Fresh Market News

April 19th & 20th Weekend, 2008. Melbourne.

Overall Clearance rate: 64% on 1093 properties to auction.
Reasonable clearance rate on a very large offering.

Million Dollar Melbourne.

A tale of three properties in two markets.

Pre Xmas 2007 and Post Easter 2008



24 Seymour Grove Brighton
This property sold on one side of the street (south and no good for sunshine) for $2,920,000 in December 2007. We assessed at land value only.

Date: Dec 2007
Landsize: 974sqm
Price: 2,920,000

29 Seymour Grove Brighton

This property sold this weekend for $2,160,000 – having been on the market at $2,040,000 and was on the north side of the street (great for sunshine) and rating a whopping 866 out of 1000 (click here for full rating) – so it’s a great property. There were 3 bidders – the market knew it was there and what it might sell for.

13 Wolseley Grove Brighton

To confirm the gravity of this market shift with some types of property - 13 Wolseley Grove, the next street up in Brighton (same James Home Rating 866/1000, same north facing, same land size, same bulldozer house theory)  - was auctioned a month or so ago with a price expectation of 2.9 to 3.0m (we thought that was possible earlier this year when asked) . It remained unsold at auction after a vendor bid of 2.1m and a reserve or $2.85m. We have since been informed it maybe for sale at 2.5m, however the price received for Seymour may mean a further price alteration.

Are we saying the market has dropped all of its gains of 2007 – we in some ways; yes we are saying that for the higher end properties that are not the wiz bang wow. That of course may turn around next week.

Are we saying that for all properties? NO. For example, for properties under a million dollars or properties that require little work and have the right 3p’s – Price, Property and Position, we see the market as having only eased slightly (up to 10% off from Jan 2008). A lot of the sub million dollar properties didn’t rise as quickly last year as the Top End.

At this stage we are focussed on making sure we are paying the right price in the face of no competition or a different right price in the favour of proven competition or recommending we pass until we find another similar property with the right price. However if you are not experienced at auctions your inexperience could be costing you hundreds of thousands of dollars.

AUCTIONS LIVE
We attended a number of auctions over the weekend – below are 2 auctions

29 Seymour Grove Brighton (866 out of 1000) – Quoted had dropped during the campaign from $2.5m down to around $2.25m. Bidding opened by the crowd at $1.7m and with two bidders and some vendor bidding rose to $2,040,000 before it was put on the market with a third bidder and eventually sold to the first bidder for $2,160,000. In the end and even in this market we think that was a brilliant buy and congratulations to the purchasers for their bravery and foresight.

42 Sussex Street Brighton auction – which we rated quite highly  – the only real faults were perhaps one living area short downstairs and upstairs was less than average but we assessed it could be easily fixed. This property was subject to an offer late last year well above what it was passed in for today and is a further reminder that sellers are facing tougher times right now. Two vendor bids by James Paynter (a strong auctioneer) at 2.35m and 2.45m saw no bids, no action and a pass in.

MILLION DOLLAR SALES (all results can be found at REIV)

ALBERT PARK
S 30 Mills St B 6rm 125sqm $1,202,000 Cayzer
S 333 Montague St B 6rm 240sqm $2,200,000 Hocking Stuart
PI 171 Mills St B 9rm 440sqm $2,450,000 VB res $2,550,000 Cayzer
SB 11 Foote St WB 6rm 172sqm $1,525,000 Bennison Mackinnon
SB 138 Richardson St B 3rm 172sqm $1,392,000 Bennison Mackinnon

ALPHINGTON
S 4/11 Broomfield Av B 4rm strata undisc Jellis Craig
PI 9 Riverbrae Ct WB 8rm 531sqm $1,100,000 VB res undisc Collins Simms

