WORDS OF ADVICE FROM REAL ESTATE INSTITUTE OF VICTORIA CEO, ENZO RAIMONDO
Media commentary on the topic of real estate continuously ranges from optimistic to bleak which makes it difficult for consumers to know or understand what is happening in the marketplace. The positive news of the RBA interest rate cuts signals favourable outcomes for the Melbourne property market and now more than ever before it is important to get all of the facts correct. What is really happening in real estate? Real Estate Institute Of Victoria CEO, Enzo Raimondo delivered information in a straight forward manner to help advise our readers of the prevailing market conditions.
THE CURRENT STATE OF THE MARKET
ENZO: “We started initially off better than last year. It’s going through an uncertain period with the media talking about unemployment and with what has been happening in Europe. All of those things do have an impact on confidence but I believe the market has stabilised this year. I think from the second half of the year, the market should improve in terms of price growth rather than staying flat. We might see a little bit of a pick up in property prices.”
THE MARKET COMPARED TO PREVIOUS YEARS
ENZO: “There’s no doubt the property market since the global financial crisis has been through a rollercoaster since 2009. 2010 was very strong, 2011 was weak. What we’ve seen this year is a pick up in activity and there has been an increase in the number of properties in the market.”
THE WESTERN SUBURBS
ENZO: “The western suburbs is the best possible place to buy at the moment. I personally believe the western suburbs as an established area will show continued growth even in difficult times. I think it’s a very safe area to purchase/invest in. The median prices of suburbs such as Yarraville, Williamstown and other areas have grown at a greater rate than any other area in Melbourne.”
ADVICE FOR BUYERS
ENZO: “For those who are thinking of buying, now is a good time to buy. In particular, Yarraville and Newport are showing signs of growth and demand. These are the areas where property prices are still quite buoyant.”
MESSAGE FOR FIRST HOME OWNERS
ENZO: “This probably sounds old fashioned but it is a good idea to get into the property market sooner rather than later. The Government is going to cut stamp duty for first home buyers down by 50 per cent over three years which is a good saving. Stamp duty on a median price home in Melbourne is $28,000 so if you get $14,000 off it that’s a great saving. “
- Buy in an area that’s close to the CBD, transport and infrastructure.
- If you buy a property this year, don’t expect to make hundreds of thousands next year. It takes time.
- Save a deposit rather than borrow most of it if possible.
- Take advantage of first home owners incentives.
MESSAGE FOR INVESTORS
ENZO: “For investors I think it’s a great time to buy. The market is in a position of stability. I think in the next five years we will see a significant growth in prices. Now is the right time to buy.”
AUCTIONS
ENZO: “I think areas such as the western suburbs are particularly good areas for auctions because there is such demand and vendors are more likely to receive the best possible price through an auction. Auctions suit properties that are desirable, period homes and where there is competition. “
BEST PLACE TO BUY IN MELBOURNE
ENZO: “You can’t go wrong within 10 to 15 kilometres of the CBD. I think that part of Melbourne, the radius of 10 to 15 kilometres is probably a safe bet and properties will continue to go up.”
MELBOURNE REAL ESTATE ON AN INTERNATIONAL SCALE
ENZO: “When you compare Melbourne with Singapore, Hong Kong, Los Angeles and those cities around the pacific, Melbourne is very cheap by comparison. Buying an apartment in the Docklands is far cheaper than Singapore, LA or a similar area.”
THE IMPACT OF THE INTERNET ON THE MARKETING OF PROPERTIES
ENZO: “We still have a few years where there will be a combination of print and internet. I think we will get to a point in the near future where the next generation will not even look at print. The internet is certainly going to change the access for information about properties, contacting the agents and information about what the market is doing. I think where we are going next, the mobile space is where it’s really going to take off. I think that people are starting to expect information instantaneously. You have to adapt and innovate in this market.”
