Author: Peninsula Buy Sell Property Advocates

People wanting to buy on the Peninsula ask, “We are ready to buy, but should we go ahead, considering what’s happening in the world, current interest rate levels, and everything else going on?”

 If you find the right property, the answer is YES! You should definitely consider it.

Why? Unlike the last few years, stock-level numbers (listings and off-markets) are way up. It’s become a buyers’ market on the Peninsula! Demand is weaker, but Vendors have been caught in the interest rate and taxation trap and are willing sellers. With another Land Tax Invoice coming on January 1, some vendors no longer want to own property on the Peninsula.

But this creates a wonderful opportunity for new buyers on the Peninsula. As of 20 November, 253 houses were listed in the Blairgowrie, Rye, and Sorrento areas alone, plus a substantial number of off-market properties for sale. To put this in perspective, there were less than 60 during COVID-19 (the last time we will mention that word).

To buy in such a market and to maximise your purchase $$$$, It’s essential to be prepared by doing thorough research and due diligence. In this market, having cash on hand or secured funding (in writing) considerably strengthens any offer you make, as it can be presented as an unconditional offer. Vendors don’t want any strings attached!

Whilst there are good stock levels, you must make sound emotional and investment decisions and aim to secure an A-grade property that will be a family asset for many years.

That’s where we come in. We are local, know the market, and list agents well. Talk to us, and we will guide you through buying a great Peninsula property.

Contact Geoff Briscoe, Peninsula Property Advocates mobile at +6141974035 or email geoff@peninsulapropertyadvocates.com.au to buy on the Peninsula.

For most things requiring a great outcome, generally, a high level of planning is essential. When you consider that property is amongst the highest dollar value purchases for most people, it’s not something to take lightly. Whether you are starting or investing in another property, here’s our shortlist of essential considerations:

What is it you want to achieve?. Investment property is just one of many asset classes – but more a long term investment. If you are trying to build wealth over your lifetime, well researched and well-chosen properties have historically proven to be a sound investment.

Emotion vs investment.  To be blunt, investing is about making money. It’s essential to keep the emotion out of your decision making. For example, that glamorous high-rise off the plan tower apartment with pool, gym, and amenities looks impressive. Still, its overall returns historically have generally not matched an inner city-established property. 

Financing:  Many investors will need support from their lending institute. Meet with your bank and discuss how they can help you. The discussion will open up ideas on the budget and type of property you can invest in.

The property shortlist.  There are many property classes; here are a few to consider depending on your budget:

• Residential- house, apartment or flat
• Holiday lifestyle homes
• Commercial/Industrial
• Retail shops 
• Special accommodation; like a caravan park or student housing
• Agricultural
• Industrial/factory/warehousing 
• Land banking for the long term family plan. 

Professional services.  See your tax accountant, solicitor and financial planner and ask for advice on the best investment structure for you. There are many possibilities, and your goal is to (legally) minimise tax and set up a structure for the long term.  

At Peninsula Buy Sell Property Advocates, we help you make good decisions. Call or meet us, and we will discuss the extensive list of property investment pros and cons. Call Geoff Briscoe 0419 740 351 www.peninsulapropertyadvocates.com.au

During your property journey, there may come a time when you consider a particular property because it satisfies an emotional need rather than a financial need.

An Emotional Property purchase may be:

• Apartment
• Holiday house
• Farm
• Townhouse
• Snow chalet
• Flat
• House and land package

A Financial Property purchase may be:

• Period home on 700 sqm of land
• A property where the depreciated value of the house is less than 40% of the total purchase price
• The property located within 10 minutes walk of a train station, shops and parklands
• Historically the capital growth of the property has outperformed the market
• Ideally, the property has a northerly orientation to the rear
• Has off-street parking for at least one car
• Located in an inner-city suburb 
• Strong residential street with limited or no commercial or high-density residential developments
• When you bought the property, there were other interested buyers

There will come a time in your life when buying a property is about satisfying more of your emotional needs than financial needs – it’s just unavoidable. 

Some examples of emotional purchases that may occur in your lifetime:

• A country person looking for a Melbourne apartment 
• An overseas buyer who needs to satisfy immigration requirements and can only purchase a newly constructed home or apartment 
• A health care worker who needs an apartment very close to their work so they can be on call 
• Retirees who may have a place in the country yet still like to come to the city regularly, and doesn’t want a property that requires regular maintenance
• A family buyer who wants a low maintenance property with floor plan flexibility and convenience that only comes from a new build
• A retired person or couple that doesn’t have the physical capacity to maintain a large family home with a garden

At some stage in your life, you will have to make an emotional property purchase. However, you can still give yourself every opportunity to improve the potential for capital growth by trying to include as many of the following as you can.

Beach House/Farmlet:

• Is your beach house within an hour and a half drive of the CBD?
• What are your neighbours like?
• How far from the beach are you?
• Where are the nearest shops?
• Where is the nearest doctor and hospital?
• Does the property have a view?
• Can any adjoining developments impact your property?
• Would your property appeal as a rental?
• Are there any immediate or ongoing maintenance issues?

