Many of us will be glad to see the end of 2021 and all the challenges it has brought, but many will also be grateful for the growth they have seen in the property market over the year, and the capital gains they have made.
Despite numerous and lengthy lockdowns, property prices in Melbourne have still grown by 16% over the 12 months to November, according to CoreLogic data, which is hugely significant. In regional Victoria, values have grown by a massive 23.4%, the third-highest growth for regional areas around Australia.
The past year has been a rollercoaster, with many highs and lows. When property was open for business it was booming, but then there were obviously times where the industry was essentially shut.
The highs of 2021 for me were:
• Winning Buyers’ Agent of the Year at the 2021 REIV Awards for Excellence
• Despite the ups and downs, but it was clear Aussies love property, with buyer demand through the roof
• It was the busiest year ever when the property was open for business, with more homebuyers in the market, for many reasons including low-interest rates
• I had to have a forced break due to lockdowns, which gave me a more balanced lifestyle
The lows of 2021 for me were:
• There were multiple lockdowns and weeks of no work and income for so many people. So many small businesses didn't survive as a result.
• The servicing requirements for homebuyers were tightened, making it a little more difficult to borrow, resulting in the market softening a little leading into Christmas.
You may have seen my recent piece on The Block, following the finale earlier this month. You might be interested to know that a few days after the show’s finale it was announced the Consumer Affairs Victoria was once again monitoring the real estate industry for signs of underquoting. Watch this space. We’ll provide updates if they come to hand.
We hope you all have a great Christmas and New Year, and enjoy your freedom now restrictions have eased even further this month. Please note our office will be closed from December 23rd until January 10th, 2022 . We look forward to bringing you news in 2022.
If you need expert advice or help – whether you’re buying or selling - Property Mavens is here to guide you through the property market. To talk to a qualified and highly-regarded buyers’ agent or sellers’ advocate, contact us today.
Interest rates are heading up – what does it mean?
As we near the end of the year we have started to see interest rates on the move, and this time the direction is up, despite the RBA continuing to leave the cash rate on hold at 0.1%. At the time of writing all four major banks had increased fixed rates for mortgages, with more expected to follow.
The average size of a mortgage in Victoria is now $606,000. According to Canstar, a 1% increase in rates to 3.09% would cost a borrower an extra $561 per month on a $1 million mortgage, with monthly repayments rising to $4,826. That’s no small sum, especially if you’re making payments on a tight margin.
Rises in interest rates typically signal the end of a housing boom and the return of more stable conditions. We have seen lots of news stories of late claiming a very small rate rise could spell disaster and force a whole range of property owners to sell, which could lead to a market fall, but the reality is that that is very unlikely to happen. We are expecting interest rates to rise over the next year, but it is unlikely we will see more than one or two hikes. And with the average borrower 10 weeks ahead on their mortgage, I don’t see any impact outside of the most marginal - and financially stressed - sectors of the market.
For owners of investment grade property, 2022 still promises good returns, just not at the breakneck speed we’ve seen over the last nine months.
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market and choose the right property. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
Why do you need a buyer's agent?
With a strong budget and very specific brief, our repeat clients Fiona and Marcus wanted to buy a family home with development potential in Princes Hill. They engaged our Melbourne buyers’ agent services for the second time, to provide anonymity in the purchase and a solid buying strategy in a hotly contested, very competitive market.
We successfully purchased this amazing and unique property, a 4-bedroom, 1-bathroom home, on a 565sqm block that has the potential to be redeveloped by retaining the home and renovating.
The property was purchased at auction against multiple bidders, but our clever bidding skills and experience ensured the price was under our clients’ budget.
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?
Lauretta wanted to sell her treasured family home of 30 years, a 1-bedroom, 1bathroom two storey heritage apartment in St Kilda to downsize. She needed expert advice to guide her throughout the process and sales journey, so she engaged Property Mavens’ vendor advocacy service to help.
We worked with Lauretta to secure her dream price for her home with an interested party, which also set a record for the building. The property was sold off-market and within 48 hours of Lauretta engaging our services.
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.
Referred by their financial planner, Emma and Chris engaged Property Mavens’ Metro buyers’ agent services to find them a high-performing capital growth investment property in Melbourne with the ability to manufacture equity into the future, by adding value through a renovation.
We were able to successfully purchase a four-bedroom, one-bathroom house in a highly sought after pocket of Coburg, in Melbourne’s inner north, with the potential to add significant value through future works. We purchased it on Emma and Chris’s behalf below the quoted price range and $26,000 below land value.
Following the purchase in 2019, the couple renovated the property and transformed it into a three-bedroom, two-bathroom house with space for two cars. With the renovation and growth in the market, in just two years the value of the home has grown from $844,000 to $1,450,000. That equates to capital growth of 72%, which is an amazing profit!
As professional property buyers we know the difference between a bad property and a good one, where to buy to generate the strongest returns, how to buy to secure the best result, and what properties are really worth, to ensure our clients don’t pay too much. 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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