Newsletter - Inner Circle December 2022

Inner Circle

Market News: Regionals tick up while cities show slowing decline

According to data firm, PropTrack, home prices in the regions are up 6.5% over the last 12 months while capital cities showed a 2.1% decline.

Property Mavens is an active buyer of investment grade property in the regions so we’re well placed to unpack what’s going on.

Across all markets, price falls have been much more evident in the premium end of the market while more affordable properties are travelling okay.

Capital cities have by far the largest share of the most expensive property.

The other factor to point out here is that capitals saw their prices peak much earlier in late 2021 while regions continued to grow rapidly until halfway through this year.

We’re still seeing good value around the middle band of the market in capital cities and some regional centres for buyers who are highly selective.

Some apartments sink while others are having a solid 2022.

Speaking of price falls, there have been some interesting movements in the unit market.

While some apartments are having a reasonably good run this year, others are having an awful 2022. Take these three Melbourne suburbs for example:

Essendon North                   -17.9%

Box Hill                                    -17.4%

Canterbury                           -17.1%

What explains this?

Take a closer look at the locations and much can be revealed. Many of our readers will be familiar with the huge development surge in Box Hill.

But there has been smaller but intense development around Canterbury and Keilor Road, Essendon North.

Unfortunately, most of the new units are small, poorly insulated and typically in bad locations and it’s the market’s rejection of these apartment styles which is dragging down these suburbs’ median price.

If you’re looking for an apartment in Melbourne, engage Property Mavens and we’ll show you how to pick a unit with real growth potential

If you need expert advice or help – whether you’re buying or selling - Property Mavens is here to guide you through the property market.  To talk to a qualified and highly-regarded buyers’ agent or sellers’ advocate, contact us today.

Expert Insight

It really has been the story of 2022. After years of low and record low interest rates, the price of money has surged this year.

Is that surge about to stop?

We have a feeling it might. While inflation is still high, in Australia and across much of the developed world, inflation looks to be peaking in many, but not all countries.

Many commentators now think that while Australia is likely to have a 25 basis point rise in December, that may well be our last for this cycle.

That’s good news. While Property Mavens doesn’t expect a rapid decline next year, we do think there will be a moderation then slow decline in rates towards the end of 2023. 

Stirling wanted to purchase his first home and we were able to help him find and buy this beauty in Blackburn North.

Even better, thanks to our tactics at the auction and the negotiations afterwards, Stirling was able to sign the dotted line at a price $50,000 under the vendors reserve

"What can I say - Miriam and her team helped me find a beautiful home so quickly. Even with a wide brief that I provided, it didn’t take long to find a property that fit my liking perfectly.”

If you want help to identify an investment-grade property like this one, whether it’s a family home or an investment property, click here to book a time with us to discuss your requirements. It’s 100% obligation-free. 

For Diana, the time to downsize had come and that meant selling the family home.

Even though she knew quite a bit about real estate, Diana contacted us wanting the expert advice and support to guide her through the process

We helped her select the right agent and within just three weeks, were able to successfully manage the sale and help her achieve $120,000 more than her reserve.

As professional property buyers and vendors advocates, we know the difference between a bad selling agent and a great one. If you would like help to secure a fantastic outcome like this one, whether it’s selling a family home or an investment property, and you’re ready to get started, click here to book a time to discuss your requirements. It’s 100% obligation free.

We say this a lot don’t we, but our case files prove that the best property investment outcomes always happen over the long term.

Take Matthew and Andrea who wanted a property portfolio that would take them into retirement.

Using their SMSF, we were able to make the most of their limited budget, focusing on finding a property with a growth profile and the cash-flow to pay down debt.

We found the right place in Ballarat, successfully purchasing this property with a tenant in place (at a 5.5% yield) and negotiating the rectification of $1,000 of hidden repairs.

Now let’s have a look at where they are eight years later:

Purchased 2014                  $265,000

Sold in       2022                  $485,000

Capital growth                      83%

“Property Mavens helped us buy our first investment property and put us in touch with the whole team we needed to manage our A grade property. Miriam’s expertise shone through and she comes highly recommended for anyone who is a first- or multiple-time investor.”

As professional property buyers we know the difference between a bad property and a good one, where to buy to generate the strongest returns, how to buy to secure the best result, and what properties are really worth, to ensure our clients don’t pay too much. If you want similar results,  click here to book a time with us to discuss your requirements. It’s 100% obligation free.

Go Forth and Prosper !

Miriam Sandkuhler

CEO

If you want to invest or buy the right home for your budget, or sell your property  click here to book a time, or call us for a chat about securing your financial independence.

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At Property Mavens we choose to give back to help create social change within our business model. If you use our buyers or vendor advocacy services, you will be helping to make a positive impact within the local and wider community.

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