Advantage Blog

Advantage Investor's Club Meeting - 22nd May

Mon, 14 May 2012 04:24:00 GMT

We look forward to you joining us on Tuesday 22^nd May at our next Advantage Investor’s Club meeting. Join liked minded property investors in a relaxed atmosphere and increase your property knowledge by listening to the following speakers:-

Jacob Galea, who is the Director of GCORP Consulting and has assisted hundreds of people to building wealth, avoid procrastinating and move forward with their lives.
Damian Collins from Momentum Wealth will discuss the Perth property market and what opportunities exist there. With Perth being the second highest growing city behind Melbourne, this is a great opportunity if you have considered diversifying your portfolio.
Frank Valentic, Director of Advantage Property Consulting, will look at the current state of the Melbourne Market and predictions for hot spots in the year ahead.
Alan Mackinkovic is a successful property investor who will talk about his experiences and building his million dollar plus portfolio.

The evening runs from 6.30 – 8.30pm at St Kilda Road Towers, Level 1, 1 Queens Road, Melbourne. (Opposite Albert Park Lake and adjacent to Kings Way as per map below). Bookings are essential as light refreshments will be provided.

To book your seat either reply to this email or click on the following booking link:- http://www.advantageproperty.com.au/BookingRetrieve.aspx?ID=25018 as seats are limited in new improved venue.

Weekend Wrap Up - Sunday 22nd April 2012

Thu, 26 Apr 2012 01:47:00 GMT

The auction clearance rate recorded last week was 62 per cent, compared with 54 per cent last weekend. There were 487 auctions reported to the REIV with 301 selling and 186 being passed in, of those 116 were passed in on a vendors bid. Next weekend around 580 auctions are expected and auction numbers for the next 4 weekends are broadly in line with the same period in 2011, confirming that underlying fundamentals have not changed substantially. The increase in the clearance rate this week is a positive sign that confidence in the residential market may be starting to improve. If the next interest rate movement is a reduction, as is speculated, and that is actually passed on by the retail banks to borrowers, it may further increase activity over winter.

We had another busy weekend and provide the following auction results for our clients :-

1/26 Ruskin Street, Elwood - Passed in at $535,000 on a Vendor bid, reserve $587,500, crowd of around 20 people. Purchased for $400,000 only 3 years ago. Vendor Advocacy sale.

11 Canterbury Place, Brighton - Passed in at $1,500,000 on a Vendor bid with a reserve of $1,675,000, crowd of around 20 people. Land of 480sqm. Vendor Advocacy sale.

1 Sargon Grove, Brighton - 1 bidder with a crowd of 45. Passed in at $1,120,000, and sold for $1,200,000 afterwards. Vendor Advocacy Sale.

G7/35 Ormond Rd, Elwood - Crowd of 15-20 people, 2 bidders. Quoted $460,000-$500,000. Purchased for $502,000 for a Buyer Advocacy client.

13 Konrad St, Bentleigh East – Quoted $580,000 -$640,000 with a reserve of $670,000. Crowd of 100, 4 bidders, sold for $704,000. We were one of the under bidders.

7 Apperley St, Fitzroy North - Crowd of 80, 3 bidders. Purchased for $2,000,000 for a client. Unique house with Heritage Overlay, 554 m2 land, 6 bedrooms, 2 bathrooms.

10 Fleming Gv Pascoe Vale - Quoted $630,000 - $680,000, sold $652,500. Crowd of 12 and 2 bidders. 3 bedroom plus study, 330m2 land. We were under bidders.

Other auction results from last weekend include:

71 Alma Rd, St Kilda - Quoted $970,000 - $1,040,000. Sold for $1,225,00, 5 bidders.

7/81 St Georges Rd, Elsternwick - 1 bidder, passed in for $470,000 and sold for $490,000 afterwards.

8/46 Foam St, Elwood - $495,000 vendor bid, reserve $545,000, crowd of 20.

Property Management

We had a busy weekend of leasing across Melbourne. The Melbourne vacancy rate is now sitting at 2.4% which has doubled in recent times, therefore properties in general are taking twice as long to lease. In this market it is important that properties are priced correctly and presented well.

We had a stand out resuls with $650pw for a 2 bedroom townhouse-style apartment on Beach Avenue Elwood and $340pw for a 1 bedroom apartment on Alma Road, St Kilda East.

Until next week, happy property investing!

Frank Valentic

Royal Children's Hospital Fundraiser

Thu, 15 Mar 2012 02:17:00 GMT

Preparations are underway for our annual fundraiser which is being held on Friday 30th March at the Elwood Sailing Club. We have an action packed night planned between 5:30 - 8:30 for families and then Friday Night Social Drinks from 8:30 onwards.

