Category Archives: Latest

The Block 2018 apartments | Industry Insider
Andrew Date

By: Andrew Date

Will The Block apartments sell in 2018? Back

If you’ve only recently tuned in to this year’s season of The Block, you may be surprised to learn what St Kilda’s Gatwick Hotel was like before the teams worked their magic. Forget sparkling bathrooms, fresh paint and designer furniture… we’re talking drugs, murder and some seriously icky rooms.

It’s pretty amazing then that the freshly renovated apartments that make up this former home of the down and out are speculated to be auctioned off for $2.2 million to $2.75 million a pop! It leaves us wondering, is this really what the apartments are worth? Or has the hype of the show blown these prices out of proportion?

The Industry Insider team had the privilege of having a firsthand look at these apartments in the flesh – here are our thoughts.

The Gatwick of the past

The Gatwick would have been a beauty in its heyday. It was built in 1937, a luxurious modern hotel with a sweeping staircase and high ceilings designed to house navy personnel between world wars. There was even the drawcard of a famous oriental chef.

In the 50s it was purchased by a Maltese-born woman named Vittoria Carbone, who began offering discounted lodging for the city’s hard done by. When she passed away in 1998, her daughters continued her legacy but struggled to keep up with the cost of the location. By then, The Gatwick had become synonymous with crime, Yahoo 7 reporting 74 crimes between 2013 and 2014.

New kids on The Block

Before The Block teams began work, The Gatwick was seriously run down. You can see some pictures of its condition before renovations began.

Channel 9 purchased the building for almost $10 million in 2017, and has divided what was once 66 rooms into 4 luxury apartments and 2 penthouses. (They also reportedly found 389 syringes while cleaning up the site.)

It’s a very different story now, though. If you’ve been watching over the past few weeks, you will have seen all five teams work tremendously hard to transform the building. And their hard work is predicted to pay off – with online property listings for the apartments touting a price range of between $2.2 and $2.75 million.

Media hype or not?

If you were to ask us 12 months ago if we thought renovated apartments like this would fetch these sorts of prices in St Kilda, we’d be happy to predict that they’d sell at auction without a problem. However, with current market conditions favouring the buyer, this series could be very different to the past couple of years.

We hope for the sake of the contestants and the agents who have been working tirelessly behind the scenes that they all achieve great results on 27th October.

The median house price in St Kilda over the past year has fallen by 21.8% to $1,029,000, while unit prices have increased by 1.4% to $527,000. Other properties listed in the area are on the market for upwards of $3 million – however they offer a land component. The Block apartments are of the art deco era and they offer varied floor spaces and outlooks from each of their open space areas.

We wouldn’t be hugely surprised if some of the apartments end up passing in at auction – with the combined power of negative media and the fact that a majority of buyers’ borrowing capacity has greatly reduced in light of the Royal Commission.

Nevertheless, media hype directly generated from The Block has also drawn considerable interest to the St Kilda area. The Gatwick has had a bad name for a long time, and many local residents are pleased about it being cleaned up, bringing property value and liveability in the area up considerably.

Our firsthand take

The Industry Insider team took a walk through the renovated Gatwick apartments recently, and we’re thoroughly impressed with what we saw. Kerrie and Spence’s apartment hosts a stunning kitchen area, while Bianca and Carla blew us away with their outdoor alfresco area. Plus, we were inspired by what Courtney and Hans have done with their living areas. It’s interesting that the 2 penthouses are smaller than the 3 other apartments – but they still wow with high ceilings and natural lighting.

Norm and Jess have played the game well. Their penthouse faces south, however it feels light and bright. With the Domain magazine cover under their belt, this will no doubt help with some extra market exposure.

We think that Sara and Hayden, though positioned as underdogs, are in with a good chance as they’ve carefully selected their apartment from day one. The northeast facing terrace is ideal and the apartment has an eclectic flair throughout. If their reserve is set realistically, we think they can win!

The apartments border the more sought after St Kilda West precinct and certainly offer an ideal lifestyle, close to the foreshore and Albert Park. However, we are slightly disappointed that they only come with one carpark per apartment. We wouldn’t expect these to be sold with the idea of investment in mind, as they’re more likely to be purchased by people looking for the St Kilda luxury lifestyle.

