33 James Street Surrey Hills is a property that may not immedidately impress you -  in fact, you might walk straight in and then straight out.  But give this one a chance: it does have a lot going for it and it would suit a young family very well.

Big pluses here are that it is located in a quiet street wthat is within walking distance to the Union Road shops and Chatham Primary School. While the backyard is not overly big, you do have Grovedale Park across the road, with plenty of room to kick the footy or fly a kite. The house itself is quite good, with original 1920s facade,  double carport, private backyard and the arrangement of rooms is not too bad.

The front appearance of this house understates this property and a high fence, large trees and an abundance of brick paving does not help. A new picket fence, some careful landscaping and a cosmetic update to the facade would do wonders here.

The concept design would address the rear of the house to incorporate a larger rear open living area. At present, this does not work well and the rear studio is not all that well sited, taking up too much of the backyard.  The master bedroom would be improved, sacrificing the bedroom beyond for a walk-in robe area and an ensuite. The end of entry hall would also be widened. A modern trend in houses today is the need for small ‘study’ areas as often mum, dad and the kids have their own computer – two of these small areas are incorporated in this design and that would be beneficial.

33 James Street Surrey Hills is scheduled for auction at 11am on March 13. Sue Wooldridge from Noel Jones expects $1.4 million plus here.

Generous land size and a home with and genuine house charm.

That is what is on offer here at 35 Essex Road Surrey Hills. Listing agent Clayton Smith of Jellis Craig suggested a lot could be done with this – moving the carport forward will make use of some dead driveway space and extending on a single level (because you have the room to do it) makes a lot of sense.

No doubt this property will appeal to families and my design concept aims to respond to this accordingly. While you could extend on one level, perhaps going up will work better for an older family when bedroom separation and multiple living areas are important. Also a two-storey home will minimise the building footprint  – allowing for plenty of room down the track for a pool or shed – from our experience most families still want a good sized lawn / entertaining area (backyard cricket is still alive and well!).

Another  thing I liked about this property from the start was the way the house positioned itself on the block – well set back from the street (which is important as Essex Road does some through traffic) and also away a bit from the northern boundary – this is very important in terms of capturing natural light and positioning outdoor areas where you ideally want them.  So often we see great houses which are just so poorly positioned – that is not the case here.

Although not brick the facade is pretty and will only improve with restoration.  Original formal areas were in good order and will underpin the capital growth of this property.

35 Essex Road Surrey Hills is scheduled for auction 12pm on February 27. Agent sstimated price $1.8m plus.

Design Smart

Adam

105 Stanhope Street Malvern is a good example of Italianate (or late Victorian) residential architecture, and while it is been updated many times over it’s lifespan, time has come again for change.

House has plenty of positives – grand formal front rooms and solid brick building bones, a corner location and a prized north-facing rear aspect.

At over 800m2 the land size is quite good here, yet most of that area is allocated to the front and to the sides of the property, instead of where most people like it – the rear yard. For this reason it makes sense to use the eastern side for car access / covered parking and a service yard area. The western side would return as great area for formal landscaping, serving a dual purpose of beautifying the property and also creating some privacy.

Building up here is a real possibility. This will maximise floor plan area while minimising the building footprint. Two-storeys often work very well for families – providing much needed accommodation and separation.  The rear yard is very important, and more and more people are looking for as much space as possible – pools and outdoor entertaining areas are often high on the wishlist.

This property really does provide a great opportunity for a family to create a modern home with timeless period charm in one of Melbourne’s most prized family suburbs – if done properly, it would be hard to go wrong here.

105 Stanhope Street Malvern is scheduled for auction Saturday, the 24^th of October at 11.30am and is listed by John Manton and Andrew Hayne of Marshall White.

Design well.

Adam

From very early on, when people built houses, siting was important. Why build in a ditch when you are likely to be susceptible to flooding? Why not build proud on the hill where everyone could be impressed by your fantastic house?

Good hill position for a home is one of those underrated property elements that really does help the charm and character of a house. First impressions really count and, if the house looks good and sits proud from the street, this will attract genuine interest very easily.  Privacy is also a key benefit here, as you simply cannot see into the house easily from the site, given inclined sightlines.

An example of poor hill position exists along Springvale Road: here a good majority of houses sit well down from the street and really do lack prominence and a sense of entry. Notoriously, these properties struggle to find a large buyer market and growth is affected accordingly.

Sometimes good hill position can affect other functions of the house, namely outdoor access and flow to the rear. This is evident in areas such as some parts of the Studley Park precinct in Kew. Sure, the houses here look grand, but the connection from the rear indoor living areas to the backyard is often not practical and often these properties have limited usable land size.

Two houses currently on the market that have a good hill position are 62 Manningtree Street in Hawthorn and 36 Moorhouse Street in Camberwell.  Both have pretty period facades and both sit up nicely from the street. The proposition of a rear extension is more likely to be accepted through council also, as sightlines from the street are more inclined and building bulk better concealed.

64 Manningtree Road, Hawthorn, is listed by Campbell Ward and Peter Batrouney of Jellis Craig and it is scheduled for auction on 1 August at 12.30pm.

