Melbourne suburbs where house prices rose the most and least since 2010

Post to Facebook on 29/12/2019 9:45 AM
Commenting on “Melbourne suburbs where house prices rose the most and least since 2010”

I explained before the many reasons behind the increase and decrease in median price in a suburb during a given period.

Decrease

1. During a period of hype, buyers pushed up the prices of properties not worth the actual valuation;
2. Suburbs not well looked after by owners, dangerous cladding, or residents;
3. Bad publicity ranging from dumps, Council corruption, sea level rising;
4. Closure of certain facilities like schools which formerly attracted buyers to the area;
5. Over supply and saturation of market by new constructions with support of new investors or population

Increase

1. Land released, which subsequently with buildings constructed. Improvement on the land is never reflected;
2. New areas with homers spent money on landscaping and internal improvement. Similar to 1;
3. Older areas with houses due for demolition, and subdivision of the land into two or more pieces. The final cost of each property will be more than the initial dwelling;
4. Construction of new and expanded infrastructure and shopping centres;
5. Population growth combined with good facilities and infrastructure;
6. Smart marketing by developers to attract new comers to invest ”blindly”

Can you add additional reasons for the increase and decrease? Your contribution is welcomed.

After all that being said, which is a better option to invest in?

Thank you for reading.

Why gas cooking and hot water systems could be on the way out of Australian houses

Post to Facebook on 29/12/2019 9:45 AM
Commenting on “Why gas cooking and hot water systems could be on the way out of Australian houses”

I don't agree that gas should be phased out in favour of electricity for cooking, and water or space heating.

It may be alright for a small dwelling that does not require ducted heating and people do not use a round-bottom wok for Chinese cooking.

Let me post the senario during electricity power blackout.

I can use my gas cooktop to light my candles, because as a non-smoker I normally do not stock matches in the house, even if I do, it is difficult to find the matches easily in the dark.

Having the candle lit, I can cook my yummy dinner or in the worst case rely on instant noodles. I can still enjoy my warm shower, and relax over a cup of coffee in a rather romantic candle lit room,

Many homes have reversed cycle air conditioners installed in multiple rooms and living areas. The running cost can be very high if several people in the house use separate locations at the same time. Ducted gas heating is more economical to run in winter than turning on multiple air conditioners.

Having gas connected incurs supply charge, and that must be taken into consideration.

Thank you for reading.

Visit Open-for-inspection - Blog 4

Post to Facebook on 17/12/2019 2:34 AM
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Blog #4

A few months ago, I spent a Saturday inspecting five properties but only blogged on three of them?

One of the five is still in the market not sold. Although it is within the Wheelers Hill Golden Mile, it still does not attract a buyer to pay the asking price.

This property is considered on the higher price range, and therefore it is important to recognise the number of buyers will be small, and in fact, these are the more fussy and picky ones.

House hunters in that bracket can work the sum that to purchase a block of land or demolish an existing dwelling to build on the land will probably cost just as much. The difference is time, and possible the stress of building house. The pros are having a new house, built to one’s design.

The house is well built, bright and clean. Although it is a two-storey building, it appears to be single storey at street level. The land slopes downward, and the lower ground floor is completely invisible from the street, and therefore, it lacks that majestic look.

The house lacks a wow factor. There is too much empty space, and certain furniture requires rearrangement. A professional interior decorator can help fix most of the problems.

One must keep in mind about the presentation of the property when it is for sale.

When you own and live in the house, it is all about “me, me, me”. That is perfectly alright. You can ignore the cracks, the weeds in the “garden”, empty unused space in various rooms, furniture arranged in the wring spots, etc. However, when you put the house in the market, the property is to attract the buyers, “them, them, them”!

The design of the house cannot be modified easily, and the outlay can be far too much to compensate any gain. While the structure is not to be touched, cosmetic changes can work wonders. It is about perception, understanding the needs of potential buyers.

Thank you for reading.

Why selling your property is a bit like online dating

Post to Facebook on 16/12/2019 11:46 PM
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Why wait until you are selling your house? Do it up slowly, keep it like what a display looks like, and maintain the garden regularly.

It is not easy to keep your house tidy and clean, and free from clutter all the time, but how about do it occasionally to enjoy it, and tell yourself, “ah, it’s all worthwhile working so hard to have our own home, and relax in our castle”.

