Some of our buyer prayers have been answered

Market: Even with significantly reduced auction numbers this weekend (owing to a more important event which finally delivered a result that proved there was justice in the world), we still saw a pretty healthy market result for sellers – with a 74% Clearance Rate on the 55 $Million+ auctions we monitored. Of those 55 auctions, 9 results were not reported. But even that is not unreasonable under the circumstances of the GF Replay.

There seems little doubt that the market is on the rise. The big interest now is how the market will absorb the stock surge that will culminate in Spring/Summer’s first Super Saturday on October 23rd.

And it really is Super Saturday - with a massive 81 $M+ auctions booked for Boroondara alone, and around 200 $M+ auctions booked in our key focus $M+ areas – Bayside and Inner East. Check out the size of the Weekly Review this week (it’s as big as a phone book). By comparison this weekend saw only one quarter of that number of auctions. So if you were at an auction this weekend, those four bidders you competed against may well be spread across four homes in a couple of weeks. Well that’s the “buyer-hope” theory anyway.

This Week’s Highlights:

• Two land sales showing vastly differing land values
  a) Land at 101 River Avenue Plenty (39,500 sqm), which can be subdivided, was auctioned  by Rob Stefanovski of LJ Hooker Greensborough and  bought for $3,830,000 or $96 per sq metre
  b) A large land parcel (1,813 sqm) at 3-5 Heath St Sandringham sold after a failed auction by Bill Jowett of Buxton for $2,800,000 or $1,544 per sq metre
• The major stock inflows that took place on Monday, Tuesday and Wednesday when agents began their marketing campaigns for the next Super Saturday – October 23rd.
• The continued improvement of the $3M+ market – two examples below
  a) Off market in Black St Brighton (Peter Bourbaud and Barb Gregory) – bought for around $4 million
  b) 27 Moorhouse Armadale with Gowan Stubbings of Kay and Burton – bought after an Expression of Interest campaign for more than $5 million
• The Pies Forward Line pressure (whoops, sorry – I got distracted)

Auction Snapshot from this weekend: 133 Rathmines Fairfield: Michael Fry and Grant Leonard of Nelson Alexander. Bought under the hammer for $1,116,000. 5 bidders.
There was a buzz about this well located timber period home, which had had its quote lifted to $930,000 during the campaign. It was a surprising development given Grant’s comment that the property failed to attract any interest in the high $800s a few months ago with a quiet sale campaign. It was on the market with the first bid at $900,000. Second bid $950,000. Third bid $970,000. Fourth bid-  bang $1,000,000. Three more bidders joined in before the action stopped at $1,116,000. It was a well run auction campaign. I always enjoy a Michael Fry auction. He has a sophisticated grace about him incongruent with the fact that he is yanking the dollars from buyers’ pockets. Enjoyable to watch unless you’re an underbidder – which unfortunately this time we were.

Bumper Market Insight: We have an information packed Market Insight this week; even though there are no Market Wraps, Bidderman, reports or videos.  The footy replay threw this auction weekend into a bit of chaos, with a few auctions even changing days. But it was a very low stock weekend anyway, so no major damage. All $M results are at the end of this Market Insight. But the big news now is the next three weekends that will lead full bore into the Melbourne Cup Long Weekend.

Stock Levels and Price Assessment:
The big question the market will be asking now is: What will happen to prices on October 23rd? With this big stock influx, how is the price game of snakes and ladders going to pan out? Are we going to see the slippery snake and big price slide of May 2010 or will the market just take this in its stride, as it did this time last year, with prices climbing further up the ladder? Time will tell. Importantly as buyers you need to get yourself organised – and don’t count your chickens before they’ve hatched.

With this apparent largess of choice, perhaps you don’t need brilliant home-seeking skills right at this moment. But you will need first class assessment procedures (e.g. sorting the goodies from the baddies in terms of capital growth prospects, and working out which one is best from a “happy wife = happy life” point of view). You will also need good negotiation strategies – because while you may have more choice, you will also have competition. Remember, our bidders per auction indicator Bidderman was strong on lower numbers in September, especially on good homes. On the flipside, some sellers expectations may be disappointed, so planning good negotiation strategies will improve your chances of grabbing a bargain when it presents.