36 Moorhouse Street, Camberwell, is listed by Geoff Hall of Noel Jones and it is scheduled for auction on 8 August at 1pm.

A well placed house that sits up nicely and has good street presence scores extra points in our James Home Rating system, and rightly so.

Design Smart

Adam

The million-dollar-plus market is looking reasonably stable in Stonnington on low stock levels.

63 Albany Toorak (Coonara) with Kay and Burton is back on the market again and it will be interesting to see what happens. It sold early last year through Marshall White’s Marcus Chiminello for a reported $8 million. Since that time, the owners have completely renovated the home to quite a high standard and made what was a disastrous floor plan quite liveable, although it still doesn’t flow naturally to the west where much of the garden lies. These high-quality renovations look to have cost over a million dollars and the current owners have removed or hidden a very unsightly power substation that previously dominated the yard. According to Kay and Burton, around 8000 sq ft of the original parcel, which was well in excess of 20,000 sq ft, has been taken by a neighbour since last year’s transaction. Ross Savas is quoting more than $6 million and, boy, this is one for the calculators. Last year’s price was that high? Less land lost – add back renovation costs – add back substation removal – minus GFC allowance – plus shortage of stock and the price comes to …….

http://www.realestateview.com.au/Real-Estate/Property-Details-buy-residential-1368973_S.html

32 Grange Road Toorak is back on the market with Paul Williamson of Jellis Craig. Out of his patch but not out of his depth on this one. http://www.realestateview.com.au/Real-Estate/Property-Details-buy-residential-1366442_S.html. Sold under the hammer (with Paul) on 30 August last year for $4.15 million (913 sqm, $4545 per sqm) against a quote of $3.3 million. Nothing seems to have been done to it. Our archived last year’s auction notes are:

“A very strong and well conducted auction by auctioneer Paul Williamson with a realistic quote, on market at the quote and competitive bidding until it sold for a strong price. Three bidders.”

3/1 Chastleton Toorak. This is a pointer for the $3 million-plus or 300 sqm apartment market. Expressions of Interest close this coming week and, managed by the professional Peter Kudelka from Kay and Burton, it’s line ball as to whether or not they will get their price. This truly is one of the best floor plans you are going to see in an apartment so they should get their price if … if there is a market at this level.  http://www.james.net.au/rating/3/1-Chastleton-Street-SOUTH_YARRA

11 Grosvenor Toorak. Despite our love of the smell of renovating Aston Martins in the garage, this home seemed to attract no interest or bidding at auction. Can’t think this won’t sell – it’s too good – so it must be a price or timing issue. We await news. http://www.james.net.au/rating/11-Grosvenor-Court-TOORAK

Architect Adam talked at length in his architecture column last week about two Malvern beauties that needed work, 13 Bonview and 7 Parslow. Both sold yesterday, with 13 Bonview a pass-in at $1.89 million and a later sale above that, and 7 Parslow under the hammer at $1.421 million with seven bidders.

Chatting with Andrew McCann of Bennison Mackinnon last week, he said that they have had two weeks in a row of 100 per cent auction clearance rates, which was the first time since 2007. We await this week’s result to see if it was three in a row. This is a market pointer.

It’s 6pm Saturday and the James $1 million-plus auction clearance rate was over 86% on the 22 auctions we attended. 86% on 22 auctions – hello.

It’s hard to believe we are supposedly in a recession.

Hard to believe indeed when you’re standing across the room from one of your experienced competitors Chris Koren of Morrell and Koren and both of us are looking at each other aghast. No, we are not bidding, we are standing completely mute (hard to believe again, as we’re buyer agents) trying to take in the fact that a property at 40 Lambeth Avenue Armadale, which was on the market and fairly quoted at $2 million, has just been bought for $2,860,000.

And speaking of Morrell and Koren, I was reading Damian Taylor’s article on the FIRB (Foreign Investment Review Board) changes and found it impressive in its content and analysis of the situation. Basically, many overseas people and companies who had a myriad of restrictions on what they could buy and a complicated procedure to achieve purchase can, as of April 2009, buy established residential dwellings and are no longer required to notify FIRB in advance. Yes, there are still some restrictions and, yes, not all overseas people who are here in Australia can buy, but a lot more can than before and they can buy a lot more than before. For more information: http://www.firb.gov.au/content/policy.asp

In a nutshell, this will mean an increase in demand and an increase in money coming into a market already short on supply.

Practically, this could also mean higher prices. Just as the overseas market was the backbone of the off-the-plan, high-rise apartment market, these new overseas buyers could be the driver behind further price increases at the top end.

And the changes have been quick. All of us have seen increases in traffic at open for inspections of overseas buyers but, as we have said in previous market news insights, we have seen no action. No action that is until now.

It started with a report from Dean Gilbert from Marshall White in our market news a few weeks ago, then a casual conversation with Ross Savas from Kay and Burton a week later where he said “Mal, the overseas market has fired up again”. We ourselves saw nothing until a fortnight ago and, since then, we have had several misses to overseas buyers. Some sales agents are no longer reporting just enquiry but also bidding and purchasing at auctions and private sales in the $1 million-plus market arena from overseas buyers.

We ourselves have seen part of our overseas client base move from talking to bidding. Most overseas buyers are from Asian countries.

