How To Start a Reno Well
THE RIGHT WAY TO WORK WITH AN ARCHITECT
The James Buy Sell 100-auction test, starting August 26, becomes a pivotal watch for those in the buying or selling arena of Melbourne's TOP END, especially with fiscal stakes in mind. July and August feel different from June - lets see hey!
From: David DeStefanis <david@vervedesignconstruct.com>
Date: 9 August 2023 at 9:54:38 pm AEST
To: Mal James <mal@james.net.au>
Subject: 25 Hawthorn Grove
Hey Mal,
Thanks for the call yesterday.
Firstly, I’m genuinely happy for Nicole & David. When I first met Nicole at her rental in Balwyn & she told of their buying plans for the future my immediate thought was..Mal James needs to help these people. Buying at that level is no joke & they needed somebody with your experience to work with them through the process. My gut feel was right.
Mal, I met you briefly on a property I developed, built & sold at 40 Argyle Rd Kew. You even gave it a very good review. Highlighting the quality of construction as a key feature…thanks ! That was a lovely well-built new home on a small South facing corner lot. We did well. You acted for the buyer Jim whom I still stay in contact with. I had known of your business before & was an early subscriber to market news. I was quite impressed with your team & no-nonsense attitude when a deal was ‘on the table’.
I read market news every week & follow your reports very closely. I have always been impressed with your insights especially as markets begin to change and over the years I have built great trust in what you report, how you report it & your honest appraisal of deals that go well & others that don’t go as planned.
There is so much bullshit in the papers around property & markets its always refreshing to get a balanced view on matters through Market News. There are not many market commentators who dissect the market like you guys.
I began our own business Verve Design Construct in 2005. Our philosophy has always been to provide quality construction with personalised service… most of my clients or buyers of our developed properties end up being good friends. I may as well stay friends with them if Im going to warranty their buildings for 10 years ! To that end its gone well. I was born in Kew, I went to school in Kew & I currently live in Kew…although we are currently building a new home in Hawthorn . Point being I have been a Boroondara resident all my life & community is very important to us, from what I read in the Mal James newsletter I believe we share similar values when it comes to life & business.
I hope to help Nicole & David build their extension when the time comes, that would really make me happy. They are good people.
@vervedesignconstruct insta handle to see some of our recent work.
Our last property we sold was 3 Grant Ave Balwyn. We work quite closely with Helen Yan whom I would think you also know.
We like helping people as early as possible in their construction journey. Please refer clients who may just want building advice, also those who might need a painter or sparky or plumber whatever & definitely happy to assist clients with new homes, extensions & renovation work. We are a nimble little business & we can help!
Thanks Mal & congrats on 25 Hawthorn Grv…a beauty.
Kind regards,
David DeStefanis
Verve Design Construct
Abstract / Summary / Quick 100 Word Read - Purple means 100-word executive summary. A quick way to get what is really happening in MELBOURNE’S TOP END market from JAMES BUY SELL and for you to decide if you want to read on in-depth.
For many right now renovation is like climbing Everest.
Renovating a home in 2023 is akin to scaling Everest, with challenges such as spiralling costs, supply chain issues, and labour scarcity. The lack of realistic solutions and fiscal responsibility in architectural training has contributed to a rising attrition rate, likened to an unexpected blizzard on a mountain climb. In Melbourne and other global locations, homeowners face a perfect storm, making renovation a demanding task. The solution, however, is not to exclude architects but to redefine their role. Engaging a skilled architect with clear briefings and budget management can transform renovation from an architectural death zone into a beautiful, liveable space. We show you how!
For many right now, a renovation is like climbing Everest.
It’s so constantly demanding; the time, cost and mental health management so real, that in 2023 and 2024, the renovation attrition rate is like an unexpected blizzard on the mountain.
It is largely the fault of the architectural industry (a sacred cow in past eras), for their lack of university training where realistic solutions for these times (difficult), client expectation management and fiscal responsibility are not offered as core subjects. Meaning many architects simply don’t have the skills or feel it’s not their role for you to be happy, on time and on budget in your reno.