Have a look at our Forward Auction Booking graphs below to get an idea of what is ahead of you: (click on a graph to enlarge)

There are also some exciting trophy homes on offer through private sale and off market – especially in the $3m+ segment.

Have a look at the New Stock Graph at the top of Market Insight – which compares the last week in September to the last week in June, (private sale and auction weekly new stock numbers are combined).

Special Report on the $3m Market

The $3m+ is back, after the self induced May hiccup that led to a very quiet winter.

There have been over 50 buys in the month of September at this level, with buyers coming from all quarters. Let’s pick one of the segments – around $4million. We have bought 3 homes at this specific level in the last few weeks. All were classic period homes with land of over 1000 square metres. Two were bought post auction (eg after a pass-in) and one was off market (Black St Brighton). However, the interesting thing were the buyer profiles. One buyer was a change of life family, one was a growing family that needed more space, and one was an expat family returning from overseas. This is a fairly accurate representation of the range of people we look for homes for. Of the last case – expats returning from overseas -Brighton high end agent Peter Bourbaud believes “this group will push the market along for the next few years, after a couple of very quiet years from the expat community”. We concur. Last year we conducted very little in business terms last year for expats. However in 2010 there has been a distinct pick up in action from expats returning home.

The James September $3m+ Report with all reported $3m+ boughts and solds can be viewed from the Home Page (next to Market Insight and below Buyer Masterclass) or click here

If you are new to the $3m market you may find the charts below (using 2007 to 2010 Valuer General, REIV and our own James Databases) of some value, as they help to show how the overall $3m+ market works. Note particularly that:

• The two powerhouse $3m+ suburbs are Brighton and Toorak (see 2009 results graphed below). However these two suburbs behave quiet differently from each other (see median graph). More on that another time.
• More $3m+ is bought later in the year than early. (2009 graphed below)
• There are some real name streets around and there are some falsies (where if you pay top dollar you will stand out like a beacon)
• Less than a quarter (25%) of $3m+ homes sell under the hammer at auction (click on September Graph below)
• A lot more activity is off market (not advertised) at this $3m+ level than any other price point, e.g. sub $3m.

Click on any of the graphs below to bring them up to full size

Agent Comments on the current $3m+ market

• “Prior to the school holiday period there was some renewed strength in $3m+ market due to things stabilising after the election and to the shortage of good quality homes. With the spring market in full swing it will be very interesting to see what happens with the increase of volume. But if the enquiry rates are anything to go by, October will be a strong month of sales.” Andrew Hayne of Marshall White Malvern
• “The $3 million plus market is strong, and we are expecting a big finish to spring in this market for good family homes.” Nick Johnstone of JP Dixon Brighton
  
• “There seems to have been a resurgence of buyer enquiry for the upper end properties recently.  It will be interesting to see if this follows through once we see increased stock levels after the school holidays and round 2 of the Grand Final.” Julian Augustini of Hodges Brighton
• Andrew Baynes from Kay and Burton South Yarra “Last Monday was the busiest auction sign up day for me in 10 years.”

Media Monitor: Domain – The Age 2/10/10. Headlined: “Hands up if you don’t have a clue” by Josh Jennings. Basically a solid article – but Josh, how many homes has Dr Damien Eldridge, Economics Lecturer from La Trobe University, bought using his quoted bidding advice this year? Would it have been 5 or 10 or 50? Going by his auction comments we were unclear as to whether you were holding him out as an expert – or simply providing supporting evidence to your headline.

We are not all brickbats here for the mainstream press. Congratulations to Chris Vedelago from The Age who this year has been consistently reporting the market as it really is and who actually seems to get out of the ivory tower (that so many property reporters are stuck in) and goes to auctions and talks to agents. We mightn’t always agree with you Chris, but we respect your work. Keep it up and keep getting out into the market.

Market News TV: On Tuesday of this week we ask the question: Is the ACCC or CAV the right watchdog for the real estate industry? Check out our Agent Opinion Videos.

Buyer Masterclass: We conclude our Negotiation Masterclass series with an article on Backward Bidding. From next week until Christmas we will be looking at “Pricing and Values” in Million Dollar Melbourne

Reported Results:

Hawthorn: 14 Lyndhurst Crescent: Bought $1,511,000. Bidderman 3. Peter Batrouney and Campbell Ward. Big crowds throughout Boroondara today - seemed the strongest area over $1million.

