Taking the long term view of Melbourne property investment

The REIV is advising buyers to look beyond the Melbourne CBD and inner suburbs for their first property purchase.

 

REIV CEO Geoff White said buyers are increasingly looking for value in regional Victoria.

 

 

New growth areas provide buyers with the opportunity to enter the property market at a more affordable rate, yet still on a main VLine service into Melbourne.”

 

 

Many of these areas, especially towns within commuting distance of the city, are also recording solid annual price increases and are poised for future growth.”

 

Investment and infrastructure initiatives by both the state and federal government are likely to deliver further capital growth in these areas.”

 

Suggestions: choosing the right location,  melbourne property market,  understanding the property market,  smart property investment,  jeff grochowski,  expert advice

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How To Avoid Buying A 'Dud'

It's the last thing anyone wants - you purchase your investment property, and nobody wants it, leaving you out of pocket and forced to reduce your expectations.

You bought a dud.

While there's never a guarantee with any form of investment, there are some steps to take to maximise your potential and reduce the chance of ending up with the best house on the worst street.

 

First, don't just look at the house, or the street, in isolation.

"Nice street, the lawns are mown, and I can see kids playing."

Drive around the neighbourhood with a critical eye. Look at the quality of houses, the types cars in driveways and evaluate the surrounding area, comparing it to the street you're looking at. Many investors have been caught out buying in the best street, but in a bad area.

 

Next, don't look at potential if you aren't going to do any immediate improvements.

Tenants don't care about what you're going to do to the property in a few years time, and they certainly aren't interested in potential. If you're looking for a house or apartment with your ideal tenant in mind, be sure to make all the required improvements up front. If you're not going to make any changes for the short term, then you're buying the property for what it is - so be sure to judge it's potential based on that.

 

Beauty is in the eye of the beholder; and never has this old saying held truer than in the case of property investment.

Where you see a pool and great outdoor living area, parents may see a poorly fenced drowning hazard. Likewise, with granny flats separate to the house; technically they are another bedroom, but it's unlikely anyone's going to put their six-year-old in there.

Consider practical realities, over what's 'unique' or 'interesting.' Again, you tenants aren't purchasing this property and will be thinking more of day-to-day living, than what makes the house stand out.

 

But beauty does matter. Your tenants may not be buying the house, but they'll still be inviting their friends and family around for barbeques, hosting dinners and having coffee with the neighbours. Nobody wants to live in an unattractive house, and many duds are created through potential tenants driving straight past, or not clicking through on a rental website. Regardless of the market, a house with good street appeal is likely to garner more interest than one which is less appealing. Remember, that moving into a house - even a rental - is an emotional time, and your tenants want to feel that they have more than a roof over their head. If their home is a source of pride, they'll care for it, rent it for longer and do their best to make you aware of any issues.

 

While nobody wants a dud, sometimes they are hiding in plain sight - and are often disguised as a bargain. Keep in mind that there's more to investment than finding the worst house on the best street, and you'll be able to approach potential duds with your eyes open, and perhaps even turn them around.

 

Jeff Grotowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.

 

www.accruerealestate.com.au

 

 

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Apartments vs. Houses

'Land is the only things worth money.'

'Apartments don't appreciate in value.'
'Stick with standard bricks and mortar.'


All of these statements have an element of truth to them - but do they apply to you?


This decision can of course, be influenced by budget, but there are various things to consider before you decide on a particular strategy, thereby cutting off all other options. Apartments can present incredible opportunities to a savvy investor, as long as variables are taken into account and it fits with the overall investment strategy.


Luxury apartments for example, can attract high-end residents, who pay high body corporate fees in order to ensure the ongoing quality of their home. In fact, when presented with high ongoing costs in the form of body corporate fees, many investors are put off – but if fees are low, the body corporate can be limited in it's ability to maintain the development to a high standard.


This is not to say that there aren't great opportunities at the lower end of the market, but cutting of options and focusing on a 'type' of residence - apartments or houses - will limit the pool of options available. Remember, as an investor, it's unlikely that you're going to end up living in the home, so don't let your own bias, which may not be in line with those of the market, dictate what shouldn't be an emotionally led decision.


Just because you would never dream of living in an apartment, doesn't mean that there aren't opportunities for you to profit from other people wanting to; there are many people who don't share your lifestyle or ambitions, and your financial goals should take precedence. Thinking like an investor involves stepping into other people's shoes, and removing your own presuppositions about what is 'good' and 'bad.'
When evaluating a property for rental, consider who would likely rent it, what would they look for that could increase their interest – and rental payments – and why they would choose to stay long term.


