ALBERT PARK, 94 Mills St: Jack's back! John Bongiorno (Marshall White), passed in $2,420,000, bought after for an undisclosed amount.

Elwood 20A Docker – Justin Follett - Sold before Auction – in fact in week one of the campaign. Quote $2,000,000 plus – bought for $2,500,000- interstate buyer.

Elwood 16 Wave – Chisholm and Gamon and Pride Real Estate. On the market since Christmas and sold this week. Good home, just had to get the price right. Actually even when its sold they still can’t get the price right with one agent claiming in writing it was bought for $2,150,000 and the other in writing it was bought for $2,300,000. Mmmmmm may be there were two buyers!

St Kilda East – 7 Godfrey – David Seeber of Buxton – Mal went through that looking at it as an investment home. Sold last year in May for just over $900,000. Didn’t rate well at all  – no parking, south facing rear, below par floor plan. Today it was bought at auction for just under a $1,050,000. Who says in property you need to have wisdom – give me luck any day over wisdom – and to be fair, give me good agent work as well on the resale.

ALBERT PARK, 59 Reed St: Three, two, one - sold! Michael Szulc (Cayzer) sells after auction for $1,370,000, 1 bidder

Matthew Young, Buxton (St Kilda): “The weekend of the 21^st and 28^th of May are looking to be Super Saturdays.

Like many auctions this weekend, a lot of standing around, not doing much. MALVERN EAST, 9 Lewes Drive: Passed-in at $2,500,000 with two bidders. Anthony Grimwade (RT Edgar)

At 6pm on Saturday the James Clearance rate for $M+ was 57% on the 30 auctions we attended. That was well down on last week’s cameo of excitement, but understandable giving the quality change between this week and last week at the Top End.

Bidderman, our demand indicator, was 1.5 bidders per auction. However the quality of the offerings was one of the lowest this year.

While there were a few volcanoes (4 or more bidders), what was more interesting was that 1 in 3 homes were ducks meaning they didn’t get a bid a all. We think that was a confirmation of the market reaction to this weekend’s lack of Top End quality.

In fact, only 1 in 5 of $M+ homes monitored this weekend sold under the hammer.  The rest sold before or soon after – or didn’t sell at all. That’s an Under the Hammer Clearance Rate of 20%.

What that means is that in this current market buyers need a lot more than just a ‘hand up in the air and hope’ strategy to buy homes well.

Market Summary:

There were plenty of auctions at the lower levels, e.g. at or around a million dollars, but many lacked any WOW factor.

A number of the key selling agents were off this weekend on holidays and, as with many buyers, they seem to have turned their attention to pursuits other than buying and selling.

It was hard to find a property over $2 million up for auction. The only $3 million plus auction we saw in Toorak was at 68 Hopetoun Road with Steve Abbott of Jellis Craig – an art deco that seems to get sold every 12 months (see report below).

The REIV median prices came out this week and rightly confirmed what the market has been saying for some time: Prices are weaker.

This year to date has been a positive one for buyers with reduced competition, more choice and lower prices. On the flip side the buying opportunities are only such if you take them (a Steve Abbott auction line).

Next week, there are almost no auctions and not too much the week after.

Post Easter, as we said last week, may or may not be a different story. But our feeling is that quality choice will dry up and the big issue will become finding a rose amongst the thorns, the pass-ins and the stales. If those roses are hard to find then prices for them will firm as new quality drops with discretionary vendors adopting a wait and see strategy.

What Sold Well – Volcanoes with 4 or more bidders

• Albert Park, 62 Barrett St – Peter Simmons – Nicely renovated Period Home – $1,575,000
• Hawthorn, 23 Falmouth St – Hamish Tostevin – Nicely renovated Period Home – $1,330,000
• Hawthorn, 11 College St – Richard Earle – Nicely renovated Period Home – $1,409,000
• Kew, 36 Maitland Ave – David Oster – Land site – $1,345,000
• Toorak, 80 Grange Rd – Rodney Morley – Nicely renovated Period Town Residence – $1,500,000

$3M+ market: Overall, the high end at $3 million+ appears as weak as it has been for 12 months. Although  a shortage of new quality stock post Easter has put some zing back into the market as some buyers are forced to act.  Growing kids, divorce, lifestyle, whatever cannot wait for everyone indefinitely. Go to our $3m+ report to see most of the last weeks’ 10+ sales.

