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When to sell: Vic homeowners lose six figures to crucial mistake
When to sell: Vic homeowners lose six figures to crucial mistake

Herald Sun

time04-07-2025

  • Business
  • Herald Sun

When to sell: Vic homeowners lose six figures to crucial mistake

Thousands of Melbourne home sellers are shoving their 'head in the sand' every spring, amid shock new data showing the most profitable time to sell is March. Real estate experts are second-guessing the city's 'archaic' traditions and warning consistently flooding the market at the same time each year is actually helping buyers. Ray White economics team analysis of sales for the past decade show that the highest monthly median prices for houses and units across the city are set during autumn, with price gaps in the hundreds of thousands of dollars and even millions for elite suburbs like Toorak, when compared to their lowest ebb in other months. RELATED: $36m blow to super fund-backed ISPT could hit Aussie retirements National Housing Accord up to 60,000 new homes short in first year Huge blow for Australia's housing crisis It's also revealed that July is one of the best times to buy a home, with median prices this month historically at their most affordable in 108 suburbs. It narrowly outpaces January, when it's the best time to buy in 96 suburbs, however Ray White chief economist Nerida Conisbee said with a number of other suburbs recording their second or third lowest medians in January over the timeline, it was overall the most affordable month to buy a home in. While sellers in both months are likely to be very motivated to lock in a deal, potentially explaining the typically lower prices, Ms Conisbee said spring could also easily work in buyers' favour — especially for buyers who made a move before expected rate cuts drive prices up much further. 'Spring is a time when we see so much stock coming to the market, which is great for buyers – but for sellers it's far more competition,' she said. 'Even so, I would be starting to search right about now. 'That's also because rate cuts are coming, and we know as they do we will get more and more competition from buyers.' For those thinking of selling a home, the economist warned the high numbers of homes for sale in spring could be a reason to reconsider. 'On average, it does seem to be the autumn months that are better for prices,' Ms Conisbee said. 'Maybe it's time to rethink selling season. 'It's definitely well worth considering selling outside of spring because of the competition.' Professional auctioneer Andy Reid said a rethink was urgently needed by Melbourne home sellers. 'Summer and autumn have become the new spring; you launch in summer, in February, and sell in March,' Mr Reid said. 'Everyone has their head in the sand. Melbourne is the most archaic capital city when it comes to selling real estate.' He warned the city's obsession with auctioning homes at 11am on Saturday was also likely hurting sellers. 'You are putting your auction in the middle of the most productive day for any working family, so they have no time to do anything at the start of the day and then no real time to do anything proper in the afternoon.' That causes friction, which can cause some buyers who might have bid to be forced to choose between that and family events, their children's sporting commitments and their social life. Midweek auctions and those held earlier on Saturdays, at 9.30am, reduced that friction and could suit buyers better. 'We are clinging to a mentality that's stuck in the 90s,' he said. 'This is probably all working out in favour of the buyers, but with an asterisk — because it's still not fully convenient for them. 'We're adding friction to sales and that reduces competition, which the seller doesn't want, but a motivated buyer does.' The auctioneer added that for buyers who were willing to move against the crowd, there were reasons that others avoided midwinter and midsummer. 'In January, everyone has spent all their pennies on Santa, and in July everyone is waiting for their tax return to come through and boost their deposit,' Mr Reid said. He added that by maintaining the status quo, home sellers were effectively playing into the hands of home buyers. Cohen Handler buyer's advocate Nicole Jacobs said while buyers shouldn't pass over the right property in the hopes of timing a purchase, there were definitely times of year that gave them the upper hand. 'Now is a really good time to buy, and six months ago was a really good time, too,' Ms Jacobs said. 'But I wouldn't be waiting to January. You will be getting a few interest rate cuts between now and then.' For those considering selling, the buyer's agent said the core reason for a spring timeline was for homes that had a reason for doing so – which many don't today. 'If you do have a botanic garden in your backyard, you'd be crazy not to sell when it is at its peak,' she said. 'You may think you need to wait for spring, but if you don't have much of a garden, why?' She also noted that home sellers should be aware agents would try to time their sale to suit their calendar, and workflow – and not necessarily work in their best interests. 'If the agent doesn't have a lot of other listings going, they will try to persuade the seller to do so now, rather than wait,' she said. While she said she did traditionally buy a lot of homes in spring, when volumes of homes for sales were typically higher, December was also a good time to 'mop up' a lot of the properties that had struggled in the prior months. But not every suburb struggles at the same time, Eltham is among the 12 Melbourne suburbs that defy the odds and score the best results in July — when 108 others are historically at their lowest level. Jellis Craig Eltham director Tom Kurtschenko said he wasn't overly surprised, having worked solidly through winter for the past 20 years – despite agents in many other areas heading off on holiday when the weather cools. 'We like the winter months … though ideally you wouldn't book an auction on the key weeks of school holidays,' Mr Kurtschenko said. 'And, in spring, there can be a lot more choice for buyers.' He added that at the moment he was seeing a lot of people in the area looking to buy a home before selling, noting that the market would support that approach for many as prices rose. Loan Market broker Jacob Decru said there had been a surge in homebuyers seeking home approval in the past quarter, with large numbers now ready to go — and more on the way. While that could be good news for home sellers thinking about spring, Mr Decru said many of those looking to buy were hoping to make a move in July or August to beat any future rate rises that might drive prices up. 'The sentiment among buyers now is that it's a good time to buy,' he said. Sign up to the Herald Sun Weekly Real Estate Update. Click here to get the latest Victorian property market news delivered direct to your inbox. MORE: Inside Vic's $2bn housing shake up Toorak: $30m+ health-boosting mansion sold to overseas-based buyer Matthew Dellavedova sells bayside home after Melbourne exit

