How to prepare your home for auction:

As daunting as it may be, preparing for auction can be a simple process, as long as you are prepared!

It is best to plan well in advance so you can put steps in place that you can action accordingly as the day approaches. For example, to plan for a Spring auction start clearing your home of clutter and rubbish in Winter. Arrange to have touch up painting done where required, plumbing leaks attended to, garden cleared and cut back and gutters cleaned out. Arrange to put excess furniture, toys, bikes and other items in storage so the home does not look cluttered and messy.

As you draw closer to the auction campaign arrange to have windows washed – inside and out, dust curtains and blinds, shampoo carpets and even polish floor boards where possible. Make sure also you have planted some colourful perennials in time for Spring to brighten up the garden!

Lastly, talk with your agent about open for inspection times. Make sure that they are times of the day that best show off your property and attributes. Night-time inspections are best left alone as the buyers won’t be able to see the natural light of your home or the sunny aspects that you may have come to enjoy!

Foreign Investment has long been a talking point amongst property buyers in the Australian Property Market. Many are against Chinese Nationals, for example, buying up masses of Aussie homes from under our feet, that is, until recently.

The Australian Tax Office has just unveiled new legislation which will require those who are considered foreign residents to pay a 10% withholding tax on properties worth more than $2m AUD. It follows recent changes targeting foreign buyers to now provide proof of residency and citizenship (which will be required when purchasing property in Sydney) while here in Melbourne higher stamp duty rates will apply.

Australian Banks are also clamping down on mortgage lending to foreign buyers requiring these customers to come up with larger deposits. It has been predicted though that the banks’ tougher stance on foreign property investors will hurt some local developers, many of whom are selling much of their finished product to overseas buyers. A decline in foreign investment could also pose further risk to the property market as, in particular, the Chinese market has accounted for a large percentage of growth (about a quarter) over a 10 year period within Australia.

Some say however that foreign investment within Australia is over stated and in actual fact the effect on house prices is only modest. A recent inquiry concluded that ultimately there is no solid evidence to support the idea that foreign investment has been driving up prices. Reliable data on the issue is scarce however it was concluded that foreign investment is, in the end, good for Australia. “Rather than causing price pressures, evidence shows that foreign investments may actually help keep prices lower by increasing supply” *

*Source: News Limited

Big crowds at auctions and open houses on Saturday, as 601 properties were auctioned this weekend. A clearance rate of 78 per cent was achieved, with 468 properties selling and 133 being passed in, 66 of those on a vendor bid. There were an additional 341 private sales reported.

In the three months prior to 30 June, the highest clearance rate of any Melbourne suburbs was recorded from East Melbourne (100 percent), followed by Fitzroy North (96 percent), Blackburn South and Caulfield South (95 per cent).

The Real Estate Insititute of Victoria released new data last week indicating that there are some opportunities for buyers to secure a property in exclusive suburbs at realtively affordable prices. The key is to compare prices and land sizes, as many suburbs have two bedroom homes that are priced well below the median house price of that suburb. For example, the median price in Elternwick in June was $1.57 million, however a two bedroom house median price in that suburb is $929,000.

Villa units and older style apartments in good locations continue to be in high demand from investors, downsizers and younger buyers. Yet, this weekend it was period houses with modern extensions which led the market action.

There are 618 auctions scheduled for the first weekend in August.

119 Droop Street, Footscray. Sold for $745,000
With plenty of backyard space to extend and make changes to the unusual layout of the bathroom located in the kitchen, this single-fronted two bedroom Victorian’s price guide of $640,000+ offered a great opportunity to buyers. Thirty people attended the auction which kicked off with a $640,000 vendor bid, and a couple immediately offered $650,000. Three other parties joined in, but it was the first couple who put the property on the market at $725,000, then shortly after, they made the winning bid of $745,000.

49 Princess Street, Kew. Sold for $2,250,000
The price range of high $1 millions to early $2 millions was spot on for this double-fronted Victorian property. Gathered inside the home to avoid the windy conditions, the would-be buyers made bold bids. The first bid of $1.7 million was met by the auctioneer’s vendor bid of $1.85 million. There were three bidders in the running by the time the price reached $2.12 million, and even a knockout bid of $19,000 helped boost the price up to the winning bid of $2,250,000.

