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Directors Comments
“Well Labour will serve a second term in government, after 3 independents held the nation’s future in their hands. Interest rate uncertainty, off shore economic situations in Greece and the US uncertain, shares still wobbly. All this makes direct residential property look like a pretty safe investment. Investors seem to agree and are forming at least 70% of our work load at the moment, unlike last year when it was 70% home buyers. A big shift in sentiment. We work across multiple suburbs and the market is patchy at the moment. Performing well at some auctions, others, not well at all. This doesn’t seem to be just suburb dependant. Clearance rates have fallen from “dizzy heights” of around 86 to 87%earlier this year to a more normal 68- 72% recently. Time to buy, but be careful and don’t overpay. The usual Spring surge will be later than normal
in my opinion this year, making a late run to the finish for 2010 likely.
Headlines featuring a supposed “tapering off of the market” have been frequently in the press recently. Just when we believe buyers should be exploring great buying conditions they have gotten nervous and many are “sitting on their hands”. This may not necessarily be the best approach. We prefer to exploit any slow down. As professional property buyers we can attend a number of auctions for several good quality properties in one day. Some auctions work and we don’t buy those properties, others fail and we hopefully buy those if the Vendor is motivated to sell at a good price. You can’t just focus on one property and assure a good buy.
Many investors buying property within their Self managed super funds (SMSF). This increasingly strong trend is supported by better loan products on offer from Banks and other institutions, clearer guide lines and structures. Shares continue to fluctuate and direct property investing is increasingly attractive to investors wishing to diversify their superannuation investments or have more control in assets they understand and trust.
At a recent Buyers Agent breakfast hosted by the REIV, Ms Margaret Mead, Manager of Westpac Bank Malvern branch made it very clear that the major banks were changing their attitudes to lending in response to the Global Economic Crisis of 2008/2009. They are lifting loan to value ratio requirements from very low levels years ago. Now typically a buyer should have from 10 to 20% deposit to consider buying their first home. Another major change is that the bank will want to see a savings history. You will need to demonstrate an ability to save, not just a pay slip. First home buyers need to note this change and parents, please pass this information onto your children.
Family homes in demand
Family homes in demand 9-Aug-2010 REIV
The June quarter REIV median prices compared the levels of demand for homes according to their region and number of bedrooms. This showed that while overall demand increased, there were types of homes in certain regions that recorded different levels of demand. It is important to know this detail if you are in the market: all property is subject to a particular local market and awareness of this needs to inform your decision-making process.
The strongest demand was recorded in the south–east, for two-bedroom homes in areas with a median of $600,500.. This is a very high price for a two-bedroom home, highlighting that demand is well and truly exceeding supply for that type of home. Three-bedroom homes in the western suburbs recorded the second-strongest demand, with an increase in the median that was 50 per cent higher than Melbourne as a whole. This is consistent with our view that good value housing can be found in the west and, judging by that result, many buyers have realised the same thing.
Third on the list was a fairly standard family home, the three-bedroom house in the outer east. There the median increase by 9.4 per cent over the quarter to reach $528,000. There was a clear trend in the June quarter of strong demand in the affordable segment of the market, a trend that is reflected in the demand for family homes in the outer east. .The most expensive type of home appears to be the four-bedroom home in the inner south, the median for which is $1.8m.
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RBA: Stable interest rates to spur activity
For the fourth straight month the Reserve Bank has elected to leave the cash rate at 4.50 per cent.
There is also further good news for borrowers. Board members have highlighted that interest rates are “around average levels” with growth “near trend”, “inflation close to target” and the global outlook “somewhat uncertain” and as such it is unlikely to raise rates even next month.
Click here for full article >>
REIV June quarter median prices
The REIV has released the June quarter median prices which reveal that the median price of a house in Melbourne has increased by 8.5 per cent to $559,000 from a revised $515,000 in the March quarter. The data indicates that whilst the auction market has returned to a more balanced position, price growth is being driven by demand in the city's more affordable suburbs. The strong June quarter reflected the state's increasing population and wider positive economic factors and has resulted in higher housing prices in the middle of the market. Increased housing prices, rents and interest rates are also contributing to worsening affordability in Melbourne.
Metropolitan Melbourne Median Prices
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Jun Qtr 2010 |
% chg Mar-10 to Jun-10 |
Mar Qtr 2010 |
% chg Jun-09 to Jun-10 |
Jun Qtr 2009 |
% chg Jun-05 to Jun-10 |
Jun Qtr 2005 |
| Houses |
$559,000 |
8.5% |
$515,000 |
26.8% |
$441,000 |
55.3% |
$360,000 |
| Units & Apartments |
$463,215 |
4.7% |
$442,525 |
19.1% |
$389,000 |
54.4% |
$300,000 |
Source: RIEV
Click here for full article
Chicken Cacciatore
Ingredients
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3 tbs olive oil
6 chicken drumsticks, trimmed of excess fat, skin on
6 chicken thighs, trimmed of excess fat, skin on
1 large onion, chopped
2 celery sticks, chopped
2 carrots, peeled, chopped
150g sliced pancetta, chopped
3 garlic cloves, crushed
125g button mushrooms, sliced
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100ml dry white wine
800g can diced tomatoes
1/2 tsp brown sugar
1 tbs balsamic vinegar
1 tbs chopped fresh rosemary
1 bay leaf
150ml chicken stock
1 cup pitted Kalamata olives
Chopped flat-leaf parsley, to garnis
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Method
Heat the oil in a large casserole dish over medium-high heat. Add the chicken pieces and cook until browned all over. Transfer to a plate and set aside. Add the onion, celery, carrot and pancetta to the pan and cook over low heat for 5 minutes until the onion softens. Add the garlic and mushrooms and cook for a further minute.
