PROPERTY NEWS FROM
BUYERS ADVOCATE

September 2011 Newsletter

 
Let’s talk about some of the important issues and opportunities for residential property buyers right now.  With good investment buying already experienced by our clients in August we are all anticipating a very good month ahead, including opportunities for those buying a home.
The market is definitely warming up with the arrival of September and Spring.
So we have provided some tips on how to achieve the best property purchase, and we introduce you to our new Property Manager and services.  Welcome. It’s good to have you with us.

Our view on the ground 
Buyer’s Advocate in the News   
Welcome to Buyer’s Advocate Property Management Services 
Suburb profile of the month – Bentleigh 
Recent purchases

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.

What is happening in the property market?

It has been interesting month for August with some great buying opportunities and stellar results as a result of the lack of supply of good quality properties.

Clearance rates are still generally hovering around the low 50’s. Once again it is important to look at the results suburb by suburb as there are many areas achieving a clearance rate in excess of 70%.

There is no doubt that buyer demand is well down as compared to last year and if you are prepared to be patient you can certainly pick up a good buy. If you’re an investor it is important to keep your eye on multiple options and not put your eggs in the one basket.
When a property attracts multiple interested parties then you may end up paying too much when a similar property may be sold for significantly less.

Accumulating wealth is all about selecting the right property and negotiating the lowest price. We recently bought a 2 bedroom villa for a client in Camberwell for $512,500 after missing out on 4 separate villas that all sold around the $600,000 mark. We also bought a 2 bedroom apartment in a prime pocket of Hawthorn for $490,000 when the last sale in the block with exactly the same floor plan sold for $537,500.

These results do not happen by chance. It is important to do your homework before pursuing a property and make sure you ask the right questions. For example:

• What is the vendor’s motivation for selling? Are they under financial pressure
  to achieve an urgent sale?
• What are the vendor’s expectations of the sale price?
• How does this compare to other similar properties on the market?
• What is the true value of the property?
• What is the level of interest?
• What terms are important to the vendor (other than price)?
  Knowing this allows you to negotiate more competitively?

So the advice right now is stick to your limits as there will be other options, be selective and do your homework. Should you enter negotiations on a property, develop a plan and consider the contingencies.

If you are in the market for a home right now, make sure you are buying and selling in the same market as unless you can foresee the future you may get caught out. If you are upsizing you should be able to negotiate a great deal as you can certainly buy more for your money today than 12 months ago. If you are downsizing you may need to lower your expectations, and be prepared to meet the market to achieve a sale.

In summary there is a great deal of uncertainty right now as consumer confidence has taken a hit over the last month as a result of the turmoil in the overseas market. This will eventually stabilise and people will return to the property market. There are still plenty of interested parties out there attending opens and auctions though very few willing to put their hand up. This presents great opportunities for those willing to make a decision and press forward with building their property portfolio.

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

THE BUYERS ADVOCATE TEAM

WELCOME T0 BUYER'S ADVOCATE PROPERTY MANAGEMENT SERVICES

We are very proud to introduce Kate Atkinson, our Property Manager and head of our Property Management department.  Highly experienced in all facets of real estate and property management, Kate is a Professional, believing that effective communication, attention to detail and sound knowledge of the Residential Tenancies Act is the key to quality property management.  And Kate delivers all this and more.

Kate began her career in property management handling accounts in a large real estate company then went on to 9 years at the top managing an inner-city Property Management department that boasted 1500 rental properties and 12+ staff. Most recently Kate managed a top end Toorak agency before taking time out to start a family.

We believe experience is the difference, and Kate’s experience is exceptional.

We understand the importance of being able to trust the people who manage our assets, the return of our rental income and capital gain is secure, and that we have the right tenant in our investment property. Kate provides this peace of mind across all responsibilities and considerations as manager and representative, including:

• assessing the rental value of your property in the current market,
• marketing and selecting the right tenants,
• completing all documentation and reports,
• inspections and coordinating maintenance,
• conducting reviews and renewals,
• managing all payments and receipts, and
• ensuring industry standards and legal requirements are met.

For us, we have a wonderful new addition to our team. Yes, professional and reliable, Kate also has an abundance of energy and enthusiasm that shines on everyone. We are very happy to have Kate with us.

Property Management for our clients is a boutique, tailored and personal service. It is essential that there be no stress for the landlord or the tenant, and peace of mind for the future of your investment. Only the best Property Management service in the market can ensure this. We are so confident in our ability to provide the best that we are offering to all new business a 3 month management fee free period. Call Kate today for more information and advice: Mobile 0418 530 691 or email to rentals@buyersadvocate.com.au

Kate Atkinson (B.A) 
Licensed Estate Agent Property Manager

Australian Medical Association (AMA) Presentation
29 August 2011

Buyer’s Advocate was invited to be a key note speaker at a recent AMA finance forum. The topic was an overview of the market and what makes a good investment. The presentation focused on different property investment strategies and what to consider for various property types. Below is an excerpt from the presentation for apartment blocks.