10 Wallingford Street, Cheltenham. Sold for $976,000
This beautifully renovated 2-bedroom home offering exceptionally comfortable living in Cheltenham’s prized Golden Triangle attracted eight bidders to the Saturday morning auction. The property last changed hands in late 2007 for $567,000. The auction took off after the opening bid of $785,000,with fierce competition pushing the price higher than the vedor’s expectations. The hammer was finally brought down for $976,000.

A clearance rate of 74 per cent was achieved from 462 auctions this weekend, with 341 properties selling and 121 being passed in, 49 of those on a vendor bid. There were an additional 294 private sales reported.

As rare as it is for Melbourne auction numbers to fall below 500 on a non-holiday weekend, this appears to be the trough before a substantial lift in auction numbers.

Reservoir has recorded the highest number of auction sales in the year-to-date. Other suburbs in the top five are Craigieburn, Bentleigh East, Mount Waverley and Glen Waverley.

The coming weeks will see more vendors placing properties on the market, however we do not expect the spring market to have above average listing volumes.

Next weekend there is an expected 675 auctions scheduled.

42 Poplar Street, Caulfield South. Sold for $1,330,000
This three bedroom home with art deco features within a superb renovation were an attractive mix for potential buyers of this Caulfield South home. The first bid of $700,000 was quickly knocked back by the auctioneer, telling the man that he was about 20 years too late. A vendor bid of $1 million was then made, which opened up some quick bidding with $10,000 rises from multiple bidders. At $1.25 million, the property was announced on the market, and the seven bidders gradually dropped off around $1.3 million. The hammer fell when a young family placed the winning bid of $1.33 million, which was just above the quoted price of $1.2 million.

30 Odessa Street, St Kilda. Sold for $1,920,000
This four bedroom, two bathroom family home attracted around 30 people to this auction with the perfect setting of the sun peeking through the clouds. An opening bid of $1.6m started the auction and was met with a vendor bid of $1.625m. The first bidder going back against the vendor to $1.65m when a second bidder enters, the agent not accepting a $10k rise so he ups it to $20k. It was announced on the market at $1.71m. A third bidder joins in and goes head to head with the first bidder with $10k rises from $1.72 – $1.95m with is being sold for $1.95m.

692 High Street, Prahran. Sold for $1,760,000
The compelling indoor and outdoor dimensions of this gorgeous solid brick Edwardian residence creates an unexpectedly private and tranquil oasis only moments from shops, cafes, Orrong Park, Toorak station and trams. The auction commenced with a vendor bid of $1.4 million, and three bidders became involved. A half time break at $1.66 million saw the auctioneer chatting to the vendors, and it was not long after that when the three bedroom house was “on the market” at $1.68 million. Bidding slowed and the hammer was brought down for $1.72 million to an investor.

Buyers were out in large numbers on the final weekend of the financial year. A clearance rate of 79 per cent was achieved from 181 auctions this weekend, with 133 properties selling and 48 being passed in, 15 of those on a vendor bid. There were an additional 370 private sales reported.

Restrictions to negative gearing tax concessions on new properties may have seen us with a different result last Saturday, if they had have come into effect. As it happens investor activity is up and clearance rates have hit a new high for the year (79 per cent). This is the highest since June 2015 and shows a marked improvement in auction results. With the Australian Bureau of statistics reporting an increase on investor lending by 17.3 per cent over May (compared to April this year) investors certainly seem more confident post-election and the trend looks set to continue.

Lower levels of stock are creating strong competition at auction and private sales are experiencing shorter days on market (according to several outer suburban agents) over the last few weeks. In particular the Northern suburbs are booming where home owners and investors alike are lining up to get a foot in the door. Buyers in the West are also very active with suburbs such as Seddon, Footscray West and Yarraville leading the way.

45 Black Street, Brighton. Sold for $1,500,000
A single level 3 bedroom period home in highly sought after location close to Church Street shopping strip, Brighton Primary and leading private local schools attracted five bidders to the auction. The Art Deco house last changed hands in October 2014 for $998,000. Its value swelled by a staggering $520,000 under the hammer on Saturday. It sold to a local investor, who plans to rent the property out.

374 Richardson Street, Middle Park. Sold for $1,130,000
Located in one of Middle Park’s finest tree-lined streets this single fronted unrenovated brick Victorian house in triple ‘A’ location, is unliveable in its current condition and offers plenty of opportunity. A crowd of 80 watched on as the auctioneer opened with a vendor bid of $900k, followed by a man offering $10,000 more, before two other bidders joined in. The two bedroom plus study house, on approximately 144sq.m, was announced on the market at $1 million, and sold for $1.13 million. The final price was $130,000 more than the vendor would have been happy accepting.

