PROPERTY NEWS FROM BUYERS ADVOCATE

Welcome to Buyer’s Advocate monthly newsletter April 2011

We will catch up each month to talk about the most common property and market issues that we are being asked about, relevant and current facts and figures, report to you our professional and real observations of the market, and we’ll take you out into the action with a few live auction stories.

Our clients tell us the generic property news reported across the media is not easy to translate or the relevant information needed to make good decisions. We aim to provide a concise view of the market, what we are seeing on the ground and useful tips to apply when preparing to buy a property.

Please click on any of the following articles you would like to read, or simply scroll down the email to read all.

Our view on the ground
Buyers Advocate in the news
Introducing a new member to our team
Suburb profile of the month - Camberwell
Auction Action : Recent purchases
Tip of the month - check the contract!

If you want to discuss anything property related please call our office to chat with one of our advocates. Or make an appointment to meet us for an hour of personal and tailored property advice.

OUR VIEW ON THE GROUND

There has been recent speculation, both pessimistic and optimistic, on where the property market is heading in 2011. We can only judge the market on what we see on the ground. Our view is that the market is pausing for breath with good properties still selling well but any properties that have limitations, are taking longer to sell.

Some of the relevant limitations that may impact on the sale of a property are:

• position relative to a main road
• lack of parking
• houses surrounded by apartments
• mobile phone tower within 100 metres.

A number of properties with limitations sell well in a rising market as there is always a herd mentality when prices are rising rapidly and people tend to buy anything. In a more subdued market it is important to be more selective.

The openings and auctions of interest to us are being well attended, not surprising given we only consider quality properties. However we are still finding a number of properties passing in. This is often a result of the vendor having unrealistic price expectations.

Post auction negotiations can be very daunting and we find most people pay way over the odds to secure the property. It is important to be fully prepared prior to the auction and ensure you have the necessary information to outfox the vendor if you are involved in a post auction negotiation. Preparation and an unemotional approach can often yield a far better outcome.

Be wary of the price quotes in this current market. Agents are working harder to generate the interest necessary to drive a good marketing campaign. As a result we are noticing an increase in properties being quoted well below what we think it is worth.

To avoid the frustration of missing a property because it sells well above expectations, obtain an independent view of the properties worth, this way you can make informed decisions on what properties are likely to be suitable for you.

Finally we are expecting 2011 to be a moderate year for growth, with some star performing suburbs, particularly within the 15 km radius of the city as there is still a significant supply and demand imbalance.

Free Consultation
Call Buyers Advocate or visit www.buyersadvocate.com.au to book a free consultation with one of our advocates

Gold Class Movie Tickets
Refer a client who signs up for a service for the month of April 2011 and receive 2 Gold Class cinema tickets

BUYER’S ADVOCATE IN THE NEWS

Progress Leader Magazine 01 March 2011

When Buyer’s Advocate recently moved to a newly renovated, double fronted retail premises at 88-90 Burwood Road Hawthorn, it certainly was the right move.

While the location has undoubtedly raised the company’s profile, it has also enabled easier and more convenient access for both current and potential clients. Exhibiting extensive industry knowledge with over 18 years experience, Buyer’s Advocate invites members of the community to visit the new office for an obligation free chat about their offering.

Buyer’s Advocate provides a service to their clients that gives them a distinct advantage and removes the stress along with the time involved, when purchasing a property. Completely independent, Buyers Advocate works exclusively with their clients to achieve their property goals.

When asked about their process, Managing Director Leigh McConnon said, “Once appointed, our representative conducts a concise property search to find the right home to fulfil the client’s requirements. Once the right property has been found, we assess the property’s value based on comparable sales information not readily available to the public. Buyer’s Advocate will then negotiate with the managing Real Estate Agent on our client’s behalf to obtain the best price.”

“Having access to “off-market” and up-coming listings allows Buyer’s Advocate to search a wider variety of quality properties not being advertised through traditional means and before they ‘hit the market’.”

“Using highly skilled negotiators ensures the property is purchased at the lowest price according to market conditions. In many instances this can save clients thousands of dollars over and above the fee.”

Buyers Advocate specialises in sourcing properties within a 25km radius of the central business district, but has also successfully represented clients in outer Melbourne.

Having assisted homebuyers and property investors for over 18 years, the highly qualified professionals at Buyer’s Advocate remain committed to providing clients with up-to-date market information and superior service.

Buyer’s Advocate is located at 88-90 Burwood Road Hawthorn and can be contacted on (03) 9818 4499. For further information please visit www.buyersadvocate.com.au or drop by for an obligation free consultation.

INTRODUCING A NEW MEMBER TO THE BUYER'S ADVOCATE TEAM

Welcome Cate Dundon

With over twenty years of experience in client service, working with some of the largest businesses in Australia, Cate brings to us her high level of business acumen and an established and respected business network in real estate. But it is Cate and her natural affinity with people that we are most pleased to have on our team.

Cate has worked as a Buyers Advocate for several years, a Licensed Agents Representative, and understands the inner Melbourne market intimately. Having bought and sold several times for herself, Cate not only understands the real estate industry, she also understands the process of emotions and experiences of buying a property.

To add to all of that, Cate is currently studying Interior Design and will be qualified in the coming months. Property is not just a job for Cate, it is her passion.

Cate joins our team of Buyers Advocates working from our Hawthorn office.

