What’s the latest for real estate Victoria during COVID-19?
In case you missed it, the REIV released figures this week showing Melbourne’s property market reached a record high over the first quarter of this year.
The city’s median house price rose by 3.7% to $893,000, while units rose by 0.6% to reach a median of $641,000, demonstrating the strength of the market pre COVID-19.
While we know the virus outbreak will have an impact over at least the second quarter of 2020, Victoria’s real estate market will be in a good position to pick up where it left off when the outbreak is over.
Demand will always be high for solid investment-grade properties in Melbourne – and indeed Victoria – and while transaction levels will fall over these coming months, we’re confident growth will resume on the flipside.
Meanwhile, the Victorian Government has recently announced a $500 million relief package for residential and commercial property tenants and landlords, which will help provide certainty for landlords about their income. The legislation provides for a six month ban on evictions and rental increases, land tax relief for landlords and rent relief for tenants in financial hardship. For tenants and landlords that can’t negotiate and strike a deal about rent reductions, there will be a fast-tracked dispute resolution service, mediated by Consumer Affairs Victoria for residential property.
In good news, the State Government has also extended the $20,000 First Home Owner Grant for people buying or building a new home in regional Victoria for an extra 12 months – until mid-2021 - to help first homebuyers through COVID-19.
No matter what happens over the months to come, Property Mavens is open and here for you. If you need help – whether you’re buying or selling - from a qualified and highly regarded buyers’ agent and seller’s advocate, contact us for some advice today.
What are the current buying opportunities during COVID-19?
Many buyers are out looking for a bargain at the moment, and there are some discounted properties. They’re not a dime a dozen, but they are around. In the top end of the market prices could come down by up to 10% for some properties, but discounts will be less common for properties priced under $1.5 million, as these are still attracting genuine, qualified buyers. Property Mavens has had some success for our clients in sourcing well-priced properties up to $125,000 under our appraised value in recent weeks.
We recently purchased a property for our clients Jane and Kim that was $135,000 under market value (see ‘Why do you need a buyers’ agent’ below for more details), while we secured a large family home for our clients Anand and Anusha in the Strathmore Secondary College Zone for $50,000 under our appraisal. We also purchased a property for Geoff and Michelle that was $30,000 under the market price.
For those still wanting to buy, you need to exercise caution to ensure you are buying an investment-grade property for a good price and that has the potential for growth in the future. This is made all the more difficult with restrictions on inspections. According to the REIV the current policy is that:
“Private inspections of an occupied/tenanted residential property are permitted to be organised. An inspection is only permitted where an estate agent and one other person (the person for whom the inspection is organised by private appointment) are present at the premises.”
This is why people should engage a buyers’ agent. We are an estate agent and we can still represent our clients, inspecting a property properly, knowing exactly what to look for, to ensure you don’t end up with a lemon.
The dangers of forgoing expert advice from a buyers’ agent and relying only on a sales agent when buying property during the Covid19 crisis include:
They won’t highlight the cons of a property and will only tell you what they want you to know
Any video show throughs won’t show you any problems; only the good stuff
They can manipulate you emotionally resulting in you making a mistake
They won’t advise you about whether you are overpaying on a property
They won’t provide important ‘intel’ that you can use when negotiating terms and price
They won’t confirm if you are buying the ‘right’ or best property for your needs
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
How To Deal With YOUR Situation Amid Corona
Has the virus created a crisis, a nuisance, a boom or an opportunity?
The answer depends on your personal situation.
How you should respond depends on whether you are a home buyer, an investor, a tenant or a landlord – and whether your usual income remains intact.
With a specific budget and in a unique market due to Covid-19 restrictions, Jane and Kim needed our expertise to find, assess and negotiate buying a property for them, as they lacked confidence in dealing with real estate agents. And our carefully researched and considered strategy and advice worked, saving them over $135,000 in the process.
We purchased this 4 bedroom, 3-bathroom house in Caulfield South prior to auction swiftly and within the quoted price range, but $135,000 less than our appraisal.
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 time-poor client Chris engaged Property Mavens’ vendor advocacy service to sell five apartments for him from his SMSF, that were all managed as short stay.
Running a full-time business made it difficult for him to find the time to research selling agents and assess who was the best one, and determine how much to spend on marketing. After we made our recommendations for agents, Chris engaged three different ones to assist across four different suburbs.
This 2-bedroom, 1-bathroom Brunswick apartment sold at auction for $125,000 above Chris's reserve. Needless to say, Chris was really happy with the outcome and the agent we recommended. He also received the stress-free and professional experience he wanted.
As professional property buyers and vendors advocates, we know the difference between a bad selling agent and a great one! 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.
Our clients Emma and Jack wanted a high-yielding investment property that they could add value to over time, to match their investment risk profiles.
Our brief was to purchase a high-performing, low maintenance investment property on their behalf, and we delivered! In less than four weeks we successfully negotiated to buy a high tenant appeal property - a 4-bedroom, 2-bathroom house in Ballarat - that offered a 4.75% yield in an off-market deal.
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.