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Budding buyers should use the stage four lockdown to become purchase ready, experts say. Picture: iStock

Budding homebuyers keen to pounce once Melbourne’s stage four restrictions have been lifted should be using the period to get themselves loan ready, experts say.

That meant determining a buying budget, choosing a lender and loan type, and potentially obtaining pre-approval.

Real Estate Buyers Agents Association president Cate Bakos said those keen to take the property plunge post-lockdown should start on this now, as the major banks were taking as long as 40 days to assess loan applications amid COVID-19.

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“People need to get themselves sorted before they go shopping, and be prepared for anything as long as a two-month process. Assessment is only one part, the other part is setting up documentation,” she said.

Ms Bakos recommended using a mortgage broker, as they could help determine a buyer’s borrowing capacity and use the “broad panel of lenders and policies” they had access to find a suitable loan.

Mario Borg Strategic Finance mortgage specialist Mario Borg said to ascertain their borrowing capacity, a buyer first needed to add up their typical monthly expenses.

This could include rent, ownership costs for other properties, household bills, education and medical fees, insurance, gym memberships, food, personal shopping, and entertainment costs.

“Be honest and start prioritising what you can carry forward when you take on a home loan,” Mr Borg said.

“From that, work out how much disposal income you’d have at the end of a month, and how much debt you can comfortably afford to take on.”

Mortgage specialist Mario Borg says lenders have heightened their scrutiny during COVID-19.

With interest rates at record lows, he said it could be worthwhile “stretching yourself within the realms of affordability” to maximise your borrowing capacity.

A borrower also needed to demonstrate stable employment and an ongoing income stream. Presenting at least a 20 per cent deposit, plus purchasing costs, made you a better loan candidate by taking you “out of LMI (lenders’ mortgage insurance) territory”.

Mr Borg recommended a principal and interest loan over interest only, unless you had a “strategic reason”.

Obtaining the lowest interest rate didn’t necessary mean you were getting the best deal, with some lenders offering “honeymoon rates” that increased after the honeymoon period expired.

“(Also consider) ongoing fees, set-up costs, and the flexibility of the loan, as you might want to be able to make extra payments and redraw them,” he said.

“Professional advice is important to ensure your home loan keeps working for you.”

Mr Borg said borrowers should consider whether to choose a fixed or variable rate, or a major or second-tier bank, on a case-by-case basis.

Fixed gave a borrower certainty and allowed them to make the most of the current low-interest rate environment, while variable provided flexibility.

Second-tier lenders were offering “some sharp deals” and, typically, shorter turnaround times in the COVID-19 environment, Mr Borg said.

Melbourne’s stage four lockdown has created difficult buying conditions, notably banning in-person home inspections. Picture: Ian Currie

He noted the pandemic had further heightened the level of scrutiny lenders applied when assessing applications.

“They’re going through bank statements line by line, so be diligent with what goes through your statement,” he said.

“TAB withdrawals every second day are going to appear as high risk to a lender. Afterpay may limit your borrowing capacity. Get rid of unnecessary credit cards.”

While pre-approval fast tracked the loan process after you had purchased, Mr Borg warned it was “not bulletproof”, as it was subject to your financial position and income remaining unchanged, and hinged on you choosing a property a lender deemed “satisfactory”.

But Ms Bakos said she was typically “quite anxious about working with buyers who don’t have pre-approval”.

“We can’t just assume a lender will be prepared to lend to them,” she said.

“Despite lower interest rates, we’ve got some really tough credit regimes at the moment.”

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samantha.landy@news.com.au

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56 Darby Rd, Echunga. Picture: Supplied.

Looking to escape from the hustle and bustle of suburban life and enjoy life in your own slice or rural paradise?

Boasting a mix of horse paddocks, vegetable gardens, fruit trees and a self-contained studio, this versatile 4.47ha Echunga property – named Providence – could be the answer.

56 Darby Rd, Echunga. Picture: Supplied.

Keith and Jen Chiswell and two of their four sons moved from Adelaide 11 years ago, attracted by the property’s spaciousness – both inside the updated five-bedroom brick veneer home and out.

“We like to entertain a fair bit and there is a lounge room, a family room and a rumpus room – and they’re all sizeable,” Mr Chiswell says. “When we first saw it, we thought it was an ideal home … it gives everyone their own space.”

56 Darby Rd, Echunga. Picture: Supplied.

And with six paddocks, stables and a fully-fenced arena, Providence is set up for horse-lovers. “My wife had two horses at the time we moved up here … and it just seemed to fit the bill,” Mr Chiswell says. “It is quite unique.”

The property is ideally set up for self-sufficient living, with an 8kW solar system, an orchard – boasting a wide variety of fruit trees – a chicken coop and six vegetable plots among its standout features.