It’s a shame because a beautiful (connected to you and skilled) architect can change your family’s life forever (every day).
This is how you find one and avoid an architectural death zone (the costly unbuilt).
The Melbourne Reno Problem is a Perfect Storm?
Right now, in Melbourne, as in many parts of the world, you as a homeowner looking to renovate, are facing a perfect storm.
- The cost of money is spiralling out of control.
- The supply chain for materials has roadblocks due to war, time and cost.
- Skilled labour is hard to find, naming its own price to reduce the risk of liquidation and like you, unskilled in finding cost-effective solutions.
- And that’s before you battle your neighbours, council, heritage zealots etc.
In the longer term, for architects to remain regarded as a noble profession, they need to move with the times and look at their training, work practises and most of all, their mindsets.
But this is 2023 – how can you make a renovation work for you?
Do you in fact need an architect?
Unequivocally yes you need an architect, on all but cosmetic makeovers and then we would suggest an interior designer to assist.
Why? Because what you will produce without a great architect will not be as good – no matter how naturally talented you think you are.
When Gina, Sim and I go into a Top End home where the owner does not understand light, space, flow and so on, they will inevitably get a lot less for their home. This is true in the Aussie Asian market as much as the Aussie European market.
A beautiful home is not just about finishes – a beautiful home is about light, spaces, flow, connections, transitions and a sense of place and that comes from a man or woman who knows how to create magic – which is usually not you the buyer (you know what magic feels and looks like – I do, but rarely do you know how to create it – I don’t).
A great architect is findable, but so are the miserable ones.
DO NOT go down an Architectural Rabbit Hole
How do you find a perfect architect – one who gives you a beautiful renovation, a reno you and your family are really, really happy with?
Firstly, you need to take charge and set the ground rules from Day One (and stick tight to them) – you should not give a stuff about architectural awards (do they ever give a gold medal for client happiness). What’s really important and if possible, you are speaking to past clients who have used the architect(s) you are considering. Question them strongly and then send them a beautiful bottle of red – because if they were honest, they will have helped you immensely.
Secondly you start with a brief, this is so, so important and in that brief, you set out what you want. No not architecturally – that’s their job – we mean what you want to achieve when it’s finished.
Here is something radical in a brief. “I want 4 beautiful bedrooms and 2 living spaces, and I want it finished by November 2024 and for no more than $1,500,000 including all/your fees and I want my family to be happy.”
Below in the next section is what a brief looks like and how you start the process.
Thirdly and finally, you engage an architect who sees it as their role and is tied financially to meet your time, cost and happiness budgets AND you hire a mentor/guider/qualified advisor (who is not the builder) throughout the project costing say $10,000 to $100,000 depending on scope – who is also charged with time, cost and advisory control on your behalf.
But Mal, this will wreck the creative process. Bullshit! This will enhance the creative process, for the architect’s job now becomes about your happiness, more so than the building and for that, the building has a far higher chance of getting off the ground AND a far higher chance of becoming one of beauty (your eyes, the only real beholder).
Lets get to Base Camp without Architectural Sickness
What a Good Architectural Brief looks like
A lot of our buying advocacy work involves working with architects pre and post the purchase. In my 60 years I've learnt great ideas are not great, if they're not completed.
We always send the initial brief to all parties (architect(s), builder(s), advisors and clients) on the same email. Everything below is 100% real and this week, so its current. We insist on a return brief for them to be considered.
August 9, 2023
Dear Mike Richard (2) and David, (architects/builders)
We bought for ??????? in 2021 for $8m – Heritage home – Rating 842 – 900sqm – requires a substantial renovation at rear, but you may be able to work with some of what is there. ??????? are the nicest, most trusting people you will meet – you will have that trust if you do this job – please use it wisely as we would love to recommend you again.
This is the only group email – please make direct contact and manage from here yourselves – both are doctors, so email in first instance is smart and then get contact details from there.
This is a potentially substantial job – but if not for you – please let us know and we will refer another.
Dear Christine and Jeff, (clients)
So, you are staying – you have a great home it just needs to be finished off.
