Show me the permit!

Before signing on the dotted line buyers should make sure the property owner has obtained all the required building permits for works that have been completed. The new owner becomes responsible for any illegal works, this could mean costly rectification. If the vendor has undertaken works on the property as an owner builder that were…

Market snapshot – August 2021

After several years of subdued activity the Melbourne property market has experienced price increases this year. The upward movement in price became evident last February as auctions began. It was inevitable that prices would rise as historically the Melbourne property market rarely remains stagnant for more than two years.  Early auction results in 2020 indicated…

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…

Editorial

The buyer advocacy profession is desperately in need of a regulatory framework. It is up to the Real Estate Institute of Victoria and the Estate Agents Council to initiate change.If past performance is anything to go by, positive initiatives are unlikely to occur. The service of buyer advocacy started in Australia about 25 years ago.…

Ban the bribe

Donations to political parties by property developers should be banned. Successive Victorian governments have caved in to the powerful and affluent interests of those property developers that have lined their pockets through donations. I have always considered Melbourne one of the great cities of the world: sophisticated and consisting predominately of a combination of low-rise…

The building report

The building report

There are several different types of building reports available to property buyers. It is important that buyers commission the report that best fits the type of property they are considering. The most common report requested by residential buyers is the pre-purchase building and pest inspection report. This report is useful when buying an established class…

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…

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…