SINCE 1919 | A HISTORIC JOURNEY

August 13, 2019 Leave a comment

Fletchers Executive Chairman, Rob Fletcher, takes us on a trip down memory lane as he reflects upon both the history, legacy and future of the company as we celebrate the milestone of 100 years in business.

From humble beginnings at their first offices in Kew in 1919, to a network of over 20 offices more than a century later, the foundations established by the Fletcher family in the early days enabled the business to remain relevant over the years, despite the rapidly increasing pace of change. 

“From my family to yours, thank you for your friendship and continued support” – Rob Fletcher.

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Categories: Media

Renting VS Buying a House | The Pros and Cons

August 13, 2019 Leave a comment
Brought to you by National Australia Bank 

Renting vs buying a house, the debate is never ending. We look at the pros and cons of both options to help make the right decision for you.


Housing affordability is a huge issue. Working out whether to jump onto the property ladder or continue renting can be a confusing decision. We’ll go through some of the pros and cons of both options to help you make an informed decision.

Renting: The Pros

Frees up your savings

By choosing the renting life over home ownership, you’re not spending your savings on a deposit and all the costs associated with buying a home. You’re freeing up money to spend or invest elsewhere. Depending on where you invest the money, you may actually get a greater return on investment than if you’d bought a house. You need to think carefully about your investment goals and strategy.

Or you may be at a time in your life when you’re not yet ready to have all your savings and monthly income going towards a deposit and a mortgage. Does travel or study beckon?

It gives you more flexibility

Renting gives you flexibility. As a tenant you can freely relocate from home to home and area to area once your lease expires. The significant costs associated with buying and selling means that you have less flexibility when choosing to move house.

Allows you to diversify your investments

Buying a home, especially for first home buyers, often means that all your savings will be going towards the one asset. Do you feel comfortable with most, if not all, of your savings being tied up in a single investment? Renting allows you to use your savings across a broad range of investments. By diversifying your investments, you’re also spreading out any potential risk.

Renting: The Cons

If history is a past indicator, the cost of renting will steadily increase over the years due to inflation and rise in property prices. Depending on where you live, your mortgage repayments may initially be higher than the cost of renting, but over the life of the loan, the interest charged reduces as the principal is paid off. Many people pay off their mortgage in under 30 years. Sure they’ll still have costs for home maintenance and council rates, but they’ll be free of large monthly payments to live in their home. But if you choose a life of tenancy, you’ll always have rental payments. Once you hit retirement and your income is reduced, it may be difficult to find a large sum of money each month. You may also be less able to absorb rent increases.

No forced savings

A mortgage is like forced savings. You’re obligated to pay your mortgage every month – putting money towards an asset that could potentially increase over time. But with renting, it can be tempting to spend spare cash rather than saving or investing it.

Buying A House: The Pros

It gives you stability and freedom

Buying a home provides you with certainty; there’s no risk that you’ll be displaced by a landlord. Tenants have very little say in how long they can occupy a rental property beyond the lease term. Living in your own home also allows you the freedom to renovate and decorate your home as you please.

Rise in house prices over time

Having an asset that may increase in value over time is appealing. While house prices have consistently risen over the long-term, they can also have periods of weak growth or even fall in value. You need to remember that home ownership is a long term investment strategy.

The ability to use the equity in your home

Home equity is the proportion of your home that you own. Provided that the value of your house is increasing, as you pay off your loan, your equity will also be increasing. You may then be able to use the equity to fund an investment such as shares or a managed fund.

Buying A House: The Cons

You’ll be paying interest

The interest and fees you pay over the life of a loan can be significant. Be prepared for interest rates to fluctuate during the term of your loan, especially if you have a variable interest rate or when your fixed rate period expires.

There are opportunity costs

This is the cost of having your money tied up in property. If you choose a life of renting, you’ll have the money you would have saved for a deposit to spend elsewhere. This might be for travel, study, entertainment or your own business. It could also be used for other investments that potentially could yield greater or quicker returns than a residential property will.

Ownership costs are more than just a deposit and loan repayments

Buying and selling isn’t cheap. According to the Reserve Bank of Australia, it costs about 4% of the sale price of your home to sell (agents fees, advertising) and about 6% of the purchase cost to buy (stamp duty, government fees, conveyancing costs, loan establishment fees). Not to mention the ongoing running costs of owning a property including council rates, repairs, depreciation, body corporate fees, water and insurance costs. It’s much more than just saving for your deposit.

