The spring market has proved what we have been saying all year. The inner city, high quality, perfect home market is firing as strong as it ever has. Good quality family homes on good quality blocks are in a boom at present. It is also, in our opinion, not too great a claim to say that this market has risen 20-25% this year. However in outer areas of Melbourne, in the townhouse and in the apartment market the news is mixed. This market’s growth has been a lot lower and many properties are simply not selling. Interest rates have affected these markets but not the top end.
What will happen as we move through Christmas and into 2007? As usual our answer is who knows? We don’t. All we can say is the market is subject to rises and falls, however over the long term, good quality property has always risen and we see no reason for this to change.
What lessons can we learn from the current market? If you are buying to live in or invest, try not to go for cash flow charts/seminars, newer areas a long way from the CBD, or flashy builds on small blocks with small rooms and no land. Why not stick with the winners? Good area – established suburbs with a mosaic (our new favourite word) of cultures and styles; good position – near what people have liked for centuries – transport, coffee, food, schools; good land – orientation for light, street frontage, good back yard and good building – nice flow, rooms in the right places, good size, good light, good space.
In Love with Linda – Hawthorn (Grace Park Estate)
Whilst the market can still be fickle, here are some practical examples showing how hot the market is.
All these blocks had good period homes on them. Some needed renovations and some didn’t. People have privacy requirements so we have not been too specific deliberately. The point is to show you just how hot this area is at present.
1. Mid Year 2006
Linda Cres. – 10,000sq ft block, needs $300k renovation – north orientation – high $1 million.
2. One month later
Linda Cres. – same as above – low $2 million.
3. A couple of months later
Hawthorn Grove – smaller block, better home – well over $3 million.
4. A few weeks ago
Linda Cres. – big block – south facing – good house – high $2 million.
5. Last week
Christobel St. – good block, bigger home – did not sell at auction.
Some of What We Have Bought Since Our Last Newsletter (September)
- Caulfield North – Arthur St – Double fronted Edwardian (See Picture Below)
- Berwick – Miller St – front townhouse – owner occupier (See Picture Below)
- Fitzroy North – Newry St – blank canvas Victorian – owner occupier (See Picture Below)
- Brighton – New St – Individual standing townhouse (See Picture Below)
- Brighton – Were St – Edwardian on good land with a pool
- Langwarrin – Warrandyte Road – Large acreage – owner occupier (See Picture Below)
- Heathmont – Anne St – owner occupier – architecturally designed (See Picture Below)
- St. Kilda East – Brunning Street – Edwardian – owner occupier
- Hampton – Crisp St – Bungalow home on big land with pool and north orientation. This buy was particularly pleasing as it sold for more a few weeks earlier, and our client ach
ieved a strong rental agreement for the next 1 to 3 years. (See Picture Below)
- Prahran – Perth St – award winning home – see further pictures at end of report (See Picture Below)
- Williamstown – Rifle Range – townhouse close to the beach – owner occupier
- Hampton – David St – town residence – owner occupier – great location (See Picture Below)
- Kew – St. Anthonys Place – town residence within a larger group – great location and beautiful gardens (See Picture Below)
- Brighton – Warleigh Grove – Art deco style duplex with a great location
Vendor’s Statements
One of the major conveyancing franchises in Victoria puts a very specific clause into both the contract of sale and the vendor’s statement. If there is a problem at settlement and this specific clause has not been removed in both the vendors statement and the contract of sale (prior to signing), you will be at a very distinct disadvantage with regard to any negotiations to remedy the dispute.
This advice has now come from three different legal practitioners and all have said that they would counsel their clients not to sign a contract with this specific clause in it.
Many people we act for do not understand what the vendor’s statement is, nor do they understand its significance. We do not give legal advice, however we strongly advise our clients to receive legal advice at all times.
Karma
“Karma” – dictionary meaning – the good or bad flow felt to be generated by someone or something.
How much is a home worth?
. Peace, tranquility, a place to reflect away from the rest of the world.
. Vibrancy, amenity, and comfort.
. Satisfaction, accomplishment, a statement of where you are now.
. Future options, a wealth count of good decisions over a lifetime or part of.
. Security – fort and temple.
. Family, you, friendships, a place of positive isolation where human interaction can be clear, clean and without compromise.
A good home is a place of this and much, much more.
All great homes are different and the one consistent difference is not price or style or distance from the CBD or water. The one consistent difference is the owner. Beauty is in the eye of the beholder and has no greater variance outside human relationships than in home ownership. For the home to be a great dream, irrespective of its physical make up, it really does need to be a reflection, a happy expression of the people in it.
