Are you really insured?
Most property owners pay their insurance premiums each year, in good faith that they have appropriate insurance cover should anything go wrong. Yet, 83% of Australians are under-insured on their properties. Two years ago, my chat with Marty Sadlier from MCG Quantity Surveyors was eye-opening. In fact, it changed my view on property insurance forever.…
How have our search terms changed?
A recent keyword search study by REA identified some growing and emerging trends. From brick dwellings to apartment balconies, some are anticipated yet some are surprising. It is suggested that the lockdown experience from COVID has shaped some of our new preferences while other demographic drivers such as our aging population are clear initiators. The…
But hasn’t it already peaked?
I get asked this question often when I suggest a suitable area for an investment brief. Too many prospective investors anticipate that an exciting hotspot will yield them a phenomenal amount of growth in a short timeframe, yet property investment should always be a long game. Just because a suburb exhibited boom conditions doesn’t mean…
Why MEDIAN data is not reliable
We often categorise suburb performance by utilising median price movement, but this is such a flawed approach. There are multiple reasons why this measure is unreliable. Firstly, the median data point is only the mid-point of any given data set. If we apply only median to average values, we risk a skewed bell curve completely.…
Moving to the Country
This isn’t a common brief, but it happens for us more regularly than people would imagine. Every now and then, a client contacts us and shares that they’ve been contemplating a move out of the city, and for some it may be rural living, acreage or farming. This is indeed a considerable change. Not only…
The six biggest mistakes investors make in transitioning market
Investors like to keep an ear to the ground when it comes to market performance, but in a transitioning market, buyers and investors sometimes make some terrible mistakes. We currently find ourselves in a transitioning market now, after 2022’s downturn which was triggered by aggressive interest rate rises. These rises were initiated over consecutive months…
Navigating underquoting
Underquoting… the topic pops up every time a market turns up. However, it generally exists in Melbourne for auction campaigns and underquoting frustrates buyers often. This year, calls to Consumer Affairs Victoria have increased on past years. This is unsurprising, because our city’s capital growth is now in positive territory, as opposed to last year’s…
Knowing your agent
As the saying goes, knowledge is power. We often talk about the need for buyers to familiarise themselves with market values in their search area, but knowing the agents in their area is important too. When it comes to private sales and negotiating prior to auction, agents can determine the negotiation rules. From “best and…
Have increased interest rates pushed up rents?
We often hear suggestions that rents have increased as a direct result of interest rate increases. It isn’t that simple though, and anyone who owns an investment property will know that they can’t just pass on rising costs to the tenant when they feel like it. However, this CoreLogic chart shows a correlation between the…
Walk Score
We use plenty of portals, (mostly paid subscriptions) when conducting our property research and due diligence. One free portal is particularly handy when focusing on amenity, and that is walk score. While there are many more important elements that we must take into consideration also, the ‘walkability’ of an address, in tandem with streetscape and…
Rent caps… Victoria’s newest potential challenge
What would shoe shop owners do if the government walked into their store and said, “Whatever environmental and financial pressures you face, you cannot increase the cost of this pair of shoes for two years?” And what would share investors do if the government ran a pencil over their share portfolio and said “whatever the…
Where are the hotspots?
I get this question often. In fact, last night I was at a dear friend’s 50th birthday party and one of her other guests asked me “Cate, you’re in property. What are your hotspots? Where should I buy this year?”. I corrected him immediately and explained that I don’t do hotspots. I reminded him that…
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