BUYER'S ADVOCATE 
PROPERTY NEWS

December 2012 Newsletter 

Welcome  to 2012! And Welcome to our New Year newsletter! A quick Hello to everyone from the team in Hawthorn. We will not start to see any real action in the market until this later part of January, and early next month. While the media has started its routine doom and gloom predictions of the world likely to cave in, we are embracing the New Year as one that will provide further great opportunities for smart investors who are willing to move before the herd changes direction.

There is no doubt that the first six months of this year is going to be tough for vendors with the overhang of supply from 2011 and the added new supply in 2012. Though it will be wrong to think that this means there are bargains galore. Many areas are still achieving 70% plus auction clearance rates.

Anyone looking to buy investment properties in the premium suburbs of Melbourne at the end of 2011 would have realised that buying the bargain basement property was not that easy. Across many auctions we attended over the final months of last year it was common to see five or more bidders aggressively competing to buy good quality property opportunities.

Australia Day about to move us into February – already! So let’s get cracking! We look forward to each month’s progress and news of the Melbourne property market, across 2012 and of course reporting the successful bids and buys we achieve for our clients. We aim to provide even more hints and tips this year for greater advantage and success when preparing to buy property.

THE VALUE OF OPTIONS

It is critical for an investor in today’s residential property market to have options. Let’s have a quick look at why.

It has never been so important than it is today for property investors, rather than focus on one property, to ensure they have multiple options available.

Often when people buy an investment property they apply the same approach as they would if buying a home. That is, finding something that fits their criteria, that they really want, and then aggressively competing to not lose the bid. This can result in paying more than the property is worth. An emotional premium may be acceptable to someone looking for a home as there may not be many other options of the perfect property in the perfect location. However for an investment it should be far a more objective approach.

To a large extent you make your money when you buy. For this reason it is important to know:

• what is a reasonable price to pay for a property?
• what is the likely rental yield?
• and what are the capital growth prospects?

As investments are all about what gives the best financial return, emotion should come into the decision at all.

In this market we are seeing some good buying opportunities, though also many properties continue to sell well. What we are finding is that if we are considering three properties for a client, one will sell very well, one will be reasonable buying, and one will represent excellent buying.  Investing is all about opportunity cost, so the key is to ensure that you purchase the one than represents an excellent investment. To achieve this it is essential to consider multiple options and be committed to move forward on each when the right opportunity presents itself.  

 
You are always welcome to phone or visit us at our Hawthorn office to talk about all your residential property related questions and goals. Ask to meet with one of our advocates for an hour of personal and tailored property advice. There is no charge or obligation. We can help you to start the year with a goal and a plan.

Free Consultation
To book a free consultation
phone Buyer’s Advocate at
our Hawthorn office on
03 9818 4499 or visit www.buyersadvocate.com.au

PROPERTY MANAGEMENT 2012

New tenancy applications continue to be high and our property management department has been steadily signing up new leases, despite the holidays and quiet season. Demand continues for our client’s new development on Chapel Street, St Kilda, providing 1, 1+study, 2 and 3 bedroom apartments, and is steadily filling tenancies.

January and February are traditionally good months to bring renters to the market. We are seeing an increase of new tenants relocating to Melbourne from interstate or overseas looking for quality homes. For the owner landlord, demand is very positive.

Our property manager Kate Atkinson, is directly contacted by phone 0418 530 691, or email to rentals@buyesadvocate.com.au. You are welcome to talk with Kate about becoming a landlord or a tenant, and how we can help to achieve these goals.

Located on the Hawthorn boarder sits this boutique block of apartments. Designed for maximum space, this sleek ground floor apartment provides quality fixtures and fittings and a very generous floor plan. Offering open plan kitchen and living areas, and features Tasmanian oak hardwood flooring throughout, a balcony and a separate laundry to the bathroom. The position in the block, and the location of the block, are great advantages. It also provides off street car parking and excellent proximity to shops, transport and schools. What a package!

This property was quoted at $370,000 to $410,000 and attracted a lot of interest. Attendance was high on the day of the auction despite the intense sun and heat. The auction began with five parties ready to bid and an opening of $370,000 encouraged others to step up and then out of the running above the $395k mark. We opened our bidding strongly and quickly. At $401,000 the auctioneer sought instructions from the vendor. From there the bidding progressed in $1000 rises.  On the Buyers Advocate bid of $421,000 the auctioneer went inside and came out stating that the property would be sold.  The next bid of $1000 came followed by Buyers Advocate delivering the knock out bid of $8000 to secure the property for $430,000 for our client.

4/125 Riversdale Road, Hawthorn

An ideal apartment with two bedrooms and great features including a large open plan living and dining area and 12” ceilings throughout.  An Art Deco style gives this property brilliant market appeal in the future and exceptional value. Established with low maintenance gardens, lock up carport and secure entry, and the property’s original condition has been very well maintained. Close to Glenferrie Road shopping precinct the location of this property is perfect.

The price of $437,000 was very attractive and significantly lower than the last two bedroom apartment to sell in the block. We moved very quickly to successfully secure this property for our clients by private offer.