It will be interesting to see what happens at auction on October 27th, and what the apartments will really sell for. We’re also keen to see the flow-on effect from this year’s season of The Block into property prices in the St Kilda area. If you’re interested in bidding on one of the apartments, Industry Insider have our finger on the pulse when it comes to Melbourne property. Contact us on 1300 181 997 for more information about how we can help you on auction day.


How the Metro Tunnel will transform Melbourne | Industry Insider
Andrew Date

By: Andrew Date

How the Metro Tunnel will transform Melbourne Back

If you’ve visited Melbourne in the past few months, or you’re a local resident, you will have noticed the massive infrastructure works currently underway as part of the $11 billion Metro Rail Project.

This massive piece of construction involves a twin 9km rail tunnel running from Kensington to South Yarra as part of a new end-to-end development from Sunshine to Dandenong. Commuters, we’re pleased to inform you that the project will create capacity for an additional 504,000 peak passengers each week across the network.

The rail tunnel will cause traffic and amenity disruptions to nearby residents in the short-term, but there will be many positive outcomes for property owners and commercial tenants. These include increasing accessibility to public transport and reducing noise, traffic and pollution on the roads. Here’s a snapshot of how the Metro Tunnel is transforming our marvellous city.

Providing economic benefits       

Melbourne’s transport network was last overhauled with the construction of the City Loop over 30 years ago. And, with Melbourne’s population expected to grow to 7.7 million by 2031, it’s about time our main rail network was updated to reflect this growth.

It’s now clear what the Government’s business case for the Metro involves. For every dollar invested, will be a return of $1.50 when the wider economic benefits are considered. Over 60% of project benefits will flow to public transport users, which will have flow on effects for easing congestion and reliance on cars.

Re-shaping the cityscape and creating jobs

Construction on the Metro started in 2016, and the whole project is expected to be completed by 2026. The 45 projects currently in construction are directly contributing to 12,000 jobs across Victoria.

Construction of the eastern tunnel entrance precinct is underway, with the entrance at South Yara’s Siding Reserve. 50 workers are currently preparing the tunnel entrance sites for construction, with more than 150 workers set to be on-site by the end of October, including a mix of apprentices, trainees and engineering cadets. Works will require the demolition and rebuilding of William Street Bridge, which will mean temporary rail disruptions on the Cranbourne and Pakenham lines, but which will result in a better rail network long term.

 Providing long term benefits to surrounding suburbs

There will be five new underground train stations as part of the Metro Tunnel project for North Melbourne, Parkville, State Library, Town Hall, and Anzac stations. Along with greater accessibility for public transport passengers, the stations will also provide retail opportunities and benefits to the local areas, including relief to the heavily congested Swanston Street/ St Kilda Road tram corridor.

In particular, Anzac Station planned for the corner of St Kilda Rd and Domain Road will service thousands of residents who live and work there. It’s expected to carry up to 40,000 passengers daily by 2031, supporting some 33,000 workers and 17,000 residents who live within 800m of the location. Designed with a striking canopy above the tram interchange, the station will have three main entrances to provide passengers with an integrated journey.

As expected, property prices have remained stable around the Domain precinct. The apartment market is growing in this area, such as the stunning Mayfair apartments, along with purchases of new commercial spaces on St Kilda Road, which will benefit from the convenience of a new station.

The Melbourne Metro is set to transform our city by providing a host of new benefits in the years to come. If you’re looking to buy or sell property in the areas affected by the construction works, we can help provide informed advice about how to achieve your property goals. Call us on (03) 8374 7652 for your no-obligation consultation.


Why spring might not be the best time to sell | Industry Insider
Andrew Date

By: Andrew Date

Why spring might NOT be the best time to sell Back

We get a lot of sellers asking us: “should I sell my house in spring?” With your garden looking so fresh and buyers coming out of hibernation, it sounds like the ideal time to put your house on the market, right?

Maybe not – the season isn’t the only thing that affects how your house sells. Let’s take a closer look at why spring might not be the best time to sell and what you can do to improve your chances.

More competition in the market

The real estate market typically goes quiet in winter and picks up in spring when the nicer weather lures buyers out to inspections. While foot traffic is great, it also means that there are more properties on the market, increasing competition.

If the demand from buyers doesn’t match up with an increase in available properties, it can cause an oversupply in the market. Many homes become stale and can sit there unoccupied for months.

Serious home buyers will be there – rain, hail or shine

If you need to get out of your home, it may not be worth waiting until next spring. Someone who’s serious about buying a home will show up to your open house – no matter the weather.

