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Buying a home or an investment property is exciting, but it can also feel like navigating a maze. One of the trickiest parts? Understanding the property disclosure facts that sellers must reveal. These facts can make or break your decision, yet they often get overlooked or misunderstood. So, let’s break it down together, step by step, in a way that’s clear, practical, and yes, even a little fun. Why Property Disclosure Facts Matter More Than You Think Imagine you’ve found the perfect place. The location is spot on, the price is right, and the photos look amazing. But what if there’s a hidden issue lurking beneath the surface? Maybe the roof leaks, or there’s a history of flooding. These are the kinds of things sellers are legally required to disclose. Why? Because property disclosure facts protect you from nasty surprises after you’ve signed on the dotted line. When sellers share these facts honestly, it helps you make an informed choice. It’s like having a map before you start a journey. Without it, you might end up lost or stuck in a swamp of unexpected repairs and costs. Here’s the kicker: not all sellers are upfront, and not all buyers know what to ask. That’s why understanding these facts is your secret weapon. It’s about being savvy, prepared, and confident. A typical Melbourne home ready for sale What You Need to Know About Property Disclosure Facts So, what exactly falls under property disclosure facts ? The list can be long, but here are some key points every buyer should watch for: Structural issues: Cracks in walls, foundation problems, or termite damage. Water damage: Past flooding, leaks, or drainage problems. Pest infestations: Termites, rodents, or other critters that could cause damage. Legal issues: Boundary disputes, easements, or zoning restrictions. Environmental hazards: Asbestos, lead paint, or contaminated soil. Renovations and repairs: Whether they were done with permits and up to code. Knowing these details upfront can save you thousands in repairs and headaches later. Plus, it gives you leverage to negotiate a better price or request fixes before you buy. But here’s a question: how do you verify what the seller tells you? That’s where professional inspections come in. A thorough property inspection can uncover hidden problems that even the seller might not know about. Professional home inspection in progress What is the meaning of a material fact? Now, let’s zoom in on a term you’ll hear a lot: material fact . Simply put, a material fact is any information about a property that could influence a buyer’s decision. It’s not just about minor scratches or cosmetic issues. It’s about anything that affects the property’s value, safety, or desirability. For example, if a house has a history of flooding, that’s a material fact. If there’s a crack in the foundation, that’s a material fact. Even if the property is in a noisy area or near a planned development, those are material facts. Why does this matter? Because sellers are legally obligated to disclose all material facts. Failing to do so can lead to legal trouble and even the cancellation of the sale. To put it simply: if it matters to you as a buyer, it’s a material fact. And you have the right to know about it. How to Protect Yourself When Buying Property Okay, so you know what to look for and why it’s important. But how do you actually protect yourself during the buying process? Here are some practical tips: Ask for a full disclosure statement. This document should list all known material facts about the property. Get a professional inspection. Don’t skip this step. A qualified inspector can spot issues you might miss. Research the area. Check for local developments, flood zones, or other environmental risks. Consult a property expert. A buyers advocate or real estate lawyer can help you understand the fine print. Don’t rush. Take your time to review all information and ask questions. Remember, buying property is a big investment. It’s worth being thorough and cautious. If you want to dive deeper into what a material fact real estate inspection involves, there are great resources and experts ready to guide you. The Role of Buyers Advocates in Navigating Property Disclosures Here’s a little insider secret: you don’t have to go it alone. Buyers advocates are professionals who work exclusively for you, the buyer. They know the market, the legal requirements, and the common pitfalls. A buyers advocate can: Review disclosure statements with a fine-tooth comb. Recommend trusted inspectors and other experts. Negotiate on your behalf based on disclosed facts. Help you understand the impact of any material facts on your purchase. Think of them as your personal guide through the property jungle. They help you avoid traps and find the best deals, all while keeping your interests front and centre. Wrapping Up Your Property Journey with Confidence Buying a home or investment property is a huge step. It’s thrilling, nerve-wracking, and sometimes downright confusing. But understanding property disclosure facts and material facts can turn that confusion into clarity. By knowing what to ask, what to look for, and who to trust, you’re setting yourself up for success. You’ll avoid surprises, negotiate smarter, and ultimately, secure a property that’s right for you. So, next time you’re eyeing a property, remember: the truth is in the details. And those details? They’re your best friends. Happy house hunting! material fact real estate

Short answer:  usually yes once a binding contract is formed – but the key is when that actually happens. And this is where most people (and plenty of agents) blur the line. Auction terms do vary according to states, so, I'll speak in Victorian terms and keep it practical. This is general info, not legal advice – for anything hairy you’d still want a property lawyer. Auction Process in Victoria 1. An auction by itself is not the contract Legally, the auction event is just the mechanism to find a buyer and a price. The binding bit is the contract of sale. At a standard residential auction: The vendor signs the contract before the auction starts. The contract is on display. The highest bidder, when the hammer falls, is taken to have agreed to buy on those terms. They sign immediately and pay the deposit. Once that’s done, you have what the law cares about: ➡️ a signed, written contract  between vendor and purchaser. From that point, the vendor is legally required to honour it , just like the buyer is. If the vendor refuses to settle, they’re potentially in breach of contract. 2. The crucial distinction: “over reserve” vs “binding sale” There are two separate questions: Has bidding gone over what the vendor said their reserve was? Has the property been formally sold to you? Those are not the same thing. A few realities: The vendor can change their reserve before the property is announced “on the market”. You could be over the original reserve, but if the auctioneer never says “on the market” and never knocks it down, no sale is formed. Until the hammer falls and contracts are signed, there’s no binding obligation on the vendor to sell to you at that number. So: Over reserve but not called “on the market” + no fall of the hammer → ugly, but usually no contract yet. Announced “on the market” + hammer falls in your favour + contract signed → binding contract; vendor is legally committed. 3. Once the hammer falls and the contract is signed In the normal clean scenario: Auctioneer declares “we are on the market and selling”. Bidding finishes, hammer falls. You sign  the contract and pay the deposit. At that point: Vendor is legally required  to complete settlement on the agreed terms. If they refuse, you can (through a lawyer): Pursue specific performance (forcing them to complete), and/or Seek damages (your losses caused by their breach). In practice, vendors very rarely try to back out after a strong auction result because the legal risk is significant and their sales agents will go ballistic. They only get paid if it settles. 4. Dodgy edge case: what if they try to walk after the hammer? If: The property is clearly called “on the market”, The hammer falls to your bid, You’re ready, willing and able to sign and pay the deposit, and The vendor suddenly refuses to go ahead, then you’re in “get a lawyer now” territory: You’d want a solicitor to review all the facts quickly. If they agree a contract was formed, they can fire off a very firm legal letter. Ultimately it’s a Supreme Court/County Court–type issue if it escalates. But again, this is very rare. The more common games are played before the hammer (moving reserves, not calling “on the market”, passing in and trying again). 5. So, are they “legally required” to honour it? Put simply: Before  the hammer falls and before contracts are signed: ❌ No, the vendor is not legally required to sell to you, even if bidding has gone above some earlier “reserve” they mentioned to the agent. After  the hammer falls in your favour, the property has been announced “on the market”, and the contract is signed: ✅ Yes, the vendor is legally required to honour the contract (just like you are). The law cares about the signed contract , not your impression of “we went over reserve, so they must sell”.

The Victorian government recognises that underquoting seems rampant in the real estate industry, and one not disclosing the reserve price is seen as contributing to the feeling of the property being underquoted. So, they are intending to change this. There are plans to make the disclosure of reserve price compulsory. Will this effectively stop underquoting? Will the sales agents work with or will they work around this new rule? I can bet, there will be ways around it. And we have already identified at least 5 ways the sales agents can navigate around this new rule. Will Disclosing the Reserve Price End Underquoting?

If you’ve ever stood on a nature strip at a Melbourne auction wondering “ Why won’t they just tell us the reserve? This is a bloody joke. ” You’re not alone. From a buyer’s point of view, not disclosing the reserve price feels like a complete waste of time. From a seller’s and sales agent’s point of view, it’s the whole point of running an auction. From a buyer's agent's point of view, it doesn't really matter much. Their experience would have told them what the property is worth and the price range it will likely sell for. Experience in the market is important here. In this article, we’ll discuss: What the reserve price actually is Why it’s rarely disclosed before or during an auction The pros and cons of disclosing vs not disclosing the reserve How this affects buyers and sellers in Melbourne and across Australia Practical tips to protect yourself as a buyer What Is a Reserve Price at a Property Auction? The reserve price is the minimum price the vendor is willing to accept at auction. If bidding reaches or exceeds the reserve , the property is usually “on the market” and will usually be sold to the highest bidder. If bidding doesn’t reach the reserve , the property is typically “passed in” and negotiations happen afterwards with the highest bidder and other interested parties. Sometimes, the next higher bidder might also be asked to prepare for negotiations, in case the higher bidder could not reach an agreeable price. In Melbourne, Victoria and most of Australia, the reserve: Is set by the vendor , usually in consultation with the sales agent Is not required to be disclosed to buyers before or during the auction Can be adjusted on the day (and during the auction) , depending on buyer interest and bidding strength How Do You Know the Auction has Exceeded the Reserve Price? You’ll often hear the auctioneer say: “Ladies and gentlemen, we are now on the market.” That’s your only official clue that bidding has reached or surpassed the reserve price. Why the Reserve Price Is Usually Kept Secret So, if the seller will not sell below a certain price, what’s the logic behind keeping the reserve a secret? It is more tactical strategy, rather than a legal requirement. 1. Uncertainty Creates Competitive Tension If reserve price is disclosed , every buyer knew the reserve was exactly $1,400,000: Buyers capped at $1.3m wouldn’t even bother registering or turning up. Buyers willing to pay up to $1.45m might only bid just above $1.4m and hope no one else pushes them. By not disclosing the reserve , the agent is trying to: Keep more bidders in the game, “just in case” Get buyers emotionally engaged in the auction process Encourage stretched bidding once people are “in too deep” to easily walk away Uncertainty creates hope. Hope fuels a anticipation. Anticipation means extra bids. Extra bids fuel the final sale price. From a vendor’s perspective, that uncertainty is a feature, not a bug. 2. Flexibility to Move the Goalposts If the vendor publicly said: “Our reserve is $1.4m.” They’ve effectively set their price. But in real life, campaigns are messy: Sometimes buyer interest is stronger than expected – plenty of bidders, multiple contract requests, people throwing around big numbers. Sometimes interest is softer – budget limitations, weather factor, shoes-off factor, nervous buyers, negative building reports, or just a quieter market. By keeping the reserve secret, the vendor and sales agent can flexibly to maximise the sale: Increase the reserve on a hot campaign Reduce the reserve on a weak campaign Decide on the day whether to put the property “on the market” or pass it in and negotiate This flexibility can easily be worth tens of thousands of dollars to a vendor. 