56 Darby Rd, Echunga. Picture: Supplied.

There is also a fully-equipped bore, rainwater tanks and shedding, while the solar-heated pool is another attraction.

Moving back into the city for family reasons, Mr Chiswell hopes the next owners would enjoy Providence as much as they had: “The place has been absolutely fantastic for us … we’ve really enjoyed the space and the quiet,” he says.

56 Darby Rd, Echunga. Picture: Supplied.

He says the property offers plenty of options, with the possibility of renting out the stables and paddocks as agistment.

There is also a versatile separate self-contained studio which could be used as a home office or separate accommodation.

56 Darby Rd, Echunga

$1.65 million to $1.75 million

Agent: Williams Real Estate in conjunction with Hunt Lifestyle, Dee-Anne Hunt 0411 555 774. Land size: 4.47ha.

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Brisbane’s recession-proof suburbs have been revealed. Picture: Darren England.

BRISBANE’S recession-proof suburbs have been revealed, with some of the city’s most overlooked middle and outer areas poised to lead a housing market recovery in the wake of COVID-19.

Suburbs such as Macgregor, Mount Gravatt East and Moorooka could rebound faster from the present downturn than the traditionally bulletproof blue-chip suburbs.

Data provided by CoreLogic showed the performance of capital city and regional housing markets three years after the global financial crisis (GFC) and identified the suburbs that outperformed despite the economic shock.

This house at 153 Splendour Rd, Rochedale, is for sale. Rochedale home values rose 14 per cent post-GFC.

Property Investment Professionals of Australia chairman Peter Koulizos said the best-performing suburbs post-GFC in Brisbane were mostly located in outer suburbs.

Home values in Rochedale, 17km southeast of Brisbane’s CBD, rose more than 14 per cent in the three years between December 2008 and December 2011 — the best performing housing market in the city post-GFC.

The housing market in the neighbouring suburb of Macgregor was also resilient during the period, with home values rising more than 9 per cent at the end of 2011.

Interestingly, home values in the south Brisbane suburb are also tipped to recover strongly from the COVID crisis.

This house at 500 Mains Rd, Macgregor, is for sale. Home values in Macgregor rose 9 per cent post-GFC.

Alderley, 7km north of Brisbane’s CBD, was an exception to the outer suburb trend, recording a 9 per cent rise in median house prices during the downturn.

Mr Koulizos said the suburbs likely to recover fastest from the current downturn were likely to be middle-ring suburbs that offered more affordable property prices than their inner-city counterparts, but with a similar standard of facilities.

Those suburbs could include Kenmore, Macgregor, Moorooka, Mount Gravatt East and Stafford, he said.

This house at 70 Mornington St, Alderley, is for sale. Alderley home values rose 9 per cent post-GFC.

“Across Greater Brisbane, with the potential increase in people who work from home, the outer regions will also be on the radar of buyers and investors,” he said.

“This will partly be due to affordability considerations, but also lifestyle factors such as being closer to the water in the Redcliffe or Redlands regions or the chance to live on acreage in parts of Logan or Ipswich.

“The Gold and Sunshine coasts are also set to strengthen from local and interstate buyers who decide to prioritise lifestyle and opt to make a sea or tree-change sooner rather than later.”

This house at 6 Robinson Rd, Moorooka, has just gone under contract.

But Mr Koulizos said it was “impossible” to forecast exactly which suburbs would fare better than others post-pandemic.

“It’s vital to always consider the underlying fundamentals of a location when investing in property for the long-term, such as infrastructure and access to schools and amenities,” he said.

CoreLogic head of research Tim Lawless also believes suburbs within Brisbane’s middle and outer ring, at the lower end of the price spectrum, are likely to rebound the strongest after the pandemic — particularly those close to main arterial roads and train stations.

This house at 19 Shannan Plc, Kenmore, just sold for $1.9 million.

Mr Lawless said transport options in a suburb was often a driver of stronger capital gains.

“As a legacy of COVID, it may be the case that more people are seeking lower-density housing options,” Mr Lawless said.

“Many of the areas with a relatively affordable price tag are located further from the city where transport into the city centre may take some time, although commuting times may be less of a priority if there is lasting willingness from employers to allow staff to work remotely.”

This five-bedroom house at 90 Carrara St, Mt Gravatt East, is for sale. Mt Gravatt East has been tipped to bounce back from the current recession.

Mr Lawless said Queensland’s housing market recovery post-COVID would be slightly different to the GFC.

“After the GFC, interest rates were coming down from higher levels, but we can’t do that now, so we won’t see the stimulating factor of interest rates falling because they are already super low,” he said.

“The economy at the time was also benefiting from the mining boom. There was strong demand from China for resources and that had a substantial postive impact on regional Queensland in particular.

“Where the similarity is much more appropriate is that it was a time when there was a lot of stimulus in the market, particularly for first-home buyers, and that’s something we should expect going forward.”

