The Quiet Strength of Glenroy and the Mid-Tier Market
Over the weekend, we missed out on a superb, family home for an investor client of ours. This result in Glenroy got me thinking, and it is worth unpacking. The home sold under the hammer for $968,000, above a reserve of $935,000. There were four bidders; three of which were owner occupiers and we represented…
Do Better Schools Really Mean Higher House Prices? The Evidence from Victoria
I regularly speak with buyers who include this in their key criteria: “We want to be in a top school zone.” Sometimes they have children, sometimes they don’t. And increasingly, investors are adding it to their criteria too. It’s understandable. The idea of securing a strong public education without private school fees is compelling. In…
Everyone says they’ll buy in a downturn. Few actually do
In just one month, our market has made a complete shift. January started out strongly in Melbourne, with strong investor enquiry and first home buyer activity defining the start of the year. But throw in two interest rate hikes, a US led Middle Eastern conflict, a pinch of inflation wows, a shake of wallet shock…
The Hidden Risks of Chasing Yield in Property Investing
When it’s tax time, as investors we get a glimpse into the outgoings and emerging patterns across our property portfolio. With Victoria’s rental law changes that have been applied over recent years, it’s easy to see that operating expenses have increased. We modelled out the list of expenses for each property as a percentage of…
The value that optimal orientation represents
In the southern hemisphere, we talk about optimal orientation for property as being north-facing. Watching British renovation television programs always reminds me of our universal need for natural light when they place an emphasis on capturing their south-facing sun. Many of us like to enjoy the benefit of sunshine all year round in our homes. A well orientated…
Why I don’t like buying brand new dwellings
In my role as a buyer’s agent, I’m often asked why I rarely recommend brand-new property to my clients. It’s a fair question. New homes look appealing, they represent low-maintenance, and the marketing around them is very persuasive. But after nearly two decades of buying property for clients, I’ve learned that brand-new means more risk,…
Does your building and pest inspection clause really protect you?
We face this question every single time we assist a purchaser with an offer that is subject to an acceptable building and pest inspection being done within a short timeframe following the acceptable offer. Building and pest inspections offer buyers peace of mind, and in a lot of circumstances we arrange them prior to making…
What does the price ratio between Melbourne’s fringe suburbs and middle ring suburbs tell us about the value proposition that is emerging?
For the last two years, Melbourne’s outer-ring, fringe suburbs have been delivering outperformance capital growth in the house market category. While we have incentivised first home buyers with the broader rollout of the Federal Government’s 5% deposit guarantee, and stamp duty concessions remain in place, there is another reason why these areas have delivered growth.…
One of my early, (and tough) lessons in property investment
I’ve talked extensively about my personal experience in property long before my career in Buyer’s Agency began. I’ve shared plenty of ups, and plenty of downs. Most importantly, I have enjoyed sharing my learnings, because there is a lot of merit in saving someone else the hard lesson, (and the repercussions). I have purchased not…
Some of the methods we employ to shortlist great properties
Earlier this week, I was asked by a client, “Cate, how do you and your team shortlist my properties?” Our client was wondering how there are so many out there, yet we have just provided her a detailed list of only two properties that meet her criteria. Is her search particularly fussy? No, not at…
Equity Is Not Liquidity: The Costly Assumption Many Investors Make
One of the most common mistakes I see property investors make is assuming that equity equals liquidity. It doesn’t. Just because your portfolio has grown in value doesn’t mean you can access those funds to buy again. Equity is the difference between what a property is worth and what is owed to the bank. On…
What actually happens on settlement day?
For most homebuyers, settlement day feels like an enigma. After the excitement of the purchase, the contract signing and execution, the finance approval and all of the planning for the big day, settlement mysteriously happens behind the scenes. Many buyers ask us whether they need to ‘be’ anywhere on settlement day. But PEXA takes care…
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