Real Estate Malvern News

The first couple of months are some of the most crucial indicators of the year to come for real estate agents. With this in mind Fraser Cahill went on the warpath.
In the last month alone his efforts have included;
4/28 Raleigh St Prahran which he sold for $387.500
On the weekend of the 17th of March he sold both, 10 Ethel St Malvern which went for $1,485,000, and 62 Kooyong Rd Armadale which went for 1,230,000.
And on the 24th he sold 1/31 Ferncroft Av Malvern East for 1,150,000.
Needless to say Fraser’s auctioning skills are becoming a talking point in and out of the industry. He has certainly had an amazing month and we will all be watching, as he excels through the rest of the year.
We would like to congratulate Fraser Cahill for his efforts this month, and the rest of the Thomson Malvern Office for getting a perfect five out of five sales on Saturday.
Well Done!

December median house price figures have recently been released by the Real Estate Institute of Victoria (REIV). Generally speaking, they indicate a market that is stable.

In metropolitan Melbourne the December median was $550,000. This represents a minor increase of 1.9% from a September quarter median of $540,000.

The strongest growth in demand was found in Kew, Prahran, Elsternwick, Kensington, Mornington, Port Melbourne, Balwyn North, Blackburn, Wantirna South, West Footscray and Mount Waverley. However, most of these suburbs recovered ground lost in the September quarter.

The median price of a house in regional Victoria rose by 0.8% to $312,500. Of the three main regional centres, demand was highest in Bendigo, where the median house price increased by 6.3% to $294,000. In Ballarat the increase was 3.6% to $290,000 and in Geelong there was a drop of 2.3% to $380,000.

The REIV data confirms that, overall, the median house price across the market did not change during the second half of 2011. The key factors driving this steady period was a combination of lower consumer confidence, a slower state economy and an increase in supply.

As we head into 2012, most agree that housing affordability has improved. And with further interest rate cuts predicted over the coming months, we are likely to see an increase in buyer activity and a welcome boost to the market as a whole.

Aquaponics is a system that combines aquaculture (fish farming) and hydroponics (growing plants in water). Based on what typically occurs in nature it’s an increasingly popular as well as an environmentally friendly way to grow vegies, herbs and fish in your very own backyard.

Put simply, water from a fish tank/pond is reticulated through to gravel-filled beds to feed plants. Popular fish used in Australian aquaponics include silver perch, jade perch, sleepy cod, murray cod and barramundi along with rainbow trout, brown trout and yabbies. As the water contains fish waste, the plants lap it up like a liquid fertiliser, removing the nutrients before returning it to the tank or pond. It’s a thriving and renewable organic harvest system and also a beautiful living sculpture.

The aquaponic system relies on the relationship between the animals and the plants to maintain a stable aquatic environment that experiences a minimum of fluctuation in ambient nutrient and oxygen levels. Water is only added to replace water loss from absorption and transpiration by plants, evaporation into the air from surface water and overflow from the system from rainfall. As a result, aquaponics uses a fraction of the water that a conventionally irrigated farm requires for the same vegetable production.

Aquaponic systems can be as small or as large as you prefer. The set up can be purchased ready to go or home made productions can be constructed with a little know how. Browsing the internet will quickly provide inspiration for the perfect Aquaponic system for your place. The kids will love it!

With out the help of a crystal ball to sneak a peek into the future, most real estate agents rely on previous data and historical trends mixed with current market activity to predict what lies ahead in the property market.

Enzo Raimondo, CEO of the Real Estate Institute of Victoria, said in a recent interview that he expects a better year than last with further interest rate cuts likely at sometime during 2012. He also reiterated his 2011 opinion that it is still an opportune time for first home buyers and investors to take advantage of our softer market.

It’s likely that overseas economic woes will continue into 2012, undermining the stronger local economy and keeping consumer confidence subdued. Global uncertainty plays a significant role in how we live here. Many people are nervous about spending money even though the outlook here is relatively positive.

One thing is clear though, the Melbourne market does move in cycles with some years being very strong and others not so. This is due to a whole range of factors. Changes in the economy certainly have an impact, as do misalignments between supply and demand. The latter was a significant factor in the market in 2011. Over the last 20 years, however, investment in Melbourne property has provided better returns than the stock market, a factor that will provide comfort to many property investors, potential buyers and current home owners as we enter another year of real estate.

We all complained bitterly when it didn’t rain very much over the last few years. Recent torrential downpours have certainly put an end to that! Isn’t it great to see so many thriving gardens across the city, even if it does mean mowing the lawn every other weekend!

Water levels are well up on last year and rainfall has been higher than average in most parts of Victoria. As a result, Melbournians moved to stage one water restrictions last week.

This means we can now water our gardens any time with a hand-held hose and trigger nozzle. Automatic and manual watering systems can be used on alternate watering days, with even and no numbered houses on even dates.

And whilst our lawns don’t need any watering at the moment, over summer we are permitted to water them under the same rules as the rest of the garden. And for new warm season lawns, households can obtain a 28 day exemption to water those lawns with a watering system.

