Newsletter - Inner Circle November 2016
Welcome to the latest news from the Property Mavens team.
It’s official - the market is booming.
Strong demand and limited stock has led to boom conditions in spring - just as we predicted.
To help our clients and friends figure out how best to prosper through property, Property Mavens has teamed up with specialist accounting group MW Partners to present a special event next week.
Tuesday, 22 November 2016, 6pm
- Setting up the right tax structures for successful property investing.
- Albert Gigl, MW Partners
- 7 common mistakes property investors make - and how to avoid them.
- Miriam Sandkuhler, CEO Property Mavens.
If you have been considering investing in residential property, then this is an evening you simply can’t miss.
We have a limited number of six (6) seats available to our clients and their guests.
To secure your seat, register with via Eventbrite here, using the password Mavens.
In our last edition, we talked about Melbourne’s west and the opportunities there for wise young buyers.
In a market like this, it pays to be wise.
Across Melbourne, buyers are chasing the ripple effect out to the middle ring, leaving behind some solid prospects ripe for the picking. While well-presented inner ring properties are drawing top dollar, astute buyers are scooping up some well-priced opportunities.
A great example is 76 Newry Street, Fitzroy North which we bought for a home buyer recently. A two-bedroom brick terrace with plenty of street appeal, this property boasted a good floorplan and an ideal location near the Edinburgh Gardens and Brunswick Street tram.
The kitchen was a little dated but we were delighted to secure this period house for $1.116 million.
Over the last two months, we have seen similar examples pop up for buyers interested in a property with solid fundamentals but needing a little elbow grease.
Many of these are in inner north areas like Collingwood, North Melbourne and Brunswick, along with Kingsville and around Footscray in the west.
Shrewd buyers focused on well located houses with an outdoor area and an adaptable floorplan requiring limited structural work are finding an affordable way to secure inner city living.
We can’t help but compare these to some of the results for similar sized houses in Thornbury and Preston and think many buyers are paying too much in their rush to the middle suburbs.
But even this pales in comparison to what some investors are getting themselves into in the inner city.
Two major valuation groups have reported they are valuing newly-built high rise apartments at 10 to 17 per cent below sale price, and three banks have issued a list of areas they will not finance any apartments, including in the CBD and Southbank.
For these investors, I fear the future is indeed bleak..
We recently met a successful but very time-constrained couple who wanted to secure their future with an investment property that provided them a variety of options to make strong returns.
Within two weeks, we were able to find them this excellent opportunity in Reservoir - a great example of how to invest wisely in the middle ring.
This area is seeing surging values and this property is ideally suited to capitalise, thanks to its tenant friendly format and development friendly land size.
Fortunately for us, our competition at the auction must have watched too many episodes of The Block. We just waited patiently for the ‘close out’ bidding tactic, then pounced.