ARMADALE
S 15 Glassford St B 6rm 225sqm $1,130,000 Marshall White & Co
S 23 Valentine Gr WB 8rm 600sqm $1,490,000 Bennison Mackinnon
S 50 Stuart St B 6rm 407sqm $1,710,000 Hocking Stuart
S 89 Kooyong Rd B 5rm 380sqm $1,045,000 Hocking Stuart
PI 23A Hampden Rd C 7rm 350sqm $2,400,000 VB res $2,575,000 Marshall White & Co
PI 53 Huntingtower Rd B 8rm 817sqm $3,000,000 VB res $3,150,000 Jellis Craig/Marshall White & Co
SB 59 Sutherland Rd B 892sqm $3,225,000 Kay & Burton

ASHBURTON
S 20 Lexia St B 7rm 604sqm $1,004,000 Noel Jones

ASPENDALE
PS Hearle Av v/land 416sqm $1,315,000 Thomson

BALWYN
S 2 Salford Av BV 9rm 765sqm $1,600,000 Woodards
S 25 Sevenoaks St B 9rm 807sqm $1,600,000 Marshall White & Co
PI 30 Sevenoaks St B 6rm 800sqm $1,170,000 VB res $1,250,000 Noel Jones
PI 36 Birdwood St BV 9rm 728sqm $1,050,000 VB res $1,145,000 Marshall White & Co
PI 42 Campbell Rd BV 7rm 831sqm $1,770,000 VB res $1,895,000 Jellis Craig
PI 5 Parkdale Av WB 8rm 652sqm $1,000,000 VB res $1,100,000 Karen Gornalle & Assocs Canterbury
PI 5 Relowe Cr B 6rm 1235sqm $1,170,000 VB res $1,210,000 Noel Jones
PI 52 Winmalee Rd 10rm 605sqm $1,350,000 VB res $1,450,000 Noel Jones
SB 6 Boston Rd BV 10rm 964sqm $3,175,000 Jellis Craig

BALWYN NORTH
S 9 Frank St BV 9rm 1164sqm $1,060,000 Barry Plant
PI 12 Sunburst Av B 9rm 666sqm $940,000 VB res $1,000,000 Bennison Mackinnon
PI 19 Nicholson St C 9rm 845sqm $1,400,000 VB lo $1,420,000 res $1,495,000 Marshall White & Co
PI 62 Aquila St B 8rm 730sqm $1,175,000 VB res $1,275,000 Jellis Craig
PI 73 Longview Rd B 12rm 64sqm $1,550,000 VB res $1,690,000 Fletchers
PS Balwyn Rd BV 8rm 1018sqm $1,000,000 Noel Jones
PS Hedderwick St v/land $1,250,000 Hocking Stuart

BEAUMARIS
PI 14 Rennison St BV 9rm 970sqm undisc res $1,550,000
PI 31 Balcombe Park La Rend 8rm 1027sqm undisc res $1,350,000
PI 3 Hume St B 8rm 697sqm $1,480,000 VB res $1,545,000 Hocking Stuart

BLACK ROCK
S 283 Beach Rd v/land 981sqm $2,120,000 Hodges/Leonard J Sharp Black Rock

BRIGHTON
S 2 Weatherly Gr BV 10rm 746sqm $1,960,000 Buxton
S 29 Seymour Gr WB 7rm 1014sqm $2,160,000 R T Edgar
S 61 Outer 5rm 364sqm undisc Buxton
PI 20 Collington Av B 8rm 681sqm $1,650,000 lo $1,675,000 res $1,795,000 Buxton
PI 12 Higinbotham St B 7rm 680sqm $2,050,000 VB lo $2,080,000 res $2,250,000 J P Dixon Brighton
PI 148 Were St B 7rm 947sqm $2,150,000 VB res $2,300,000 Hocking Stuart
PI 42 Sussex St B 8rm 790sqm $2,450,000 VB res $2,650,000 Buxton
PI 51 St Andrews St B 6rm 450sqm $1,075,000 VB res $1,150,000 Hocking Stuart
PI 73 Asling St B 6rm 630sqm $1,300,000 VB lo $1,310,000 res undisc The Moore Company
PS Male St BV 5rm strata $1,100,000 TBM Caulfield North
PS Whyte St WB 5rm $1,225,000 J P Dixon Brighton

