As the housing market recovery gathers momentum, Melbourne property prices are rising. National values rose by 0.9% in September, with Melbourne and Sydney leading the rebound, with the highest growth over the month of 1.7% according to the latest CoreLogic data. Over the past quarter Melbourne’s dwelling values have grown by 3.4%. Values are still 7.9% below the peak in November 2017, however, so there is still time for buyers to get in at more affordable prices before the market returns to record highs. Housing demand continues to be strong in Melbourne due to strong demand to live here, which will continue to push prices up.
While some data providers are reporting the top end of the market in both Melbourne and Sydney is driving the national property market rebound, from what I’m seeing on the ground it’s now being driven by first homebuyers at the bottom, more affordable, end of the market (under $750,000), competing with investors and downsizers. As an example, this property in Coburg recently sold for $700,000, despite a price range quoted as $580,000 to $620,000 based on the neighbouring house selling for $580,000 just three months earlier.
In other news, earlier this month a Melbourne real estate agency was fined $900,000 for underquoting and other offences. While these took place years ago, it goes to show that if agents continue to take the gamble and underquote property, when they lose it’s going to really hurt financially!
This month we had World Homelessness Day. At Property Mavens we are proud to have supported this issue for the past 7 years. Every time a client engages our services, each Maven donates by purchasing a bed from Backpack Beds™ by Swags for Homeless. We also support to Women's Property Initiatives, which provides women on low incomes (and often their children) long-term, high-quality housing solutions.
If you want help to identify opportunities in Victoria’s property market from a qualified and highly regarded buyers’ agent who also gives back, contact us for some advice today.
Navigating property in a changing market
The property market has undergone a lot of change in recent times, much of which has been positive, with lower interest rates, easier finance through APRA’s changes and newly-legislated tax cuts, which have built on the positive momentum created by the Federal Election result. The impact of these events has been seen in improved auction clearance rates and a rebound in the Melbourne and Sydney markets which are now moving into a recovery cycle.
But there are some negatives too, including the presence of charlatan buyers’ agents and the apartment cracking crisis.
In these changing times it can be tricky for buyers to navigate the market. One of the big issues as the moment is the high demand/low supply equation, particularly in Sydney and Melbourne, with listings down (as we discussed in a recent newsletter) and clearance rates being the highest since Spring 2016. Buyers are battling for stock as a shortage hits, which can see them overpay.
Overpaying at auction is a big risk. We appraised this Coburg property I mentioned earlier at no more than $660,000, but it was purchased for $700,000. The buyer now has lender risk whereby the bank may not value it at the purchase price and they could have to find the funds to top up the difference.
Buyers also need to be wary of buying apartments, particularly as the cracking crisis continues. Buildings have not been certified properly, with the rules and regulations failing to be enforced as they should have been, with the result that they are defective. It’s shameful, and will take a lot to be rectified, with people’s lives significant affected in the meantime.
An experienced and expert buyers’ agent such as Property Mavens can help buyers to navigate the current market, adopt the correct strategy, and avoid the risks. Contact us today for an obligation-free discussion.
If you want to hear more about the risks of buying in the current market, and why you should engage an accredited buyers’ agent rather than a double or charlatan buyers’ agent, listen to my recent webinar with Terry Ryder.
Our Bendigo research has indicated ongoing solid growth and yield opportunities, so we are now actively buying there for clients.
Click hereto book a time with us discuss your Bendigo buying requirements. It’s 100% obligation free.
Why do you need a buyer's advocate ?
Our repeat clients Jeremy and Carmela wanted to add a fourth investment grade property to their portfolio in Bendigo, so they engaged our newly-opened Bendigo buyers’ agent services again to help.
This couple wanted to purchase a low maintenance property, with the ability to add value in time while generating income through the delivery of a strong yield. We were able to successfully purchase this gorgeous property, a 3 bedroom, 2-bathroom house in North Bendigo delivering a strong 4.5% yield in what is a highly competitive market.
We secured this property at market value, but below the vendor’s price, in a private sale. After identifying some issues during the due diligence period we negotiated a $3000 rebate at settlement for Jeremy and Carmela.
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 ?
Daniel and Jacqui were selling their treasured family home only two years after purchase and needed expert advice from Property Mavens’ vendor advocacy service to guide them throughout the agent selection and sales journey
Given they had only recently bought, and apparently overpaid by $50,000 at the time, we helped to guide them through price expectations and market reality, to eventually secure a price over and above what they wanted.
The property, a 3-bedroom,2-bathroom house in Armadale successfully sold over the vendor’s reserve after auction, after employing a creative strategy and via a subject to sale scenario.
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.
Mark and Mary wanted to develop a property portfolio within their SMSF, and were referred to Property Mavens by their financial planner in 2013.
After determining a strategy for two properties that included cash flow and the ability to manufacture capital growth via cosmetic renovation, searching commenced and property was purchased in the high performing regional centre of Ballarat, working to a strict budget.
In accordance with the brief we bought two properties on behalf of Mark and Mary, both of which have been successful investments. A 3 -bedroom, 2 bathroom house we purchased in Ballarat North for $10,000 under the purchase price has experienced more than double the average growth for the market over the past six years.
The property has increased in value by a whopping 61.3% over this period, compared only to 29% for the market at the same time. At the time of purchase the property had a rent appraisal of $300 per week, equating to a 5% yield.
As professional property buyers we know the difference between a bad property and a good one and where to buy to generate the strongest return.
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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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.