In winter, stormy weekends tend to keep people who are really just entering the market away as they typically don’t brave the rain. However, serious buyers will race to see a property, umbrella in hand, especially if it’s the first time it’s being shown.

Consider winter as an option because competition is lower. If your home is priced and presented well, buyers will still come.

Tips to prepare your home for a spring sale

There really isn’t one best time of the year to sell your home – apart from when your property is 100% ready to be sold.

If springtime appeals to you, here are a few things you can do to get your property set for success:

  1. Make sure your property is well aired – winter tends to bring mould, so remove any spots from walls, windows and ceilings by diluting white-vinegar in water as a cleaner.
  2. Give outdoor areas a facelift – with better weather in spring, be sure to fertilise lawns and gardens, wash decks and driveways, and add a few indoor plants to bedrooms.
  3. Accessorise – think brighter colours for cushions and towels as they can act as a mood booster to your home.
  4. Invest in good photography – it’s often the first thing that buyers see, so make sure you invest in getting some great internal and external photos taken of your property (and it might be worthwhile to pay that little bit extra for colour adverts).

 

The reality is that there are so many things that affect how well your house will sell, such as property trends, location and market competition. There’s no one time that’s going to suit everyone, so it’s best to get expert advice – and that’s where we come in. We know the ins and outs of the industry, so if you’re thinking about selling, give us a call us on (03) 8374 7652 for your free no-obligation consultation.


How much does a buyer's agent cost | Industry Insider
Andrew Date

By: Andrew Date

How much does it cost to hire a buyer’s agent to help you buy a property? Back

This is typically one of the first questions that the majority of people ask when they
contact Industry Insider Property Advocates through one of our many different
marketing channels.

In this article I’m going to describe the most common fee structures that buyer
advocates and buyer agents around Australia are charging their clients.

How do I find a good buyer agent/advocate?

The reality is there are over 300 buyer agents and advocates in Australia, and they
all offer very different levels of quality and service.

Industry Insider is an active member of REBAA, The Real Estate Buyers Agents
Association of Australia. Established in 2000, REBAA exists to raise the profile of the
industry by establishing guidelines for the professional conduct of real estate buyer’s
agents nationally.

You can read the REBAA Code of Conduct to see what sort of guidelines they
require buyer’s agents to adhere to (and please take careful note of point 19 on page
3).

If the buyer agent or advocate you are interviewing isn’t a REBAA member, you
should always ask them why. REBAA is Australia’s only national professional
association for buyer’s agents. In order to become a member, agents must go
through a stringent process. Once an agent is a member, they have to adhere to the
above strict code of conduct.

In my personal opinion, if you are looking to engage a professional buyer’s agent or
buyer’s advocate to assist with one of the largest financial decisions of your life, you
should only be employing a member of the above association.

Around Australia, there are over 60 different companies who abide by the REBAA
code of conduct. Selecting a buyer’s agent from this association will ensure you are
dealing with a professional that has sound values and ethics and a history of proven
results for their clients.

How much will it cost?

Now to the fees. I personally believe the main reason people ask about the fees first
is because they don’t understand what it is we actually do as a buyer’s agent or
buyers advocate.

Until we understand what you as a buyer are searching for and how much input you
would like during the search, it is difficult to offer you a price on our services and a
tailored solution. The reason for this is that there are different service offerings with
the majority of the buyer agents/advocates around Australia.

Here are the three most common services that a buyer’s agent or buyer’s advocate
will offer their clients.

A tailored end to end service, where you sit back and relax while we do all the
work for you. This consists of clarifying the best asset based on your borrowing
capacity and family’s requirements. We will locate, evaluate, complete the due
diligence and negotiate the best terms and purchase price on your behalf. This
service at Industry Insider is our most popular as it also offers access to a range of
properties that are not advertised or listed for sale on real estate websites.

A negotiate only service, where the buyer will assist with the sourcing of
properties. Then the buyer’s agent/advocate will use their years of negotiating skills
and extensive network to produce you a better result than you could if you were
trying to buy the property yourself.

Auction bidding service, where we attend the auction and take the stress and
uncertainty away and control the bidding.

At Industry Insider both our end-to-end service and our negotiate only service require
an engagement fee between $2,000 – 3,000 to start the search. This fee is to cover
resources of the search and is refundable after 14 days, only if you are not happy
with the level of service you have been provided. (I’m pleased to say no one has
asked for a refund so far!)

