Ren­o­vated charmer will im­press

Mercury (Hobart) - Property - - Front Page -

WHAT is the dif­fer­ence be­tween a me­dian and an aver­age price and why on earth do you need to care, is a ques­tion I’m of­ten asked.

Isn’t it all lies and damned statis­tics, any­way?

Well, no. The me­dian house price is de­fined as the mid­dle fig­ure, so if an area has sold a cer­tain num­ber of homes, it is the mid­dle price re­sult that has been recorded.

Me­di­ans are not to be con­fused with the aver­age – this is the to­tal value of the properties sold, di­vided by the num­ber of sales.

De­spite us­ing dif­fer­ent for­mu­las there can be lit­tle dis­par­ity.

But as a rule, the Aus­tralian prop­erty mar­ket loves me­di­ans.

A me­dian price is al­ways less sus­cep­ti­ble to skew­ing than an aver­age, ac­cord­ing to my good friends at RP Data.

Imag­ine an area that typ­i­cally sells 13 homes a month in the $500,000 range.

The cheap­est might sell for $489,000 and then there is a clus­ter of homes across the $500,000 range, while the last two sell for, say, $625,000 and $650,000.

The me­dian price is based on the price of the ‘‘mid­dle’’ prop­erty.

So the price achieved by prop­erty num­ber seven – let’s say it is $540,000 – is re­garded as the me­dian price be­cause this is a sta­tis­ti­cally ac­cu­rate re­flec­tion of the price of stock in this mar­ket.

If a new hous­ing es­tate in the area sells with an­other 10 homes at the top end of the mar­ket in the same month for around $750,000 each, then this will change the me­dian.

Now the me­dian (mid­dle) price is the price achieved for prop­erty num­ber 12, and this price was $625,000.

Sud­denly, in the space of a month, the me­dian has jumped from $540,000 to $625,000.

But does that mean that all prop­erty in that sub­urb has now jumped equally in value? Sadly not.

Taken over a year or longer, me­dian prices can be a fairly ac­cu­rate over­view of typ­i­cal ac­tiv­ity within a sub­urb.

If you are buy­ing or sell­ing, it is very im­por­tant to take note of the me­dian prices in your area.

They can guide you on the mar­ketabil­ity of your home if you are sell­ing, AUCTIONof the week is a beau­ti­fully ren­o­vated 1950s home in pop­u­lar West Ho­bart.

The prop­erty, at 15 Rossendell Ave, will go un­der the­ham­meron Satur­day at 11am.

‘‘West Ho­bart is per­ceived by manyto be the ideal lo­ca­tion to in­vest or re­side,’’ says con­sul­tant Lynne Page.

‘‘It has in­ter­est­ing streetscapes with an eclec­tic mix of ar­chi­tec­tural styles and the pres­ence of a lovely sense of com­mu­nity spirit, with well-pa­tro­n­ised clus­ters of vil­lage stores and cafes pro­vid­ing a busy hub.’’

Afantastic op­por­tu­nity awaits to se­cure a prop­erty with prom­ise and great po­ten­tial to add value.

Con­structed of solid brick in the 1950s, the home’s good, clean lines, with a hint of the art deco style in the curved wall of the fa­cade, ceil­ing cor­nices and stucco ren­der­ing will please devotees of the post-war era.

Fresh paint­work, pol­ished floor­boards and new car­pet, com­bined with a con­tem­po­rary kitchen and walk-in pantry, en­hances this two to three-bed­room abode.

Abold, retro look for the bath­room, which in­cludes a sep­a­rate shower and bath­tub, makes a state­ment.

The liv­ing room is ad­ja­cent to the kitchen, which over­looks an ex­pan­sive, low-main­te­nance gar­den. and give you in­sights into com­pe­ti­tion from other buy­ers if you are buy­ing.

As an in­vestor, a me­dian tells you how easy it will be to sell in the fu­ture. How? I hear you ask.

Well, in most in­stances if you sell a prop­erty in an area where the price is set around or be­low the me­dian house price, you are likely to find that

Should you wish to ex­tend the ex­ist­ing ac­com­mo­da­tion and/or liv­ing ar­eas, there is po­ten­tial for new, in­ter­nal stair ac­cess down to an al­ready en­closed area/stu­dio, com­plete with plumb­ing in place and a sec­ond toi­let un­der the house.

The prop­erty will be open for in­spec­tion to­mor­row from 12.30-1pm. de­mand for your home will be strong.

As such, you are more likely to sell quicker and ar­guably the buyer will gain a prop­erty where cap­i­tal growth could be stronger.

Con­versely, some will tell you to buy above the me­dian. Here there is less sup­ply, which means that you should re­ceive bet­ter re­turns.

This is a higher-risk strat­egy.

THEHomeLoan Shop and Mort­gage So­lu­tions Tas­ma­nia are ex­cited to an­nounce they have opened an ad­di­tional of­fice on the Eastern Shore at 2/30 Bay­field St, Rosny Park.

Past and present clients are wel­come to drop by and say hello

For buy­ers, the hint here is that if you are look­ing to buy a home that is priced un­der the sub­urb me­dian, ex­pect more com­pe­ti­tion.

If you are priced above the me­dian, re­alise that you might find it harder to lure a buyer.

In­vestors look­ing for high yields and low risk should be seek­ing properties be­low the me­dian. and dis­cuss any fi­nance mat­ters, plus there is also a mo­bile ser­vice for those un­able to make it into ei­ther the Rosny or Ho­bart of­fice.

Meet­ings in the city are by ap­point­ment only.

Busi­ness con­tact de­tails re­main the same – call on 6230 6333, fax on 6234 7077, or email info@home­loan­

Me­dian price in­for­ma­tion on ev­ery sub­urb is eas­ily found on­line.

Check out myr­p­, or the Com­mon­wealth Bank prop­erty app.

STYLISH: This 1950s home at 15 Rossendell Ave, West Ho­bart, will go un­der the ham­mer on Satur­day.

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