3. Undisclosed Reserve Price Favours the Seller In almost every auction campaign, the vendor and sales agent know far more than any buyer: All private offers received Buyer numbers at open homes How many contracts have gone out The vendor’s true “walk-away” number Other offers that may be conditional or off-market Most buyers only know: Their own budget The quoted range A handful of comparable sales (if they’ve even identified them correctly. Most don't.) By not disclosing the reserve, the seller preserves that information advantage. Once you, as a buyer, know the reserve: You can guess their expectations and read their intent You can make more calculated decisions (or walk away entirely) You have more leverage when negotiating after a pass-in Sellers and sales agents are not going to make it easier for you. They’re trying to keep the upper hand. 4. More Hopeful Buyers Means Better Outcomes for the Vendor In a typical auction campaign, a huge portion of buyers walk into auctions thinking: “ We’ll see how it goes. If it looks like it might be in our range, we’ll bid. ” If the reserve was clearly above their limit, those “maybes” would stay home. When the reserve is hidden: More people register to bid More bidders, at least in the early stages The auction has a larger audience, which: Encourages under-bidders to stretch Creates social proof that the property is “worth it” Intimidates more cautious buyers Even buyers who never stood a real chance at buying still serve a purpose. They push up the price for the vendor. Pros and Cons of Not Disclosing the Reserve Price Let’s look at it clearly from both sides. For Sellers: Benefits of NOT disclosing the reserve: ✅ Maximises competitive tension – buyers don’t know where the finish line is ✅ Keeps more buyers in the race – even those whose budgets are borderline ✅ Maintains flexibility – vendor can adjust the reserve based on interest ✅ Preserves information advantage – harder for buyers to game the process ✅ Often leads to higher final sale prices , especially in strong markets For Sellers: Cons of NOT disclosing the reserve: ⚠️ Some serious buyers may refuse to play the game and they do avoid auctions altogether ⚠️ Almost certainly create mistrust , especially if the quote range is obviously low compared to where the property actually sells ⚠️ Risk of a messy post-auction negotiation if buyers feel they were misled or “used” as price fodder For Buyers: Benefits of NOT Knowing the Reserve Price Honestly, for buyers, there are very few genuine benefits here, but there are a few: ✅ You might occasionally get a nervous vendor who lowers their reserve on the day if bidding is weak ✅ If you’re the only serious bidder and the property passes in to you, you can sometimes flip the table and negotiate hard after the auction. ie.. ✅ You can sometimes pick up a good deal at auctions, if the sales agents had not run it properly For Buyers: Cons of NOT Knowing the Reserve Price ❌ Wasted time and emotional energy turning up to auctions that were never realistically in your budget ❌ Harder to plan your max bid strategy when you don’t know whether you’re close or miles away ❌ Easy to overpay in the heat of the moment, especially if you’ve already mentally moved into the house ❌ Feels intimidated . The feeling that the whole process is stacked against buyers, which, frankly, it is. Fear forces your mind to work in survival mode, to want to win the auction . Pros and Cons of Disclosing the Reserve Price A few sales agents, usually in softer markets or with highly transparent agents, do disclose the reserve or at least a very tight “it will definitely sell above X” figure. Yes, despite the excuses some sales agent might say, in Victoria, the law does not ban an agent from disclosing the reserve price. So, what happens if reserves become more transparent? For Sellers: Pros of disclosing the reserve ✅ Builds trust and goodwill with buyers ✅ Attracts more serious and realistic bidders who know it’s within their budget ✅ Reduces the risk of buyers feeling misled or “underquoted” ✅ Can still sell very strongly if multiple buyers are genuinely at or above that level For Sellers: Cons of disclosing the reserve ❌ Fewer casual bidders on the day. You lose some competitive tension ❌ You remove the ability to quietly raise the reserve if the campaign is going better than expected ❌ You might create a glass ceiling on the price ❌ You lose leverage in post-auction negotiations. Buyers know exactly what you want. Overall, for most vendors, the cons outweigh the pros. That’s why genuine reserve disclosures are very rare. For Buyers: Pros of Knowing the Reserve Price ✅ You know upfront whether it’s worth attending or bidding ✅ Easier to plan a bidding strategy and set your walk-away number ✅ Less emotional manipulation. You’re not being used just to “get the bidding started” ✅ More transparency, less theatre For Buyers: Cons of Knowing the Reserve Price ❌ You may face stronger competition from other serious buyers who now know it’s within reach ❌ The vendor might set the reserve unreasonably high if they think the market will tolerate it. Afterall, they can still negotiate with the highest bidder if the property passed in. ❌ Less chance of “getting lucky” if a nervous vendor might have reduced their reserve quietly on the day Is Not Disclosing the Reserve Price a “Waste of Time”? Well, that depends on who you are in the property sale and purchase transaction. From a buyer’s perspective, yes – it often feels like: A waste of Saturdays A waste of emotional bandwidth A waste of money on those unnecessary Pre Auction Building and Pest Inspections and Contract Reviews . A process designed to extract maximum dollars with minimum transparency From a vendor’s and Sales Agent’s perspective, it’s simply: A strategic tool to maximise the final price A way to keep options open until the last possible moment A standard part of auction strategy, not a personal attack on buyers A quick way to sell properties, without the hassle of negotiations, etc. Properties sold at auctions are unconditional. The key is to be confident in real estate investing is to recognise and understand the game you’re playing, then decide how you want to respond. How Can Buyers Protect Themselves in an Auction, Without Knowing the Reserve Price? If you’re buying at auction in Melbourne (or anywhere in Australia), a few practical strategies help you fight back against the “mystery reserve” problem: 1. Ignore the Quoted Price Range. Do your Independent Homework. Treat the advertised range as marketing, not the truth. Learn the Top 9 Tips to Win Auctions . Look at recent comparable sales Adjust for renovations, location, etc. Build your own value range, then set your absolute walk-away number If the property sells way beyond that, it was never yours in the first place. The full process to manage auction is here . 2. Ask the Agent the Right Questions (and Read the Answers Properly) You won’t get the reserve, but you can read between the lines, you can still ask: “What level would definitely buy it prior?” “Has the vendor rejected anything so far?” “If it passes in, what price do they want to see to sell today?” Sales agents will not give you a clean number most of the time. It is their tactical advantage. But their reply, how they reply, often tell you a lot. 3. Decide Whether to Hid, and How If the property looks underquoted compared to reality: You can still attend and bid, but go in with good discipline. Walkaway when you have to. Avoid bidding just because “the crowd is moving” – that crowd isn’t paying your mortgage. If you’re close but not quite in range: Sometimes the smarter move is to let it pass in and see what happens in a private negotiation afterwards, particularly if bidding is weak. 4. Get a Professional in Your Corner Property buying is always stacked against the Buyer. The Seller is supported with: Listing agents Auctioneers Vendor’s advocates Lawyers and conveyancers While the only support on the buying side , is often only Google and nerves. Do you homework diligently or employ a good buyers advocate who will: Analyse true value, not agent spin Read the campaign strength and likely vendor expectations Provide live guidance/strategy during auction, whether to push, negotiate prior, or walk away Bid on your behalf, protecting your price and nerves, without getting emotional and revealing your limit Negotiate strongly with the sales agent if the property passes in. The Case for Getting Assistance from Buyers Advocates. And it is Not Expensive. In Australia and Melbourne, the property buying system is designed heavily in favour of the seller, having someone on your side who plays this game every week isn’t a luxury. It is a risk management necessity. The Buyers Advocates levels the playing field and moves the odds to your favour. If you find yourself struggling with property auctions in Melbourne, do get in touch. For a small fee, our Auction Bidding and Negotiation service is a cost effective way to stay focused, bid confidently at auctions, and protect your budget and lessen your stress during auctions. What Happens If the Law Forces Agents to Disclose the Reserve Price Before Auction? The Victorian government recognises that underquoting seems rampant in the real estate industry, and not disclosing the reserve price is seen as one of the contributing factors to the feeling of the property being underquoted. So, they are intending to change this. There are plans to make the disclosure of reserve price compulsory. Will this effectively stop underquoting? Will the sales agents work with or will they work around this new rule? I can bet, there will be ways around it. And we have already identified at least 5 ways the sales agents can navigate around this new rule. Read this article to find out if this will stop underquoting and how sales agents will work around this. Will the Property Sell When the Auction Price is Over the Reserve Price? Short answer: usually yes once a binding contract is formed – but the key is when that actually happens. And this is where most people (and plenty of agents) blur the line. This article will discuss the situation and when it may not sell, even if the auction price is above the reserve. It is rare, but I does happen. Is Disclosing the Auction Reserve Price a Fairer, More Balanced System? In theory, it can, but in practice, no. Very unlikely, unless the other parts of the campaign are locked down or banned, which is very unlikely. Sales agents' loyalty is to the seller. They find ways to extract the highest price for the vendor. That’s literally legally their job. And to the sales agents' credit, that is the job they will do well. You, as the buyer, your job is to understand the rules and various processes of the real estate game well, identify their weakness, then work with them. Final Thoughts: Should Reserves Be Disclosed? In an ideal world, yes. Reserve Prices would be clearer, property buyers would be more focused and would waste less time, and auctions would feel less like theatre and more like a transparent market process. In the real world, the auction system is currently (and will always be selectively optimised) to: Maximise outcomes for vendors Optimise leverage for selling agents Keep buyers just uncertain enough to turn up and bid Until the law or the industry culture changes, the REAL Reserve Price will remain a closely guarded secret, now and in future. As a buyer, your options are: Learn the game, do your homework diligently and play it strategically Or get someone who already knows how to play it on your side Either way, don’t mistake “no reserve disclosure” for “no control”. You can never control the reserve price, but you can absolutely control how you adapt your strategy and engage with the auction and property sales process. FAQ – Frequently Asked Questions Reserve Prices and Property Auctions 1. Is the reserve price the same as the quoted price range? No. The reserve price is the vendor’s minimum acceptable sale price. The quoted price range is a marketing tool used to attract buyers. The range may be loosely based on comparable sales, but it’s also influenced by the agent’s strategy and the vendor’s expectations. Never assume the top of the quote range is the real reserve. 2. Can the reserve price change before the auction? Yes. In most Australian states, the reserve can currently be changed at any time up until it’s formally set and the property is announced “on the market” during the auction. If buyer interest is strong, agents often encourage vendors to lift their reserve. If interest is weak, the reserve may be reduced to encourage a sale. 3. How do I know when bidding has reached the reserve price? Listen for the auctioneer saying something like: “Ladies and gentlemen, we’re now on the market and selling.” That statement means bidding has reached or passed the reserve and, barring anything unusual, the property will be sold to the highest bidder. If you don’t hear those words, the property may still be below reserve and could be passed in. 4. Why don’t agents just tell buyers the reserve price? Because keeping the reserve secret generally benefits the vendor: It maintains competitive tension. It keeps more bidders in the mix. It allows the vendor to shift expectations as the campaign evolves. It preserves information asymmetry, which gives the seller the upper hand. Transparency makes buyers’ lives easier. Auctions aren’t designed for that. 5. What should I do if I think a property is underquoted? Focus on your own valuation, not the quote. Check multiple comparable sales (same suburb, similar land size, condition, and location quality). Work out what you think is fair value and your absolute maximum. If the campaign looks obviously underquoted, assume competition will push the price closer to its true market value. If you’re consistently seeing properties sell way beyond where you expect, it may be time to reassess your budget or brief, or get professional help. 6. Would forcing agents to disclose the reserve price help buyers? It would help a bit – mainly by: Cutting down on auctions you attend with no real chance of buying Making it easier to plan your bidding strategy Reducing some of the guesswork and emotional manipulation But agents would adapt by: Pushing harder for pre-auction deals, Adjusting quote ranges and “expectations” earlier, and Using disclosed reserves as a floor, not a ceiling, to drive competition. So yes, it helps – but it doesn’t magically turn auctions into buyer-friendly events.

