- A-Graders are still selling! However, this was the only home we saw sell under the hammer today. There were 3 bidders at 2 Irymple Avenue, Glen Iris which sold for $2,750,000, John Morrisby.
Contents:
1. Under the Hammer
2. Is Now a Good Time?
3. Dr. Good Strategy
4. Around the Grounds – Auction Reports
5. Market Fresh – one-liners on 25 Top end homes
6. Letter to Mr Turnbull and Mr Shorten
This is stark news, isn’t it?
The stats above are real results, they’re this market, they’re today at 6pm and they’re very different from what we have seen during the last few years.
Today a smaller sample, but…… Next week some of the bigger auction kahunas are out. Today was an entrée, a pre-dinner drink to the May Market and our 3-Week 100 Auction Test.
On a lower stock day, we attended and reported on 17 auctions and amazingly at 6.00pm today:
1) Only 1 of the 17 homes was bought under the hammer – that’s a percentage of less than 6% of Top-End homes going to auction in Bayside and Inner East were sold with “it’s on the market” transparency and hands in the air.
Huge ramifications for the buyer before and after auction strategies and a big question to sellers – is auction the way to go?
Sorry Mal and Gina, did you say there were more auctions than bidders at the Top-End today?
Yep!
To put that in some perspective, the same numbers happened during the 2008 GFC. This is no GFC, but……. the market continues to ease Post Easter.
2) James Bidderman, that is, bidders per auction was less than 1 today.
The clearance rate was 47%, but it was on a small sample.
3) Volcanologists were disappointed, although Jetstar and Virgin pilots were happy, as they could safely fly the Melbourne skies. We were volcano free – not one 4 bidder auction on auctions we attended.
Pre-auction offers. A number of homes had their day in the sun, well actually it was in the dark behind closed doors, as they were bought before – eg, 18 Hillcrest, Kew (Scott Patterson and Jeremy Desmier), 12-14 Hamilton in Malvern (the irrepressible Jeff Gole), 20 Evansdale, Hawthorn (Hamish Tostevin) and 12 Rockley Road in South Yarra (Justin Long) to name a few.
It’s a lot better than a year ago if:
1) you really, really want the home and;
2) you’re selling an A-grader and buying a B-grader that you have the skill to turn into an A-grader or;
3) you’re buying an A-grader that has been overlooked or misunderstood.
You may be up to a million dollars better off on a change-over price with a buy-sell this year, rather than last year. Especially if you are looking to upgrade to the Top-End and you are a doctor or a professional with established incomes which the bank’s favour.
Today a home was sold over $4,000,000 at almost exactly the same price as the seller’s new buy. And while you could argue the sale today may have got another $200,000 or so last year – you could also make a very strong case to say that the home that was bought a month or two ago by the seller, could have achieved another $1,000,000 to $1,250,000 fairly comfortably.
However:
If you get an agent call two days before an auction intimating “we need you to offer” and you’re the only one or it’s passed-in to you and the “Clayton’s Reserve” you are then told is $300,000 above the quote – then all of a sudden…
You may also be overpaying in the hundreds of thousands if you are not clear on your target property’s “true” market strength.
The current time in the market cycle is our absolute favourite market – no, not because it’s easier to buy – it’s not. It’s our favourite market because if you think and don’t panic then good strategies, that are well executed, can make a real difference to your end result.
You buy and sell with process and a bit luck – as Clint Eastwood says – Are you feeling lucky?….., or do you have a good process?
This is a time in the market cycle when some things can begin to shine for surgeons, doctors, dentists and anaesthetists and other professionals, who are looking to upgrade.
How Mal and Gina?
Strategy one: Heritage at Discount, Reno and 10 year period home
Well here is one simple strategy – buy a home with Heritage in need of a reno, at a discount. It’s cheaper than in 2016/2017 and sometimes a lot cheaper.
Now renovate smartly and enjoy for the next 10 years then sell a finished period home.
OR
Strategy two: Buy and Bulldoze, New Build and 10 year dated new
Buy land – which is still running hot, competing against OS buyers. Build expensively because builders still have lots of work and enjoy for the next ten years, only to find it was great, but your home’s facade has dated (like most do), then sell.
The dollar difference on a $4,000,000 buy now and say an $8,000,000 sell in 10 years could be as much as $2,000,000 and probably at least $1,000,000 (costs and mortgage holding for 10 years). So fees for a good buyer advocate showing the right v the not so right home ($40,000 to $60,000) – or less than 5% of the notional profit and they found the off-market home and that is before you/they start negotiating the price of the buy or the sell. Mmmmm – Dr. Good Strategy.
