Late bids gazumped

The Victorian State Government has now amended the law to prevent bids after the fall of the hammer at an auction being accepted.

The new rules which came into effect on Monday 30th June are aimed at preventing successful bidders from being gazumped by a late bid. The change comes after campaigning by the REIV following a number of instances in the last few years.

The new rules must be displayed at the auction at least 30 minutes before the auction begins. In addition to displaying the rules, before the auctioneer calls for bid he or she must announce to bidders that the rules of the auction prohibit the auctioneer from accepting bids or offers after the property has been knocked down to the highest bidder.

The person who is the highest bidder will then have the right, assuming they have reached the vendors reserve, of going inside to pay a deposit and sign the contract of sale. They will be able to do this safe in the knowledge that no other bids can be made on the property.

The decision will improve the transparency of the auction process and will ensure that all agents comply with a rule that has been in place for REIV members for a number of years. For that reason the REIV supports the State Government's decision to amend the laws and will continue to work with the government to bring more efficiency to property transactions and help educate the community about these changes.

Only 1 in 100 rental homes vacant in Melbourne in May

REIV President Neil Laws has said that the REIV May rental vacancy rates for Melbourne indicate that only 1 in every 100 rental homes is vacant.

"The general rule of thumb is that the market is in balance when the vacancy rate is around 3 per cent and the last time the market was in balance was three years ago in January 2005 when Melbourne had a 3.3 per cent vacancy rate.

"A balanced rental market is one when people can generally find a home to rent and landlords get a reasonable rate of return on their investment.

"An unbalanced market is what we have now, queues for rental homes and significant rent increases.

"There is only one way that the market will come back into balance - more rental homes where people want to live and there is no sign of that happening any time soon.

"In Melbourne the inner city remains the area with the most significant shortage with a vacancy rate of 0.6 per cent which is quiet a contrast to four years ago when the inner city vacancy rate was 6.2 per cent," Mr Laws concluded.

May Apr May May May
2008 2008 2007 2006 2005
MELBOURNE Inner (0 - 4 km) 0.6 0.3 1.0 1.0 2.6
Inner (4 - 10 km) 1.0 1.6 1.0 1.4 2.3
Inner Total 0.8 0.9 1.0 1.3 2.4
Middle 0.9 1.0 1.5 1.8 2.6
Outer 1.2 1.1 1.6 2.0 2.5
MELBOURNE TOTAL 1.0 1.0 1.4 1.7 2.5
VICTORIA TOTAL 1.4 1.2 1.7 1.9 2.5
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Published on July 7-th, 2008 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.

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