News

What a dramatic but positive transformation the real estate industry is going through!

Rapid adjustment through COVID regulations and a malleable industry that is always looking for improvements has led to far greater efficiencies and transparency. 

For example, let’s look at Auctions. Who would have thought the 4 week standard campaign could be reduced to only 3 weeks and be equally effective?

Geordie Dixon Director from Jellis Craig Hawthorn said: ” A 3-week campaign today is enough to conduct the right number of open houses and market a property”. 

Some agents are pulling forward an auction and conducting a boardroom or on-site auction if there is healthy competition. We observed a Brighton East family home auction run by Matthew Pillios, Director, Marshall White Bayside, pulled forward a week from Saturday to Wednesday. The agent judged that competition was healthy and that the auction could not wait. The result? Seventy people attended on a Wednesday, six bidders and an outcome well above the estimate.

Technology has played a big part in making the industry more efficient:

• Zoom auctions became essential during the lockdown and today are still in use.
• Easy distribution of “paperwork” such as the Contract of Sale and Section 32 took weeks before – now they are sent same day upon request. 
• Logging of prospective buyers is done electronically at the door; follow-ups efficiently managed by agents and reports generated.
• Listings and printing of materials are now sourced in a fraction of the time. 

Today Vendors are also under positive pressure to get properties prepared in quick time. Agencies are so focussed on efficiently preparing a property in a short period. They have a team of tradespeople and stylists ready with agreed competitive pricing to cut listing times.

The market today, post-Covid lockdown, is a fast-paced, efficient market benefitting vendors and buyers alike.

Buyers in today’s environment must stay abreast of the positive changes and need to know:

• The best time and process of making an offer
• If confronted with a Boardroom Auction – how does that work, what to do?
• When at the Auctions – how and when do I bid to be competitive?

Call us at ela Property Advocates to help you with either selling OR buying a property. Guy Angwin. 0412 022 998 or Geoff Briscoe 0418 740 351. http://www.elapropertyadvocates.com.

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We are often asked by our family home buying clients “what is better to buy, a “new build” (modern) home or period home”?. It’s not easy to answer as no two clients have the same brief for their property search. 

Clients generally fall into one of three categories.

1.A Modern Property: (no more than five years old)

These clients are all about the now, proximity to schools, floorplan flexibility heating/cooling, substantial natural light, car parking etc.  

2.A Period Property: 

These clients are more focused on capital growth, be inner city, proximity to schools, quality streets, and neighbours (also in a period style). A less than perfect floor plan is ok, average or above-average land content for the precinct, close to public transport/shops, and may consider a renovation in the future.

3.A Renovated Period Property. 

These clients want the best of points 1 and 2. An inner-city property with a period façade, renovated interior, and landscaped gardens. A modern floorplan seamlessly connected to an outdoor entertaining area. An average or above-average land content for the precinct, and close to public transport/shops.

The choice between one or the other depends mostly on the individual’s emotional, financial and family needs. We know from historical data that period properties have held their value better than any other property type. 

Does it mean that buying a new property is a bad idea? No, you have to be more careful about what you buy and look for and incorporate as many of the following in your search criteria.

• A timeless façade 
• Will the façade still appeal to buyers in 25 years 
• Ideally architecturally designed by a renowned architect 
• Distinctive timeless exterior features 
• A functional floorplan, taking into consideration that two home offices may be the future norm
• Excellent connectivity between zones, in particular, the outside garden/pool area
• Natural light throughout
• Spacious walk-in robes 
• Quality everything 
• Perhaps even a basement with an underground car park

If it’s a well-designed house with the above elements, in 25 years a “classic new build” house will always have added value in addition to the value of the land only. For example, modernising surfaces can easily be achieved in 25 years, but trying to incorporate the “classic” elements in the future may not be achievable.

Conversely, in 25 years, an inferior “new build” that lacks most of these elements may even be demolished – with all the value in the land only.

So our advice is that if it’s a new build you are looking for its better to buy an architect-designed “new classic” than a house that may have only land value in 25 years.

If you are unsure about buying “new-build vs period home” and need some guidance, call Guy or Geoff at ela Property Advocates. Guy Angwin. 0412 022 998 or Geoff Briscoe 0418 740 351. http://www.elapropertyadvocates.com.

The Victorian Government is now offering a one-off stamp duty incentive for investors and owner-occupiers thinking of buying property. 

On November 24th, The Victorian Government announced stamp duty discounts of up to 50% as a stimulus to the post-Covid housing market and the building industry. The stamp duty waivers are only available through to the end of June 2021 – a relatively short window.

The savings differ for new and existing homes. The full 50% stamp duty relief applies to those buying newly built homes valued up to $1,000,000. Australians purchasing existing homes can access a 25% waiver up to the same $1,000,000.

On a $1.0 million new property, for example, Stamp Duty falls from $55,000 to $27,500 for eligible purchasers, according to the Victorian Government stamp duty calculator. 

Vendors could reap the rewards, perhaps achieving a higher price because buyers will have extra to spend. That might encourage more vendors to sell, a positive because stock levels are very low and property listings dramatically down on historical levels.

