The latest data released by the REIV for the March 2020 Quarter, reveals the strong performance of the Victorian property market in the lead up to the coronavirus pandemic. Like most of the economy, the real estate sector saw a significant change in conditions from the middle of March, following the Government’s announcement of a series of restrictions on social gatherings.

The Metropolitan Melbourne region saw median house prices reach a record high of $893,000, up 3.7% since December 2019 and up 2.3% since March 2019. Unit and apartment prices recorded a median price of $641,000, up 0.6% since December 2019 and up 4.6% since March 2019.

Regional Victoria saw median house prices reach $419,000, down -0.5% since December 2019 and up 2.5% since March 2019. Unit and apartment prices recorded a median price of $297,500, down -3.3% since December 2019 and no change at 0% since March 2019.

The Inner Melbourne region saw median house prices reach $1,485,000, down -1.9% since December 2019 and down -1% since March 2019. Unit and apartment prices recorded a median price of $635,500, up 0.3% since December 2019 and up 4.2% since March 2019.

The Middle Melbourne region saw median house prices reach $1,024,500, down -0.8% since December 2019 and up 3.1% since March 2019. Unit and apartment prices recorded a median price of $724,500, up 1.9% since December 2019 and up 6.6% since March 2019.

The Outer Melbourne region saw median house prices reach $695,500, up 2.7% since December 2019 and up 0.3% since March 2019. Unit and apartment prices recorded a median price of $550,000, up 1.3% since December 2019 and up 2.1% since March 2019.

Auctions saw median house prices reach $1,012,500 which has no change at 0% since December 2019 and up 4.3% since March 2019. Unit and apartment prices recorded a median price of $713,500, up 0.2% since December 2019 and up 6.1% since March 2019.

Private Sales saw median house prices reach $753,000 which was up 2.1% since December 2019 and down -1.5% since March 2019. Unit and apartment prices recorded a median price of $573,000, down -0.5% since December 2019 and up 3.7% since March 2019.

Is now a good time to buy a property?

With the flattening of our COVID-19 infection curve, there is the possibility that we might see an early exit from containment after a one-to-two-month lockdown. This coincided with the JobKeeper incentive and other business stimulus packages in an assertive effort from our Government to get workers back into their jobs and help minimise the number of mortgage arrears and losses.

As soon as we see improving economic conditions, we believe there will be a rise in sentiment and “pent-up demand” from buyers and sellers who had put their property goals on hold during the pandemic. This will provide a stimulus to the housing sector which could result in a strong recovery in the later part of the year, making now an opportune time to buy a property.

The team at Beckett are continuously monitoring the latest developments so that we are best informed to help our clients make the best decisions to ensure both personal and financial health. We are still trading and assisting our clients under the Government’s new health guidelines and we welcome any future enquiries.

The post REIV Residential Property Sales Update – March Quarter 2020 appeared first on Beckett Property.

Over the past month, both State and Federal Governments have introduced new measures to address the ongoing threat posed by the Coronavirus (COVID-19) outbreak.
In an effort to curb the spread of the virus, social distancing measures have significantly altered business practices across all sectors of the economy. Among the Government led directives, are bans on open real estate auctions and open home inspections. These have now been replaced by online auctions and private property inspections.

Social distancing will also likely delay property transactions as policies may intensify. It is hard to forecast the exact impact this is going to have, but it will certainly adjust how the real estate industry operates. Although it is difficult to be definitive in these rapidly changing conditions, we currently foresee a downturn in the property sector to be relatively short lived.

For the second time in March 2020, the Reserve bank of Australia cut the official cash rate to a new record low of 0.25 per cent in an emergency move to support the economy facing challenges due to the Coronavirus. Government and RBA measures to help struggling businesses and households through the Coronavirus shutdown should help in preventing a really big rise in unemployment. Some economists have stipulated that if there was a rise in unemployment to around 7.5%, it would likely drive a 5% dip in property prices. However, once COVID-19 is under control, a market recovery is anticipated as the Australian economy bounces back and consumer confidence rises.