Around Australia there are two common ways in which the majority of buyer agents
and buyer advocates in our industry charge. Below are examples for you to consider
based on your purchase price.

A percentage based on the purchase price. (Complete Service)

The percentage-based model is very similar to how the majority of the listing and
selling agents across our country work. However, this percentage-based option only
works in our industry if the fee is fixed in advanced or is scaled down.
Below is an example of what it looks like when we use a percentage-based fee.
Client Budget of $1,500,000 – $1,700,000
Property Purchase Price = $1,650,000
Engagement fee of $3,000 inc GST to start (off set against purchase)
Purchase fee of 2% inc GST of the purchase price up to $1,500,000
Total fee = $30,000 as we agreed to fix the fee in advance against $1,500,000

A flat fee based on the purchase price. (Complete Service)

The flat fee model is agreed to in advance. Again as above, there are some selling
agents who also charge a flat fee for their services.
Client Budget of $700,000 – $800,000
Property Purchase Price = $800,000

Engagement fee of $3,000 inc GST to start (not offset against purchase)
Purchase fee = $12,000 inc GST
Total fee = $15,000 inc of GST

Please note I added two examples above that have different engagement fee
structures. Eg 1. Offset and Eg 2. Not Offset against the purchase fee. It is important
for you to understand which offering you are signing up for because this will affect
the amount you are required to pay once the property has been purchased.

Is a buyer’s agent/advocate worth it?

In our industry you have to understand the value of your skills, your network your
ability to read the play and of course your experience. I say to my potential clients, “If
I can’t negotiate the best fee as a Director, then how can you expect me to negotiate
the best result for you when I am negotiating with the seller’s agent?”

If you hire an experienced buyer’s agent they will save you time, money and stress
and the value they provide should cover the fees they charge.
At Industry Insider, more than 80% of our business is referral. This is a great sign as
our clients keep coming back and also telling their friends and family about their
experience.

This is why the best source of business for Industry Insider and majority of the buyer
advocates across Australia comes in two forms.

1. Referral business from clients who have already used our services before. This is
because we already have a higher level of trust and credibility in their eyes.

2. When a client has previously engaged our buyer advocacy services and they
share their story with a family member, friend, work colleague, business owner about
the experience they had with Industry Insider.

Fun fact  – Did you know that in the USA and Canada 90% of people engage a
buyer’s agent or buyers advocate to help with their property purchase?

I truly believe if you DIY your property purchase, chances are you will either over pay
or buy the wrong type of property. This can cause significant financial stress down
the track.

As a last food for thought, I pose this question to you. “Would you sell your own
home, or would you engage a professional selling agent?”

If you answered NO you would engage a professional selling agent, then why on
earth would you buy a property without professional guidance and support?


South Yarra and Melbourne's inner south | Industry Insider
Andrew Date

By: Andrew Date

South Yarra & Melbourne’s Inner South A Spotlight On Victorian-era Homes Back

Over the last 5 or so years, Melbourne’s inner South – encompassing suburbs such as South Yarra, Windsor, Prahran, and more – has boomed as a property hotspot. The area’s proximity to the CBD, vibrant culture, plethora of restaurants, parks, sporting venues and more have all attracted the attention of buyers.

But it’s not just the location that sees 30-something-year-olds and investors flock to the Inner South – it’s the kind of buildings and architecture available. Particularly coveted are the Victorian-era single-fronted and double-fronted houses.

Here, David Hewitt (Property Consultant for Industry Insider and owner of his very own Victorian home) discusses the appeal of these houses, what potential buyers should look out for, and how Industry Insider can potentially help you find and buy your dream property.

Victorian homes: what’s all the buzz about?

The Victorian-era properties scattered throughout South Yarra and the surrounds date back to the Gold Rush. Way back in the 1850s-60s, these exquisite homes were built for miners, who, evidently, had a lot of cash to spend.

And the obvious capital invested in them 150+ years ago has stood the test the time; with features like double brick, high ornate ceilings, and an attention to detail that, frankly, you just don’t see these days. Even if someone had the money to try and replicate a Victorian single-fronted or double-fronted home today, they would struggle to find the expertise to do so, especially in our fast-paced, economically-focused world of property.

What you should know before buying a Victorian-era home

Being such charming, detail-oriented, high quality, and unique homes, it makes sense that these  beauties have caught the eye of so many. Over the last 4 or 5 years, this increased demand has been noticeable in property prices – rising by around 40%.