BRIGHTON EAST
S 11 Hornby St B 8rm $1,305,000 Century 21 Wilson Pride
S 13 Florence St WB 6rm 610sqm $1,235,000 Hocking Stuart
S 31 Thomas St B 7rm 993sqm $1,050,000 Woodards
PI 14 Roseberry Av BV 7rm 707sqm $1,000,000 VB res $1,100,000 Buxton
PI 193 South Rd B 8rm $1,200,000 VB res $1,300,000 Hodges
PI 2 Ratho Av BV 6rm s/div $975,000 VB res $1,065,000 Hocking Stuart
PI 29 Camperdown St 6rm 698sqm $1,650,000 VB res $1,900,000 Buxton
PI 31 Centre Rd WB 7rm 637sqm $1,100,000 VB res $1,220,000 Hocking Stuart
SB 14 Bright St 6rm 743sqm $1,200,000 Hocking Stuart
PS Davies St 6rm 623sqm $1,250,000 Buxton

BRUNSWICK
S 663 Park St B 9rm 311sqm $1,315,000 Barry Plant

CAMBERWELL
S 21A Glen Iris Rd BV 7rm 486sqm $1,230,000 Jellis Craig
S 3 Wiringa Av BV 8rm 738sqm $1,552,500 Hocking Stuart
PI 1 Spencer Rd B 7rm undisc res $1,059,500
PI 68 Fairview Av WB 8rm 603sqm $1,300,000 VB res $1,345,000 Jellis Craig
PI 9 Finsbury Way B 6rm 702sqm $1,325,000 VB res $1,395,000 Marshall White & Co
CANTERBURY
S 13 Rubens Gr B 8rm 859sqm $1,960,000 Jellis Craig
S 15 Alexandra Av B 7rm 651sqm $1,610,000 Jellis Craig
S 8 Carinda Rd WB 8rm 660sqm $1,750,000 Noel Jones
PI 18 Alexandra Av WB 8rm 825sqm $1,950,000 VB lo $1,950,000 res $2,195,000 Jellis Craig
PI 1A Hopetoun Av B 8rm 693sqm $1,520,000 VB res $1,595,000 Jellis Craig
PI 2B Victoria Av 9rm 587sqm $2,300,000 VB res $2,550,000 Marshall White & Co
PI 33 Chatham Rd BV 9rm 1327sqm $1,950,000 VB res $2,295,000 Jellis Craig
SB 169 Mont Albert Rd B 10rm 1900sqm $4,700,000 R T Edgar

CARLTON NORTH
S 471 Lygon St B 10rm 4.6mx36.5m $1,375,000 Nelson Alexander
PI 86 Lang St B 7rm 250sqm $1,620,000 res $1,680,000 Nelson Alexander

CAULFIELD NORTH
S 367 Alma Rd B 9rm 18.3mx34m $1,410,000 TBM Caulfield North
PI 10 Mayfield Gr WB 6rm 445sqm $1,075,000 res $1,150,000 Gary Peer & Associates

EAGLEMONT
S 8A Albert Jones Ct B 9rm 1040sqm $2,065,000 Prue Jones Estate Agents
PI 22 Waldemar Rd WB 7rm 15mx64m $1,210,000 res $1,500,000 Ray White Heidelberg

ELSTERNWICK
S 67 St Georges Rd B 9rm 938sqm $2,250,000 Biggin & Scott
SA 13 Elizabeth St B 9rm 786sqm $2,055,000 Biggin & Scott