Apartments:

• Does the property have a view?
• Is it close to trains, parks, schools, medical, shops and cafes?
• The layout – study the floor plan carefully – does it have floorplan flexibility?
• What are your neighbours like – can the great view be built out? 
• Your neighbours – are they owner-occupiers or are they transient?
• Parking – do you have on-site parking and how easy is the access, and not everyone loves car stackers  
• Does your apartment have a pool and gym – what cost is that going to add to OC fees? 
• High ceilings are super important.
• A smaller block of apartments tends to hold their value better.
• Is the orientation, light and how is your privacy?
• Storage locker/cage. 
• Noise – is this a quiet apartment block or a “party tower.”?
• Owner Corporation Fees – have you budgeted for them?

Managing your emotional/financial needs when buying a property is very complicated. If you would like to discuss your property journey, please don’t hesitate to contact Peninsula Buy Sell Property Advocates.

GeoffBriscoe: geoff@peninsulapropertyadvocates.com.au, 0419740351.

Think of this scenario. Your neighbour has decided to sell up and go north. They get a good price for their house – a bit higher than you expected even though the market has cooled a little – you decide to sell up. Time to head for the beach whilst the market is still at reasonable levels. 

However here’s a real-life experience facing many people today, and here’s the timing our sea changers faced…….

• Weeks 1-2. The agent selection took two weeks.  
• Week 3. The agent gave their opinion on required repairs and renovations. 
• Weeks 4 & 5. The vendors agreed to spend a substantial amount on the property to maximise the sale price. There were no permits required, just materials, renovation and selection of tradespeople – two weeks. 
• Weeks 6 to 9. Discussions with the builder began – this is where it got very messy. The builder couldn’t start for four weeks, and there was an acute shortage of supplies and tradespeople.  
• Bank loan processing delays. The banks said they were pretty busy with approvals and staff shortages so it could take up to four weeks to approve the next property purchase. At least this could be done whilst the renovations were taking place.
• Weeks 10 to 15. Renovation works get underway – massive material shortages builder cant finish job on time.
• Weeks 16 to 17. Project delayed further, materials and tradespeople shortages
• Weeks 18 to 22. The property is finished, and the four-week auction campaign gets underway – the property is listed.
• Week 22. The house is sold at auction. 

Although much of the work was done simultaneously – it took nearly 6 months from the vendor’s first thought of moving until the successful auction. The idea of quickly capitalising on the market became a nightmare for this family.

And, with such a lengthy sale period the owners had to wait to sell before looking for their next home in earnest.

At Peninsula Buy Sell Property Advocates, we advise you step by step with the sale of your property and ensure you have a complete understanding of what lies ahead. Call Geoff Briscoe 0419 740 351. Web: http://www.peninsulapropertyadvocates.com.au

We attended an auction recently where a bid was made at the high end of the advertised Statement of Information (SOI) range, and the bidder asked: “Is the property on the market?”. The agent replied, “we will let you know when it is”.  

The reply caused a minor crowd disturbance, but the agent was within their legal rights to reply in this way even though the last bid was at the high end of the SOI. 

The Statement of Information (SOI) must include:

• An indicative selling price for each property, based on recent comparable sales. 
• An indicative selling price may be a single price or a price range of up to 10 per cent. 
• The SOI must not be less than the agent estimated selling price OR
• No less than a price in a written offer that the seller has already rejected.

However, the seller may choose to set their reserve price on auction day. The reserve price decided on the day may be above the advertised price. The reserve can be whatever the vendor chooses on the morning of the auction — regardless of the indicative price range. In a competitive auction market, vendors can set reserves higher than the advertised price guide and sometimes this can come as a surprise even to the selling agent.

Reserve prices in the Peninsula often exceed the SOI price range highlighting why the property market is increasingly difficult for inexperienced buyers on a budget to navigate. For example, a house may be advertised with a price guide of $1,100,000 to $1,200,000, but on the day of the auction, the vendor reserve price may be more than $1,250,000.

How does this happen? 

Because the seller (vendor), not the agent, entirely decides the reserve price, a spokesman for Consumer Affairs Victoria said. “The reserve can be set as late as auction day and may be influenced by the level of interest in their property,” he said. 

Call us at Peninsula Property Advocates to discuss all of your options for selling or buying property and the necessary strategy to succeed in today’s market.

Geoff Briscoe: geoff@peninsulapropertyadvocates.com.au 0419 740 351.

To be successful at an auction today, you will need multiple strategies, and that’s where we come in. 

• Should you make offers before an auction?
• Auctions are transparent and unconditional and so preferred by Agents and Vendors. What does this mean?
• Auctions are back in full swing, and we are seeing larger attendances and more telephone bidding.
• Not every auction or property is going to be the same. Do you have an A, B and C strategy ready? 
• What’s your strategy if there are no bidders or multiple bidders?
• What is the best time for you to start your bidding?  
• If an auction is a pass in, how will you negotiate?
• Do you negotiate inside or outside?