If your goals are more short-term, take the same approach, looking at the property through the eyes of your potential buyer, rather than based on your own opinions.


Being an astute investor involves understanding the demographics of the people you will be renting or selling to. The hardest part is not understanding what different types of people think – you probably know that already – but removing your own thoughts and opinions from the process. When purchasing a high ticket item, it can seem counterintuitive to buy something that you don't necessarily love – which has likely been your process for most of your life – and instead investing in something that fits better with someone else. However, unless you are planning on working with people exactly like you, which will severely limit your investment options, understanding not only areas, rental rates and average sale prices, but also the demographics of people within those areas is mandatory for achieving the best results from an investment standpoint.

 

Jeff Grochowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.

 


www.accruerealestate.com.au

 

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The Right Advice From The Right People

In our last article, we explored some myths that are still prevalent regarding property investment. Today, we're going to explore in more detail where you can get the best information, and more importantly what sort of information you should be looking for.

As we mentioned last time – gaining an understanding of property investment is challenging, not because of the lack of information, but because there is too much misinformation.

Let's talk about what you need to know, and the first thing is getting clear on your plan. You see, there is no such thing as a "good" property or a "bad" property, all have their advantages and disadvantages, and while some may be good for nothing other than storing equipment, that makes them useful to someone. So, the first step is to determine exactly what you want to achieve, before you even begin to consider how you are going to achieve it.  You wouldn't be happy if your doctor prescribed you medication without first evaluating your symptoms, and property is the same – there is no magic pill, and each diagnosis should be based on individual requirements.

Once you have a strategy in place, it's time to research. You'll need to know the right areas, types of houses, costs and so on and this can seem incredibly daunting. The trick is, to take each opportunity based on its merits, and have good advisers around you – but where do you go for that advice?

 

"Tell me what you've done."

 

Always ask a potential advisor what they have done the past and why you should listen to them. If you are looking online for input, be sure to Google the person and ensure they are a good fit.

 

Impartial third parties

 

 Impartial third parties, such as government entities and online statistics bureaus, are a great source of relevant information. However, hard figures should not be used in isolation, and there is often hidden opportunity behind the numbers. Importantly, if someone is offering their advice for free as an impartial third party, be sure to ask what they have done, and evaluate their suitability.

 

"What happens if?"

 

 The last thing you want, is to end up in a situation where you are forced to liquidate your property because you didn't have contingencies or a strategy for dealing with unfavorable circumstances. Good accountants and financial advisers with relevant property experience will offer you advice based on the numbers as week as the potential downsides.  When going into any investment, you should be aware of both the potential opportunities and have structures in place to deal with the unexpected.

 

Without a strategy, the investment journey is encumbered from the start. But with a robust plan in place, and contingencies should something go wrong, you are setting yourself up for success.

Likewise, having a strategy for the type of advice you will take on board and from whom is crucial to avoid misinformation or well-intentioned but incorrect intelligence.

 

Jeff Grochowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.

 


www.accruerealestate.com.au

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Investing In Melbourne

Melbourne is a difficult city to invest in; there are many 'up and coming' areas that are often perceived as opportunities to 'get in early,' and old and established areas where you can get the 'worst house on the best street.'

 The thing is, ideal opportunities don't choose to appear at the most opportune moments. Cities like Melbourne, with diverse areas and demographics, created through a combination of historical anomalies, social constructs and effective urban planning, create a complex puzzle to solve from an investment standpoint. Indeed, Australia offers more than its fair share of these challenges as a result of few cities being intentionally planned, and many areas shirking logic and analyst's best guesses, either experiencing exponential growth or avoiding it altogether. 

As a result, when putting together an investment plan for purchasing in Melbourne, it's important that flexibility, maneuverability and speed are seen as crucial elements. Many investors choose to set their mind at ease by getting to know certain areas intimately, understanding average pricing and theoretically avoiding a situation where they can make a poor decision due to a lack of knowledge. However, as previously mentioned this can be incredibly limiting and result in lost opportunities, poor decisions or both. It's important to know to this point that a poor decision may not mean a bad property, but rather not getting the maximum result for the money invested.

A wise move may be to put a focus on trust. Bringing educated people around you, with current knowledge of the market, and upon whom you can genuinely trust to put your best interests first, means you have the combined power of a qualified adviser and enough knowledge to broaden your horizons beyond limited geographies. You can proceed with the confidence that when an ideal opportunity appears, which meets all the criteria outlined in your investment plan, you can respond quickly and without hesitation – meaning you don't miss out when the ideal property, or ideal property in disguise, appears in front of you.