180 Station Street, Port Melbourne. Sold for $1,402,000
Double fronted and free-standing, this inviting three bedroom period home is only a short walk to Bay Street, and easy to travel by nearby tram or bike track to the city. Six would-be buyers put their hands up to attempt to buy the property which had been owned by the one family for about 20 years. The auctioneer started with a vendor bid of $1.2 million, which prompted another man to join in with his first bid of $50k. It didn’t take long to be on the market at $1.28 million. The buyer, who currently rents a property only a few doors down, outbid the competition by paying $138,000 over the reserve.

Buyer’s Agents

Real Estate Agents are often struggling with lack of supply, demand is usually high and competition is always tough. Buyers are regularly being priced out of the market, particularly first home buyers, young families looking to upgrade and the Mum and Dad investors as well.

Buyer’s Agents in Victoria are seeing purchasers being out bid and out played and either losing or overpaying… not only at auction in other situations such as a sale by set date or an expression of interest campaign. This is a game best played by those who are experienced and who know the pitfalls of the industry, not to mention the rights of the purchaser and the obligations of the selling agent.

Increasingly Buyer’s Agents or “Buyer’s Advocates” are being engaged by educated buyers to navigate the minefields of the real estate industry on their behalf and to show them the real value of property, this of course in turn will save them money, time and stress. The difference between buying an average property and a good property can be a difference of tens or even hundreds of thousands of dollars.

With over 220,000 new dwellings constructed in 2015 throughout Australia (70,000 of those within Victoria) one would think that there would be plenty of choice for purchase and that supply is stable.  That certainly is the case if you are willing to live, invest or migrate to a rural town touted as Melbourne’s new suburban city. For the rest of us, residing in an established urban and thriving metropolis is still the dream.

Back to the minefield.  Where to buy? How much to spend? What is it worth? These are all fair questions and require educated responses.  A Buyer’s Agent is trained in locating, evaluating, assessing and negotiating, and it is the negotiating where they will save you far more than the fees that they charge.  A Buyer’s Agent must be licenced to work in the industry (with the Business Licence Authority).  The industry is heavily regulated and bound by a code of ethics.  Your Buyer’s Agent should know the processes of purchasing and the legalities associated with any purchase.  If unsure check to see if your Buyer’s Agent is a member of REBAA (Real Estate Buyers Agents Association of Australia) and/or a member of the REIV (Real Estate Institute of Victoria).

So when looking to make that next big purchase a Buyer’s Agent can be your best friend. Choose the right Buyer’s Agent and you could find yourself with your Saturdays back, sitting in your new home in one of Melbourne’s healthiest growth corridors (with change in your pocket) or with an investment portfolio that will make your friends green with envy.

South Yarra is a very popular suburb of Melbourne because of its simple access to the CBD and the many attractions which keep people visiting and residing in the area.  It located approximately 4 kilometres south east from the CBD and is only 5 square kilometres.

South Yarra backs onto the Royal Botanic Gardens and features Fawkner and Como parks, it also has the well-known shopping precinct on Chapel Street, which comprises of cafes, restaurants, an amazing nightlife and an abundance of clothing outlets – it really has everything you need.

The Como House is a historical home that has beautiful gardens that has been around since 1847, it is a tourist attraction today that you can attend a tour of and if you wish, you can hire it out for functions. It is owned by the National Trust of Australia.

HAMPTON – is located approximately 14 kilometres south east of Melbourne CBD with Beach Road being a very popular cycling route which follows the beautiful coastline all the way down to Portsea.

Along with the amazing bike trail that follows the coastline there are plenty of great swimming areas that feature picnic areas with barbeques, garden areas quite the perfect spot to relax on a warm afternoon.

You will find numerous shops on along Hampton Street, with shops such as restaurants, bistros, clothing and antique stores with many more to treat everybody.  There is another shopping strip, Bluff Road, however, smaller in comparison.

Buyers were out in large numbers on the final weekend of the financial year. A clearance rate of 73 per cent was achieved from 181 auctions this weekend, with 133 properties selling and 48 being passed in, 15 of those on a vendor bid. There were an additional 370 private sales reported.