As we’d expect, budget is the primary factor for many buyers itching to land their own Victorian-era home. Within South Yarra, Prahran, Windsor, and the surrounding suburbs, the very minimum you should expect to pay is around $1.1 million.

That’s not even taking into consideration possible costs for renovations. There are still homes within the Inner South that are yet to get a facelift, and, if you want to save money, these might appeal to you. However, renovating a period home, especially from the Victorian era is a labour of love. Although they have incredibly solid foundations, there is often a lot of work required to getting them up to scratch, thanks to the era they were built in and how much has changed since then.

Of course, you can buy a home that’s already been renovated and brought into the modern age, but this will significantly drive up the purchase price.

A Victorian isn’t for everyone…

The appeal of Victorian homes has put them on the map, but does that mean they’re for everyone? When working with a potential buyer, Industry Insider takes into consideration a whole range of factors – such as borrowing capacity, lifestyle, what they want out of a home, property history, return on investment, whether they want to renovate or a key-turn solution, etc.

Sometimes, it’s evident that another type of home will fit the brief better. For example, Edwardian homes are built with similar aesthetics and high ceilings but have lower level of details, and thus, a lower price point. Or consider modern homes – built more recently in the 1960s and 70s and in a ‘blockier’ style, but with a similar level of quality craftmanship that can be enjoyed in a Victorian.

At the end of the day, helping you find your dream property is our aim, and what that ‘dream’ is might not always be what you originally had in mind. If you want to find out more about Victorians or other period properties, the inner suburbs of Melbourne, or how we can help you, call us on 1300 181 997 for your free no-obligation consultation.


Investing in property for your financial future | Industry Insider
Andrew Date

By: Andrew Date

Investing in property for your financial future: featuring Dean from Industry Insider Back

At Industry Insider, we firmly believe in the power of property as a foundation for building your financial future.

And we’re not alone, with roughly 2 million Australians investing in property as a financial strategy.

With the low-interest rates we’ve enjoyed over a stretch of years, as well as steady demand for rental properties, it’s no wonder this very tangible ‘bricks and mortar’ investment area continues to rise in popularity.

As with all investments, solid preparation is the key to long-term success. So how can new investors push their property goals in 2018 and beyond? Industry Insider Adviser Dean Munro provides a few of his own insights from his professional and personal investment experience. Dean is a quantity surveyor and property investor who has steadily built an impressive portfolio of 8 properties – all while still in his 20s.

Investigate the financial benefits for you

Many investors spend their investment dollars on property believing the growth in capital gains will steadily increase their wealth.

Capital growth is a major factor that makes a serious impact on your wealth over time. Even with a small, affordable investment property, with a solid capital growth of 5-10% over a number of years, you’ll likely be looking at a significant return on your investment – setting you up for even more lucrative investment options.

Consider the benefits of tax offsets related to the costs of renovating and making changes to your investment property. Once you’re able to make a start, these benefits can be a helpful boost, allowing you to take gradual steps towards greater wealth as an investor.

To be in a strong position with your financial decision-making, talk to someone in the know – preferably an Industry Insider, or experienced financial adviser. They’ll make sure you’re aware of the grants, benefits and tax concessions available to you over the course of your property journey.

Create another income stream

For many of us, relying on our salaried 9-5 job as our only source of income is a thing of the past – such as the impact of smart property investment and property ownership.

Dean from Industry Insider has used property ownership (he now has a portfolio of 8 properties in and around Melbourne) to springboard options for added income and freedom. Being flexible with where and what he buys, as well as stints in share houses, has helped him cement his place on the property ladder.

The most obvious income benefit of property investment is the rental yield it can deliver. This is where Dean strongly suggests keeping potential tenants front-of-mind with every property investment decision you make.

Take advantage of the sharing economy

Like Uber and Deliveroo, Airbnb has become part of our economic landscape, shifting us into a new digital reality and disrupting whole industries. This is particularly apparent when looking at how Airbnb has altered the tourism industry since its introduction to Australia.

Without the overheads of traditional accommodation, travellers can opt for alternative, ‘local-style’ accommodation that suits their needs, whether it’s for a few nights or a month-long visit. It’s a trend that everyday property investors are quickly catching up with – including Dean.

Dean currently lists a property through Airbnb as a short-term rental through their listing platform. His earnings from this subsidise his mortgage, offsetting his initial investment outlay and providing that all-important cash flow.

