What happened around the Melbourne and Victorian Real Estate Market during last week?

A clearance rate of 76 per cent was recorded this weekend compared to 72 per cent last weekend and 73 per cent this weekend last year. There were 826 auctions reported to the REIV today, with 631 selling and 195 being passed in, 93 of those on a vendor bid. This weekend marks the first major auction weekend of the year – with a further 1,470 auctions scheduled for next week. By the end of February, more than 3,000 homes are expected to have been auctioned, which is about 500 more than February last year. The clearance rate for the year to date is 71 per cent, compared to 70 per cent in 2014.

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Supportive information sources: REIV and REBAA in association with Master Advocates – Real Estate Services – published February 2015

Master Advocates – Real Estate Services loves nothing more than to be able to add value and benefits to our services for our clients.

To Celebrate Chinese New Year, we are embracing a new advancement in resources. Core Logic RP Data has been a powerful resource which enables Master Advocates to provide our clients from both domestic and international markets with vital supportive data and analytics that are current and informative relating to real estate comparable sales and leasing results, market trends. Ultimately assisting our Advocates to estimate and make more accurate and informed decisions relating to property which we research, inspect and strategically assess to negotiate buying, selling or leasing transactions on behalf of our clients with their best interests in mind. We can also use this information to estimate the potential for key locations that may provide the best options for strong capital growth and/or rental yields.

Now Core Logic RP Data have produced a facility which will provide Chinese Language Property Reports. This will allow some of our foreign buyers and clients access to the information in a format that they can appreciate and understand at a greater level by providing property and suburb information, ultimately allowing them to make decisions in conjunction with results from our due diligence processes, opinios and advice with more confidence.

The latest Core Logic RP Data Chinese Language Reports offer:

CMA (current market appraisal)-styled information delivering valuable insights into individual properties and their location

Professional translations into Simplified Chinese – the official written language of China and Singapore

Easy to use workflow within the RP Data Professional database

PDF formats that can be easily emailed to clients

Contact Master Advocates to obtain a sample report

In the Chinese calendar, 2015 is the Year of the Goat. Goats are recognised as being compassionate, helpful, sincere and determined.

Make sure your 2015 is prosperous by adding another channel to your portfolio and investment network of service providers by enlisting Master Advocates – Real Estate Services and the addition of the Chinese Language Reports.

In further property news, Residential property prices could spike by 15% if the Reserve Bank of Australia is forced to cut rates to below 1.25 per cent in response to falling oil prices impacting the US economy, a prominent economist has warned.

Matthew Peter, Queensland Investment Corporation’s chief economist says the plunge in world oil prices has the potential to push the US economy into deflation this year, which would prompt the Federal Reserve to defer a tightening cycle to 2016. \”The RBA would have to offset that and cut rates quickly – to 1.25 per cent for a quarter before raising it to 1.5 per cent – but cannot hold them there for very long due to the extreme impact it would have on the housing market,” Peter told The Sydney Morning Herald in a detailed assessment of the impact of the decline in oil prices on the economy.

“It would give a 15 per cent lift to housing prices.”

Supportive information sources: The Real Estate Conversation in association with REIA, REIV and Core Logic RP Data – published February 2015

The real estate industry has urged the Government to retain negative gearing in May, when Treasurer Joe Hockey will announce his second budget. In its pre-budget submission, the Real Estate Institute of Australia has defended the measure, saying it helps renters and investors alike.

“The evidence is clear that both negative gearing and the capital gains tax discount (CGT) feed the supply-side pipeline at a time of a chronic under-supply of houses in Australia,\” said REIA CEO Amanda Lynch. “Any alteration to the current arrangements would likely result in a need for a greater investment by the Government in social housing and could potentially increase rents – as recognised by the Henry Tax Review in 2010, which stated that the current provisions placed downward pressure on rents.\”

The REIA\’s submission has eight recommendations. Along with the retention of negative gearing, these include abolishing conveyance stamp duties and replacing them with an efficient source of revenue
for states and territories; not increasing capital gains tax on property investments; establishing a scheme to encourage young Australians to access their superannuation as a first home deposit; a uniformed approach to the provision of assistance to first home buyers for both new and established homes; continued funding for the Industry Skills Fund; better utilization of private investment to improve the supply of housing for social housing tenants transitioning to private rental; and a mechanism to ensure the availability of reliable data on housing demand and supply to assist in formulating effective policies.

Supportive information source: The Real Estate Conversation in association with REIA – published February 2015

The Commonwealth Bank of Australia was the first of the big four banks to pass on the Reserve Bank of Australia\’s rate cut. CBA is now offering its lowest-ever fixed mortgage rates by passing on the RBA\’s rate cut in full.

CBA said its standard variable rate mortgage will be cut by 0.25 per cent to 5.65 per cent, and its five-year fixed rate mortgage will be reduced by 0.30 per cent to 4.69 per cent, while its three year fixed rate mortgage reduced by 0.25 per cent to 4.69 per cent. The new [variable] rate of 5.65 per cent is the lowest since April 2009. The new standard variable rate will take place effect from February 20.

Westpac has also announced it will reduce its floating interest rate, by 0.28 per cent to 5.7 per cent per annum, exceeding the RBA cut. Westpac\’s new rate will effective from February 20. Westpac said the reduction will save homeowners $52 a month, or $624 a year, in repayments on an average $300,000 mortgage.

Bank of Queensland cut its variable home loan rate by 25 basis points immediately after the RBA announcement. ME Bank and ING Direct also moved on Tuesday.