Same land, same home, same lag time with the council and $1,000,000 to $2,000,000 difference in after-tax dollars.
That’s just strategy and before you even start negotiating!
One strategy difference of many on why buying now could be good for you!
No rush to buy but there is a rush to start thinking Dr. Good Strategy.
81 Kerferd Street, Malvern East. Bought after auction with a power lift, undisclosed over $5 million. 3 bidders Hamish Tostevin. A-Grader!
Malvern East, 81 Kerferd Street (Hamish Tostevin, Marshall White) bought after auction, undisclosed, 3 bidders
Toorak, 56 Mathoura Road (Justin Long, Marshall White) bought after auction, undisclosed, 0 bidders
Glen Iris (Stonnington), 2 Irymple Avenue (John Morrisby, Jellis Craig) under the hammer, $2,750,000, 3 bidders
Read all 17 auction reports here
Secret Service? 4 Aird Street, Camberwell, bought after auction. $2,450,000 James Tostevin, 1 bidder.
Camberwell, 4 Aird Street (James Tostevin, Marshall White) bought after auction, $2,450,000, 1 bidder
Kew, 18 Miller Grove (Doug McLauchlan, Marshall White) bought after auction, $3,375,000, 2 bidders
Canterbury, 6 Victoria Avenue, passed in, $3,150,000, 1 bidder
Read all 17 auction reports here
2 out of 3 interested in you David! 49 Dinsdale Street, Albert Park. David Wood, bought after auction undisclosed, 0 bidders.
Sandringham, 5 Medhurst Street (Mark Earle, Buxton) bought after auction, $1,620,000, 1 bidder
Albert Park, 49 Dinsdale Street (David Wood, Hocking Stuart) bought after auction, undisclosed, 0 bidders
Brighton East, 43 Plantation Avenue, (Peter Kennett, Hocking Stuart) bought after auction, $4,500,000, 2 bidders
Read all 17 auction reports here
Mmmm, I don’t think so – no more. 6 Victoria Avenue, Canterbury. passed-in $3,150,000 with 1 bidder.
Toorak, 5 Sargood Street, passed in $4,010,000, 1 bidder
Kew, 2 Royston Court, passed in $3,250,000, 0 bidders
Brighton, 4 Maher Street, passed in $2,400,000, 0 bidders
Read all 17 auction reports here
Six weeks of new stock to the market before it shuts until spring.
James Buyer Advocates is active on and off-market right now with (Richard Earle Kew, Liz Jensen Sorrento, James McCormack South Yarra, Michael Gibson Toorak, Steve Tickell Sandringham and Leonard Persichetti Elwood) all assisting in $26,865,000 of purchases in March.
We visit and assess homes daily (below is a sample) and can bring specialised reports on the dollars (land values, discounts for Heritage, capitalisation costs), the property’s issues (architectural or not – with independent architectural advice) and the strategies needed (agent negotiation, buy/sell leverage, time savings) to a no obligation, confidential, 45-minute meeting.
This is just a sample from Kew we have rated:
18 Hillcrest Avenue KEW – “corr blimey, fire in the bathroom – and hey wow what a garage, with its Batman and Robin entrance – see James rating here – money reports available BOUGHT BEFORE
Here are the other Inner East and Bayside Areas
We have specialist reports on and off-market for Hawthorn, Kew, Canterbury, Inner Camberwell, Hawthorn East, Toorak, Armadale, Malvern and Malvern East, Albert Park, Middle Park, Richmond, Elwood, Brighton, Brighton East and Hampton.
A sample of homes Mal/Gina have visited and assessed currently on the market (all in the last month).
NO COMPUTER GENERATED REPORTS at JAMES (all mind crafted) WOW, that’s different!
56 Kerferd Street Malvern East – big, well built and I like the flows, south facing rear though. This is a market benchmark and John has some good results in the Gascoigne.
11 Wolseley Grove Brighton – a really distinctive townhouse that has a lot going for it. Market benchmark.
11 Tregarron Avenue Kew – big land, minimal street frontage, house tricked up – I think STCA this is a land buy and should go well as such – just may take some time.
19 Elgin Avenue Armadale – a brilliant street presence that may be taken up by a dreamer – I hope it is – because ultimately STCA a bulldozer may well win the day.
33 Broadway Camberwell – no question about the location or the facade, the questions come after that and there were many that I couldn’t answer.