Would it work for you? If the property is conveniently located, in a great condition and you’ve got the time or resources to service it through cleaning and maintenance, this could become a brilliant second income to support your property investment goals.

No matter what stage of the property buying journey you might be at, Industry Insider is always at hand to point you in the right direction. Contact us on 1300 181 997.


Real Estate Sleepout | Industry Insider
Andrew Date

By: Andrew Date

Our way of giving back to our Community Back

Real Estate Sleep Out

Here at Industry Insider, we try our best to recognise the privileges and challenges that each of us been dealt in our lives.

As people who are accustomed to the peaks and troughs of life, we know all too well that sometimes individuals need a helping hand to achieve their potential.

Indeed this is a core tenant of our organisation.

This is never truer than in our youth.

We have been offered the opportunity to be one of those helping hands but in order to affect change, we need the support of many.

In the work that we do here at industry Insider, we believe that we are privileged to be able to help many people achieve the goals that they have worked so hard for, however, there are many people who, because of their circumstances, are in need of help.

With over 44,000 Australian Youths living out on the street on any given night of the year, we feel that once again it is our privilege to be in a position to help.

This July the entire Industry Insider Team, plus a few valued supporters, have committed to Sleeping Rough as participants in the Real Estate Sleep Out.
This event is run by the Youth Off the Streets Charity and raises money for their various programs, which include, crisis and short-term accommodation all the way to long-term residential care, counselling, rehabilitation and secondary education.

We know that everyone gives back to their communities differently, however, we ask that you support us in this endeavour.

After all, many hands make light work.

If you would like to donate please click HERE to go to our donation page, please remember that every little bit makes a difference.

Have a nice weekend!


Home loan approval tips | Industry Insider
Andrew Date

By: Andrew Date

Home loan approval tips for first home buyers Back

At Industry Insider it’s our great pleasure to help many first homebuyers make their way onto the Melbourne property ladder.

It’s always a buzz seeing the transformation from hopeful buyer to successful new homeowner smiling in front of the SOLD sign.

Behind the scenes, there’s often a lot of education and support involved in helping our clients achieve this life milestone.

To streamline this process, we regularly refer to our trusted colleagues across the industry, including mortgage broker Dylan Day and the friendly team at Loan Market in North Melbourne.

That’s who we spoke with recently to compile these useful loan application tips and insights.

Planning ahead: Are you ready for a home loan?

Spending your nights trawling online real estate listings and envisioning the perfect kitchen splashback might not translate into being truly ‘home loan ready’.

Chances are, you’ve been planning for a long time and ardently saving your hard earned cash to be able to put down a home deposit. So how do you know if you’re ready to go?

Dylan Day suggests a thorough review of your recent financial behaviour so you can win the banks over.

“It’s more important than ever to be aware of your own conduct ­– how you spend your money, your living expenses, any overdrawn accounts, credit cards and things like HECS debts.

If you’re going to borrow half a million but you’re late with paying a phone bill, the banks might not feel comfortable approving your home loan.”

This might be a timely reminder to tighten the reigns across all of your financial commitments and spending habits before you set down the home loan approval path.

This way you’ll be in the best possible position to confidently apply and manage your mortgage.

 

Starting the loan approval process

Dylan works with many young first home buyers and sees his role as encompassing financial education as much as securing the right loan for his clients.

He understands that people are sometimes daunted by the process and the sheer weight of their obligations when it comes to a home loan.

He explains, “A point of difference I look to provide is tailored financial education to make sure clients understand the significance of their mortgage as a liability – not something to be feared but to be understood and planned for.

This education always includes a free initial face-to-face appointment to discuss the client’s homeownership goals and financial situation.

In this initial appointment, the broker explains the mortgage and can go through the breakdown (schedule) of costs.

Dylan stresses the importance of having an independent home loan expert talk you through this often complicated schedule of costs and terms – particularly as an inexperienced buyer.

 Parental guarantees, LMI & mortgage myths

There are some cases when first home buyers are able to get some financial assistance in the form of a parental guarantee.

Dylan manages this process regularly and says it doesn’t need to be a fearful arrangement (for parents or the first home buyers).

As long as both parties are aware of their risks and obligations, a parental guarantee can be a convenient and cost-effective step towards home loan approval.

 

Dylan hopes to dispel the myth that parental guarantees are a recipe for a full-on family feud: “The parental guarantee is sometimes a good way for buyers to avoid LMI (Lender’s Mortgage Insurance).

