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Recovery continues in April. It’s blue skies for capital gains
Over April’s first 2 weekends the Real Estate Institute of Victoria (REIV) recorded more than 1,379 auctions. 1,190 properties sold, 871 at auction, with 194 passed in. 316 properties were sold before auction with 3 properties selling after auction. The clearance rate was high, averaging a high 86.5%. 425 homes sold by private sale.
Auction numbers started to slow in April due to School Holidays, Easter and with Anzac Weekend also approaching. However, the Melbourne market recovery is holding up well, with data showing home values rose 0.4% in February and 0.5% in March (according to market analysts CoreLogic). With capital gains happening and more on the way, it’s an excellent time to buy.
How will a Labor election win will affect home buyers?
There’ll be no immediate effect, but if Labor wins on May 3, they say they’ll build 30,000 affordable new homes in five years. If this kicks into gear it will tie up a lot of builders and tradesmen. Building costs will be pushed right up for the private sector. Because builders, tradesmen and materials in every major city will all be in shorter supply. The higher costs for builders and home renovations that follows will push up the price of quality established homes. Because there’s less need to renovate them when a new owner moves in. So this will add continued upward pressure on home values over the next few years.
Labor will keep rolling out the ‘Help To Buy’ scheme, which it has updated. The Government tips in 40% of home equity (if your salary is $100,000 or less). Homes must be valued at $950,000 or less. Anyone can qualify, it doesn’t have to be a first home. A Labor win is good news for home buyers in this category.
How will a Coalition win effect home buyers?
If you have a super nest egg you can put $50,000 towards a home. Also, the Liberals will loosen borrowing rules and the mortgage serviceability buffer. This will increase peoples’ overall borrowing power. Generally, a Coalition win is also good news for home buyers.
Banks are sure more rate cuts are on the way
Interest rate cuts are music to any home buyer’s ears. The Reserve Bank kept them on hold on the April 1 review and they’re the only ones who can say when the next cut will fall. But the big banks, who live and breathe interest rates, believe another cut is coming soon enough. In order of the most optimistic first: Commonwealth Bank thinks we’ll get one in May. NAB says May also. Westpac says in the June Quarter. ANZ says we’ll have to wait until August. In other words they have no clue. But the great thing is they’re all sure another cut’s on the horizon!
Fantastic buy this month
Buyer Marketing just had an excellent outcome purchasing 13 Vickery Street Malvern East, an extra-large 45 square luxury designed 5 bed, 3 bath, 2 car, north facing free standing new home for $3,750,000. This property had been previously listed with another agent with hopes of achieving over 4 million dollars, however Buyer Marketing carefully negotiated this acquisition prior to the Expressions of Interest deadline. Our very happy clients, a professional young family couple purchased well within their budget. Another terrific result, through experienced negotiation!
How we get you the best property
It is looking good for home buyers and if you work with Buyer Marketing you have Melbourne’s most experienced buyer’s agent by your side, stepping you through your home purchase. It’s a process few people do often and are not always familiar with. There can be twists and turns. But with Buyer Marketing’s 35 years of experience working with you, you’re in the best position to buy extremely well. That means getting the best property, on the best terms for you, the buyer.
Peter Fox at Buyer Marketing provides deep experience at every single step of the way – reliable property search, evaluation, acquisition, appraisal, and negotiation.
Our acquisition skills make a big difference
Our well-honed negotiating skills can be key to securing a property. It can be a very competitive process. Exhausting even. Experience makes a big difference. Whether it’s an auction or a private sale, we know the best moves in the most pressured situations. You can have peace of mind because we always act with clarity and integrity to protect your interests. We’ll negotiate for the best possible terms and sale price!
Peter Fox
Principal Advisor &
Licensed Estate Agent
Buyer Marketing

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