Millenials and Gen Z take out most investor loans as rentvesting steps up
Millenials and Gen Z take out most investor loans as rentvesting steps up

7NEWS

time27-06-2025

  • Business
  • 7NEWS

Millenials and Gen Z take out most investor loans as rentvesting steps up

A new report has shown that Millenials and Gen Z'ers are taking out the bulk of investment property loans, as rentvesting gains momentum as a way into the property market. More than 50 per cent of property investment purchases in the past year were made by millennials and Gen Z, according to Commonwealth Bank data. This strategy allows buyers to purchase an investment property in an affordable area while continuing to rent in their preferred location - maintaining lifestyle while building equity. Ray White chief economist Nerida Conisbee said that the rise of rentvesting came as the traditional path of saving for a deposit while living at home, then buying in the same city where you work, has become increasingly unviable. Her research found that only 55 per cent of millennials aged between 25-39 own their home, compared to 70 per cent of baby boomers at the same age in 1991 and 65 per cent of Gen X in 2006. Loading content... "This dramatic shift reflects more than just affordability challenges - it represents a fundamental change in how young Australians must approach homeownership," she said. Foot on the ladder Rentvesting was the approach that 30-year-old Lydia Burgess and her partner, also 30, took to get a foot on the property ladder. The Sunshine Coast-based couple snapped up their first property in the Brisbane suburb of Stafford Heights, and plan to rent out the three-bedroom house. "We were kind of serious about buying a few years ago, but didn't do anything about it and have seen prices then just skyrocket in Brisbane since COVID," said Ms Burgess. While she said they will return to live in the house one day, rentvesting the property was a way to get into a home before prices rose even further. "We can't afford to not rent it out," she said. Rentvesting had also become more common amongst her circle to get into the property market. "I can see benefits for rentvesting in the long term, particularly for your first purchase," she said. Ray White Wilston agent Holly Bowden, who sold the Stafford Heights home, said she was seeing more rentvestors come to the market, with renovated, ready-to-rent properties a popular choice. "Investors want move-in ready and ready to rent places," she said. Two ways to profit There are two approaches when it comes to rentvesting according to Ms Conisbee. Buyers can look for properties and areas that offer capital gains or a high rental yield. In the case of capital gains it means buying a property that will go up in value and therefore put you ahead. "The objective is straightforward: when it comes time to sell, the difference between purchase and sale price helps bridge the gap between your budget and your desired home price," Ms Conisbee reports. She notes that capital gains investors typically target suburbs at the beginning of medium-term appreciation cycles. Current market conditions favour areas experiencing population growth, infrastructure development, or economic transformation. The other approach is a high rental yield strategy, that is buy a property that offers a good return on rent for what you paid. "This strategy appeals to investors preferring reliable income streams and those wanting to use additional cash flow to accelerate their savings for future property purchases," Ms Conisbee notes. "High-yield properties typically exist in regional centres, areas with specific employment anchors, or locations where housing demand exceeds supply." Flexible living There are other advantages to rentvesting a first property buy. Rather than being anchored to one location by a mortgage, rentvestors can relocate for career opportunities while maintaining their investment portfolio. The psychological pressure of homeownership - being responsible for every repair, rate rise, and market fluctuation on your primary residence - is also reduced. Investor loans and tax breaks also offer advantages. "The financial mechanics work particularly well in Australia's current market conditions," Ms Conisbee notes. "Investment property loans, while requiring higher deposits and carrying slightly higher interest rates, offer significant tax advantages through negative gearing and depreciation benefits. .

