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As more Australians reach retirement age many are considering retirement village living. Buying into a retirement village requires specialized advice, there is much to consider before making such an important life changing decision. Many of these considerations are different compared to buying a residential property. In recent times many people have signed retirement living contracts…

When selling a property choosing the correct method of sale is crucial to a successful outcome. There are many different methods that can be used. Auction, private sale, tender and expressions of interest are the most popular amongst selling agents in Victoria. The state of the market, the property’s location and attributes, likely level of…

The launch of Yarraville’s new housing development is a good time to revisit the challenges faced by buyers when considering off the plan properties. Known as Bradmill Yarraville the former textile manufacturing plant is currently being redeveloped into a large-scale project that in its first stage over 1,400 dwellings will be built. Both townhouses and…

As the saying goes “by failing to prepare, you are preparing to fail.” Before starting your property search there are many tasks to carry out. Putting in the necessary preparation will give buyers a higher probability of a successful outcome. It pays to engage my services early in the buying process as I will guide…

The Victorian Homebuyer Fund (HBF) is an initiative by the Victorian government to financially assist eligible home buyers enter the property market. According to the banks that are administering the scheme it is proving to be extremely popular. On first impressions the scheme appears to be generous as the government provides an interest free loan…

The state government commissioned a review into the Victorian property industry. All stakeholders  were invited to participate by making recommendations as to ways of making the property industry better and fairer for everyone. I provided a submission, below are my 12 recommendations. 1. The regulators of the real estate industry in Victoria are Consumer Affairs…

All homes have areas that require maintenance due to normal wear and tear. Even brand new homes have minor defects on completion. Obtaining a pre-purchase building report will identify these maintenance items and defects.If identified early these types of works are not expensive to rectify.  The following are my top ten common maintenance issues found…

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…

If you are a member of an owner’s corporation there is a good chance you are paying too much for repairs and maintenance. Being a member of an owner’s corporation I have had to perform the role of project manager to avoid this scenario. Building repair and maintenance quotes that have been provided by the…

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…

I would like to take this opportunity to thank my small but loyal following of clients. I provide independent, unbiased property advice, your support has allowed me to continue to assist a wide range of people who otherwise would have made inferior property decisions. Quality property advice means you buy the best fit property at…

It certainly doesn’t pay to be over confident when it comes to the Melbourne property market. In a short period of time market conditions can change dramatically. It was November last year when I left a message with a real estate agent requesting an inspection of a property. The agent in question didn’t return my…

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…

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…

For many people buying a home can be a highly emotional experience. Invariably it is the largest financial outlay a person will make.There are not only financial consequences, decisions are being made about the very essence of a person’s lifestyle; where to live and all the implications of that choice. Feelings of doubt, fear and…

Your Buyers Advocate Newsletter To ensure success tenants should treat a rental application the same way they would a job interview.The first important step is to make sure your application is complete. The following is a list of important information that should be included; Reference letters- from past landlords and employers.This will establish your employment…

Your Buyers Advocate Newsletter Every property investor needs a good handyperson, plumber and electrician. Having these three contacts will not only help take the stress out of being a property investor it will also save substantial amounts of money. Consistent high quality workmanship, reliability and a competitive price are rare with tradespeople provided by a property…

Marketing photos taken with wide angle lenses combined with undersized and strategically placed display furniture to make rooms appear larger. Artificial lighting to make rooms appear brighter. Newly painted walls and architraves to hide what could be rising damp. Sensual aromas from plug in diffusers greeting you at the entrance. Welcome to the world of…

Releasing a deposit to the seller prior to settlement is always risky. If a deposit is released prior to settlement the purchaser is deemed to have accepted title. On signing of the contracts many selling agents will attempt to get the buyer to sign what is known as a Section 27 release of deposit statement.…

Your Buyers Advocate Newsletter It has been reported that over two million Australians own residential investment property. The quality of many people’s retirement is tied to having made an astute property selection.It is therefore important that powerful media outlets provide accurate and balanced commentary on the property industry. The popular Australian television show known as…

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…

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…

Buying rural property throws up a unique set of circumstances for property buyers. People that have never purchased a property in a rural area would be well advised to seek independent advice before taking the plunge. Over the last few years I have assisted several buyers purchase rural property. I am confident I can add…

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…

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…

Real estate is a very egalitarian investment option. It doesn’t matter how many university degrees you have, where you went to school, who you know or where you come from. You don’t even have to laugh at the bosses jokes. Provided you make the optimum selection your investment property will keep appreciating at a fast…

Apartments and villa units are becoming the investment of choice for many Melburnians. With house prices going through the roof these types of properties provide an affordable alternative. Provided the optimum selection is made they will produce exceptional capital growth. As a result more and more Melburnians are becoming members of an owners corporation. Having…

