GEELONG is not only Victoria’s best performing regional area, but Australia’s, according to new CoreLogic data. The Regional Market Update report found the city achieved Australia’s highest regional results once again, with house values rising by 9.1% for houses and 7.6% for units over 2018. This compares to the Latrobe-Gippsland region, where median house and unit values increased by 8.6% and 4% respectively. Rents in Geelong are also on the rise, with advertised rates rising by $20 per week for houses and $10 per week for units.
This is more evidence of the strength of regional areas in Victoria at the moment, with lots of opportunities around. Last month you might recall we looked at CoreLogic figures that showed, in part, prices in regional Victoria have grown by 5% over the past 12 months, the third highest growth of all capitals and regional areas, and over the past two decades regional Victoria has seen a dwelling value increase of nearly 180%.
Another part of the Victorian market showing opportunity at the moment is Melbourne’s top end. Research from Knight Frank found Melbourne’s luxury residential property market remains in the global top 50 for price growth, despite coming off the boil a little. The Wealth Report 2019 found Melbourne came in at number 41 for luxury residential market performance over the past year – the third ranked city in Australia - with 2.2% growth in luxury property prices. The previous year Melbourne came in at number 14, with 9.8% growth. Despite seeing some growth this year there has been a softening in this part of the market, which is in line with the part of the cycle we’re currently in. What it represents to me - as a buyers’ agent - is an opportunity for buyers to get in at a better price before the market picks up again.
Anecdotally, I’m finding it’s a good time to get into the top end of the market in Melbourne as prices have come off by around 10 to 15 per cent for some properties, especially as buyers are struggling to get finance. There are good buying opportunities out there, but only if vendors have to sell, as they’ll be motivated to meet the market.
In other news, Melbourne still ranks high on the liveability scale, with a global survey finding the Victorian capital came in at number 17, behind Sydney in 11th place, but in front of Perth in the 21st spot. The 2019 Mercer Quality of Living Survey ranked cities for factors including recreation, housing, public services and transport, economy, political and social environment, and education. Austria’s capital Vienna came in the top spot for the 10th year in a row.
If you want help identifying opportunities in the market in Melbourne or regional parts of Victoria from a qualified buyers’ agent, contact us for some advice today.
How do you successfully buy and sell in a changing market?
I recently presented an informative webinar in conjunction with Terry Ryder of Hotspotting.com.au about how to minimise the risks of buying and selling at each of the five life stages. If you missed it, here’s a recap:
First of all, the 5 stage life of buying a property are:
First home (when the bank gives you the loan)
Upsizing (when you sell then buy, but subject to speed of local market)
Divorce (when you sell then buy, but subject to speed of local market)
Downsizing (when you sell then buy, but subject to speed of local market)
Retirement/Nursing home (when you sell then buy, but subject to speed of local market)
Over each of these stages home buyers can face a number of challenges, including:
Being time poor business owners and professionals
Being susceptible to buying poor performing property
Information anxious clients can feel overwhelmed
Mum and dad homebuyers think all properties are good investments
Being misled by under quoting and pay too much
Not knowing where to start, or how to go about it
Receiving conflicting advice in the market place, which leads to confusion and indecision
Not knowing how to value/price property and therefore they keep missing out
When it comes to prices, having X, Y and Z to consider
Having to rely on unqualified or inexperienced friends or family for advice
So what can you do to overcome some of these issues? Below are some strategies buyers can use to minimise their risks.
Buying Tips for Success
Don’t procrastinate or overanalyse hoping that the market will improve/drop/crash
Loan approval is king - don’t assume your loan approval will automatically be extended for the same amount if it expires
Develop a clear buying criteria – consider must haves/non negotiables/areas of flexibility
Develop a clear buying or auction bidding strategy and play out scenarios
Ensure you know property values and price the property correctly to buy
Seek expert help from an independent licensed buyers’ agent such as Property Mavens before you buy a property and especially if you need help at any stage or keep missing out when bidding. We offer different packages for buyers, including Full Service, Assess and Negotiate, and Auction Bidding or Negotiation Only.
The first property you buy is a stepping stone for your life so it’s important to get it right. Time wasted searching and missing out in a competitive or rising market is costing you money!
Meanwhile, the home seller needs can encounter the following potential costly selling mistakes over their journey:
Not knowing the best sale method, which agent to use or what to pay them
Agent selection - right brand/agency/agent
Overspending on the property marketing campaign
Failing to present the property properly for sale or know whether to update the property
Not understanding property price vs personal needs, which can kill the sale
Failing to understand the pros and cons of quote ranges
Not knowing how to complete the agency authority to protect their interests
Not agreeing on a reserve price
Failing to have not have a backup plan re settlement timeframes
An inability to agree, which means people can’t move on with their lives
Relying on unqualified or inexperienced friends or family for advice
So what can you do to overcome some of these issues? Below are some strategies sellers can use to maximise their profits.
Selling tips for Success
Be wary – every agent will tell you they are the best, so choose carefully!
Ask why now is a good time to sell (or why it isn’t)?
Make sure the agent you appoint is the one who is on the property and managing the campaign – not a junior or assistant
Be careful of the marketing plan and costs – you won’t need everything they are proposing
When setting the reserve consider why you are selling and the importance of your next steps
Make sure you sell and buy in the same market if its rising
Don’t renovate your property in case a buyer may want to do it to their taste
Seek expert help from an independent licensed vendors’ advocate such as Property Mavens before you sell your property
Have you checked your property investing and buying expertise lately? You can test it here for free and rate your expertise.
For expert advice on where and what you should buy in the current market and each life stage, and how to ensure you get the buying and selling process right, contact us today for an obligation-free discussion.
Why do you need a buyer's agent?
Adam and Susan wanted an investment-grade property in Ballarat to diversify their portfolio and generate income, so they engaged our Ballarat buyers' agent services to help.
The couple 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 property – a 3bedroom, house in Soldiers Hill delivering a strong 4.5% yield in what is a highly competitive market.
The property was purchased at market value in a private sale, but against strong competition. We bought it against two other unconditional offers with a strategically considered subject to finance offer that won the property! The purchase will settle soon, and we are confident it is a fantastic addition to Adam and Susan’s portfolio.
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.
Why do you need a vendor's advocate ?
Chris needed help selling some property out of his SMSF. Running a full time business make it difficult for him to find the time to research selling agents and assess who was the best agent, h ow much should have spend on marketing and in addition, his was a short term stay apartment so there was some complexity regarding the management agreement. In short , the agent he selected secured $125k over the reserve on the day, which was an insane price for the type of property and its location. This was the first of 5 properties we sold for Chris via our Vendor Advocacy Service Read more here
A partner in a financial planning firm referred our clients Felicity and Mark to us to develop a property portfolio for them within their self-managed super fund. As a busy professional couple, they didn’t have time to research or buy themselves.
We determined a capital growth strategy and searching commenced in a high-performing cluster of suburbs. Our search ended with the purchase of the perfect off-market property for our client’s needs - a 2-bedroom, 1-bathroom house in the popular residential pocket of Flemington, close to amenities. The property was purchased under Felicity and Mark’s budget, and we ensured the vendor repaired $2000 of maintenance issues before settlement.
The investment has been a great success to date, with the property living up to its capital growth potential. In just 35 months it grew in value by more than 40% or more than 13% per year, increasing from $745,000 in December 2014 to $1.05 million in October 2017. Over the same period the greater market grew by only 24.2%.
If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
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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.