Market snapshot – January 2020

The Victorian property market has experienced low levels of overall house and unit transactions over the last 12 months. As at December 2019 there were approximately 108,148 transactions compared to 131,622 during the same period in 2017. This low level of supply has further segmented the Melbourne market i.e. properties that are situated in quality…

Buying brand new – beware!

Before purchasing a brand new property, buyers should always research what materials, products, fixtures and fittings have been used during construction. It is not enough to rely on the building drawings or even the specification document. A case in point is the cladding fiasco that has cast a shadow over the Victorian building industry. After…

Capital Growth Performance

The following are examples of capital growth performance of properties I have selected for clients. All properties are situated in inner Melbourne suburbs; Date of Purchase Buying Price Date Sold Selling Price Time Held Gross Profit Property 1 12-5-2006 $347,000 22-3-2014 $565,000 7 years 10 months $218,000 Property 2 9-3-2007 $435,000 14-11-2009 $593,000 2 years…

Attributes of a quality asset

Blue chip residential investment real estate has all the attributes of what a quality asset should have. The primary attribute is that it must double in value within a relatively short period of time.This overrides all other important ingredients.The optimum residential property selection will double in value approximately every ten years. Secondly, a quality investment…

Home maintenance

Preventative home maintenance will save property owners many thousands of dollars. Spending a little on a regular basis is more cost effective than making substantial outlays due to having to replace entire building components because of neglect. Not only will regular maintenance save money it will result in a safer home environment. Every home owner should keep…

The pre-purchase building inspection

A pre-purchase building and pest inspection is essential for all property purchases. I am astounded that many buyers do not obtain a report. With the Melbourne median house price at around $820,000 a report costing just hundreds of dollars should be considered essential. Over the years I have had some clients grumble about the amount…

Rising damp

Buyers of brick or masonry homes should pay particular attention to the serious building defect known as rising damp. Through capillary action, moisture can make its way up a brick wall from the ground. A breakdown in the waterproofing barrier or garden beds being constructed above an existing damp proof course can result in rising…

Capital growth is king

When it comes to residential property investment capital growth is king. Exceptional capital growth as against rental return will put an investor hundreds of thousands of dollars in front in the medium to long term. Furthermore exceptional capital growth allows an investor to accumulate equity. This makes it possible to purchase additional assets. In my…

New underquoting rules

New legislation aimed at curbing underquoting is due to be passed later this year. Unfortunately the new laws are essentially a duplication of the current law. Currently the law says that an estimated selling range must be stated on the authority between the selling agent and vendor. The selling agent cannot advertise an estimated selling…