Making a sub-standard investment property selection has a series of negative implications for investors. A poor decision isn’t easily rectified as divesting out of property incurs substantial costs. Also, the time frame between placing a property on the market and receiving the proceeds of the sale is lengthy compared with other asset classes. The optimum…

It is important that property buyers are aware of any infrastructure projects or any other type of change of use planned in the vicinity of their proposed purchase. Construction of tunnels, bridges, car parks and the like can have a detrimental impact on property prices. These types of works invariably result in undesirable outcomes such…

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…

  Not influenced or controlled by others in matters of opinion, conduct, etc; thinking or acting. This is the dictionary definition of independent. Many organizations in the real estate industry make false claims about being independent. Even the bastion of the “Independent. Always” The Age newspaper can at best in reality be independent sometimes. When…

Some property owners are unwittingly breaking the law when undertaking home improvements. In Victoria building regulations state that if total works are greater than $16,000 there must either be a major domestic building contract in place between the property owner and a registered builder or the building owner must register as an owner builder. If…

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…

After liaising with tradesmen for more than 30 years in various roles – in both the real estate and building industries – I feel I know what makes this type of beast tick. Generally speaking, I have always enjoyed talking to tradesmen because of their laid-back and unpretentious nature. However, I must say – being…

I received a call from a client asking me to evaluate and negotiate a block of land in country Victoria. It seemed a straightforward enough assignment. My client’s end goal was to build a home on the property. The owner was selling the land directly so I organised a chat over a cup of coffee.…

The Melbourne property market has continued on its merry way in 2015, but there have been signs over the past few months that the upward price acceleration is starting to slow. This is a welcome trend as any further upward movement would be unsustainable. The housing market experienced a strong June 2015 quarter, with the…

After pounding the pavement for six months you finally lock eyes on “the one”. It was love at first sight; beautiful with ornate detail, well-maintained with a nicely formed facade, an art deco gem. You expressed your interest to the selling agent and asked to be kept informed of all offers. He looked you in…

A standard real estate contract of sale allows the buyer to inspect a property within seven days of settlement. The general condition states that the vendor must deliver the property to the purchaser at settlement in the same condition as the day of sale, except for fair wear and tear. It is important all property…

  You have saved hard and made many sacrifices over many years. At last you have been given approval from your financier to take the plunge into purchasing your first investment property; now for the exciting part, finding that perfect property. You have been reading the real estate sections of the daily newspapers and have…

What impact does exchange rate movements have on property prices? Exchange rate movements mainly affect demand for Australian real estate from foreign investors and expatriates. Australia is seen as a preferred destination for overseas property investors. The opportunity to own a freehold title as against a leasehold title, a relatively fair and transparent business environment…

   Apartments have become the preferred investment choice for many astute investors over the last few years. This is because the price of a house in a quality street and location has skyrocketed and therefore has put it out of reach of the average investor. Apartment blocks that produce the optimum capital growth were mainly…

Licensed plumbing and electrical practitioners self-certify their work by issuing consumers with compliance certificates. Issuing a compliance certificate means the practitioner certifies that their work complies with all relevant regulatory requirements. Only licensed plumbing and electrical practitioners may issue compliance certificates. A licensed plumbing practitioner must issue a compliance certificate for all plumbing work that…

The term commercial property has three broad sub-categories; industrial, retail and office property. Successfully investing in commercial property requires a totally different set of selection criteria compared to residential property. Compared to residential property commercial property offers investors a higher yield. Currently yields on commercial property are between 6% and 10% of initial capital outlay…

I have always been amazed at the number of times building and renovating projects end in dispute between the builder and the property owner. In recent times I have met several owners who have suffered this fate. Most people are not aware of the complicated process involved in building works. For this reason I am…

The concept of the “hot suburb” is false and flawed. This gives buyers the impression that purchasing in these suburbs automatically results in exceptional capital growth. In reality nothing could be further from the truth. Investors should not get confused between a growth suburb and a suburb that will produce the optimum capital growth. A…

Before purchasing a property it is important to make sure that previous owners have obtained appropriate permits for any additions or improvements. I recently inspected a property in Melbourne’s outer western suburbs that had what appeared to be a recently constructed extension to the rear of the property. The addition was not well designed as…

The practice of selling agents deliberately and substantially underquoting the likely selling price of an auction property will never be eradicated. This strategy has been implemented for the purpose of attracting buyers to inspect a property and potentially become involved in the bidding process. In essence it is based on deception similar to bait advertising.…

Carbon monoxide poisoning from faulty gas appliances has killed nine Victorians in the past decade. The main causes of these deaths have been faulty or badly maintained gas heaters. It has become known as the silent killer, as carbon monoxide gas can’t be seen and does not have a smell. Energy Safe Victoria (ESV) is…