The government generally looks to support first home buyers; however, the discount could also bring investors back to the market who are also eligible for the waiver. 

If you are ready to enter the property market as an owner-occupier or investor but need some advice on your options, call Guy or Geoff at ela Property Advocates. Guy Angwin. 0412 022 998 or Geoff Briscoe 0418 740 351. http://www.elapropertyadvocates.com.

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 hight end of the SOI. 

The Statement of Information must include:

• An indicative selling price for each property, based on recent comparable sales. 
• An indicative selling price for the property which may be a single price or a price range of up to 10 per cent. 
• It must not be less than the agents estimated selling price OR
• Not less than a price in a written offer that has already been rejected by the seller.

However, the seller may choose to set their reserve price on the day of the auction. 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.

That reserve prices are exceeding advertised price ranges also highlights 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 $800,000 to $880,000. But on the day of the auction, the reserve price may be more than $900,000.

How does this happen? 

Because the seller, 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 ela Property Advocates to discuss all of your options for selling or buying property and the necessary strategy to succeed in today’s complex market.

Guy Angwin: guyjohn@iinet.net.au, 0412 022 998 or Geoff Briscoe: geoffbriscoe@tpg.com.au, 0419 740 351.

Is it legal to use electronic signatures?

In short, yes, they are legal to use; however, they aren’t always accepted or in some instances, binding. Officially electronic signatures are valid and legally binding with Australia passing the Electronic Transactions Act in 2000. The general rule has been established that no transaction will be invalid simply because it was completed electronically.

Unfortunately, there is not a one size fits all approach to electronic signatures, with some legal documents having additional requirements such as being notarized or witnessed which can add complexities to the process – though these are not insurmountable. Some documents will also have a requirement that the signatures be handwritten; therefore, only a handwritten signature will make the agreement binding.

Consent – In the contract, unconditional permission to electronically sign is a pre-requisite. Parties to the contract should also agree that using electronic signatures for the agreement is acceptable before signing.

If you want to know more always seek legal advice and you can also read about it here in section 10 (signatures) of the Electronic Transactions Act

So, in summary, we see more and more agencies using electronic contracts and signatures. They are legal, but consent is required and please discuss this with your conveyancer or solicitor. 

Call us at ela Property Advocates to discuss all of your options for selling or buying a property in today’s market. Guy Angwin: guyjohn@iinet.net.au, 0412 022 998 or Geoff Briscoe: geoffbriscoe@tpg.com.au, 0419 740 351.

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In our property journey, we often come across Californian Bungalows where hipped or gabled dormer windows have been added to increase habitable space. 

Loft conversions have long been popular, brought about by the addition of dormer windows. These days you don’t have to be content with awkward sloping ceilings and small roof windows or skylights. Choosing a dormer window instead adds style and character to your home, as well as increasing the headroom and maximising the useable floor area. If constructed in a sympathetic way to compliment the house and the street presence, dormer windows add value. 

However, for loft conversions to be practical, you must ensure you have adequate floor to ceiling height. If buyers feel cramped, you may not get back the money you have spent on the renovation. 

What is a dormer window?

A dormer is a vertical window, with a roof of its own, which sticks up from the slope of a pitched roof. It’s a significant improvement over a skylight because it offers views to the outdoors, just like a ‘normal’ window and creates a greater sense of space. Similar to skylights, dormer windows are a source of light and ventilation roof or loft spaces, but unlike skylights, they also provide the opportunity to increase the amount of headroom and allow for more usable space.

Heres some examples but the important consideration is to choose one that is aesthetically pleasing, in the right proportions and complementing the architectural style. 

• Flat roof dormer. Possibly the cheapest to build and often creates the most additional internal space.
• Shed dormer. Similar to a flat roof dormer, a shed dormer features a single-planed roof that slopes downwards at an angle. 
• Gable dormer. The gable dormer has a simple pitched roof. Considered a more traditional and attractive option than the flat roof dormer, it’s a popular choice for period homes.
• Hipped dormer. A hipped or hip roof dormer has three sloping planes, the same as a full-size hipped roof, where they are typically installed as a matching feature.
• Eyebrow dormer. An eyebrow dormer is unique in having no sides; this traditional style is beautiful on the right property.

In summary loft conversions with the appropriate dormer window(s) will add value to your property; however, a loft addition that has inadequate floor to ceiling height may stop potential buyers from competing for your property.

Call us at ela Property Advocates to discuss your options for selling or buying a property. Guy Angwin: guyjohn@iinet.net.au, 0412 022 998 or Geoff Briscoe: geoffbriscoe@tpg.com.au, 0419 740 351.

Here’s an insightful article highlighting that property holding years are now longer than historical levels. You can punch in your postcode to check your suburb. Here’s a link to a previous blog on the same subject from ela Property Advocates https://lnkd.in/gzvXiij

https://lnkd.in/g947zRs

As part of the property sale process, agents pitching for your business will present you with a marketing proposal. 

