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					BAYSIDE & BEYOND
                      Age Marketing Award
   Finalist & Winner – Copywriting – Best Display
              & Best Line Ad 2005/2006
                                                                                                                                                          Newsletter Issue 2, 2007

melbourne’s property
             poised to slingshot                                                                                                                              Local View
                                                                                                                                                         SIZZLING      conditions   are   being
                  According to figures                                      beginning to rebound.                                                        experienced in our business throughout
                  from the Real Estate                                                                                                                   Port Philip and beyond with demand for
                                                                            During February, auction clearance
                  Institute of Victoria,                                                                                                                 both rental properties and sales
                                                                            rates were more than 80 per cent;
                                                                                                                                                         outstripping supply.
                  from 1980 to 2000,                                        substantially higher than the 60 to 65
                  Melbourne’s residential                                                                                                                Chisholm and Gamon has achieved a
                                                                            per cent in the same month last year. If
                  property market rose by                                                                                                                number of notable record highs in sales
                                                                            this trend continues, it is only a matter
                                                                                                                                                         and property management… here’s just a
Torsten Kasper    an average of 9.4 per                                     of    time    before    the     increased
Managing Director                                                                                                                                        few:
                  cent per annum. To test                                   competition fuels price rises.
 this over a more useful time frame (10                                                                                                                  • The benchmark of $400,000 for a two
                                                                            Baby boomers downsizing from large                                           bedroom 70’s apartment has been
 years, which is usually the maximum
                                                                            family homes, and generation Y DINKS                                         eclipsed with a flurry of record sales
 length of a property cycle) we looked at
                                                                            (double income/no kids) focusing on                                          including the outstanding sales results
 several 10-year periods between 1980
                                                                            establishing careers and sowing the                                          achieved at Vautier, Tennyson and Spray
 and 2006. No matter which time frame,                                                                                                                   Streets to name just a few.
                                                                            seeds of financial security before they
 the average annual growth was always
                                                                            start their families are fueling this                                        • We have achieved a record house sale
 7 to 10 per cent. Even in the period 1985
                                                                            activity.                                                                    for a 2 bedroom and study reaching over
 to 1995, during the “recession we had                                                                                                                   $1.1 million – the highest price per metre
 to have”, the average growth for                                           The intriguing thing about the
                                                                                                                                                         square for residential land in the City of
 Melbourne residential property was still                                   increased competition is that, on the
                                                                                                                                                         Glen Eira.
 7 per cent per year. In the decade from                                    demand side, the Melbourne market is
                                                                                                                                                         • Multiple bench mark results in the City
 1996 to 2006, the market’s average                                         still only flying at half-mast. While
                                                                                                                                                         of Port Phillip.
 annual increase was 8.7 per cent.                                          second and subsequent home buyers
                                                                            are very active, investors are yet to                                        • Rental vacancy rate hovering at less
If the residential property market is to                                                                                                                 than 1%.
                                                                            come back into the fray on a large scale.
remain      true    to    its historical                                                                                                                 • Premium Rental market finding new
                                                                            Once these investors begin to move,
performance and retain its 7 to 10 per                                                                                                                   levels regularly.
                                                                            the market will return to full strength
cent annual increase for the 10 years                                                                                                                    Call Bayside’s most successful winning
                                                                            and the level of competition will move
from 2003 to 2013 — and we don’t see                                                                                                                     team for all your property needs.
                                                                            up another gear.
any reason why it wouldn’t —                                                                                                                             You’ll enjoy the difference.
compound growth over the next six                                           In this scenario, it’s quite feasible that
years must beat the 10-year average by                                      average annual growth of 5 to 10 per
4 to 7 per cent per year.                                                   cent will come to pass; generating long-
                                                                            anticipated equity for investors and
Can the market deliver? We                                                  complementing other asset classes in
believe it can.                                                             their portfolio.
In historical terms, four years is a                                        Adapted from an article by Mark Armstrong
relatively long layoff time for                                             and David Johnston, directors of Property
                                                                            Planning Australia.
Melbourne’s residential market. We are                                      www.propertyplanning.com.au
now seeing signs the market has been                                        Original article published in The Age.
held down as far as it can go, and is                                       Copyright The Age www.theage.com.au                                           Record sale – 58 Milton Street, Elwood.