CoreLogic head of research Tim Lawless.

Mr Lawless said it was likely more housing incentives would be announced in the upcoming federal budget, which would apply to newly constructed homes and first-home buyers.

“With that in mind, areas that will probably show a better performance coming in to next year are those popular with first-home buyers and those benefiting from people looking to build new properties,” he said.

The best Queensland regional performer in the wake of the GFC was Moranbah, which recorded a 33 per cent surge in home values between December 2008 and December 2011.

“Areas such as mining towns, where economic conditions are dependent on a single industry, are much more likely to experience bursts of price rises or falls because of the strength or weakness of their dominant industries,” Mr Lawless said.

“While many of these mining regions recorded spectacular capital gains post-GFC, a few years later many of these same regions recorded a crash in home values.”

FIVE BRISBANE SUBURBS SET TO LEAD THE RECOVERY POST COVID-19

Suburb Median home value

Kenmore $731,648

Macgregor $764,910

Moorooka $671,281

Mount Gravatt East $666,321

Stafford $643,843

(Source: PIPA/CoreLogic)

BRISBANE’S TOP 5 RECESSION-PROOF SUBURBS POST-GFC

Suburb % change in home values Dec 2008 to Dec 2011 Dec 2011 Median Value

Rochedale 14.1% $1,006,729

Macgregor 9.4% $521,145

Alderley 9.2% $528,021

Shorncliffe 8.8% $589,049

McDowall 8.5% $543,464

(Source: CoreLogic)

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Landmark for sale – 118 North Steyne, Manly.

When Manly’s last original beach cottage changed hands in 2018, there were more than a few wishful buyers left disappointed and sure that it would be many years before such a landmark would ever be offered for sale again.

Fast forward to 2020, and the world is a much different place.

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Largely thanks to COVID-19, homeowners all over the country are re-evaluating where they live and how they live, and many are making some big changes.

That includes the owners of 118 North Steyne, the treasured c1906 beach cottage known as Brise De Mer, French for ’sea breeze’.

The owners, who moved from Mosman to Manly two years ago, have decided they want to spend more of the year living overseas to be closer to family, said Michael Clarke, of Clarke & Humel.

How’s that for a view and a location.

Sweet dreams.

He has been inundated with inquiries from potential buyers from all over the world. Even buyers in Singapore, London and New York are all considering the property, knowing they might potentially have to buy it sight unseen given strict international travel restrictions.

“People are thinking differently now,” Mr Clarke said. “Life is strange, and they are thinking, ‘if I’m not going to buy the house of my dreams then when’.

“This is a unique time to buy a unique property and I think this is it. For whoever buys it this time, it will likely be their forever home. It is a very special property.”

Spectacular sunrise.

Let the outside in.

The cottage has been painstakingly renovated and architecturally remastered to preserve its heritage-listed features, while also adding a new layer of luxury and sophistication that newly federated Australians could only have dreamt about in the early 1900s.

It has traded only a handful of times since it was built more than a century ago, and famously dodged the bulldozers when it was bought by a developer in 2002.

After years of debate by the community and the local council at the time, a heritage listing was granted in 2006.

Relax in style.

Formal dining.

The property was sold to another developer, who reached an agreement to restore the house on a portion of the original 910sqm site and allow for the construction of a new, low-rise, luxury five-apartment building at the back of the block.

Two years of intensive restoration followed and the property was sold in late 2009, before it sold again to the current owners in 2018.

The marble kitchen.

Style.

Mr Clarke said the property had been newly renovated with the latest designer finishes and was easily one Manly’s most treasured trophy homes.

Newly renovated again with the latest designer finishes

Set on a level 440sqm and surrounded by landscaped tropical gardens, the home has a wide central entrance hall with soaring patterned ceilings that lead to an open plan casual living and dining areas where you can see, smell and hear the ocean.

Timeless.

Who doesn’t love a marble bathroom?

Marble ocean-view terraces and a barbecue area are perfect for lazy summer days and the lounge room has a gas log fireplace and formal dining room for entertaining in style no matter what the season.

Other features include a large terrace with new retractable roof, marble kitchen with island bench and premium Miele appliances, whole-floor parent’s retreat opening to an ocean-view terrace, marble bathrooms, newly renovated basement games room/home theatre/office, new ducted airconditioning, and three Jetmaster gas fireplaces.

The view from the upstairs terrace.

Chill out in style.

Classic design is still a big feature of the home, including high patterned ceilings, leadlight windows and timber flooring.

There is an internal lift to the basement, C-bus smart system, plantation shutters,

CCTV security system with intercom and double garage with internal lift access to the home.

“This is a rare piece of history and it is unlikely another opportunity to buy it will come up for a long time,” Mr Clarke said.