20 Riversdale Court Hawthorn – not as spectacular as the one just sold up the street, the views are restricted somewhat by the foliage, still doesn’t change the location – AAA.
40 Evansdale Road Hawthorn – at the lower end of the scale due to irregular land and garage challenge, but still ok parking. This is a quiet area, sub $3m – in Hawthorn how common is that? BOUGHT BEFORE
23 Rochester Road Canterbury – New guys on the block – Buxton Boroondara – This is a big rambler, with changing levels and on a street that carries traffic. The land size and agent skill should still mean a strong price will be paid, more than likely by an OS or new to Australia Asian buyer.
93 Sackville Street Kew – modern day hotchpotch, would have put more into the plan and less into the build.
6 Grange Road Kew – land only, but it is Sackville Ward land.
6 Victoria Avenue Canterbury – found the levels too challenging.
48 Christowel Street Camberwell – click here for James Home Rating
48 Sackville Street Kew – too hard a block, due to Heritage positioning, unless you are a specialist buyer.
56 Mathoura Road Toorak – I like this home’s feel – BUT it is a sandwich, crusty sourdough outsides, with an unknown, mushy filling. BOUGHT AFTER AUCTION
12 Rockley Road South Yarra – never been a favoured street of mine for new build and this is an STCA block. For me, this buy is all about – yes great location, but what price is market – next door was better home? BOUGHT BEFORE
12 Kenley Court Toorak – This is a benchmark land sale. The house is for most, temporary accommodation as the plans for a new build go through council. Let’s see is Toorak is still north of $11,500 per sqm – I think this location will say yes – the interest will be in the deal and how you best do it.
17 Ferncroft Avenue Malvern East – I know the land is irregular, but I loved it for a new build (STCA) with park views. Thumbs up. BOUGHT AT AUCTION
5 Sargood Street Toorak – initial advertising was confusing – it’s north-facing land only – small block – has to be upwards of $10,000 per sqm?
81 Kerferd St Malvern East – see our James Home Rating on this high-quality Gasgoine home. BOUGHT AFTER AUCTION
Brighton and Brighton East Benchmarks
Only a mother could love this picture. Peter Kennett in all his glory gets away 43 Plantation, Brighton East after a sizable post-auction power-lift. It was an A-grader! Winning Photo: Emily Powell
Been through both of these homes below and there are real differences. A year or two ago these would have flown out the door at auction as this area became super hot and super trendy – close to St Leonards and Haileybury.
Agent Pete Kennett, is a bloody good one and you will need to be up for the challenge as No, both are NOT AUCTION sales – one is a “smokes and mirrors” EOI and the other may be a post-auction sale – let’s see. Both these will be benchmark sales.
7 Edro Avenue Brighton East and 43 Plantation Avenue Brighton East PASSED-IN $4,375,000 and BOUGHT AFTER $4,500,000
You’ve heard us talk about Balwyn Specials – well these two homes are Brighton Specials. If Toorak is land – bulldoze and Hawthorn is classic period; then Brighton is encapsulated in these two. This is going to be interesting.
Also been through 22 Linda Crescent Hawthorn, 64 Well Street Brighton, 17 Chelsea Street Brighton, 9 Barnard Road Toorak and 44 Central Park Road Malvern East, 40a Lansell Road Toorak (click here for James Home Rating), 2 Irymple Road Glen Iris, 24 Glen Road Hawthorn and 36 Grandview Road Brighton, 77 Brunel St Malvern East, 52 Vincent St Glen Iris, 3 Collington St Brighton (passed-in) 63 Wheatland Rd Malvern, 19 Ashley Grove Malvern, 16 Glassford St Armadale
Off-markets in April (sample) – in Gascoigne Malvern East – circa $5m and circa $3m, Grace Park Hawthorn circa – 2 x $5M and $12M, Glen Iris (Stonnington)- family home just under $3m and multiple in Brighton $3m – $6m, family homes.
Specialist Home Buyers – $2m to $10m and beyond.
We can supply confidential contacts for some of the specialist doctors for whom we have bought.
Johnny Clarkson – one the gentleman of our sport – has suffered a fall on the ski-slopes – snow skiing, not apres skiing, we hope. Still up and working and fighting the good fight we notice, but with a limp. Let’s hope the world sees you sans that bloody moon-boot soon!
Bought* – Indicates property has been bought. We are a buyer rating company and a buyer advocate company, and we use the word bought instead of sold to give the website a buyer flavour. We do not buy all the properties listed on this website, therefore we often rely on an advertised price or the selling agent to indicate the bought price and occasionally the result may be inaccurate.