Some homes have all the bells and whistles required for significant buyer interest, but they struggle or they are sold for a lesser amount than something down the road that to an engineer’s eye would be regarded as the same or inferior.
Why is that? Price? Maybe, but another issue is karma. The positive karma of a home has significant worth. It’s just that few try to quantify it, however it can be a critical ingredient in any great dream home.
In our detailed Property Reports, which we prepare before proceeding with any purchase, we focus on the other four other critical ingredients: Area, Position, Land and Building. But you should also think about the “karma” issues connected with a purchase.
Perth St Prahran had some great photos to help explain what we mean. The clients that bought this bought it the right way and for the right reasons.
We hope you and your family have good karma over Xmas.
Why would you pay money to us to help you buy?
- All properties are not the same. Think of a few houses in similar areas with similar characteristics and ponder what they were worth 10 years ago. What they are worth now? Will they have increased or decreased in value at the same rate? Not necessarily. We can show you inner city properties within a few hundred metres of each other that 10 years ago were each worth $400,000. Today, one is worth over $2,000,000 and the other $600,000. If you had been purchasing either of those properties, which one would you prefer to own now? We know the difference.
- Strategies. How to buy, how to minimise cost, what to buy, where. How do I make an offer? What do I really want and how do I get it? Where do I want to be financially in the next decade? Why do some people own multiple properties without a mortgage and others have one property and are struggling? Strategy.
- Saving money. This is the number one reason why most people think about advocates in the first instance, and in many, many cases we do just that. Whilst this is of primary importance in all business negotiations it’s interesting to note that clients we survey after the buying process, rate savings as the number 3 benefit in using James Buyer Advocates. Buying property well is as much about MAKING money as it is about SAVING money. Happy to explain in detail at our first meeting.
- Property value. If you think saving money is about getting an agent to take a few dollars off the “asking price” or finding a cheap place “below valuation” then please lets talk some more. In many cases if you are not crystal clear on property values then you will be negotiating at a level that will not buy the dream home you wanted and may well leave you with a compromised property in the long run. Another of the most expensive and distressing mistakes a buyer can make is too pay way too much. Under these circumstances selling agents are very pleasant and helpful as they laugh all the way to the bank.
- Stress & Emotion. Buying a home is about as bad as it gets. It’s emotional, exhausting and sometimes terribly discouraging. You only need to miss that perfect property, drive for miles to find the picture on the brochure didn’t nearly match your expectations (or what you’d been told), have agents leave you hanging or be gazumped in the negotiation stage. It hurts. Careful planning is paramount. It takes exactly the same time to buy a home well as it does badly. We find them, evaluate according to your needs, budget and what the property represents as a long term investment. Most people might only ever negotiate the most important financial decision they will ever make once in their lives. We do this all the time. We love it.
- Expertise. If you were selling a home would you hire an expert? If you had to go to court on an important matter, would you hire a solicitor? Why is this? Because no matter the level of intensity an amateur operates at, an experienced professional understanding your issues and distanced from your emotions will give a better result with less risk 99 times out of 100.
- ALL your options. There are hundreds of places out there you may never get to see. Quiet sales, private transactions, sales without boards. There are places out there you will not be given the opportunity to inspect because they are not advertised. We deal with agents every day, we find the ‘hidden’ houses as agents and vendors approach us quietly all the time.
- Agents and Auctions. We actually like and respect many selling agents, but this is a minefield and gaining experience can cost you dearly. There are some pretty average but also some very good agents out there. They work exclusively for the vendor. If they are excellent and some are outstanding, then they are committed to gaining the highest possible price for their vendors – it’s the law. To understand more about how agents work, please view our critically acclaimed DVD “HOW AGENTS WORK”. You can view it online at www.jpp.com.au/video_audio.html or alternatively, if you prefer, we can send you the DVD.
- Privacy. You may wish to keep yourself private as a bidder. You may have tried and failed to buy a particular property or maybe your business is really just that – your business. In any event, we represent you in complete confidentiality and until such time as the deal is successful, you can remain anonymous if you wish.
Some Client Thoughts
A recent email from a past client. Scott paid a little over $600,000 for his 3 bedroom Edwardian.
Mal and Antony
How are you? Hope business is going gang busters for you. I just thought I would drop you an email since it is one year since signing of the contracts on Repton Road. Am I having any sleepless nights? NO. Am I on a sure thing? YES. Have I purchased the right property? YES. Have I improved my golf swing? Definitely NO. Price movement alone speaks for itself and shows that I have purchased wisely. I am definitely in front of where I was 12 months ago. Thanks once again Mal and Antony.