ELWOOD
S 77 Marine Pde B 16rm 645sqm $2,725,000 Frank Gordon Port Melbourne
PI 16 Pine Av B 5rm 312sqm $1,075,000 VB res $1,130,000 Chisholm & Gamon
PS Tennyson St B 6rm strata $1,130,000 Buxton

ESSENDON
S 104 Bradshaw St BV 7rm 487sqm $1,070,000 Barry Plant

FITZROY
S 80 Bell St B 6rm 162sqm $1,000,000 Mason White Mcdougall
PS Freeland La B 5rm 12mx25m $1,713,100 Nelson Alexander

FITZROY NORTH
S 192-194 Park St WB 6rm 11mx36m $1,360,000 Nelson Alexander
S 203 Barkly St B 6rm 40mx120m $1,450,000 Peter Barnes Fitzroy North/Thomson
S 9 Tucker Pl B 5rm strata $1,260,000 Nelson Alexander

FRANKSTON
PS Kirkstall Close BV 10rm $1,165,000 Hodges

GLEN IRIS
S 2 Beryl St B 7rm 717sqm $1,183,500 Jellis Craig
S 6 Hazeldine Rd WB 9rm 636sqm $1,615,000 Marshall White & Co
PI 15 Seaton St WB 7rm 663sqm $1,050,000 VB res $1,145,000 Marshall White & Co
PI 24 Malvern Av B 6rm 861sqm $1,200,000 VB res $1,350,000 Marshall White & Co
PI 6 Fuller Av WB 5rm 613sqm $1,025,000 VB res $1,110,000 Jellis Craig

GLEN WAVERLEY
PS Riley Ct BV 7rm 565sqm $1,000,000 Judd White

HAMPTON
PI 65 Littlewood St WB 8rm 626sqm $1,375,000 VB res $1,450,000 Hodges

HAWTHORN
PI 36 Manningtree Rd B 7rm 1102sqm undisc lo $2,400,000 res $2,600,000
PI 5 Woodburn Rd WB 9rm 688sqm $1,400,000 VB res $1,475,000 Jellis Craig
SB 14 Elgin St B 5rm 494sqm $1,430,000 Jellis Craig
HAWTHORN EAST
PI 32 Ryeburne Av BV 6rm 434sqm $1,550,000 VB res $1,895,000 Kay & Burton

HEIDELBERG
PI 5-7 Mortimer St WB 7rm 911sqm $1,025,000 VB res $1,120,000 Miles RE

IVANHOE
S 119 Ivanhoe Pde WB 6rm 648sqm $1,166,000 Miles RE
PI 28 Fairy St BV 915sqm $1,290,000 lo $1,350,000 res undisc Barry Plant
PI 38 Ford St B 5rm 932sqm $1,000,000 VB lo $1,000,000 res $1,100,000 Hocking Stuart
PI 9 Robbins St BV 6rm 568sqm $940,000 VB res $1,000,000 Coultons Melbourne
PS Waterdale Rd $2,000,000 Hocking Stuart

KEW EAST
S 24 Munro St BV 6rm 676sqm $1,065,000 Philip Webb
PI 192 Kilby Rd B 7rm 560sqm $1,200,000 VB res $1,300,000 Noel Jones

KOOYONG
PI 26 Avenel Rd B 5rm 480sqm $1,100,000 VB res $1,200,000 Kay & Burton

MALVERN
S 19 Edsall St WB 10rm 553sqm $1,605,000 Marshall White & Co

MALVERN EAST
S 47 Clarence St B 6rm 509sqm $1,021,000 Marshall White & Co
PI 137 Manning Rd B 9rm 639sqm $2,000,000 VB res $2,095,000 Bennison Mackinnon
PI 143 Manning Rd B 7rm 608sqm $1,175,000 VB res $1,260,000 Bennison Mackinnon
PI 38 The Avenue BV 6rm 531sqm $980,000 VB res $1,025,000 Bennison Mackinnon

