Well, the federal election is finally over, and what a result! The mere fact that it is over will, in itself, create certainty in the property market, but even more so given the Coalition is back at the helm and changes to negative gearing and capital gains tax are off the table. Add to that the recent announcement that APRA will review and likely lower its guidance on serviceability assessments that banks perform when giving credit – particularly its guidance of using a 7% minimum interest rate when assessing whether borrowers can afford a loan - and it’s all looking very positive for the property market going forward.
We expect both seller and buyer activity to pick up in the second half of this year and prices will likely start to grow again, or at least bottom out. As we approach spring, more vendors will also be coming to the market with hopes to sell well. Clearance rates have been progressively increasing each week and we may well have reached the bottom of the market in Melbourne.
The re-election of the Coalition government has cleared the way for investors to come back into the property market. The near miss of Labor being elected - and their negative gearing and capital gains tax property policies being implemented - goes to show that investors shouldn’t rest on their laurels and assume that they can take their time when it comes to entering the property market. The tightening of bank lending policies we’ve seen in recent years also highlights that inaction can cost opportunity altogether for buyers who are slow to make a move. As I always say, the best time to buy property is when the bank will lend you the money. From there it’s about making a smart decision and buying the right property, in the right location, with the right attributes for growth, at the right price. And that’s where we can help!
If you want help identifying opportunities in the Melbourne market or regional parts of Victoria from a qualified buyers’ agent, contact us for some advice today.
Disruption in real estate
I’m proud to announce that I have been named as a finalist in the Industry Thought Leader of the Year category for the REB Women in Real Estate Awards 2019. My nomination is for recognition regarding my thoughts on the disruption of the real estate sector both with Artificial Intelligence (AI) and the poor servicing of customers in the industry.
Disruption is not just happening in the use of technology, but the manner in which customers are inadequately serviced. The real estate industry is in transition, and agents are vulnerable to rapid change that can displace careers.
I see the need for hyperpersonalised service in the real estate sector. There is a strong need for the rise of the professional Property Advocate to come to the fore. Advocacy is about protecting, looking after, guiding and supporting clients. It’s about people, not property. This is the foundation of my Property Advocacy Franchise offering (Miriam – is there a web page we can link to here?) and will enable forward thinking agents to transition from being transactional and sales based, to becoming advocates where they can stay relevant in a rapidly changing industry, become skilled in advocacy and create clients for life.
We recently saw Purplebricks, which was labelled a real estate ‘disruptor’, exit the Australian property market. Purplebricks failed as they took a simplified approach to a more complex agency offering in Australia. The UK estate agency model isn’t the same as the Australian entrepreneurial and personalised model. Vendors also expected the same service levels for a much lower fee and that was never going to succeed. Agents were paid a mere $1,000 for each sale on top of a base salary, which provided little incentive to go the extra mile for vendors. It goes to show that commoditising an industry that is based on relationships and a high service offering will struggle to succeed.
For more information on our property advocacy services, contact us today for an obligation-free discussion.
Why do you need a buyer's advocate ?
Referred by their financial planner, Craig and Lorenz engaged our Ballarat buyers’ agent services to find them a high-performing cash flow SMSF property in the highly competitive Ballarat market, to create a future retirement income stream.
On behalf of our clients, we negotiated the purchase of a 3 bedroom, 2 bathroom period house in the suburb of Soldiers Hill Ballarat for a sale price under the vendor’s reserve. Some minor issues presented during the due diligence period, and we negotiated additional landscaping works to be completed to the value of $5,000.
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 ?
Our clients, Graeme and Jodie, wanted support and guidance in the sale process of their 2-bedroom, 2bathroom apartment in Melbourne’s leafy Hawthorn, so they engaged Property Mavens’ vendor advocacy service. We acted to make the entire process effortless, communicating clear, thorough and accurate advice.
The role of a vendor advocate is to act as a liaison between the property seller and the selling agent. We consult with you to support and guide you during the sales process, from recommending the best method of sale for your circumstances, to selling property agent selection and campaign support. We’ll help you to set realistic price expectations and be your sounding board throughout the marketing campaign, so you can make good decisions.
In Graeme and Jodie’s case, our recommendation of a selling agent and our suggestion to update and refresh the property enabled them to sell their home for a price exceeding their expectations on auction day.
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.
We had already worked with Miranda (in her owner occupied and investment property portfolio) so she re-engaged our services to buy her a third property - this one being an SMSF property. The goal was to buy for capital growth with the ability to add value via a cosmetic update.
We negotiated to purchase a 2 bedroom, 1 bathroom house in Kingsville at market value before auction, and despite competition from other buyers.
Our client paid $651,000 for the property in the middle of 2015 and just over two years later it had grown in value to $900,000; a huge 38% increase in just 29 months.
What’s more, Miranda recently called to inform us that in spite of the softer market, the value of her land on her land tax bill reflected the purchase price she paid in 2015. Given those valuations are generally on the conservative side, that’s a great result!
If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
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.
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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.