Renovations – where to start?
A> Start at the beginning with what is it I really, really want and expand to what is it we really, really need.
B> Keep it big picture because you are going to have to write a brief and then your shortlisted architects/building advisors are going to have to write a brief back to you
C> People are so important. We recommend you get a building advisor from the start. We recommend Richard Collins 0418 319 660 (who has been copied into this note)
Your decision will in a large part be made on
1) Likeability/trust/feel – all the same thing
2) Proven Due Diligence on recommendations, past work
3) The brief you send and his or her response.
Let’s assume 1 and 2 are self-explanatory except I wouldn’t hire a girl to do a women’s job unless the support was in place – eg first major commission would need to have a supportive builder AND a mentor/guider that was NOT the builder. A more experienced and proven performer with referrals from people you know then I would focus on 1).
Back to the Architectural Brief: Here is one we have developed and recommend. Of course, modify if you wish but these are the key things from your perspective. The builders’ and architects’ responses will give you a good indication of a future relationship.
TIP: Firm $ are too hard right now, so we use job-not-to-exceed concepts and then suggest alterations as you go.
We recommend in the first instance you talk to, two very different architects:
?????
?????
We recommend in the first instance you consider some building advice from David Stefanis from Verve Design 0404491174 and/or we can give you other recommendations.
Yours sincerely
Mal, Gina and Sim
What OUR INITIAL RENO NUMBER$ advice looks like
Buying or Selling or Renovating or Building. Our clients are asking for advice on their architectural and lifestyle options. Our advice letter below was this month.
Dear Trang and Julie
Great to catch you last week – a summary as promised.
We will keep the concepts devoid of flowers so you can better focus on a way forward.
PART 1 You need to know why clearly before you know what
The best way to know why is to answer what do I really, really want?
No not a new WIR or shinier tiles.
What I really, really want is to
- Spend more time with my family and work less
- Live in a great home where I can show the finishes off to my friends and feel a deep sense of satisfaction
- Find a more practical way for the family to grow and flow and feel more on top of the world than always caught up in clutter.
Above are suggestions to start down a track on to find what it is you really, really want – don’t be scared to write it down.
PART 2 Costs, Emotion and Convenience. With one extra TIME
We suggest you put your answers into these three manageable categories – a bit like PPP’s.
- Price – Costs – what do you have an appetite for?
- Position – Convenience – where do you want to be?
- Property – Emotion – how do you want to feel?
So, your home? What is it – too small, wrong place, bad feel, too costly?
PART 3 Options
- Light Reno of current = $500,000 and you make it work within $ via a building advisor. 3-6 months to do and a few months out of your home? Probably not add any real value to your home – maybe a few hundred thousand.
- Major Reno or New build – $1,500,000 for either and the $ are trickier and timing is 2 years.
- Major Reno – equals current value at agents estimate of $2,800,000 + reno = $4,500,000. Cannot see a home in that street being worth that so a capital loss of $500,000
- New build = $4,500,000 – That may work but it’s line ball on $. But going forward your home will date and in 10 years capital growth will only be on your land and your new build will have gone backwards
- With above it’s at least 1 year out of your home. Plus, significant bank loans and difficult growth prospects.
- Buy Sell – sell for agent stated $2,800,000 (we would try for more) and buy for $3,500,000. That is $700,000 plus $300,000 in costs (stamps, fees etc) but no time out of home and in the place you want and a good growth home.
Options 1 and 3 look the best choices with each “costing” you $300,000 – but no real time issue and the buy sell yes would require greater capital but would give you a better long-term growth if bought well.
Option 2 is a project and if it’s what you want then Ok; but it has substantial, time, emotional and growth risks and for what reason? That you have to answer Trang and Julie.
Here are the details of who can help below and they are cc’d into this email.
Architect: ???
Building Supervisor: Richard Collins 0418 319 660
Loan Advisor: ???