Isn’t it funny that you can find time before Christmas, running around to shop and prepare for the big celebration, which probably lasts for maybe just 48 hours, and yet you make no effort to do likewise to celebrate days of happy moments for the rest of over 360days?

Probably this is only time when other family members including the young ones will chip in to help, like setting up the artificial Christmas tree with bells and whistles, and these days, with blinking LED lights, greetings cards on top of the mantle piece over the artificial fire place or on top of the low cupboard, place mats with Christmas theme laid on the dining table, etc.

It used to cost a lot to decorate the house, but there are so many affordable nice things to freshen up your home regularly. I know I have been a Scrooge asking you to save, save and save for rainy days, or pay off your mortgage, but if you are disciplined enough, do put aside some slack for some cosmetic facelift to make you more proud of your achievement.

By the way, this is not the time to spend on decorations, but until the big days are over, when stores start to have sales to offload the excess stock.

Even though I am not a religious believer, I do celebrate it with proper Christmas feasts. Well, I always enjoy my food.

Thank you for reading.

Melbourne auctions: Homes smash reserves by six figures on busy summer Saturday

Post to Facebook on 29/12/2019 9:45 AM
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”

When I first look at the address of this auction property, a house with two consecutie numbers 14-16, I thought it was reasonable to fetch $1.226 million, since it sat on two blocks of land presumbly each was of standard block size. Until I read the article a bit further, I realised the land was only 415 sq metres.

I am very crossed with some of these downsizers, who probably have no idea what they are buying. They distorted the market, and deprived firsthome buyers a chance to get into the market.

Maybe this buyer knows something I don't, because the combined block can't be subdivided, and it will be an architectural eyesore if the existing building is demolished and a double storey dwelling built on it.

Since I do not know the age of the buyer, I can only speculate that it is purchased to park their money. At present, the primary residence is taken into consideration for asset test when one applies for pension. One becomes penniless if all the money is poured into a property.

I am speechless!

Thank you for reading.

The inner Melbourne suburbs at growing risk of coastal flooding linked to climate change

Post to Facebook on 25/12/2019 2:52 PM
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I did warn about living or investing near coastal area. Sea or ocean views may be beautiful to look at, but how often do you sit around to enjoy it, especially if you're still working or has a family to run. After all a home is generally not a holiday resort.

This is not dissimilar to live close to the bush in heavily forested regional towns, or at the foothill of a volcano. The recent bush fire, and White Island volcanic eruption MUST serve as a warning for those who are stubborn and live dangerously.

The forces of nature is too great to fight, and why live in fear, or ignore the inevitable occurance of natural disaster.

If you really want to enjoy the ocean view occasionally, just spend some money on holiday resort with ocean view, or take a cruise. I believe the amount of money you save on house insurance when news gets worse about rising sea level or water, you can pay for these leisure expenses.

Think before you invest!

Thank you for reading.

When is renovating a good idea and when is it foolish overcapitalising?

Post to Facebook on 25/12/2019 2:52 PM
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I am biased. I prefer my advice blogged previously. When selling your house, do the minimum, or just cosmetic changes or touch-up.

I update my house regularly so that I do not fork out large sum at one time. Major renovation is for my enjoyment, NOT for the future owners.

What's the point of splashing money, and months of torture in dust-fill room breathe in chemical paint odour and then kiss goodbye to it, leaving that very physical and emotional painfully memories?

Thank you for reading.

Trends Darren Palmer doesn’t want to see in 2020

Post to Facebook on 1/12/2019 9:56 PM
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I am a trend setter rather than a trend follower. I don’t care what others think about my house, because it is my sanctuary and castle, and I’m the decider of how it should look.

No, I have not finished what I wanted to say. I do that if I am living in it, but when the time comes that I am ready to sell, I WILL make sure I update it according to the trend or predicted trend.

It is always a good idea to paint the interior walls white, not just because it is a neutral colour for most people, but also makes any void and even crowded space look bigger and brighter.

Should you decide to add colours, hang on the walls with inexpensive art reproduction, painting of unknown artists or posters. You may have decorative ornaments put on top of some low shelves to break the monotony and clinically sterile feel room.

I do not mind a stunning highlight wall, not in the bedroom, but in the most eye-catching spot, like the wall facing the house entrance. You only do this with bold colour of the current trend, and when you are selling the house.