                                                                 Chisholm & Gamon Property Pty Ltd
                                                                       9 0 O r m o n d R o a d E lwo o d 3 1 8 4
                                                              Telephone 03 9531 1245 Facsimile 03 9531 3748
                                                                    325 Bay Street Po r t Melbourne 3207
                                                                 Telephone 9646 4444 Facsimile 9646 3311
                                                                     w w w. c h i s h o l m g a m o n . c o m . a u
         Elwood Office                                                                                                                                                                Port Melbourne Office
Our members, directors, offices and employees do not give any warranty as to the accuracy, reliability or completeness of any information provided in this newsletter and shall not be liable for any loss or damage suffered as a
result of anyone relying on information provided in this newsletter. We recommend that you seek advice from your own financial, taxation and legal advisors before entering into financial or other transaction.
                                                                ENJOY THE DIFFERENCE!
                                                                Sell your property with Chisholm & Gamon
                                                                     today & enjoy Bayside’s best results.




                                                          Torsten Kasper      Sam Gamon           Brett Gamon        Christine Nicholson
                                                          0428 454 181        0425 702 574        0419 505 634       0413 599 770




                    our playground
                                                          Nicholas Jones      Shane Banfield       Amanda Bury        Corinne Scott
                                                          0421 839 425        0417 157 398        0400 067 801       0417 541 111


                                                            CONTACT THE SALES TEAM AT OUR OFFICES
                                                              IN ELWOOD AND PORT MELBOURNE
                                                              TO DISCUSS YOUR PROPERTY NEEDS.


owner builder – a license to do your head in?
On the surface, running your own                                                             overwhelming. If you are in a full time
building project seems to be the path to                                                     job and are thinking about allocating
savings and personal satisfaction but                                                        time during the day and weekends you
there are numerous pitfalls for new                                                          should think again. Sourcing trades
players.                                                                                     people, checking work, discussing
Finding reliable, trustworthy and skilled                                                    problems, buying materials, planning
trades people is vital to the success of                                                     the job and stages, watching budgets
the project. Be sure to understand that                                                      etc all takes large amounts of time. If
to a tradesperson, your project, (while                                                      you are not flexible in your Monday to
important to you), represents a one-off                                                      Friday time… think carefully about
job for them. If you are a builder and a                                                     becoming an owner builder.
source of many jobs over the year, the                                                       Do you have the experience? – While
tradesperson may have a vested interest                                                      you don’t have to be a builder to
                                            Are you up to it?
in your project… if not, your job can be                                                     manage a building project, being an
seen as a windfall project that can be      it doesn’t allow for set payments to be          owner builder requires a fairly good
slotted in between other jobs.              levied against completion levels… It is          understanding of the building process…
Unless you personally know the              also wise to pay to a level that is behind       without it, you could be setting yourself
tradesperson, or have been given a          the completion level… as harsh as this           up for a fall. Seriously, relationships
glowing referral, the best advice is to     sounds it offers some security for               have been torn apart, depression and
speak to a number of the tradesperson’s     getting the job done well and on time.           break downs have been the result of
clients. Obtain a written quote             Insurance – The owner builder must               building projects.
(contract) for the work to be done and      warranty the work for a period of 6              Savings – while most owner builders
most importantly set a completion           years. This matters little if you intend to      hope to save money on the project, the
time… setting a penalty for the builder     reside in the property for that period           result is often to save nothing at all and
not completing the job on time is vital     but if you sell in that period you have to       in many cases, due to poor knowledge
(liquidated damages).                       warranty the workmanship up to the               and uncaring workers, more costly.
Payment – Never agree to pay by the         remaining 6 years.                               Our advice is to think very hard about
hour… get three quotes. Agreeing to         Have you the time? – The amount of               taking on major projects, as often, an
paying by the hour is just an open          time required to successfully manage a           experienced builder will save your sanity
invitation for the budget to blow out as    building project can be enormous and             and sometimes your money.

				
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