In times gone by, parents would gift their money to their kids for a property.

A parental guarantee is an extension of that in some ways.

This needs to be explained correctly by an experienced mortgage broker who can talk you through the process and responsibilities.”

 Working out your borrowing capacity

Your mortgage broker (or the Loan Manager you deal with directly at a bank) will carefully examine your borrowing capacity by weighing up your income, expenses and any liabilities.

That means that by the time your application is lodged, all that’s left to do is wait for the final approval.

Dylan reminds us that “a ‘no’ from one bank does not necessarily mean a ‘no’ from all banks” – helpful encouragement for a nervous stage in the buying process.

Deciding on the right loan

Ultimately you have to be comfortable with the agreement you’re entering into.

A broker can present your options and help you clearly navigate your choices obligations – but the final decision rests with you.

If you’ve done the hard work through planning and carefully considering your financial situation then you’re ready to take that all important step onto the property ladder – congratulations!

No matter what stage of the property buying journey you might be at, Industry Insider is always at hand to point you in the right direction. Contact us on 1300 181 997.


Buying a penthouse or apartment on St Kilda Rd | Industry Insider
Andrew Date

By: Andrew Date

What you should know, before buying a Penthouse or Apartment on St Kilda Road Back

My partner Libby and myself are lucky enough to live in the multiple architectural award-winning building YVE, located at 576 St Kilda Rd Melbourne.

We love the building for all its amenities, and of course its design. But what we enjoy the most about living where we live is the location. We’re close enough to the city, without being at the very heart of the action (i.e. the noise and crowds).

We are spoilt for choice when it comes to green open space: Albert Park Lake, Fawkner Park and the Royal Botanic Gardens are all a short stroll away.

There are a number of tram routes at our doorstep every 3 minutes, Wesley College across the road and Albert Reserve Tennis and Cricket Club just down the road.

Add to this the Metro Tunnel development, which will include five brand new underground train stations, in the inner ring of the Melbourne CBD. St Kilda Road residents will benefit from the new Domain station planned for the corner of St Kilda Rd and Domain Road.

The train station will service thousands of residents and workers who live and work in the St Kilda Rd precinct and travel across the city. This will make commuting from the south side to the north side of the CBD a breeze. If you are a resident, you will have to wait a while, as the project is due to be completed by 2025-26.

If you are a resident of the area like myself, you will know there has almost always been a crane and construction underway in the area!

We’re now seeing a shift from office buildings, to more specific boutique apartment living. Over the last three years, eight commercial office towers have been acquired for redevelopment to residential apartments.

Lindsay Fox is also aiming to replace Linfox’s office at 498 St Kilda Rd with a 148 unit 20-storey tower which will overlook the scenic Fawkner Park.  Qualitas purchased the office next door to Fox Headquarters in 2015 and are currently midway through a 300 million luxury apartment conversion.

The commercial market has been running hot along St Kilda Road. During the last 12 months, the recent results are indicating that foreign investment in the commercial space is growing at a rapid rate.

As a property advocate, I thought it was pertinent to share the top commercial and residential penthouse and apartment results, which have transpired over the last 12 months along our beautiful boulevard.

In November CBRE sold 312 St Kilda Road for $77 million to Singapore’s Tong Eng Group. They snapped up the prominent St Kilda Road office tower in Melbourne, from the Myer Family Investments.

In August, Vantage Property Investments acquired 420 St Kilda Road for $69 million.

Another international company purchased 390 St Kilda Road for paid $98 million.

Recently a Hong Kong based company, purchased 324 St Kilda Rd for 42 million, with a yield of approximately 5.8%

A Taiwanese developer has also paid 34 million for 596 St Kilda Road, with this equating to a record $18,000 per sqm. This is one of four buildings along St Kilda Road that will be withdrawn from the office sector and will be converted to residential apartments.

1 Bowen Crescent South Melbourne, which runs into St Kilda Road was listed by Josh Rutman from CBRE Commercial and sold for 14 million to a Sydney family. It currently returns $669,285 per year in rent.

My Top Residential Results on St Kilda Road in 2017

1903/1904 – 576 St Kilda Rd.

Bec and Lleyton Hewitt’s YVE Penthouse – listed by WHITE FOX Real Estate and sold by Ryan Fisher for an undisclosed amount in the vicinity of 9 million in August this year. The standout result for 2017. Offering six bedrooms, seven bathrooms, and eight car parks plus a tremendous 740sqm of internal living space and 440sqm of terrace and some of the best views of Melbourne.