In an environment where interest rates and cost of living expenses are high and rising, more and more property owners are finding themselves struggling to service the mortgage repayments. While some lucky property owners have the option of tightening their belts and cutting back on expenses to keep mortgage repayments up to date, others may find themselves reacting too slowly or inadequately, leading to precarious situations. If you have a mortgage, having the bank or lender repossess your property is one such situations where no property owners want to be in. So, what happens when you are late on payments and when you receive a call or notice from your bank or lender, indicating your property will be repossessed? This blog article will help property owners understand what goes on during the repossession process, and help you explore ways to avoid being caught in one. This article is a broad representation of a typical repossession process used by the Australian banks and lenders, and it is specific to the Australian property market. And as usual, each of bank or lender will have different variations of this process. What is a Mortgagee in Possession? A Mortgagee in Possession, in Australia, refers to the situation where the lender, typically a bank, financial institution or private financer, takes possession of the property and / or collateral, due to the borrower's inability to meet their mortgage repayment commitments. Essentially, it means the property will be repossessed by the lender because the borrower has defaulted on their mortgage obligations. This Mortgagee in Possession process is initiated by the lender to recover the outstanding debt owed by the borrower, after several missed repayments, and over an extended period of time. In Australia, when the lender decides to initiate repossession orders, it usually means the lender no longer believe the borrower will be able to resolve the situation. This also means the borrower might have a debt so high that the lender are unable to recover without selling the property or any other collaterals. It can also mean the lender and borrower are unable to work collaboratively to avoid a repossession. What Happens Before a Property is Repossessed? Before a repossession is initiated, the lender will usually try to be fair and work with you to define a plan for you to catch up with the arrears. This could be restructuring the mortgage, agreeing to give you a pause in repayments (repayment holiday), etc. It is in your best interest to work with the lender to either resolve the outstanding debt or define a way forward, with the lender. If this fails, or the borrower could not agree to a way forward, the lender would be left with no choice but to initiate the repossession process. What is the Property Repossession Process in Australia? When all else fail, and the lender decides to proceed with the repossession, this is what usually happens. As usual, different lenders and different circumstances would have a slightly different process. But here's what typically happens when a property is repossessed: Notice of Default : The lender issues a Notice of Default to the borrower, informing them that they are in breach of their mortgage agreement due to missed repayments, etc. They will encourage the borrower to work with the lender to arrive at a solution agreeable to both parties. Attempted Resolution : The lender will usually attempt to work with the borrower to find a solution to the delinquency, such as renegotiating the terms of the loan or offering a repayment plan. Most lenders will usually try to work with the borrower before sending a notice of default. Legal Proceedings : If the borrower fails to rectify the default or comes to an agreeable solution, the lender may commence legal proceedings to repossess the property. This involves obtaining a court order for repossession. Repossession : Once the court grants the repossession order, the lender takes possession of the property. This may involve physically evicting the occupants, if necessary. And you may come home one day with the locked changed or the doors sealed. If it is a rental property, the renters would usually be allowed to complete the lease term, within a reasonable time frame, or they may also be evicted after serving a notice of eviction. Sale of the Property : After repossessing the property, the lender typically seeks to sell the property, in order to recover the outstanding debt owed by the borrower. Depending on the lender, situation and the property, the property may be sold through auction, private sale, or other means. Auction is usually the preferred method, as it is usually seen by the legal team as the most transparent and least biased. Debt Settlement : If the proceeds from the sale of the property do not cover the full amount owed by the borrower (including the outstanding mortgage balance, interests, late fees, penalties and any debt recovery, management, legal and associated costs, etc), the borrower is usually still liable for the remaining debt. In some cases, the lender may pursue further legal action to recover this debt, including seizing any other securities, properties, etc. Lenders Mortgage Insurance (LMI) : If the borrowers have lenders mortgage insurance, the lenders will recover the shortfall from the insurer. But that does not mean the borrower get off scot free. The LMI insurer can and do, in turn recover this shortfall from the borrower. Surplus Funds : If the sale of the property generates more proceeds than the total debt by the borrower, the excess funds (surplus) may be returned to the borrower, depending on the specific circumstances and applicable laws. Bankruptcy : If the sales did not cover the mortgage and cost of repossession, and you are unable to find funds to cover the outstanding debts or reach an agreement to repay the debts, the creditors may be forced to apply to make you bankrupt. How long does the Repossession Process take? In Australia, the repossession process usually takes between 2 to 3 years. IE, most mortgagee in possession properties will hit the buyers market after a lengthy 2-year process. It's important to note that the process and duration of repossession and sale of a property can vary significantly depending on factors such as the terms of the lenders' internal processes, lenders' mortgage agreement, state laws, negotiations between lender and borrower, lender's and the borrower's circumstances, etc Does Bankruptcy End Your Debt? Contrary to popular belief, being bankrupt DOES NOT wipe your debt. You are still liable to repay your debts. Your income, salary, other properties and possessions of value may also be garnished, force sold and the returns distributed to your debtors. Your name will also be recorded permanently in the National Personal Insolvency Index (NPII), and you will also face travel restrictions, inability to run a business, difficulty obtaining future credit, insurance, etc. You may also be excluded from certain employment. Your debt is only wiped after the bankruptcy ends, which can vary from 3 years + 1 day up to 8 years. The credit scar, however, can stay with you forever. The NPII record is searchable by anyone. How Can You Avoid a Mortgagee in Possession (Repossession) Situation? To avoid ending up in a mortgagee in possession situation, you need to go back to investment and money making basics. By being prudent with your spending and borrowing, you can usually avoid ending up in such a difficult situation. Mortgagee in Possession situations almost never happen overnight. The repossession process is lengthy and expensive. It can cost the lender tens of thousands to hundreds of thousands of dollars. This cost is usually recovered by adding to your total debt balance. Repossessing the property is usually the last stage of managing a debt in default, and it is a stage where no mortgagee wants to get there. The lender is only keen to recover the debt, and they will work with you to recover the debt. As a borrower, here are a few very simple and basic concepts to prevent yourself from getting into the repossession situation: 1. Avoid Overextending yourself Never stretch yourself beyond your means. Assess your financial capacity meticulously. While a mortgage broker may suggest you can borrow a certain amount based on your income and expenses, you still have to responsibility to borrow prudently. Before committing to any further debts, ask yourself essential questions: Do you need to buy a property worth that amount? Can you comfortably manage the monthly mortgage payments? Is investing that amount in property the best choice for your financial situation? What if you lost part or all of your income? Can you still comfortably afford the mortgage? As much as mortgage brokers tries to help you find the best mortgage, no mortgage brokers or financial experts know you better than you do. Always remember, mortgage brokers earn commissions based on the amount you borrow, so some unscrupulous mortgage brokers will push you to borrow more. Be cautious and prioritize your own financial stability . 2. Be wary of Free Property Investment Seminars by Spruikers We get it. Free property investment advice sounds like a steal. But let’s be honest: we know there is no such thing as a free lunch. We’ve sat in rooms where smiling “property gurus” hand out coffee, snack and promises, only to push you towards developer-funded property "deals" that line their pockets, not yours. They’re banking on your naiveness, excitement (and your budget) to drive their commissions. Often, it’s the very property investors and buyers who cannot afford a loss who get caught in these traps. And this brings us to the next point. 3. Avoid Negatively Geared Properties Negatively geared properties involve incurring losses with the hope of future profits. It effectively means you're losing money, hoping to make money in future. This strategy is usually suitable for wealthy investors who can absorb losses without significant impact to their lifestyle. Unfortunately, spruikers and fake property investment "strategists" and real estate project marketers often use such free property investment seminars to target individuals, selling massively negatively geared properties, promising "potential future growth". While negative gearing may sound good, it should be used with caution. Negative gearing can bite you very hard during a property or economic downturn and when interest rates are rising. Before diving into negatively geared investments, consider whether you can afford the risk: Can you afford to potentially lose the property? Assess the implications of high-interest rates on such investments. It's concerning that some individuals explore negative gearing when interest rates are high, without fully understanding the implications. Negative gearing is effectively losing more money to save on taxes. It's akin to losing a dollar to save 30 cents – a scenario nobody should desire. In the Australian investment environment, if you like losing $1, to save 30 cents, let us know. I'll send you my bank details. For every dollar you deposit, I'll return 30 cents to you. Okay... Let's make it 35 cents, for every dollar you send us. 4. Chase Quality not Quantity Choose your investment properly. Go for quality, not quantity. There is no need to chase X number of investment properties. The idea of more investment properties equates to greater wealth is used by property spruikers for marketing purposes. The reason? They earn commission for every property you buy. Do they really own those property? No. As long as they have a mortgage on them, the bank has control of it. 5. You Only Need 3 Properties to Retire You do not need hundreds of houses to retire. You only need 3 good, strategically selected ones to retire. This article explains what it takes for you to retire. By being careful with the properties you select, you can be a step ahead of everyone else, without overextending yourself, and stay out of debt. Bottom line: Stay within your means, dodge the hype, and buy smart. By adhering to these principles and making informed decisions, you can safeguard yourself from the risks associated with Mortgagee in Possession situations and ensure a more secure financial future. What Should You Do, if You Think Your Property May Be Repossessed? If you're concerned that your property may be repossessed due to financial strain, it's essential to take proactive steps to mitigate the situation:: Review your expenses: Conduct a thorough review of your expenses to identify areas where you can cut back. Look for non-essential expenses that can be eliminated or reduced to free up more funds for mortgage repayments.. Increase your income: Consider ways to boost your income, such as taking on a second job or pursuing opportunities for higher-paying employment. Generating additional income can help alleviate financial pressure and improve your ability to meet mortgage obligations Assess Troublesome Properties: Evaluate which properties in your portfolio are causing the most financial strain. Identifying these properties allows you to prioritise them for action, whether through restructuring loans, refinancing, or selling the property. Explore Refinancing : It might be too late, as the banks would have tightened their lending, so, you might not be able to refinance. But it is worth a try. If you're using a mortgage broker though, be wary what you info you share. Mortgage brokers usually have connections asking for cheap properties. They will be low balling your properties. Talk to the Bank or Lender : This might be counter-intuitive, but remember, the banks are not in the real estate business. They want their money back and they will be keen to work with you to try to recover what you owe them. Explain your situation to them, and if you are sincere and cooperative, they might be able to work out a payment option with you. They may allow you to delay your payments, or restructure your mortgage to lower your monthly payments, or allow you to try to sell the property before they do. Explore Selling Your Property: If you're struggling to maintain multiple properties, consider selling the properties that are causing the most financial stress. OR selling the properties with the most equity in them. Liquidating assets can help alleviate financial burdens and prevent / slow further escalation of debt. There is no single best solution, but if you would like to have a chat with us, we can help you assess your best option. Seek Professional Assistance: Reach out to professionals such as buyers advocates and property investment advisors like us , or