Return chicken pieces to the pan, add the wine and allow to simmer 1-2 minutes.
Add the tomatoes, sugar, vinegar, herbs and stock. Bring to the boil, then reduce heat to low and cook, covered, for 20 minutes, stirring occasionally. Add the olives and cook for a further 10 minutes.
Transfer chicken to a platter, then reduce the sauce over high heat for 5-6 minutes. Serve garnished with the parsley.
Vacancy Rates- source latest REIV Data from Website.
Click here to view the Current Vacancy Rate Graph from REIV
Recent Events and Successes
Premium Lending Group invited Janet to sit on a panel of experts presenting to property investors at Kooyong Tennis Club recently. It was a great evening, with a spirited panel discussion, led by active questioning from attendees. I think they got a lot from the evening and many intend to invest again or for the first time in property soon.
The REIV Awards for Excellence will be held at Crown Palladium on the 21st of October. .Proud finalists for Buyers Agent of the Year , we have entered again this year, so wish us luck and we will announce the results soon.
Janet has recently been re-elected to the Members Council of the REIV to serve her ninth consecutive term on this steering council. She was re-elected as Vice Chairperson of the Buyers Agents Chapter, and has previously served two consecutive terms as Chairperson.
 Future Events
Buyer Solutions will be hosting and presenting at a series of seminars for investors and home buyers in late 2010 and 2011. Dates, venues and topics are being confirmed and will be advised in future newsletters. Should you wish to register your interest in attending, please send an email with your name, contact details and email address to info@buyersolutions.com.au
Recent Press featuring Buyer Solutions
Uncertain Spring
Domain August 29, 2010 
Where to buy at the median price
Domain, May 2nd, 2010
Visions of Suburbia, Suburbia the Hits and Myths
The Age, May 22nd, 2010
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Scoreboard
Sensational results have been achieved both for our Buying Clients and our Vendors over the last quarter with many purchases made off market without any fuss and minimal competition.
Vendor Advocacy and Buyer Solutions
4 Apartments for Sale in East Kew
Buyer Solutions purchased this block of apartments direct from builder in 1996 after he finished a refurbishment. They have performed very well as an investment, being securely leased and highly in demand by tenants. Close to tram and bus, shops, parkland and many lifestyle attractions and a quick commute to the city, no wonder they were rarely vacant. Consisting of 4, bid and light apartments, the two on the ground floor have large private, sunny courtyards for outdoor entertaining. Time to sell. and make the most of this great investment.
Successful Purchases at Buyer Solutions
Noone Street, Clifton Hill
Wow Factor Plus. This great townhouse has no Owners Corporation and is a hop skip and jump to Clifton Hill, Brunswick Street, Smith Street, the city, school, parks and transport. No wonder our clients fell in love with it. They were going to offer $160,000 more than Buyer Solutions paid at auction. Here’s what the clients have to say:
“Auction day came along! We were unable to attend the auction, busy in Adelaide! Naturally, we were nervous, but we knew we were in good hands. The property was handed in, perhaps due to Janet’s tactics? Straight after the auction, Janet went in with the vendor and agent and consequently secured the property for $160,000 less than we were willing to pay."
As I write this testimonial, I am sitting in my new home in Melbourne, and I absolutely love it! I would like to say thanks to Janet for making the buying process so easy and completely stress free. Secondly, Thanks Janet for taking on the agent at the auction, there is no way my husband and I could have handled the negotiation process, with all the auction adrenalin flowing, he would have surely intimidated us into paying more! “ Katie and Phil.
Bay Street, Port Melbourne
Ocean and city skyline views , fabulous design, fabulous location! Whats not to love? Our client flew in from Perth, inspected six short listed properties and had no trouble deciding he wanted to use this apartment as his Melbourne base and that it would be a great investment. Secured for a great price, he flew over 30 days later to move in his furniture and indulge his passion for golf and some AFL footy.
Church Street, Hawthorn
After several months of looking and holding out for a bargain, we secured the perfect apartment for our customer in Hawthorn. A quiet, off market listing, he would never have known of the property with out Buyer Solutions and secured it within 5 days of it being listed for sale. Walk to work was a big drawcard and also being close to the Yarra and its bike tracks and jogging paths..Lovely views from this third floor apartment really sealed the deal. Six weeks to wait until moving in, our customer can’t wait.

Cooper Street, Preston
 
Tears flowed after a tough, hard fought auction to secure this gorgeous home in Preston.. Janets experience and nerve were tested, but auction skill, paid off for this customer, stopping the auction just at the upper end of our budget. Fully renovated, this young family can simply move in, enjoy the neighbourhood and watch their investment go up in value, in this highly sought after and desirable pocket of Melbourne.
Elizabeth Street, Newport
A great townhouse, close to shops and station in one of the fastest growing price areas in Melbourne. This investment will reward our cients going forward and is the perfect, stress free, set and forget property investment in the “hot” Western suburbs. Diversifying the portfolio now with properties in prime Eastern and Western locations.
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