What do I need to know if I’m looking to buy a home?
For those that have the capacity to buy in the current market, money is cheap and there could be some great opportunities over the next few months. In this environment, buyers who have very secure jobs are actually in an improved position because the overall market is weaker. There will be buyers who are simply unable to buy now due to reduced incomes and job uncertainty. Then there are others who are adopting the wait-and-see approach.

What do I need to know if I’m a property investor?
Property is deemed a safer investment option compared with the share market and those who take a long-term perspective will always outsmart short term reactive thinkers. It has never been cheaper for investors to obtain finance and if prices come down, rental yields will increase, and investors will be in a far greater position to capitalise. A major point to factor is that it could take longer to find a tenant, or a rent reduction may be required during these unprecedented times.

What is ahead
Unfortunately, no one has the crystal ball to accurately predict the future. We can’t be sure how the Coronavirus health crisis will pan out globally. We also can’t be exactly sure how it will affect the Australian economy or our property market until we see an end to this crisis. There will be some business casualties along the way, but eventually, things will improve and we will get through this.

Once COVID-19 is under control, the housing market is likely to bounce back with a combination of record-low mortgage rates and the likelihood that they will remain at these levels for quite some time. In addition to this, a slowdown in property transactions in the coming months combined with continuing population growth will likely create pent-up demand for housing. This pressure on supply and demand will once again drive high property prices.

The team at Beckett are continuously monitoring the latest developments so that we are best informed to help our clients make the best decisions to ensure both personal and financial health. We are still trading and assisting our clients under the Government’s new health guidelines and we welcome any future enquiries.

The post Coronavirus: What to expect from the property market amid COVID-19 appeared first on Beckett Property.

Melbourne’s property market is currently experiencing the quickest price recovery on record, which is disheartening for many buyers who hoped that prices would stay level after the recent correction in 2018 and the first half of 2019.

This week, the REIV released data for the September Quarter stating that Melbourne’s median house price jumped 4.5% in just three months to $830,000. The property shortage is really starting to push prices up and forced the largest growth in Melbourne home values in two years.

There has also been a strong resilience across the metropolitan units and apartments sector with prices increasing by 3.9%, despite higher supply levels. This most likely comes down to affordability constraints in the market as well as more first home buyers supporting demand, thanks to first home owners stamp duty incentives.

The top end homes of Melbourne previously recorded the largest decline over the past twelve months, but now these suburbs are leading the charge for the most rapid recovery.

What’s driving the house price increase?

The strong rebound is attributed to a variety of factors including:

• The Liberal party winning the Federal Election.
• Three interest rate cuts and record low mortgage rates.
• APRA loosening credit rules.
• Higher levels of investor participation.
• Strong population growth.
• Weak Australian Dollar which is incentivising foreign buyers again.

Another major driver of this sudden price surge is the shortage of real estate stock which is approximately 40% lower than this time last year. Home buyers have suddenly changed their strategy when either up-sizing or down-sizing their homes.

The switch from a “Seller-Buyer” market

During 2018 and the first half of 2019, people were not confident they would achieve their desired price when selling their home and they felt more comfortable selling first as they wold know exactly what they had in the bank before they bought again. This forced the market to experience many ‘seller-buyers’ and contributed to very healthy stock levels. It made sense to people – in a declining market, sell at today’s price and buy at tomorrow’s price.

The switch to a “Buyer-Seller” market

Now that the market has turned and confidence is sky high again, people are very confident they will achieve their desired sale price for their home. However, they are now concerned they won’t be able to secure their new home or get priced out of the market. This has led to the ‘buyer-seller’ strategy which is putting more pressure on property stock levels. People aren’t listing their homes for sale until they buy first, which again makes sense in a rising market – buy at today’s price, sell at tomorrow’s price.

With positive media, easier lending circumstances, high auction clearance rates, price growth and restored buyer confidence, some property commentators are forecasting double digit capital growth for the year ahead.

The fear of missing out and then paying more is now the current theme in the marketplace. This sentiment was also experienced during the property boom from 2013 to 2017 when prices were soaring.

