Blog News
The steady selling market we predicted at the start of March continues and we can report our best March results for the past 4 years. Our two auctions in Murrumbeena and St Kilda on March 31st sold well with a three bedroom townhouse and extra large two bedroom apartment respectively. We have had good inspection numbers at our new campaigns also.
Thomson Murrumbeena go to the Easter break with a 100% clearance rate at auction for 2012, against a market positioned around 60%. We won’t recommend an auction for every property, but we do identify strongly with our market and position our properties to get the best possible results.
Demand has improved in the Carnegie district, where we have sold four single bedroom apartments over the past week. Buyer confidence appears to have returned at this affordable entry level, for first home buyers and investors which is pleasing. It may be time for you to capitalise on this either as a seller or a buyer.
RESULTS
1 Wahroongaa Crescent, Murrumbeena is positioned in one of the most popular and leafy parts of Murrumbeena. This art deco period solid brick home provided a wonderful canvas for our buyer to come in and create something special More >
The first year indicators.
Pre-empting a market is hard, but there are always certain indicators that only the trained veterans know. A perfect example of this is the last two weekends of auctions. Many people might not know this, but the last weekend in Feb and the first weekend in March represent two of the most significant weekends for the real estate industry. The sample from these two weekends provides a good indicator of how the year is going to go. The clearance rate for those two weekends has sat at 62%. That is a good indicator that we have an average but strong market to work in. The market at the end of last year saw prices reducing, as picky buyers refused to put their hand up at auctions, this also meant that vendors had to try to adjust to the reality of a lower price. We would like to think that our market is slightly different now. We have a more predictable market in which the gap in which buyers are prepared to pay and the prices that vendors are prepared to take is closing considerably. However clearance rates are only one statistic of many in real estate that people need to More >
The Start of the year at a glance
We have an exciting weekend coming up from a sales perspective, because we have our first auctions of the year. The signs are looking very positive with a lot of pre auction interest. We are also seeing listings are starting to increase now that we are well and truly into the year. And we are seeing more and more people looking to sell their properties moving towards Easter. As usual this time of year for the rental department is like Spring for the sales department. Even so this year is not disappointing. The property management team is continuing its tremendous start to the year. On average they are renting 2 properties per day of the week, and have already leased over 60 properties in February. There are some excellent results being achieved with new properties and town houses being built, that are quickly being listed and leased. All in all the shadow from the start of the year seems to be being lifted as a slightly more confident market seems to be emerging. But for now we will just have to wait and see.
The market at a glance
Some doom and gloom reporting over the weekend identified 3 or 4 suburb s that had moved back in prices around 20 to 30 percent. But we need to remember that is not all of Melbourne. So let’s take a look at some contributing factors to this downturn in the market and how it will be affected this year. The Australian dollar is nearly at the highest point it has ever been, due to the economic environment around the world. Instead of helping the Australian economy it is actually hurting it with unemployment on a steady rise. A high unemployment figure has always been a major factor when it comes to confidence in the property market, meaning a lot of people are taking their time in determining whether they want to buy real estate this year. The banks didn’t help last year by maintaining a much stronger lending criteria, if the trend continues into this year an unemployment problem is not going to be the only major factor affecting the market this year. However it is not all doom and gloom, Thomson Murrumbeena has been building up to a sale for a property on the market in Brighton. It is More >
2012 – The Year Ahead
With out the help of a crystal ball to sneak a peek into the future, most real estate agents rely on previous data and historical trends mixed with current market activity to predict what lies ahead in the property market.
Enzo Raimondo, CEO of the Real Estate Institute of Victoria, said in a recent interview that he expects a better year than last with further interest rate cuts likely at sometime during 2012. He also reiterated his 2011 opinion that it is still an opportune time for first home buyers and investors to take advantage of our softer market.
It’s likely that overseas economic woes will continue into 2012, undermining the stronger local economy and keeping consumer confidence subdued. Global uncertainty plays a significant role in how we live here. Many people are nervous about spending money even though the outlook here is relatively positive.
One thing is clear though, the Melbourne market does move in cycles with some years being very strong and others not so. This is due to a whole range of factors. Changes in the economy certainly have an impact, as do misalignments between supply and demand. The latter was a significant factor in the market in 2011. More >
Low-Doc Loans Explained
Low document or ‘low-doc’ loans have become increasingly popular in Australia over the last few years. Initially they were only offered by non-bank lenders but as traditional banks began to lose some market share in this area they began including them in their choice of lending products.