Sean Cussell of Marshall White, Richard James from Jellis Craig and Jeremy Fox from RT Edgar all say the same: there is a strong pick-up in demand from overseas buyers, mainly from Asia, who now have fewer hurdles to home ownership in Australia and seemingly almost as much money as pre-GFC days. Boroondara is particularly sought after by overseas buyers, but not to the exclusivity of other councils.

If stock stays low, then the FIRB changes, plus the improved local buyer confidence/attitude, means that prices should continue to rise in the $1 million-plus sector, as they have since the second or third auction weekend in February. Yes, many are still below 2007 prices as it was a big fall last year!

This weekend, we definitely saw signs of a market spiking:

• spasmodic breakaway and unexplainable bidding
• continued multiple bidding
• lesser quality homes being bought

These are all signs that the market is rising. How long will it rise for? Well, we thought it may stay strong/rise until stock levels go up, but now we have to add another variable: it may also stay strong/rise until the overseas money drys up.

Click on Mr. James the $m+ Price Worm to the right of this article – he or she is moving up.

Boardroom auctions continue to be held. At Jellis Craig today, three bidders exceeded $3 million on a property that was asked to be undisclosed almost as a condition of entry – we will respect that. It was a strong auction result.

In finishing, I would like to thank Margie Lane, a client of ours, who has experienced some troubles with VCAT, Councils and Heritage. She has kindly put her thoughts down on paper in Adam’s Architecture section below and we thank her very much for that. It’s an eye-opening read.

I would also like to thank Gerald Betts of Marshall White for his contribution to Another Point of View article below.

It’s hard to believe a property can go $800,000 over reserve and be fairly quoted and …………………..

Have a Happy Mother’s Day Mum and Buy Well

Mal

Main Picture above:
See the glum guy in the tie standing above the concerned guy in the tie who is next to the frowning guy in the tie. That’s Michael Gibson, Gerald Delany and Sam Wilkinson of Kay and Burton and they were none too pleased as to how this auction at Cochran St Camberwell was going. No bids. But in the end they got the job done to the buyer’s and vendor’s satisfaction in post-auction negotiations at $1.85 million.

It’s 6pm Saturday and the James $1 million-plus clearance rate is 77%. The market seems healthy at present. Today’s Herald Sun said the market had fallen in price and that is correct; however, if there was meant to be an implication that the $1 million-plus market is today dead or in the doldrums like it was for the latter parts of 2008, then this is incorrect – that news is four months out of date.

February to May 2009 has seen prices generally stronger than what was achieved for similar homes in November 2008. These buys and sells represent a willingness of sellers to meet the market and buyers to compete with cheaper money (for those who can get it) for the 2009 lower prices.

We are not saying for one second that the market is flying above 2007; we are saying nothing like that (although there are some rare exceptions). What we are saying is that good-quality homes are attracting strong interest and, in many cases, three to five bidders; with as many as eight bidders competing at two auctions of the past two weeks that we attended.

But there is still two markets and two extreme examples show the divide between the sought-after and the not-sought-after.

On Anzac Day, we monitored five auctions over a million dollars and all sold. One of particular interest was 49 Mathoura Road Toorak which sold for $3.1 million. Although very well positioned, it was a difficult home to sell, as it required a $2 million-plus renovation. It was auctioned last August and we reported that auction. In fact, we saw a live bid of $3.7 million rejected. That’s a big drop in sentiment in a short space of time.

Link: http://www.james.net.au/rating/49-Mathoura-Road-TOORAK

Today, we saw an absolutely brilliant townhouse (sound like a salesman, but it is great) at 21 Trinian St Prahran sell for $2.5 million under the hammer at auction, after a previous hard-to-fathom expressions of interest campaign. This, by any measure, was a strong price for the home. A James Home Rating over 800 is rare for a townhouse (land content often prevents a better score) and this townhouse was rated at 820. This property’s near-twin, situated next door, sold off-the-plan for $1.8 million 2 years ago. If you allow for the fact that 21 Trinian St had a reported $200,000 of improvements, it still shows a healthy “profit” in 18 months. Not sure of its growth prospects from here, but it proves the age-old adage that ”sex still sells”. Agent Heather Elder should be congratulated on her management of the campaign and, in particular, her handling of the quote. Buyer value and seller value were miles apart and the temptation to quote $2 million-plus would have been immense. I did not see that and the price that was achieved proves that a quality agent can manage a very difficult situation without resorting to lies.

Link: http://www.james.net.au/rating/21-Trinian-Street-PRAHRAN

The big end of town is happening again and Grant Atkinson is outlining that in Sunday Reflections tomorrow. Two big sales that he touches on are almost $8 million for a Ross Savas (Kay and Burton)-sold home in Kooyong Road Toorak and a Nick Johnstone (JP Dixon)-sold mansion at 19 North Road Brighton. The price was around the quote of $7 million.

When speaking with Ross, he also stated that he disagreed that overseas buyers were out of the market. In fact, he had several $4 million successes in the past fortnight. While he wasn’t specific, if we accept this comment at face value, then that is interesting. We are not seeing that. We believe that, at present, many overseas buyers are so traumatised by world economic events that they are not acting. The market for $1 million-plus homes for what we report on seems to be almost all locals. We find that encouraging for our market and Australia in general but maybe we are optimists – or maybe we are realists. Time will tell. My hardest conversation is telling an overseas client that he or she really is not going to get an armchair ride to a giveaway price on a quality Melbourne home.

