Welcome to Spring! The next three months is what we in real estate usually call the ‘Spring selling season’, where more properties traditionally hit the market and sell.
Will that happen this year, given the current COVID situation around Australia? Well, it might be pushed out a little due to the lockdown, with more people holding off on listing and selling, and in-person inspections unable to take place, despite buyers being keen to snap up property. But we know that when the lockdown lifts the market will get very busy again, as housing decisions will just be postponed, as they have been in previous lockdowns, and will be revived once restrictions are lifted.
A recent CoreLogic analysis found sales activity in Melbourne (and elsewhere) has been subdued through extended lockdowns, but recovers strongly afterwards. Last year, we saw more sales activity in December, which traditionally would be a quieter month., to make up for a lack of activity during lockdowns. This year we expect the same to happen, and potentially carry on through January over the summer period, especially if restrictions are eased by then. Buyers are still very much in the market, and with many having saved money during the past two years, being unable to travel overseas, are cashed up and ready to go.
NAB has forecast that demand will see prices will rise by more than 20% in Melbourne by the end of next year, with expectations of a 17.6% rise by the end of this year, followed by growth of 3.5% next year.
The Real Estate Institute of Victoria has called for the State Government to lift this ban on in-person inspections during the current lockdown, as it not only impacts home buyers, but sellers, renters and property managers, but we are yet to see this restriction eased.
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.
Should you buy in hotspots?
We often see stories in the media on property hotspots, and these can be alluring to investors, who, of course, want to buy in an area set for growth. But how much credence can you put in these articles, and the selection of these hotspots? Should you rush out and buy in these areas?
Even though we’re currently in a property boom, it doesn’t mean that every property for sale – and every location – is a good investment. So in a nutshell, you do need to select your location (and property in that location) carefully, but you should always do independent research and due diligence – don’t just rush out and buy in an area because someone has declared it to be a hotspot.
In a seller’s market it can be tempting to buy whatever you can get your hands – or winning bid – on, but this is fraught with danger, as you can end up with a poor-quality property that will not grow in value and may be difficult to sell.
The factors you need to consider in identifying a location and property include:
• Days on market (the longer it has been on the market, the less appeal it has)
• Previous price growth (over the short, medium and long term)
• Future land supply (too much means there could be an oversupply, which can dampen future capital growth)
• Employment opportunities (can go to the calibre of the tenant you might attract)
• Proposed infrastructure (results in more people wanting to move to an area, hence higher demand)
Investors need to weigh up the macro-economics of an area: supply and demand driven by population growth, land availability, housing starts, mineral exploration, tourism issues, infrastructure development by state and federal government, and business investment in infrastructure.
Micro-economic factors are also important including sustainable future growth as a result of population growth and migration, plus amenities such as public transport, hospitals, schools, employment and public transport.
There’s a lot to consider, and unfortunately it’s easier to get it wrong than to get it right, especially if you’re not experienced.
If it seems to overwhelming, seek independent advice. 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.
Sarah and Kevin originally contacted Property Mavens because they wanted advice to help them make an informed high-quality choice about what properties they should invest in. However, after talking to us they instead decided to engage our Ballarat buyers’ agent services to help make a good choice, as well as to save time on finding and securing an investment themselves.
With a good budget and in a hot and very fast-rising market, Sarah and Kevin wanted their SMSF to purchase a low-maintenance property with potential for capital growth while delivering a strong yield in the interim. We were able to successfully purchase this fantastic property, a 2-bedroom, 2-bathroom house in Ballarat which is a highly competitive market.
The property was purchased at market value in a private sale against strong 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?
After deciding to sell her home, Soula sought out our expert Vendor Advocacy advice to support and guide her throughout her sales journey.
We determined which 3 agents best suited her needs and from there, Soula selected her preferred agent. The sales and marketing process for her 2 bedroom, 1-bathroom heritage apartment in Prahran then began with gusto.
The result was a negotiated price that was a huge $75,000 over the appraised range, much to Soula’s delight! Her apartment was sold via a private sale, under tough lockdown conditions with limited buyers. That’s when the right agent’s skillset makes all the difference!
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.
Dr Fairleigh engaged Property Mavens as a buyers’ agent to assist her in buying a home in Ballarat after being referred to us by her mother. She wanted to live in the home while practicing medicine in the city initially, with the intention for it to then become a cash-flow driven investment property, to generate income and moderate equity over the longer term.
We purchased this property, a 3-bedroom, 1-bathroom house in Ballarat via a private sale using stealth negotiation tactics in just eight days after Dr Fairleigh engaged our services.
We purchased the property for $425,000 in 2017 and now, four years later, it is worth $625,000. That’s a whopping regional 47% increase in value, equating to 12% capital growth per year!
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.
Go Forth and Prosper !
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