With a visit from the Easter Bunny, and Easter egg hunt, African Drumming Company, showbags, face painting, massages, an Easter Photo Booth, pony rides the kids will be kept busy. Carnival food will be available on the night as well as beer, wine and champagne for the grown ups.

For further inforamation, click on the image below:-

Frank Valentic on Melbourne Property TV

Wed, 14 Mar 2012 04:19:00 GMT

Frank Valentic was interviewed for Melbourne Property TV discussing the Elwood market. To view this episode, please click on the link below. Now in it's third season, MPTV continues to gain more viewers and has also been nominated for a Logie Award.

MPTV Season 3, Episode 2
http://vimeo.com/38433470

About this video:
"This week, we take a look at the highly coveted bayside suburb of ELWOOD. On the Property Panel, Des is joined by Robert Larocca (REIV), Simon Libbis (Property Law Specialist) and Norman Mermelstein (Property Investment Services) discuss the ins and outs of Owners Corporations.

Congratulations to Thomas Georgiou

Wed, 14 Mar 2012 02:28:00 GMT

Over the past years, Thomas has become a valuable member of our team and assisted many clients with their property needs. We are now proud to annouce the appointment of Thomas Georgiou as an Associate Partner of Advantage Property Consulting. Congratulations Thomas on all your hard work and we know you will continue to provide outstanding results for your clients and continue to be a valuable asset to our company.

How to Spot a Property Lemon

Mon, 06 Feb 2012 03:09:00 GMT

A property with defects can be an investor's nightmare, not to mention a money pit. Here's how to minimise your risk of buying a lemon. You might think building faults are confined to structures like that condemned old hovel at the end of the road that's about to fall down. If so, you might want to think again.

Read More

Choice Capital Summer Newsletter Features Thomas Georgio

Tue, 24 Jan 2012 05:32:00 GMT

The latest Choice Capital newsletter features an article on Buyer's Agents and Thomas Georgiou providing insights into "The Property Market - looking back and looking ahead". Click here to download this informative newsletter.

December Staff Member of the Month

Tue, 17 Jan 2012 03:33:00 GMT

Each month we reward a staff member for their efforts and we are proud to award Natasha Greene as our Staff Member of the Month award for December 2011. Congratulations Natasha and keep up the great work!

Interest Rate Cut - 6th December

Tue, 06 Dec 2011 22:41:00 GMT

The RBA decided to reduce rates by 25 basis points, which is the second consecutive rate cut and takes the offical rate to 4.25%. We see this as good news for the property sector and expect buyers to start gaining confidence back in the market. The rate will also reduce the average Australian mortgage by around $60 per month.

To read the full statement from the Reserve Bank, click here.

Advantage Investor's Club Meeting for November 2011

Fri, 11 Nov 2011 06:04:00 GMT

Our last meeting will be held on Tuesday 15th November from 6.30 to 8.30 at the St Kilda Town Hall and we expect a great turn out for our final meeting for 2011.

It's been a tough year for many investors, but we applaude everyone who has continued to attend these meetings to learn more about property investing and increase their knowledge base.

We confirm the following presentations :-

Kharim Ghobrial regarding the new energy efficiency ratings required next year for all property for sale and lease.
Andrew Gooding reviewing the proposed changes to laws regarding self-managed super funds.
Frank Valentic presenting his Valentic Report and looking ahead to the state of our market and predictions for 2012.

We also remind you that we continue to provide free Seminars designed for people wanting to purchase their first investment property or home, or for people wanting to learn more about the Melbourne property market. If you know of anyone who would benefit from these sessions, please recommend they visit our website at http://www.advantageproperty.com.au/seminar.htm.

Great Rental Result For "The Block" Purchase

Wed, 02 Nov 2011 03:45:00 GMT

Our Property Management team achieved a great result for our landlord that purchased Polly and Waz’s property on “The Block” for only $855,000. We achieved a rental of $995 per week fully furnished, much higher than the estimate of $700 per week from local Richmond agents. With around $40,000 in the building, chattel and furniture depreciation, our client will achieve a whopping 9.2% return. We are delighted that we are the first to lease out “The Block” as our proactive approach saw us advertising the property and conducting inspections before any other agents.

The Valentic Report - October 2011

Fri, 21 Oct 2011 06:08:00 GMT

The last week has been a busy one at Advantage, following on from the last month where we had noticed a marked increase in enquiry and consumer sentiment, as most people feel that interest rates have peaked and are on the way down. With nearly all banks reducing their fixed rates to approximately 6.3%, we would expect to see the standard variable rate drop below that in the next 12 months or so.

