How parents could help their kids to buy their first property

The median price of property has been rising so quickly in Sydney and Melbourne that many young adults worry they will never be home owners.

The housing affordability issue isn't just about home prices. There are social and generational factors because today's young adults are less likely to be savers.

So even as home-loan interest rates are at their lowest in more than 50 years, affordability is as much about a lack of a deposit as an inability to service repayments.

Luckily, there are options for borrowers who have decent incomes and low deposits, and it's even easier if you have supportive parents.

Recent research of more than 6000 people by Yellow Brick Road showed that many parents want to help their children to buy property. If that is something you hope to do for your kids, these are the options.

First, most lenders will consider a family guarantee in lieu of a saved deposit. If you're buying a $500,000 property, need $100,000 deposit and your parents have built substantial equity in their own  property, they can offer it as security for the deposit.

A family guarantee works when the deposit is as least 20 per cent of the purchase price. The lender accepts this security as the deposit, but the borrower is responsible for the mortgage repayments. If the borrower defaults, the lender recovers costs by selling the property, and they can take any shortfall from the security offered by the parents.

While this form of deposit-financing has increased by about 30 per cent in the past five years, many home owners don't want to risk losing their property wealth if their son or daughter fails to make mortgage repayments.

This leads to another option: the non-refundable gift. If a parent wants to help their child buy their first home, while keeping their own property high and dry, they can give a sum of money to the borrower and sign a statutory declaration that the money is a gift.

Lenders, generally speaking, don't allow these deposit gifts to exceed 50 per cent of the deposit. The other half must be savings of six months or more, so the non-refundable gift is a good way for first home buyers to double their deposit, and the parents can help without putting their own retirement plans in jeopardy.

Be aware that the ability to save a deposit counts for a lot with lenders, and where a borrower has low or no savings, the lender will scrutinise their income and their serviceability.

This situation can be looked at from another perspective: that instilling good financial habits at a formative age is a good investment. The combination of high income and low savings is no way to build financial security. The key is to save some of your income, so you can turn it into hard assets. This is something worth teaching children, especially given the number of consumer temptations foisted on young people.

If you're a first home buyer who won't get parental help with a deposit, save hard and buy the property you can afford, not the one you want.

by Mark Bouris

Please contact Antony Fung on 0425 470 111 if you have any property related inquiries.

Antony Fung

Ashfield Real Estate

www.ashfield-realestate.com.au

1300 938 931

1 Car Space located in Prime Location for sale

1 car space in Pyrmont available for sale

For Sale - $44,500

Purchase this single car space in the heart of Pyrmont, moments away from Darling Harbour. Rent is guaranteed under current lease until Oct 15. Approximately 14sqm conveniently located on the first floor of the building with close proximity to the lift and swipe card access 24/7 security building.

Annual Income: $4,875.40

Outgoings (approximately):
Council: $664 per annum
Strata: $978 per annum

Contact Antony Fung (0425 470 111) or Ralf Baumann (0410 868 488)

Office details

Onside Property
Shop 4/753 New Canterbury Rd,
Dulwich Hill,
NSW 2203  
Phone: 1300 938 931
Fax: 1300 938 936
Web: http://onsideproperty.com.au

Email Office

Local buyers follow the Chinese treasure hunt in Sydney Property Market

Local Australians are increasingly following the Chinese lead in apartment-buying decisions.

Coming from a much longer tradition of living in high-density cities, apartment buyers with some kind of Chinese heritage usually opt to buy close to transport hubs, shops and restaurants.

''They're good buyers to follow because they have a checklist of what they want, and they take emotion out of their purchasing decisions,'' says the chief executive of development in NSW and Victoria for Mirvac, John Carfi.

Mirvac's new 37-level Chatswood tower ERA, the fifth tower in the Pacific Place complex, has a high proportion of Chinese buyers.

''Fundamentally, they are savvy buyers and particularly good at buying off the plan, probably because they're better educated when it comes to real estate as they're accustomed to apartment living, and most in China and Asia are sold off the plan,'' Carfi says.

''Their criteria for buying - well located, in good transport nodes and well serviced by amenities - are excellent, and good feng shui in facing north-east makes perfect sense, too.''

