News

The great real estate news for the week is the re-opening of public auctions. Up to ten people can attend a residential auction plus the agency staff conducting the auction. This announcement follows the earlier news that inspections could take place with one agent employee and one interested party. 

Ten might sound a small number for an auction, but there would rarely be that many people bidding on one property. The agency team will sort out pretty quickly who can attend after pre-qualifying genuine purchasers. The new norm is a smaller, qualified crowd and more likely that those you see at the auction have a genuine interest. 

This news is great for vendors and purchasers, many of whom have been in a holding pattern for 2020. Agents are also excited about on-site auctions as they are transparent and unconditional.  

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

• Auctions today will be different – those attending are probably genuine buyers. What is your bidding strategy with a smaller group?
• Not every auction or property is going to be the same. Do you have and 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 ela Property Advocates to talk about your game plan and how we can help you search, assess and enhance your auction outcomes. 

Guy Angwin: guyjohn@iinet.net.au 0412 022 998 or Geoff Briscoe: geoffbriscoe@tpg.com.au, 0419740351.

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.

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 work – 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?

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?

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 us at ela Property Advocates.

Guy Angwin guyjohn@iinet.net.au 0412 022 998 or GeoffBriscoe geoffbriscoe@tpg.com.au, 0419740351.

As the market re-opens, agents and vendors will use a variety of sales methods. Is the classic process of listing, marketing campaign, then zoom auction going to be the best strategy for vendors to sell their property after the recent COVID 19 shutdown?

Vendors will need a flexible approach to achieve the best outcome, and not one sales process alone is going to work. 

What selling options will agents recommend? 

• Some agents will recommend a quote range for a private sale
• Others may recommend a fixed price 
• Expressions of Interest (EOI) with a closing date have been popular during the lockdown
• Zoom online auctions have also worked 

All options will have a place in the market for now. Our view is that a skilful agent who can think on their feet and align with not one but many strategies is the right selection. 

Careful agent selection is vital, and if you’re not sure how to select the right agent with a flexible approach, that’s where we come in. 

• Do you choose a large agency group or a local boutique agency?
• Within agencies there are great agents – we help you select both.
• Listing agents will have a partner; does that partner compliment the listing agent’s weaknesses?
• Which agent has a track record of selling this type of property in this price range in your precinct?
• What current buyers do they have that could match your property.
• Are they skilled online auctioneers? 

In addition to agent selection, ela Property Advocates negotiates commission, reviews the marketing and recommends the sale type, e.g., auction, EOI or private sale. 

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

Despite the full or partial market closedown, the feedback from agents is they have a surprisingly high level of listings. In their view, it will be a strong opening when the market resumes tomorrow.

But, will the financial pressure of COVID 19 impact on the quality of properties about to hit the market? Are we going to see an influx of “B” and “C” grade properties dominate new listings as financial pressure starts to hit home?

So what do I do now as a Vendor?

Healthy competition for quality properties will most likely be a feature of the market when it opens tomorrow.  

• Prepare your property for sale.
• Engage a quality agent
• Declutter your property
• How is your spring garden looking?.
• Price your property correctly to maximise competition.
• See our article for a “Ready for when stage 4 is over”? https://peninsulapropertyadvocates.com.au/2020/08/16/ready-for-when-stage-4-is-over/

What if I’m a buyer?

You may be up against some intense competition for quality properties which, in our opinion, should remain in short supply.

• Have a good plan and strategy
• Ensure your preparations are complete as time on the market for quality properties has recently been less than 30 days.
• Have a flexible approach and research the opening market trends and direction
• Do you know how to bid at an auction or negotiate pre-auction or private sale?
• See our article for a “Ready for when stage 4 is over”?https://peninsulapropertyadvocates.com.au/2020/08/16/ready-for-when-stage-4-is-over/

If you don’t know how to do the above, that’s where we come in. We search, assess the value, bid, negotiate and gain early access to pre and off-market properties through our real estate relationships.

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

Date: 27 Sep 20

MEDIA RELEASE  FROM REIV TODAY                                         

The Real Estate Institute of Victoria welcomes the announcement today by the Premier of Victoria, Hon. Daniel Andrews, MP that private inspections for purchase or leasing of properties can recommence from 11:59 pm Sunday 27 September 2020.

Relaxing of the restrictions that have stopped Victorians buying, selling or leasing their property will see a slow and gradual return to real estate transactions in Melbourne. This will be an enormous relief to buyers, sellers and renters alike, many of whom have been suffering severe financial and emotional stress over the past few weeks. The announcement is also welcomed by the real estate profession as it will enable the first step in the resumption of property transactions and getting people back to work doing what they do best, helping Victorians find a home.

