Fletchers Forum

‘Take advantage of government incentives,’ agents urge buyers

You’ve decided to buy your first home. Doubtless there are many questions that spring to mind, so Fletchers has decided to try to answer some of them to smooth the way. The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000. Under the scheme, a one-off grant of up to $7,000 was payable to eligible first home owners.
However, the Federal Government has now announced a First Home Owner Boost, which supplements the Victorian Government funded First Home Owner Grant Scheme. As such, first home buyers who purchase established homes will now receive an additional $7,000, effectively doubling the grant to $14,000.
On top of that, subject to certain requirements, for established homes there is an additional $3,000 available in the form of a First Home Bonus. This means that eligible buyers of established homes could be entitled to a total of up to $17,000 in grants.

First home buyers who build a new home or purchase a newly constructed home will now receive an extra $14,000 to take their grant to $21,000. Subject to certain requirements, for those building a new home or purchasing a newly constructed home there is also another $5,000 available if they are purchasing in metropolitan Victoria. This additional sum is called a First Home Bonus. This means that eligible first home buyers who are building a new home or purchasing a newly constructed home in metropolitan Victoria could be entitled to a total of up to $26,000 in grants.
However, subject to certain requirements, those building a new home or purchasing a newly constructed home in Regional Victoria are entitled to the First Home Bonus of $5,000 plus another First Home Regional Bonus of $3,000.
This means that eligible first home buyers who are building a new home or purchasing a newly constructed home in Regional Victoria could be entitled to a total of up to $29,000 in grants.

The grants are administered by the State Revenue Office (SRO). Full details can be viewed on their website www.sro.vic.gov.au.

- Fletchers Property Newsletter November 2008 Edition

Fletchers has qualified tenants seeking homes

The lack of investment properties has created a crisis in the rental market, with vacancy rates at an all time low. Until the recent rate cuts, many investors were wary of investing in property. The high interest rates also precluded many first homebuyers from purchasing and they continued to rent.
As a result a serious shortage of rental properties has arisen with vacancy rates as low as one per cent being reported in some parts of the country. Even though the Reserve Bank of Australia has cut interest rates and incentives for first homebuyers have now been boosted, the lead-time before the situation will be corrected could be years – not months.
Because of the shortage, Fletchers is urgently seeking more investment properties to meet the demand from qualified renters anxious to lease a home. A highly professional agency, Fletchers commands an impressive rent roll with hundreds of landlords on its books. Over the years it has attracted many landlords, some with extensive property portfolios, because they are renowned for their high standard of property management.

Director James Gladman told Property News that for the first time in years the agency was experiencing an exceptionally low vacancy rate. “We have qualified renters on our books who simply cannot find a home. The moment we have a vacancy we notify them and invite them to view the property. The problem is we just don’t have the stock to meet demand. As such we are seeking more investment properties, landlords who have properties they want to lease but who want to be assured they will be properly managed,” James said.
“We have a professional, highly experienced team of Property Managers at Fletchers who will appreciate the value of a landlord’s asset and how important it is to ensure it is properly maintained and they get a good return.
“However, as any experienced investor will tell you, it isn’t enough just to be seeking a good return. Agents must act fairly in their dealings not just with vendors but also the tenants. When we are evaluating tenants we try to find renters who will remain long-term at the property and will also act responsibly. “Good tenants are worth keeping so we strive to ensure there is balance and fairness all round,” James said.

If you are seeking a Property Manager to look after your investment, contact Fletchers. The firm’s expert team of professional managers will be only too pleased to assist you.

- Fletchers Property Newsletter December 2008 Edition

Sale fetches top price for Point Lonsdale home

Fletchers has just sold a home at auction for $81,000 above the reserve – an astonishing result that has delighted the vendors.


Director James Gladman told Property News that 8 Elliot Court, Point Lonsdale, attracted strong buyer attention with no less than 3 bidders competing for the property on the day. The result? The home sold for $506,000 – the reserve had been set at $425,000.
“This was a great result,” James said. “The 2 losing bidders were still holding strong right until the hammer fell. This was a spacious residence in a quiet court location, only a short stroll to the beach. It was perfect for a holiday home or permanent residence.

“Sold under instructions from Defence Housing Australia this property was well maintained with 3 bedrooms, a separate study or fourth bedroom, an ensuite and a main bathroom and large living areas. The home was situated on a generous allotment of about 673 square metres with a double garage,” he said.

James Gladman said with interest rates falling and the vacancy rate in rental properties at an all time low, now is an ideal time for investors to buy. Fletchers believes that the Bellarine Peninsula offers excellent opportunities for investors.
“The falling interest rates combined with high rental yields means that investors entering the market now will be well positioned to take advantage of capital gains as the market strengthens.
“Opinions vary but it’s generally held that despite fluctuating interest rates and negative economic influences most properties double in value about every seven years,” James said.
“Most investors enter the property market when their returns are about 5 to 7 per cent. Depending on their personal finances, some investors can absorb a negative return. That is, they make up the difference between the rent and the mortgage repayment. Other investors look to ensure their investment properties are either cash flow neutral or give them a small return.

“In past property cycles, once investors saw that interest rates were falling and rental yields were improving they started buying,” he said.
“What usually happens then is that first home buyers begin to compete for the same ‘more affordable’ properties. This is because in an effort to avoid paying high rents buyers decide the difference between renting and paying off a mortgage is worth it. To avoid the pain of paying high rents, these home buyers become more willing to make a few sacrifices for a couple of years for the pleasure of home ownership.
“Then history repeats itself as the rule of supply and demand comes into play. Investors and home owners put demand on the lower end of the property market and this in turn creates buyer competition and pushes prices up,” he said.

If you are planning to deal in real estate on the Bellarine Peninsula, then contact Fletchers. Their expert team of consultants will be only too happy to guide you about the best way to buy and sell in the area.

- Fletchers Property Newsletter December 2008 Edition