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12 Finlay Street, Battery Point. Picture: SUPPLIED

BEAUTIFULLY situated off Secheron Road and Clarke Avenue, with a garden that borders Hampden Road, the position of this Battery Point property is simply superb.

It is a mere stroll to AJ White Park, the Hobart waterfront and the bustle of Hampden Road’s restaurant precinct.

Known as The Stables, the property dates back to 1900.

It has been sensitively and cleverly converted from the original stables and a warehouse from a neighbouring property into to a lovely, contemporary abode.

The interiors and garden have been recently enhanced and renovated.

Location, location…

Sunny spot to sit.

Improvements include a stylish new bathroom and laundry/toilet that services the accommodation.

There are two double-size bedrooms with built-in joinery positioned on the upper level.

The master bedroom has a nice ambience courtesy of the soft light and river vistas from the gorgeous Juliet-style French doors.

A second bedroom is currently in use as a study. It has pretty views over the manicured, private rear garden towards Hampden Road.

A delightful, mature walnut tree adds perspective.

The property has fresh paintwork throughout, which complements the new blinds for window furnishings.

Perfect for a home cook.

Light-filled living.

The lighting upstairs and the quality appliances on the ground floor have also been upgraded.

There is underfloor heating in the bathroom and a reverse-cycle airconditioner ensures comfort all year round.

A paved terrace and beautiful French doors open to a superb living and dining space adjacent to the expansive kitchen with a dedicated pantry, modern appliances and plenty of cupboard and benchspace for meal preparation.

Gleaming timber floors reflect the natural light, which is further enhanced by accent skylights.

Additional security is provided by the electronic gate at the entrance.

There is room to park two vehicles off-street in tandem.

The Stables represents a wonderful opportunity to secure prime property in Battery Point, listed by realestate.com as in the top 10 most-searched suburbs nationally, such is the demand and desirability of this very special city fringe location.

Sophisticated style.

Top spot for a cuppa.

Salamanca Place and the Hobart CBD are within easy walking distance, with Sandy Bay also close by.

If you are familiar with the stunning historic streetscapes of Battery Point, you may have noticed this gem of a property, which is something of a landmark in the area.

Battery Point’s No.12 Finlay Street is listed with Harcourts Signature and priced at “Offers over $1.25 million”.

The post Classic Battery Point home with a modern twist appeared first on realestate.com.au.

This house at 160 Eildon Road, Windsor has sold at auction for $850,000.

A family who pulled out of an off-the-plan property purchase when the developer would not deliver on contract commitments, have finally bought their first home in Australia, securing an inner northern house at auction for $850,000.

New owners Nicole and Neil Gavin (front) with the sellers Benn and Nikki Kennedy and their son Jack, 3, (middle), and Ken McFarlane (top) whose father had the house built in 1948.

Six registered bidders, including one on the phone from New South Wales, took part in the auction of the three-bedroom house on 543sq m at 160 Eildon Road, Windsor.

Among the onlookers was Ken McFarlane, whose father had the worker’s cottage built in 1948.

The house at 160 Eildon Rd, Windsor was sold by Matt Sale of Ray White West End.

“I’m kicking myself that I didn’t buy the house with my brothers and sisters as a share house,” he said.

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Ken McFarlane with pictures of the house his dad built in 1948.

Mr McFarlane sold the worker’s cottage in 2001 for $146,000 and a large rear deck was added before Benn Kennedy bought the house in 2006 for $320,000 and began a major renovation to the original home.

“I don’t recognise the place,” Mr McFarlane said.

“But I see the polished floorboards are back. We had them when I was a kid but in the 1960s carpets were all the rage. I moved out in 1975.”

A new kitchen was part of the most recent renovations.

Neil and Nicole Gavin, who currently rent in neighbouring Wilston, had been looking for their first home in Australia since putting their UK property on the market two years ago.After being released from a townhouse contract last month, they were about to make an offer on a Gordon Park property when they decided to inspect 160 Eildon Road, Windsor.

“The moment I walked in the door I knew this was the house,” Mrs Gavin said.

Outdoor areas were very important to the buyers of 160 Eildon Road, Windsor.

“I liked the deck and the fire pit. We live outdoors a lot and it just suits our lifestyle.”

At Saturday’s auction, Ray White auctioneer Mitch Peereboom accepted an opening bid of $600,000 for the three-bedroom house and four active bidders took part, raising the price by $50,000 each time.

Mr Gavin entered the auction at $700,000 and at $800,000 he was in front when the auction was paused for negotiations for more than 20 minutes.

“We had a plan, we had a top limit to our financial plan, and we said we wouldn’t break it and we did,” Mrs Gavin said. “Which is why there was such a delay because we were deciding if we could afford it.”

Mr Peereboom resumed the auction with an increased bid of $850,000 and the property was sold unchallenged.

The auction was one of almost 50 to go to auction across Brisbane on Saturday.

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