For goodness sake, don’t put too many photos in the house. Surely you don’t need these to remind you of the love ones, not to mention even when you suffer from dementia, these photos have little effect to reduce dementia or improve the condition. The photo frames only gather dust, an additional chore on your cleaning list.

What’s wrong with your out-dated HiFi sets and club lounge in your entertainment room? Do you think that Roman blind is more practical the Venetian blind? Oh yes, I still have my Sansui, JVC, Kenwood HiFi, the very comfortable lounge sofa and Venetian blinds.

Whether you are still living in the house or about to sell it, for goodness sake, don’t put everything on the kitchen bench. That kind of untidiness is totally uncalled for. It may only take two minutes to put all the gadgets or cereal containers/boxes away. How do you clean the bench if every cm is covered?

If you have a low coffee table, keep the top empty or even put some coffee table books on like how a display home displays them. A vase of fresh or dried flowers can be a pleasant sight.

You can pick up some good second chairs from op-shops at very low prices, but for cupboards, I suggest white laminated ready-to-assemble from Bunnings, Aldi or even Kmart are preferred. It is always handy to put things away in cupboards.

A word of warning - don’t go crazy spending unnecessary money in your new born child’s room. It is more about you rather than the child that you spend the money on. Does a baby know what to expect after it comes out of the dark birth canal? After all, once you do that, when are you going to update the room, and if you don’t, how would the child respond?

Thank you for reading.

Labour of love renovation project smashes reserve at Kensington auction

Post to Facebook on 1/12/2019 12:17 PM
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Another valuable advice not to miss!

Great job and well done to the former owner of the house, but I feel sorry for the winning bidder and the new owner.

I have been remaining you that a house is just a building on a block of land, and the when you buy a house to live in, you must consider the streetscape including the houses around the neighbourhood.

This week, I spend hours in my garden, weeding, trimming, reshaping my sculptured trees, and “beautifying” it. Beautiful flowers with weeds grown around them do not tickle my fancy, and the weeds must be removed.

Unfortunately, if the best house in the street, with great looking façade and extensive renovation within, is among run down properties does not excite me. Unlike weeds which I can just get rid of, it is unlikely you can influence your neighbours to spend money to do up the house, and including mowing the nature strips, or “beautify” the patch just outside the house.

When you look at the advertisement of a property in the internet, you can locate the Statement of Information (SOI) stating the sale prices of comparable properties around the advertised property. My advice is that not to take this as gospel.

Using this property in discussion for example, it is so much over the reserved price, and in fact, it is likely well over the median price of the area. The reason being it has been renovated extensively.

Can you get what I am leading you to? If you can't, then you are definitely a victim of statistics. You WILL pay too much even for a run down property because the SOI information is highly distorted. It may cost you an arm and a leg to bring the property up to scratch!

Be wise, don't let emotion do the thinking and buying!

Thank you for reading.

Homes Designed and Arranged for Dementia Suffers

Post to Facebook on 27/11/2019 2:07 AM
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This is another valuable blog to read

No, I am not suffering from dementia, yet. I have not forgotten what this group is for. On the contrary, I remember I wrote recently that I would link blogs from my other groups or pages which are relevant and useful.

One of my reasons to blog often, and on many subjects is to keep my mind active. First of all, I need to rely on my stored knowledge, plus new one just read; I have to digest the content, and package all these into a blog.

Since you are still reading up to this point is that you are not yet demented, at least not to any grave extent. You know where to locate the group, and the blog, either intentionally or via FB notification.

Do you know anyone you love suffer from this condition?

So what has dementia got to do with real estate? Many people enjoy declutering and throw out a lot of "memories". Dementia sufferers may not remember current events taken place recently, but their long term memory is deep inside the brain. These seemingly useless items can be treasure and comfort for the sufferers. You will feel so good to witness the smile of the sufferers when they see things they loved once upon a timr, and they may even tell you the stories taken place years ago.

Some nursing homes are renovating their premises to look like back to bygone era. I critise on several occasions about aged care homes marketing department target at the offsprings of the potential residents instead of the users. The remote control flat screen television is hardly use, WiFi in room, modern furniture, mirror doors, etc. Many people ready to live in these places have never seen or used these before and do not have much benefit to the residents.

When you renovate or redecorate your house for someone with onset of dementia, try to place items familiar to them "back then" in the room. If can find and buy a rocking chair similar to one they used to sit on, you are a real champ.