Speak to the experts in Property

If you are a first home buyer, upsizing your property or downsizing for lifestyle, a property investor or developer, the correct property selection is now more important now than ever.

Beckett Property are fully licensed Buyer Advocates and highly acclaimed Property Advisors who specialise in property acquisition services for home buyers, investors and developers across Melbourne. We help our clients grow, protect and pass on their wealth through a wide range of services.

If you are looking for assistance to source and acquire your next home or investment property in this market, please contact one of our experts today.

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Property is still regarded as one of the safest long-term investments that someone can make. A lot of people want to be property investors and build a successful property portfolio. The reality is that it requires a great deal of strategy, hard work, risk management and time. The rewards of property investment can be fantastic if done correctly. Here are some important points to consider before you take the leap. Please see 9 essential tips for getting started in property investment below;

1. Be comfortable with your current debt levels

Ideally, a large portion of the mortgage on your principle place of residence should have been paid off and you should also have minimal unsecured debt (like personal loans, car finance and credit cards).

2. Identify your budget

It is paramount that you consult with your bank or mortgage broker and obtain a pre-approval for your investment loan before you start your property search. One of the biggest mistakes people can make is borrowing to their maximum limit and not considering future changes to their personal circumstances. This could result in financial stress later down the track and force you to sell your investment property.

3. Don’t underestimate outgoing costs

It is important that you budget for the usual investment property outgoings including property management fees, council rates, land tax, owners corporation fees (if applicable), landlord insurance, maintenance and general repairs. Always be prepared for contingencies like having a vacant property or a defect that requires repair.

4. Be realistic about your investment goals

Property investors should identify the reason for buying an investment property and what they want to achieve from it in the future. Are you looking for a high rental yield or long-term capital growth? Once you understand your property goals, put together a long-term strategy to suit your financial capacity, requirements, timeframe, availability and desired outcome. Successful wealth creation through real estate requires you to set goals and then formulating a plan to get there.

5. Buy in an area with growth potential

Understanding a property market takes time. Before you commit to buying a property, it is important that you research the best investment suburbs with good capital growth potential and particularly, the actual property itself. Get familiar with comparable sales analysis and identify up-and-coming areas (ripple suburbs). It is also great to research whether the local council is progressive and has plans to invest in future infrastructure. Buying an investment property in an under-supplied region is very beneficial as there will be strong demand from future tenants. Try to also focus on areas with great lifestyle options and amenities, close to public transport (especially a train station), schools and freeway options.

6. Choosing the right property features

Choosing a property which has features that ‘tick all the boxes’ is paramount and one of the most important factors in a successful investment. These A-Grade properties are in strong demand by future tenants and will safeguard your property vacancy rate. Important property features to consider are; the style of the property, structural condition, land size, scarcity, streetscape, orientation, floorplan flow, natural light, storage, heating and cooling, off-street parking.

7. Buy with your head

When you are house hunting, it is very easy to get caught up in emotions. People can fall in love with a ‘dream house’ but with an investment property, people need to understand this is a commercial decision. A rental property only has to be clean and functional, don’t overpay because it has a stylish interior. Be objective and realistic about what you can afford. If you allow your emotions to cloud your judgement then you are more likely to over-capitalise on your purchase, rather than negotiating the best possible price and outcome for your investment goals.

8. Pre purchase due diligence

Before signing on the dotted line, it is crucial that you conduct your full pre purchase due diligence as you need to identify any risks with the property. Things like liaising with a Conveyancer to review the Contract of Sale and Section 32 (vendor statement), Building and Pest inspection to check the structural integrity of the dwelling, an accurate rental appraisal from your chosen property manager are all good places to start with your due diligence.

9. Think carefully before negative gearing

If the repayments on your investment loan and outgoings aren’t fully covered by the future rental income of your investment property, you could be subject to negative gearing benefits. As you are making a loss on the property investment, this loss can be used to reduce the amount of tax you pay on your personal income. While there are certain tax benefits, it can also lead to financial stress if you don’t have enough cash flow to cover your property investments costs. Make sure you liaise with your Accountant and consider your budget very carefully before buying.