Strong day in Boroondara today for good properties, with many homes selling under the hammer and selling strongly. However not all auction results have been reported.

Some of the auctions that we attended -

8 Moorhouse Street Camberwell (Heather Elder, Marshall White). Sold for $1,997,000 – 4 bidders

14 Lyndhurst Crescent Hawthorn (Peter Batrouney, Jellis Craig). Sold for $1,511,000 – 3 bidders

Common to all of the properties today was their intrinsic quality. As James Tostevin remarked last week, if it isn’t a good property and the vendor’s expectations are not in line with market thoughts, then the property will struggle to sell (that is not rocket science except it hasn’t been that way since November 2009).  One property that really did surprise was  7 Carlyle Street Hawthorn East. This passed in without a bid and sold afterwards for $1,546,000. Great result here for Robert Ding of Jellis Craig.  This was a basic 60′s house with multi-level flats to the rear – next door was an older  period home (which needed work)  yet did not have the same privacy issues and sold for about the same money only a  few weeks ago through a different agency.

I guess the big observation is all about the properties that did not sell at a Saturday auction this week, because they were bought in the week before.

• 28 Coleridge Street Kew (Hamish Tostevin/James Tostevin, Marshall White),
• 14 Royal Crescent Camberwell (Peter Batrouney / Campbell Ward, Jellis Craig),
• 94 Argyle Road Kew (Stuart Evans / James Tostevin),
• 18 Callantina Road Hawthorn (Joanna Nairn / James Tostevin, Marshall White),
• and a quiet off-market property in Raheen Drive Kew (Scott Patterson, Jellis Craig).

All of these were solid properties and sold strongly for around the $3m mark. Obviously by this number the market (for quality homes) at this level remains strong.

Talking to Alastair Craig from Jellis Craig he believed that the clearance rate was around 85% for properties which his agency auctioned today – a big improvement on last week (around 70%).  Perhaps last week was just a blip – just like it was last year for the week after the Melbourne Cup weekend. Time will tell.

Couple of land values for the stats guys. Havelock Road Hawthorn East (Campbell Ward Jellis Craig) around $2000 sqm. Rubens Grove Canterbury (Tom Ryan of Jellis Craig) $2200 per sqm.

Following up a couple of recent pass-ins in that little fringe pocket of Hawthorn – near the river – south of the tram depot. 24 Elm St (Antony Woodley Marshall White) was bought for we believe a tad under $2 million and 21 Oak remains on the market.

Big  numbers for scheduled auctions for most Boroondara agencies next week – and there is fair bit else happening, namely the Grand Prix and the first round of AFL footy – lets see how the market performs  and next week go Doggies. (and Pies)

Design Smart

Richard Earle (Jellis Craig) tries to coax a reaction from the crowd at Murdoch Street Camberwell

Although the sun was not really out, the bidders certainly were, with most properties over $1m selling in Boroondara today. Bidderman was strong at many auctions and there was no shortage of them.

Talking to Richard Winneke from Jellis Craig this afternoon, the market, he believes, has gone up at least 10% since the end of last year (and we may well agree with this). One property Richard sold today was 98 Pakington Street in Kew. This sold under the hammer for a strong $1.851m  – interestingly it last sold (property condition basically unchanged) in the heat of the market 2007 for $1.445m.  30% in about 2.5 years – that is good capital growth in any language.

Richard also mentioned that Jellis Craig had sold 43 out of their 46 auctions. This stacks up closely with the other Boroondara heavyweight agency Marshall White which too had a similar clearance rate for a similar number of auctions. Hamish Tostevin of the firm continued his successful run with a result of 7 sales from 7 properties this week.

Another strong result in Hawthorn (remember York Street last week) was 7 Lyall Road Hawthorn. Hocking Stuart sold this at a strong price of $1.95m – around $300K over reserve. Bidderman was 8 here, and this auction went for almost an hour. Well done to auctioneer Glen Coutinho for hanging in there.

Some other auctions we covered where Bidderman was strong was  87 Sackville Street Kew (sold for $3.305m, Bidderman 3), 18 St.Andries Street Camberwell (sold for $1.62m, Bidderman 3), 9 Leslie Street Hawthorn (sold for $1.435m, Bidderman 3) and 7 Fakenham Road in Ashburton (sold for $1.325m, Bidderman 4). On the subject of Ashburton, is this gaining some sort of parity with Glen Iris? 22 Boyle Street and 13 Ward Street also sold today for $1.310m and $1.429m respectively – all three of these auctions were strongly attended and fought for.

