The Melbourne market is showing signs of strengthening
The media is currently dominated by talk of the Federal Election, which has finally been called and will be held on Saturday, May 18, 2019.
If Bill Shorten is elected, and the ALP’s policy to remove negative gearing for established properties is implemented, we believe the ramifications for the market will be enormous. It will drive a spike in prices leading up the January 1 implementation deadline and lead investors to buy for a tax benefit and to purchase new ‘high risk’ property types - namely off the plan apartments and house and land packages, which historically are certain to under-perform.
Property spruikers will abound, and naive and ill-informed investors will fall victim to them, costing some their life savings. It will result in fewer investors being able to create financial security through property and therefore there will be less rental stock in the market which will drive up rental prices.
Despite the significant potential ramifications resulting from the removal of negative gearing, we hope the finalisation of the election will lead to greater certainty and in turn, confidence, from both buyers and sellers, to act.
In the lead up to the election, we are seeing the housing downturn in Australia slowing with last month’s CoreLogic figures showing the rate of decline in prices has been easing over the past three months. The 0.6% fall over March was the smallest since October last year, when a 0.5% fall was recorded.
CoreLogic’s Hedonic Home Value Index March 2019 report shows recent price falls in Melbourne – and Sydney - have some bias towards the more expensive areas of the cities, with Melbourne’s Inner East recording the largest price drop over the past 12 months. But while some areas are seeing value falls, it’s not a narrative that fits the whole market. On the ground we’re actually seeing a strengthening in some parts of the market. We’ve discussed the strength in regional areas many times, including last month, but the metropolitan Melbourne market is also showing signs of strengthening, particularly in the more affordable price ranges, with A-grade properties attracting significant competition.
We recently missed out to owner-occupiers on a hotly contested Preston property – a two-bedroom brick home with a detached studio and shed on 519sq m. Five bidders competed for the property; bidding opened at $800,000 and after being declared on the market at $880,000, the property sold for $940,000. There is very little good quality stock under $1 million on the market in the northern suburbs. Vendors are holding off from selling if they don’t have to, resulting in tight supply. As we saw with this Preston property, ongoing demand for A-grade properties are almost guaranteeing a strong result for vendors. Post Easter and the election stock levels should increase however, creating a more even playing field for buyers and sellers.
More evidence that A-grade Melbourne property will always be in demand is recent realestate.com.au data that found the city was home to 8 of the 10 most sought-after streets for buyers in Australia. Regent Street in Elsternwick was the most in demand street in the country, with Perry Street in Collingwood, Joyce Street in Elwood and Jayson Avenue in Eltham in second, third and fourth place. The other four streets located in Victoria were Swinton Avenue in Kew, Forest Street in Collingwood, Charlotte Place in St Kilda and Glen Drive in Eaglemont.
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.
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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).
The best time to buy an investment property is now!
There is a small window of time before the election to get into the market before prices start to rise, should Labor be voted in at the Federal Election, as widely predicted. If they win the election and implement their policy to remove negative gearing for established homes, prices of established properties will likely escalate as buyers jump into sought-after locations to purchase before the cut-off date for negative gearing on January 1, 2020.
There is already evidence of this in the market where savvy investors are competing for A-grade stock, just like the Preston auction we attended. Competing with 4 other buyers on a property that sold for under $1 million and some $60,000 over the vendor’s reserve is a taste of what is to come if Labor is elected into power.
For expert advice on where and what you should buy in the current market, and prior to the election, contact us today for an obligation-free discussion.
Why do you need a buyer's advocate ?
Referred by a client of ours, Fleur and David engaged Property Mavens’ metro buyers’ agent services to find them a low-maintenance, high-performing capital growth investment property to capitalise on the equity into the future.
We were able to successfully purchase a high tenant appeal property, a 2 bedroom, 2 bathroom townhouse in Pasoce Vale delivering a good yield, in just 2 weeks after engaging our services in what is a sought after price point.
Despite limited A-grade stock available in the first homebuyer price bracket due to vendors holding off selling, we secured this fantastic townhouse for our client $9,000 below the vendors asking price and hot on the heels of another buyers’ advocate. Happy clients, fantastic location and great price!
As professional property buyers’ agent we know the difference between a bad property and a good one and where to buy to generate the strongest return on your money, as well as outbidding the competition.
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 Clara and Jason wanted a stress free experience selling their home, a 3-bedroom, 2 bathroom house in Point Cook so they engaged Property Mavens’ vendor advocacy service, which provides support and guidance for those selling their property to minimise stress and maximise results.
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.
After determining which three real estate agents best suited their needs, Clara and Jason selected their chosen agent and the sales and marketing process began with gusto. This resulted in 4 bidders competing for their wonderful home at auction and a selling price in excess of their dream price!
In the words of Clara and Jason: "Property Mavens are active, engaging and knowledgeable. The best part of working with them was the fantastic guidance and assurance to trust the process, which will achieve the best outcome." And it did!
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.
Just over four years ago our clients Lucy and Robb were looking to purchase their first investment property and establish a property portfolio, but they didn't know where to start. Seeking some assistance, they engaged the services of Property Mavens.
After determining a cash flow (yield) strategy and working with a strict budget, searching commenced in a highly populated regional city and we purchased a fantastic property on their behalf in Ballarat in Victoria.
The property, which was a subdividable and tenanted duplex on a single title in the desired suburb of Wendouree was bought off market in 2015 for $295,000. By August of 2016 the property value had risen to $315,000 - prior to being renovated or subdivided - achieving a yield of 5.8%. Last year in 2018, after the homes were individually strata titled and renovated, each sold for $240,000, giving Lucy and Robb a very tidy profit indeed after costs!
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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