Beckett Property are fully licensed Buyer Advocates and highly acclaimed Property Advisors who specialise in property acquisition services across Melbourne. They encompass over 40 years combined industry experience in acquiring, selling and developing real estate and truly understand every aspect involved in the complete property purchase process.

If you are looking for assistance to source and acquire your next home or investment property in this market, please contact one of our experts today

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Property stock levels are low

The recent confidence and positive conditions have awakened buyers to a similar level witnessed in the 2017 boom period. This fast change has surprised a lot of people – especially real estate agents. Another big driver of this buying surge is the extremely low level of properties for buyers to choose from. We are currently experiencing approximately 40% lower stock levels compared to 2018 and this is putting pressure on pricing again. Buyers are now looking back at opportunities they passed up earlier in the year and in 2018, realising they missed a window of the best housing affordability since 2016. 

More property buyers missing out at auction

Buyers are off the fence, and for those who are actively trying to purchase a property, the current market conditions are tough. It’s rare now to see Saturday open home inspections without a queue of people and auctions without multiple bidders. When five people attempt to buy a property, four of them miss out. These ‘under-bidders’ must continue their search, and assuming their housing requirements remain the same, they risk being quickly priced out of the market.

The switch from “seller-buyers” to “buyer-sellers”

For those people considering moving home, the conundrum they now face is where will they actually move to. This is felt mostly by older homeowners who would like to down-size into a smaller property or up-sizers seeking larger accommodation. The idea of selling their current home first is now a daunting task as new options are very limited due to such limited stock on the market. 

A lot of people believe that these market conditions will improve for buyers once stock levels increase during the spring selling season. The only problem we face there is that selling agent’s pipelines are looking extremely grim for September, October and November. Homeowners have now switched from seller-buyers to buyer-sellers and this is causing a hold up of new properties hitting the market. 

Entering a new seller’s market

We have quickly entered into a new seller’s market and if the upward pressure on home prices continue, we hope this will entice more sellers into the market. 

If you have been navigating through tough buying conditions and are yet to secure your new home, don’t get discouraged and don’t give up. Buying a new home can be a very patient game but you have to persist and make a commitment. The right home will appear, and you will know once it does. 

It’s also equally important not to be foolish with your purchase. These hot market conditions can bring out the worst in people and force you to make irrational decisions that you will regret. Understand that we are at the beginning of a new market cycle and prices could increase very quickly if these current conditions continue. Keep a calm head and ensure that you select a property that is right for you and your circumstances. Conduct your due diligence and don’t be persuaded by emotions or the ‘fear of missing out’. 

Beckett Property are fully licensed Buyer Advocates and highly acclaimed Property Advisors who specialise in property acquisition services across Melbourne. They encompass over 40 years combined industry experience in acquiring, selling and developing real estate and truly understand every aspect involved in the complete property purchase process.

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Most property economists believe the worst of the housing downturn is over, with a stabilisation of the Sydney and Melbourne real estate markets and property prices now leveling. The Melbourne property correction has seen the median price in Middle Melbourne sitting at less than $900,000 for the first time in almost three years. This has created ideal opportunities for those wanting to ‘trade up’ into more coveted Middle Melbourne areas and obtain larger accommodation.

A major factor contributing to the improvement of Melbourne’s property market is the significantly lower stock levels with 25% fewer properties for sale compared to this time last year. There has also been many incentivizing announcements and changes made with the recent Federal Election, Major Bank’s easing the assessment criteria for new loans, two interest rate cuts and future tax cuts planned.

Assuming you are in the market to buy a Melbourne property right now when stock levels are so low (especially A-Grade real estate), you need to work with whatever tools you have available. Our team at Beckett Property have developed some tips to help you buy a property in a tightly held market and this is based on our extensive experience as leading Buyers Advocates in Melbourne.