Michael Armstrong, Kay & Burton, South Yarra: “I think we can expect a fairly normal market post Easter.  Market conditions are settled and stock levels looking forward to May/June are lighter than what we’ve experienced in the past couple of months.  Vendors have had to adjust their expectations in recent times and buyers with long term views have realised that the past few weeks have presented them with good opportunities. The better quality offerings will continue to attract competition and alternatively  buyers will continue to deal harshly with those vendors (and agents) who price properties incorrectly.”

ST KILDA, 2 Marine Pde: On a bit of a rollercoaster day, it was apt to have the Scenic Railway at Luna Park as the backdrop of this Claudio Perruzza (Biggin Scott) auction. Passed in, $1,850,000, no bidders

Biggest Sale we covered: 68 Hopetoun Rd, Toorak, Steve Abbott (Jellis Craig); after auction, $3,050,000, 3 bidders
“This art deco property with Heritage One (HO1) overlay was looking for a committed buyer to make it a home. A vendor bid of $2,800,000 got the proceedings underway and the first bidder entered the race with a bid of $2,850,000. A second vendor bid of $2,900,000 signalled that the bidding was still some way off from the desired sale price. Auctioneer Steven Abbott wouldn’t entertain an increment of $5,000, demanding at least $10,000 to stay in the race. Despite keen bidding, this property was passed in at $3,020,000 but this was just the start of the negotiations. Bought after for $3,050,000.” (Debbie McTaggart)

Biggest Pass In we covered: 12 Dudley Pde, Canterbury, Doug McLauchlan (Marshall White); passed in $2,000,000, no bidders
“Doug McLauchlan took centre stage in the very big, leafy backyard of this great property and looked ready for action. Assisted by his Marshall White team, Mr McLauchlan explained that the circa 1923 home had been in the same family for a massive 72 years. But even the sentimentalists amongst us in the crowd weren’t ready to put their hands in the air and bid. Mr McLauchlan opened and closed on a vendor bid of $2,000,000.” (Jen Milligan)

Auction Video: Architect Adam heads to sunny Hawthorn this week to witness a ripper auction at 23 Falmouth St, a Marshall White property with auctioneer Hamish Tostevin.  Click on the live action.

Big Issue and Weekend Reflections: Coming back after the Easter holidays.

Two Weeks Off: Marketnews will be on holiday for two weeks with our next Marketnews on the 7th of May. A number of agents are talking up the 21st and 28th of May as possible Super Saturdays (as buyers let’s hope so). For James Buyer Advocates it will be business as usual.

We Only Buy Homes and have a safe Easter break:

Job Advertisement:

ST KILDA, 2 Marine Pde: On what was a bit of a rollercoaster day auction-wise, it was apt that the backdrop of this Claudio Perruzza (Biggin Scott) auction was the Scenic Railway at Luna Park. Passed in $1,850,000, no bidders

St Kilda, 367 Beaconsfield, a ripper property, finally sold with Andrew Macmillan for about half the initial very ambitious asking price after a long time on the market, with a number of different campaigns and agents.

Albert Park, 62 Barrett St (Peter Simmons) a  three bedroom Victorian single fronted with parking, showed that if the quality is there and the price is right, $1,575,000, then the bidders will come. There were 4 bidders at this auction. See report below.

St Kilda West, 10 Loch St with John Holdsworth sold for $3,650,000 at Private Sale after auction.

