The warm sunshine and natural light has already started to spread through the properties of Melbourne and landscaped gardens are now in full bloom during Spring, highlighting and displaying properties on the market for sale in their best form. This being one of the preferred reasons for Vendors and Sales Agents to market most properties during the Spring months leading into the Festive Season and creating the most competition when marketing property to what they hope will be the emotionally committed Buyers.
Melbourne really comes to life in Spring and live’s up to it’s reputation for having the title as the World’s Most Liveable City with the AFL footy Grand Final approaching and the Spring Racing Carnival leading to the Melbourne Cup at the Flemington Racecourse. Melbourne is also arguably one of the world’s best destinations for food, fashion and sport, which increases demand and competition in the property market for people wanting to be close to the action. All of this excitement and sense of euphoria adds to the emotions that the Melbourne property buyer must learn to contain in order to make an informed and well prepared decision with focus when negotiating and purchasing property.
We are only a few weeks into Spring and the market sentiment still seems strong despite recent changes to bank interest rates and lending criteria for Property Investors. We have found that buyers in general at auctions and private sale negotiations are being slightly more cautious and taking more consideration when bidding, though competition and the prices that buyers are willing to pay for property remains consistent and at high market comparable levels.
Topics in this issue:
- A few tips to be mindful of when selecting property
- REIV Weekly Auction & Sales results, Market Snapshot
- How Master Advocates began. Why we do what we do
- Master Advocates – Helpful Tips for Home Occupants (Game of Homes Series) Regular Preventative Maintenance
A few tips to be mindful of when selecting property:
One thing to note when buying property in Spring time is that historically more properties will be listed and introduced to the market, providing more property choices to select from, though equally more competition. Property growth in Melbourne and auction results have been rising at record rates each month during the last 12 month period. It would be wise to not allow oneself to become emotionally attached to a property when conducting due diligence and considering engaging in negotiations via private sale or bidding at auction.
- Inspect and compare as many properties and comparable sale results as well as quality of fixtures and fittings. Approach a property purchase with care as you would a business transaction.
- The most well known advice to keep in mind when selecting property is choosing the right location. You can always replace, knock down and re-build or renovate a property though you can’t change the location of the land that you have purchased. Selecting property in an established area, surrounded by all key amenities and good infrastructure is key. Walking distance to public transport, schools and shopping precincts is ideal.
- If the property is going to be retained as an investment, calculate and compare potential rental yields with the anticipated purchase price.
- To increase opportunities for strong capital growth and rental yields, selecting a property that is low maintenance and with structural integrity is key.
- If you are not searching for or are unable to purchase a free-standing property or house on it’s own title with future sub-division potential, ensure the property has minimal outgoings including any owners corporation fees if applicable and if on a sub-divided title, make sure it’s not in a high density area which will create an over supply of similar property and competition for you when trying to lease the property to prospective tenants and compressing your rental yields as a result.
- Ideally select a property that has a maximum of two or three properties on the site, choosing the property with street frontage or the property at the rear of the site should be most appealing and have more privacy, generally being more attractive to the market for sale and lease, having more natural light and in most cases being semi-attached.
- Once you secure the right property, keeping it regularly maintained and refurbished every 7 to 10 years, keeping bathrooms and kitchens well maintained and as minimum updating painting, flooring, carpets and blinds should be your next step in the investment agenda.
- This will improve your capital growth and equity to be able to leverage towards the next property purchase and ultimately keep the property attractive and in demand with competition for re-sale and leasing in a competitive Melbourne market place that is set with more sub-division and construction of multiple dwellings each year to meet with population growth demands.
|REIV Weekly Auction & Sales results, Market Snapshot|
19th September 2015
Enzo Raimondo’s Market Wrap
A clearance rate of 76 per cent was recorded this weekend compared to 75 per cent last weekend and 72 per cent this weekend last year. There were 931 auctions reported to the REIV today, with 704 selling and 227 being passed in, 106 of those on a vendor bid. An estimated $18 billion worth of property has changed hands in the year to date via auctions – this is up 29 per cent from this time last year which is the highest figure on record.
CEO – REIV
Master Advocates – Helpful Tips for Home Occupants
(Game of Homes Series)
Regular Preventative Maintenance
This months topic: CAULKING AND SEALING JOINS AND GAPS IN WET AREAS AND AROUND THE HOME
MAINTENANCE – Caulking
Caulking is the sealing of joins in and around buildings. Caulking seals and protects the joins in your home from dirt, water, insects, etc; as well as giving your home a superior finish.
Whether you are living in your home, selling, buying, or own a rental property – ensure the joins are caulked. This will protect your investment from costly damage as well as improving the look of your house. It can even cover flaws, such as large gaps.
Are you maintaining your property? Which benchtop is yours?
If this benchtop caulking is not repaired:
1. Water may go beneath the benchtop and into your cupboard and shelving which will swell and be costly to repair/replace.
2. Water behind your tiles may weaken the glue and cause the tiles to ‘pop’ off the wall.
3. Undetected leaks can penetrate to walls and walls cavities, carpets and structural materials. In most cases the water leak is not detected until there is serious damage, leaving you with a hefty repair bill. E.g. A water leak in an upstairs bathroom can leak into adjacent rooms and into the flooring; being the roof of your first storey.
Avoid costly repairs by ensuring the sealing of your joins are done professionally. Caulking is a relatively inexpensive exercise compared to repairing damage, not to mention the inconvenience.
Phone Proflex Caulking and mention this article : We will come out to your home, rental property or office and provide you with a FREE NO OBLIGATION MEASURE , QUOTE & ASSESSMENT and advise on the best caulking applications for your property.
Daniel Granieri M: 0415 617 788 Website: www.proflexcaulking.com.au E: firstname.lastname@example.org
Supportive information sources: REIV and Proflex Caulking in association with Master Advocates – Real Estate Services – published September 2015