Just as important, is to ensure that your advisers meet the three key criteria of flexibility maneuverability and speed – the last thing you need is to be waiting an extra day for a response from your trusted advisor, only for their caution, or lack of appreciation regarding timeframes, to cost you a good investment.

The bottom line is appreciating that a thorough understanding of the entire Melbourne housing market is unrealistic, and the mere concept is limiting. Through joining forces with people and organizations who are demonstrative of the knowledge you want, and have the pedigree to deserve your trust, you put yourself in an advantageous position. The Melbourne housing market is littered with those who are looking for an ideal investment which fits their limiting and overarching criteria. Flexibility, maneuverability and speed are your crucial allies, and through harnessing the knowledge of others, and leveraging that knowledge into trusted relationships, you have an incredible advantage over others in the investment market.

 

Jeff Grochowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.

 


www.accruerealestate.com.au

 

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Debunking Property Investment Myths

 

One of the most frustrating things about investing in property, is not the shortage of information – but the plethora of misinformation.

Those seeking to learn online, are confronted with numerous experts, gurus and thought leaders who confidently speak of having the secret to success. Again, the issue isn't that they don't have good information – it's that the relevant advice is lost in the noise.

 Approaching friends, family and colleagues is often even worse – as everyone has heaps of great advice that may or may not be based on real-world experience.

“I know a guy who…”

“I saw the story on the news about…”

And that's not taking into account outdated lessons, taken from markets long ago, or far away. Everyone's intentions are pure, and nobody is trying to mislead you, but the biggest challenge with sourcing relevant information on effective property investment, is working out what you need to know, and who is best to ask.

 

 Today, we're going to discuss some myths that still stubbornly hold on to people's attention. Next time, we will explore in more detail where to get advice from, and what sort of advice you should be seeking.

 

Myth 1 -

Only invest in places you know

 

This can also be combined with, "I would never invest in X.”

The issue with these myths is that they make sense – if you don't understand the demographics, socio-economic realities and opportunities within a geographic area how can you effectively invest?

The issue with this approach is that it's incredibly limiting, and based on your personal bias. For example, just because you consider a certain area to be up and coming, or full of potential, doesn't make it statistically true. Plenty of property investors over time have fallen victim to their own opinions – thinking that urban sprawl would naturally end up in a certain suburb, but instead they found themselves lumped with a house surrounded by industrial parks.

Never assume that your own opinion is correct – trust science, evidence and take advice from proven experts.

 

Myth 2 -

You Can’t Lose With Property

 

This is a popular myth based on mathematical fallacy – property is time dependent, and while the statistics point to a timeline of growth, you don't know how long the timeline is, and adopting an attitude that says you can't lose inhibits your ability to conduct a critical analysis of certain suburbs and properties. It's true, property is a far lower risk than some other investments – but should be treated with the care and respect it deserves.

 

Myth (s) 3 -

It’s better to buy close to the CBD

Never buy without street frontage

Always buy brick

 

 The list goes on. The important thing to understand is that one occurrence of something happening doesn't make it true. Just because someone bought a brick house with street frontage and made a lot of money out of it, doesn't mean that all brick houses with street frontage will achieve the same result. The same goes for someone who bought in a certain area, or houses that are near the city – in every suburb, there is a property that someone has lost money on.

As with all of these myths, the best approach is to look at each property based on its merits and evaluate scientifically whether it will achieve the results you want. Decide whether it fits into your investment portfolio, and consider both your short and long-term planning.

 

Property presents limitless opportunities, but if you listen to everyone, you won't hear anything at all.

 

Jeff Grochowski is the CEO of Accrue Real Estate, which offers buyers a simple and effective pathway to purchasing investment property in Melbourne, including intelligence mechanisms and market-led advice, predicated on years of experience.

They also offer the opportunity to tap into the ‘underground property market – those properties that aren’t passed to agents and don’t appear on mainstream websites.

 

www.accruerealestate.com.au

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4 Tips For New Landlords

For first-time landlords, your first investment and first tenants can create uncertainty and fear.

Have you done everything you can to ensure you have the right tenant? Have you purchased the right house for the area? What are your obligations?

And of course the old favourite - what happens if they destroy the place?This confusion comes from buying a house, and not living in it. You've never done that before, and your natural inclination is to get into the place, make yourself comfortable and create something that's a bit more 'you.' This brings us to the first tip for new landlords.