Damian O’Sullivan, Marshall White, Albert Park: “Post Easter, both buyers and sellers should expect to see greater sales activity. This has historically been the case over the years when the market briefly pauses for Easter and school holidays. The weekend of April 30 and beyond will see greater auction volume as a direct result. Typically, this will be the case until winter really sets in, but prospective sellers should see winter as an opportune time to contemplate selling as fewer properties will be offered for sale.”

Lets hope that with the interruptions of the past month behind us, we will see a bit more stock coming onto the market, post Easter. Traditionally that tends not to happen until Spring. But we can always hope.

Have a safe Easter – Guy.

ELWOOD, 107 Mitford St: Small crowd and only a vendor bid at this Rob Watson (Century 21 Wilson) auction. Passed in, $1,300,000

BRIGHTON EAST, 6 Northern Ave: Leigh Hallamore (Buxton) gets the ball rolling and finds two bidders in the crowd. Bought under the hammer for $1,290,000

Quiet day for us all this weekend at the million dollar level. Has been a great year for buyers so far, long may it continue. Have a safe and happy Easter and enjoy the time with your family – Kristen.

John Clarkson, Hocking Stuart, Brighton: “Certainly buyers will not feel as dominant post Easter due to stock levels decreasing to a normal level. There has been a fair bit of choice in the first quarter for the market post Christmas. That rush or backlog has disappeared as a result of being sold or withdrawn from the market. There will be a fair balance post Easter. For all the dooms-dayers who are waiting for the market to fall in a hole, they will be disappointed. Bayside sellers can have confidence that as long as schools, Church St shopping, transport and the beach don’t disappear, there will always be demand. For local buyers waiting for a good time to buy competition will continue to come from the leafy suburbs of Albert Park, Middle Park and Elwood. The infrastructure, amenities and family lifestyle will continue to keep demand at a very healthy level for Bayside. Whilst I don’t see a huge spike in prices if buyers see a property that is 7 out of 10, they should consider it very closely. If they are waiting for the market to implode they may regret sitting on their hands!”

ST KILDA WEST, 51 Park St: The ever dapper Geoff Cayzer (Cayzer) searches for bidders but passes the property in on a vendor bid of $1,225,000

Agent Q & A : How does current pricing compare with the same time last year?

Nick Yannopoulos, RT Edgar, Albert Park: “The intensity at auctions and buyer enquiry has certainly dropped over the last year particularly in the top end of the market. However outstanding homes in premier locations are still going strong as it does in any market. With winter approaching and stock levels reducing this should bring some stability.”

ST KILDA, 56 Blessington St: Adam Guest (Century 21 Wilson Pride) has his back against the wall (or tree in this instance!). Passed in $1,950,000, no bidders

Manna from Heaven - a bidder! ST KILDA, 124 Argyle St: Adam Guest (Century 21 Wilson Pride): Passed in at $1,220,000 and bought after for an undisclosed amount. 2 bidders.

Key Points:

• There is not a lot of new stock on offer due to Grand Prix interruptions and now we have Easter approaching so lean times for new offerings.
• Nothing approaching or over $2m reported as bought in the last week.

Damian O’Sullivan, Marshall White, Albert Park: “We feel the market is very balanced at the moment as evidenced by the weekly clearance rates. We don’t think the market is biased in any particular way despite a number of exceptional results we have had in recent weeks. Most vendors, whilst hoping for the best result, are prepared to accept market value which represents an excellent opportunity for buyers who are prepared to bid and buy and reap the long term rewards”

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What are you talking about? - course the market's OK! St Kilda East 239 Alma Road: Phillip Kingston: Bought for $1,500,000: 3 bidders (Photo Kate Agnoleto)

At 6pm on Saturday, the James Clearance Rate on the 31 auctions we covered was 58%.

Bidderman, our demand indicator of average bidders per auction, had a small rise to 1.6 bidders per auction, in part due to four volcanoes (strong auctions) including one 7 bidder auction in 28 Barrington St Kew.

