Latest news with #propertyvalues
News.com.au
2 days ago
- Business
- News.com.au
Sydney homes $500k pricier than next most expensive city after rate cuts fuel big spending
Recent interest cuts have ignited another surge in Sydney property values and house prices could average an unprecedented $1.5 million by as early as spring if their current trajectory continues. PropTrack's latest Home Price Index released Monday showed the median price of dwellings, based on sales of units, townhouses and houses, rose 0.36 per cent over May. It was the fourth successive month of growth in prices since the Reserve Bank announced the first of two interest rate cuts in February, with prices up about 1.5 per cent since the cut. Recent growth has also marked a rapid turnaround from late last year when prices were falling and buyer demand slumped as cost of living pressures squeezed aspiring purchasers out of the market. The median price of a Sydney house is now $1,471,000, while the unit median has risen to $820,000. REA Group senior economist Eleanor Creagh said the market was picking up momentum and it was likely house buyers would soon be paying an average of $1.5 million across the Greater Sydney area. This would put Sydney prices a good $500,000 ahead of the country's next priciest city Brisbane, where the median house price is currently $998,000. 'Interest rate cuts have been the clear catalyst for growth and we can expect more price rises to come,' Ms Creagh said. '(Cuts) have boosted buyer demand and improved confidence. There is also an expectation among buyers that lower rates will lift prices and that has brought forward a lot of people's buying decisions. 'Another factor is that there's less uncertainty in the market. The federal election has passed and some of the global economic concerns have eased.' Mortgage Choice broker James Algar said the impact of rate cuts on buyer confidence could be seen in rising requests for loan pre-approval. 'We're starting to get a lot busier,' he said. Auctioneer Edward Riley, fresh off an auction sale where the price went $450,000 over reserve, said it was clear that FOMO, or the fear of missing out, was 'creeping' back into the market. PropTrack indicated that the strongest markets since the interest rate cut in February have been the southwest and inner west. Prices in the former have risen by an average of about $22,000, or 2 per cent, since the cut, while in the inner west the increase was about $30,000, or 2.33 per cent. Mr Creagh said some of the growth in the southwest region was likely the result of increased competition for properties in the areas around Bradfield, which will form part of a precinct around the Western Sydney airport slated to open next year.
Yahoo
3 days ago
- Business
- Yahoo
Property values are cooling in Miami-Dade. New report hints at weakness to come
Miami-Dade's real estate market is cooling, with signs of a sharper slowdown to come, according to new numbers from the county property appraiser. The annual market summary released Friday shows a slower growth rate in properties' taxable values than this time a year ago — up 8.5% in 2025, compared to 10.7% growth in 2024. This is the first time Miami-Dade has recorded single-digit growth since the start of 2021, when the early months of the pandemic initially depressed real estate sales. 'The real estate market, after years of growth, appears to have stabilized,' said Property Appraiser Tomás Regalado. While he noted the pace of new construction was higher going into 2025, Regalado said: 'I don't believe that trend will continue.' While the headline number of an 8.5% increase in countywide taxable values suggests decent growth in home prices, some details of the report hint at a buyer's market to come. One countywide measure of changes in values that is calculated to more closely match market values showed growth of only 3.6% from 2024 to 2025. Last year it grew by 10%. Some of the notable figures in the report include: Developers and homebuilders created nearly $4 billion in new construction last year in the cities of Miami and Miami Beach alone, accounting for almost half of the new construction value in all of Miami-Dade. For existing properties, no municipality saw the kind of surge in values than did tiny Indian Creek Village, the elite 'Billionaire Bunker' island that's home to presidential daughter Ivanka Trump and Amazon founder Jeff Bezos. Without new construction included, Indian Creek Village saw taxable values spike 19%. At the other end of that scale is Virginia Gardens, with an increase of just 1.4%. The boomtown award goes to El Portal, population 1,900, which saw taxable values grow the most when combining existing and new construction. El Portal saw values climb 33%.