MIDDLE PARK
PI 301 Richardson St B 6rm 190sqm $1,400,000 VB res $1,500,000 Hocking Stuart

MOONEE PONDS
S 9 Argyle St B 8rm 528sqm $1,015,000 Nelson Alexander
PI 18 Bowen St WB 8rm 487sqm $1,000,000 VB res $1,150,000 Nelson Alexander
PI 81 Eglinton St WB 8rm 700sqm $1,200,000 VB lo $1,250,000 res $1,350,000 Brad Teal

MOUNT MARTHA
PS Bay Rd B 6rm 1676sqm $1,500,000 Bon Accorde

ORMOND
SB 23 O'loughlan St WB 7rm 600sqm $1,213,000 Hocking Stuart

PARKDALE
PI 1/48 Herbert St 7rm s/div $990,000 VB res $1,050,000 Buxton

PORT MELBOURNE
S 1 & 3 Edwards Av B 10rm 1040sqm $2,150,000 Hocking Stuart
S 45 Cruikshank St WB 8rm 276sqm $1,780,000 Hocking Stuart
S 4T/155 Beach St C 4rm s/div $1,250,000 Biggin & Scott
PI 20 Hobsons Bay Pde B 6rm 274sqm $1,350,000 VB res $1,420,000 Hocking Stuart
PI 501/90 Beach St C 5rm s/div $1,500,000 VB res $1,700,000 Wentworth
SB 104/2 Pier St B 4rm strata $1,065,000 Hocking Stuart

PRAHRAN
S 35 Murray St 5rm 320sqm $1,600,000 Marshall White & Co
SB 16 Wrexham Rd B 4rm 356sqm $1,200,000 Collins Simms

RICHMOND
S 16 Clifton St B 7rm 180sqm $1,740,000 Hocking Stuart
S 2A Waltham St 10mx21m $1,500,000 Biggin & Scott
S 70 Fraser St WB 4rm 300sqm $1,015,000 Jellis Craig
SB 7 Palmer St B 4rm irregular $1,080,000 Hocking Stuart

ROSANNA
PI 51-55 Grandview Gr BV 10rm 1714sqm $1,350,000 VB res $1,450,000 Miles RE

SANDRINGHAM
S 17 Wentworth Av BV 8rm 923sqm $1,050,000 Buxton
S 6 Heath St WB 8rm 794sqm $1,475,000 Hocking Stuart
PI 20 Edward St BV 9rm 750sqm undisc lo $1,200,000 res undisc

SOUTH MELBOURNE
S 9 Church St WB 7rm 173sqm $1,250,000 Hocking Stuart
PI 373 Dorcas St B 6rm 168sqm $1,000,000 VB res $1,045,000 Hocking Stuart

SOUTH YARRA
S 10/371 Toorak Rd B 6rm strata $1,170,000 Hocking Stuart
S 34 Arthur St B 4rm 300sqm $1,195,000 Marshall White & Co

ST KILDA
S 6 Mozart St B 6rm 380sqm $1,207,500 Whiting & Co Professionals St Kilda

SURREY HILLS
S 70 Union Rd B 8rm 1187sqm $2,000,000 Jellis Craig
PI 29 Pembroke St B 9rm 920sqm $1,250,000 VB res $1,350,000 Hocking Stuart
PI 6 North Ct B 9rm 652sqm $950,000 VB res $1,009,000 Noel Jones
PS Wandsworth Rd WB 8rm 648sqm $1,350,000 Jellis Craig

TOORAK
S 8/48 Lansell Rd B 6rm strata $1,150,000 R T Edgar
PI 3 Blackfriars Close B 3rm 316sqm undisc lo $1,650,000 res undisc R T Edgar
PI 17 Iona Av BV 9rm 878sqm $3,000,000 VB res undisc Marshall White & Co
PI 225 Kooyong Rd B 11rm 1003sqm undisc VB res $4,500,000 R T Edgar
PI 8 Boandyne Ct B 6rm strata $1,500,000 VB res undisc R T Edgar