These figures indicate that the market has now cooled – not frozen or falling apart, just cooled. That means we have moved into a buyers’ market, perhaps until Easter and possibly until Spring.

Well-priced homes are still selling. And there have been some surprising above-expectation results, such as 28 Barrington Kew (Glen Coutinho) which sold for $2,230,000 and, last week,Victor Road Kew (James Tostevin) at $4.1 million. But if the market doesn’t agree with initial pricing then it’s a slow, torturous journey to get a result. See our special Pass-Ins and Stales Report below.

This week we also look at the returns of serve on The Economist’s article as the ‘Experts’ hit back against the “Overpriced” headlines of last week.

This Weekend’s Market Summary:

This weekend in most places, except Boroondara, there was limited $M+ stock on offer at auction. The individual council clearance rates we report on in our market wraps could be distorted due to a) lack of auctions and b) lack of overall quality in those auctions. But this is not to imply a lack of stock in general – there are high levels of $M+ stock available across the board and Boroondara in particular is almost awash with homes on the market.

Looking specifically for a moment at Boroondara (Kew, Hawthorn, Canterbury and Camberwell), while this market may be a little out of kilter with the rest of Melbourne in terms of auction numbers, in the past few years it is a market that has shown the strongest resilience against negativity. It was affected by the GST for the shortest time, and has had the biggest price increases since. This weekend too it seemed to have a little oomph and we expect the clearance rate for Boorondara $M+ homes to be in the high 50s to low 60s.

But it does have a fight on its hands right now, with the main demand drivers (overseas buyers) reducing greatly in activity and supply to the market continuing to arrive week after week. Which means that buyers who can look beyond the headlines will find opportunities, and with the right strategies you should be in a position to push back a little against the seemingly never ending sellers’ market.

The next few weeks will be better in terms of auction quality in the top of the Top End in Boroondara. As long as those properties sell and the clearance rates stay stable, and if new stock reduces post Easter, we could move back to a balanced market. But if stock continues to come on in big numbers then the market will almost certainly remain cool with a significant change in demand sentiment.

Most of the $M+ homes on offer that sold this weekend were in the early $1 million range.

Bayside, Port Phillip, Stonnington have been quiet, with only a handful of sales in the post auction wash up from March 19th  and likewise at auction this weekend. In Port Phillip this is understandable as the Grand Prix completely extinguishes the market for almost a month. Why auction numbers are down in Brighton, Toorak and Malvern is not completely obvious – well not to us anyway. April 9th is shaping up as a Super Saturday of some sorts with almost 120 auctions in Boroondara and Stonnington combined. $M+ auctions in Bayside are still light on at the top of the Top End with mainly $1 million to $2 million homes on offer for the next few weeks leading into Easter. Most of the top of the Top End in Bayside is not going to auction.

Agent thoughts: Has the market changed since before the Labour Day weekend?
Chris Barrett, Marshall White, Hawthorn:“There have been a lot of people in the media talking about a negative change in the market since Labour day weekend, I however have found this to be unsubstantiated. As long as vendors prices are realistic and the property is presented well vendors can expect solid interest in their home.”
John Clarkson, Hocking Stuart, Brighton:“Good properties near local attractions and amenities, schools, shopping and the beach are still attracting a high level of enquiry.  Since Labour Day weekend the message is clear: If you are realistically priced you have a very good chance of selling . If you are above market perception, enquiry is reduced to a trickle.”  * For John’s full comments please see the Bayside weekly wrap.

James Special Report: Pass-Ins and Stales – The Autumn overhang build up.

We went back and re-examined all the auctions we reported on this year in 2011 and we revisited all the pass-ins, using still advertised on the net to determine their still for sale status. Please note that the table below is only connected with PASS-INS, not the homes we reported as bought before, at or just after auction on the day.

The table does make for interesting reading on the fate of a home that the market does not consider to be priced correctly at auction.