Also I wish you and your family a safe and happy Christmas.
Thanks
Scott
Dear Ian and Sam,
First of all, we would like to thank you for turning the stressful task of purchasing our first home into such a stress-free and wonderful experience! Having just migrated to Melbourne and not knowing much about buying the ‘right’ property, we decided early on that it was best to get professional help. And that was exactly what we found in James Buyer’s Advocate.
Throughout the whole process you were generous in sharing your knowledge and always reassuring when we had doubts. You were also honest with your opinions and never tried to steer us towards making an early purchase. Basically we were always assured that you had our interests in mind the whole time. In fact the whole process did not feel like a rigid, business transaction but more like a friendship. For this we will always be grateful that we found you.
What a fruitful exercise it has been. We are now just days away from moving into our very own home in Berwick. Plus with the arrival of our newborn son, Renji, we are very excited that we will finally have a place to call home in Melbourne. A new chapter in our lives is now unfolding. Thank you!
Best regards,
Eddie and Miki (and Renji)
Ian,
It’s only a week now before settlement and I would like to take this opportunity to thank you and your team for their professionalism and support over the last six months. You made the journey enjoyable and stress free and I learned many valuable lessons along the way.
Purchasing an investment property has been a goal of mine for many years, and with the abundance of properties available on the market I didn’t know where to start. You provided a methodology that was simple and well researched and this ultimately gave me the confidence to complete my first purchase – the first of many I hope.
What impressed me the most was your level of honesty and integrity. Your amicable and open style made the whole experience ajoy and I was never pressured to purchase any of The properties presented to me (including Rosslyn Avenue).
Thank-you so much for your support and I hope I can touch base with you occasionally to get your thoughts on the market – maybe over that cup of coffee you promised me in the early days.
Regards.
Michael Trigila
A short note/testimonial to thank Mal for assisting us with the purchase of Embling Road:
Finally we have been able to buy a property! After several months of searching and “trying” to buy from local Malvern agents, we met with Mal and immediately felt that we may be able to buy something.
When the right property did arrive, Mal “conditioned” us regarding the price to pay for the position & quality of the property.
The negotiations and finalising the sale documents was impressive and we really needed Antony, Kelly and Mal’s expertise here to get us over the line.
The knowledge, expertise & contacts that Mal can draw upon in his communications made us feel very comfortable with our new Townhouse purchase.
We are now relieved that we did not buy any of the properties that we were vying for prior to meeting Mal, Antony and Kelly. Shirl also says that Mal buys much better flowers than I do! So he’s good at that too!
Best regards,
Alec, Shirl & Anthony Arnot.
Dear Ian
The dust has settled and we are now waiting out the settlement time before getting into Bonnyview Street! I’m making use of your Aftersale Information in preparation for moving – thanks for this – another useful product from James Buyer Advocates.
Alan and I have reflected on the ‘journey’ that we undertook buying our first family home and we both agree that your input along the way proved to be extremely valuable. We have learnt much about real estate from you and found your manner and knowledge to be very enlightening and helpful. There is no doubt in our minds that your input reduced our stress and worry significantly – after all, once we’d found the property (and you had okayed It), all we had to do was decide how much to pay (taking into consideration your valuation of course) and let you go to work.
We know you worked hard and fast with the negotiations, and in the end it was quite painless for us – we kept on with our usual tasks while you kept us in the loop on the phone about the progression of the deal, Again, there is no doubt In our minds that your input made a significant difference to our ability to secure Bonnyview Street. I especially appreciated you accompanying me throughout the contract and cheque signing!
Given our family circumstances, we didn’t ever get to have the many café discussions that your information mentions – I look forward to being able to do that next time! Never-the-less, your flexibility to fit in around our schedules was great and much appreciated.
Best wishes
Colleen Young
Dear Mal, Kelly and Antony
It is with great pleasure that we write to express our heartfelt appreciation for your assistance in acting as our advocate on the purchase of our new home. We are now the proud owners of 3/43 New Street, Brighton and we honestly feel we couldn’t have done it without you. We thank you most sincerely.
As you are aware, in the last 10 months we embarked upon two very special journeys – both daunting and emotionally charged, but at the same time extremely significant in our lives. The one involved our relocation to Melbourne, the other, the process of buying our first home and putting down roots in this beautiful city. As with all life-altering events, we experienced both the agony and the ecstasy of these experiences. We are truly thankful to have had you as our trusted companion and watchful guide in the latter journey.