What’s in the news below:

• Four of the homes we reported on today were sold before today’s scheduled auction and some expressions of interest campaigns have multiple bidders. These situations are leading to an increase in boardroom auctions and this week Kristin has written an informative article outlining tips and tricks for managing boardroom auctions. We thank Glen Coutinho of Hocking Stuart for his input.
• In architecture news, Adam looks at a Brighton home with some difficulties and explains how a thoughtful renovation can improve it. On this subject, we will publish next week an insightful “warts and all” article on the frustrations of Heritage, written by client Margie Lane who purchased an Albert Park home through us two years ago.
• Finally, a big thank you to Sam Gamon of Chisholm and Gamon for his Elwood insights in his Another Point of View article.
• The Worm – off to the right – this is our attempt to reflect as accurately as we can minute by minute $1m+ residential market sentiment.

Buy Well

Barb Gregory is a legend within Brighton for her ability to get strong prices on good homes for her vendors. There doesn’t seem to be anybody she doesn’t know and, when combined with Hocking Stuart’s Peter Kennett at auction, they form a pair similar to “caught Marsh bowled Lillee” of  1970s cricket fame. Barb is a very strong negotiator and can talk any property up, good and bad. We have a lot of respect for how she represents her vendors.

Get through the first part of this interview and read some of Barb’s comments on things such as busy roads – you know she is right; in this market (down) for certain people, and at the right price, a busy road does warrant some thought. That comment made all of us at James Buyer Advocates rethink our negativity towards main roads in certain markets at certain times in the cycle for certain clients with specific needs.

Mal: Family Status and where do you live?
Barb: I have lived in Brighton all my life.

Mal: How long have you been in real estate and what is the company you work for
Barb: Have worked in Real Estate for 16 years, the last 10 with Hocking Stuart Brighton Office.

Where do you mainly work (area) and what types of homes do you specialise in
My emphasis is Brighton and East Brighton. I sell a broad range of property from Beach Boxes right through to the Top End. I still hold the record for a Beach Box - $204,000 - and a solid result of $9.18 million for a standout family home at 55 New St Brighton.

What makes a good investment?
Location, potential, orientation and desirability. Always comforting to know that, if you have to sell, the broader market will want it.

What makes a good family home?
The right floor plan to suit specific requirements, adaptable spaces, just the right amount of outdoor space and, most importantly, close proximity to facilities. If transport, shops and schools are a reasonable stroll away, don’t let it get away from you if you are buying, especially in this suburb!

What makes a good buying decision?
Knowing your market place, comparable sales and having your finances organised. Keep your eye on the big picture – don’t worry about investing a little bit more if you can afford it and it is the right fit.

Best investment decision you made?
Extending myself to buy the best I could afford in a desirable location.  I would always invest in property; it gives you a level of control.

Worst investment decision you made?
Too slow to exit the sharemarket – weren’t we all!!!!!!!!

What are the top 3 precincts in your area, how big is an average block, what type/style of home, what is the dirt price and how much for a renovated home today?
Anything around
1. Church St
2. Bay St , and
3. Were St offers the best of everything.
Average block size for these areas is about 680m2. with a very broad range of Architecture. Land price can vary from @ $160 persqft  to $300 plus, depending on proximity to the foreshore. A well renovated family home ranges from@ $1.5 to $5 million plus.
4. The Landcox Park precinct is a ripper for young families. Once again, a broad range of styles, land starts at @ $120 persq ft and you would need to be thinking @ $1 million for a well renovated home. Then of course there is our
5. Beautiful foreshore precinct where $3 million plus will buy you some land and $4 million plus may start a conversation between buyer and seller.

3 underrated streets in your area for family home buying (where, price, type and style, would they have to renovate)?
The pros and cons of buying on a main road is always an interesting discussion. When the market is strong, these properties get snapped up along with everything else, but, when tougher market conditions prevail, they can sometimes languish as buyers carefully scrutinise every aspect of everything on offer. Don’t underestimate these locations – they often boast substantial  solid properties on good size blocks and often with excellent potential.

In Brighton, Marriage Rd, Dendy St, South Rd, New St, Hampton St and St Kilda St  all offer opportunity. Hawthorn Rd East Brighton fits this profile beautifully – and, yes, there is a tram route that connects all over Melbourne right down the middle!

What would you say to a young couple with $800,000 looking for a family home specifically in your area – eg (where, type and style, would they have to renovate)?East Brighton, either side of Nepean Highway, is where to start. Doesn’t matter about the style. The older clinker bricks, cream bricks and timbers renovate well or make great potential new home sites. I always say to young couples invest as much as you can in acquiring the asset; the new bathrooms and state-of-the-art kitchen can wait a couple of  years. While the kids are young, don’t make the house too precious – live in it a while, consolidate, then make the improvements. All too often, young couples factor in too many improvements into their initial budget and constantly miss out.