The table below shows Adjusted Clearance Rates comparing”On the Day” Clearance Rates with “On the Day plus Bought since”. Back in February 19 and 26 Pass-ins were taken up fairly quickly. However the most interesting stat is the lack of take up on Passed-in homes over the last two weeks of auctions: only 3 in 26.

• 1 of the 13 unsolds from the March 5th pass-ins and
• 2 of the 13 from the March 19th pass-ins.

This we feel confirms the view that the $M+ market started the year as balanced, but around Labour Day took a cooling direction.

What's happening Nick? Bentleigh 7 Eddys: Bought $1,312,500: 3 bidders. (Photo: David James)

James Big Issue: Agents claiming there are 100% Clearance rates in this market are just as misleading as saying the market is in freefall – both are far from the truth. Klarity Kris and Architect Adam cover it in the James Big Issue Video. Here is a summary of what they say.

• Still some surprising results. Two in particular, both in Boroondara, that stand out are Victor Avenue in Kew with James Tostevin – which sold for a hard to believe $4,100,000. Nic Franzman, Mark Dayman and Nic Ptak also from Marshall White’s result at 22 Stawell St Kew for $3,300,000. That was also a most surprising result
• We are hearing from agents 100% clearance rates – mainly due to agents feeling they need to respond to the Negativity of The Economist’s article and the Earthquakes, which for the moment have contributed to dampening demand.
• An interesting stat is that only 3 of the 26 homes we reported as passed in after auction in the last two weeks of auctions have since sold.
• We could say that 3 from 26 is reflective of the market strength – a far cry from the 100% Clearance Rate stats, BUT 3 from 26 while true, is also misrepresenting the market just as is reporting 100% clearance rates
• The market was in a balanced state pre Labour Day and as expected it is now going into a cooling phase until Easter due to increased stock levels and drop in demand intensity.

The message for buyers

• You have choice in the $3m+ range but there are still a few surprisingly strong results
• You will still have to compete relatively strongly if the home is good and well priced in that $1m to $1.5m range
• And the middle range say circle $2m to $2.5m is a bit of moving beast – the trend is not crystal clear to us at this stage.

Click on the JAMES BIG ISSUE video with Architect Adam and Klarity Kris in the middle of the home page

Media Monitor: Are Melbourne homes overpriced?

The case for being overpriced arose from The Economist’s article – which we reported on last week.  And now this week the case against those seemingly extreme overpriced by 56% headlines.

Rob Brooker head of economics from the NAB

1. Current events such as floods and Japan are affecting Melbourne short term, but long term our fundamentals are very strong.
2. Not suggesting prices are going to increase rapidly as affordability is hard pressed right now but we do have a shortage of housing stock.

His comments can be found in the excellent Kay and Burton report – sure it’s a selling tool but we listen to the expert commentary each time it’s on It’s well produced, they have credible experts and it’s relevant to our high end Melbourne market. Check it out, at least the expert comment stuff. The home fluff afterwards is up to you: http://www.kayburton.com.au/kayburtonreport

Paul Bloxham – HSBC’s chief economist for Australia and New Zealand, and a former RBA economist savages The Economist’s article stating “it’s too naive to be useful”. His main points in the Business Spectator are

1. We have an undersupply in inner city areas (totally agree with this comment)
2. Our stock is very high quality and has improved considerably over the last 20 years contributing to the increases in price paid (totally agree with this comment)
3. Very strong and improving economy (beyond our level of expertise but sounds good)

For the full article http://www.businessspectator.com.au/bs.nsf/Article/Australian-property-prices-housing-bubble-pd20110317-F24WP?OpenDocument&src=sph This was supplied by Al Craig of Jellis Craig – thank you.

