Callagher Estate Agents was awarded Most Outstanding Longest Serving Business at the 2012 Inner West Local Business Awards on Wednesday 16 May 2012.

This is a new category for the local awards which recognised long standing local businesses within the inner west.

Callagher Estate Agents is a family owned and operated business established in 1899.  The agency was founded by Joseph Callagher, maternal great grandfather of current owners and brothers Cary and David Giezekamp.  Managing Director Cary Giezekamp accepted the award held at the Burwood RSL Club.

“It is rare that a business is successful for over 100 years as we have, especially in such a competitive industry as real estate,” Giezekamp said.

Callagher Estate Agents were also nominated for Most Outstanding Real Estate Office with Devine Real Estate Strathfield, First National Marrickville, Strathfield Partners and Exclusive Real Estate Concord.  Callagher won the award category in 2011.

A sunlit apartment peacefully poised on the first floor of a 1970′s Marrickville security block successfully sold at auction for $455,000 by Callagher Estate Agents.  With with popular interest from investors and first home buyers, the apartment offered leafy green views and a central setting on the quiet end of Livingstone Road, moments to Marrickville village shops, CBD transport., lakeside parks, Cooks River and the Annette Kellerman Aquatic Centre.  The property was sold under the hammer on Saturday 31 April 2012 by sales agent Vittoria Pizzolato and the onsite auction conducted by Callagher’s in-house autioneer and Director, David Giezekamp.

The property market is showing signs of increased confidence with Inner West Auction clearance rates reaching a high 76 per cent last weekend – the highest clearance rate so far this year.  There is also speculation that the Reserve Bank of Australia will announce an interest rate drop on 1st May after the March quarter inflation figures came in well below forecast at just 0.1 per cent.  The news of lowering interest rates is expected to attract confident bidding at this weekend’s auctions.

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The Inner West again was the stand our performer for auction results, clearing 68 per cent for the last weekend in March – the biggest auction day since 2010.  In comparison, the Sydney average was 54 per cent.  More than 730 auctions had been scheduled for auction on Saturday 31 March 2012, of which 142 properties for the Inner West, however many sold prior.  *Source: Australian property Monitors.

The Reserve Bank has left interest rates unchanged today at 4.25% following its April monetary policy meeting noting that while credit growth remains modest, “housing prices have shown some signs of stabilising recently, after having declined for most of 2011, but generally the housing market remains soft.”

This marks the third consecutive monetary policy meeting that the RBA has left the cash rate unchanged.  The RBA announcement followed the release of underwhelming retail sales figures from the ABS, which showed a 0.2% rise in February after a 0.3% gain in January and a flat December. The February figures were in line with expectations.

It also followed weak building approval figures issued yesterday.

Borrowers must now wait and see if lenders will adjust rates independently of the RBA move.

Thirty-nine percent of homebuyers believe now is a good time to buy a home, with homebuyer confidence up 2% and back to levels last seen in March 2011, according to the latest edition of the Genworth Homebuyer Confidence Index (HCI) – a biannual measure of borrower and would-be borrower sentiment.

The key drivers of confidence are the decrease in mortgage stress and Australians’ increasing comfort with debt. As of March 2012, only one in five (22%) homeowners has experienced mortgage stress in the last 12 months, compared with one in four (25%) in September 2011.

Ellie Comerford, President & CEO of Genworth said, “Despite lenders not passing on the full 50 basis points of cuts, we can see the lowering of the cash rate by the RBA since September 2011 has made a significant impact on borrower sentiment.”

Mortgage stress caused by interest rates has fallen from 50% in September 2011 to 32% in March.

House prices are seen as less of a hurdle for potential First Home Buyers (FHBs) than any other factor – only 7% of respondents said the area they wished to buy in was too expensive, down from 21% in September 2011.

This finding is supported by the Housing Industry Association (HIA) Affordability Index, which improved 2.3 points between the second and fourth quarters of 2011, and is now at its highest point since December 2009. Falling interest rates and rising wages are the main factors influencing this increase.

“While cost of living pressures and an increase in unemployment are likely to strain households, currently these problems are being offset by positive factors such as wage growth, low inflation and interest rate cuts. The Australian dream of home ownership is not fading as increasing affordability improves borrower sentiment,” adds Comerford.

First Home Buyer (FHB) confidence was up by 1.5% to 99, levels similar to the national confidence level before the GFC (global financial crisis). The proportion of potential FHBs surveyed who said they were unable to save for a deposit fell from 45% to 30% between September 2011 and March 2012.

Recent FHBs were more optimistic about meeting mortgage repayments than the average homebuyer, with 84% of those surveyed not expecting to have difficulty meeting repayments in the coming year, compared with 78% of average homebuyers.

“The proportion of first homebuyers who said they would be unable to afford repayments fell to 19% down from 38% in September 2011,” Comerford noted.

Callagher Estate Agents is proud to announce its nomination as a Finalist in the 2012 Australian Small Business Champion Awards, Category Real Estate Agency.  This is a National Award program and winners will announced at a gala event on Saturday 21^st April 2012 at The Westin Hotel in Sydney.   Entry to the award required a written submission outlining Business Achievements, Staff Training and Initiatives and Business and Environmental Sustainability plus supporting documentation.  Go Callagher!

A healthy yield is important for any investment.  In the case of property, it is the annual rent divided by the price paid then multiplied by 100. Yields for houses and units are often between 4% and 6%. To keep a strong yield it is important to buy into an area that has a low vacancy rate – less than 3% will ensure that tenants will pay more for your property. It is
not recommended to purchase in areas where there is a lot of new development going on, as this could lead to a glut in housing. Well-located properties in desirable suburbs
close to transport options are often good for investors, as they will appeal to tenants.

Capital gains tax is the tax charged on the capital gains made from the sale of an investment  property, but not your primary place of residence, acquired after September 1985.  Investors pay CGT if their gain exceeds their capital losses in an income year.  However, for property bought after October 1999 and held for at least one year, the tax is half the rate or a maximum of 24.25% for people in the highest income tax bracket.  The ATO states that a capital gain is the profit made over the purchase price plus capital expenses, such as renovations or other improvements made. It can be very complex, so be sure to have a good accountant.