Your buying strategies need to be in sync with the current market
If you are a buyer, perhaps re-think your position.
The Inner Melbourne million dollar plus market is at its strongest levels in terms or bidders, sellers and action in three years. There is no evidence of an end in sight, despite the current mainstream media’s obsession with doom.
Yes, the market may change next week, but it hasn’t yet and your buying strategies need to be in sync with the current market (if you want to buy).
The Block is not real – it’s fairy tales and it’s not a true representation of the Inner Melbourne housing market – it’s a true representation of poorly thought out buying and selling procedures in the apartment market.
Below is the real market and we think real buyers know this.
We bought four last week (two off market) and missed a young buyer's home.
- All bar one had competition and we have 12 auctions and negotiations next week (double Super Saturday).
- We as James Buyer Advocates are experiencing significant client demand on good homes. The market right now is incredibly strong and robust and the average amount of bidders per auction supports that again, as it has all year.
- The long-term bidder average does not lie – if its consistently over two, then the market is strong and getting stronger – it’s all about buyer depth.
When will it end?
We have no idea, but it hasn’t ended yet.
Here is our good buyer plan till Christmas:
- Consider engaging a professional buying team. Break the ‘losing cycle’ and become a buyer … of a good home. Get on board your team, one that really understands property.
No, not the accountant that always says don’t do it. Yes to an accountant that actually owns property, has his or her own wealth and is successful in business.
No, not a financial planner that tells you to buy off the plan or ready made investments while they are trousering a big commission. Yes to a financial planner that understands and helps build your wealth through home ownership.
No to a banker who’s name escapes you. Yes to a private banker or broker whom you have a longer term relationship with.
No to a buyer advocate that can’t show you 50 similar homes they have bought, unless of course you want them to “learn” on your job. Yes to a good buyer advocate. But hold on, what about all those advocate fees? A good advocate can cost 1% – the market is moving more than that each month – bought two months ago and you are in front even after the professional fee. Plus, please do not think that many of your real competitors (other buyers in your price range) are not getting professional help. - Consider a plan that works. Many people's plan revolves around a fear of paying too much. Too much last year is 15% below what you may have to pay now.
- Arm yourself with knowledge. Understand that you are not just embarrassing yourself when you bid without knowledge at auction, but you are also leaving yourself open to buying poorly.
Being back on the market reselling your home in the near future is seven times more expensive (fees, stamp duty, reselling costs, interest) than the professional fee you may pay to buy well in the first place – and what about the emotional turmoil. - You don’t trust the selling agent – in fact you know he stretches the truth, yet you use him to bid to buy your dream home because he is ‘free’. Do you think the selling agent from another company, will be helping your selling agent, help you buy well. Are you really thinking this through?
You have three to four more weekends of good stock before February.
Self interest in above comments – yes, no doubt. Self interest for us and self interest for you. That’s very different from a selling agent – self interest for them and their selling client, no self interest for you the buyer.
Mal writes weekly auction reports, advice and in-depth market analysis on James' website.