Hope this helps – all the best Mal, Gina, Kathy and Sim
What JAMES BUY SELL AUCTION advice looks like
JAMES BUY SELL clients back there today with Gina after the successful auction last week
What JAMES BUY SELL EOI Advice looks like
JAMES BUY SELL
our spring clients are looking to BUY your home off-market now
TOORAK big family home $20m – $30m Classic family home on good land.
Gina 0457 835 255
TOORAK big family home $18m.
Classic family home on more spacious land – in a good location – nothing to reno.
Mal 0408 107 988 Sim 0400 304 111
TOORAK big family home $15m.
New Build family home – would like a great cinema room and a big garage.
Gina 0457 835 255
TOORAK big family home $12m
Will do some work – family home.
Mal 0408 107 988 Sim 0400 304 111
ARMADALE family home $6m + $12m
2 Buyers – looking for ready to move in homes. Both currently living in Armadale and have homes to sell – swaps possible. Children at schools in the area. We’ve bought dozens of homes in Armadale – here is evidence map. Mal 0408 107 988 Sim 0400 304 111
DOMAIN – the TAN – Downsizer to $3.5m
Who doesn’t love the Tan – we love buying for clients off-market here and having a coffee at the Bot. Looking for a downsizer – will do some work. Kathy 0401 296 630.
South Yarra $6m
5 Br family home.
Mal 0408 107 988
GRACE PARK family home $6m
Classic or will do some work. North sides preferred. Grace Park is one of our favourite buying estates – here is evidence map. Mal 0408 107 988 Sim 0400 304 111
URQUHART HAWTHORN $6m
Smart families who don’t want Grace Park or Scotch Hill love the Urquhart estate. And we love buying here is evidence map. Looking for a client up to $6m. Mal 0408 107 988 Sim 0400 304 111.
KEW: $4.5m renovated 4 bed/garage home
GLEN IRIS: 5 bed/garage home – $3.5M
BAYSIDE $2.5m smaller family home and will fully renovate as experienced.
HAWTHORN doctors rooms will reno $3m
ALBERT PARK Investment $2.5m
Call us and be pleasantly surprised at how easy and private it can be. Mal 0408 107 988
Hampton family home - 5 Bedrooms
Multi-Agent - Off market
SOI: $2.9m - $3.1m
Jenny 0418 528 988
Julian 0418 558 408
Glen Iris family home
Auction September 2
$3.3m - $3.5m
Zali 0422 576 049
Looking for Philanthropists, Business People, Rotarians and other like minded people to accelerate the already completed 680 child surgeries in Africa and Asia through AI, Blockchain, Cryptocurrencies and other emerging technologies.
It could be profitable, its charity, its cutting edge and its working.
A program 5 years up and running could be 1 million child surgeries a year with the right inputs by 2030.
No experience necessary – just a want to make a huge difference.
More information Mal James 0408 107 988 or proofofcare.org
Global Impact: With the right blend of market, government, community, and philanthropy, AI and blockchain have the potential to level global wealth distribution, fulfilling promises of a better world – especially for the surgicallly poor. Emerging technologies will also be big in real estate before 2030. Mal James 0408 107 988
Africa’s Crypto Revolution: Leapfrogging into the Future Bankless Podcast
In this episode, they explore the frontier of crypto in Africa and the immense potential for both the continent and the crypto industry. Africa has a unique ability to leapfrog technologies, just as it skipped landlines and embraced cell phones. Yoseph Ayele discusses the opportunities that Web3 can provide in terms of financial stability, access, identity services, and credit facilities for Africa. Mal is doing a Masters at RMIT (1/2 way through) to help expand these brilliant opportunities. Listen on Apple Podcasts: https://podcasts.apple.com/au/podcast/bankless/id1499409058?i=1000623064940
What JAMES BUY SELL short-term advice looks like
2021 Bought - $19m
2023 Sold - $23m
Normally we say nothing - privacy - but somebody else splashed it all over the papers. In 2021 we bought for our client. This week sold for a $4m gross profit in 2 years. Same home, same agent. In fact same clients we acted for on another $4m+ profit Toorak home previously. That's a +20% uplift as the Toorak median dropped 10%.
