January 2021 saw a reported 600 auctions, which is the highest ever for the month of January and with a total of 506 of these sold representing a clearance rate of 84.3%. Thirteen suburbs across Melbourne saw a recorded 100% clearance rate, led by Bentleigh and Richmond.

Auction activity has picked up earlier than expected in 2021 with auction clearance rates in excess of 80% for some consecutive weeks now which is clear indication that the number of active buyers outweigh the number of suitable properties on the market for sale.

 

A multitude of stimulus packages are currently on offer as a means to kick start the economy and provide much needed assistance to first home buyers, however this has caused adverse effects as it has added fuel to the fire and as a result buyer’s budgets have increased and with this an uplift in property prices, increased heated competition and the return of investors and international buyers.
 

• First-home buyers get a $10,000 First Home Owner Grant (FHOG) in Melbourne, or $20,000 in regional Victoria, from the state government if they buy or build a new home for $750,000 or less.
• The federal HomeBuilder grants scheme adds another $15,000 to $25,000 to all homebuyers’ budgets if they build new for $750,000 or less or renovate an existing home for $150,000-$750,000.

* Note – On 29 November 2020, the Australian Government announced an extension to the HomeBuilder program to 31 March 2021.

• The First Home Loan Deposit Scheme allows eligible first home buyers to get a home loan with just a 5% deposit and avoid the extra cost of lenders mortgage insurance (LMI). Lenders usually charge LMI to borrowers with deposits below 20% of their property’s value.
• Stamp duty reduction of 25% for existing dwellings and 50% for newly constructed homes up to the value of $1M.

 * Note – The deadline for this is the 30^th June 2021.

 

Things have not slowed since returning to a busy start to 2021.

Open homes are running and we are starting to slowly see more people viewing their potential new home.  Our team are focusing on leasing our available properties to the right tenant at the right price as quickly as possible – we are monitoring the market and ensuring our landlords are provided with honest advice so we can focus on minimising vacancy in between tenancies. 

The vacancy rate across metropolitan Melbourne rose to 5.9% over the month of January 2021.  The biggest increase in Melbourne’s sub-region of 7.6% for inner Melbourne, followed by middle Melbourne with 6.1 1% and outer Melbourne rose to 2.3%. 

 

 

A warm congratulations to our expat investor who came to us wanting to secure our services for Buyers Advocacy as well as Property Management, as they wanted a full service knowing that their investment would also be managed with care and professionalism.
The brief although not complex, came with a list of specific criteria which had to be met, and after some tough vendor/agent and advocate negotiations, we managed to secure a fabulous investment grade 3 bedroom, single level villa unit within close proximity to all amenities that is also set to perform very well over the years to come.

 

 

Knowing market values, asking the right questions of the selling agent and thorough due diligence, put our clients in the box seat to secure this one. Up against 6 bidders in total, Buyers Advocate opened the bidding at $1.6million. This was the bottom end of the selling agents quoted price range. The bidding rose quickly to $1.7million where the property was announced “on the market” “unreserved”. Bid against bid, it all started to slow at $1.85million. Reading the play, Buyers Advocate became even more aggressive with their bidding calls and showed that bidding experience counts, when dealing with nervous competition. Buyers Advocate secured the property for $1,890,000, which was well under our client’s maximum budget.

 

Our Vendor Advocacy Services

Step 1 – Do your research
Far too often, property investors rely on what the selling agent says about a property and/or area. They may tell us about positive aspects about a property but not mention the negative points. We must remember that selling agents work for the seller, not the buyer. That’s why you must do your own research and due diligence.

Step 2 – Visit the area
We’ve found that some of the best research is conducted whilst ‘on location’. We may do extensive research on the internet and read reports however area knowledge and relationships local agents are paramount to unlocking the best buying opportunities and knowledge of good locations vs not so good ones. There’s nothing like seeing an area/property with our own eyes to form a complete picture about a suburb/district.

Step 3 – Seek expert advice
Whether you’re buying locally or interstate, it is imperative to consult with your accountant, financial planner, conveyancer or buyers advocate. It is important to have knowledge of the specific ‘rules’ that may apply to purchasing the property – for example: cooling off rights or any unsavoury contract clauses contained which may catch you out. Remembering that a Contract of Sale or Section 32 is a legally binding document.
If you’re unsure about the property/area/buying process, I’d suggest you speak to a reputable and experienced Buyers Advocate. You may have to pay for this but at least you know that they’re working for you and providing advice that will benefit you.

Step 4 – Do your due diligence
Due diligence goes beyond a 30 minute inspection. It is a thorough analysis of the suburb, assessing comparable sales and listings, investigating a vendors and the competition’s circumstance, review of contracts and conducting building inspections only to name a few but most importantly asking the right questions and knowing the market drivers in the area. Pricing the property correctly and knowing how the agent conducts their sales process is paramount in securing a property at the best possible price.