State and local governments have introduced a greater number of controls on the use of land over the past five years. Also, more land is now subject to overlays than ever before. Overlays are a restriction on the use of land in a designated area. In many cases, if a property is affected by an…

“I’m singing in the rain, just singing in the rain, what a glorious feeling I’m happy again” This is what every property buyer should be singing if they are lucky enough to be inspecting a property while it is raining. Over 80% of domestic building faults are related to water. Hence when it is raining…

The idea that one real estate agent would oversee another real estate agent in the sale of a property seems absurd. Yet it happens: it’s called vendor advocacy. Vendor advocacy is a service whereby a real estate agent who calls himself a vendor’s advocate will appoint another real estate agent to sell a property. The…

Residential property investors should be extremely wary if contemplating buying real estate using a self managed superannuation fund structure (SMSF). This structure which has created a lot of media attention lately may prove to be a fad that burns many a property investor. At the time of writing more than 400,000 investors are running their…

The changes to the rules governing foreign investment in residential property announced by the assistant treasurer in April of this year have done nothing to benefit the Australian economy or struggling first home buyers desperate to enter the market. One of the more significant changes is that all temporary residents seeking to purchase existing property…

The standard Real Estate Institute of Victoria building defects clause that is used by real estate agents has proven to be ineffective by a recent decision of the Victorian Supreme Court. The clause states that a buyer can only avoid a contract of sale if a “major structural defect” is found. I have never agreed…

When buying off the plan the most important documents in the transaction are the plans and specifications. In this situation the purchaser is essentially buying two elements, the land and the plans/specification document. Unfortunately many buyers are not aware of the importance of getting these documents absolutely right. In the construction of a dwelling there…

Tragically at least 15 Australian children have died in incidents related to curtain and blind cords since the early 1990s. Most recently, two Victorian infants died after being strangled by cords in August and September 2009. The cases described below occurred in Australia before 2009. Case 1 While a mother was hanging out washing, her…

Most financial institutions place restrictions on lending in relation to genuine 1 bedroom apartments based on internal floor area. This policy is ridiculous and archaic. The fact that these financial institutions place such a high emphasis on floor area only demonstrates that they do not understand the fundamentals of real estate, an amazing reality given…

I have always prided myself on being extremely discerning when selecting an investment property for my clients. The property has to meet strict criteria before I would recommend a purchase. The difference in capital growth between a good choice and the optimum choice can be hundreds of thousands of dollars in the medium to long term. There have been four…

One of the most common causes of building faults in residential buildings is incorrect or inadequate waterproofing and surface drainage. It is always a bonus if it is raining during a property inspection. In this situation you are able to observe exactly where the water is flowing. Is the water running away from the building?…

Recently there have been a number of changes made to the regulations governing foreign investment in Australia. I have outlined a few of the more significant changes. A more comprehensive explanation of the recent changes is outlined on the Foreign Investment Review Board website. Temporary residents are no longer required to notify proposed acquisitions of…

In September 2008 changes were made to the form of contract of sale of land used in Victoria. The old contract note has disappeared, having been replaced by a new universal form which has been designed to be used in all situations. This article explores some key changes for purchasers of real estate in Victoria.…

I always get a little concerned when property buyers start talking about buying a bargain. More often than not their interpretation of a bargain is flawed. What they have purchased or are going to purchase is a cheap property that will not perform very well from a capital growth perspective. Often so called bargains can…

The question of whether an item is a chattel or fixture has caused many disputes between vendors and purchasers. This issue arose during post auction negotiations on behalf of one of our clients. The property had passed in and after a protracted negotiation a price had been agreed. We proceeded to sign the contracts when…

As predicted in previous issues the Melbourne property market has experienced a correction of between 0 and 10 per cent over the past twelve months. The beginning of the slowdown can be traced back to the second week in November of 2003 where there was a noticeable reduction in activity levels. We believe that this…

Property investors are entitled to claim a number of tax deductions in relation to their rental properties. What follows is a checklist of the most common allowable deductions with respect to deriving rental income from tenanted properties. Advertising costs for tenants; Non-capital repairs and regular maintenance costs (as opposed to improvements which are capital in…

The 10 Golden Rules Apply If your family or friends have used a builder they’ve been happy with, ask for details about the builder they used; See if the builder is registered with the Building Practitioners Board (visit www.buildingcommission.com.au). Domestic builders doing work worth more than $5000 must be registered; Check the builder ’s projects over…

When it comes to adding new life to your home, there are many Feng Shui principles you can easily apply to invigorate the spaces you live in. Just breathe – Open doors and windows for a little while each day to replenish and invigorate the life force of your home. Bedroom bliss – make sure that the…

Finding Balance When it comes to your number one “investment”, there are various strategies you can implement to increase the material and emotional value of your home. Kerry Tabor of Spirit of Design says many people are using her Feng Shui advice to enhance not only the chances of sale, but also to legit payday…