An interesting ‘land’ sale was 35 Essex Road in Surrey Hills – land size here was 1080m2. Had a period home which needed work (refer last week’s architecture article) or could have been bulldozed. This sold for $2.007m or $1860/m2.  Compare this to a similar property in the next street – 8 Middlesex Road – approx. 180m2 less land but a very-well renovated period home sold for $2.005m. Another land sale was 100 Winmalee Road Balwyn – 953m2 -  sold for $1.635m or $1734m2. An interesting ‘architect home’  sale was 10 Bluff Street Hawthorn – the style of this  polarised opinion, yet did sell under the hammer for $1.98m. The style may not have been for everybody but room sizes and flow were very good.

Not everything was bought however. At the higher-higher end 24 Coppin Grove Hawthorn passed in.

As things cool off a bit for auctions next weekend due to the Labour Day long weekend, buyers can take a breather – big auctions coming up after this though (flag March 27) and the strength in the market looks like it will continue up to Easter at least.

Design Smart

Adam

19 Sales and Pass-Ins of interest over a million in Boroondara (not including Glen Iris) this week with 17 being sold. We were interested in land values in Kew, Balwyn and Ashburton and an old favourite finally sold in the Reid Estate.

50 Fellows St Kew – Peter and Trish Dixon of Jellis Craig

Balwyn: 20 Elliot: Mike Nolan Auctioneer: Sold After for $1,180,000 after a pass-in at $1.145m. 2 bidders. Crowd was 70

James Home Rating: 640 out of 1000. Very popular spot for new builds – we see it as land only in this part of Kew – south facing rear though. 757 Sq metres

James Control Price: Dirt $1,895,000 + Home 0 = $1,895,000

James Auction Report: A good crowd of 110 people here. Proceedings opened with a crowd bid of $1.1 million and auctioneer Richard James immediately responded with a vendor bid of $1.6 million. There were seven bidders for this property, which was on the market at $1.75 million and sold under the hammer for $2 million.

James Post Auction Examination: Strong Result. – 6 bidders. Land is still very much wanted and that makes dirt in the Studley Park area $2642 per sq metres if you assumed like we did there was no value in the home in this instance.

19 Marquis St Ashburton – Paul Williamson of Jellis Craig

James Home Rating: 624 out of 1000. 1970s floorplan – thats our code for bulldoze as far as front to back and indoor/outdoor flow is not appropriate for modern 2000 living. Looking at it as land only.

James Control Price: Dirt $1,041,000 + House 100,000 = $1,141,000 Used the Glen Iris sales of Celia St and Van Ness as reference points.

James Auction Report: Crowd of 40. 3 bidders. On the market at $1.15m and sold for $1.25m. Auctioneer Paul Williamson reported the result and we thank for that.

James Post Auction Examination: Strong Result

20 Elliot Avenue Balwyn – Mark Read of Noel Jones

James Home Rating: 609 out of 1000. Rated as Land only. Popular land buying and build a new home area. Some very well contested auctions into the early millions in recent times for this block size.

James Control Price: Dirt $1,122,000 + House 0 = $1,122,000 Used Yongala and Paisley and Metung land sales as data references.

James Auction Report: Auctioneer Mike Nolan opened the bidding here with a vendor bid of $1.1 million. Two bidders form the crowd of 70 joined in. The property passed in at $1.145 million.

James Post Auction Examination: Sold Afterwards for $1,180,000. Good Result.

7 Bowley Balwyn – Peter Smith from Jellis Craig, finally sold for an undisclosed amount believed to be in excess of $2.5million. I really liked this home but not everybody else did and then we had a failed auction and then the price went funny and now it has sold for the right price. The market was kind and covered up some transgressions

Design Smart

EXECUTIVE SUMMARY
Paul is a big-end-of-town agent getting multi-million-dollar deals in Hawthorn, Kew, Glen Iris and Canterbury on a fairly regular basis. We don’t always see eye to eye and have had some real scraps but, nonetheless, the respect is there for what he achieves for his selling clients. Paul does follow up and has a wealth of knowledge that can be very valuable for those he chooses to share it with.

