs together with some incredible child care facilities many of them brand spanking new.

A sensational mix of shops, 280 shops to be specific, including trendy boutiques and availability to your everyday items makes Dee Why a highly desirable place to grab a dress, get your hair done or jump in to the gym.

It’s seriously central location means that you can hop on a bus and be in the CBD within a half an hour or catch a ferry from Manly Beach, just moments away.

Just walking through the streets you’d be blind to not notice just how mutli cultural Dee Why is. The fabulous mixture of races and religions introduces a wonderful flavour to Dee Why where many nationalities live together in a peaceful, safe & harmonious environment.

Of course last but not least…Dee Why is home to The Novak Agency! We’d like to think that we set the benchmark for Dee Why now being as cool and trendy as what it is….however I think we’ll have to bow down to the many developers that saw the potential in this little piece of paradise….

The Great Recovery

The Great Recovery – Sharemarket trends

•    More than half a trillion dollars has been added to the capitalisation of the Australian sharemarket since March. Market cap currently stands at just over $1.4 trillion.

•    While the value of sharemarket has lifted almost 60 per cent since the March lows, it has also become more concentrated with almost half capitalisation held in banks and resources. And just over a third of sharemarket value is held in just six stocks – ANZ, CBA, NAB, Westpac, BHP Billiton and Rio Tinto.
The Great Recovery

•    We have had the Great Depression. And in some advanced countries the recent economic downturn has been termed the Great Recession. But more positively – and in the same vein – the strong, swift recovery of the sharemarket since March could aptly be described as the Great Recovery.

•    The value of shares on the Australian sharemarket currently stands at just over $1.4 trillion ($1404.7 billion). Since March 9, market capitalisation has lifted by over half a trillion dollars ($519.4 billion) or a gain of 58.7 per cent.

•    There is still some work to reach the highs set on November 1 2007 but it looks far more achievable than appeared the case just seven months ago. Sharemarket capitalisation needs to rise by almost 25 per cent to reach record levels.

•    Certainly the fall from grace for the Australian sharemarket was remarkable. Between November 2007 and March 2009 the value of shares on the Australian sharemarket almost halved, falling by just over $847 billion or 48.9 per cent. But since, just over $500 billion of the paper loss has been recovered with just over $300 billion to go.
With recovery comes concentration

•    The recovery of the sharemarket appears remarkable, but not if you consider the performance of the economy. If an economy grows, it will be reflected in sales, profitability and therefore in the size and value of Australian companies. The Australian economy avoided recession and is now accelerating out of a slowdown. The Reserve Bank certainly expects the economy to gain pace over the coming year as reflected by the recent decision to lift interest rates.

•    In essence the sharp decline in the value of the sharemarket was unwarranted as the Australian economy failed to follow other economies into recession.

•    The main problem is that the dollars flooding back into the sharemarket have tended to flow to the main banks and resource companies.

•    Currently three of the 19 sub-sectors account for almost half the capitalisation of the sharemarket. The S&P/ASX 200 sub-sectors – Banks, Materials & Energy – account for just over 48 per cent of sharemarket capitalisation, up from just over 39 per cent at the start of 2007.

•    In fact just six stocks account for over a third of the capitalisation of the entire sharemarket – ANZ, NAB, CBA, Westpac, BHP-Billiton and Rio Tinto. Capitalisation of these six stocks has soared by $228 billion from the lows recorded late last year.

•    If the shift of funds into the ‘Super Six’ companies just represents a shift into large, safe-haven companies at the start of the sharemarket recovery then there are few long-term implications. As the recovery matures and consolidates, investors should feel more comfortable to embrace small and medium-sized companies, leading to less concentration of sharemarket value in a small number of companies.

•    However if sharemarket value continues to be concentrated into the top stocks then key indices such as the ASX 200 and All Ordinaries will be far less representative. It is important that investors are aware of the power that the ‘Super Six’ companies exert.
Have investors become too exuberant?

•    The sharemarket has rebounded a long way in a short time period. As a result, this raises the question about whether investors have become too exuberant. And in this respect an interesting dichotomy has developed. The forward price-earnings ratio, measuring share prices against earnings forecasts stands at 17.82, well above the decade average of 16.09. However the lagged PE measure, comparing actual share prices against actual earnings, stands at 14.7, below the decade-average of 15.4.

•    Which measure is right? Analysts were pleasantly surprised by the resilience of earnings in the latest reporting season and many have sought to upgrade forecasts. But it is probably fair to say that analysts still harbour doubts. So the upgrade path still has further to go.

•    The lagged PE measure requires no adjustment of views, so in the current environment it is arguably the more accurate valuation measure. The bottom-line being that the market is neither super-cheap nor expensive. If companies continue to offer positive guidance about earnings, then the sharemarket will continue to track higher, however at a more modest pace than has been the case to date.

•    CommSec expects the sharemarket to end the year around 5,000 points and lift to 5,300 points by mid 2010.

Source Craig James, Chief Economist, CommSec

LANDLORDS LET’S PARTY!!!!!!!