WILLIAMSTOWN
PI 24 Lyons St WB 8rm 1012sqm $1,900,000 VB lo $1,940,000 res undisc Sweeney
PI 95 Yarra St WB 7rm 450sqm $1,000,000 VB res undisc Barlow Mcewan Tribe
SB 68 Cecil St B 5rm 321sqm $1,100,000 Sweeney
PS Tobruk Cr BV 7rm $1,500,000 Sanctuary Lakes Resort Sales

1st and 2nd Homebuyers

Buyers Checklist

Like all good Boy Scouts and Girl Guides it’s important to be prepared. Before you start scouring through agent websites and trudging through open for inspections in search of your dream home, please complete the following, after all you are about to spend a very large sum of money!

You must have the following in place;

Firstly, go to your Bank or Broker and find out how much money they will lend you and get pre-approval. There is no point finding your dream home and not knowing if you can afford it. This delays you in being able to make a pre-auction offer or missing out on a private sale.

Secondly, have a solicitor or conveyancer (a person who handles property transactions) ready to look over the legal documentation (Contract of Sale and Section 32) for you.

Finally, we always recommend a Pest & Building inspection be carried out before you sign the dotted line. An inspector will check the property is structurally sound and free of pests. Be prepared to use the services of a Building Inspector more than once and to factor this cost into your budget. I had seven building inspections prior to finding my right home! The Yellow Pages is a good place to start or ask friends and family if they know a qualified and credible inspector. Most people who have bought a home would know someone, or we are happy to recommend a couple for you.

You are now ready to start your search. Happy house hunting! Next week I will guide you through the searching process.

This weekend across Melbourne there was a higher than normal number of auctions and significantly higher than the same weekend last year. Two auctions in particular that I attended were worth noting, not because they both sold, but the circumstances under which they were sold.

The first auction was a gorgeous Californian Bungalow in Wood Street Sandringham which was attended by about twenty people. The auction was very drawn-out with no one bidding until after the auctioneer went inside to refer the bid to the vendors. A bidder matched the auctioneers opening vendor bid and then another buyer started bidding. Both parties were going up in ten thousand dollar rises until the original bidder tried a gutsy move and bid twenty thousand. This put distance between themselves and the other party. The estimated price range was $1.1 mil to $1.230 and sold for $1.250 to the original bidder.

The second auction was again a fully renovated period home in Heath Street Sandringham. This auction was attended by approximately fifty onlookers and the most amazing thing happened. The estimated price guide for this home was $1.325 mil to $1.450 mil. The auctioneer opened the bidding at $1.33 mil and after ten minutes of trying to pry a bid out of the crowd, went inside to confer with the vendors. The auctioneer returned and again called for the bidding. There was not a sound from the crowd and after another five minutes of unsuccessfully coaching an opening bid from the crowd, the property was passed-in. There was an audible gasp and shaking of heads as a stunning home in a beautiful pocket of Sandringham did not receive any bidding.

Then the strangest thing happened - Four families approached the three agents all apologising for not bidding all asking could they buy the property!  A dutch auction then took place on the nature strip where there were tears and obvious distress. The successful party bought the home for $1.475 mil. I walked away wondering why the four families had decided on the same strategy. Maybe they thought the property was going to get a runaway result, therefore there was no point in bidding. I wonder if other buyers did not turn up at the auction because they thought this was going to happen? Our market is now conducive to a few surprises, and the one you think you can’t afford may now be within reach of the brave!

Architectural advisory

Renovations not always a clear winner.

Over recent weeks we have observed that the residential property market has softened. Whilst many properties are passed in, the really good ones seem to fly and continue to sell beyond the reserve price.