Mal: Family Status and where do you live?
Paul: Married to Annette, we have three boys and live in Burwood.

How long have you been in real estate and what is the company you work for?
I have been in real estate for almost 20 years and I am a director of the Jellis Craig Glen Iris office.

Where do you mainly work (area) and what types of homes do you specialise in?
My area of influence is throughout the suburbs of Boroondara and my clients tend to have good quality family homes in these suburbs.

What makes a good investment?
A property that is well located to public amenities and has scope for capital appreciation.

What makes a good family home?
The old adage of Position, Position, Position … you can improve a house, you can’t improve its location.

What makes a good buying decision?
Every person is different; we all make decisions that we believe to be correct to our requirements at any given time. What’s a good decision for one person could be a completely unacceptable one for another; you just have to go with what you believe is right for you after giving the decision due consideration. I have found snap decisions are rarely good ones. Especially when chocolates are involved!

Best investment decision you made?
Buying a house from a “Private Sale” specialist who was operating out of his area of influence.

Worst investment decision you made?
Not buying real estate quick enough. It took me five years of working in real estate before I bought a property; in that time, prices almost doubled.

What are the top 3 precincts in your area, how big is an average block, what type/style of home, what is the dirt price and how much for a renovated home today?

1. Grace Park Estate in Hawthorn (Linda & Hilda Crescents to the south, Glenferrie Road to the east, Kinkora Road to the north & Power Street to the west. Hawthorn Grove, whilst not in the Grace Park Estate, is also a wonderful address; I have had over 25 sales in “The Grove”, which creates an instant affinity) has mainly Edwardian homes, with a smattering of Victorian & Federation homes, land is rare as hen’s teeth due to heritage overlays not allowing demolition; if you could find land, expect it to be in the vicinity of $300 per square foot, average land size ranges between 8000 to 10,000 square feet. It’s staggering to believe in the very early 1900s they had to run competitions to get people to build in this area: entry level is early $2 millions and the the best homes can sell for over $10 million.
   
2. The Tara Estate in Camberwell (Broadway to the south, Stanhope Grove to the east, Canterbury Road to the north and Burke Road to the west) is very similiar to the Grace Park Estate with house styles, heritage overlays, & land sizes; average prices can range between $2 million & $4 million depending on land content and standard of renovation.
   
3. Finally in Glen Iris, Heights Estate (High Street to the south, Hillcrest Road to the east, Ashburton Road to the north and Barina Road to the west) provides great value with a mix of styles ranging from 1920s to modern day architecture, single dwelling covenants protect the area from multi-home development, land sizes range from 7,000 to 9,000 square feet and you will pay between $100 to $120 per square foot for land, renovated homes range in price from $1 million to $1.5 million.

   Three underrated streets in your area for family home buying (where, price, type and style, would they have to renovate)

4. Any street west of Church Street Hawthorn (river end) quiet, well positioned to parklands, Victoria Gardens, public transport & schooling, entry level pricing around the $1.25 million mark, good mix of architecture styles (Edwardian through to Modern); at entry level pricing, some renovation is to be expected.
5. Bourne Road in Glen Iris, pricing starts just over $1 million, you will need to do some renovation, mainly 1920s architecture.
6. Also Ferndale Road in Glen Iris is a great spot, proximity to parklands, opportunity to create still exists, prices start at $1 million for land, renovation will probably be required.

What would you say to a young couple with $800,000 looking for a family home specifically in your area – eg (where, type and style, would they have to renovate)?
Ashburton is still coming along nicely with good opportunities around the $800,000 mark. A variety of styles exist depending where in Ashburton you purchase; the closer to the vibrant High Street shopping strip you buy, the better but will probably mean you will need to do some renovation. Great primary schooling available (State & Catholic) and there are parks everywhere, the Recreation & Leisure centre is a real hub as well.

What would you say to  a downsizing couple with $1.5m specifically in your area (where, type and style, would they have to renovate)?
Hawthorn is still the place to be, whether it be a new apartment in a boutique development close to Glenferrie Road or an excellent single-fronted Victorian home, no renovation will be required. After all these years, you deserve the best: move the furniture in and put your feet up.

Buyer Agents – yes or no?
There is a place in the market for buyer agents. For buyers who are time poor or lacking experience in negotiating, a buying agent can provide experience in both these fields.