Call us at Peninsula Property Advocates to talk about your game plan and how we can help you search, assess and bid to enhance your auction chances. 

Geoff Briscoe: geoff@peninsulapropertyadvocates.com.au, 0419740351.

As Vendor advocates, one of our roles is to advise on agent selection. We meet and collaborate with numerous selling agents in the role, but some real estate agencies and selling agents stand out more than others. 

What To Look For In Choosing a Selling Agent

1.   Knowledge: A selling agent must be an expert in the local area. They are more likely to be talking to a potential buyer than an “out of towner” and will have a strong feel for buyer depth, potential value and the selling campaign required (auction, EOI, private sale). 

2. Communication: How good will the communication be after signing the authority.  

• Will you now be handed over to a junior agent or the office administrator? 
• Who is going to stand at the door during opens?
• Who is going to follow up leads?
• Who will be conducting the auction? 

Successful agents don’t work alone and will need help to sell your property; however, they don’t delegate the crucial processes. Understanding who is in the team and who plays what roles should be explained at the first meeting

3.   Persistence. – If the property doesn’t sell, what happens then? Are you going to have additional costs such as marketing, etc., and what strategy does the agent have to complete the sale if an auction is unsuccessful.

4.   Right agent fit for the property. Some agents specialise. For example, a highly successful agent we have worked with recently only sells apartments. However, he has extensive knowledge built up over a long career and therefore has an advantage over other agents; this resonates with vendors and buyers alike.

5.   Great listeners. The top agents are just great listeners. We see the quality agents read their client well and adapt their approach accordingly. They are great at open for inspections and always trying for a future listing. They are fluid thinkers – adaptive and can react to vendors and buyers alike to maximise outcomes. 

6.   Attention to detail – good agents don’t cut corners – look for an agent that is professional and timely in their communication from the very beginning. 

7.   Presence: Whether a private sale or online/onsite auctioneer, the successful agents have gravitas – someone you are glad to know and trust.

If you are thinking of selling (or buying) a property, we help you select the best agent for your property, and it comes at no cost. 

In our experience so far, online zoom style auctions appear to be achieving the same results as onsite auctions and no barrier to achieving the desired result. 

We still like onsite auctions – who doesn’t, with the theatre and the buzz around a freshly prepared property. After all, generally speaking, properties are at their best on auction day – with gardening/landscaping, staging, renovations, all repairs done, upgraded flooring and a fresh coat of paint. An onsite auction is like a party – the property is all dressed up, excitement in the air and great expectations by vendors and buyers alike.

Vendors naturally want to have their properties looking the best on auction day – the stakes are high. We observe that vendors have often lived with the idiosyncrasies of their properties for years. But come auction day – presentation is (generally) exceptional! 

And yet, to date, online auctions, forced on agents by the Covid protocols, are working well, achieving the desired results without any market slowdown. Vendors are still encouraged by the good results and progressing to a listing, and buyers are attending and buying, as seen by the high clearance rates over the last weeks.

We also observe that auctioneers tend to slow the procedure down for online auctions, allowing time for people in their preferred environment to make calls, discuss openly with family and friends (on mute, of course!), and carefully consider their next bid.  

Do you have a strategy to be successful at an online or onsite auction? 

Buyers need a winning strategy to be successful at an online or onsite auction. At ela Property Advocates, we employ strategies to help you consider all the options and improve your chances of success. We help you make good property decisions. 

The Melbourne property market is forever evolving – a good example is how agents adapted to online Zoom auctions during the COVID lockdown.

Another dynamic change we are seeing is the effect Baby Boomers are having on the property market. There are over 5.0 million Baby Boomer Australians aged 57-75, one of Australia’s largest population groups. They are cashed up, healthier than previous generations and aren’t heading to the retirement village any time soon!

Many Baby Boomers are financially sound and can help their children enter the property market, and we see more examples than before.

Why do the Baby Boomers need to help?

• Bank lending practices have changed, including the tightening of responsible lending regulations.
• The new rules have caused a significant impact on young people and first home homebuyers. 
• Banks more than ever from November 1, 2021 scrutinise income and expenses to determine it is mortgage serviceability. 
• Reaching up to 20% deposit is a challenge, plus the expense of stamp duty.
• Wage growth hasn’t kept pace with property price growth. 
• Melbourne median prices are rising – in September this year, the median house price in Melbourne exceeded $1 million. 
• Baby Boomers are in an excellent position to help as they have good superannuation balances, and the value of their homes has risen significantly.  

At a recent auction, we were bidding on behalf of a client. We witnessed intense bidding with five bidders, and the successful bidder was a father-son team. We later found out that he would not have succeeded in this highly competitive auction scenario without the financial assistance from his Baby Boomer parents.