financial advisors who can provide guidance and support during this challenging time. Consult with financial advisors or property experts to explore viable solutions and navigate the repossession process effectively. Be Proactive : This may be a stressful moment for you, but it is not the time to be emotional. Do not delay seeking assistance if you anticipate repossession. Acting promptly allows you to explore options and take necessary steps to protect your financial interests before the situation escalates further. You need to avoid getting yourself into a repossession situation. Be Proactive. Act before the bank does. What Should You do to Avoid the Mortgagee in Possession Situation? Borrowers facing financial difficulties should seek advice from a financial counselor or legal professional to understand their rights and options. Consider selling some or all properties, before the bank does. If you are selling, selling through a real estate sales agent is NOT the only way to sell your property. Consider using effective, low-cost options, such as selling it yourself, to your friends and relatives. Also explore our vendor advocacy options, where we can either match a buyer for your property, at no cost to you . We help to find the best agent to sell your property, plus keeping them honest, saving you from paying excessive sales commissions, or help you find the best sales agent and keep them honest. Can You Negotiate with the Mortgagee to Avoid Repossession? Yes and no. It depends on how far you are behind in repayments, how cooperative you had been with your Mortgagee, your relationship with the Mortgagee and your personal circumstances. If you have been proactive, chances are, you can avoid getting yourself in this sticky situation. And if you do find yourself in a potential repossession situation, your mortgagee is more likely to work with you for a mutually beneficial situation. But if you (or your mortgage broker) had been dodgy and lying to the mortgagee, you can be sure they will be the least cooperative when you needed them. Always be proactive, upfront and honest with your mortgagee. How can You Negotiate with Your Mortgagee? If you are early in the process and your mortgagee allows it, here are some tips to negotiate with your lender. Things You Should Remember When You Negotiate With the Mortgagee There is one fundamental thing you need to remember when you negotiate with the lender. The business model of the major banks and lenders is not about owning properties or selling properties. They lend you the money for your properties on the premise that you can repay the principal plus the agreed interests. Thus, within reasons, banks will try their best to negotiate, and accommodate your needs, so they can avoid having to force sell your properties. If all things failed, and they have to force sell your properties, it means they believe it is too late, and they do not see you recovering from your debts. This also means they will not be the happiest person. It is a business transaction to them, with no emotions attached. If they have to take possession or your property, you can be sure they will send their best team to do it, in the shortest time possible and with the highest possible fees, interest rates and charges. Always remember, interests on your debt do not stop accruing until you pay it off or until they make you bankrupt. What Happens After Your Property is Repossessed and Sold? After your property is repossessed and sold, the best you can hope is for the sale to clear all of your debt. This gives you the opportunity to start afresh, sooner. If you are in a negative equity situation, you're in big trouble. Your property will be force sold and you'll be left with the balance of the debt. Thus, low deposit schemes, and high yield properties (which usually means very low or negative growth), should be avoided where possible. After Selling, Can You Ask for Early Release of Deposit to Pay Off Your Debts? In some states, such as Victoria, you, as the seller might be able to ask for an early release of the deposit after selling your property. In Victoria, the Section 27 for allows the sellers to make this request. However, as a person with debts in default, trying to ask for an early release of deposit is a tricky question. The answer is yes and no. There is no straight forward answers. It depends on how cooperative you had been, how honest and upfront you had been, and the reason / purpose for asking an early release of your deposit. This request needs inputs from the mortgagee and the buyer's conveyancer / solicitor. The mortgagee/s will include information such as: Amount you owe, and at what interest rates Are you in default (ie, have you missed payments) Mortgagee's inputs (advice) to the buyer's decision process. When the buyer's conveyancer or solicitor realise the debt is in default, chances are, they will reject the early release of money. As the buyer will be assuming the responsibility of losing the deposit, if the settlement does not proceed. That said, money from the sale of your property has to go towards paying off your mortgage and debt. So, the money technically, does not belong to you. It belongs to the mortgagee. Any money that is released early has to go off paying the secured debt as a priority. So, while you might hope you can use the deposit to relieve your debt situation, you might realise you might not see a cent of it. However, if you had been upfront and honest dealing with your mortgagee, you would have built up enough trust with the mortgagee, the mortgagee might let you access some of the funds to pay off your other debts, if they are confident there would have sufficient funds remaining in the proceeds of the sale to cover your debts. This is why, if you find yourself struggling to service your debt, it is in your best interest to to be honest with your mortgagee . Mortgagees will usually dislike borrowers who are not honest with them. How Long Does It Take to Repossess Your Property? The repossession process may take up to 2-3 years of more, and your debt does not stop accruing interests, even when you no longer have access to your property. You are usually liable for any interest accrued until your debt is completely paid off. If your debt still remains after the property is sold, the court may grant the mortgagee the right to garnish any other assets, monies from your savings, and / or income or salary. Mortgagee will usually not stop, until they recover every cent you owe or until they make you bankrupt. How Can Buyers Advocates Help You Avoid Repossession? Buyers Advocates can play a crucial role in helping you avoid repossession by providing timely assistance and access to potential buyers for your property: Access to a Pool of Ready Buyers : Buyers Advocates have established networks and connections with qualified buyers, ready to buy properties. By reaching out to them, you gain access to a pool of interested buyers who are ready to purchase your property. Swift Action and Response : If you suspect that your property may be at risk of repossession, it is essential to act swiftly. Buyers Advocates can provide immediate assistance and support, offering guidance on the best course of action to protect your property interests. Opportunity to Sell Before Repossession : By engaging with Buyers Advocates early in the process, you have the opportunity to explore selling your property before repossession proceedings begin. This proactive approach can help you avoid the negative consequences associated with repossession. Potential Cost Savings : Selling your property through Buyers Advocates may result in significant cost savings compared to traditional real estate transactions. Because these buyers have already paid the buyers advocates a service fee, they will not charge you any sales commissions. With no commissions involved and access to qualified buyers, you can usually sell your property fast and saving tens od thousands of dollars in commissions, fees and expenses. Expert Guidance and Support : Genuine Independent Buyers Advocates  offer expert guidance and support throughout the selling process, helping you navigate complexities and make informed decisions. Their industry knowledge and experience can be invaluable in securing a favorable outcome. SPEED Prevents Further Financial Strain : Debt interests do not stop accruing until the debt is paid off. By selling your property fast before repossession occurs, you can prevent further financial strain and minimize the impact on your credit rating and financial stability. Buyers Advocates can help expedite the sale process, ensuring a smooth transition and resolution. Timely Intervention : Seeking assistance from Buyers Advocates at the earliest indication of financial difficulty allows for timely intervention and mitigation of potential risks. Their proactive approach can help you address challenges effectively and protect your long-term financial interests. If you are in a no-return situation, the earlier you sell, the less interest and debt recovery costs you will owe your bank/lenders/creditors. Talk to us Before the Bank Repossess Your Property We hope our readers do not find themselves in such a situation. But if you do, talk to us. Our Buyers Advocates will discuss how we can offer proactive and effective solutions for avoiding repossession by facilitating the sale of your property to qualified and ready buyers. Our expertise, network, and timely intervention can make a significant difference in preserving your financial well-being and securing a positive outcome for you. We have a constant pool of buyers who are ready to buy your properties. If your property meets the criteria our buyers are looking for and they buy it, you can save yourself over $30k-$100k or more in sales commissions and other expenses. This is quite a substantial savings, but you will need to come to us before the bank initiates their debt management and repossession process. Disclaimer : Information provided here and anywhere in our website is general information only, and should not be taken as financial or legal advice. It does not take your personal circumstances, needs and requirements, etc, into consideration. You should always seek formal legal and financial advice for solutions to suit your individual circumstances.

You would have seen them. Social media “property gurus” or random forum threads, proclaiming to have found "secret BOOM locations", bullet proof investment strategies, "free investment advice". Your internal alarms could have sounded. Are they for real? How do these claims stack up in the real world? As Buyers Advocates in Melbourne, we see what actually happens in the property market, auctions, in finance approvals, during building inspections, and after settlement. We intimately follow through our buyers progress from start till end, and here's what we've found. In this article, we have complied top 10 real-estate investment myths, and the truth, backed by on-the-ground experience and data. Myth 1: “Property always doubles every 7–10 years.” Truth : Long-term property can grow. But growth is lumpy, uneven, and suburb-specific, and property specific. What actually happens : The type of property, and location matters. Some pockets boom, others flatline or crash in values, and stay that way for years. Timing, supply, location, local amenities, and demographics matter. In Melbourne, school zones, transport amenities / upgrades, and gentrification can shift trajectories. Expect cycles. In most areas, expect prices to rise and fall not straight lines. Myth 2a: “Negative gearing makes you rich.” Truth : Negative gearing is a tax treatment, not a wealth strategy. What actually happens : You’re losing cash flow to (hopefully) gain capital growth. If growth underperforms, you’ve subsidised your own loss. And it can stay that way for years. Without growth, there is absolutely no benefit in negative gearing. To truly benefit from negative gearing, smart investors prioritises good locations and properties over sustainable cash flow. Location and property selection is critical. Myth 2b: “High yield beats everything.” Truth : Conversely, yield is only half the story; total return = yield + capital growth - holding costs. What actually happens : Good yielding (cashflow) properties usually growth at a lower rate. Balance yield for holding costs and growth for equity build. Myth 3: “You can time the market perfectly.” Truth : Accurately picking exact tops / bottoms is near impossible. Most people won't know it's top / bottom until the market changes. And unless you are perfectly in tune with the market, you are no different. What actually happens : Most wins come from time in the market and buying the right asset at a right price. We focus on fundamentals, due diligence, fair value, and quality, then hold it. Myth 4: “Buy the cheapest suburb. Value is value.” Truth : Cheap is not the same as undervalued. What actually happens : Ultra-cheap is often cheap for a reason. It usually means structural issues: oversupply, poor amenities, low socio-economic, high vacancy, or poor build quality. In Melbourne, we go for value, and avoid purely price-led buying and weigh owner-occupier demand, livability, and supply constraints. Myth 5: “Off-the-plan/new apartments are low risk and always appreciate.” Truth : Many off-the-plan apartments underperform; some face defects or oversupply. What actually happens : Stamp duty savings can be outweighed by resale discounts, weak land content, and high owners corporation fees. Apartments are being over-supplied in almost every major Australian city. Investors losing hundreds of thousands of dollars during the first 10-15 years of ownership is common. Do due diligence checks on builder, track record, and owners corp reports. Myth 6: “Renovate anything and you create instant equity.” Truth : Renovations generate equity only when scope, cost, target buyer, and resale value align. What actually happens : Overcapitalisation is common. In Melbourne, kitchens/bathrooms and floor-plan fixes in family suburbs may work; cosmetic flips in oversupplied investor pockets often don’t. Get quotes, and resale evidence before swinging a hammer. Myth 7: “Buy where you live/know. It is safer.” Truth : Familiarity ≠ fundamentals. What actually happens : Your local coffee shop vibe won’t replace hard data: days on market, vacancy rates, income profiles, stock on market, rental demand, school zoning, and planning restrictions, eg, flood/bushfire/heritage. Use facts (data) first; then apply local nuance. Myth 8: “Auction wins mean you paid market value.” Truth : To win, you have to pay the top price among bidders that day, not necessarily fair market value. What actually happens : Campaign strategy, quoting ranges, and emotional bidding can push prices beyond fair value. Our buyers agents appraise the property independently, set walk-away numbers, and stick to them. Myth 9: “Any buyer’s agent is the same. Just pick the cheapest.” Truth : Experience, integrity, advice quality, independence, and local execution vary widely. What actually happens : Melbourne’s micro-markets are nuanced: school catchments, tram/train trade-offs, street-by-street overlays, and builder quality history. New Buyer's Agents entice clients with low fees, and clients pay for the inexperience through poor buying intelligence. Myth 10: "We can crowdsource the next investment hotspots" Truth : Every investor and every property is different. What works for one investor, usually would not work for the other. And you risk buying into an overheated location. What actually happens : Investors usually hype up the locations they had invested in, to manipulate the demand. Demand is a driver for price growth. The risk of buying into an overheated location is high. And crowdsourced opinions almost never match your brief or risk profile and you locations often turn up after the best opportunities are already priced in. This article explains more . 