Yahoo
25-05-2025
- Business
- Yahoo
'Spending Time': Tippecanoe's hot market leaves some buyers searching for affordable homes
WEST LAFAYETTE, Ind. — In their rural West Lafayette home on Monday, May 19, Andrew Jeffries' family of five is settling in after a day full of work and school activities, passing through the living room of their roughly 1,373 square foot house. Jeffries and his wife, Kourtney, purchased the three bedroom, two bathroom home on Hawthorne Ridge Drive for $135,000 in 2017. Moving from Crawfordsville to West Lafayette, Jeffries said the couple didn't think this home, the third they've owned and lived in since they married in 2015, would be their "forever home." But now, as property values in Tippecanoe County continue to increase, Jeffries said they feel stuck in their mortgage. Amid the nearby incoming development of the "Millbrook," a housing development estimated to build 771 new homes valued between $350K to $1 million, Jeffries said he worries the nearby construction will likely further drive up the cost, and property taxes, of area homes. "I know it means more money coming in (to Tippecanoe County), and I'm not opposed to a housing development," Jeffries said. "I am opposed to the price tag, and I am opposed to doing it without a plan for improving our infrastructure." Joseph Spivey, a real estate advisor with Silver Lining Real Estate Group, said Jeffries isn't alone in his concerns, noting the West Lafayette home owner's sentiments were ones he'd heard echoed through his own clients. "Young home owners have a lot of apprehension about getting into the market," Spivey said. "Yes, home values are going up, but there is not enough clarity out there for how to get to the path of home ownership." As new project developments have come across his desk as a Tippecanoe County Commissioner, Tom Murtaugh said so has the conversation of affordability in new housing developments. In late 2022, Tippecanoe County officials received $30 million in READI funds that were used to fund a regional housing study, improve regional water infrastructure, sewage, sidewalks and broadband projects across the region. Some of those READI funds, Murtaugh said, went to the city of Lafayette to fund the expansion of sewer and water to the south of the city, opening up hundreds of acres for new housing development. While expanding sewer and water access is a key to increasing land access for housing, Murtaugh said another key was finding a way to build more single family units on smaller lot sizes. During Wednesday night's monthly Tippecanoe County Area Plan Commission meeting, APC staff will present an amendment that would allow for a new zoning option for developers called R1C. Amanda Esposito, APC assistant director, said the new zoning would allow for homes to be constructed on lots as small as 4,400 square feet versus the current smallest zoning option for rural developers of R1B, which allows for lot sizes of 6,000 square feet. Steve Schreckengast, member of the Builders Association of Greater Lafayette and president of Citation Homes, said he and other developers first approached APC staff with the idea for an R1C zoning option as an effort to help reduce the cost of housing in Tippecanoe County, placing more homes on a single acre. "There are other options to help drive down the cost, like the new townhouse ordinance, which is single family attached homes. But that requires the construction of two or more within the development," Schreckengast said. "R1C will allow for more single-family detached homes, but they'll just be built on more narrow lots." In recent months, Indianapolis-based Arbor Homes brought plans to the APC for a new neighborhood that initially planned to be majority R1B construction. But neighboring residents in the Raineybrook subdivision voiced their disapproval, leading the developer to move some of the project from R1B to R1A, eliminating some of the planned housing. Given that much of the new construction taking place within Tippecanoe County is outside of city limits, Murtaugh said the concerns such as that of the Raineybrook residents are ones he hears often, noting neighbors are often displeased with anything other than R1 zoning. "I encourage folks in the community to be more tolerant to different developments around them," Murtaugh said. "Housing is a real issue and we need housing of all types." When meeting with new clients who are searching for a home, whether it's their first home buying experience or their fifth, Spivey said he asks the same question. "I always ask them if they think this purchase will be their forever home," Spivey said. "Being as curious as possible for the home buyer and working from their point of view helps quite a bit in navigating the market." Younger home buyers, a client base Spivey said he tends to see a lot of, are warming to the idea of living outside of Tippecanoe County and rural areas, he said, particularly if they are looking at a price range between $200K to $250K. "For them, it's a lot of crunching numbers on where they want their kids to go to school, how far away are they willing to be from family," Spivey said. "But I have also seen situations where I have helped a young family buy a home in the rural areas, and then their aunt or uncle or whoever will reach out to me and want to move, too." New build price tag trends have become common in the low to mid $300k starting range, Spivey said. While younger families have been able to manage budgeting higher, Spivey said buyers realize how