Only a relatively small number of auctions were held in Melbourne this week, due to the combined impact of the school holidays, the federal election and winter conditions.

In June, a new record was set for a single weekend with a total of 993 auctions held – 40 more than the previous record. This capped off a solid end to the financial year for Melbourne’s auction market.

1/88 Queens Parade, Fitzroy North. Sold for $1,135,000

Perched at the edge of Edinburgh Gardens close to Clifton Hill and Carlton North, this modern, tri-level townhouse was hotley contested amongst four bidders. With 3 bedrooms and the rarity of three, possibly four parking spaces, this low maintenance home had a price guide of $880,000 to $950,000. Bidding began at $750,000 and quickly rose with more bidders joining in as it cleared it’s reserve of $980,000. The price sailed past the $1 million mark and the hammer was brought down at $1,135,000.

10 Spring Street, Coburg. Sold for $662,000

A one-bedroom house near the Merri Creek trails in Coburg attracted three bidders to the auction on Saturday. With polished hardwood floors throughout, a large bedroom and plenty of north facing backyard space, the property would be an attractive purchase for developers, investors or single buyers. The auctioneer fielded bids from three separate parties who helped push the price past the $590,000 reserve. The entry level home, on approximately 390 square metres of land, eventually sold for $72,000 above the reserve for $662,000.

62 Iluka Avenue, Aspendale. Sold for $713,000

Set on approximately 536sqm of land, the existing three bedroom 1970s property is in need of a major renovation. Located within walking distance of the beautiful foreshore, shops & train station or a stroll to either Aspendale or Aspendale Gardens Primary School this family-friendly location offers easy access to it all. Two bidders were willing to take on the opportunity that this property presents. But the price quickly rose past the quoted $575,000 to $630,000 and the hammer was brought down for $713,000.

The Melbourne auction market had an impressive return to form after the Queens Birthday weekend break. A clearance rate of 72 per cent was achieved from 893 auctions this weekend, with 533 properties selling and 247 being passed in, 98 of those on a vendor bid. There were an additional 275 private sales reported.

This weekend, the competition at auctions was particularly strong, with buyers fiercely bidding for quality properties that are currently in short supply in sought after areas.

Popular with buyers are the “move right in” properties that have been renovated or extended; or even properties that provide potential for redevelopment. Many of the auctions for these properties had three or more bidders, which is always a good indication that there are not enough properties available to meet the demand.

With such high auction volumes for late June, the next couple of weeks in Melbourne will be extremely interesting to watch. Such an influx of high auction numbers would provide strong opportunities for buyers. Melbourne will see one of the biggest ends to the financial year on record, with close to 2,000 auctions scheduled in the next two weeks.

Next weekend there will be an expected 920 auctions held in Melbourne ahead of the Victorian school holidays and the upcoming Federal Election.

658 Lygon Street, Carlton North. Sold for $880,000

This classic single-front Victorian on the edge of the city attracted many admirer’s before the auction. Multiple bidders were involved in the auction for this two large bedroom home with period-inspired bathroom complete with clawfoot bath, central lounge and updated kitchen/meals area. A vendor bid of $750,000 kicked off proceedings, and two parties immediately started trading $10,000 bids, then $5,000 bids until the price reached $800,000. A third bidder then joined in with $1,000 rises until they were eventually beaten by one of the first bidders, who acted on behalf of a contact via a phone.

2 Forrest Street, Yarraville. Sold for$1,224,000

A double-fronted Victorian in the heart of Yarraville with an asking price of $900,000+ attracted some hot competition at the Saturday auction. A vendor bid of $900,000 stirred the serious buyers to put their hands up, and three bidders were in the mix by the time the price reached $940,000. An investor went head to head with another fierce bidder with $5,000 increments helping the price reach the reserve of $1.09 million. But it didn’t stop there. Two new contenders attempted to win the keys, but it was an investor who secured the contract with a final bid of $500 more than his opponents, and $134,000 above the reserve.

5A James Crescent, Hampton. Sold for $1,271,000

Five bidders slogged it out to try and grab their own piece of the family friendly bayside suburb of Hampton. On offer was an enchanting three bedroom, 2 bathroom home fronting a quiet crescent with a high-gabled attic-style design …and located with a frontage on Thomas Street park with a sun-catching north-westerly aspect. With five bidders pushing the price of this weatherboard home up to $171,000 above the reserve, the property sold to a local buyer returning to the area after working overseas.