THE SCOPE:

Before beginning your search, you must build a road map first:

Property – Identify all the features you require in a property that will suit both your immediate and future requirements. This might include the style/era, number of bedrooms, bathrooms, off-street parking, dwelling size, orientation etc. Put these features into two separate columns which are titled ‘must have’ and ‘like to have. This will help you to prioritise what is most important to you and what you won’t compromise on.

Position – Is the property accessible to your lifestyle, friends, family, recreation and work? Where do you see yourself and your loved ones creating great memories? Once you have devised your ultimate list, you then need to research whether or not your budget can facilitate it. If not, you must work out what adjustments need to be made and possibly start considering other regions.

Price – More often than not, the dream house we want and the house we can actually afford are two different ideals. Be objective and realistic about your budget and what you can afford. Get an understanding of the prices in the area by finding out the suburb median price, attending as many inspections/auctions as you can and analysing recent comparable sales data.

THE SEARCH:

Although there are a number of resources that you can use to find property listings such as Realestate.com.au, Domain and Real Estate View, you need to liaise with Real Estate Agents and Buyers Advocates as they are the greatest source for off-market (non advertised) properties. In a tightly held market, this is vital.

INTEL:

Ask the Selling Agent strong and qualified questions to help you assess the competition on the property;

• Why is the property for sale?
• How long has it been on the market for?
• How many people have attended the OFI’s during the campaign?
• How many people have conducted second and third inspections?
• How many building inspections have been conducted on the property?
• What terms have been requested by other parties? (deposit or settlement etc)
• How many buyers are you expecting to compete?
• Are you accepting offers prior to auction?

PROPERTY ACQUISITION:

There are multiple methods of sale available in the current market place. Your first step is to identify the exact method of sale so you can structure your best acquisition strategy:

AUCTION:

• Understand your limit and stick to it – do not get carried away during the emotion of the auction.
• Stand in a position where you can assess your competition and you can also be seen by them.
• Do not fidget or look around too much as this shows signs of nervousness and inexperience.
• Be confident and project your voice when bidding.
• Large, opening bids are often good to cut the emotion out of the auction.
• Counter bid immediately. This will ensure that the other person feels you are in control and that you are definitely there
  to buy the property.
• Read the momentum of the auction, look at your competition and gauge if they seem nervous or not.
• Raise and decrease the increments of bids when necessary.

BUYING MELBOURNE PROPERTY BEFORE AUCTION

• Making a calculated ‘uncomfortable offer’ forces the Selling Agent to second-guess whether they will receive such an offer
  if they continue with an auction. Be careful as you do not want to pay well above the property’s market value doing this.
• Timing is essential. Offers too early into a campaign will most likely be rejected due to the Selling Agent and Vendor
  feeling they haven’t tested the market enough. Submitting an offer in week 3 or week 4 of the campaign is more than likely
  your best chance.
• Make your offer subject to a deadline (24 hours for example) to ensure it’s taken seriously, and that the vendor cannot
  revisit the offer should nothing higher come up.
• Make an unconditional offer to strengthen your position but make sure all your due diligence is complete beforehand
  (mortgage pre-approval, building inspections etc).
• If your offer is rejected by the Vendor, request an explanation as to why as this will help you to assess your competition.
• If your offer does stop the auction and is going to be accepted by the vendor, be prepared for the Selling Agent to leverage
  (shop around) your offer with other parties to try get them to pay a higher price.
• Negotiate the first right of refusal as part of your offer so you have a second chance just in case your offer is beaten by
  another party.

PRIVATE SALE:

The benefit of a private inspection is the ability to connect with the property in a more meaningful way. Here’s some property buying advice if this is the method of sale.

• Ask the Selling Agent what the terms of the sale are – is there a closing date and time? Are they offering the first right of refusal? Does each buyer have one chance only?
• Be polite, courteous and clear with your dealings with the agent. They are the conduit between yourself and the seller and it is in their best interest to see the sale go through. Keep them on your side.
• Make an unconditional offer to strengthen your position but make sure all your due diligence is complete beforehand (mortgage pre-approval, building inspections etc).
• Ask the agent to give you an indication what level the competition’s offers are.
• Submit your offer right before the cut-off time lapses as this way most of your competitor’s offers would have been submitted and you can work with the agent to try find out what price level your competition is around.

