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.