Which cities will outperform in 2025?
It’s that time of year again. Economists, banks and commentators start sharing their predictions for 2025’s capital growth around the nation. Plenty of us do it, but few get it right. Today’s Sunday blog focuses on the predictions for 2024. Who got it right? Who got it wrong, and why? Firstly, let’s consider the annualised…
Finding a scarce product
Back in 2019, I blogged about a lovely couple who were struggling to find a well-located, nicely renovated, four-bedroom home in Yarraville. They said they’d been searching for many months and the right house just hadn’t come along. I explained to them, “Many inner-ring suburbs in Melbourne, particularly in the inner-north and inner-west are problematic for people…
Houses vs units: where do villa units fit?
Many investors and homebuyers grapple with this question. They worry about the capital growth prospects of a townhouse versus a house, and homebuyers ask themselves whether they will outgrow a townhouse. It’s not that black and white though. Well-located, beautifully proportioned townhouses and villa units can be enticing for tenants and home-buyers alike. Many investors…
The cost of social proof
Have you ever wondered why a property can sit on the market for weeks, and then all of a sudden when you submit an offer, there is suddenly another offer? Many buyers believe that the agent is bluffing. Occasionally they are, but it’s rarer than people imagine. In the majority of cases, the agent does have another buyer. Their…
Why do some properties sell for a loss?
I recall an auction quite a few years ago, back in 2016. We were bidding on a beautifully converted two bedroom, two bathroom warehouse apartment with enclosed balcony in Kensington. We secured the property for our client for $631,000. Just 3km from CBD and conveniently located near shops, station and arterials were just some of…
Why is lending policy so important?
When it comes to property selection, it’s often the things we reject that help formulate a good investment decision. Aside from being mindful of tenant appeal and owner-occupier appeal of a property, we must always be mindful of lender appeal. Since the days of pandemic lockdowns, the quest for inner-suburb living has revitalised itself. We often…
Five tips for sellers
We work with buyers every single day. From our position on the other side of the coin, we see a lot of vendor decisions that make for a strong campaign. But often we see vendors get things wrong too. Here are five insider tips to help vendors navigate the important task of selling their property.…
Why didn’t the RBA cut interest rates last week?
There has been plenty of speculation around interest rate cuts. What will trigger a cut? When will they happen? What will that cut do to the housing market? And what metrics can we rely on as a predictor of rate movements? The news from America gave a few Australians a glimmer of hope about interest…
Deposit bonds: good or bad?
We are often asked about deposit bonds, especially when agents or vendors reject a request from a buyer to use one. What are they? Is there a risk? And when are they particularly useful? Today’s blog answers all of these questions. A deposit bond can be used effectively when a purchaser has the means to…
What will trigger Melbourne’s recovery?
Melbourne has faced some tough headwinds since the pandemic. The tough lockdowns saw strong internal migration, both from our capital city to other states, and from our city to our local regions. The chart below shows Melbourne’s arrivals and departures during three data collection dates during the COVID pandemic. The Census chart below shows the…
Renovating an investment property
Investor appetites for improvements and renovations have waned in recent years. This is due to several reasons; expensive materials and trades, a builder shortage, and challenges associated with rental laws and access to the property. Increased compliance requirements and rental reforms are forcing many investors to tackle a renovation though. Ideally, we prefer to select…
Micro Gluts
Melbourne’s sale volumes have increased markedly. Unlike several other capital cities, buyer are spoilt for choice right now. The particular categories of buyers who are currently facing optimal buying conditions are the first homebuyers, imminent renovators, and down-sizers. This is due to the sheer numbers of exiting investors who are selling their investment properties. In…
REGISTER TO OUR NEWSLETTER
INFORMATION
CONTACT US
1A/58 ANDERSON STREET,
YARRAVILLE VIC 3013
0422 638 362
03 7000 6026
CATE@CATEBAKOS.COM.AU