Leigh McConnon Managing Director and Buyers Advocate Licensed Estate Agent REIV Member	Sam Lally Buyers Advocate Licensed Agents Representative	Ian MacKinnon Buyers Advocate and Mortgage Broker Licensed Agents Representative REIV Member

SUBURB PROFILE OF THE MONTH - CAMBERWELL

The suburb of Camberwell is 9km east from Melbourne's central business district in the City of Boroondara. Filled with fine Victorian and Edwardian houses, and a hilly topography, many east-west streets have an excellent view of Melbourne city.

At the 2006 Census, Camberwell had a population of 19,637.

The western, southern and eastern boundaries of the suburb generally follow Burke Road, Toorak Road and Warrigal Road.
The northern boundary generally follows Riversdale Road, except for an area in the northwest where it extends upwards to Canterbury Road, incorporating Camberwell, East Camberwell and Riversdale railway stations.

In the Melbourne 2030 Metropolitan Strategy developed by the Victorian Government, Camberwell is recognised as one of 26 Principal Activity Centres. http://www.dse.vic.gov.au/melbourne2030online/content/implementation_plans/

The City of Boroondara contains many schools, including Hartwell Primary School and Camberwell Primary School, Camberwell High School, Camberwell Grammar School, Canterbury Girls Secondary College, Balwyn High School, Kew High School and Xavier College, Methodist Ladies' College (MLC), Trinity Grammar School, Ruyton Girls' School, Carey Baptist Grammar School, Scotch College, Fintona Girls' School, Genazzano FCJ College and Preshil. Catholic schools include St Michael's Parish School (Ashburton) and St Bede's School (Balwyn North).

Camberwell’s commercial precincts are concentrated near the Burke Road shopping strip stretching north approximately 600 m from Camberwell Junction. Three tram routes converge at this famous junction the 70, 72, and 75. There is almost no industrial land in Camberwell. Half-way up the shopping strip is Camberwell railway station. This historical station services the Belgrave, Lilydale, and Alamein train lines. East Camberwell, Riversdale, Willison, and Hartwell stations also lie within the suburb's boundaries. Several bus routes also cover the area.

The beautiful Rivoli Cinemas sit just west of Camberwell Junction, surrounded by many quality cafes and restaurants. Camberwell is a very welcoming and family friendly community.

Camberwell is now one of the most well-established of Melbourne's middle-ring suburbs. House prices in Boroondara are well-above the metropolitan median.

House prices in Camberwell have achieved great growth in 2010 with an increase in the calendar year of 13.8% to $1.365M and 87% in the last 5 years (Source: REIV).

AUCTION ACTION
RECENT PURCHASES

75 Carlingford Street, Caulfield South 3162

With around 35 people in attendance at the Auction, it was slow to begin. An opening bid of $850k by a gentleman started the proceedings followed by a Vendor bid by the Agent of $900k.

Buyers Advocate tried to slow the bidding pace of $10k rises to $5k rises but with no luck at that point. The opening bidder made the unfortunate mistake of bidding against himself above the Vendor bid to $910k at which point a young lass on the phone with an absent bidder, bid to $920k.

Buyers Advocate once again tried to slow the bidding down with a $5k bid which the Auctioneer duly took. From there it went up in $5k rises to $950k at which point the Agent referred the bidding to the Vendor. The property was then put “on the Market” as an unreserved sale at $950k and proceeded in $2500 and $1000 rises to $991k.

It was from there that our client using Buyer’s Advocate and our professional experience, put in a knock out bid of $9,000, bringing the subsequent sale price to $1,000,000 and securing the property.

Under a pre-determined market value and defending what our client was prepared and able to pay, Buyer’s Advocate successfully purchased another property, making our client very happy!

5 Hunter Street, Northcote 3070  

Our client from interstate came to us for advice on the type and style of property they should be considering to buy in Melbourne for their budget. The starting point from their perspective was a new style townhouse close to the CBD.

We were able to give them some different options for their budget, including single fronted properties not typical and familiar to our northern interstate clients. These provide great capital growth as they have good scarcity value and when nicely renovated command a premium to most other property types in this budget range.

We successfully purchased this gem in Northcote at auction for $865k. A great property, itself unusual in that it had 3 large bedrooms with 2 bathrooms and potentially 2 car accommodation, with great open living space out the back opening to a good size deck. Located in a fantastic pocket of Northcote, this house is close to amenities, shops and transport.

On the day of the auction we were expecting the property to sell within the $900’s. However with some quick fire bidding and some aggressive body language the competition were soon dropping out and we were able to purchase the property for a great price.

TIP OF THE MONTH - CHECK THE CONTRACT

We were recently asked to engage our Analysis and Negotiation Service for a property that was going to auction in a week’s time. The property was a nice 2 bedroom villa in Canterbury with a great courtyard. Our client already had a solicitor review the contract/s32 document and a building inspection has been completed.

The price quoted was very low which raised our attention, and alarm, to question what appeared for sale was in fact correct. We checked the contract and noticed the courtyard was not on title and was in fact common property!

This had been missed by the solicitor as they reviewed only what was presented in writing to them. They had no idea that their client was interested in buying the property with the grand plans to do the courtyard up.

We reported to our client the actual title and common property allocation. Our client decided to pull out of the auction and moved on to another property to buy.

So our tip of the month is to make sure you are getting what you think you are buying – Check the contract!!

Warm regards from the Buyer’s Advocate team at Hawthorn

Suggestions – If you have any suggestions on what information you would like Buyers Advocate to include in future newsletters, please let us know by emailing admin@buyersadvocate.com.au