5 Bonus Myths Debunked Bonus Myth (1): "There are always 3 secret BOOM Locations" Truth : There is some truth with this. There are always more than 3 BOOM locations. You just need to know how to find them. What actually happens : Australia's property market is made up of thousands of micro markets. Each property type, location type, zone, region, suburb, can have its own dynamics. There is always a good location for your budget and goals. You need to identify them. Following the "3 BOOM locations" strategy usually means you are buying developer stocks. Properties which these fake strategists have to sell. Bonus Myth (2): "Locations nearer to CBD have better growth." Truth : Locations near CBD is rarely the better performer. What actually happens : In Melbourne, the best performer is between the 20-30km radius from CBD. And the difference can be significant. Properties in the 20-30km band had performed about 25% better than properties in the inner ring (under 20km). Bonus Myth (3): "The more expensive the property is, the better it will grow." Truth : It probably can be true, if you consider the dollar value. However, the best percentage performer is in the first home buyer budget range. What actually happens : In Melbourne, properties in the first home buyer budget range perform 20-25% better than more expensive properties. Bonus Myth (4): "Data Don't Lie." Truth : Data don't lie. That's the truth. But there is more to this.. What actually happens : Most people don't know how to read raw data. You read the narratives that come with the data. And guess what? The narratives are often twisted by the property sales and marketing agents to suit their sales agenda. Always read these marketing spew with a pinch of sale. Bonus Myth (5): "Buyers Agents Can Buy a Property Remotely." Truth : Yes they can. In fact, anyone can. You do not need to spend on a Buyers Agent for that capability. What actually happens : Most Buyers Agents claim to use data. However, data does not show everything an investor need to know to get ahead. An experienced local independent buyers advocate with no sales kickbacks, deep suburb intel, and rigorous due diligence, who can personally inspect the property, can save you multiples of the fee by avoiding lemons and overpaying. How smart investors actually stack the odds Given the property investment scene is filled with so much myth, and that there is no sure win formula, how do investors avoid the pitfalls? Define the objective: Capital growth, yield, or a balanced brief—then match asset type and suburb. Use a valuation mindset: Comp sets, land value, improvements, and replacement cost. Pressure-test cash flow: Interest buffers, rising insurance/rates, realistic rent assumptions. Interrogate risk: Build quality, strata health, maintenance, flood/bushfire/overlays, future supply. Think demand drivers: Owner-occupier appeal, incomes, infrastructure, schools, lifestyle nodes. Avoid hype: “Hotspot lists” and crowdsourced tips often arrive after the move is priced in. Quick answers (FAQ snippets) Q: Do Melbourne properties always go up? A: No. Growth is cyclical and property-type and even suburb-specific. Buy quality and hold through cycles. Q: Melbourne properties go through a 18 year cycle. There is NO 18-year clock. The 18 year clock might be true for some states at a top aggregated level, but we invest at the property level. The 18 year clock is good marketing spew, but suburbs and property types often do not cycle with a 18-year clock. Some cycles are shorter, some longer. Q: Is negative gearing a strategy? A: No. It’s a tax treatment, and often mis-used by project marketing and sales agents to sell overpriced underperforming properties. Focus on asset quality, not tax offsets. Q: Should I chase the highest yield? A: Yes, but not blindly. It needs to fit your investment goals. Balance yield with growth drivers for total return. Q: Off-the-plan or established? A: Established, land-rich, scarce assets typically have better long-term growth. You need to verify case by case. Q: Renovate for instant profit? A: Only happens in social media. You need to work through the scope, cost, and buyer demand. Otherwise you risk overcapitalising. Majority of the profits are around $50,000, after purchasing costs, selling costs, taxes, renovation and holding costs, for about 6-12 months' work, if you get it right . Many don't. Consider if this is worth your effort. Q: Can I time the bottom? A: Rarely. Do you have a crystal ball? Relying on data? Trends only shows on data AFTER 6-12 months. IE, you would have missed the bottom by 6-12 months. No-one can get the bottom right, but if you are on the ground every week, you will be able to spot trends before it shows up on data. Prioritise fair value, quality assets, and let time do the rest. Red flags we see in Melbourne due diligence There are however some certainty with redflags such as: Owners corporation (body corporate) stress: Low sinking funds, special levies looming, water ingress/defect history. Overlays & planning: Flood/bushfire, heritage, planning zone nuances, set-back and subdivision limits. Rental risk: Unrealistic advertised yields, short-term rent holidays, or landlord-unfriendly floor plans. Maintenance traps: Asbestos, illegal works, termite history, or major structural movement. Street/position factors: Backing major roads, railway noise, or problematic neighbouring uses. A smarter blueprint for property investors in 2026 Clarify your brief (growth vs yield, budget, time horizon, risk). Screen suburbs with data (DOM, vacancy, income growth, stock pipeline). Shortlist property types with owner-occupier appeal and scarcity (family homes, quality townhouses, select boutique apartments). Run cash-flow scenarios at higher rates and with conservative rents. Do the boring work: building & pest, strata review, contract conditions, zoning checks. Negotiate or bid with discipline. Anchored to evidence, not emotions. Final word Property investing isn’t about clever loopholes or magical “doubling” formulas. Neither is it copying what your friend did. It’s about buying the right asset, at the right price, with the right risk controls. Then let time and demand do the heavy lifting work for you. If you’d like a second set of eyes on your shortlist, or want us to find, assess, and negotiate the right property for you, Concierge Buyers Advocates can help. We’re an independent Melbourne buyers advocate with fixed-fee services for hands-on and full-service investors. Next step: Send us 2–3 addresses you’re considering (or your brief and budget), and we’ll show you what’s myth… and what’s real.

In the Australian property market, it is common for a buyer to buy a house with the help of a mortgage. A mortgage is a home loan whereby a lender lends you the money, so you can own the property. Most buyers would need a mortgage facility when they buy properties as the price of a typical house in cities such as Melbourne are rising faster than a typical person's savings. Typical Australian mortgages ranges between 20 to 30 years. What’s a 50-Year Mortgage? A 50-year mortgage is exactly that: a home loan that runs for five decades. Australia has traditionally seen 20–30 year terms, but with property prices outpacing wages in some cities like Melbourne, Sydney and Brisbane, some Australian lenders have quietly introduced ultra-long terms to “help” borrowers lower monthly repayments and pass serviceability assessments. Forty-year terms are becoming common, and 50-year loans are being introduced in markets like the US. On paper, a 40–50 year mortgage sounds great: lower repayments, bigger borrowing power, easier entry. In practice, it’s a financial marathon that can outlive your useful working years. For this discussion, let’s assume you’re buying a $1 million home (around Melbourne’s median), with a 20% deposit, at 5.5% p.a. Note: longer terms often attract higher rates, and in Australia rates do move. Historically, rates in the high-teens aren’t unheard of. Loan Comparison — $800,000 at 5.5% p.a. Loan Term Monthly Repayment Total Repaid Total Interest Paid 30 years $4,542 /month $1,635,232 $835,232 40 years $4,126 /month $1,980,558 $1,180,558 50 years $3,919 /month $2,351,258 $1,551,258 The Benefits: Why Some Buyers Like It There’s no denying the appeal, especially for younger or first-home buyers trying to get into Melbourne’s market. Here are the main “pros”: ✅ Lower Monthly Repayments Longer mortgage means lower monthly repayments, which can be good for some. At 5.5% interest, a $1 million property (80% loan = $800,000) over: 30 years costs about $4,542 per month 40 years costs $4126 per month 50 years drops to $3,919 per month Repayment drops between 9% to 15% in a 40 and 50 year mortgage, compare to a 30 year. This can be enough to ease cashflow pressure, or get you through bank serviceability tests. ✅ Increased Borrowing Power Banks assess loans on repayment ratios. A 50-year term stretches those repayments thin, helping borderline applicants qualify. For some, that’s the difference between buying a $900k townhouse in Glen Waverley and settling for a $700k one 10 km away in Clyde North. ✅ Flexibility (If You’re Disciplined) If you treat the 50-year loan as temporary, with the intention to refinance, pay lump sums, or sell within 10–15 years, it can be a short-term affordability foot-in-the-door strategy. The danger lies in treating it as a lifetime plan. The Cost: Why It’s Risky Longer doesn’t mean better. It means you are paying more interest, slower equity growth (more of the growth is going to pay off the lenders), and higher lifetime debt. Putting the numbers together, at 5.5% interest for a $1million house in Melbourne, the total interest you are paying are: 30 year mortgage: $835,232 40 year mortgage: $1,180,558 50 year mortgage: $1,551,258 You are paying almost double the interest over a 20 year longer loan. ❌ Interest Nearly Doubles Over 50 years, you’ll pay almost twice as much interest as a 30-year borrower. For that extra interest repayments, you could have bought a 2nd property. ❌ Equity Builds Painfully Slow In the first decade, most of your repayments go toward paying off the interest, not principal. That means you own almost nothing after 10 years of paying faithfully. If property prices flatten, you risk being stuck with minimal equity and no leverage. To minimise this pain, ensure you buy properties with real good growth potentials. Do your own due diligence or chat with us, instead of taking the sales and marketing agent's words as the gospel truth. Sales agents work for the seller, not buyer. ❌ Retirement Risk If you start a 50-year loan at 35, you’ll finish at 85. Unless you’re planning to work forever, or pass it on to the kids, and let them take over the repayment, that’s not sustainable. The longer your loan term, the less control you have over your financial future. ❌ Higher Total Cost of Living Insurance, maintenance, and interest creep all compound over time. A long mortgage can quietly drain wealth that could’ve gone into super, shares, or investment properties. Who Might Benefit (and Who Definitely Shouldn’t) A 50-year loan can make sense in limited situations: Investors planning to hold and refinance every few years. High-income professionals with strong cashflow but short-term liquidity issues. Strategic buyers who understand how to use debt as a tool. But for most home buyers, it’s a false sense of affordability . It’s not a “cheap” loan. It is a slow bleed. You're actually paying almost double the interest. Your interest payments are more than the price of the house . Banks and lenders love this. Loan Comparison: $800,000 at 5.5% p.a. Loan Term Monthly Repayment Total Repaid Total Interest Paid 30 years $4,542 /month $1,635,232 $835,232 40 years $4,126 /month $1,980,558 $1,180,558 50 years $3,919 /month $2,351,258 $1,551,258 ⚖️ Summary Term Benefit Drawback 30 years Balanced repayments and equity growth. Higher monthly cost. 40 years Better cashflow flexibility. You pay ~40% more in interest. 50 years Lowest monthly repayment. You pay almost double  the interest. Practical Man’s Take For most people, a 50-year mortgage is the long zig-zag way up the mountain — same height, just slower, riskier, and you burn more fuel (interest). If the only way a property fits your budget is by doubling your total loan repayment, it probably is not the right property for you. At Concierge Buyers Advocates , we guide clients through decisions like these. Devising strategies and identifying the right properties to buy that suit your budget and goals, instead of extending your budget to suit the property (like all sales agents do). We find you the right property strategies that actually build wealth, not just “make repayments work.” Bottom Line A 50-year mortgage reduces your monthly stress, but almost double your lifetime debt, compared to a 30 year mortgage. Use it only as a short-term lever, not a long-term lifestyle. The smarter play? Focus on properties which will grow in value, so you benefit more from the growth. Buy well, buy within means, and negotiate the right price. Need Help Finding the Right Property Strategy? Let’s make your money, and your years, work harder for you. 👉 Book a Strategy Call with Concierge Buyers Advocates today.

