We are at the end of February and timely that I provide my report on both the sales and rental markets since the beginning of 2020.

Our leasing department has procured quality, qualified tenants for more than 100 properties so far this year!  Not only is this a record for our Company but it is testament to our leasing team who are prepared to work all hours to make certain investors’ properties are leased as promptly as possible while carefully ensuring the calibre of prospective tenants is maintained and references checked thoroughly.

Our auction program for the year began with a unit in Drumalbyn Road, Bellevue Hill exceeding reserve price by over 3% and at last night’s auction (pictured above - standing room only) three properties were submitted by BradfieldCleary and all three sold under the hammer above owner expectations.  A delightful freestanding residence at 6 Faraday Avenue, Rose Bay was keenly contested with the hammer falling at a bullish $5,150,000.  A charming freestanding home in a sought after parkside location at 420 Glenmore Road, Edgecliff fetched $2,610,000 after very competitive bidding.  The “convenient to everything” unrenovated semi cottage in Avoca Street, Randwick achieved $1,825,000.

An opulent and spacious apartment in the prestige beachfront block “The Bondi” was sold pre-auction as was a two-bedroom unit in the “Peninsula” building in Darling Point for $1,486,000. Interestingly the previous comparable sale in the block was also made by BradfieldCleary in February 2019 for $1,200,000 which reflects the confidence boost the market has enjoyed post-2019 Federal Election and after three interest rate cuts.

Generally, our open houses have been very well attended in 2020 continuing from the positive market sentiment experienced in the final quarter of 2019.  Stock remains on the tight side and this is contributing to more competitive auctions and higher auction clearance rates. 

We would be privileged to hear from you should you be considering selling or require property advice of any kind.

Many of you will have read over the weekend of the changes for Australian ex-pats to the Capital Gains Tax rules.  Although passed through Parliament in 2017 these changes seemed to sneak below the radar until now with the 30th June 2020 date they take effect fast approaching. 

Pedro Goncalves writing for International Investment website notes that thousands of Australian expats will be hit with capital gains tax as the Federal Government passed its A$581m plan to change CGT arrangements for people living overseas.

The exemption for Australian expatriates has been available since 20 September, 1985, and was applicable so long as the home was rented out for no more than six years at a time. However, CGT tax exemption on their family home is to be scrapped under the approved changes.

It means that potentially thousands of Australians will be hit with capital gains tax if they sell their property after 30 June, 2020 while a resident overseas, and the tax bill will date back from the time the owner purchased their home, not the point at which they moved overseas.

For someone who purchased in the late 1980s (after September 1985), that could mean a hefty tax bill.

The bill will impact Australians who live abroad but who come to Australia for temporary periods. It will also apply to foreign nationals who buy a home in Australia to reside in while living in the country, which they subsequently sell before moving back home.

Foreign residents who already held property on May 9, 2017 will be able to claim the CGT main residence exemption, if they sell their property on or before June 30, 2020.

The bill has attracted intense criticism from the tax profession since its inception, with many expressing concern over the retrospective impact in denying the main residence exemption as far back as 20 September 1985, when CGT was first introduced.

KPMG tax partner Mardi Heinrich said the policy measure's pathway through the parliamentary process had been "tortuous". "It will also apply to foreign nationals who buy a home in Australia to live in while working here, which they then sell after returning to their home country," he told Australian news outlet ABC

"Furthermore, it will impact Australians who ordinarily live overseas and have their main residence overseas, but who come to reside in Australia for a temporary period."

The Tax Institute's senior tax counsel Bob Deutsch called it an "outrageous piece of legislation".

There are concerns that a high number of Australian expats are unaware that the previous six-year temporary absence rule is no longer applicable and would be caught out by the new rules.

I have personally written to our overseas landlords but I thought it very important that everyone be made aware of these significant changes. 

Anyone thinking of a kitchen make-over may be interested in some of the latest kitchen appliances from around the world.

COFFEE MACHINE

Have you ever woken in the morning dreaming of a strong cup of coffee? The Top Brewer by Scanomat is the world’s first app-controlled coffee machine.  The app allows you to be the barista, letting you customize your drink to your liking and even save it as a favourite for future enjoyment.  

TOP JUICER 

A completely new way to serve juice. revolutionise the way you serve fresh juice to guests and customers with the stylish Top Juicer juice machine. The Top Juicer delivers fresh juice from a stylish tap at the touch of the Top Brewer app, whilst the main unit is hidden neatly under the counter below. Top Juicer perfectly complements the Top Brewer coffee machine, allowing you to serve a wide selection of premium beverages in an ultra-modern minimalist way.

THE DACOR HERITAGE WINE STATION

The Dacor Heritage Wine Station is the first automated, temperature controlled, four-bottle wine dispensing and preservation system for the home. With the ability to select a tasting amount, half glass, or full glass all while keeping your wine fresh, you can't beat it! 

FRUCOSOL GLASS FROSTER

For impressive drinks presentation, the Frucosol Glass Froster creates the illusion of a frozen glass without the tedious waiting. Flash freeze any glass in an instant with a powerful jet of CO2, with a cutting-edge design, this glass froster is the ultimate addition to any bar or restaurant. With a mystical frozen mist surrounding your glass, every drink has the power to leave you in awe. 

BLACK INTERIOR REFRIGERATOR BY JENN-AIR

Luxury appliance innovator Jenn-Air has reimagined the traditional white refrigerator interior with a stunning black interior called Obsidian. It is unique, gorgeous and opens your eyes every time you open the doors. 

I am sure you agree some of the above sound fabulous!!!