In July we felt relieved to have discovered the concept of engaging a ‘Buyer’s Advocate’, as the prospect of buying a house was proving to be a big challenge for us. From the start you put us at ease with your open, direct and friendly manner and very soon we had summed you up as a professional with a witty sense of humour: perceptive, knowledgeable and experienced in the property game.
Throughout the process you steered us in a logical, unruffled and unemotional manner. Every time we lost direction and focus, you firmly led our strayed thinking back to the criteria we were striving to meet. You anchored our thoughts and aspirations. May I also add that the whole time you were astute enough to understand that we, ourselves, had to realise the extent to which we could meet our expectations.
‘When the going got tough, the tough got going’ – Mal, you proved your excellent negotiating skills when you engaged in ‘tough’ dialogue with another agent and secured an extension on our current lease agreement, thus gaining us the time we needed to continue our property search. Between July and October, constant communication and numerous coffee, cake and lunch meetings cemented our sound working relationship. Being the good listener that you are, very soon you began to realise what these ‘fussy’ South Africans wanted.
3/43 New Street came along whilst we were seriously investigating two other equally exciting properties. At first you argued both the pros and cons of buying it, but when finally convinced that this was the property we really wanted and that it was a good buy, you sprang into action. Within a few days you had obtained the necessary background information, put together a detailed property report, concluded building and pest inspections and worked out a strategy for putting in an offer.
Although Friday the 13th was not a particularly auspicious day to be putting in an offer, we felt secure in the knowledge that we were going into it armed with your wise counsel and wealth of experience. As a result, the offer we made was perfectly pitched to secure the property (only by a whisker over someone else’s offer). The perfect ending to an experience that was extremely interesting, to say the least!
Without a doubt we will be contacting you when next buying property and have already recommended your services to our friends and relatives.
Many thanks for the beautiful flowers and champagne. They really added a special touch.
It’s been a real pleasure getting to know and trust you.
We look forward to enjoying many happy years in our new home.
Kind regards
Anthos, Martha and Costas
Yannakou
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Christmas Closings
Our office will be closed for the Christmas/New Year holiday break from December 23 to January 1, inclusive. We will re-open on January 2, 2007.
In addition, we are all taking a few hard earned days off during January on a rostered basis; please contact the office if you need to speak with a specific member of the team.
With the festive season again upon us, we thought it timely to include a wonderful Christmas recipe from Eileen James (Mal and Ian’s mum).
Dutch Ginger Cake
- 1 ¾ Cups Plain Flour
- ¼ Teaspoon Salt
- 125g Preserved Ginger
- 1 Egg
- 185g Butter
- 1 Cup Castor Sugar
- 60g Whole Blanched Almonds
- Hand full of glazed cherries
Sift flour & salt, add castor sugar and chopped ginger.
Melt butter over gentle heat. Allow to cool slightly.
Mix in beaten egg, reserving one teaspoon of egg for glazing.
Add butter to flour mixture, and mix well.
Press mixture into a Greased 20cm round tin.
Brush top with the remaining egg, and arrange almonds & Cherries decoratively on top.
Bake in moderate oven 180degC for 45 mins., or until cake is golden and firm to touch.
Allow to cool in tin, turn out, cut into wedges to serve.
Yummy!
It’s 6pm Saturday and the James Clearance Rate for million-dollar-plus auctions is 60 per cent on the 20 auctions we attended but that may change by Sunday.
The Boardroom Auction is back on the agenda. There are traps, pitfalls and strategies required with a boardroom auction. However, in many ways, a properly conducted boardroom auction is a transparent way to conduct business. The jury seems to be out on whether or not a boardroom auction is covered by the auction legislation – meaning different selling agents do have different opinions. It seems black and white to us and the REIV has issued memorandums on the subject, but many selling agents are still unclear when the 2003 Dummy Bidding Government Rules apply.
Scott is Sandringham’s quiet achiever. Respected by many, including his rivals, Scott gets a number of deals over the line quietly and without much fuss. In fact, I’m not sure we know as successful an agent with such a low profile. We like Scott because he gets in his car and meets you at homes and we like Scott as a selling agent because he pesters you to go to some properties you didn’t want to go to and now and again you are glad you did. That’s a good agent. Friendly, price-accurate and communicative – if you wanted a real opinion on selling your home, you could do worse than give Scott Hamilton a call.
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