What would you say to a downsizing couple with $1.5m specifically in your area (where, type and style, would they have to renovate)?
There are good options for this section of the market at the moment. There are a number of developments under construction or just about to commence. Buying off-the-plan if it is a project with a fine pedigree saves considerable stamp duty, and to be able to walk to the best of everything in this great suburb should not be taken lightly. There are also some interesting smaller homes on just enough land that offer great townhouse/apartment alternatives. The downsizers want to be able to lock up and leave,entertain,be able to accomodate family birthdays and Xmas and entertain the grandkids. They are a particularly fussy buyer group and won’t budge until they’re absolutely satisfied. If the budget is @ $1.5 million, they won’t even have to renovate - just add those very important personal touches.

Buyer Agents yes or no?
Absolutely, for the right profile. There is a significant number of buyers who have never purchased before and are time poor. They are also part of a generation who believe in outsourcing and are happy to pay a fee to get what they want. This group want information brought to them so they can make informed decisions quickly and effectively. On the other hand, there are potential buyers who have not been in the market for a significant number of years and are grateful for genuine independent advice on buying and selling. The list goes on: executors of deceased estates, international buyers, investors … a good buyer’s agent can prove invaluable.

Apartments or Houses?
Houses will always have the stronger capital growth but the right apartment in a great location will always be sought after.

Auction or Private Sale?
This decision is dependent on many factors. The individual needs of the seller must be carefully assessed, as well as the style, location and real market value of the home. If these factors mean the market will compete, perhaps auction is a consideration. These days, I always suggest a two-stage process and the Internet supports this process very effectively. If there is no pressing  time frame, this is the most effective way to get the ball rolling and assess the sales strategy after some relevant feedback.  I  always remind potential vendors that both the auction and private sale process can run parallel. If they want to get moving quickly, set an auction date and make it clear to the buyers that prior offers will be seriously considered.

How can a seller maximise their value at sale?
If a seller is realistic about the value of their  home, the agent will position it so it becomes competitive with what else is comparable and available at the same time. This strategy will ensure that possible buyers will give it serious consideration. I can’t stress enough the importance of presentation. Buying property is an emotive decision and, if the buyer feels comfortable with the environment, he will give it serious consideration. Likewise choosing the right agent is just as important – how many times have we all been put off purchasing something because the customer service attached to the product created a negative experience!

What are the do’s and don’ts for buyers when dealing with selling agents? 
In my 16 yrs of selling, the best business has always been done with people who approach me in the same manner they wish to be approached. After all, a property transaction could be one of the biggest they ever undertake and professional standards for both buyer and selling agent should be maintained at all times.

What do you think are the opportunities now with us?
Buyer’s agents should be considered another string to the agent’s bow; if the service is required, the agent should embrace it and recommend it. At the end of the day, if the partnership results in both seller and buyer completely satisfied, it’s a job well done!

Where is the market going in 2009 in your area?
Difficult these days to predict but I will continue to hold a positive view. Brighton/East Brighton ARE and will continue to be sought-after suburbs in which to own real estate. This suburb boasts an infrastructure that is hard to match – let’s list a few:  LIFESTYLE; a huge choice of SCHOOLS; four RAILWAY STATIONS; three amazing SHOPPING strips; numerous PARKLANDS and PLAYINGFIELDS; RESTAURANTS; two CINEMAS and, of course, one of THE WORLD”S MOST PHOTOGRAPHED FORESHORES………..absolute BLUECHIP.

Who will win this year’s premiership and why?
I like to think outside the square – with the World Cup just around the corner, I love the emotion and passion of the round ball -GO AUSTRALIA!

If a potential seller would like an appraisal or wishes to sell their home, how is it best to contact you and what are your details!
Barb Gregory   0419 568 370  Hocking Stuart Brighton Office.

Going outside my usual architecture role, I was having lunch with Grant Rheuben (a reputable mortgage broker 0423 834 067) and he raised some interesting points, as he usually does.

I’ve kept these points fairly succinct, as our market news is not about complicated economic matters, but more about what is really happening at the grass roots level in the upper-end Melbourne home market.

Many people are waiting for prices to drop even further. This is fair enough, as they may well do so.

However, from past history, we also know that those who wait do not necessarily gain a direct advantage over those that act wisely now. For some that wait, wait, wait ……(pause)………..too long.

So, in late 2009 and 2010, if prices do drop further, then there are still other things to consider:

• Banks, in general, are tightening lending criteria; eg ANZ for more than $2 million is reportedly now at 75% loan to value ratio – in practical terms, that is a 25% deposit requirement.
• Interest rates are now at their lowest point in 40 years; however, will lock-in longer term rates start to increase sooner rather than later?
• Banks’ assessment criteria is tightening; eg self-employed 2009 tax returns may not be as helpful to your case as 2008 tax returns and they may get worse. There is a window until Dec 2009 to use your 2008 tax returns.
• Banks’ assessment interest rates have not fallen at the same level.
• Valuers are becoming very conservative.

This is about the time to get out the cash-flow tables, but this is why we like Grant, as he talks “practical”, not complicated, financial jargon.

Here are his big issues for those that are waiting:

Repayments – what may they be then compared to now eg locking in five-year fixed rates then rather than now (you don’t have a mortgage for six months – you have to manage it over longer periods)?