Having the right marketing is an essential part of a successful sale campaign and unavoidable. Like most things today, you will need to advertise to be seen, and in addition to marketing, there are other costs that the agency will need to recoup from you.

It’s a misconception that the agency will bear the cost of marketing to secure a sale commission – the expense is the vendor’s responsibility.

There are other legitimate costs too, but be aware that legislation covering the real estate industry only allows for recoupment of all marketing and sundry additional expenses. The agency cannot add a margin.

How do I know where to advertise?

Assuming you chose a local agent, they know what will work best given their locality expertise. 

A typical marketing plan, all at your cost as the vendor will include:

• Internet advertising – by far the most effective and the internet cost will absorb most of the budget.
• Print media in some cases
• 360-degree virtual tour movie inside and outside 
• Photography
• An auction board, sometimes fitted with solar-powered lighting
• Handout brochures for Open for Inspections 
• Copywriter fees 
• Artwork and production 

Internet Advertising

Your agency will select what has worked best in the past, but by market share, make sure it includes these first two in addition to your agency’s site:

• realestate.com.au and domain.com.au 
• Your selected agency’s site. The agency will always include your property in their own branded web site. 
• If the agency suggests other internet sites, ask the questions – what’s the reasoning behind the selection and the cost?

How much should I spend?

Typically, a well-constructed campaign will cost you as much as $8,000 for a property exceeding $1 million. As you would expect, the more expensive the property, the higher the marketing expense particularly when print media comes into play. Payment can be deferred until the property settlement for an additional small fee.

As vendor advocates, we advise you on agent selection the right campaign for your property, the cost and the method of sale. Call us at ela Property Advocates to discuss your options for selling or buying a property. Guy Angwin: guyjohn@iinet.net.au, 0412 022 998 or Geoff Briscoe: geoffbriscoe@tpg.com.au, 0419 740 351.

The Spring season has historically been a high volume selling period for Inner Melbourne. However, this year due to Covid-19, the spring market only opened on October 19th. And now we see a significant shortage of stock as vendors were unable to hire tradespeople from doing any listing preparation work and real estate agencies were closed.

Our opinion is what might have listed this Spring, will now move to February/March 2021 as:

• Stock levels may improve as vendors will gain some confidence from sales made this quarter.
• There will be time to prepare stock for February 2021 unlike Spring this year
• Interest rates have continued to fall 
• All indications are the economy will continue its recovery as we learn to manage with Covid-19

Families will be looking too. After an extensive lockdown period, families have been spending more time together than ever before. The functionality and floorplan layout may have come under pressure during close living conditions. 

As a result, families about to enter the market might be searching for:

• More space
• Improved functionality 
• Renovated interiors or renovation projects 
• Proximity to schools, shops, medical and public transport 
• Parklands and exercise areas 

All of these factors indicate This year’s Spring may start in February 2021. Call us at ela Property Advocates to discuss your options for buying or selling in 2021. Guy Angwin: guyjohn@iinet.net.au, 0412 022 998 or Geoff Briscoe: geoffbriscoe@tpg.com.au, 0419 740 351.

The selling environment in Melbourne has been through some dramatic changes. We had a period of no auctions, and then online auctions only, a new concept for many agents.

Last weekend we transitioned to 10 only attendees plus agency staff, and perhaps soon we will return to the full open unlimited auction experience. Despite the disruption, the market has still functioned, but vendors are still wary, and stocks of quality houses low. 

What we observed with the opening of the auction market was a potent reminder of the fundamentals. 

One auction we attended attracted just one bidder and one other onlooker despite healthy market demand.

Why? 

The fundamentals of the property weren’t quite right. The property was promoted as a sizeable five-bedroom family home, but the layout was not functional, the pool dominated the back yard, and there were no green lawn areas for children.

The gally kitchen position was separated from the family and living zones, and overall, the market assessed it as a C grade property. The market functioned efficiently, and the property attracted little interest.

The reminder to buyers and us again is that C Grade properties will always struggle in nearly all market conditions. 

However, at the other end of the scale, the demand for A-Grade properties is healthy. Stock is short and will remain so. Auction competition is active with multiple bidders, and in our view, this will continue for the foreseeable future for A-Grade properties. (See our story: https://peninsulapropertyadvocates.com.au/2020/04/27/buy-when-the-right-house-comes-along-dont-wait/)

And to our readers, here’s a reminder of what constitutes an “A Grade” property in inner Melbourne.

• The land content is consistent with the precinct and the property not overcapitalised.
• The location is away from main roads or busy streets and preferably in quiet and pleasant streetscapes. 
• The property is ideally walking distance to shops, medical facilities, open spaces, school and transport. 
• The building itself. Scarcity, for example, period homes, the build quality, orientation on the block and a functional floorplan. 

As buyers advocates, we work for you to assess properties you may be considering now. Is the property your looking at an A – B – or C grade property? We also source properties if required, and negotiate on your behalf. 

Call us at ela Property Advocates. Guy Angwin: guyjohn@iinet.net.au 0412 022 998 or Geoff Briscoe: geoffbriscoe@tpg.com.au, 0419740351.