To the north-west, Top Ryde City Living, the $500 million five-tower complex atop the newly built shopping centre, is also popular among Chinese buyers, who may be Australian-born or come from mainland China or Hong Kong, Singapore, Malaysia or Indonesia.

''The primary reason is that there's a certain aspirational quality that comes from where you live as well as the general lifestyle attributes,'' says the director of sales and marketing with developer Crown International, Haig Conolly. ''Buyers who have some Chinese heritage like to live in developments with facilities like public transport, five-star restaurants, top-class shopping malls and employment close, and increasingly Anglo-Australians are moving the same way, with the traditional quarter-acre block no longer holding the same appeal it once had.''

When Hong Kong-born Chris Ma saw the plans to convert the fifth and final tower of ERA at Pacific Place in Chatswood from commercial to residential, he liked the look of it so much, he bought three apartments.

He set aside an $815,000 two-bedroom apartment off the plan for his eldest son, intends to rent out the $642,000 one-bedder, and the third, a three-bedder bought for $1.07 million, is pencilled in to be sold on completion for a profit, he says.

''I think that'll sell for $1.38 million,'' says Ma, 60, a father of two who makes a living from property transactions. ''I like to invest in Mirvac properties.

''My friend lived in a Mirvac house once and, after 20 years, he phoned them up and said there was a problem. They came and fixed it. It was magical.''

Ma settled in Australia in 1989 and says that of the ERA buyers who are of Chinese heritage, 92 per cent have permanent residence or citizenship, with the rest living overseas.

''Australia has a good, stable economy to invest in, has better weather than Canada … and this is a very good development,'' he says.

''I have lunch in a Chinese restaurant every day opposite the site to watch what the workmen are doing. And they are doing a very good job.''

Antony Fung

Ashfield Real Estate

www.ashfield-realestate.com.au

1300 938 931

Sydney's property market sets a new clearance rate record, the 2nd time in less than a month

Sydney’s auction market on Saturday hit a new clearance rate record of 88.2%, beating the previous benchmark of 87.5% set less than a month ago.

Of the 737 auctions scheduled in Sydney, the Domain Group reports it had collected 599 results.

Domain senior economist, Dr Andrew Wilson, said the buying trend could see the local market even hit 90%.

“That would have been a completely outrageous suggestion but it’s now becoming more likely,” he said.

The highest price was for a six-bedroom house in Strathfield, which sold for $4.42 million.

Other top sales included a five-bedroom home in Newington, for $1,666,000, a three-bedroom Federation residence in Fairlight for $2,805,000 and a house in Haberfield for $3,965,000.

The record-breaking results however have economists torn on what is next for prices in the Sydney market, after experiencing a 12.4% surge in 2014.

Economic researchers BIS Shrapnel last month told The AFR that Sydney house prices will rise, expecting to see as much as a 20% increase over the next two years.

This would push the median house price well above $1 million by June 2017.

BIS Shrapnel suggested pent up demand, a push by investors into the market and an undersupply of new housing stock would be a driving the price surge.

Meanwhile just this week HSBC Australia chief economist Paul Bloxham said the opposite.

He told News Limited that he expects the Reserve Bank to hike interest rates in 2016, a move which would cool the booming market.

He said current prices are growing at an “unsustainable pace” and warned purchasers should expect a correction down the line.

HSBC is forecasting Sydney house prices to be broadly flat in 2016 rather than suffer a big fall.

Also this week, Business Insider discussed the boom in residential construction currently littering Australian cities’ skylines. 

Referencing research notes from ANZ, David Scutt suggested that the change has almost entirely been driven by foreign investment in residential property. 

Antony Fung

Ashfield Real Estate

www.ashfield-realestate.com.au

1300 938 931

Keep Calm It's Friday........

Tasty House Chinese in Ashfield is truly tasty!!

Tasty House was one of the first places I discovered in Ashfield and quickly became a favourite. They specialise in Vietnamese dishes such as pho and noodle soup but also offer some popular chinese dishes like fried rice, sweet and sour chicken/pork on rice and black bean chicken on rice. My ultimate go-to dish whenever I frequent this restaurant is the grilled pork rib on tomato rice or crispy chicken on tomato rice. It never disappoints.