CONSIDERING BUYING PROPERTY IN MELBOURNE?

It is hard work buying a property under any market conditions and people often don’t have the knowledge, experience or time to invest in buying the right property. Plus, it’s easy to fall into the trap of making decisions based on emotions or conditions rather than based on a well thought out plan. This is where Buyers Agents can add significant value to the process.

If you are considering buying Melbourne property, consider Melbourne’s leading buyers advocate – Beckett Property; to provide you with the sound advice you need to make confident decisions. For a free consultation provide your details below and one of our expert advisors will be in touch.

The post Latest insights for buying Melbourne property in 2019 appeared first on Beckett Property.

Renovating a property can be a very daunting prospect. Your mind may be reeling with different ideas and you will get flooded with advice from family, friends and colleagues. You may even be battling with big questions like whether to stay or move? Should you extend or simply tweak the space you already have?

The biggest obstacle with your renovation can be as simple as knowing where to begin. Don’t worry as many people have been here before (including ourselves) and success leaves clues! Here are some ideas for how to go about creating a home that meets your needs in the best possible way;

PLANNING YOUR RENOVATION

Set your budget first! Assess your available capital or liaise with your Financier to determine the equity you can access to fund your upcoming project.

Reverse-engineer your plans based on your budget. Focus on reality – not fantasy. To do this, you will need to set your goals and create a list of what you need to accomplish with the renovation. You must conduct thorough research and get inspired from other examples available. Property and styling publications are a great start and attending open for inspections for upcoming property sales will help too.

Allow for contingencies as unforeseen problems will arise with your project. Renovations can sometimes be like opening pandora’s box and being able to pivot on your original plans can be crucial. Costs and time frames can very easily blow out therefore you must always budget for a worst case scenario.

Identify whether council approval is required for your works, especially if the property has particular overlays. Nothing will shut down a renovation project quicker than not having the correct permit. Ensure you engage the relevant professionals like a Town Planner or Architect to assist you here.

Project management. If you have the skill, knowledge and time to project manage your renovation, it can save you approximately 30% of your costs. Make sure you can fully commit to managing your project or else this will cost you more money, stress and time in the long run.

Engage your professional consultants – Financier, Architect, Town Planner, Builder / Tradesman. Get multiple quotes from each party before you commence the works. Ensure all your consultants have the required credentials and qualifications.

Set a timeline for all plans and works. Be aware that delays are almost guaranteed when renovating.

If you are renovating your home, determine whether temporary accommodation is required. If so, you will need to include this in your original budget.

With rental properties, it is best to plan your renovation in between tenancies and while the property is vacant.

 RENOVATING TO SELL

If you are considering a renovation because you think it’s going to result in a greater sale price, you need to do some research and be smart about what you choose to change or add. Here are some tips to get you started;

Research your demographic and audience. What is the profile of your future buyer? Is it down-sizers, up-sizers, families or young professionals? What will attract them to this kind of house? How can you make your house stand out from the others? Get a thorough understanding of your home and who it will attract. Liaise with local real estate agents and find out what buyers are looking for in a house and that area.

First impressions always count! When a prospective buyer comes to inspect your house, the first elements they will notice is the streetscape, the property façade, front gate, front garden and entry into the home. You must ensure that you plan and invest in all these areas with your renovation.

The property’s floorplan is another key feature that impacts many buyer’s decisions when it comes to picking a home. People love a functional floor plan and they are drawn to an effortless flow between each room, space and zone. Any ability to create an open plan living area, additional bedrooms or bathrooms and separate living zones will add a lot of extra profit to your bottom line.

Always remember that different people have different tastes when it comes to property and you have to appeal to the masses when renovating to sell. To achieve this, keep everything as neutral as possible – take your personal tastes out of the equation. All colours must be light and bright, wet areas must be clean and spacious, fixtures and fittings need to be classic designs and de-clutter wherever possible.

