Weekly Market Update - 24th January 2018
By | 24th Jan 18

Each week our Frank Valentic provides his property market insights.

It has been a busy start to the year with our Buyer's Advocates receiving many enquiries from investors. It definitely looks like investors are back in the market this year as many may have been scared off last year with the possibility of interest rate rises and also APRA making it harder to lend but it looks like they have come back and are not on the fence anymore! This should be an interesting time in the sub $750,000 market as First Home Buyers have definitely increased in numbers as well so there should be some competition at this end of the market. 

 

It is a State Election year this year so there could be some changes with stamp duty concessions to First Home Buyers if there is a new Government which is something that may affect the property market. First Home Buyers have come back now in great numbers but if the stamp duty concessions are changed, that could influence the apartment market where they have been more active. This market has picked up due to First Home Buyer activity increasing from around 12% to 18% in the last six months of last year. There is always talk about negative gearing but we won't see a Federal election until next year and there could be changes then that could affect investors.


Foreign buyers love Melbourne real estate but the increased taxes and stamp duty that were implemented over the last year or so have had an effect, slowing that part of the market down. They are still buying in Melbourne, though the numbers have dropped off, particularly now that Australian banks won't lend to foreign investors and foreign investors have been hit with higher taxes and stamp duty rates.

 

We have our first Investor Club meeting of 2018 on the 15th of February. It is important to understand your financial position and options when purchasing a home or investment property. We will have a panel of finance experts answering your questions and providing crucial information about strategy and process. You will also hear from me on current market conditions and what’s to come in 2018 and as always there will be an experienced client talking about how they have built their portfolio and answering your questions.  

 

Please don’t hesitate to check out our website for more information about our popular Buyer’s Advocate, Sellers Advocate, Owner’s Corporation and Property Management services and our latest newsletters as well as our future Group Block opportunities. Our opportunities are a block of two bedroom art deco apartments (without parking) in Duke Street, St Kilda for $485,000-$535,000 each that we have negotiated after auction with a developer and a block of 4 one bedroom and 2 two bedroom villa units in Ballarat, each with a car space (approximately $150,000 each for the one bedroom units and approximately $200,000 each for the two bedroom units) as well as our two bedroom villa units in St Albans (approximately $275,000 each). Open for inspection Saturday 27th January 11:00am-11:30am.  Please register your interest by contacting mfairbank@advantageproperty.com.au