A water feature or garden fountain can now be filled and operated provided it reticulates its own water. More relaxed restrictions also apply to filling and topping up swimming pools and spas. For further details it’s worth checking out the following website: www.melbournewater.com.au

As we come towards the end of the year and Christmas it is perfectly common for the market to drop off. In tough conditions and this time of year it is important for agents to be honest and realistic with their clients.
That is exactly what Will Glowrey, and John Chartres did when they were faced with the task of selling 12/27 St Georges Rd Armadale.
With a slow campaign and very small numbers through the property, Will and John made sure that the client new the reality of their situation and the market.
I the week leading up to the auction Will and John were worried that they might not get anyone turning up let alone putting their hand up at auction. So Will jumped into action, he called everyone from buyers advocates to people he had met at similar properties, telling them about the property and informing them that they might be able to pick the property up for a reasonable price on auction day.
The Friday morning before the auction, saw John and Will drive out to see their vendors Graham and Helen Stenhouse. They were there to discuss the process of the auction and to let them know what they thought would happen,
Auction day saw John Chartres, begin the Auction with a Vendor bid, he then passed the property in on a vendor bid, without seeing a genuine bid from the crowd.
As soon as he did this it was a scramble for Will to get around to as many people as possible to see if there was any interest.
After running around like a mad man, he came across Jeremy who said he was interested in making an offer. After negotiating Jeremy up to a reasonable price he then took the offer to the vendors which they accepted.
The property was sold half an hour after the Auction to a Happy Jeremy.
This is another example of how the market is moving at the moment, and how great salesmen like Will can still get a property sold.

Purchasing an investment property in a softer market can be a lucrative plan for astute buyers. When the market is booming almost any price a vendor puts on their property results in a sale. In a slower market, it’s much easier to buy real estate at more realistic prices because there’s a stronger supply than demand.

Savvy investors, however, are not so blinded by the chance of a bargain that they ignore their long-term strategy or the “golden rules” of property investing.

The best real estate to buy as an investment is that which you can add value to in an area that has proven capital growth. Many investors make their money when they buy the investment property at or below the market median and then add value. The property should shine through where location and potential, through renovation, come together. Finances and tax advantages are very important but they make no sense if the fundamentals of property investment do not come first.

A buyers’ market generally means buyers are more in control than sellers. It’s therefore easier to negotiate a delayed settlement on a purchase. But don’t forget that speed is also a useful bargaining tool. In a slower market, cash is king. A vendor may take considerably less for a quick settlement compared with another higher offer on delayed terms.

If you’ve found an investment property you want and have gone through your normal planning and checking processes, a cash unconditional offer and a quick settlement can significantly reduce the price you pay.

Stamp duty has been a fiercely debated topic in recent years, and an issue still at the forefront of most buyers’ minds. Victoria is renowned for its heavy reliance on the tax with our State Government charging more than any other Australian state or territory. Whilst we typically focus on the amount of stamp duty that needs to be paid, we rarely think about when it has to be paid.

It’s not good news therefore to know that some home buyers may soon have considerably less time to pay their stamp duty. The Victorian State Government is considering a change to the law that will reduce the deadline for paying the duty from 90 days after settlement to 30 days. And because the Government and the Opposition are supporting the measure, it is likely to come into effect by April 1, 2012. The modification is expected to impinge on around 15% of home buyers who currently pay stamp duty more than 30 days after property settlement.

Enzo Raimondo, Chief Executive of the Real Estate institute of Victoria (REIV), recently expressed his opinion on the tax saying he believes a range of reforms should be introduced to make the current system fairer. Some of these reforms include the removal of stamp duty on GST (tax on tax), the cessation of higher stamp duty rates on investors and the indexation of duty rates so the proportion of tax paid does not increase. The REIV, and indeed most experts, acknowledge that it is not possible to simply remove the tax as the state government would require a revenue source to replace it. Whether or not the suggested reforms are introduced at some point remains to be seen.

Before the process of selling your house or apartment can commence you need to sign a sales authority. The authority is a legal agreement to engage an agent to act on your behalf to market and sell your property.

The most common authorities used are an REIV Exclusive sale or Auction authority and an REIV general sale authority.

An exclusive authority is the preferred authority to use, particularly for residential real estate and is used when you are engaging the services of one estate agency to sell your property.

The exclusive authority contains important information such as the method of sale, details of the property to be sold, the vendor’s asking price or reserve if it is to be auctioned, the agent’s estimate of selling price, the agent’s fee for the sale and details and costs regarding the marketing and advertising of the property during the authority period.

In addition the authority also includes various notices required to be advised under the Estate agents Act and Sale of Land Act. All REIV authorities also contain a comprehensive privacy notice regarding the collection and use of personal information.

The general sales authority is less commonly used and allows you to list your property with more than one agent.

Regardless of what form of authority is used, make sure you read and understand the authority carefully before signing it. If you are unsure about any aspect of the authority, you can ask us or your conveyance to explain it to you.

Information provided courtesy of the REIV

Holiday homes are rather notorious for being a poor investment choice with lower rental returns and limited tax benefits. However, with a good deal of research and consideration buyers can make a purchase that not only provides them with priceless family memories, they can also enjoy substantial capital growth.

Many of the usual property rules apply when looking for a lifestyle property. If you can’t afford to purchase a house with the town’s best views, buying within walking distance of the beach or shops is the next-best option. And for the most lucrative holiday letting or resale market, it’s advisable to look no further than 90 minutes drive from Melbourne.

Other considerations for buyers include:

• Suburban style homes don’t usually resell as well as homes with period details or that extra beach/country charm
• Allow a reasonable budget for furnishings if the property you buy is unfurnished ($10,000 – $20,000)
• Expect a land tax bill: a holiday house is viewed as an investment property for tax purposes if you already receive an exemption for a principal place of residence in the city
• Regular expenses will include rates, electricity and water, insurance and commission to a letting agent
• Maintenance jobs are ongoing and can sometimes be more than at the family home

Financial considerations are important and should always be weighed up when looking at buying a holiday home. They aren’t always the deciding factor though, especially as some buyers don’t intend to rent out their property very often anyway. Sometimes the satisfaction and enjoyment of weekends and extended holidays at the beach house far outweigh the price tag.