Lending Criteria – will you pass the banks’ lending criteria then?

Deposit – in 2007, many banks accepted 5% deposit; now you may need 25% and a proven savings record (not a bad thing) but, if and when the opportunity arises to buy, will the banks support you?

Income criteria – what will you be earning?

Sometimes the focus on certain things can lead you to be blindsided by other issues.

Borrow Well

EXECUTIVE SUMMARY
Paul is a big-end-of-town agent getting multi-million-dollar deals in Hawthorn, Kew, Glen Iris and Canterbury on a fairly regular basis. We don’t always see eye to eye and have had some real scraps but, nonetheless, the respect is there for what he achieves for his selling clients. Paul does follow up and has a wealth of knowledge that can be very valuable for those he chooses to share it with.

Mal: Family Status and where do you live?
Paul: Married to Annette, we have three boys and live in Burwood.

How long have you been in real estate and what is the company you work for?
I have been in real estate for almost 20 years and I am a director of the Jellis Craig Glen Iris office.

Where do you mainly work (area) and what types of homes do you specialise in?
My area of influence is throughout the suburbs of Boroondara and my clients tend to have good quality family homes in these suburbs.

What makes a good investment?
A property that is well located to public amenities and has scope for capital appreciation.

What makes a good family home?
The old adage of Position, Position, Position … you can improve a house, you can’t improve its location.

What makes a good buying decision?
Every person is different; we all make decisions that we believe to be correct to our requirements at any given time. What’s a good decision for one person could be a completely unacceptable one for another; you just have to go with what you believe is right for you after giving the decision due consideration. I have found snap decisions are rarely good ones. Especially when chocolates are involved!

Best investment decision you made?
Buying a house from a “Private Sale” specialist who was operating out of his area of influence.

Worst investment decision you made?
Not buying real estate quick enough. It took me five years of working in real estate before I bought a property; in that time, prices almost doubled.

What are the top 3 precincts in your area, how big is an average block, what type/style of home, what is the dirt price and how much for a renovated home today?

1. Grace Park Estate in Hawthorn (Linda & Hilda Crescents to the south, Glenferrie Road to the east, Kinkora Road to the north & Power Street to the west. Hawthorn Grove, whilst not in the Grace Park Estate, is also a wonderful address; I have had over 25 sales in “The Grove”, which creates an instant affinity) has mainly Edwardian homes, with a smattering of Victorian & Federation homes, land is rare as hen’s teeth due to heritage overlays not allowing demolition; if you could find land, expect it to be in the vicinity of $300 per square foot, average land size ranges between 8000 to 10,000 square feet. It’s staggering to believe in the very early 1900s they had to run competitions to get people to build in this area: entry level is early $2 millions and the the best homes can sell for over $10 million.
   
2. The Tara Estate in Camberwell (Broadway to the south, Stanhope Grove to the east, Canterbury Road to the north and Burke Road to the west) is very similiar to the Grace Park Estate with house styles, heritage overlays, & land sizes; average prices can range between $2 million & $4 million depending on land content and standard of renovation.
   
3. Finally in Glen Iris, Heights Estate (High Street to the south, Hillcrest Road to the east, Ashburton Road to the north and Barina Road to the west) provides great value with a mix of styles ranging from 1920s to modern day architecture, single dwelling covenants protect the area from multi-home development, land sizes range from 7,000 to 9,000 square feet and you will pay between $100 to $120 per square foot for land, renovated homes range in price from $1 million to $1.5 million.

   Three underrated streets in your area for family home buying (where, price, type and style, would they have to renovate)

4. Any street west of Church Street Hawthorn (river end) quiet, well positioned to parklands, Victoria Gardens, public transport & schooling, entry level pricing around the $1.25 million mark, good mix of architecture styles (Edwardian through to Modern); at entry level pricing, some renovation is to be expected.
5. Bourne Road in Glen Iris, pricing starts just over $1 million, you will need to do some renovation, mainly 1920s architecture.
6. Also Ferndale Road in Glen Iris is a great spot, proximity to parklands, opportunity to create still exists, prices start at $1 million for land, renovation will probably be required.

What would you say to a young couple with $800,000 looking for a family home specifically in your area – eg (where, type and style, would they have to renovate)?
Ashburton is still coming along nicely with good opportunities around the $800,000 mark. A variety of styles exist depending where in Ashburton you purchase; the closer to the vibrant High Street shopping strip you buy, the better but will probably mean you will need to do some renovation. Great primary schooling available (State & Catholic) and there are parks everywhere, the Recreation & Leisure centre is a real hub as well.

What would you say to  a downsizing couple with $1.5m specifically in your area (where, type and style, would they have to renovate)?
Hawthorn is still the place to be, whether it be a new apartment in a boutique development close to Glenferrie Road or an excellent single-fronted Victorian home, no renovation will be required. After all these years, you deserve the best: move the furniture in and put your feet up.

Buyer Agents – yes or no?
There is a place in the market for buyer agents. For buyers who are time poor or lacking experience in negotiating, a buying agent can provide experience in both these fields.

Apartments or Houses?
Houses, because the land they are built on usually always goes up in price.

