Happy New Year to all of our readers and clients! We’re really looking forward to kicking off 2019, with one major reason being that Property Mavens is unveiling an exciting new business opportunity for women.
We’re launching the first female-led franchised integrated estate agency, for female estate agents, offering outstanding women a pathway to becoming a business owner. If you are an agent, for a low entry cost, you can be your own boss with the advantages of an established brand, back-office systems and processes, and the mentoring and support you need to make the most of your talents, so that you can enjoy the freedom, flexibility, success and income that you desire. If you’re interested in this opportunity, learn more here.
If you’re a client, rest assured you will benefit from this expansion of Property Mavens. It will mean we will have a bigger team of buyers’ and vendors’ agents to service your requirements, ensuring we continue to provide only the best expert advice and practical solutions for each and every valued client.
Did you know we also offer a Fresh Start™ service for clients dealing with the difficult circumstance of divorce? 46,000 divorces are granted each year and sadly the new year is often when people decide to part ways. For some sage advice on how to deal with property during a separation, watch this interview or get in touch with us.
If you want help finding an investment-grade home or investment property in Melbourne or elsewhere in Victoria in the current market, contact us for some advice today.
What’s ahead for the Victoria’s property market in 2019?
After the rollercoaster that was 2018, we’re all hoping for a more stable property market in 2019. Only time will tell if this will come to fruition, and how the market will play out will most likely become apparent after the Federal Election, expected in May. This will provide greater certainty for buyers and clarity on the policies to be implemented - depending on which party is elected - and how they will impact the market.
The other major factor that will determine what happens over the course of 2019 will be lending, with the banking Royal Commission findings to be handed down on February 1. APRA also recently made the major announcement that it was removing its interest-only (IO) lending cap on January 1 this year. While the impact of this may be slow to come to the fore, it’s certainly good news, clearly signalling a loosening on lending restrictions, particularly for investors. The market has over corrected to date and there is valid concern that it could be severely impacted if borrowers whose loan periods are coming to an end are forced to accept the conversion of IO loans to principal and interest. This easing of IO restrictions by APRA will enable many investors who hold multiple properties in their portfolio to breathe a sigh of relief, and it could also make new lending easier for investors going forward.
Focusing on Victoria, over the coming year I expect the Melbourne metropolitan market to continue to be a two-speed market, especially with ongoing lending restrictions. The sub-$750,000 mark will continue to be competitive while first homebuyers and investors compete against each other to secure property with their lower purchasing power, and lower interest rates for homebuyers. Downsizers will also continue to drive competition in this price point if they have sold, are cashed up and ready to spend. Capital growth should continue at a subdued rate in areas of high demand and low supply in this price point, but some properties and pockets of suburbs will perform better than others.
The top end of the market will continue to soften above the $1.25 million mark as many buyers find that their spending patterns and lifestyles are being held against them when lenders are assessing their capacity to service debt. I predict that selling agents will start to run five-week auction campaigns, to allow buyers adequate time to secure funding in time to buy their dream home.
Regionally, the markets of Ballarat , Geelong and Bendigo will continue to perform strongly as local amenity, employment, infrastructure development and affordability hold strong appeal for those buying under the $500,000 mark who are seeking to find a foothold in the property market. If you missed it, you can play our webinar with Terry Ryder from Hotspotting.com.au about regional Victoria titled What is the Strongest Growth Market in Australia right now?
Overall, it continues to be a buyers’ market for those that can secure lending and are in the right position to buy, but you must buy right. And remember, these conditions won’t last.
For expert advice on where and what you should buy in the current market, contact us today for an obligation-free discussion.
Why do you need a buyer's agent?
We were thrilled to purchase a property recently for our lovely client, Dr X. The time poor doctor was relocating for work and needed our help to buy an investment-grade home in Ballarat to live in and then later convert to a rental. After being referred by a colleague, who is one of our previous clients, Dr X engaged our Ballarat buyers’ agent services for assistance with his requirements.
We successfully met Dr X’s brief, not only finding a suitable investment-grade property in Ballarat, but purchasing the house for $10,000 under the vendor’s reserve (after it passed in at auction) and under budget. The property purchase, which is due to settle soon, will suit Dr X for now and will make for a great investment in the future due to the solid growth drivers that support cashflow and capital growth potential.
Dr X has rated us 10/10 for our services, citing the confidence he felt in entrusting us, as experts, with such a major purchase, and delivering a great outcome – one he admits he couldn’t have achieved without our help.
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
Theo was looking for independent, unbiased guidance and support when purchasing his first investment property, and found Property Mavens to be the ideal buyers’ agent. Don’t just take our word for it – see the results, as they speak for themselves!
With a brief to buy a property with the best opportunity for capital growth within 9km of the Melbourne CBD and within a tight budget, we purchased a house in the sought-after suburb of Pascoe Vale.
The property was secured for $50,000 less than market value, and lower than the vendor’s reserve at auction, in the middle of 2015 for $470,000. By the end of 2017, just two and a half years later, the value had grown by 48.9% to $700,000! That’s a growth rate of nearly 20% per year, compared to around 16% for the wider market.
Theo was so happy with the property we purchased for him, he engaged our services again to buy a second investment property, and says he could never buy a property without a buyers’ agent again now, given the results.
If you want similar results. It’s 100% obligation and cost free.
Love to talk real estate?
If you want to invest or buy the right home for your budget, click here to book a time, or call us for a chat about securing your financial independence.