De-personalising your property is crucial when attracting a buyer as you have to give them a chance to connect and mentally ‘move in’. Buyers must to be able to visualise each room according to their family makeup therefore you have to remove any personal items like furniture, photos, fixtures or fittings that only appeal to you and your lifestyle.

The wet areas of the property (kitchens and bathrooms) are extremely important areas to focus on when renovating. These areas tend to be the most noticed by prospective buyers as they represent ‘cleanliness’ in the home. These areas are also the most costly when renovating, so be very careful with your planning.

If you’re short on money and you need a quick and effective outcome, painting, new carpets and updating fixtures and fittings are the cheapest and most effective upgrades on a small budget.

Please don’t forget landscaping! This area is neglected in 81% of houses and it goes a very long way towards your home’s appeal.

Renovating a property can be one of the most stressful decisions you encounter in your lifetime therefore you must conduct your proper due diligence and create an effective plan right from the beginning.

Beckett Property are fully licensed Buyer Advocates and highly acclaimed Property Advisors who specialise in property acquisition services across Melbourne. We encompass over 40 years combined industry experience in acquiring real estate and truly understand every aspect involved in the complete property purchase process.

If you are looking for assistance to source and acquire your next home, please contact one of our experts today for a free consultation.

The post Renovating Tips appeared first on Beckett Property.

Buying and selling your home is a very emotional process and can have an enormous impact on your finances. Especially when you are conducting both transactions at the exact same time. The big question that a lot of home owners and vendors face is whether to buy before they sell or sell before they buy? Both options have their advantages and risks associated and it is imperative that you consider all options before you walk the line.

Buying before selling.

Positives:

• Firstly, you have the benefit and comfort of time without any sales or settlement deadlines looming in the background. This luxury will enable you to make the right choice and not a rushed decision.
• There is the stability of securing the home you really want and budgeting easier by knowing the exact price you paid for it.
• If the market is stable or rising, you could benefit financially by purchasing at today’s lower price and then letting the value of your current home appreciate further before you sell it.
• You reduce the risk of being forced into costly interim accommodation or storage because you haven’t found the right property.
• It is easier to negotiate your preferred settlement terms as a buyer rather than a seller.

Negatives:

• You will have to estimate the sale price of your current home and hope that this price is achieved.
• You could be at risk of financial hardship if your home sells for less than expected or is taking a long time to sell.
• You could feel pressured to accept a sale price far below your expectations as you are financially obligated to complete your purchase transaction.
• If the sale of your current home is far greater than you originally estimated, you could have had a higher budget for your next home.
• You might not have the capital for the required deposit of your next purchase.
• You could be required to manage two mortgages for an unknown period of time, or you might need to take out bridging finance on the new property while paying off your current loan.
• If property prices fall, you could be selling your current home for far less than anticipated which could cause financial hardship.

Selling before buying

Positives:

• You have the benefit and comfort of time without any purchase or settlement deadlines on the horizon.
• You can hold out for the sale price you really want which can set you up for a better purchase budget and option.
• It is far easier to budget as you already know your exact sale price.
• If the market is stable or falling, you could benefit financially by selling at today’s higher price and then buying at tomorrow’s lower price.
• You will have the deposit available for your next purchase.
• You will know the exact date required to marry up both your settlement dates.
• If you’re looking at moving to another area, there is always the option of renting first to test it out. This gives you the chance to “try before you buy” while searching for your dream home.

Negatives: 

• Finding the right home can take longer than you expected, and you could feel pressured into purchasing a home that doesn’t tick all of the boxes because of time constraints.
• You will be required to source temporary accommodation if you can’t coordinate the same settlement dates.
• It is harder to negotiate your preferred settlement terms as you want to engage as many potential buyers as possible to achieve the highest price for your current home.
• If property prices rise, you could end up paying a lot more than you originally projected to secure the home you really want.

What we have learned over the years is that there is no wrong or right method – you need to choose whichever process you feel most comfortable with or matches your circumstances.