quickly the change of a counter top color or the repositioning of a window within a wall space can effect their home's price. "If a builder has a certain layout and style option for the home, they will go off what is most efficient," Spivey said. "I just went through this with a young couple who went through the new build process. Sometimes they will say the homes start in the upper $200K range, but as you add or change things, even as much as going from an electric stove to gas, the price can creep up." For Jeffries and his family, he said he knew when they purchased their home that some additional projects would need to be addressed in order to keep up on the home's general maintenance, but it wasn't anything that deterred them from the home entirely. The reason for the family's move, Jeffries said, was due to his job at Subaru Automotive of Indiana, and the location of their home was partially chosen due to the nearby Tippecanoe School Corp. If the Jeffries were to sell their house today, he said, he believes it could list for around $250K, given neighboring home price listings, the amount of land his home sits on, and proximity to TSC schools. Jeffries said his own health complications make the situation a little less flexible, knowing he will need to pay out-of-pocket costs associated with his illness in years to come that will be several thousands of dollars. The 1,373 square foot house works for his family, Jeffries said, as his son, Alex, plays on the family's computer against the living room wall. While at times he said the home can feel small, he feels comfort in knowing that no matter what happens, he and his wife will be able to make their mortgage payment. But if the family were to sell their home today, Jeffries said he isn't sure where they would go in order to provide more space for a similar price tag. Uninterested in uprooting their children from their schools, Jeffries said, the family of five will likely stay where they are in their 1,373 square foot home. Spivey said if the Greater Lafayette area could find a way to build new homes for less than $250K, homeownership would become more attainable to more residents. "If we could find a way to do this, it would help a lot more people feel stable and secure in our community," Spivey said. "And when people feel that way, especially as homeowners, they become more involved in their community. It creates a ripple effect that we all should want." Jillian Ellison is a reporter for the Journal & Courier. She can be reached via email at jellison@ This article originally appeared on Lafayette Journal & Courier: Tippecanoe's housing market is hot, but 'affordability' can be sparse
Yahoo
24-05-2025
- Business
- Yahoo
Why Peter Schiff says a house is a 'money pit' and that renting is a 'better option' for many — do you agree?
Moneywise and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Buying and owning a house is often considered a significant financial investment and a milestone in personal wealth building. However, economist Peter Schiff believes that this notion is simply not true. During a recent appearance on the Iced Coffee Hour podcast, hosted by Graham Stephan and Jack Selby, Schiff was asked about the common belief that, for many, a house represents their primary means of saving. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Schiff, who runs Euro Pacific Capital, strongly disagrees with this perspective. 'A house depletes your savings. It's a money pit,' he said. 'It's crazy the amount of money that a house costs you.' Proponents of homeownership often argue that property values appreciate over time. For example, the average sales price of new houses sold in March 2025 was $497,700, compared to $492,700 in February, according to the U.S. Census Bureau. But not everyone is convinced that this trend tells the whole story. 'People think, 'Oh, the house appreciates' — not always,' Schiff cautioned. 'It's inflation that's doing it. All that's happening is your land is keeping pace — but houses don't.' This raises an important point. If inflation is the main driver, is owning physical property the only way to benefit from rising real estate values? Not necessarily. Here are a few other ways to invest in real estate without the burden of a mortgage, maintenance or timing the market. If you bought a house years ago and sold it today, chances are you will receive more than the purchase price. However, Schiff cautions that these sales often have significant caveats. 'Even if somebody tells you, 'Oh, here's this house that I sold for $1 million and I bought it, whatever, 10, 20 years ago for $500,000,'' he said. 'If you think about all the money they put into that house over that period of time, they may not have made any money.' He explained that houses can require significant upgrades, which can be costly. Read more: You're probably already overpaying for this 1 'must-have' expense — and thanks to Trump's tariffs, your monthly bill could soar even higher. Here's how 2 minutes can protect your wallet right now For investors who want exposure to the real estate market without the headaches of ownership, maintenance and costly upgrades, the U.S. home equity market offers opportunity. This $36 trillion market has historically been the exclusive playground of large institutions. But Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property. The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments. This approach provides a hands-off way to invest in high-quality residential properties with the added benefit of diversification across regional markets. Minimum investments start at $25,000. With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership. The choice between buying and renting a home hinges on factors like your finances, lifestyle, local market trends and interest rates. While home ownership is a personal decision, Schiff believes one option often makes more sense. 