Yep! Looks as though the planets are finally aligning for all you investors out there with rental returns looking mighty fine. C’mon it’s your turn to celebrate!

Our mates at AUSTRALIAN PROPERTY MONITORS recently reported that gross rental returns had either remained steady or slightly increased.

Now, normally one would have thought that our heavily reduced variable interest rates might have released the pressure on rents. Well, apparently not so.

As it turns out, rental vacancy rates are still extremely low. Particularly in Sydney. The September “Rental Vacancy Report” by the REAL ESTATE INSTITUTE OF NSW asserts that Sydney has a rental vacancy rate of just 1.3%. In fact, for the vast majority of NSW (including regional centres) the rate sits below 2%!!!

Here’s the good news – it seems that property investors will not need to drop rents to attract tenants in this environment.

Recently published population projections by the NSW GOVERNMENT show that NSW will grow by 372,600 people in 5 years. That is a touch over 1,433 people per week.

The NSW Govt. also estimates that 187,300 dwellings will need to be built during this period – 720 new dwellings every week! Compare this to the number of building commencements last financial year of 457 per week (Source: ABS) and you will no doubt see a problem looming. An estimated shortfall of 263 new dwellings every week (13,600 per annum).

Another reason for property investors to party will be the end of the first home buyers grant “Boost” on the 31st of December this year.

Whilst this boost enabled more people to get into their own home for the first time, it also scared off many investors. It seems many prospective investors will be waiting until the first home buyers’ have completed their feeding frenzy. That day approaches.

The good news for investors is that median rental yields have been building over the last five years. Every capital city in Australia now exceeds 4% p.a. and the housing shortage should support this position.

Go on investors…let your hair down, throw on your dancing shoes and strike a pose….it’s your turn now to have some fun!

Cities of dreams as value of homes begins to soar

Date: October 6, 2009

Clearly Sydney and Melbourne are leading the property market recovery and now represent two of the nation’s most popular markets.

RP Data’s national home value indices published last week reveal that for the first eight months of the year Sydney home values rose 8.6 per cent, to reach a new median value of $546,867.

Melbourne also put in a stellar performance and has found its feet again to record a stunning 11.6 per cent price increase, bringing the median value up to $467,280.

These buoyant conditions are in stark contrast to the same period last year, when values were falling, sales volumes were at rock bottom and only 45 per cent of auctions were clearing.

Now we are seeing house values rising, market activity increasing, and almost three-quarters of auctions are recording a successful result.

While the sceptics have touted this as a potential market bubble waiting to burst, the figures confirm that the residential market is protected from a downturn in values by a broad range of factors.

Interest rates are at historic lows and — although rates will be lifted over the coming months — we will need to see a rise of 150 basis points before mortgage rates reach their 10-year average of 7.3 per cent.

Importantly, housing is in undersupply and the nation’s population is growing at a faster rate than in any other country in the Western world.

Australian development is being underpinned by the fastest rate of population growth since the baby boomers.

Other factors such as the health of the financial sector and lower-than-expected unemployment figures are also likely to support the housing market.

Over the next six months capital growth is likely to moderate across the Australian market.

Interest rate rises, together with a winding back of the boost to the first-home owners’ grant, are likely to dampen demand.

Tim Lawless is the national research director of rpdata.com.

Source: The Sun-Herald

WISH US LUCK 4 SATURDAY…WILL WE WIN AGENCY OF THE YEAR?

| Date:6 October 2009

Saturday night…..do do do do do do do…..Saturday night…..do do do do do do do do……!!!!

Ahhhhhhhhhhhhhhhhhh…Real Estate’s night of nights is this coming Saturday night when the whos who of the industry will frock up, hob nob and celebrate each others achievements.

We are up for Large Residential Agency of the Year. Yep! One of only four finalists. This in itself is a massive achievement and to be completely honest we are thrilled to have come this far. Taking out the big title would certainly be the cherry on top.

We would like to wish all finalists the very best of luck for Saturday Night and we will keep our fingers and toes very tightly crossed until we hear the words “….and the winner for Real Estate Agency of the Year goes to ??????????????”….

Thump Thump Thump

GOOD NEWS FULL OFFICIAL DATA CLICK HERE

Record August growth in home values despite first home buyer demand winding back.

Capital city dwelling values – first eight months of 2009
•Sydney values up 8.6% to $546,867
•Melbourne values up 11.6% to $467,280
•Brisbane values up 5.2% to $443,197
•Adelaide values up 3.1% to $ 407,227

National property values jumped by almost 2 per cent in August in the largest monthly movement since the
RP Data‐Rismark Home Value Indices began in January 2005

According to rpdata.com research director, Tim Lawless, the August results
surprised on the upside and are indicative of very high levels of buyer
confidence combined with low levels of listings.

“These buoyant conditions sit in striking contrast to the same time last year
when values were falling, less than half of the auctions held cleared.

GOOD NEWS FULL OFFICIAL DATA CLICK HERE

THE NOVAK AGENCY REPORTS – FIRST HOME BUYERS HAVE GONE WILD!!!

| Date:15 June 2009

It seems that the “in” place for 25-35 year olds to be seen these days is at open houses!