Auction or Private Sale?
Personally, I prefer auctions, but every property has different attributes that require consideration before recommendation.

How can a seller maximise their value at sale?
PRESENTATION: if your house is cluttered up with life’s mementos, dark because of the col,our of your wall paint or smells of pets, FIX IT, otherwise a canny buyer will wait whilst your property lingers on the market, your asking price drops and they will swoop. If your agent tells you to attend to something, they aren’t trying to inconvenience your life, they are trying to get you a better price. Nine times out of 10 they will know someone who can fix the problem.

What are the do’s and don’ts for buyers when dealing with selling agents?
There aren’t too many really, some people say don’t tell the agents anything, pretend you’re not interested. If we don’t know you’re interested, you may not get a call if the property is going to be sold. Just be yourself, tell the agent to keep you informed if you like the house and do any due diligence you want done, get a contract, do a building inspection etc. In what may come as a surprise to many, the vast majority of selling agents are normal people trying to make a honest living in a challenging environment. There will always be ones who push the boundaries like in any industry but, until I lose your trust, I expect your trust.

What do you think are the opportunities now with us?
Definitely upsizing, if you have a secure job (and that includes over 90% of the population), interest rates have never been lower, prices have compressed, now is the time to get the bigger home!

Where is the market going in 2009 in your area?
With the lack of stock available, we could see some slight price increases in certain price and area segments

Who will win this year’s premiership and why?
With all teams being equal (no injuries), I think Hawthorn has the best list of players and should go “back to back” – they could actually emulate the Brisbane trifecta – but injuries, as always, will play a huge part in deciding the Premiership team and there are a number of teams who could challenge given a decent run with injuries. Victorian teams, after being written off a few years ago, are back on the rise again; in fact, it could be an “All Victorian” Top 8.

Hawks, Cats, Saints, Pies, Bulldogs, Blues, Tigers & Roos … now what a September that would be … along with a few more listings … it could be heaven!

If a potential seller would like an appraisal or wishes to sell their home how is it best to contact you and what are your details!
I can be contacted during office hours on 9809 8999 or anytime on mobile 0419 330571 or email paulkeane@jelliscraig.com.au

Next week: Barb Gregory from Hocking Stuart: A lady in all senses of the word; sometimes known as the perfumed steamroller, being one of Brighton’s best selling agents.

At 6pm Saturday, the James Auction $m+ Auction Clearance Rate stands at a strong-for-sellers 78% of the 23 auctions we attended today.

Today, four clear messages came out of the results:

• The market is very fickle at the moment – up one week and down the next.
• If the market perceives the property is good, there are multiple buyers and a good price will be paid.
• The market in Stonnington today was bordering on white-hot.
• Right now, the higher you go the stronger it is (ceteris paribus).

Let’s look at some results:

15-17 Irving Road – 950 sq metre of land with a bulldozer home.  It was a who’s who of selling agents (Jock Langley, Andrew Hayne, Justin Long and Richard Mackinnon), Toorak land identities (Peter Gibson and crew) and many interested onlookers. Auctioneer Warwick Anderson from RT Edgar “kind of” repeated the result of Jeremy Fox from RT Edgar (Oct 08 – 23 Irving Road – 860 sqm  - five bidders – $4.9 million), with 15 Irving selling for $4.6 million with four bidders. Talking with Richard Mackinnon from Bennison Mackinnon afterwards, he pointed out that both were bulldozable homes and Oct land was auction-valued at $5703 per sq metre, whereas today land was auction-valued at $4842 per sq metre. So, yes, the market seems to be hotting up in the ultra top-end (eg $2.5 million-plus); however, prices have still come off again since last year in a number of cases.

An hour later, 3a Irving Road was re-auctioned by Castran and Gilbert, having failed at auction last year at $3.3 million reserve and it was sold post-auction at a tad under last year’s reserve by Tim Brown.

Ordering in a coffee and then moving another few hundred metres, we saw 9 St James, a great little cul-de-sac property, attract a big crowd but some strange auction tactics with a low pass-in and eventual sale believed to be around $4 million or $4926 per sq metre; again, a strongish - but not as high as might have been expected – result. Rae Tomlinson was the managing agent and conducted a strong post-auction negotiation process.

Taking a breather and some lunch, I was able to ring around colleagues, some who were bidding and some who were watching, and the same comment rang true. If the market liked it, there was multiple bidding, including nine bidders at Field St McKinnon,  four bidders at Benson Street Richmond, five bidders at Tooronga Road Malvern, three bidders at Mernda Road Kooyong, five bidders at Kardinia Road Glen Iris and 78 bids from five bidders at 21 Lambeth Ave Armadale.

I finished the day witnessing a throwback to 2007 days with seven bidders “going crazy” and paying $1.655 million for 36 McKinley Malvern. I’m not saying the buyer was crazy, just the strength and depth of the bidding was very strong. This house did need a $500,000-plus renovation and, after the price paid, that makes this a $2.2 million home in McKinley, which is in excess of sales in previously stronger years of completed, fully renovated Victorians. Still, the sellers are extremely nice and decent people and deserved a break to go their way.