On the weekend 18 Alexandra Avenue Canterbury was auctioned. It ticked all the boxes – good land size (around 8500 sq. feet), excellent location (within one Canterbury’s premier streets) and a beautifully restored single storey Victorian home, which had been recently renovated amongst delightfully maintained gardens. The agent’s advertising headlined with “The Most Liveable House in Canterbury” and cited the renovation as ‘superb’. In the hands of one of Boroondara’s most experienced auctioneers, Alistair Craig, the house was passed in on a vendor bid of $1.95 million, without a single bid from a small crowd.

Why did this fail?

I believe that while the renovation no doubt suited the vendor’s brief requirements, it was not to most people’s taste. Some very basic fundamentals were overlooked, such as-

• no direct ensuite to the main bedroom;
• kitchen was small, and isolated from the main house;
• bedrooms 2,3 & 4 were quite small;
• rear extension while of good quality, had low ceilings and did not capture well natural light (particularly to dining area);
• family room was an awkward shape, and this did not help with logical placement of contemporary house furniture;

The house did have the wow factor but lacked a bit of common sense, and failed at auction as a result. In this market, any house with a bit of question mark will fail, and this property was testament to this.

A good result

More often than not a sensible renovated period style home within a friendly street can do well at auction, irrespective of shaky market conditions. In contrast to the previous article, 20 Rix Street Glen Iris sold before a crowd of 150 to 200 people, under the hammer for $1.22 million, $70K above the reserve price. The house was far from perfect – located to the end of an intersection (quite bad in feng shui terms) with a south facing rear yard of limited size, it had its problems which would be very difficult to remedy.

The house itself was good and had a great feel and flow.  Presenting well to the street, it had a single garage set back from the façade and charming raised entry porch. Formal living and dining areas were provided, and all three bedrooms were of a good size with generous storage. The extension to the rear maintained the original ceiling heights of the house and the open plan arrangement of kitchen, meals and living worked well, connecting logically to the rear outdoor living areas. Utility areas were renovated sensibly, accommodating clean lines and neutral tonings. Overall a good result for good home which no doubt caught the imagination of many young families.

Investors

Cashflow over long periods.

When considering an investment property, one of the most important tasks we undertake is an analysis of what is likely to happen to your cash flow over a long period. Unless you have the money sitting in the bank (and assuming that most people don’t), owning a second property can be a significant drain on your cash resources.

The following information is fairly self-explanatory, and assumes an interest only loan over ten years (so if you borrow $471,000 at the start, you still owe $471,000 at the end), and is based on a flat or apartment purchased at $450,000.

The figures assume –

• Rent of $400 per week and annual rent increases of 5% (even though it is expected rents to increase by 50% over the next 5 years, I strongly believe in conservatism!)
• Capitol growth of 7.5% per annum (flats generally grow at a slower rates than houses)
• Tax rate of 41.5%
• Depreciation of fittings, fixtures and buildings at standard rates
• Stamp duty at Victorian rates
• No vacant periods

This is a snapshot of what is likely to occur over a ten year period -

The interest has been taken up in a table that I can send to you if you’d like to see it.
This particular example shows a net gain of nearly $200,000 and has taken every foreseeable cost into account, including your cash outgoings to cover shortfalls on a monthly basis.

We are capable of producing a true financial picture of an investment property you may be considering, based on your income and tax rate, actual growth rates and rental returns and project an outcome over any period of time.

Unlike most other companies who claim to specialise in investment property, but whose real motivation is maybe to sell you a home loan, we not only determine financial outcomes, we also source the property and negotiate the sale on your behalf. And, unlike other companies, we undertake annual reviews of your investment to ensure it’s on track for the outcome we forecast at the start.

Happy to have a chat any time.
Peter Sinclair 0423 778774.

One to have a look at this weekend – but be quick!

28/15-17 Cochrane Street Brighton. Passed in on the weekend on a vendor bid of $420,000, with a reserve price of $450,000. Great location just off Bay Street, well maintained block and the agent said its rental potential is $430.00 per week.

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