Whatever you do, you must first engage an A-Team of professionals to assist with every component of your planning;

• Financier: to understand your mortgage serviceability and discuss the possibility of bridging finance.
• Buyers Advocate: to guide you through your best options of your next home purchase.
• Selling Agent: to provide an accurate appraisal / estimate of your existing home.

Beckett Property are fully licensed Buyer Advocates and highly acclaimed Property Advisors who specialise in property acquisition services across Melbourne. We encompass over 40 years combined industry experience in acquiring real estate and truly understand every aspect involved in the complete property purchase process.

If you are looking for assistance to source and acquire your next home, please contact one of our experts today for a free consultation.

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Moving house can be as stressful as it is expensive. Besides the actual physical hassle of moving, there’s the added aggravation of setting up your energy and setting up your broadband – not to mention finding the right place to begin with. So where do you start?

New house, new utilities provider – new you!

One of the best things about moving house is the greener pastures it can present, particularly when it comes to your finances. It’s an excellent opportunity to cull utilities you deemed inefficient or expensive, and find services more suited to your tastes. Though some may find setting up utility services just as stressful as every aspect of the move, there are several companies out there that will make it as easy as possible for you, to the extent that they can have you connected as soon as you move in.

Compare broadband

The main reason so many Australians wind up unhappy with their broadband service is because they sign up with a plan or provider that just isn’t right for them (it’s really not too dissimilar to relationships). Before you compare broadband plans, have a think about exactly how you’ll be using your internet broadband. Perhaps you’re living alone, trying to stick to a budget and planning on using the internet very infrequently, in which case you may want to consider a 100GB plan for as low as $35. Conversely, you could be living with a few housemates, if not a large family, in which case you’ll probably need an unlimited plan, and almost definitely need a wifi plan. Depending on who you choose to go with, some of these internet service providers can also take care of your electricity.

Your new postcode makes a difference to your broadband 

The NBN is close to three-quarters finished, with full completion estimated for 2020. But until such time, the geographical difference between a property with NBN and a property without can be as little as one street. If you live in South Melbourne you’ll likely find (at the time of writing) that your NBN build has commenced and is estimated to be completed between January to June 2020, with Fibre to the Node (FTTN) being the planned technology. If you live in the heart of Port Melbourne, you can expect Fibre to the Curb (FTTC) NBN sometime in June 2019. Build on FTTC NBN has also similarly commenced in the Albert Park area, with completion estimated between January and March of 2020. Because of such, there is a high demand for NBN-accessible properties, which has caused a property prices to increase in NBN areas. You can find out the NBN specifics of your address by typing it into the rollout map.

Compare energy

Making sure that the energy utilities in your new home are up and running by the time you move is an essential practice if you wish to look after your sense of wellbeing as well as your wallet; if your new home doesn’t already have existing connections, then you might find yourself without electricity and gas for an uncomfortable period of time. The sooner you compare energy plans, the sooner you can move in to enjoy your new home and lifestyle, so it’s advised you try and sort it out before the move. If you don’t, then the retailer may set you up with a standard default plan, and these default plans are often the most expensive. After you’ve selected utility plan that’s right for you, there are some handy services that you can call directly to arrange the switch to your desired retailer and to plan ensure that the new connection is done swiftly. During your move, don’t forget to take meter readings from both properties so you can ensure that you aren’t getting overcharged for the energy used in either home.

Do I need a buyers advocate?

Buyers Advocates – also known as Buyers Agents – specialise in searching and evaluating properties for their customer. They are differentiated from real estate agents in that Buyers Advocates specifically concentrate on working for the buyer (hence their title). But do you need one? Well ultimately that’s up to you, but they do save you a lot of headaches, simply because their number one job is to look after the interests of the buyer. This can all be extremely helpful if you’re not terribly familiar with the industry. They know the market, and besides searching and evaluating the property for you, they’ll actually go to bat for you when it’s time to negotiate the purchase with the seller (or the with the seller’s agent). They can represent you in private bids, just as they represent you in a public auction; something especially appealing to people who get stressed or anxious in high pressure situations.

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