That was Stonnington and that was the upper end. Bayside and Boroondara didn’t have as many high-end auctions and, from what we could see buying homes in those areas, was slightly easier than Stonnington. So, is Toorak leading the charge back? Only a scallywag would say that but the past two weeks of slightly quieter results have been given a real jolt and we are now back in February 2009 days as far as strength is concerned.

Of course, stock levels and quality are still the key. What was good has now been bought and, with precious little coming on beyond next week with Passover and Easter, buyers will need to be patient for a month or so if they haven’t found their dream home.

Apartments are really making me think at the moment and we have completed a specialist article below on what is really happening at the top end of the apartment market.

Adam reviews a Nonda Katsalidis house in Balwyn North in his architecture spot and this week we put Hamish Tostevin of Marshall White under the microscope and hit him around with a wet flannel. Some of you have given feedback saying why not ask some hard questions about quoting and expressions of interest shenanigans. We will, and we already have agreement from some of the key agency directors in Melbourne to answer the tougher questions around the middle of this year – again unedited. However, our plan for the next few months is to continue to show what we think we all can learn from quality selling agents. While there are certain things all buyers must be careful of when dealing with selling agents, there is still solid information that selling agents can provide that is not related to a property they are representing the seller on.

Buy Well

Concept Drawing: 18 Peppin Street Camberwell

While in good order and well located, this property was passed in at auction in front of a good crowd.
With some simple internal alterations, this cute house can easily overcome a few of it’s simple shortcomings.
Rating before 674 – rating after 810.

Negatives –
• Lacks a bathroom;
• Small open plan living area
• Kitchen does not receive any natural light and is a little pokey;

Positives –
• Lovely Edwardian facade, with most original features intact and in excellent condition;
• Rear car access;
• Has a swimming pool and is located close to Camberwell Junction;

Of course one could always extend up, and that is a realistic option also.
That will involve significant additional cost and also require town planning approval, which may be tricky here.

Overall an interesting auction weekend – the shortest day of the year (in terms of daylight hours) and a typically cold and wet Melbourne one. Crowds at auction were down, and typically there were one-to-two bidders. Vendor bids and pass-in are becoming more and more the norm and buyers need to be prepared for this. The difference between a good and bad agent is becoming more and more obvious.

8 Glen Street Hawthorn. Step back in time 30 years to experience some real 70’s architecture here. Typically small bedrooms and a floor plan which does not really suit contemporary living contributed to a rating of 553/1000. The big positive here was the location – Scotch Hill.

This auction was always going to be interesting and the upper end of the quote range was always going to be tough to achieve. A vendor bid opened the bidding at $1.275m and two bidders nibbled at this in the $1.3m’s. It would take a skilled agent such as James Tostevin to sell this, and it did after passing in for $1.32m to eventually sell for $1.42m. Not a bad result, we have seen many properties of this ilk pass in at land value and not sell on auction day recently.

8 Colvin Grove Hawthorn. Not the same esteemed position here, but a renovated period style house of some quality which may appeal to more. This rated 668/1000.

About 40 at the auction, yet it was clear to me that there was only one serious bidder. The auctioneer Maurice Di Marzio of Jellis Craig opened with a vendor bid of $1.2m and the one bidder was easily dragged along to $1.27m. The property was then passed in. Perhaps a pre-auction offer might have been the way to go here – or maybe just a match of the original vendor bid. The property is now for private sale for $1.42m.

40 Frederick Street Yarraville. Attractive period style home close to the village. North facing rear with off-street car-parking and a lovely feel. We rated this 722/1000. In front of a crowd of around 40 people, auctioneer Craig Stephens of JAS H Stephens opened the bidding with a vendor bid of $540K and then 2 bidders fought this out. On the market at $625K then selling for $635K. A good campaign by Tate Moore, and a good result for vendor and purchaser alike.

In my travels I look at many, many houses and when you see a good one, it really stands out.  No. 4 Talofa Street Brighton East is a good example, and if not sold prior to will be auctioned by Buxton’s on June 14 at 11.30am.

This house really has everything, and I believe represents a fine example of contemporary urban architecture, embracing the latest technologies and also suiting well the requirements of most families. The style is not trying to be something it is not, which is a welcome change and quality has not been compromised here.

Nice design touches include –

• deep reveals to  window openings – this helps with shading and improves the aesthetic;
• full height internal doors, very effective in accentuating the feeling of space
• large entry door, again this is an impressive statement which also accentuates the space;
• wide stairs and hallways.

Given a fairly average block size of 604m2, this house is quite large and packs in a lot. One of the real keys to this is the four car basement (which also accommodates a home theatre and wine cellar).  This car accommodation does not impose on the ground level building footprint, nor does the garage entrance dominate the facade of the house.

On a minor note, lack of privacy to the front courtyard lets this down a little, however this could be easily rectified with the installation of  a solid fence. The rear yard has a  south-westerly aspect, meaning parts of this area will be in shade.

Sensibly, a ground floor bedroom / guest room is located to the front of the house (this is important in the event that a family member becomes unable to climb stairs) and also provides flexibility for the future of a growing family (ie maybe the parents do not want to share the first floor with growing teenagers). Open plan living is very spacious and connects well to the external living area via large, full height sliding doors – most people would really appreciate and love this house. It will be interesting to see things unfold with regard to its sale.