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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 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

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 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.

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.