The first home buyers market has swelled to the highest level on record, data out today shows.

“There was a lull in the market for a short period of around 4 weeks and it’s gone absolutely crazy again”, reports Mark Novak of The Novak Agency in Dee Why.

First home buyers now make up 28 per cent of all dwellings financed, which is the largest proportion recorded since the Australian Bureau of Statistics began collecting the data in 1991.

The number of housing loan approvals rose by 0.9 per cent in April, the seventh monthly rise in a row. The figure was still below market expectations of a 1.5 per cent increase.

“Our stock levels are now nice and high again and we have found that certain properties have been sold prior to even hitting the market. Some properties we could have sold ten times over, there has been such enormous interest in them”, says Mark Novak.

Westpac senior economist Andrew Hanlan said the deadline was encouraging first home buyers to rush to the market.

“Where other investors have more time to make their decision, the nature of the (first home grant) deadline means they have to bring forward those decisions,” he said.

Mr Hanlan said there was a “dramatic improvement” in housing affordability, with variable mortgage rates still at their lowest since 1968.

Now here’s some juicy “goss”. If you are in the market for your first home and have not yet purchased one, you really need to get a move along.

Interest rates are somewhat unpredictable and there does not seem to be enough first home buyer properties to keep up with the demand.

Join the first home buyer party!!!

The Novak Agency, Dee Why has stacks of brilliant first home buyer properties in very affordable locations such as Collaroy, Dee Why, Manly and Freshwater.

Click here for a full list of  The Novak Agency properties for sale.

Click here to follow The Novak Agency on Twitter.

THE NOVAK AGENCY SETS THE RECORD STRAIGHT ON BUYING, EXCHANGING & SETTLING BEFORE JUNE 30!

| Date:11 May 2009

So much confusion, so many fallacies, so many wrong answers!

The Novak Agency is here to set the record straight on purchasing a property before the First Home Buyer Grant ’officially’ ends on June 30.

We have put together a little list of the most commonly asked questions that we are certain will clear up all sorts of topics on buying and selling prior to June 30:

1. DO I NEED TO HAVE SETTLED OR JUST EXCHANGED ON A PROPERTY BEFORE JUNE 30 IN ORDER TO STILL GET THE GRANT?

The great news is you only need to have EXCHANGED on the property, not settled!!!!

2. IF I WANT TO BUY A BRAND NEW PROPERTY, DOES IT NEED TO BE BUILT BY 30 JUNE IN ORDER FOR ME TO STILL BE ABLE TO GET THE GRANT?

NO! However the construction of the property must be due to commence within 6 months of signing the contract and must be completed within 18 months from that commencement.

3. WHEN DO I NEED TO START REPAYING MY LOAN ON A NEW/OFF THE PLAN PROPERTY?

The great news is….not until you settle. No repayments are necessary until the property settles!

4. ARE THERE ANY OTHER FIRST HOME BUYER SUPPLEMENTS?

YES! There are some other financial supplements that many people may not know if such as the NSW New Home Buyers Supplement and also heavily reduced and even completely exempt Stamp Duty concessions! For further info go to http://www.firsthome.gov.au/ then select your state.

5. IS NOW STILL A GOOD TIME TO PUT MY PROPERTY ON THE MARKET?

YES! There are still loads of buyers scouting around frantically wishing to make a purchase. REMEMBER the EXCHANGE needs to take place by June 30 not the SETTLEMENT.

6. WHAT ABOUT STAMP DUTY?

Stamp duty is exempt on properties up to $500 000 i.e YOU PAY NO STAMP DUTY AT ALL Stamp duty comes into effect on properties with a value of $500 000 or more however MASSIVE stamp duty concessions apply i.e on a property priced $510 000 the stamp duty usually would be $18 440 however with the new government grant YOU ONLY PAY $2249….that is a saving of $16191.00.

Want to know more? Call The Novak Agency on 1300 4 NOVAK OR 8978 6888. We’re here to help 24/7 – we never sleep! OR visit our website

We also have some fantastic first home owner properties all around the Northern Beaches of Sydney….Dee Why, Collaroy, Freshwater, Queenscliff! Check them out, they WILL NOT last….click here

Follow The Novak Agency on Twitter

MASSIVE PROPERTY BOOMS AHEAD FOR CERTAIN SYDNEY SUBURBS

A current Affair reported tonight that while many New South Wales suburbs are losing the price battle, there are a handful of suburbs that are defying the crunch and are set to see massive increases over the next 12 months!

Brilliant news for property investors!

Top NSW suburbs defying the downturn include:

Sapphire Beach
Casuarina
Kilara
Wee Waa
Lindfield
Suburbs tipped for the biggest gains in year ahead include:

Millthorpe
Ramsgate Beach
Murrurundi
Sapphire Beach
Lockhart

Our suggestion – buy up!

The Novak Agency has some fabulous buys on the Northern Beaches including Dee Why, Freshwater and even Bondi!

Get in quick as these little gems will not last!

Go to The Novak Agency website for a full list of properties for sale www.thenovakagency.com