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As savvy property investors it’s important to keep on top of events and changes which can have an impact on our property investments. There are so many analyses, opinions and articles about investing in property out there that it can be tough trying to keep up with what’s happening in property.
I’d like to take a moment to share some of the more interesting articles I’ve come across this week.
House prices continue to grow
As reported by Australian Property Investor, the most recent Bendigo Bank/Real Estate Institute of Australia (REIA) Real Estate Market Facts Report shows that house prices are continuing to grow in various locations across the country, with Melbourne showing the largest increase year over year of an amazing 8.4%.
Price increases are, however, rising unevenly. REIA President Peter Bushby reports that, “The weighted average capital city median house price is now $549,898 with Sydney, Melbourne, Brisbane, Adelaide and Darwin all contributing to the increase. However Perth and Canberra both dipped and Hobart recorded the biggest drop.”
Despite this variation in markets, when you compare values to the same time last year, the median house price in capital cities (excluding Hobart) has risen by 6.1%.
For more information, read the full article here.
How to get your low offer accepted
Property Observer’s Jennifer Duke shares advice from EPS Property Search’s director Patrick Bright.
- Never disclose your budget to the selling agent
- Never let the agent see you fall in love with the home
- Always put your offer in writing
- Never let the agent know if you are motivated to buy
Once they know your budget, the selling agent will do everything they can to extract every cent out of you, especially if they haven’t reached the reserve or the vendor’s bottom line yet.
A few rules I tell my clients before we inspect a property is not to talk about the property until we leave. Don’t make comments or talk about the property while we’re there and don’t answer the sales agent’s questions. You could save yourself several thousand dollars by just keeping quiet.
By law, the agent must communicate all offers to the vendor but this doesn’t always happen especially if the agent considers the offer ‘too low’. If you put your offer in writing there’s much less chance of the agent putting it to one side. If there’s written evidence of an offer it’s easier for the agent to get caught out if they don’t pass the offer on to the vendor.
When you’re going to open homes and talking to sales agents on the phone always play the indifferent buyer. Never let them know what your motivation is to buy. If they know you’re in a tight situation they’ll use that information to negotiate with you, just as you will use your knowledge of how motivated the vendor is to sell to your advantage. If you’re buying property with your partner, it’s a good idea to let one person do all of the talking with the agent.”
Click here to read more of this very interesting article.
Australia’s New Government
AMP’s Shane Oliver offers his take on what our new government will mean for investors, taking a look at the campaign promises and what we can expect should they be fulfilled.
The policies of the new Government if implemented are likely to lead to smaller government, less regulation and over time improved productivity and economic growth.
Expect a mini-budget around November that may contain more aggressive budget savings.
The historical experience combined with the more business friendly approach of the Coalition suggests a positive share market response over time.
The key uncertainty relates to the new Senate.”
Find out more reasons to be positive here.
As you can see, great things are on the horizon for property investors as our economy continues to grow in strength and all market indicators show growth in many areas.
Have a great weekend, and if you enjoyed this list, please share it with your friends by clicking a social link button to the left of this article.