‘Round the Grounds Headlines:
Boroondara- Some solid results but the trend is down under weight of stock numbers.
Bayside- Little movement on a lot of the recent Auction pass-ins
Stonnington- Small numbers of $M+ auctions today – although plenty of Top End non auction stock available
Port Phillip-With the Grand Prix – only 4 key $M+ auctions – 3 sold
More detailed analysis on our Weekly Local Council Market Wraps

Biggest Sales we can report:

• Templestowe, 9 Edwin: On the market since October of last year with Jeremy Tyrell of Fletchers. Has been bought for in excess of $4,700,000
• Richmond 37 Docker: Ken Griffith of Jellis Craig. Bought at auction, $3,300,000 – $3,500,000
• Hawthorn 23 Lisson Grove: Michael Lui of Marshall White. Bought after auction $3,600,000 – $3,800,000
• Toorak 17 Lansell, Lisa Jarrett of Abercrombys. On the market since December of last year

Biggest Sale we covered after auction: 44 Mary St Hawthorn, Antony Woodley of Marshall White. Above $2,700,000 (Undisclosed): Bought after auction, 1 bidder

Biggest Sale we covered under the hammer: 28 Barrington Ave, Kew, Glen Coutinho (Hocking Stuart), Under the hammer $2,230,000, 7 bidders (WOW)
“This Kew property did attract a crowd of 80 people, with quite a few potential buyers in the mix. The auctioneer, Glen Countinho, had to field bids from a whopping seven different bidders! Despite the light rain, the flow of the auction was quite amazing and reached the final amount of $2,230,000 before the hammer came down.” (Sonia Matmati)

Biggest Pass In: 68 Studley Park Rd, Kew, Passed in, $3,700,000
“A very pretty setting for an auction. Standing on an elevated embankment, auctioneer Richard Earle literally oversaw proceedings. He began by highlighting the virtues of this property with energy and detail. No bids came forth, however, so it was passed in for $3,700,000.”

Auction Video: This week i’ts down to Brighton with Klarity Kris at 22 Oakwood Ave, a Hocking Stuart auction with Peter Kennett. Click on the live action.

Please Note: we always ask permission to film and we always show respect at each auction. We also never video at an auction we are bidding at. If you are at an auction and don’t wish to be videoed, there are designated no-video zones. See our co-workers or ask the auctioneer.

Buyer Master Class: Klarity Kris discusses what’s necessary when buying a home when there are kids in the picture. Is it double storey single fronted or single storey double fronted!

Copyright: Mouldy Bread Picture from ChemistryWorldBlog.

We Only Buy Homes

ELWOOD, 44 Broadway: Sam Gamon (Chisholm & Gamon) looking a little concerned. Passed in $1,370,000, no bidders.

Agent Q & A: Has the market changed since before Labour Day weekend?
Kaine Lanyon, Marshall White, Albert Park: “We haven’t noticed or sensed any change in the market since prior to the Labour Day weekend.  The overall market appears to be quite well balanced. That is, well and fairly priced property is transacting consistently, however the over priced property is passing on and only transacting once the vendor aligns their expectations with where the market is actually at.  The fact remains that smart sellers are meeting the market and achieving very good results.”
Sam Gamon, Chisholm & Gamon, Elwood: “The results since before Labour Day weekend have been consistent with the preceding weeks in the lead-up.  This weekend will tell the story in terms of clearance rates and we remain extremely positive as several properties have attracted prior offers & demand is strong providing the fundamentals and selling strategies are correct. Properties priced correctly and supported with clever marketing are attracting competition. It’s imperative vendors choose to work with agents who thoroughly research price and provide justifications and reasoning. Presentation also plays a key role & buyers will always look for a point of difference.”

If you're looking for something that doesn’t need a thing done to it, you could have done a lot worse than the house at 109 Willis St, Hampton, which sold recently for $1.88 million

The inner suburbs of Bayside, such as Elwood, Albert Park and Port Melbourne, are great places to live when you are footloose and child-free. But what if you’ve got plans to have kids down the track?