Enzo Raimondo, CEO of the REIV said a clearance rate of 54 per cent has been recorded from this weekend’s auctions compared to 51 per cent last weekend and 66 per cent this weekend last year. The REIV's September quarter property update shows that the median price of homes sold at private sale has dropped by 1 per cent, from $485,000 to $480,000 since the June quarter. This is a better result than for homes sold at auction whose median price dropped by 5.1 per cent from $725,750 to $690,500. This is reflection that there is a greater demand for more affordable homes. There were a total of 576 auctions reported of which 313 sold and 263 were passed in, 175 of those on a vendors bid. Next weekend auction numbers increase again with 880 homes expected to be offered for sale. (Source REIV Website)

It is definitely a buyer’s market with market conditions stacked in favour of the buyer for 18 months or so. A great example was our purchase of a renovated 3 bedroom house with a pool at 25 Charles St Prahran for only $1.410 million ($95,000 under reserve and our client’s maximum budget and I was the only bidder in a crowd of around 30). Four years ago the vendor fought it out against seven other bidders in a crowd of 200, paying $1.45 million, $300,000 above reserve. As I ask my clients, when do you want to be buying this property, in the heated market of 2007 or when the scales have now tipped in your favour today?

Another example of the excellent buying opportunities at present was our conjunctional Vendor Advocacy sale of 202 Inkerman Street, St Kilda, a fully renovated 3 bedroom, 2 bathroom Edwardian with a double storey extension. It passed in on a vendor's bid of $1 million (reserve was $1.060 million) and a buyer would have paid 10-15% more pre-Anzac day last year.

The REIV released their September quarter median prices which showed that the median house and unit prices had decreased by 2.8% and 2.3% respectively. Though, despite all the global uncertainty, the yearly figures show that the median house price increased by 1.4% and the median unit price decreased by 0.8%. Many of Melbourne’s inner suburbs decreased by 5-10% to create much better buying opportunities, while over 20 more affordable middle to outer Melbourne Metropolitan suburbs had the strongest growth in the sub $600,000 price range.

Until next week...happy property investing.

Frank Valentic,

Managing Director

Advantage Team at the 2011 REIV Awards for Excellence

Fri, 21 Oct 2011 06:03:00 GMT

We are proud to have been finalists again this year in the Real Estate of Victoria Awards for Excellence. We were nominated for Buyer's Agent of the Year - Frank Valentic and Agency of the Year (Medium). This is the sixth year in a row that we have been nominated for Agency of the Year and have won this award on two occasions, which is testament to the team.

Everyone had a great night of dancing and entertainment at the Crown Palladium in what is know as the Real Estate's version of "The Brownlow".

Melbourne’s Apartment Blocks Boast Sculptural Design

Fri, 30 Sep 2011 03:46:00 GMT

Melbourne’s cityscape is changing rapidly, and according to renowned architect Karl Fender architecture does have a lot to do with it.

After the completion of Federation Square, it was clear that Melbourne is unafraid to try something a little bit different, which is precisely the element being introduced to the design of many current apartment building developments.

The completed unit blocks one can observe along St Kilda Road are making a sculptural statement, initiating a dialogue with their urban surroundings.

”Apartment blocks are big buildings in the environment – why can’t they be urban sculptures, interesting, that provoke thought and questions – a sculptural presence?” Mr Fender said.

Besides their aesthetic appeal, the developments include a number of serviced apartments which are being retained as an investment.

The deceptive glass-fronted design hides enclosed terraces which serve as winter gardens beneath the glossy façade. The louvers open horizontally to reveal an outdoor terrace on a sunny day. The glass itself changes colour depending on the light, giving the design fluidity.

The luxury 250 to 300-square-metre apartments with glorious views will set you back around $3.3 million.

Green Star Ratings Add Premiums

Fri, 30 Sep 2011 03:47:00 GMT

According to recent industry research, buildings with a Green Star rating are delivering a 12 per cent ‘green premium’ in value and a 5 per cent premium in rent.

The Australian Property Institute and Property Funds Association’s ‘Building Better Returns’ report looked into the financial performance of green office buildings in Australia and analysed a portfolio representing 51 per cent of the total office market floor area in Sydney and Canberra, which included 206 NABERS-rated office buildings and 23 Green Star-rated buildings.

The research data indicated a ‘green premium’ for both Green Star-rated and NABERS Energy offices, with 5 star NABERS Energy buildings attracting a 9 per cent premium in value. In addition, green star-rated buildings also showed other benefits, such as reduced vacancies and outgoings.

“A range of international reports have confirmed that green buildings positively impact everything from operational costs to return on investment, and from reputational equity to productivity. This research finds both Green Star and NABERS Energy buildings deliver improved gross rents and values,” Chief Executive of the Green Building Council of Australia (GBCA), Romilly Madew said.