There are some major differences between mainstream and low-doc loans. The main one is that low-doc lenders do not require traditional proof of income such as company financials or tax returns. Instead borrowers generally complete a declaration that confirms they can afford the loan. This is known as self-certification.
Low-doc loans are particularly appealing to self-employed or full-time investors who may have difficulty showing a high level of income, as a result of either writing off a number of expenses, reinvesting profits into a business, or slow in lodging their tax returns.
Borrowers should be aware that interest rates and fees are usually higher with low-doc loans and that lenders mortgage insurance often applies. Loans are also usually capped at 80% of the valuation of the property.
Borrowers applying for a low doc loan are also asked to demonstrate that they have a clear credit history. Generally one or two small paid defaults are allowed More >
Tips for the Savvy Saver
Minimising household expenses is one way to put dollars back in your pocket. Buying grocery items in bulk, waiting for end of season sales and taking advantage of interest free deals and some of the ways we are able to save money. If you’re a savvy saver on the look out for some top tips, here are a few ways you could save on your home insurance:
• Improve security – If you make your home less of a risk in the eyes of your insurer, they usually reward you with a cheaper premium. Added security measures such as a burglar alarm and deadlocks on windows and doors could help keep your premiums down.
• Correct cover – One of the main reasons why people have inflated insurance premiums is because they buy an unnecessarily high level of cover. Make sure you give an accurate rebuild cost for your property – this is the amount of money it would take to re-build your home from scratch.
• Boost excess – The excess is the amount of money you’d have to pay in the event of a claim. For example, this might be the first $500 of the claim amount. Many insurance More >
Property Management Saves the Day!
As the silly season gets underway people start to get forgetful and mistakes can be made. A perfect example of this was one of our tenants accidentally locked herself out of her house with her baby inside. For a young mother on a hot day this was extremely traumatic for her and she rang the Thomson Murrumbeena office in a panic. Without hesitation the Thomson property management dept with the receptionist managed to be at the property within about 5 mins. The team let her back into her residence and reunited her with her child. The tenant was incredibly grateful and extremely happy with the prompt action of our staff. Thomson is extremely proud of our staff and how they handled the situation with cool calm and collected nature.
Remember to be careful this silly season.
Wine Cellar
In Australia we enjoy our wine – in moderation of course! Few homes, however, boast specialist wine cellars. They still rank well below home theatres and games rooms as luxury home add-ons.
Poor storage, especially in our fluctuating climate, can ruin potentially good wines and, if you are a serious collector, the rack in the corner of the living room or in an ordinary basement, just won’t do.
The combination of cost and poor knowledge of wine storage requirements is possibly why the majority of households do not have a dedicated cellar. They are quite expensive to build and maintain, and that’s before you fill it with pricey bottles of quality wine.
Of course for the dedicated wine buff, nothing short of a full-scale cellar will do. And most real estate agents believe that the additional cost of installation is worthwhile, even if you are not going to fill it with your favourite pinot and chardonnay. In fact, because they are so uncommon, a good cellar can sometimes put between five and 10 per cent on the value of a home.
So if are a wine enthusiast who is considering adding to your home, perhaps a wine cellar makes good sense. Be More >
Market Round Up
The market maintained steady momentum over the last weekend without delivering any big surprises. The REIV reported a total of 899 auctions – 612 were houses and 265 were flats or apartments. These numbers confirm a solid supply of real estate stock is still being offered across the city. 396 of the 899 properties were sold at auction, giving a clearance rate of 53%. The clearance rate for the same weekend last year was 59%. Less expensive inner city properties are attracting strong bidding and promptly selling at auction whilst a notable number of properties – around half according to the REIV – that don’t sell at auction find buyers shortly after. Private sales for the weekend totaled 528, which equated to $260 million. The top selling house was in Canterbury and fetched a healthy $3.38 million, whilst the top selling apartment was sold in Marne Street, South Yarra for $1.9 million. The most affordable home sold was in Cockatoo and it fetched $230,000. Higher household debt could be one of the significant factors contributing to a more lack lustre real estate market than in previous years. A new report by the Australian Bureau of Statistics highlights figures showing the More >