Service is quick and the drinks/dessert menu is pretty mouth watering too.

Address: 297 Liverpool Road, Ashfield

Phone: (02) 9716 5668

Price range: $10-15 for mains 

Antony Fung

Ashfield Real Estate

www.ashfield-realestate.com.au

1300 938 931

Auction frenzy in Sydney keeps property prices rising

Data shows prices are up 6.4 per cent in Sydney so far this year (2015), compared to 3.9 per cent gains in Melbourne, a 0.1 per cent rise in Brisbane, a 0.2 per cent decline in Adelaide and a 1.6 per cent slide in Perth.

Property analysts, such as Louis Christopher from SQM Research, say that most other data confirms that Sydney is where the main action is taking place.

"At this point in time we think the [Sydney] market's about 25 per cent overvalued and, if our forecasts come in for this year, it'll actually get up to about 40 per cent overvalued. It's probably about the second highest overvaluation point we've ever recorded, the highest being back in 2003 when, on our numbers back then, the market was about 55 per cent overvalued."

Mr Christopher said that, beyond Sydney and some parts of Melbourne, there is generally not much upward momentum in the Australian housing market.

"We don't believe, for example, there's a national housing bubble," he said.

"We can definitely pinpoint areas where the markets have not moved for a very long time and they are undervalued compared to incomes.

"So, even with the cheap credit, it hasn't influenced every market everywhere, because local economic factors have taken a greater hold."

Mr Christopher points to collapsing home prices in most mining towns, falling prices in Darwin and Perth, and relatively stagnant prices over recent years in Brisbane, Adelaide, Canberra and Hobart as evidence.

Antony Fung

Ashfield Real Estate

www.ashfield-realestate.com.au

1300 938 931

Mary Poppins and Ashfield

P.L Travers, Pamela Lyndon Travers, OBE (born Helen Lyndon Goff; 9 August 1899 – 23 April 1996), was an Australian born novelist, actress and journalist.^[1] She was known for her fictional children's book series featuring the magical English nanny, Mary Poppins.

The author of children's story 'Mary Poppins', was born in Queensland. However, she lived for a time on Pembroke Street - which is one of the streets that runs along the edge of Ashfield Park. To mark this fact there is a lovely statue in the centre of the children's playground of P. L Traver's celebrated character. 

So next time when you walk past Ashfield Park, come and look at the foot print that Mary Poppins (actually PL Travers) had left.

Antony Fung

Ashfield Real Estate

www.ashfield-realestate.com.au

1300 938 931

Save the date! Ashfield Council’s Carnival of Cultures is on Sunday 22 March this year.

As well as entertainment and food stalls, this year’s event will again include a range of environmentally friendly elements.

Sustainability features will include:

• free bike and pram valet parking,
• bike maintenance mechanic,
• free native plant giveaway to Ashfield Council residents (proof required),
• composting workshops and information stall,
• native wildlife display,
• recycling and waste education performance by the ‘King and Queen of Green’ and
• a water bottle refill station
• www.ashfield-realestate.com.au

JUST LISTED - 17/7-9 Loftus Street, Ashfield

Chic contemporary style renovated top floor apartment

For Sale - Offers above $650,000

This top floor security apartment has been superbly renovated to offer the very best in modern living. The home boasts impeccably presented interiors, with a spacious open plan living area extending to a sun-soaked balcony. Tucked away in a quiet street, the property also offers an excellent location, just a brief stroll from Ashfield Park, public transport, local schools, Ashfield's shops and Haberfield's popular Italian eateries.

Two double bedrooms, main with mirrored built-in wardrobes
Sleek renovated kitchen with timber counters and stainless steel appliances
New designer bathroom with separate bath and shower
Large open plan living and dining room, sunny balcony with decking
Reverse-cycle air-conditioning, floating timber floors, down-lights
Quiet well-maintained block, secure oversized garage/storage area

Outgoings:
Strata: $696 pq approx.
Water:$170 pq approx.
Council: $255 pq approx.