Doing The Sums: The Best Option For You

As we’ve seen, the case for buying or renting isn’t a simple one. There are many different factors to consider including your financial resources, lifestyle, family needs, investment goals and appetite for risk. Doing research and talking to an expert is a good idea. To assist you with your decision, as a starting point, we’ve got a handy rent vs buy calculator. Based on your current rental repayments this tool will help you work out if you could afford a home loan.

Important Information
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.
Categories: Real Estate Services

13 Highbury Road, Burwood

August 13, 2019 Leave a comment

I’m joined by my vendor CJ to chat about his property at 13 Highbury Road in Burwood.

The home blends period charm with a north-facing extension boasting uniquely angled ceilings and large, open, light-filled spaces. It features 3 double bedrooms including a large loft, a north-facing office/study/4th bedroom, 2 spacious bathrooms, lounge and dining rooms (or bedrooms), excellent storage and multiple open car spaces.

To explore the property and view the statement of information, visit the website:tinyurl.com/13HighburyRoadBurwood

Categories: Listings

Auction | 21 Graham Street, Surrey Hills

Enjoyed the spirited and creative bidding at our auction of 21 Graham Street in Surrey Hills on the weekend!

Close to 100 people watched on as three parties competed to secure this great family home, with spectacular views and swimming pool.

An excellent result, so thrilled for our vendor.

Categories: Auctions

Auction Snapshot | 3 & 4 August 2019

Results from the first auction weekend of August continued the current trend of clearance rates reaching above 70%, with the REIV reporting a 76% clearance rate from the 375 auctions called. Fletchers were thrilled to once again achieve a number of excellent results for our clients, with a success rate of 83% accomplished.

Domain economist Trent Wiltshire noted that Melbourne’s overall clearance rate for the month of July was at its highest point since October 2017. With Spring just around the corner, we expect that in addition to improved market condition, we will also see the usual seasonal increase in volume.

Alongside Rob & Nick Fletcher, I was thrilled to sell both 1&2/6 Wilburton Parade in Balwyn North. The properties were offered both separately and with the option to buy both, in an extremely rare opportunity in the Balwyn High School zone. There was competitive bidding at both auctions, with both selling under the hammer (separately)!

Results. It’s a Fletchers thing.

Categories: Auction Wrap

6 McLaren Street, Mount Waverley

We were thrilled to represent Barbara in the sale of her original three bedroom home at 6 McLaren Street in Mount Waverley.
 
Offered for sale for the first time, it was important for my team and I to provide Barbara and her family excellent support throughout the campaign. To then have multiple bidders on auction day helped to achieve a fantastic price of $1,307,000!
 
Congratulations to the successful purchasers on securing an exciting opportunity in Mount Waverley.
Categories: Auctions

Auction Snapshot | 27 & 28 July

More bidders were seen returning to the auction market over the weekend, with several reports of stronger sales across the state. Marking a solid outcome for clearance rates, Fletchers were delighted to have cleared more than 87% properties at auction, compared with the industry average of 73%.

With activity ramping up in the lead up to Spring, Domain says ‘a combination of buyer confidence and “fear of missing out” is returning to the market.’ Data from Domain’s June quarter results has shown a slight jump in median house prices of 0.3 per cent for the first time since the peak at the end of 2017, sparking signals that Melbourne’s fall in property prices is now over.

This is proving to cause some concern for first-home buyers who continue to face tough competition at auction, even in a weaker property market. As a result, more first-home buyers are now seen moving out of the city and are switching to established homes near schools and shops rather than land and house packages in growth suburbs. Fletchers Doreen Director, Nicholas Matkin, says, ‘I live in Mernda and work in Doreen and first-home buyers have never gone away’.

In Fletchers news, my team and I sold 11 Kaleno View in Balwyn on Saturday. Located within a beatifically tree-lined street, the impressive 4 bedroom property saw 4 bidders at auction, pushing up the original sell price from $1,750,000 to an incredible $1,907,000. ‘According to Google, ‘Kaleno’ means happy! This perfectly describes how our vendors and the successful purchaser feel!’

Results. It’s a Fletchers thing. 

Categories: Auction Wrap