“X” Factors - Something unique and exciting about an area/project

• New road infrastructure to be constructed.
• Major existing or proposed shopping centre.
• Close to parkland, golf course etc.
• Government announcements affecting the area.
• Any other unique “value” being added to an area.
  

Bentleigh is a residential suburb in Melbourne’s south-east, located 13 km from the CBD between Nepean Highway and South Road. Local Government is the City of Glen Eira. At the 2006 Census Bentleigh had a population of 14,271 with a median age of 39.

Bentleigh has undergone significant gentrification over the last 10 years with new development, shops and cafes all attracting people to the area. This is reflected in the median house price which has increased from approximately $500,000 to $900,000 over the last 5 years (Source: REIV).

The most popular streets are those that surround the main shopping strips and within close proximity to the train line. Bentleigh has two railway stations for the area, Bentleigh and Patterson, the former is the end of zone 1 on the Frankston train line. Centre Road is the main shopping strip of over 250 retail businesses, mostly independent traders, with a focus on fresh food, continental delis, cake shops and cafes. Parking remains easy and accessible, even on busy Saturdays.

The schools within the Bentleigh suburb are Our Lady of the Sacred Heart College, Bentleigh West Primary School and St. Paul's Primary School. The Monash Medical Centre Hospital is in Centre Road, East Bentleigh.

The character of this suburb has been shaped by strong local community, providing sporting clubs, school activities and charity events. The Alnutt Park, Victory Park, Halley Park, Bentleigh Reserve and Bentleigh Memorial Gardens provide open and healthy green spaces to enjoy.  The Bentleigh Sunday Market is open every Sunday in the car park at the rear of the Bentleigh Railway Station.  This market was founded in 1977 and is still run by Rotary Club Bentleigh Moorabbin Central.

Bentleigh was originally an orchard and market garden settlement named Brighton East and in 1906 was changed to Bentleigh in honour of Thomas Bent, the infamous Victorian politician and Premier of Victoria. A statue of Bent was erected in 1913 on Nepean Highway, Brighton, and for many years "Tommy Bent's statue" was a well-known Melbourne landmark. Another note of history is the Bentleigh Public Hall, built in 1896, still a place of great activity, though not for the “Lamington Balls” it once hosted.

Bentleigh offers good value for buyers and home owners and is worth a look.

RECENT PURCHASES

Source: maps.google.com.au

2/698 Riversdale Road Camberwell

Purchased for $512,500 at auction this is a great home and investment, providing an appealing first home, downsize or astute investment choice. This single level low-maintenance residence is set back from the street in a well maintained group of only six. Spacious, light-filled interiors, with Tasmanian oak floors include large L-shaped living and dining areas opening to a private courtyard, and a modern kitchen with stainless steel appliances. The two double bedrooms each have built-in-robes and are carpeted. Features include a bright tiled bathroom with a bath, separate WC, laundry, gas heater, 3 x air-conditioning units and lock up garage.

The history of the block has shown approximately 15% per annum return on sales since 1995. It is in a great location with a tram at the front of the block, train station a five minute walk away and only two minutes from Middle Camberwell shops and cafes.

8/50 Leura Grove Hawthorn East

This property is a great investment for our client’s SMSF. Purchased at auction last month for $490,000. This apartment is likely to appeal to diverse group of renters, the position is first rate in the highly coveted Anderson Park precinct and there are benefits for easy living near Burke Road trams, Camberwell Junction and schools.

The generously-proportioned and privately set apartment is situated peacefully to the rear with a garden, and includes a car space on title. The interior is presented in fresh, original condition with new carpets and the good-sized living room opens to a balcony. A great package of two bedrooms with built-in-robes, bright bathroom, kitchen and meals area, laundry, and panel heating. A very good investment and a very good price.

TIP OF THE MONTH

Negotiations After Auction

If you are planning to go to auction for a property make sure you prepare for the possibility of the property passing in and the post auction negotiation. This can be a high pressure environment where the agent will do whatever they can to push the price up as high as possible.

Here are a few tips to prepare:

• Know the value of the property beforehand and what you are prepared to pay.
• Be armed with market information – an agent might try to convince you the
  property is worth more than it really is.
• Prior to the auction find out what the reserve is likely to be  - or ask hypothetical questions to establish what it is likely to be. Remind the agent of these discussions after the property passes in.
• Take your time. Do not be pressured by the presence of other people outside that have indicated they are willing to put an offer forward.
• Take control of the negotiations to get things on your terms.
• Be flexible if the property has passed in well below its worth.
  You want the agent and the vendor to engage with you.