Weekly market update - June 22nd 2017
By | 22nd Jun 17

Melbourne’s clearance rate was 74% from 842 auctions and as I predicted there will be some opportunities coming up in the Melbourne market with buyers and the market getting adjusted to the new quoting laws that came in on the 1st of May. Many buyers are still adding a 10 to 15 percent figure on top of the quote range, whereas many quote ranges are a lot more accurate now. We turned up at an auction in Albion and we expected it would sell well above our budget and we were surprised and delighted that we bought the house for $746,000. It has two incomes as it has a one bedroom unit at the back which is together returning $520 per week which is a 4 percent return and double the Melbourne average of 2% return for houses. 

With Melbourne’s prices rising so quickly, many home owners are staying put and are not moving as often, as home owners used to sell every 7 years but now the average is approximately 14 years. Many home owners are extending their homes and staying where they are because of the rising costs of moving, including stamp duty fees of around 5 percent and selling agent fees of around 3 percent. I was recently quoted in Hayley Goddard’s article regarding upsizing families, where we help many upsizing families get into the market place. This is generally due to having another child or they are moving because of schools. Click here to read our comments.

I can’t believe First Home Buyers are waiting for the First Home Owner’s stamp duty concession on the 1st of July. There will be more First Home Buyers entering the market and there will be more competition at auction’s which will push the prices upwards. They will pay more than what they could buy for currently and still get a 50% discount on stamp duty. I think these First Home Buyers are making a massive mistake as they could pick up apartments at great prices as they have never been better value for money over the last 5 years. The market always goes up at least 10 to 30 percent in terms of First Home Buyers numbers when this happens.

Please don’t hesitate to visit our website www.advantageproperty.com.au or contact us regarding our popular Buyer’s Advocate, Vendor Advocacy, Property Management, Owner’s Corporation services and Group Block Purchases, including our future townhouse opportunity in Dandenong (approximately $275,000-$295,000 each and potential return of around $320 per week with a small renovation) and our future apartment opportunity in Kew in a boutique block of 6 which we are taking registrations of interest for approximately $590,000 each for large 9-10 square two bedroom apartments.