Being able to walk to the local Turtle cafe in Elwood and take a short tram ride on No 79 through Richmond to St Kilda may be worth the sacrifice of a tiny backyard, or having to walk up three flights of stairs, or parking out in a busy street. But when you’ve got a tiny baby or toddlers to think about, that inner urban environment mightn’t seem quite so charming. And once those littlies turn into teenagers, your main desire might be to put as much room between them and you as you can.

Does that mean you have to move right out to the ‘burbs though? After all, you’ve established a life in your suburb, you’ve probably got friends there and maybe family nearby, as well as shops and other facilities you’re familiar with. And those inner suburbs are always going to be in demand, so a house there may well be a good investment.

Inner-city family living depends how much you’ve got to spend and what you’re prepared to trade off. Family homes on a decent-sized block come at a premium in places like Richardson St, Middle Park, Chomley St, Prahran and Addison St, Elwood precincts. So if you want to stay close in, you may need to make a compromise between land size or quality: between a house on a family-sized block that needs work to get to a liveable standard, or a better quality house on a smaller block.

Each option has its drawbacks – living through a renovation can be stressful, especially when children are in the picture; and what might seem cosy when the kids are small could become unbearably cramped when they grow into teenagers. Relocating is another option, but that can be expensive and unsettling too.

Then there’s the question of whether you’d be better off with double storey single-fronter or a single storey double-fronter. For young children, a single-level double-fronted probably works best – but once you’ve got hormonal teenagers, you might crave the bedroom separation of a double-storey home.

Even if it seems years ahead, you might also want to be thinking about schools. Living near your children’s schools has the benefit not just of reducing their travelling time to school, it also means they are going to be nearer their friends and after-school activities. As a parent, especially if you’re both working, the last thing you want to be doing is forever taxi-ing your kids halfway across the city. This is one of the reasons why suburbs like Brighton and Malvern and Camberwell are popular family suburbs – generous land sizes, pleasant quiet streets, good public transport and close to schools.

So let’s say you’ve got $2 million to spend and you want a family home – what are your options?

112 Ruskin Street ELWOOD | James Home Rating (718/1000)

If you definitely wanted to stay somewhere like Elwood, for under $2 million you’d be looking at a place like one we rated recently on James Home Ratings. 112 Ruskin Street was in a great position on one of Elwood’s premier canal streets, and on a good sized block for the area at 507sq metres. It came in at $1.75 million. The house needed a bit of tarting up, but after that it could work okay for a few years with a small family. If you wanted to expand, you’d probably need to go upstairs, unless you’re prepared to lose a lot of that backyard. But that could work well for dealing with the teenage years.

Then again if you were prepared to leave the buzz and lights of the inner city behind, say to Brighton or Hampton, you could see that $2 million go a lot further.

39 Regent Street BRIGHTON EAST | James Home Rating (749/1000)

Take a house like that at 39 Regent Street, Brighton East which sold for just on $2 million late last year. On a north-facing block of 900 square metres, and set on one of Brighton East’s premier streets, one house down from the park, this was a well-laid out family home with a huge backyard and pool. All the living areas looked out over the backyard, great for when you’ve got littlies, but the layout of the house – with the bedrooms up the front – means it will also be handy for when the kids get older and you need some separation. This place will work for some years, and, if you decide to do the big renovation, you’ve got a lot of space to work with.

If you’re looking for something that doesn’t need a thing done to it, you could have done a lot worse than the house at 109 Willis St, Hampton, which sold recently for $1.88 million.

109 Willis Street HAMPTON | James Home Rating (780/1000)

This was a beautifully renovated, family size period home, close to the action of Hampton Street, schools and transport. The backyard wasn’t huge, but the house was fantastic for kids – from littlies through to teenagers – with four big bedrooms, a good separate kids wing upstairs, complete with rumpus room.

So under $2 million does give you plenty of choices. Whether you stay in closer to town, or move out a suburb or two, the important thing is to understand the trade-offs, and what they may cost you and your family over the long term – in terms of money, time and happiness. Go in with your eyes open and you’ll make decisions you’re less likely to regret.