Newsletter - Inner Circle November 2021
Inner Circle
Confidence abounds in Victoria’s property market
Following the easing of rules to allow one-on-one inspections in Victoria and the subsequent end of lockdown more than a week ago, our state’s property market has gone from strength to strength.
In fact, it’s going gangbusters, and with Christmas just under eight weeks away, the pressure cooker market we’re seeing won’t be slowing down anytime soon. Both vendors and buyers are confidently coming to the party, and have hit the ground running following lockdown, with plenty of new listings and strong buyer demand leading to record auction numbers and clearance rates. We are seeing some of the busiest conditions we’ve seen all year, if not for longer.
Just like everywhere, Melbourne prices have strengthened this year. According to REIV figures the city’s median house price grew by 6% in the September quarter and remains above $1 million. There are now 173 suburbs in Melbourne that have a median house price of at least $1 million. Property prices in regional Victoria have also been rising, with an annual growth rate of 22.8% for houses and 18.8% for units over the past year, which is the highest annual growth rate in over a decade.
This month we’ve seen some State Government announcements to support Victoria’s property market, including the launch of a new $500 million Victorian Homebuyer Fund. It’s a shared equity scheme, under which the Government will pay up to 25% of the property purchase price if eligible homebuyers have a minimum 5% deposit. Aboriginal and Torres Strait Islander homebuyers can buy with a 3.5% deposit and receive a government contribution of up to 35%. It is expected to support more than 3000 homebuyers.
This homebuyer fund is a great initiative. I pitched a similar concept to Martin Foley in 2015. My idea was to bring 10,000 vacant Department of Housing properties back into the supply pool via stakeholder tenants, whereby these tenants, such as single parents, could invest in the home and have an equity share. The homebuyer fund will help those including disadvantaged single parents, women fleeing domestic violence and first homebuyers.
The Victorian Government has also expanded its build-to-rent scheme to boost the state’s housing supply, making more rental properties – completed prior to 2032 – eligible for a 50% land tax discount and exempt from the absentee owner surcharge for 30 years.
In very exciting news this month I am extremely proud to announce I have won Buyers Agent of the Year at the REIV Awards for Excellence! It is such an honour, particularly during such a tough year, and I look forward to continuing to do the best possible job for my clients under all conditions.
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
Underquoting is still a common practice
Underquoting has long been an issue in the Victorian property market, and despite a crackdown four years ago with the introduction of laws that were strengthened again in 2019, it still remains a problem. Underquoting is when a property is advertised at a price lower than the estimated sale price and the seller’s asking price, and often happens more frequently in a rising market, as we are seeing now. The major issue with it is that it wastes buyers’ time and money doing inspections and due diligence, and may coerce them into spending more on a property than their budget allows.
As an example, an auction we attended in Burwood over the past month was quoted as being in the price range of $1.25m to $1.375m. We appraised it at $1.45m and it was on the market at $1.4m, eventually selling under the hammer for $1.631m, despite having termite activity. That’s a selling price of nearly 20% more than the upper price range that was quoted.
This is just one glaring example of underquoting when a property is listed, but there are many more. There is also a refusal from some agents to increase the quote range of properties when unconditional offers at the top of the range have been refused by the vendor, despite it being a legal requirement. Consumer Affairs Victoria is doing nothing about this. It seems officials will only review the price quoted for a property when a property address is printed in the newspaper and a buyers’ agent reports it.
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market and choose the right property. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
Janice and Paul were seeking a low-maintenance and strong capital growth and cashflow property in the regional city of Ballarat, so they engaged our Ballarat buyers agent services to help.
Our clients had a good budget, and despite the hot and very fast-rising market, we were able to successfully purchase this fantastic property on their behalf, a 3 bedroom, 3-bathroom house Ballarat in the highly competitive market of Ballarat.
The house was bought via a private sale, with no competition, at market value. We identified some issues prior to the purchase, so we secured a $7000 rebate at settlement for Janice and Paul.
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.
John needed to sell his family home of many years, a 3 bedroom, 2-bathroom house in Mulgrave, to downsize. Needing help, he sought out our expert advice to guide him though the sales journey.
Our vendors’ advocate determined which three agents best suited John’s needs, and from there he selected his preferred one. The marketing process then kicked off with gusto, including securing strong media coverage!
The result was the property successfully being sold at the vendor’s reserve after auction.
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.
Referred by their mortgage broker, Daniel and Carla engaged our buyers’ advocate services in Melbourne to purchase a property.
They had very specific requirements – they wanted a property with flexible leasing options, including being suitable for share accommodation, while providing high capital growth and a strong yield. They also wanted the ability to be able to add value through a cosmetic update. In terms of location, they wanted a property in close proximity to tertiary education facilities and public transport. We were able to purchase this 3-bedroom, 2-bathroom property Ballarat on their behalf in an off-market transaction for $713,000 in October 2019.
Two years later the value of the property has risen to $875,000, equating to a 23% increase in just two years, equating to growth of 11%+ each year!
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
Love to talk real estate?
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.
Sign Up to our Inner Circle Newsletter here.
Pay it forward ...
If you found this useful and know someone else who may enjoy it too, we'd love you to pay it forward by sharing it.
Giving back..
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.
Property Mavens - Smart Property Buying
Follow us