Apartments or Houses?
Houses, because the land they are built on usually always goes up in price.

Auction or Private Sale?
Personally, I prefer auctions, but every property has different attributes that require consideration before recommendation.

How can a seller maximise their value at sale?
PRESENTATION: if your house is cluttered up with life’s mementos, dark because of the col,our of your wall paint or smells of pets, FIX IT, otherwise a canny buyer will wait whilst your property lingers on the market, your asking price drops and they will swoop. If your agent tells you to attend to something, they aren’t trying to inconvenience your life, they are trying to get you a better price. Nine times out of 10 they will know someone who can fix the problem.

What are the do’s and don’ts for buyers when dealing with selling agents?
There aren’t too many really, some people say don’t tell the agents anything, pretend you’re not interested. If we don’t know you’re interested, you may not get a call if the property is going to be sold. Just be yourself, tell the agent to keep you informed if you like the house and do any due diligence you want done, get a contract, do a building inspection etc. In what may come as a surprise to many, the vast majority of selling agents are normal people trying to make a honest living in a challenging environment. There will always be ones who push the boundaries like in any industry but, until I lose your trust, I expect your trust.

What do you think are the opportunities now with us?
Definitely upsizing, if you have a secure job (and that includes over 90% of the population), interest rates have never been lower, prices have compressed, now is the time to get the bigger home!

Where is the market going in 2009 in your area?
With the lack of stock available, we could see some slight price increases in certain price and area segments

Who will win this year’s premiership and why?
With all teams being equal (no injuries), I think Hawthorn has the best list of players and should go “back to back” – they could actually emulate the Brisbane trifecta – but injuries, as always, will play a huge part in deciding the Premiership team and there are a number of teams who could challenge given a decent run with injuries. Victorian teams, after being written off a few years ago, are back on the rise again; in fact, it could be an “All Victorian” Top 8.

Hawks, Cats, Saints, Pies, Bulldogs, Blues, Tigers & Roos … now what a September that would be … along with a few more listings … it could be heaven!

If a potential seller would like an appraisal or wishes to sell their home how is it best to contact you and what are your details!
I can be contacted during office hours on 9809 8999 or anytime on mobile 0419 330571 or email paulkeane@jelliscraig.com.au

Next week: Barb Gregory from Hocking Stuart: A lady in all senses of the word; sometimes known as the perfumed steamroller, being one of Brighton’s best selling agents.

The Market Following up on our August Newsletter, last month we said we would report back to you fairly quickly on what is happening in the market. Have interest rates had any effect?

Overall in the inner city good quality markets ($400k – $4M) we have seen no drop off effect whatsoever due to the interest rates. However, at the sub $400K level we have seen a substantial increase in stock on the market, and this may be as a direct result of the interest rate rise or it may simply be the vagaries of the market.

Stock Levels are incredibly tight in some inner areas (e.g. Bayside). We have had little joy in finding good homes in the $1M+ market in Brighton, Sandringham and Hampton.

The inner eastern suburbs of Hawthorn, Kew and Malvern definitely have higher stock levels however this has seen no diminishing in the prices paid; in fact if anything we think Hawthorn is probably the hottest suburb in Melbourne as we write.

So what does this mean for the future – who knows? All we can do is report to you that if you buy the right home at the right price at the right time for the LONG TERM then things seem to take care of themselves.