The REIV highlighted to government the impact that the ban on inspections has had on the property market. Spring is usually the peak time for sales however the inability to conduct any inspections saw the number of transactions plummet. The number of auctions over August was down by over 80% compared to recent years, with September numbers reduced to under 10 per week. Although virtual auctions and inspections were permitted, the reality is that most people will not purchase or lease a property sight unseen. Being able to inspect properties in a private and safe manner will enable on-line auctions and private sales to return.

The REIV appreciates the engagement with Hon. Melissa Horne Minister for Consumer Affairs, who took the industry’s feedback on-board and played an important role in developing a re-opening strategy based on the information provided.

Real estate agents will now be able to conduct inspections by private appointment. While we await further details regarding the Second Step, REIV Members are prepared with all safety measures in place to ensure the market can resume in a safe and efficient manner. 

Comments attributable to REIV CEO Gil King:
“This is great news for Victorians and should be seen as a positive and encouraging step towards a return to ‘normal’.”

Comments attributable to REIV President Leah Calnan:
“It is encouraging to see that the plight of many Victorians who were unable to make decisions about their own property has been reconsidered by the government.”

“This decision is recognition that the real estate profession can be trusted to conduct inspections in a safe and responsible manner. We have done so previously, and will continue to do so for the benefit of all Victorians.”

The Victorian Government has introduced mandatory registration for pools and spas commencing November 1 2020.

Registration:

Why take this step to register pools and spas?

It’s part of a new process to ensure all pools and spas comply with building and pool regulations. Right now the State Government estimates there are 222,000 pools and spas in the state but Russell Small, the General manager of Victorian Pool Safety Services, estimates it’s over 300,000. Voluntary compliance has not worked in the past resulting in massive non-complying numbers and uncertainty.

According to Mr Small from what he has seen so far, he estimates 85% of all private Victorian pools and spas don’t comply with protection barrier regulations.

But remember its registration by November 1, not compliance. Getting non-complying pools and spas up to regulations comes later, but if you don’t register your pool and spa by the November 1, 2020, deadline you could be fined between $330 and $1,652 

What to do now:

Here’s the process you should follow now:

• Register your pool and spa with your council, it’s around $79 to do so 
• Wait for your council’s response, they will write to you with a “build” date/year – this is important because that date dictates exactly which compliance rules apply to your pool or spa.
• Then call in the experts; for example, Victorian Pool Safety Services  victorianpoolsafetyservices.com.au.
• They or other pool experts will assess your pool and arrange compliance works.
• Once the works are done and signed off the compliance certificate is issued.

And it’s not over then, every four years you will need an inspection to ensure continued compliance just like a roadworthy on a car.

Property Settlement risk:

And finally, after November 1, pool and spa compliance may become a significant settlement risk so attend to it now if you are buying or selling. There are examples now, according to Mr Small, where banks are asking for evidence of pools and spas complying before they will settle. Talk to your solicitor/conveyancer about this if you are buying or selling.

And email us at ela Property Advocates, Guy Angwin guyjohn@iinet.net.au or Geoff Briscoe geoffbriscoe@tpg.com.au, to search, assess and buy or sell your next property.

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It’s an interesting question. There are many examples of purchases sight unseen, the most common being new off the plan residential towers.

In the past, for new properties, this has been quite normal with local and overseas buyers prepared to buy based on the developers marketing materials. 

But let’s talk about today under the current COVID-19 restrictions and here will discuss only established properties. Open For Inspections are effectively closed for around seven weeks hopefully re-opening 26th October – but nothing is certain. 

So even for established properties if you want to buy now, it will be sight unseen – except you can do a drive-by if it’s within 5klm of your home.

But we would advise extreme caution and here are some reasons. 

• Depending on age, there may be no building guarantees.
• Are the pictures you are looking at current – an accurate representation of the interior? 
• You will not be able to do a pest and building inspection, so how will you know if the building is free of pests and structurally sound? 
• Is the layout right for you just by looking at a floorplan and photos?
• Is the asking price fair? Who says so? How do you understand the value of the property?
• Have you considered how the bank will value the property with no access if you require finance?
• If you can’t do a drive-by, does it fits your precinct needs, medical, schooling, shops and public transport?
• What are the normal parking and traffic noise conditions?
• What are your neighbours like?
• What special contract conditions should you insist on given the exceptional circumstances? 

Buying sight-unseen is something that we do NOT recommend. For such a large investment, there are too many variables and potential negatives. 

However, if you are in a situation that means you must buy now, e.g. divorce, relocation, financial issues, etc., then call us. We will guide you through today’s challenging property landscape.

Please email us at ela Property Advocates, Guy Angwin guyjohn@iinet.net.au or Geoff Briscoe geoffbriscoe@tpg.com.au, to search, assess and help you buy or sell your next home.

Been wondering why you can’t find the house you want?

