Weekly Property News Sept 11 – Sept 18

Dean O'Brien Director of OBrien Real Estate

“Never be afraid to ask the question”

Hi Guys, it’s Dean OBrien from OBrien Real Estate with another edition of theĀ  Property News for 2020 where real estate information is on the house.

With people having a little more time on their side people are asking questions more than ever, and that’s great news because those that ask will generally receive. You’ll either receive a yes, a no or a maybe. We all know the old saying nothing ventured nothing gained. And I urge you to ask your insurance company, ask you electricity and gas supplier, ask you bank and ask your council. The cost to win a new customer costs 10 times more than to keep one.
It’s that time of the year again where all property owners receive their rates and valuation notices for the coming year. Surprisingly councils have decided to not freeze any rate increases and are forging ahead with the 2.5% cap increase that was determined on 31 December last year. In many cases, individual rates bill may increase or decrease by more (or less) than the 2.5% cap amount. Ratepayers have the opportunity to object to the valuation placed on their property which ultimately determines most of the increase. Over the valuation period of 1 January, 2019 to 1 Jan 2020 most suburbs across Melbourne have flatlined in growth.

As a service to property owners, you can call upon your local real estate to assess and assist you with price data in your suburb to ensure your increase is in line with the market increase which can help you if you decide to object to the valuation placed on your property. Two of Australia's big banks NAB and CBA are taking the gloves off against their fight with the buy now pay later providers like Afterpay by launching no-interest credit cards. This new breed of charge card will be great for competition and unlike BNPL services, it will be covered by the credit code. The move has won praise from consumer advocacy CHOICE.

The zero-interest offer does come with certain terms and conditions, so make sure you understand how it works to avoid any penalties. And the good news this week is with many stay-at-home Aussies showing a strong desire to upgrade their homes during the pandemic, as we walk our neighbourhoods, we are noticing they are looking the best they ever had. Gardens are manicured, there are many landscaping projects been undertaken, lots of paint jobs, new fences and decks and even the cars in our driveways are sparkling. Our streets have never looked better and the judging for the most attractive and cleanest street for the municipalities will be a hard one to judge this year.

People are making change during the pandemic and we expect Australia to follow a similar pandemic-induced trend in the US, where people are increasingly moving out of apartments and into single storey family homes. It is also expected that businesses based in and around central Melbourne will also look to move to the suburbs. Property number around the state are subdued as you would expect, the were no auctions across the state as reported by CoreLogic all 6 auctions scheduled were withdrawn. The sales numbers for the week can in at 800, to give you a comparison to Sydney they recorded 2150 sales.

As you can appreciate most of the sales numbers in Victoria is coming from Regional Victoria due to private inspections being possible. And the good news continues for Regional Victoria with the necessary “trigger point” being reached in the Victorian Government’s roadmap. Regional real estate agents as of 16 September will now be able to hold auctions outdoors with up to ten people in addition to the current private inspections. And lastly looking at this graph supplied by Heron Todd White, it’s their September Review of the National Property Clock which they released earlier in the month and Melbourne has slid down just slightly to now firmly be in a declining market.

Ntional property market Australia

That’s all for this week, I’m Dean OBrien and remember the information provided is of a general nature you should always seek independent legal, financial, taxation or other advice in relation to your unique circumstances.

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