A dozen quick buying points

1. Many people think buying a home is about the money – it is not. It is about clearly understanding YOUR NEEDS.
2. Many people think cashflow is the major issue in buying a good investment property – it is an issue but the cornerstone issue is capital growth.
3. Many people think buying a home well is a bit hit and miss. It is not – those that buy well
   Step 1: Understand YOUR NEEDS.
   Step 2: RESEARCH all options.
   Step 3: ASSESS correctly as to value and quality.
   Step 4: NEGOTIATE to buy well, not miss.
4. Many first time investors think buying an investment property means buying something unusual. This is rubbish – it’s all about demand and supply for future growth. If you wouldn’t want to live in the house, your spouse wouldn’t want to live there and your mother doesn’t like it – DON’T BUY IT. Chances are unless you are aliens; nobody else will like it in the future either.
5. Do all properties go up? – NO. Do all inner city properties go up? – NO. Why is that? In the case of the Docklands, it’s not demand – it is supply. Growth is a demand and supply issue – not just demand. That’s why we love inner city family homes. They aren’t making more land and our population is increasing at the world average. Increasing demand and restricted supply.
6. Can you avoid buying DUDs? Yes by focusing on ALL the key characteristics.
   AREA. POSITION. LAND. BUILDING. Not just 2 of the 4.
7. Is it good to buy in hotspots? Maybe, but maybe not. Refer above point.
8. Is property buying high or low risk? For mum and dad in the right area and the right home over 20 years it’s low risk. For short term developers and investors it’s high risk – very high risk in some cases.
9. Are agents ratbags? A few, but so are some buyers and advocates; but most high end agents are very, very good at their job. Trouble is they are not working for you the buyer. They are working for the seller. If you think a few TV tricks, or some agent abuse will get the property in a tough negotiation you are naïve.
10. Many people can putt like Tiger Woods occasionally, but can they do it when they absolutely have to win and there are no second chances? Auctions and Agents can be about Anxiety, Stress, Fear of Loss and the Unknown. How many buyers snatch defeat from the jaws of victory simply because they do not recognize the need for expert unemotional advice at critical times? There is a big difference between doing what you know and knowing what to do. Yes this is another cliché, but can you perform under pressure when you and your family are pulling at the heartstrings? Can you make the right decisions?
11. Most good negotiators know this – sometimes you can offer too much and miss the deal – i.e. if you had offered less you would have bought it.
12. A good home, well bought that meets your needs and is held for 10 years plus will almost always perform better than 2 or 3 buy and sells during the same time, no matter how good a negotiator you are. In and out of the market plus transaction costs are very significant negative issues. Know what you want for now and for the next 10 years BEFORE you buy.

Some of what we have bought in the last 4 weeks

• Kew – Rowland St. Family home in a great position with north facing rear. (See Picture Below)
  
• Malvern – Embling Road. Architectural townhouse, lovely position with lift. (See Picture Below)
  
• Malvern – Euston St. Edwardian with off street parking. (See Picture Below)
  
• Seaford – Admans Ave. Good investment property with work to do. (See Picture Below)
  
• Seaford – Park St. Investment property – good renter and a good location.
• Somers – Tasman Rd. We were a bit nervous about this at first but with tennis court, solid house, low maintenance and some water views for well under $600,000 in our opinion this was good buying for what our client wanted.
• Preston – Breffna St. New 3 Bedroom, 2 bathroom townhouse and good location. (See Picture Below)
  
• Hampton – Willis St. Townhouse – well built, great floor plan & north rear. (See Picture Below)
  
• Ashburton – Victory Blvd. Good solid family home in an excellent location.
• Hawthorn East – Caroline St. We bought this as an investment property – a lot of interest with six bidders in total; two bidders with us over $700K. Yes it was south facing but its floor plan is as good as it gets for Victorians + off street parking, great location, and only 7 years old.  (See Picture Below)
  
• Seaford – Park St. Another very solid investment property.
• Bentleigh – Bendigo Avenue. Location was the key to this place – good block, home needs work.

Client Comments

Dear Ian

The dust has settled and we are now waiting out the settlement time before getting into Bonnyview Street! I’m making use of your Aftersale information in preparation for moving – thanks for this – another useful product from James Buyer Advocates.

Alan and I have reflected on the ‘journey’ that we undertook buying our first family home and we both agree that your input along the way proved to be extremely valuable. We have learnt much about real estate from you and found your manner and knowledge to be very enlightening and helpful. There is no doubt in our minds that your input reduced our stress and worry significantly – after all, once wed found the property (and you had okayed it), all we had to do was decide how much to pay (taking into consideration your valuation of course) and let you go to work.

we know you worked hard and fast with the negotiations, and in the end it was quite painless for us – we kept on with our usual tasks while you kept us in the loop on the phone about the progression of the deal. Again, there is no doubt in our minds that your input made a significant difference to our ability to secure Bonnyview Street. I especially appreciated you accompanying me throughout the contract and cheque signing!

Given our family circumstances, we didn’t ever get to have the many café discussions that your information mentions – I look forward to being able to do that next time! Never-the-less, your flexibility to fit in around our schedules was great and much appreciated.

Best wishes
Colleen Young