 

 Contact Ralf Baumann or Antony Fung on 1300 938 931

Office details

Onside Property
Shop 4/753 New Canterbury Rd,
Dulwich Hill,
NSW 2203
Phone: 1300 938 931
Fax: 1300 938 936
Web: http://onsideproperty.com.au
Email Office

Ashfield Real Estate News Update

Residential Sales agent Antony Fung

Ashfield Real Estate are your local and surrounding Real Estate Professionals

艾士菲住宅销售佳绩
下面的问题：将本地个人卖家;
你想更多的为您的家庭或投资物业？
您是否知道您需要才去市场中的先进技术艾士菲的销售策略？
你有没有考虑的好处与艾士菲房地产上市产生更大的买家的兴趣？
你曾与专家代理商当地艾士菲NSW 2131范围内？
你需要一个代理来实现最好的结果呢？
联系安东尼，在艾士菲销售专家与合并30年的房地产知识房地产
呼吁安东尼今天+61 425 470 111

Ashfield Residential Sales Success

Following questions to the local home seller;

Do you want more for your home or investment property?
Are you aware that you require an advanced technical Ashfield sales strategy before going to market?
Have you considered the benefits for listing with Ashfield Real Estate to generate greater buyer interest?
Have you spoken to the expert agents within the local Ashfield NSW 2131 area?
Do you require an agent to achieve the very best result?

Contact Antony, the Ashfield Sales Specialist in Real Estate with a combined 30 years of Real Estate knowledge
Call Antony today on +61 425 470 111

TESTIMONIAL
I recently used Antony to sell my 2 bedroom apartment in Ashfield. He did an amazing job, selling the apartment on the first day and achieving a price well above my expectations.

Antony gave me valuable advice from the start on what I needed to do to get the apartment ready for sale, on whether to go to auction or not. He was extremely easy and pleasant to deal with throughout the whole sale process.

He managed the sometimes difficult negotiations at the end really well and I felt I could trust his advice and judgement, which is really important at such a big moment.

I happily recommend Antony to any prospective vendor.
Best Wishes

Ashfield Home Owner
见证
我最近用安东尼卖我的2间卧室的公寓在艾士菲。他做了一个了不起的工作，销售的第一天公寓，实现价格远高于我的预期。
安东尼给了我从一开始就提出宝贵意见是什么，我需要做的就是公寓准备出售，是否去拍卖与否。他非常轻松愉快的处理在整个销售过程。
他管理的，有时艰难的谈判在年底真的很好，我觉得我可以信任他的意见和判断，这是在这样一个重要的时刻真的很重要。
我很乐意推荐给安东尼任何潜在的供应商。
最良好的祝愿
艾士菲房主

Ashfield Real Estate Professional Athony Fung

Introducing Antony Fung 冯建东 - Sales Associate - Business Development Manager 銷售助理及業務拓展經理. Asian Market Alliance

Focused, hardworking and honest, Antony is a fresh new addition to our talented team bringing a strong work ethic and an honest and positive approach.

Combining genuine concern for his clients and taking time to understand their specific needs, he is a respected individual offering customer service that is second to none.

Antony is backed with more than five years sales experience and successfully operating and owner of a high end fashion brand, he recognises the importance of professionalism and customer care. The opportunity to meet new people and assist them with selling or securing there future home, as well as visiting an array of properties each day are aspects of Real Estate that particularly appeal to Antony.

Prior to his sales career, Antony earned his bachelor’s degree in Business (Accounting/Finance) with University of Technology Sydney, and subsequently worked in Asia for 10 years in the corporate consulting and banking sector.

Developing his analytical skill's and his attention to detail, and also his understanding of the growing influence of the many Asian/Chinese communities in Sydney. Clients that are (local/overseas) within the Asian/Chinese sector are what Antony will be appealing to.

Outside of work, Antony is an enthusiastic fitness fanatic who enjoys crossfit, running and tennis. He believes having a healthy life style is important to keep him driven and balance-minded.
Onside Property are proud to announce Antony's role within our company, and wish him all the very best for a bright career ahead!
Antony speaks fluent English, Cantonese and Mandarin

antony.fung@onsideproperty.com.au
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