Monthly Property Update - March 2017
By | 10th Mar 17

The Melbourne market continues its really solid performance with some record results. There was a massive result in St Albans that saw a sale price of $1,810,000 for a property within a Development Zoning, creating a new record by achieving $610,000 over reserve. It is not uncommon for us to attend auctions and see properties sell for $300,000 to $400,000 over reserve, which we have seen on many occasions this year. There was a property on St Kilda Road, Melbourne that sold for $305,000 or 34% above reserve recently and well above the last sales in the block.  

There is a lot of talk about First Home Buyers and how hard it is for them to get into the market place at the moment. The First Home Buyer numbers are down to a big low, only 15% of the market. This is well down compared to 29% at peak of the market in 2010. The long term average of First Home Buyers is around 21%, showing that rising prices are making it harder and harder to get into the market. The State government has decided to increase the stamp duty concessions for First Home Buyers from 50% to no stamp duty payable under $600,000 and a discount for purchases under $750,000, click here to read more. If a First Home Buyer was buying a property for $600,000, at the moment they would pay $15,000 in stamp duty and previously it was $30,000 (without the 50% reduction they have been getting). It will now be zero, which will be a great bonus to help these first home buyers with their deposit and get into the market place.

It is great news, but the biggest problem for First Home Buyers is access to that first deposit to allow them to buy a property without paying Lender’s Mortgage Insurance. They will need 25% of the property’s value, which is around $150,000 on a $600,000 purchase. First Home Buyers should get access to their superannuation like in New Zealand, with certain restrictions to paying it back and the amount they can access. This would assist them in getting in to the market and achieving the great Australian dream of buying their own property.

Please visit our website www.advantageproperty.com.au or contact us on 1300 697 356 regarding our popular Buyer’s Advocate, Vendor Advocacy, Property Management, Owner’s Corporation services and Group Block Purchases.