To win a property auction in Melbourne in 2025 and 2026: get finance ready, complete contract/building checks, set your price limits, and control with confident, clear bids. There’s no cooling-off at auctions in Victoria, so be 100% prepared. If property passes-in, be prepared and ready to negotiate against a team of senior agents. If bids exceed your budget, be prepared to walk away immediately, to avoid emotional overpaying.  Yes, leave the auction. Do not fall into the trap of "wanting to know where the auction will end". Most bidders got sucked back into the auction to bid more, effectively over-extending their budget. Some bidders believe body language is important, but from experience, that is just a beginners way of staying relevant. Body language does not matter, as our buyers advocates will explain why. We will share their auction winning strategy, expose some auction myths, reveal the latest tricks bidders and agents use at auction campaigns and during auctions and how to counter them. In the Melbourne property market, it is common to see properties being listed for "Auction". Some say it is a "Melbourne thing". With almost every good property listed for "Auction", Melbourne buyers have no choice but to be prepared to bid at these property auctions. So, it begs these questions.. What do you need to know at auctions? How do you bid at auctions? What do you need to prepare before and during auctions? What strategies should you use at auctions? How do you win at the property auction? Based in Melbourne, our buyers advocates attend and bid at over a hundred auctions every year for our buyer clients. On a busy weekend, each agent could be bidding at between 3 to 5 auctions a day. We've seen and studied different strategies being used, all types of games and distractions, tactics used by bidders, agents and auctioneers to spice up the emotions at auctions. Auction techniques and tactics had evolved in recent years and we've seen some rather creative strategies used by the auctioneer, sales agents and bidders during auctions recently. So, we've released this new guide for 2025/2026, to help property buyers beat the competition and grab the property you want at auctions. What is An Auction? An auction is a public sale where a seller offers the property and prospective buyers compete by placing bids, with the highest bidder winning and securing the item at the fall of the auctioneer's hammer. Auctions are facilitated by licenced Auctioneers, and can occur in-person or online and are governed by specific rules and a set date and time. The seller sets a confidential reserve price, and the property is sold to the highest bidder once then bidding reaches the reserve price and the auction declared it " SOLD ". What Do You Need to Know About Auctions? Auctions are emotionally charged, tension filled 20-30 mins that ultimately determines who buys the property. At times, the bids may be slow, with long delays between bids, while at times, the bidding can be fast, in large increments and with split seconds counter-biddings. The pace is usually facilitated by the Auctioneer, and a few strong buyers advocates and seasoned bidders at the auction. It is important to know that, in almost all states in Australia, properties bought at auctions are unconditional.   This is especially true in Melbourne and Victoria. There are no cooling off periods, and there is no walking away, if you win the auction. Bidders should also know it is illegal to disrupt an auction. Your bid at the auction, is legally binding. There is no backing out . How to Win Property Auctions? To win at auction, particularly in the competitive Melbourne property markets, requires a combination of preparation, strategic bidding, emotional control and skills. Key strategies include setting a firm budget, understanding the property's real value, and having a bidding strategy that maximises your chances of winning without overpaying. In this article, we'll show you how to win the property at auctions. Good preparations are critical to winning the key to your dream house at the auction, and here's how you do it: How Do You Prepare for Auctions? Step-by-Step Guide Given the high stakes involved at auctions, how do you prepare for the auction? How should you prepare correctly for the auction, and to prevent yourself from some serious, unintended consequences? While some suggests that you need a lot more preparations, there are only 3 important steps you need to prepare: 1. Do Your Due Diligence Doing your due diligence is critical to preventing yourself from buying a property that doesn't meet your needs. Understand what you want from the property, why you want the property and your plans for the property. Our experienced buyers advocates will help buyers understand the local property market. This will help you understand what other buyers will pay for the property. What due diligence do you need to do before the auction? If you are a home buyer intending to live in the property, questions you need to ask yourself include: Do you like the location? Does it have the right amenities? Does it have the right school, transportation, environment you want? If you are an investor and intend to put the property on the rental market, find out: What rent can the property fetch on the rental market? What are the vacancy rates? How long will it take for you to find a tenant? Is the property in the right location for the types of tenants you want? Does the property meet the minimum rental standards in Victoria? If you are a develo per and intend to develop the property, ask yourself: Will the site give you the returns you're looking for? What types of properties do buyers want to buy in that location? What is the best use of the land to give you the best returns? Does it have the right zoning, overlays, council plans, features? If you are loaded and just want that property , determine: What price will knock out all other bidders? Will the agent accept an 'irresistible offer' before the auction? 2. Know the Real Price of The Property Most buyers wrongly believed the price guide in the Statement Of Information (SOI) provided by the sales agent. While the legal purpose of the SOI is to give buyers an indication of the price for the property, sales agents are increasingly using it as a marketing tool and the price range mentioned in it is usually very different from what bidders will bid at the auction. How to price a property like a professional This is the secret no agents want you to know. With experience and good research, this few steps should be relatively easy: Understand what other buyers are willing to pay for the property. Find out what other properties in the area are sold for. If your research shows a very different price from the price guide (SOI), ask the agent why have they given a very different price in the guide. There could be a gold plated toilet in the house. Or a major termite infestation. Or a history of flood and/or water damage. But don't be surprised if the agent simply give you a standard, vague answers like "that's based on what our sales agent think. We cannot predict what buyers are prepared to pay at the auction"... That is just agent speak for... "do your own homework".. A dead give away that the guide are not to be trusted. A good independent buyer's advocate who knows the area, location, and buyer demographics, etc, will be able to give you an accurate appraisal before you bid. If they cannot, you are no better than buying on your own. At Concierge Buyers Advocates, we combine our understanding of the area with our data analytics, to produce a Real Market Appraisal for all properties we shortlist. With the exception of a few outliers, we have been able to accurately estimate the selling price of the property. If you need help, our guide to determining the value of a property will give you some ideas. 3. Know Your Budget With the preparations done, setting your budget is the next critical homework you need to do. The above helps you understand what the property market say. This next step helps you set your budget. Budget is critical. Always remember, buying at auction is unconditional. You CANNOT  back out, if you win the auction. Make sure you: Know how much you can afford to pay. Know your serviceability. Have sufficient funds for the 10% deposit. Have the appropriate way to pay the required deposit on the day of auction. Always be prepared. Always assume you will win the auction. Our auction bidding service helps you prepare and lets you know what others are likely to pay, and the fair price for the property. With these information, determine what the property is worth to you. Set yourself 2 limits. Limit 1 . The price you are willing to pay for the property. Limit 2 . The   absolute maximum price  you are willing to pay for the property. A good test to know if you've set the right Limit is asking yourself "if you lost the property by $100, will you regret walking away". If these two numbers are less than what you believe other buyers are likely to pay at the auction, maybe this is the wrong property for you. You might not even need to turn up at the auction. You can save yourself some time and focus on the next property in your shortlist. Or you can still attend the auction. You might win it for a good price if there are no other bidders. In a hot sellers' market, this scenario is highly unlikely to happen though. We will tell you why later. A Honest Word of Advice ..:  Intentionally under-bidding, hoping to grab a bargain is just going to waste your own time, the agents' time and everyone else' time. You are reducing your own credibility and creating a bad impression amongst the agents and buyers in the area. Another reason why this won't work is this: All properties at auctions have a reserve price . This reserve price is set at what the vendor and sales agent think is fair price for the property. So, even in the unlikely scenario where you're the only bidder, you will still be expected to pay at least around the reserve price anyway. 4. Stick to your budget. With the above preparations done, you are now ready for the auction. On the day of auction, arrive early. In Melbourne, the listing agent would usually have one final open for inspection just before the auction. Turn up, do one last inspection, check-in with the agent and confirm you will be bidding at the auction. Then revisit your budget numbers. Review your target price, and your walk-away price. Only change them if new, material information emerges (eg, building issues resolved, or there are new damages or concerns. You have one last chance to review and revise, if you need to. Do not adjust for nerves or FOMO . You should not have the need to adjust the numbers if you have prepared sufficiently. Experience tells us, solo/DIY bidders often change the budget at this very last minute, and regret it later. It is ok, if you need to change. But It is NOT  ok if you change because you want to. If you want to change the limit at this very last minute, experience tells us, you will very likely walk away from the auction with regrets: If you win the auction, you will be wondering if you have overpaid. If you lost the auction, you will be blaming yourself for not spending that extra $100. Stay disciplined to your price limits, or have a Melbourne Buyers Advocates shield you from the emotions and stress and bid for you. Auction Day Bidding Tactics Many have also ask what our preferred auction strategies or bidding styles are. Some common theories advocated by some buyers include: Auction Dos and Don'ts 1. Be Confident (and Be Prepared) Auctions are high-pressure. Even seasoned real estate agents would avoid auctions, if they can. Be prepared for the pressure and emotions during the auction. Practice, practice, practice and be comfortable. Bid with a clear, loud voice. If you're naturally soft-spoken, or you are not confident in public speaking, you can get an assisting sales agent to help you. Remember, the assisting agent is working FOR the vendor, AGAINST you, the buyer. Their role is to stir your emotions so you offer your last dollar. Some commonly used techniques include: "Another $1000 will knock the other bidders out", "Put in a $5000 knock-off bid. This should scare the other bidders." "I know them. They are near their limit. Another $3000 will win it." The auction bidding service at our Buyers Advocacy agency shield buyers from these emotions during the auctions and helps our clients win the auction confidently. We make our role known to the auctioneer and prefer assisting agents stay away som, we can follow our strategy, not the pressure. 2. Power Dressing Some believed power dressing helps portray a sense of confidence. Having attended and bidded at hundreds of auctions, Louis Vuitton, Gucci, Lamborghini do nothing to help buyers win auctions. Ultimately, the amateur's body language always give themselves away. We've seen buyers winning auctions in shorts and sandals. If anything, being overdressed helps other bidders identify who the rookie is... 3. Body Language (and Poker Face) Body language is by far more important than anything else. But relying solely on body language can and will mislead you too. Heard of "Poker Face"? A Poker Face can be trained. So can the "Nervous Face". We've seen "Poker Faces", or the "Aggressor Faces" lost at auctions. We will tell you why at the end of this guide. Our buyers agents are trained to study the bidders and auctioneer and we adapt our bids, bidding strategy and body language to the situation. 4. Using Big Bid Increments Some say big bid increments will scare the competition and let you create the sense of deep pockets. It is partially true. But this only work against amateur competitors. Only amateur bidders will think twice about beating your bid. Use this strategy with caution. Used at the wrong time, this bidding strategy will backfire badly. We've seen someone put in winning mega bid increment, knocking out all other bidders. Secretly, we believe he overpaid badly for the property. 