Boom, boom, boom goes Sydney property

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It was a strong week for property, with vendors ramping up sales in the lead up to the Easter period. Sydney, Adelaide and Perth experienced record high auction volumes for the year, however research house Core Logic RP Data says these volumes haven’t dampened demand, which has been well supported by the latest interest rate cut.

This week, a preliminary clearance rate of 77.5% was recorded across the combined capital cities, up from the 75.9% recorded last week and 67.7% this time last year.

Weekly clearance rate, combined capital cities

20150330 - weekly clearance rate com cap citiesSydney’s clearance rate of 84.6% was on par with last week’s 84.8%. RP Data says buyers responded well to Sydney’s high volumes – total auctions stood at 1,330 – to help maintain the booming market.

Melbourne also experienced very high volumes, with 1,600 properties going to auction. A preliminary clearance rate of 78.5% was recorded, compared to 77.1% last week.

Capital city auction statistics (preliminary)

20150330 - cap city auc stats5 handy investment tips

If you’re looking to maximise the return on your investment property, CEO and co-founder of WBP Property Group, Greville Pabst recommends regular rental reviews, every six to nine months, to make sure you’ve got your asking price in line with market rates for an equivalent property type and location.

Letting these reviews lapse, and in turn, asking too much, can result in longer vacancy rates when all could be avoided with some simple due diligence.

Some other tips include the upkeep of kitchens and bathrooms and ensuring other amenities, like air-conditioning and laundry facilities, are provided. Giving tenants these simple luxuries can help ensure they choose your property over another.

And if you really want to maximise the rental income for your property, consider renting the rooms separately. “Platforms such as Airbnb are a great way to advertise short stays and to rent the property for a premium during special events, such as the Grand Prix. But, be careful, some states have laws against this type of leasing without the required licensing,” says Pabst.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.

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