'It depends on your circumstances and where the home is located,' Schiff said. 'But for a lot of people — and this has been the case for a long time — renting is a better option.' His advice? Save the money you'd spend on homeownership and invest it instead. Schiff also points to government policies that have skewed the housing market, such as tax breaks for mortgage interest that aren't available to renters. Add a sharp rise in interest rates — from about 3% three years ago to nearly 7% today — and the case for buying can become weaker for many. Beyond the purchase price, homeownership comes with hidden costs like maintenance, upgrades, insurance and property taxes. But you can still benefit from rising real estate values and generate income — without being a landlord. One option is tapping into this market by investing in shares of real estate through Arrived. Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, potentially earning passive income without the headaches of being a landlord. How it works is simple: Browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends. Access to this $22.5 trillion asset class has traditionally been limited to elite investors — until now. Here's how to become the landlord of Walmart or Whole Foods without lifting a finger Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Are you rich enough to join the top 1%? Here's the net worth you need to rank among America's wealthiest — plus a few strategies to build that first-class portfolio This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Mail & Guardian
21-05-2025
- Business
- Mail & Guardian
Building castles in the air or laying solid foundations? The role of advice in property dreams
According to the experts, residential and other forms of property such as retail property and holiday accommodation, can be one of the best investments one can make. But, depending on a number of factors, it can also be one of the worst. The devil is always in the detail and for the average person who wants to look at this kind of investment, they may not have the necessary knowledge to make an informed choice. Property Booms and Falls South Africans are very pro property ownership, and from around four decades ago right up to the early 2000s, property investors saw incredible growth in residential property values. One could buy a property anywhere and was almost guaranteed double-digit returns over the next two decades. It became investor folklore that you could almost never lose on a property investment. The strong run of property values up to the end of the last century came to an ending when interest rates spiked with the prime rate topping out at 24% in mid-1998. Bond rates surged with many investors desperately seeking to sell top value properties. Property values went into freefall. By the year 2000 interest rates normalised and we saw demand for high-end properties increase to levels not experienced before. Today, property in areas such as Johannesburg are even seeing a decline in value and owners who invested a mere five or ten years ago, may be seeing their investments decline due to factors such as poor maintenance of the city. The anecdote above highlights that with property investment, success isn't just about choosing the right location or property type, it often hinges on timing, which can carry significant risk. Alternative Approaches to Property Investments There are many opportunities, some offer lower risk with steady returns, while others come with higher risk but the potential for greater rewards. Take holiday accommodation as an example. This has been a popular form of investment for many, particularly with the holiday e-renting platforms now available to market your property for holiday rentals. There are risks, however, as anyone who was renting during the pandemic will tell you. Another mistake people make is to use peak time accommodation in the rental for personal use or for family and friends, as this cuts out your most profitable renting periods and reduces returns significantly. Retail property investments can produce decent returns and are mostly available vis investment funds, and other investment products such as ETF's and unit trusts that invest in property portfolios. This is likely to produce a more stable return but can also be risky with major market shifts or key properties in the investment portfolio having deflated incomes. Property Risk Mitigated While there are a great variety of options available to potential property owners or investors, there is a real need for them to spend enough time finding out the risks associated with these investments. This can help formulate a plan based on what the investors' expectations are and to determine if the risk level compliments their goals, and if possible, to plan to mitigate these as far as possible. This is where looking for the right advice in the right place becomes a key factor. Talking to an accredited financial adviser is not only smart but can help to build up a complete picture framework for investments and risk management to see you hit the right values and returns for your hard-earned cash. Getting the