This morning, Treasurer Joe Hockey told ABC Radio the banks should immediately pass on the interest rate cut. \”The flow-through to the Australian economy is significant, and importantly it must be immediate,\” he said. \”I say again to the Australian banks pass it on in full now, not just to home owners, but importantly small business and credit cards as well.\”

Supportive information source: The Real Estate Conversation in association with REIA – published February 2015

Melbourne housing market remains solid in latest quarter; rate cut to underpin growth

The Reserve Bank today reduced the cash rate by 25 basis points to 2.25 per cent, the lowest level since the 1950’s. Interest rates had been on hold for the past 17 months which provided a solid platform for the property market across Melbourne and Victoria.

The national rate of inflation is currently at 1.7 per cent – well below the RBA inflation target of 2-3 per cent – which indicates an accommodative environment for continued low interest rates.

Melbourne\’s housing market remained solid in the final quarter of last year, with the city\’s median house price of $669,000 up five per cent on the September quarter. Prices increased in inner, middle and outer suburbs.

Supportive information source: REIV Monthly Research Bulletin – published February 2015


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■BUYER’S ADVOCACY

For Buyer’s Advocacy Services in Melbourne – Master Advocates have the answers you need:

Whether you’re an investor or someone looking for that family home – buying property needs careful consideration.

At Master Advocates, we are your buyer advocacy experts and we are happy to answer any of your questions.

Are buyer’s advocacy fees tax-deductible?

A buyer’s agent’s fee is treated as a capital expense, which means it is deductible to you at the point of selling your property. Master Advocates specialise in issues about buyer’s advocacy and we are not qualified accountants, so we recommend that you speak to your own accounting expert to better understand you own individual financial situation.

Is buying at auction the best way to buy a property?

Generally speaking – no. Auctions inspire a lot of competition that is aimed at pushing the price up. Efficient negotiation through other sale methods is usually better for the incoming buyer and with Master Advocates looking after that for you, you know you are getting the best possible price.

Welcome and happy new year. We had a strong finish to 2014 with many great purchase results across Melbourne for our clients.

2015 has started to be just as successful, by securing some purchase opportunities with many properties that remained on the market as private sale over the festive season due to passing in at auction late in 2014 or just not achieving the desired results for the Vendors that become motivated to accept reasonable price offers early in January.

Now that most Vendors and Buyers have returned from holidays and after the Australia Day weekend, one could say that the official year will commence in the real estate market. We expect to see more property be placed on the market for sale, which will increase opportunities and negotiation options for Buyers.

Choosing a Buyer\’s Agent with the right attitude and your best interests at heart is an important process.

We are happy to meet with Buyers seeking some advice and wishing to obtain a consultation relating to their needs and our services in the constantly improving and competitive Melbourne Real Estate Market.

Whether you are seeking to buy a property as an investment or to occupy, we have the experience and skills to deliver a great result in your purchasing experience.

An overview of the December 2014 period for Melbourne – The World\’s Most Liveable City:

Supportive information source: REIV Monthly Research December Quarter – published January 2015

As we move toward the end of the year for 2014 and welcome the new year 2015, it is easy to reflect and assess at a glance that the Melbourne property market has been achieving consistent and strong results for sellers, though the buyers have equally been successful, being able to secure great purchase results that promise good capital growth potential and rental yield.

REIV (Real Estate Institute of Victoria) CHAPTER & DIVISION COMMITTEES ANNOUNCED 2015-2016

New and returning members of Chapter and Division committees have been announced and will commence their term of service from
1 January 2015.

Among the new members, Master Advocates – Real Estate Services, Founder and Director (OIEC), Mark Errichiello has been accepted as a (REIV) Committee Member (Buyers Agents Chapter).

Master Advocates – Real Estate Services had the perfect end to the week. Achieving great purchase results for some of our clients at both Auction and Private Sale.

An additional highlight to celebrate – our Founder and Director (OIEC), Mark Errichiello has been accepted as a (REIV), (Real Estate Institute of Victoria) Committee Member (Buyers Agents Chapter) and (REBAA), (Real Estate Buyers Agents Association of Australia) as an Accredited Member.

Market Overview October to November 2014

The Reserve Bank has left the cash rate unchanged at 2.5 per cent
in November 2014. This marks the 15th consecutive month of steady
interest rates as the Bank again reiterated that this stability is likely
to continue. The general consensus is that there will be no movement
in interest rates until the second half of next year, which should see
this break a record for the longest period of stable interest rates. The
current record is 19 months from 1994 to 1996.

The auction market remained solid in October with nearly 4,600
auctions held in the month, which is a new record for the month of
October. There was also a record auction weekend with 1,680 auctions
held in the week ending 26th October. However, the clearance rate
averaged slightly lower than this time last year at 71 per cent although
this is still a solid result given the high volumes.

While the number of auctions remains high, the number of transactions
is lower than this time last year. There were an estimated 9,900 sales
transacted in October 2014, which is about 8.7 per cent lower than a
year ago as the private sale market reported fewer sales. Nevertheless,
there was a large increase in listings this month with most of this
increase from private sale listings.

House prices continued to grow this month with a 1.6 per cent increase
in the REIV House Price Index (HPI) to 168.8, which is the fastest rate of
growth since June. Despite the slightly faster rate of growth this month,
the overall trend still points to slower price growth.

After a large decline in the previous month, the REIV Property Market
Sentiment Index (PMSI) remained stable at 110 in October 2014. REIV
members were most optimistic about the number of transactions and
the number of new listings but were more pessimistic about turnover in
the next three months, particularly as the market winds down over the
Christmas-New Year period.

The vacancy rate in Melbourne remained stable at 3.1 per cent in
October 2014 but there was a notable increase in the inner (0-4km)
region as more supply comes on to the market. However, in contrast to
the metropolitan market, the vacancy rate in regional Victoria continues
to decline to 2.3 per cent, the lowest level since February 2012.

Supportive information source: REIV Monthly Research Bulletin – published November 2014