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Everyone loves a donut!

As we write this, we have had 20 donuts in a row in Melbourne for Covid-19 cases. There is also a lot of talk about a vaccine being available early new year. This is giving the economy a much-needed boast in confidence resulting in increased spending, which is positively impacting the property market.

While the real estate industry may still not be back to normal operating conditions, we have had a month of private inspections and smaller outdoor auctions. While the supply has certainly increased, it is still low in comparison to previous years and there is simply not enough to satisfy demand, particularly for good quality properties and anything in the 1st home buyer category from $400k - $800k. This is further highlighted by the ABS September Quarter Finance Data with the first home buyer cohort experiencing the highest rate of growth in secured finance, at 24.4% in the quarter.
We have had a month of private inspections and smaller outdoor auctions
(Image by Stephen McKenzie via Domain)
Interestingly, Australia-wide housing finance for the purchase of property totalled $62.7 billion in the September quarter. This is the highest level since the March 2018 quarter and is just 6.6% below the peak of the lending series in the three months to May 2017. The uptick is a result of eased social distancing restrictions across the country, which have coincided with historically accommodative monetary policy, which sees mortgage rates at a record low.

As a business, we continue to see a large number of interested parties for properties we have targeted for our clients. We have been able to purchase a number of these, however it has also been encouraging to secure homes and investment properties in off market transactions, so it pays to maintain strong relationships with agents to uncover these opportunities.

This month we return to a familiar format of providing updates on the rental market, recent property purchases and our tip for the month which is focused on the importance of having options and understanding the opportunity cost of any purchase.

We hope you have a great end to November!
 
Leigh McConnon

Property Management Update

With the warm weather and the easing of restrictions, Melbourne is certainly starting to move back into a bit of normality.

To say that the recent lockdown has been challenging for our industry would be an understatement. Melbourne has recoded the largest quarterly decline in rental values with our median asking rent sitting around $444 per week ($1929 per calendar month). Apartments sitting at a quarterly decline of 3.6% and houses sitting at 0.7% .  During these tight restrictions, it has taken longer than usual to get some properties leased however we have had plenty of success stories leasing many properties including units, houses and apartments. 
Apartments sit at a quarterly decline of 3.6% in rental value
We continue to assist and manage any requests from our valued clients who are experiencing financial stress, leasing enquiries and maintenance issues.

Our team remain working remotely, however are ready with our Covid-19 safe return to work plan up and running, just waiting for approval to spring into action.  We are all looking forward to getting back into our office, working face to face with out team mates.

We pride ourselves on creating an unsurpassed Property Management experience for all clients. If Covid-19 has left you questioning what it is that your Property Manager does, please feel free to contact Lily on 0437 232 529 or Rachel on 0477 663 325 for a confidential chat. We welcome your enquiry.
Congratulations to Rachel & Lily!
 
Congrats to our property managers Rachel and Lily who successfully completed their Certificate 4 in real estate and are now fully Licenced Estate Agents.  These qualifications ensure we can provide the best possible advice and service to our clients. Well done!

Recent Purchases

While the market has been strong out of lockdown we have still managed to secure some high quality properties. We have listed a few examples below.
Investor in Reservoir  (off market property)
This property was secured as an off market for our clients with none of the normal competition. Our business was given exclusive access to this property without it being offered to anyone else. A fully renovated property only a short distance to the train station, shops and cafes. Purchased for $600k with a good rental yield of approximately 3.5% this will make for a great investment with high capital growth prospects.
 
Home Buyer in Templestowe
Within 3 weeks of our clients engaging our services, we locked our sights onto this property which sits on a substantial corner block in a tranquil leafy setting in the much after sought after area of Templestowe. Properties in this area and of this calibre were scarce and buyer enquiry was extremely high due to recently lifted restrictions. After inspecting the property, we discussed the possibility of securing this property prior to auction with the selling agents who reciprocated in our favour and as a result not only eliminated unwanted competition but saved our clients $80,000 from the asking price.
Vendor Advocacy in Armdale
We have a great history with this property. We received a call from the owner on the 19th October 2015 to see if we had a buyer for her property as she wanted to sell directly. We asked what $$ she wanted for it and by the 25th October 2015 it was a done deal. No fee or advertising expense for her!
Our clients enjoyed a solid investment for 5 years, bought well under market value with the property managed by Buyer's Advocate. This ensured ongoing protection of the investment but also their portfolio.
Recently the time came to move on with the property and the clients once again returned for the right advice. Buyer's Advocate managed the sale for them by getting the best-selling agent to market it and sell it. A great result in the end, facilitating a price $29,000 above expectations.
Home Buyer in Mont Albert North
A new listing popped up around the corner from where our clients had just sold their property. Perfect location and perfect property, but as usual, imperfect price. Upon taking the client through the property and asking all the not so apparent questions of the selling agents, we managed to secure the home well before Auction at a price our client was more than comfortable with. A great result with the Vendor motivated to settle in their time frame, more so than the price paid. A WIN/WIN for all.

Our Vendor Advocacy Services

Did you know we offer Vendor Advocacy?

A service within our broad range of offerings is Vendor Advocacy.  We can assist clients in taking the time, stress and pressure out of selling a home or investment property, delivering focused experience and expertise in all aspects of a property sales transaction.

We are able to provide an independent valuation of your property. Our Advocates are experienced advisers who will guide you objectively through the sales process.

Our role as a Vendor Advocate is to act for the seller, to appoint a suitably qualified real estate agent. This ensures at all times that selling agents do what they say they will do, charge a fair and reasonable fee for their services, act impartially when introducing buyers and market and promote your property professionally and effectively.

Our fee is deducted from the sales commission, so it won’t cost you anymore to engage our service to assist you to sell your property.

Let us help you sell your property. Contact one of our experienced Buyer’s Advocates on (03) 9818 4499, for an obligation free discussion.

Tip of the month:
Consider the opportunity cost

It has never been so important than it is today, for property investors to ensure they have multiple options available, rather than focus on one property.

Often when people buy an investment property they apply the same approach as they would if buying a home. That is, finding something that fits their criteria, that they really want, and then aggressively competing to purchase the property. This can result in paying more than the property is worth. An emotional premium may be acceptable to someone looking for a home as there may not be many other options of the perfect property in the perfect location. However, for an investment it should be far a more objective approach.

To a large extent you make your money when you buy. For this reason it is important to know:
  • what is a reasonable price to pay for a property?
  • what is the likely rental yield?
  • and what are the capital growth prospects?
As investments are all about what gives the best financial return, emotion should never come into the decision at all.

In this market we are still seeing some good buying opportunities, even though most continue to sell well. What we are finding is that if we are considering three properties for a client, one will sell very well, one will be reasonable buying, and one will represent excellent buying.  Investing is all about opportunity cost, so the key is to ensure that you purchase the one than represents an excellent investment. To achieve this, it is essential to consider multiple options and be committed to move forward on each when the right opportunity presents itself.

Our Office


To support the government’s efforts to flatten the COVID-19 curve, Buyer's Advocate is currently closed.
All of our staff are operating from home and are always available to take your call, or Zoom if you prefer, so if you need to contact us at all just call the number below. We are here to help!
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Are you looking to buy a property? Contact our Buyer's Advocate team today
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