Hi Guys,
I write a newsletter every Monday for my clients but figured it may be of interest to anyone in Melbourne or looking to buy here.
Sorry about the infolio branding - just ignore it the content is still pretty good:
I write a newsletter every Monday for my clients but figured it may be of interest to anyone in Melbourne or looking to buy here.
Sorry about the infolio branding - just ignore it the content is still pretty good:
$428.65mil worth of real estate transacted last week; an increase in volume by $10.89mil from the week prior. Results from the 432 auctions equated to $182.94mil worth of property with the clearance rate lifting to 58% from 55% for the period before. The coming warmer months should lift auction activity however Enzo Raimondo, CEO of the REIV, has anticipated the volume of property being offered could be lower than in recent years as buyers and sellers continue to make conservative decisions.
Last week, Westpac-MI's Consumer Confidence Index for August was released with a surprising result. The index still fell by 2.5% to 96.6 despite multiple sources of good economic news such as:
• Australia's strong dollar ( at USD$1.05),
• low unemployment (5.2%),
• share market gains (+2.9%),
• $1.9bil of government fiscal stimulation,
• and positive news from the EU;
This index level indicates that consumers are still more pesimistic than optimistic. In light of this information, John E, CEO, Residex, believes "...the current market is ripe and offering opportunity, provided you have done your research and be selective in the many opportunities available.".
There is more good news for investors as the average rent in Melbourne has risen by 9.72% over the last 12 months.
On Saturday infolio participated in several auctions. One of which was for an updated, Edwardian weatherboard house. Infolio was up against 5 other parties. With a set limit of $1.216mil our bidding knocked out most of the competition, however the property sold out of reach for $1.253mil; a good result for the vendor. When property evokes a buyer's emotional side the result can exceed expectations.
Same day: infolio secured a fully renovated Californian Bungalow. In this instance the vendor had previously rejected our pre-auction offer. They wanted to sell for more on the day of auction. infolio skillfully intimidated the other bidders and secured the property for less than our initial offer. A fantastic result for our buyer.
When it comes to pre-auction offers, it's important to note, if the seller rejects your initial offer in hope for a better price, the selling agent must change all of the quotes on any marketing and advertising so it is not below the amount the property is expected to sell for. Changing the advertised price to a higher amount may damage the selling agent's marketing campaign. A strong bargaining tool can be mentioning the relevant legislation so the vendor considers your pre-auction offer more seriously.