5. Using Small Bid Increments Small bid increments is another tactic used by most rookie bidders because they fear overpaying. It is also used by professional bidders to extend the auction. Used correctly, it can expose the stealth bidders, and also creates the impression of a bottomless budget, as the bidder seems to be able to find an extra $100 from thin air. It can be used to scare the amateur bidders. What is the Latest Auction Tactic in 2025 and 2026? Will it work? Last Minute Sniper Bid In recent years, we are seeing a growing number of bidders staying silent through most of the auction and then jump in at the final call, just as the auctioneer reaches “first, second, third…”. The "sniper" bidder's goal is to disrupt momentum, and save "face" if they are priced out early. In a tight Melbourne market, where good homes draw crowds, this tactic lets you observe the room, and conserve energy, provided you are not priced out before you speak. The Benefits of Placing Last Minute Auction Bids: Your "feel good" factor. You keep your price secret, avoid being dragged into an early bidding war, and a well-timed, confident bid can rattle inexperienced bidders. That said, it’s not a safeguard against overpaying . Professional bidders, such as buyers advocates, attend auctions, prepared to win and won’t be spooked. Buyers advocates like us attend hundreds of auctions every year, and this is child's play. The real benefit of this tactic is face-saving . You lose quietly, without revealing you've failed to win the auction. The Risks of Placing Last Minute Auction Bids: Risk of mis-timing is high. No one knows you are going to bid, and no one will prompt you. The hammer can fall before you speak, and if the property is passed in and you weren’t the highest active bidder, you will lose the first right to negotiate. A skilled auctioneer build momentum, encourage competitive bidding, by changing bid increments, or pausing. So there really is no guarantee of a bargain. If you try this, always stand front and centre. Make yourself visible, bid loudly and clearly. And, as usual, do your due diligence beforehand. Will Last Minute Bid Work? No. As above, we had won in many auctions where sniper bids were used. While the last minute nature will surprise amatuer bidders, professional bidders are unfazed by them, and it does nothing to help these "sniper bidders" win the auction. When you encounter sniper bidders, stay calm. They are no different to any other bidders. They have their budget, and you have yours. Stay focus, stay calm and bid. They are just another bidder with "feel-good" tactics. The Truth About Auctions: There is No One "Sure-Win" Strategy After bidding at hundreds (if not thousands) of auctions in Melbourne, one thing is clear: Preparation Wins. Having seen and studied how bidders of all experience levels use their "auction strategies", we can sadly confirm there are no fool-proof or sure-win strategies. As professional auction bidders, we read people. We analyse and profile each bidder, study their bids and we adopt our strategies or combination of strategies to counter them. We use a combination of big increments and small increments, fake a nervous face, etc, to control the auction pace, to test and antagonise other bidders, and, sometimes, to entertain the crowd. Want calm, disciplined execution on the day of auction? Let our Melbourne Buyers Advocates work with you, set the ceiling, run the strategy, and bid for you, so you do not overpay or walk away wondering “what if.” Paying the Deposit at Auctions in Melbourne So, you've won the auction. It is now time to pay the deposit. In Melbourne, the common methods to pay the deposit at auctions are: Bank transfers - A straight forward transfer initiated by the winner, into the real estate agent's trust account. DEFT deduction - A scheduled debit initiated by the real estate agent from your nominated bank account. Cash in Suitcases - Yes, you can still pay with cold hard cash if you prefer. However, this is not something we would recommend for obvious reasons. What if the Property is Passed in at the Auction? Will an auction always end with a winner? No. It does not. If the highest bid during the auction is still less than the reserve price, the auction is unsuccessful. This is called "passed in" at auctions, and the property is unsold. If you are still interested in the property, this article will tell you how to buy properties passed in at auctions . What if Your Finance Fell Through for the Property You Bought at Auction? Your finance can and do fall through for various reasons: The property is in a location or wrong type blacklisted by the bank/lender. You have seriously overpaid. You cannot afford the property When this happens, you are in deep trouble. Because properties bought at auctions are unconditional, you will, unfortunately, be legally required to buy the purchase. The vendor can legally force you to buy it, or they can seek compensation for any loss they may have occurred if you cannot settle. This is why discipline and getting the auction process right is important , to prevent yourself from overpaying. Auctions are Just Games. Here's why. At the end of the day, auctions are just games. Over 90% of the auctions end within our appraised price range of the property. That means, if buyers do not want to overspend, you should do your homework and prepare for auctions. It doesn't matter what auction bidding strategies or styles you use, price, budget and the other competing bidders ARE still the determining factors. Why do Real Estate Agents Prefer Auctions in Melbourne? In Melbourne, Real estate sales agents prefer auctions, as it is easy to sell properties through auctions. Property sold are unconditional, and there's no cooling off period. So, there's no risk that the buyer will walk away after their offer is accepted, and leaving the property unsold. It is a straightforward process for the real estate agents. They just want to sell the property unconditionally once and for all, get their commissions, and move on. No to and fro with the vendors and buyers negotiating prices, etc Do Buyers Agents Prefer to Buy At Auctions? It depends on our assessment of the property and its popularity. Depending on a few factors, there are situations where we prefer auctions, and also situations where we prefer private sale. Winning Auctions in Melbourne FAQ Is there a cooling off period after an auction in Victoria? No; cooling off period does not apply in auctions. Be 100% ready before bidding. How much deposit do I pay at a Melbourne auction? Usually 10%, sometimes negotiable by prior arrangement. What happens if a property is passed in at auction? The highest bidder will have first rights to negotiate with vendor after the auction. Can a buyer’s agent bid for me in Melbourne? Yes; they can strategise, bid and negotiate post-auction. Buyers Should Do Their Homework and Prepare for the Auctions Every buyer must prepare for the auctions. Even if they are not prepared, they are actually prepared to overpay or lose the bid. You only have that one chance to try to buy the dream property, and your offer is unconditional. Having the property inspection and sale contract reviewed is the bare basic. We explain why a building inspection and contract review is critical in this article . Doing the right homework and due diligence with the right data; and having a good understanding of the market, the property and who the potential buyers are will help you either put in your winning bid or walk away satisfied, knowing you have done your best. After all, you probably do not want to beat an over-bidder, at an auction. Need a Professional Auction Bidder for the Auction? If you are attending an upcoming auction, but you feel you do not have the confidence to bid or do not know what you need and how you should prepare for the auction, it might be worthwhile engaging our auction bidding service . Our professional Auction Bidding Service is popular with hands-on property buyers who are either unable to bid or not confident to bid at auctions. We provide auction biddings for up to 3 auctions, helps our clients prepare for the auction, and shields our clients from the pressure and emotions during the auction. Last but not least, good luck with the auction. Get in touch if you want to learn more. More home and investment property buying news and tips here .

TL;DR: A local buyers advocate knows the micro-markets, school zones, overlays, and agent networks that genuinely move price and risk in Melbourne. An interstate or non-local adviser can’t reliably read these nuances, often defaulting to generic cookie-cutter advice that costs you time, money, and capital growth. If you want the right property at the right price, go local. The Role of a Local Buyers Advocate in a Booming City like Melbourne A genuine buyers advocate represents the buyer only, NEVER the seller. They build your brief, provide inputs from the local perspective, create a data-driven suburb shortlist, and deliver realistic price appraisals using true comparables. They coordinate due diligence, contract review, planning overlays (heritage, flood, bushfire), owners corporation health, and building & pest inspections . They manage strategy, from pre-auction offers through to auction bidding and post-auction negotiation. Their local agent relationships unlock pre-market and off-market opportunities you won’t find on portals. How Do Local Buyers Advocates Add the Most Value to the Property Buying Process? By providing the local knowledge necessary to prevent overpaying , cutting weeks of wasted inspections, and reducing risk on hidden issues that derail settlements. For investors, local buyers advocates target A-grade assets with stronger capital growth and rental demand. For first-home buyers, they provide clear ceilings, clean terms, and stress-free execution. A trusted, independent, fixed-fee Melbourne buyers advocate turns complexity into certainty, so you buy once and buy well. When you use a local buyer's advocate, you get access to the network of local specialists and strings they can pull to get your deal across the line or to walk away from a dodgy property deal unscathed. This is the value local buyers' advocates bring. The Case for a Local Buyers Agent (in Plain English) How can a loca buyers agent benefit local, inter-states and international buyers? 1) Micro-Markets Change from Street to Street Melbourne isn’t one market; it’s hundreds. Within the same suburb, two streets can have different school zones, overlays, noise exposure, and buyer demand. A local buyers advocate knows: Which pockets are A-grade (owner-occupier demand, low vacancy) vs B/C-grade School zone boundaries and how they shift value Orientation & streetscape premiums (sun, parking, street noise, trees) Future disruptions (council works, rezoning, nearby developments) Why it matters: Pricing accurately and avoiding problem streets can mean the difference between paying fair value and overpaying by tens of thousands. 2) Precise Property Appraisal. No Guesswork Price guides are marketing. Locals triangulate true comparables (same land, condition, pocket, timing) and make micro-adjustments for things only a local sees (tram rumble, flight paths, flood pockets, cut-through traffic, overshadowing). Local buyers agent = Realistic price workups Interstate adviser = Broad averages that miss street-level value Result: You set a realistic ceiling and don’t get walked up at auction. 3) Due Diligence Local Experience That Actually Protects You Local experience in the location allows buyers to tap into the unmentioned, undocumented nuances of the area, allowing buyers to get a more complete due diligence, eg,   planning overlays  and local concerns, on the property they are buying: Location history, desired and undesired location Heritage overlays, flood/bushfire overlays, various water overlays, easements, car-parking overlays Unapproved works and council histories Strata/OC health for apartments (levies, sinking fund, cladding risk) A local buyers advocate knows the local specialists to call, how to interpret red flags , and when to walk away before you sink money into unnecessary reports. 4) Purchase Strategies Tailored to the Local Market Let's face it. No 2 agents and agencies are the same. Agents and agencies in each location have their own preferred sales protocols. Only a local buyers advocate would have the experience to develop strategies specifically tailored to the local agencies and market conditions. They strategise and advise buyers on the best approach to buy, the best offer proposal for the property, which neighborhoods are in demand, which agents are trustworthy and which are full of themselves, and where to find the best value, often six months before they show up in datasets. In contrast, interstate buyers agents may apply a one-size-fits-all approach that doesn’t account for local nuances. 5) Auction Culture is Different in Melbourne Auctions dominate many suburbs. A local buyers agent understands auctioneers, increments, tempo control, and passed-in negotiations. They also know which agents routinely underquote and how to manage the agents during pre-auction vs auction-day vs post-auction tactics. Bottom line: Local Buyers Agents gives you the best buying outcome. You avoid panic bidding and buy with discipline , and avoid overpaying. 