Is your finance REALLY approved?
In late 2014 our prudential regulator warned banks that the percentage of investment loans needed to decrease. Months later, APRA instigated some tough and noticeable changes and investment lending scrutiny began. The consumer outcries at the time were mostly in relation to the new differential in interest rates. Investment mortgage rates had sat in line…
The importance of gauging stock levels
Property prices are impacted by many things, but the simplest of all drivers is supply and demand. Our stock levels have been particularly high so far for 2018 when compared to the stock levels of previous years and this could be attributed to several things; vendors capitalising on first home buyer demand, lending scrutiny precluding…
Packing, moving, unpacking… what we do to avoid it
An eye roll or a sigh usually accompanies the thought of packing up and moving house. It’s disruptive on every level and while some people do it easier than others, it still requires time and energy – or money. Even when the task is outsourced the need to sort, cull and direct box handlers remains…
Ballarat isn’t just about rental yield….
Ballarat is experiencing some unusual demand at present. Capital growth has been stronger than typical growth for the region and while heady double digit growth is not sustainable long term, there are some key reasons why the region is performing so well right now. Firstly – affordability. Melburnian buyers (and even some interstate capital city buyers) are…
Ballarat’s fast moving market…
We have been active in Ballarat for quite a few years now. My first reconnaissance voyage was in 2010 and my first acquisition for a client was back in 2011. In this time the market has exhibited higher rental yields than Melbourne and Geelong and the capital growth could be fairly described as moderated (when compared to…
How long should an off-market negotiation take?
This is a common question, particularly when a private sale negotiation relates to an off-market property (where a vendor is selling without taking the property to the open market, but rather, a select buyer or handful of buyers). Every buyer likes to know that they have paid a fair price for a property (or better…
Does bidding style make a difference?
There are two camps when this question is posed. Some vehemently believe that it boils down to the top end budget of the buyer, while others feel that a competing buyer’s bids can be influenced by emotion, perception and nerves. I have seen both apply. There are those buyers who vaguely plan for auction and arrive with the…
Days on Market and Days IN the Market
We often hear the term ‘Days on Market.’ This is one measure that can be effectively used across a data set to measure the health of a property market. Melbourne is a little bit more unique than other markets because we sell via auction method for a significant percentage of property sales. Unless a Vendor…
The Importance of Floor Plans
There are many well-known elements of a property that form part of an organized buyer’s criteria list. As buyer’s advocates we often tell our clients that it is what we say no to that makes the most significant difference to the success of the purchase, not just what we say yes to. Some would know it…
‘Subject to Finance’ Clauses
This is a term I hear more frequently used these days. With lender scrutiny at the highest levels I’ve seen since the GFC period, many buyers, bankers and brokers are feeling anxious about potential finance issues. The inclusion of the clause however is often detrimental to the success of the purchase. So when should it be used?…
Recognising when supply and demand imbalance affects sentiment….
Market sentiment is a powerful force indeed. Reports in the media of lower auction clearance rates and slight drops on the median price of houses could give any nervous investor reason to be cautious. December figures for our two biggest capital cities certainly caught reader’s attention, but seasonality wasn’t broadly discussed. And it should have been. In…
Holiday House Season
Every January (and without fail) I field questions from new and past clients about my thoughts on their holiday house acquisition ideas. And every year I learn more about why this is such a well-trodden path for so many. The reasons are always emotional and never pragmatic, ever. But when is it OK for emotion to rule?…
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