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


■

■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

BUYER ADVOCACY SERVICES IN MELBOURNE

■Your Buyers Advocate

A Buyers Advocate represents the buyer in one of the most significant financial decisions they will ever make. Buying real estate is something most people will only ever do a few times in their lives. It’s not something you want to get wrong, which is why it’s essential that you seek out professional, expert advice. Whether you are buying your first home or adding to your extensive property portfolio, we will ensure the service you receive is second to none.

■Why a Buyers Advocate Is Necessary

A Buyers Advocate is a clever way to ensure that you carry out due diligence and get the best possible outcome when purchasing property. We will help you carefully select the property to not only suit your needs but save you money, time and stress, as well as receive maximum return if you choose to sell or lease the property in the future.

By assessing the property’s comparable property sales history, location, amenities, local demographic trends, features, any amendments or improvements conducted or required, we can calculate your estimated capital growth and provide you with recommendations on whether to buy, retain or sell particular real estate assets.

■Comprehensive Service

In addition to what we provide in Buyers Advocacy, Vendors Advocacy and Property Management, we offer in consultation with other related industry professionals on a fee for service basis of $220 including GST:

First Home Buyers property advisory

Foreign Investor property advisory

Self-Managed Super Funds in real estate property investment advisory

EXPAT property advisory

Interstate property advisory

Property investment advisory

Property relocation preparation advisory

Some very important changes that Agents, Buyers and Vendors need to be aware of, changes to Section 32 which are effective from 1 October 2014.

The changes include:
• Revised Section 32 statement
• A new due diligence checklist
• Reworded auction rules (failure to display the new rules can incur an on-the-spot fine)
• Revised contract of sale

The Due Diligence Checklist is now available on the CAV website.

http://www.consumer.vic.gov.au/duediligencechecklist

We have attached a PDF copy available to download for your convenience, Consumer Affairs Victoria – Due Diligence Checklist.

Supportive information source: REIV published notice Tuesday 9th September 2014

The Victorian property market experienced a strong finish to the last weekend of winter. Master Advocates – Real Estate Services are searching and inspecting Melbourne for real estate opportunities, preparing for a fantastic spring season and great results for our clients.

Mark Errichiello

Licensed Estate Agent, CEA (REIV)

DIrector (OIEC)