 

 

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Black Rock little hidden Melbourne real estate gem

Jeff Grochowski from Accrue Real Estate discusses the lifestyle and property investment potential of Black Rock.
Brighton is probably the most well known and affluent suburb on the shores of Port Phillip Bay. It is a really good place to live. It is close to the city. The beaches are popular for locals and visitors alike.
Hampton is fast gathering a reputation as the next generation's trophy property location and it is now starting to mirror Brighton in terms of lifestyle and in some cases, property value. Nearby, Black Rock offers lower prices in an area undergoing significant urban revitalisation. Access to a very interesting beach and foreshore recreation area have made more and more investors and home seekers look at buying into the suburb.

Suggestions: choosing the right location,  accrue real estate,  melbourne property market,  expert advice

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Jeff Grochowski of Accrue Real Estate delivers property acquisition services

People looking to buy investment property in Melbourne have an opportunity to seek expert advice on what rental properties are on the market.

The federal Treasurer, Scott Morrison said today, that 30% of Australians rent their homes. That is a huge number people who will at some time look to find a new investment property to rent.

Jeff Grochowski has a service that offers help to people who have made up their mind to set out on the hunt for a new apartment or unit to accommodate those 7,200,000 renters.

Suggestions: expert advice,  becoming a first time investor,  accrue real estate,  jeff grochowski

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Jeff Grochowski reveals key lessons about buying investment real estate

In Melbourne and Sydney, investment property is in strong demand. Fueled by immigration, low interest rates and the poor performance of stocks and shares, property is the preferred investment vehicle for Australians.

Suggestions: expert advice,  understanding the property market,  accruerealestate,  find the right investment property

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Where the grass is greener: next suburbs add value

New REIV data shows there is a significant difference in the median house price of multiple adjacent suburbs across the state, despite similar characteristics and amenities.

Suggestions: getting the right property advice,  property market,  smart property investment,  expert advice

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5 MISTAKES TO AVOID WHEN BUYING INVESTMENT PROPERTY

We often read the property investment success stories in the media but there are mistakes that people who are looking to buy a residential property as an investment can make. What strategies do successful property owners use to accrue real estate?

Suggestions: melbourne property market,  becoming a first time investor,  smart property investment,  can i afford to invest in property,  how to invest in property

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A BETTER DEAL FOR REAL ESTATE IN MELBOURNE

Melbourne 1 August 2015. How can people get a better deal when buying real estate in Melbourne?

Suggestions: getting a head start in property,  expert advice,  melbourne property market

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BEST PLACES TO LIVE IN MELBOURNE

Melbourne is a fast growing capital city in Australia. There are countless life style and investment options for property buyers.

Suggestions: find the right investment property,  melbourne property market

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USING PROFESSIONAL PROPERTY MANAGERS

With an expert in property management on your side, your investment property will be in safe hands.

Suggestions: property insurance options,  buying your second property,  expert advice

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HOME AND BUILDING INSURANCE

Getting the right Home and Building Insurance can be the difference between being properly covered or barley covered at all.

Suggestions: property insurance options,  property management insights,  property investment legals,  protecting your investment,  protecting your property

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WANT TO ACCRUE MORE PROPERTY?

In a step that's rare in the real estate industry, all Accrue Real Estate clients are referred to independent experts before considering purchasing
real estate or putting in a written offer to purchase property.

Suggestions: smart property investment,  getting a head start in property,  getting help in property investment,  getting the right property advice,  choosing the right location

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LANDLORD INSURANCE PROTECTION

It is important to get specialised landlord insurance, because general home and contents insurance will not cover some of the unique risks that come with leasing out your house.

Suggestions: property insurance options

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WHAT DO AUCTION CLEARANCE RATES MEAN?

In simple terms, the Auction Clearance Rate (ACR) indicates how many homes have sold at auction across a state on any given weekend.

Suggestions: how to invest in property,  getting help in property investment,  understanding the property market

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LOAN AND MORTGAGE INTEREST RATES

You should always take interest rates into account when choosing a home loan or mortgage. Be wary that lenders may attract consumers with low rates for the first few term of a loan, but may charge much higher rates thereafter.

Suggestions: can i afford to invest in property,  tax and property,  choosing the right location

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UNDERSTAND THE PROPERTY MARKET FIRST

Here's your opportunity to learn from independent experts before making any permanent or potentially costly property purchasing decisions.

Suggestions: can i afford to invest in property,  smart property investment,  getting a head start in property,  getting help in property investment,  protecting your property

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