There were 590 auctions in Melbourne last week with 457 selling and 133 passed in, in just 60 of those on a vendor bid. In addition to the auctions there were also 297 private sales. The result, was a clearance rate of 77%.
My insights: The nearly 10% increase in clearance rates can be partly attributed to demand from first home buyers hitting the market with the added firepower of the First Home Buyers Stamp Duty Concessions.
FHB's can now purchase a home and pay no stamp duty up to $600,000 from $600,000 to $750,000 they enjoy stamp duty reductions on a sliding scale. FHB also receive a $10,000 grant if they buy or build a new home up to $750,000.
The investor's Opportunity: This creates an opportunity for investors in the price points outside the sweet spots for FHB's. While the buying focus sits under $600,000 investors should move their just above, at the low $600,000 and just above the $750,000 cut off point where interest thins out abruptly.
So, investors look for low- mid $600,000 established properties and high $700,000 for new properties for less competition from FHB's. With some investors now unable to qualify for finance with the majors, real estate agents and buyer advocates are seeing fewer investors in the market.
My insights: The regulators have hit the major lenders with tighter lending restrictions so we have researched the market and found several good lenders with more generous lending policy to assist our clients access good loans at competitive rates.
So, if you have been considering a property investment purchase give us a call and we will work through your best finance options and arrange a pre-approval you can take advantage of the opportunities available in today's market place