6) True Off-market Access Comes From Long Relationships Let's put it this way. A "off-market" property that is distributed to everyone is as good as a listed property. Everyone knows about it. The best opportunities rarely hit portals and are seldom openly pimped. Locals buyers agents leverage their local agent networks to find off-market and pre-market deals, reducing competition and sometimes price. Interstate advisers can’t replicate sustained, face-to-face relationships across Melbourne’s agent community. That’s the edge you want from local buyers agents working for you. The Risks of Using an Interstate / Non-Local Buyers Agent Now let's look at how buyers advocates often fail when they are not local to where you are buying: Delayed Information: While suburb data might be available, they are usually 6-12 months late . You will be relying on outdated data, while local buyers advocates had already taken their first dip up to ONE year earlier . This article explains why data is always late, and there is no such thing as a live real estate data. Those who proclaim they have, have absolutely no idea about data management. Cookie-cutter suburb picks based on outdated, generic stats, not street-level demand. Countless times, we see interstates buy the best property on the worst street full of commission housing. That’s not a bargain. That IS paying a premium . Wrong stock type: Different types of properties perform differently in different locations. House-and-land on the fringe, high-rise with cladding/levy risk, or poor-quality townhouses. Which should you NOT buy? Wrong school zones: An interstate buyers agent promised you a house in Glen Waverley for $500k less? Definitely possible. But they will be buying you a property that is outside the premium school zone. Yes, properties in premium school zones in Glen Waverley are worth about $500k (half million dollars) more. Missed overlays/hazards: Melbourne councils are famous for seemingly random zoning, overlays, and covenants. Buy the wrong one, and you could eventually be sleeping next to a highway, literally. Weak local agent rapport: Fewer off-market calls and less negotiation leverage. Even if they’re well-meaning, distance makes it hard to protect you from local pitfalls. Cost vs Value: Why a Local Buyers Advocate Pays for Itself Local buyers advocate fees often return multiples in: Avoided overpaying (correct ceilings and walk-away rules) Personal on-site inspection → nothing beats a first-hand inspection of the property by the property expert Genuine off market property deals Better assets (A-grade over B/C-grade) → stronger capital growth Time saved (targeted inspections, fast due diligence) Risk avoided (bad OC’s, overlays, defects, over-quoted renos) Off-market access that would otherwise never reach you Buying the wrong asset is the most expensive mistake in property. A local property expert keeps you out of trouble . Real-World Examples (How Local Nuance Changes Outcomes) Not fully convinced yet? Here are some shocking examples of how local buyers advocates ace over interstate buyers advocates: Same suburb, two different results: One street is in a coveted school zone with quiet, tree-lined appeal; the next street is a cut-through with weekend traffic and a future townhouse build next door. Prices diverge by 20-40% , and the locals know why. Let’s take a look at Glen Waverley, known for its excellent infrastructure and government school. An interstate buyers advocate might hook you with a "Buy Glen Waverley for half a million dollars less" tagline. The reason? They are buying in a non-school zone for you. “Great value” apartment? Only certain types of apartments in certain pockets of Melbourne are good buys. Buy anywhere else, and you might say goodbye to your hard-earned money. Even in good areas, consider the impact of the Owners Corporation. “Renovator’s delight”? Maybe. Or maybe it’s flood-affected with a reactive clay soil rating that turns your renovation into a cost blowout. Photos won't show it. Only an on-site inspection by a property expert will raise the alarm bells early. More likely than not, the potential is already priced in. Without real local knowledge, interstate buyers advocates are no wiser than you. How to Choose the Right Local Buyers Agent Choosing a good Local Buyers Agent can be easy with this 7-point checklist: Licensed in Victoria ; professional memberships (e.g., REIV). No developer kickbacks (local, independent buyers advocate only). Recent purchases in your target suburbs (ask for addresses and price bands). Sample appraisal: Will they show their comps and adjustments? Auction track record: Bids, pass-in negotiations, post-auction wins. Due diligence workflow: Section 32, overlays, OC checks, building & pest. Transparent fees: Fixed fee options vs %; scope and inclusions in writing. Quick FAQ Is a local buyers advocate worth it? Yes, if you want real local knowledge, accurate pricing, off-market access, and risk management specific to Melbourne’s micro-markets. Can an interstate buyers agent do a good job? They can help with strategy, but without on-the-ground knowledge and relationships, they often miss street-level nuances that move price and risk. The information they rely on is at least 6-12 months late. What if I’m relocating to Melbourne? A local buyers agent can shortlist suburbs that fit your lifestyle, run on-site inspections, auction bid, and manage settlement with trusted local solicitors for you. So you don’t overpay while learning a new city. Do locals only buy in blue-chip areas? No. A good local buyers advocate sources value in emerging pockets too, provided fundamentals (amenities, transport, demand) stack up. The Bottom Line If you want to outperform the market , the “secret” isn’t a spreadsheet; it’s local knowledge + process . A local buyers advocate blends street-level insight, evidence-based pricing, rigorous due diligence, and strong agent networks to secure the right property at the right price , often before the crowd sees it. Ready to buy smarter? Speak with a Melbourne buyers advocate who knows your target streets and can open doors to off-market opportunities. Buy once. Buy well.

This is not really new, but increasingly there is a dangerous lazy habit creeping into Melbourne’s property investment scene — crowdsourcing . "Where Are The Best Suburbs to Invest In?" It is common to see "investors" flocking to Reddit threads, Facebook groups, and Telegram chats, hoping strangers will tell them where to buy next. They prefer to call it “collective wisdom.” But, let’s be honest. It’s mostly collective confusion . Crowdsourcing is the comfort food of bad (and lazy) investors. It feels smart because you think you are “researching,” but in reality, it’s just outsourcing your thinking to people who often have no clue. Blind Leading the Blind Yes, that's right. It is just outsourcing to people who often have no clue. They have no clue what you are looking for, no clue what your goals are, no clue of your risk appetite, etc. They basically have no clue about you. What are the risks of CrowdSourcing Investment Ideas? 1. The Herd Mentality: Where Smart Money Goes to Die When everyone’s talking up the same suburb, say, “Sunshine’s the next Brighton”, the party’s already over. They have already bought! And by the time a suburb trends on social media, enough people would have bought in them, driving prices up and yields would have thinned. How much further will it go, is the real question? Try asking that, and no one really have a clue. There is no crystal balls into the future, and anyone who said they have 20% more to grow is simply pulling numbers out from their bums. Are you the going to be the fool who bought at the peak? Remember WA just a few months ago? It was hot. But We've been saying prices have peaked. It has. Where is it heading next? Crowds don’t predict booms — they arrive late and push each other into overpaying. That’s not strategy. That’s sheep behaviour with spreadsheets. 2. Opinions Masquerading as Data Crowdsourced insights rarely come with evidence. You’ll see claims like “rents are up 20% in Glen Waverley”. Often, it is based on one listing, one story, one friend. That's the spruikers' favourite "case study". No methodology. No context. No clue. Real data requires verification, not upvotes. 3. Echo Chambers and Bias Loops Investor groups quickly turn into echo chambers. One person says “Melton’s undervalued,” and fifty others agree because they want it to be true. No one asks, “What’s the vacancy rate?” or “Why?” Crowds reinforce feelings, not facts. 4. Spruikers in Disguise Many online “investors” are just marketers with fake profiles, pushing off-the-plan stock or development projects. They pose as friendly helpers, drop “hot tips,” and subtly sell you their agenda. When you follow the crowd, you’re not investing. You’re being sold to. 5. Relying Solely on Date? It is Outdated Intelligence. You need to be on site , on the ground to gauge buyer sentiments BEFORE the data reflects buyer sentiments. By the time the data agrees a suburb is booming, the data’s stale. It is already 6-12 too late, as it takes data between 6-12 months to show any readable trend. Our Data Scientist and Principal Buyers Advocates Rayson, explains why in this article . Crowds react months behind the professionals. It’s like buying stocks after they’ve doubled. Exciting, but dumb. 6. No Local Knowledge Most online advice ignores local nuances: Overlays, school zones, dwelling covenants, bush fire and flood zones, etc. All invisible to the untrained eye. Crowdsourcing doesn’t account for why some streets grow and others stall. They claim "Glen Waverley is great!" but have no idea where the good pockets are, and why are they great! You end up buying “the next big thing” … next to a waste facility or a cemetary. 7. Misinterpreted Data Even when people quote statistics, they often get them wrong. Or worse, they mislead you with irrelevant or misinformed data. Data never lies. It's the narratives that are often manipulated to fit their agenda. Median price ≠ capital growth. A new café ≠ gentrification. Crowds love patterns that don’t exist. You need a combination of Macro and Micro statistics to understand the area. 8. Anecdotes = Entertainment, Not Evidence Everyone online has a success story. “My mate doubled his money in Frankston!” Sure. For every one of him, there are fifty who didn’t. Anecdotes are marketers' quote, not research. 9. Wrong Crowd, Wrong Goals Investor forums are filled with people chasing fast cash flow, renovation flips, or crypto-style gains. Let's put it this way. If they believe a location still have significant growth potential, why aren't they buying? If they are, why are they recommending it, thereby creating buying competition for themselves? When they are done buying, it's time to sit back and watch it grow. That is the time to hype the location. Generate enough "demand" to drive up prices, before they sell it to the next lazy investor who will buy from them at the peak. Got it? If you’re after long-term stability or family-grade growth, their advice doesn’t fit your playbook. They’re not wrong — just irrelevant to you. 10. Too Many Voices, Not Enough Action The more you ask, and the more you scroll for information, the less you act. Every real investors have their own little agenda. Investors will always try to generate enough hype in the location they had invested in. Watch the hype build, watch prices grow, then sell and take profit. Crowdsourcing never ends well. You will end up chasing 20 different towns and suburbs, each with different characteristics, demand-supply dynamics, socio-economic statuses, good/bad pockets, etc. You think you analyse them all? Watch Analysis Paralysis kicks in. Too many “maybes,” too many "this is good", too many "trust me". There are too many moving parts to consider, and you only have ONE try. You waste months comparing notes while smart diligent investors quietly move on to the next upcoming hot spot to buy the good stock. This is what happens when you crowdsource. 11. Emotional Whiplash Crowd sentiment changes daily. In fact, it change from person to person, and forum to forum. One week it’s “boom times,” next week it’s “the crash is coming.” If your confidence swings with the comments section, you’ll never buy anything worthwhile. Here’s the Truth A wise man once said: “Everyone pays for their lessons. Some pay to avoid issues. Some pay through errors." Crowdsourcing is how lazy, clueless investors try to skip the tuition, and they will end up paying the hard way, through mistakes, bad suburbs, or poor timing. If you’re serious about building wealth, stop chasing free advice from people who can’t even value their own opinion. Do you own research, or get some professional advice. The Smarter Way Forward You really only have got two good options to avoid paying through mistakes: Get Educated. Learn how to find the data, interpret it, read planning maps, and assess value like a professional. If you want to DIY it, do it properly. Take a course, subscribe to reputable data providers, and cross-verify everything. Slice and dice your data until you get a verified answer. Get Help. Hire an experienced Melbourne buyers advocate . Someone who knows the location and analyses suburb data daily, filters the noise, and protects you from overpaying. At Concierge Buyers Advocates , we use data, not gossip, not crowdsourcing. We read the fine print and talk to people who actually know what’s happening on the ground. We buy in areas before they boom. Before they are mentioned in social media and forums. Crowds guess. Professionals confirm. One builds wealth; the other builds regret. Final Word Crowdsourcing isn’t research. It is laziness and cluelessness dressed up as strategy. If you want to win in Melbourne’s property market, stop asking the crowd what to buy. Learn the game or hire someone who already knows it. Because every investor pays for their education. The smart ones just pay once.