Newsletter - Inner Circle October 2019
Inner Circle
Buyers are back
After a slow start to 2019, investors and homebuyers are now back in the market - in a big way! Data shows housing credit increased in July with the value of new owner-occupier loans up 5.3% over the month and investor loan values up 4.7% - the highest increase since 2015/2016.
We are going to see some strong auction results, and indeed we have already seen intense bidding driving prices well above the vendor’s reserve (especially as vendors have lowered their price expectations). There are fewer properties for sale but more buyers in the market, which is creating competition and pushing prices up. If you need help with your buying strategy, get reputable advisors on board like the team at Property Mavens.
In other news over the past month Melbourne was again revealed as the most liveable city in Australia, being pipped at the post by Vienna by 0.7% for the most liveable city in the world. The Economist Intelligence Unit’s Global Liveability Index 2019 scored Melbourne 100 for healthcare, education and infrastructure. Melbourne beat Vienna in the culture and environment component, but was ranked lower for stability.
I’m excited to announce we are now buying in Bendigo! We made this decision after identifying strong growth drivers and affordability in the market. Bendigo also gives our many successful clients - that we are helping to buy multiple properties for - the opportunity to diversify their portfolios.
In testament to our buyers’ agent services, I have been named as one of three finalists for Buyers’ Agent of the Year in the REIV Awards for Excellence 2019. Winners will be revealed on October 24.
If you want help to identify opportunities in Victoria’s property market from a qualified and highly regarded buyers’ agent, contact us for some advice today.
Underquoting laws could still cause confusion
Victoria’s underquoting laws have been revised by the State Government, making it essential for agents to compare properties more accurately by considering the property’s features and land size. Previously, a loophole in the legislation enabled them to provide comparable property sales without specific criteria, which meant they could compare a house to a townhouse, for example.
The benefit of these changes to consumers is that they will finally be able to rely on comparable properties and quote ranges that are more accurate, however they could still cause confusion.
There will now be two different quote ranges that can be used - an agent appraised quote range or a vendor’s price quote range. The agent appraisal is what they feel the property is worth and will be shown with a 10% range, often with the vendor’s price within it. The vendor’s quote range will effectively be the price or ‘reserve’ that vendor wants. It will be higher than the agent’s quote range and this will now be shown as the bottom of the advertised quote range. These can show two distinctly different price ranges for the property depending on which one is used, so if buyers don’t know how to price property, they will struggle to calculate what a property is actually worth and may not be able to secure one easily.
Buyers will need to continue to do thorough due diligence when it comes to understanding the comparables used and then also be able to accurately price the property themselves. Pricing is where most buyers tend to fail, as it’s complex and many factors need to be taken into consideration.
To navigate this, buyers can seek the help of a highly skilled and experienced independent Buyers’ Advocate. Contact us today for an obligation-free discussion.
Bendigo
Our Bendigo research has indicated ongoing solid growth and yield opportunities, so we are now actively buying there for clients.
Click here to book a time with us discuss your Bendigo buying requirements. It’s 100% obligation free.
Fresh Start ™
It’s one of the most distressing times you can experience - separating from your partner.
Not only does it involve a lot of personal pain, a separation also has big implications for your finances, particularly your property holdings.
That’s why we introduced our Fresh Start service. Property Mavens takes charge of selling your family home or investment with.
- An independent assessment of what the property is worth
- Selection and management of real estate agents and intermediaries
- Advice on maintenance, styling and landscaping to secure a better price
- Best tactics to secure a successful sale
If you want a confidential discussion about making the right property decisions to secure your life after separation, feel free to call us on 03 9988 2266 (or have your legal counsel get in touch).
Referred by their financial advisor, our clients Chris and Emma engaged Property Mavens to find them a high-
Our client Carolyn wanted to purchase her first investment property - one that would deliver healthy cash flow and strong capital growth, so she engaged our Ballarat buyers’ agent services to help.
She wanted to purchase a low maintenance property with the ability to add value in time while delivering a strong yield. We were able to successfully purchase this fantastic property – a 2 bedroom, 1 bathroom house in Ballarat - delivering a strong 4.2% yield in what is a highly competitive market.
As Carolyn was a first-time investor she wanted someone reputable, professional and trustworthy (her words, not ours!) to help her, so she engaged Property Mavens. We were able to ease Carolyn’s stress levels and ensure she felt confident that she was making a good decision.
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.
Bill and Grace were referred to Property Mavens’ vendor advocacy service by their financial adviser. They were time poor and wanted a stress free experience selling their investment property, a 3 bedroom, 2 bathroom Townhouse in the Northern Suburbs.
After determining which three agents best suited their needs, they selected their chosen agent and the sales and marketing process began in earnest. Following the auction process the final negotiated price came in higher than the vendor’s reserve.
As professional property buyers and vendors advocates, we know the difference between a bad selling agent and a great one to help you secure the best possible result for the sale of your property.
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.
MELBOURNE
Living interstate, Ralph and Wilma were looking to purchase an investment property in Melbourne's CBD or Carlton.
With a cash flow strategy, Ralph and Wilma were seeking to generate income over the longer term. The couple wanted to purchase a property that they could live in when visiting Melbourne, but rent as short-stay accommodation when not in personal use. Our client’s brief included some non-negotiables to ensure the property would appeal to them personally as a priority and to also be used to generate income via short stay.
Despite being experienced investors, Ralph and Wilma found it difficult to buy in Melbourne due to a lack of relationships with agents (let alone a network of agents) and their availability for short trips made it difficult to consider auction properties. They were also very unsure of participating at auctions. The couple was referred to Property Mavens by a personal acquaintance.
Within two weeks of engaging Property Mavens, we had purchased an investment-grade property for Ralph and Wilma, a 2 bedroom, 1 bathroom apartment in the CBD. It was secured prior to auction via a swift and strategic buying tactic, at a very acceptable price. In Ralph and Wilma’s words, it was an “excellent outcome”. If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
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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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.
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