There were 309 auctions held in Melbourne last weekend ending 28th April 2019 showing a clearance rate of only 56% according to the www.realestate.com.au.
Based on the current auction clearance rate buying conditions still are favouring buyers which is great news if you’re a buyer! Also, it looks like these buyer’s market conditions are set to continue for now for the remainder of this year at least. Lucky buyer’s but be aware you must be thorough in your due diligence to ensure you’re not over-paying or buying a “dud or a lemon” property!
In about 3 weeks’ time, we will know the outcome of the Federal Government election which ultimately will decide whether there will be property negative gearing and capital gains tax changes. A vote for Labor will certainly have a profound and negative effect on the real estate prices and property markets generally as well have a major effect on the Australian economy. However, if you’re a buyer entering the real estate market for the very first time these changes what Labor are offering could well be a god-blessing!
For a confidential discussion of where to buy in Melbourne, contact Zac Newbold directly on +61 (0) 418 144 644 or via his website by clicking on this link.
Your Australian Property Tips #
5 Reasons Why NOW is the best time to BUY Property in Melbourne. In fact, buying conditions in Melbourne have never been better!
Reason #1 Down, down, prices are down!
The year that was showed consistently larger quarter-on-quarter decline in Melbourne and Sydney. In some suburbs of Melbourne, we are actually now seeing prices down as much as 30% from their peak in 2017. While it’s impossible to perfectly time the market, prices may drop another 5% by the end of 2019 in some price ranges and locations across Melbourne.
Reason #2 There’s less buyer competition!
With a lot of buyers running scared now, it’s the perfect time to buy real estate in Melbourne! Less buyer competition means lower prices. Following the Royal Banking Commission findings, banks have significantly tightened their lending conditions, which has considerably reduced buyer activity.
Reason #3 It’s a buyer’s market!
With less buyers in the marketplace, it’s now the perfect time to negotiate a much better price. Make sure you do your proper due diligence on your selected property, so you can use these facts as leverage when you negotiate with the selling agent. Remember “knowledge is power!”
Reason #4 The playing field has been levelled!
The tighter the lending conditions are hitting investors hard, with new restrictions by the Australian Prudential Regulation Authority (APRA) aiming to limit lending to heavily geared investors.
Reason #5 A history lesson!
You only have to cast your mind back a decade to see the wisdom of buying now. When the GFC hit, it was the savvy cashed-up investors who were buying, whilst others were either selling or running scared and doing absolutely nothing! Those who bought then are certainly laughing now. As you can see, the market will inevitably always rebound and those who took the calculated risk and capitalised on the short-term down-turn will be amply rewarded in the long-term.