‘Tremendous growth': Melbourne's prestige suburbs outperforming the rest
‘Tremendous growth': Melbourne's prestige suburbs outperforming the rest

Sydney Morning Herald

time14-06-2025

  • Business
  • Sydney Morning Herald

‘Tremendous growth': Melbourne's prestige suburbs outperforming the rest

Prestige middle suburbs with leafy streets, good schools nearby and a strong community feel have boosted demand in Melbourne's property market, helping these areas outperform many inner-city neighbourhoods in price growth. Among Melbourne suburbs that have a median house price above $2 million, Balwyn North recorded the highest growth in median house price across a five-year period to the end of March. It climbed 26.4 per cent to reach a median of $2.25 million, according to Domain data. It was followed closely by neighbouring Surrey Hills, which grew 26.3 per cent to a median of $2,195,000. Rounding out the top five were Eaglemont (24.5 per cent), Hampton (24.4 per cent) and Black Rock (23.8 per cent). Despite this growth, Ray White group chief economist Nerida Conisbee said Melbourne's prestige property sector has lagged other states. 'Luxury suburbs in some places like Perth have seen three or four times that rate of growth. South-east Queensland is quite similar. So even though Melbourne has seen growth, it's fairly lacklustre at the top end,' she said. 'Melbourne lost quite a few people to other parts of the country ... South-east Queensland in particular was the key beneficiary of population movement particularly amongst wealthier Melburnians.' Still, middle-ring suburbs such as Balwyn North and Eaglemont have outshone inner-city postcodes including South Yarra and Brighton. 'Places like Balwyn, North Hawthorn, East Camberwell, Hawthorn all have really good access to some of Melbourne's best schools,' Conisbee said.

‘Close to water': Sydney's prestige suburb outperforming the rest
‘Close to water': Sydney's prestige suburb outperforming the rest

Sydney Morning Herald

time14-06-2025

  • Business
  • Sydney Morning Herald

‘Close to water': Sydney's prestige suburb outperforming the rest

Five of Sydney's priciest suburbs, all known for their proximity to water – whether that be direct waterfront or with expansive water views – have performed best for price growth over the past five years. Among Sydney suburbs with a median house price of $4 million or more, Bellevue Hill recorded the highest median house price growth over the five years to end of March, climbing 71.1 per cent to $9,625,000, on Domain data. Bellevue Hill was followed by Northbridge, with a median house price of $5,160,000 and growth of 68.1 per cent. The remaining top five spots were taken by Mosman, which rose 63.9 per cent to $5,373,500; South Coogee, up 62.1 per cent at $4,400,000; and nearby Coogee, up 60.8 per cent over five years to $4,325,000. Rounding out the top 10 were North Bondi (up 46.2 per cent), Woollahra (up 44 per cent), Hunters Hill (up 40.8 per cent), Vaucluse (up 39.9 per cent) and Manly (up 37.6 per cent). Ray White Group chief economist Nerida Conisbee said interest rates being 'so low' during COVID was a reason for luxury property to perform well over the five years. 'We tend to think of super wealthy people not using borrowing to buy homes, but a lot of them would have because when you can borrow at an extremely low-interest rate, it makes sense to borrow money and then invest your cash,' she said. 'So, not all of those areas are on the beach, obviously, but a lot of them are quite close to water. So that was also a significant trend; that when people were locked down, they did want to be in places that were walkable, close to water, in a really pleasant environment.' High interest rates had led to a softening of the luxury property market, Conisbee said.

‘Close to water': Sydney's prestige suburb outperforming the rest
‘Close to water': Sydney's prestige suburb outperforming the rest

The Age

time14-06-2025

  • Business
  • The Age

‘Close to water': Sydney's prestige suburb outperforming the rest

Five of Sydney's priciest suburbs, all known for their proximity to water – whether that be direct waterfront or with expansive water views – have performed best for price growth over the past five years. Among Sydney suburbs with a median house price of $4 million or more, Bellevue Hill recorded the highest median house price growth over the five years to end of March, climbing 71.1 per cent to $9,625,000, on Domain data. Bellevue Hill was followed by Northbridge, with a median house price of $5,160,000 and growth of 68.1 per cent. The remaining top five spots were taken by Mosman, which rose 63.9 per cent to $5,373,500; South Coogee, up 62.1 per cent at $4,400,000; and nearby Coogee, up 60.8 per cent over five years to $4,325,000. Rounding out the top 10 were North Bondi (up 46.2 per cent), Woollahra (up 44 per cent), Hunters Hill (up 40.8 per cent), Vaucluse (up 39.9 per cent) and Manly (up 37.6 per cent). Ray White Group chief economist Nerida Conisbee said interest rates being 'so low' during COVID was a reason for luxury property to perform well over the five years. 'We tend to think of super wealthy people not using borrowing to buy homes, but a lot of them would have because when you can borrow at an extremely low-interest rate, it makes sense to borrow money and then invest your cash,' she said. 'So, not all of those areas are on the beach, obviously, but a lot of them are quite close to water. So that was also a significant trend; that when people were locked down, they did want to be in places that were walkable, close to water, in a really pleasant environment.' High interest rates had led to a softening of the luxury property market, Conisbee said.

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