Ok we know about “the now” – during the COVID-19 enforced shutdown there are almost no new listings. And when you go back to the end of 2019, Inner Melbourne median house prices surged, up 5.0% Q4 vs Q3 according to REIV data. However, it was on significantly reduced sales volume levels. So really 2020 never got going, with low stock levels and only February operating under conditions even close to normal.

The long term trend

But well before these recent events, there has been a decade long trend with average homeownership years rising. The latest data from Core Logic shows that homeowners are holding onto their property for much longer than they were 10 to 15 years ago. 

Nationally, the average length of homeownership has risen to 11.3 years, but Greater Melbourne sits at 12.5 years the highest in the country. 

Ten years ago, Greater Melbourne was 7.1 years – this increase to 12.5 years has had a significant impact on the supply of established houses. 

Adding to the length of ownership, the latest REIV data for days on the market for Metro Melbourne is important. It takes just 28 days today to sell a house versus one year ago when it was 46 days. These two trends help you understand why it has been so hard to buy your new house. 

So what can you do to be a successful buyer?

Well, we think the acute stock shortage will continue for many years. 

Today, you must have everything going for you, and that’s where we come in – we source, research and prepare you for success. We access pre-market and off-market properties and conduct an intensive search – an area our clients generally don’t have enough time for in their busy schedules.

And, with selling days down to just 28 days, you must act decisively. When we locate the home that fits your needs, we ensure your preparedness to act decisively, with research and due diligence completed, pricing researched and finance approved in writing, 

Please email us at ela Property Advocates, Guy Angwin guyjohn@iinet.net.au or Geoff Briscoe geoffbriscoe@tpg.com.au, to search, assess and help you buy or sell your next home.

We recently came across a couple of client issues relating to property photography.

Scenario 1 

A client was perplexed that an agent selected the same photos for a new listing today that were used in the sale of their house five years ago! 

However, the five-year-old photos are the property of the vendor who paid for them, and the agency is not permitted to use them without the vendor’s approval. Old images may also contain furniture, artwork and other items which are private to the original vendor.

Scenario 2 

So your Authority expires, you are not happy with your agent, and you want to list with another agent. You have already paid the original agent for the photographic shoot used for the internet listing, brochures, print ads and signboard.

Are you entitled to take the pictures and use them with your new agent to save some money?

According to standard agency terms and conditions yes you are. If you and your new agency are happy with photography, then ask for the working proofs from your first agency and use them.

Before you sign that exclusive sales authority to sell your property be certain the listing agent understands that the photos are yours and you would like them back. 

Email us at ela Property Advocates, Guy Angwin guyjohn@iinet.net.au or Geoff Briscoe geoffbriscoe@tpg.com.au, to assist you with buying or selling a property.

With Australian borders currently closed to immigration, I have been looking at my crystal ball to see what impact this may have on the property market, as now one in three Australians were born overseas. As part of my research, I found the following Jack Derwin of KPMG Business Insider Australia makes the following observations: https://www.businessinsider.com.au/australia-international-border-closures-cost-migration-2020-8 

• KPMG has released a new analysis of the economic cost of Australia’s hard international border, calculating it would shave $117 billion from national GDP by the end of the decade
• By 2030, stalled migration would shrink Australia’s 2030 population by 1.1 million people and have cost every Australian the equivalent of $2,800. 
• KPMG economists model that if just 40,000 skilled migrants were allowed to enter, they would produce a near $5 billion boost.

Unfortunately, I don’t have an economics degree; however, it’s not hard to see these sort of numbers impacting the property market, probably more in the medium to long term than the short term. The reason I believe the impact on the short term will be less is because of the large number of buyers still out there from the pre-stage four who missed out on purchasing a property. 

However, here is a summary of what you CAN do and note, this article is general, and you should seek expert advice about your immigration circumstances.

Permanent Residents: 

• Are free to purchase property just like an Australian citizen. 

Temporary Residents:

• Is anyone residing in Australia on a visa that permits them to live here continuously for MORE than 12 months 
• Can own property but need to apply to the Foreign Investment Review Board (FIRB) to purchase real estate in Australia
• Can buy no more than one established dwelling, which must be used as their principal place of residence.
• Face very few restrictions for new dwellings subject to FIRB approval.

Non-residents/Foreign non-residents:

• Are non-citizens who do not ordinarily live in Australia. 
• Will normally be allowed to purchase new dwellings, but approval via the FIRB is generally required before each acquisition.
• There is no limit on the number of FIRB approved new dwellings.
• The Government’s policy is to channel foreign investment into new dwellings as this creates additional jobs and housing stock.

Buying real-estate at any time can be stressful but buying as a foreigner has its challenges. That’s where we can help you. 

Email us at ela Property Advocates Guy Angwin guyjohn@iinet.net.au or Geoff Briscoe geoffbriscoe@tpg.com.au, and we will help you secure your Australian property.