1206/368 St Kilda Road

Sold in January for 2.35 million. Offering three beds, two baths, two cars. Extra features include a 24-hour concierge, a resident’s library and boardroom, a large pool and spa, a gym and sauna and proximity to public transport and some of Melbourne’s finest epicurean delights and entertaining venues reinforce the namesake of The Royal Domain.

3203/368 St Kilda Road

Located opposite the Royal Botanical Gardens. Offering 3 bedrooms, 2 bathrooms and 4 car spots. Sold for $5.4 million in February this year.

202/401 St Kilda Road

Three beds, three baths, three car spaces. SOLD April 2017 – $3.6 million. The sanctuary of internationally acclaimed interior designer David Hicks, this one of a kind and luxurious three-bedroom, the 3.5-bathroom apartment is secluded within the world-class Elenberg.

303/401 St Kilda Road

After one year on the market, it eventually sold for $3.7 million in February 2017

250 St Kilda Rd Southbank

Sale Price $2.72 million in May – 2017. –  3 beds 2 baths 2 cars.

1608 St Kilda Rd Southbank

The Melburnian – Melbourne’s most Prestigious Address! 2 bed – 2 bath, 2 cars, sold in May 2017 for $2.720 million

1605/576-578 St Kilda Road – YVE

SOLD, 17 Feb 2017 $2.2million – Leased at $1,790/W – Previous Sale $1,870,000 in June 2007.

If you are thinking of buying a luxurious Melbourne Penthouse or apartment or would like to learn more about the commercial properties along St Kilda Road. Please feel free to give me a call on 0402 346 810, and we will help guide you through the best on and off-market opportunities available in the Melbourne market.

Andrew Date
Managing Director
IndustryInsider.com.au


Summer Opportunities in the Melbourne Market | Industry Insider
Andrew Date

By: Andrew Date

Summer Opportunities in the Melbourne Market Back

Summer in Melbourne is traditionally a time for chilled out barbecues, the Ashes test series, Australian Open and swimming between the flags. But the heat of summer in Melbourne isn’t a particularly sizzling season when it comes to property. In fact, with many real estate offices closed for the New Year break and with school holidays in full swing, the auction market closes down for 6 weeks! Agents have already booked auctions in for February and March 2018.

While some property buyers might see this as a time to switch off, at Industry Insider we see it as an opportunity to get ahead in your property search for 2018. Here’s why:

Off market and pre-market opportunities

With no more auctions booked for 2017 and the next phase starting up late February, there are agents who are open to taking offers on properties before the auction campaign begins. If the seller’s motivation is high – (i.e. they have bought elsewhere) this could be an extremely good opportunity!

Fewer buyers = less competition & more negotiation power

With many Melbournians planning their holidays and downtime around the New Year period, it makes sense that there’s a little less competition for buyers in the summer months.

The Melbourne property market then typically heats up a notch in February, with a return to ‘business as usual’ in auctions and private sales.

Get a leg up on the competition and head into summer with the ability to make strong offers on the properties you want. To do this, you might want to reach out to a buyer’s agent who can help find the right properties for your budget.

At this stage, you should have secured finance pre-approval and have a solid idea of what you’re looking for in a place and location.

Summer time’s on your side

If you’re like the many Melbournians who take time off work over the Christmas and New Year period, chances are you have a bit of time to yourself as the mercury rises. Why not use this to your advantage and spend some time in the property locations you’re interested in?

You could take the family or your partner for a picnic in the local park, have a look at the area’s homes and amenities and generally get a feel for the neighbourhood. By the time 2018 is in full swing, you’ll already feel like a local and be able to make a more informed property purchase.

Christmas leftovers

Don’t dis the Christmas leftover… Just as turkey sandwiches and new toys can be a Boxing Day delight, so too can the property that doesn’t sell at auction in December. This is your chance to take advantage of the fact that some vendors are looking to sell and settle ASAP.

The start of the year can bring major life changes like work relocations, retirements and new additions to a family – this can put pressure on vendors to sell early in the New Year. If you present a good offer on a property that someone needs to leave, it’s likely you’ll be in a good position to secure a deal.

An experienced buyer’s advocate like Industry Insider can help you make an informed decision in any season by providing industry expertise, market insights and negotiating skills, to ensure you make a smart property purchase. Give us a call to get started.


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