You may not like a dim room, but many older people do, partly they do not want to see as much and partly they are sensitive to bright light. If they decide to have a dim room, please let them have it, and you may even choose thicker curtain material or have suitable blackout material.

Many people put a lot of photos in the suffeters' room hoping that they can recall who those images in the photo are, I doubt it will be successful. The sufferer do not have the visual and cognitive cabilities to recognise and analyse the images.

On the contrary, play music or songs of yesyetyears through speakers, either hardwired, vid blue tooth or just from a tablet.

A normal person can navigate easily in a house, but for Dementia sufferers, they may not be able to find their room. Any lit-up sign can attract their attention to lead them to the room.

A non-government funded apartment or room in an aged care home is expensive, and this is something you must keep in mind, especially you are becoming a senior.

Thank you for reading.

Gone for $6.25m, Greyhound site sale sparks debate on 'intangible heritage'

Post to Facebook on 24/11/2019 12:44 AM
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When I travel to some overseas countries, especially visiting the capital cities, the tours are likely to include walking through the Old Towns, where the old building and heritage sites are preserved.

Where is Melbourne Old Town? I don’t think there is one. It is a shame that we have nothing to show to our future generations and overseas visitors about our past.

Rising listing numbers hint at bumper year for property sales in 2020

Post to Facebook on 24/11/2019 12:08 AM
Commenting on “Rising listing numbers hint at bumper year for property sales in 2020”

In recent months, many gurus have been promoting their get rich quick programs in real estate and other businesses, and I responded to several of them. Some ignore me while others just block me.

I keep wondering why those who claim to have earned mega millions want to give away their secrets in exchange for the blood, sweat and tears money of the struggling souls. They don’t need everyone to be suckers of the get rich schemes; a couple of hundreds on each occasion during the campaign period will be suffice to top up their bank account.

Domain and competitor realestate.com.au have been hyping the rise of the real estate market, but the auction results have been telling a different story, going up and down like a yo-yo. Last week saw a rise to 75%, but drops back to 70% this Saturday.

It is undeniable that listings are hard to comeby. Unfortunately, not only both companies, but also many gurus and industry experts have been telling their readers or followers that the number of listings is increasing which points to a bumper 2020. Can that be true or is it an over simplistic view of market movement?

Consumer confidence is still not there to support that view, and the scary news about global recession with Australia being one of the forerunners to be hit hard. It is important to remember what I have been telling you - not only must you reduce expenses, but also more importantly increase your income.

If you are saving to buy a property say $600,000, you need to save up at least 20% before your bank or money lender will top up the rest. That 20% is equal to $120,000. Many people, including readers in group, do not spend enough time or no at all researching for bank interest rate on deposit. They whinge about the low interest received from their bank, and yet do nothing.

One bank is offering introductory rate of 2.35% for 4 months for new depositors. This is bonus plus standard rate variable rate. I believe this is at least 1.5% better than what many of you are getting. The extra money on 1.5% variation over 4 months is extra $600. Just for about an hour of dropping in to the bank or on the computer, you earn another $600.

There are other ways to bring a little extra if you recognise the power of skill transfer and marketing. I have been mentoring some job seekers to learn about these.

I have blogged about marketing before. Doing it right, one can get a pay rise even during difficult economic time, or increase sales. If you work on a commission basis, increase sales means increase income.

However, if your are in transition, a nice way to say unemployed, good marketing skill may give you the edge to get the next job.

Please also remember, Knowledge is Power, and you must spend your spare time to read and improve yourself. I can do it, so can you.

Thank you for reading.

Record household debt as RBA knuckles down to further rate cuts

Post to Facebook on 20/11/2019 2:31 PM
Commenting on “Record household debt as RBA knuckles down to further rate cuts”

Posted to The Age (19/11/2019) on 20/11/2019
Commenting on "Record household debt as RBA knuckles down to further rate cuts"
https://www.smh.com.au/politics/federal/record-household-debt-as-rba-knuckles-down-to-further-rate-cuts-20191119-p53bzj.html

It is a nut case to the nth degree. For months I have commented and blogged that consumer confidence would not improve with rate cut, and the whole real estate market would continue to be topsy-turvy.

The low interest rate is as bad as the seduction of using credit card. Many people who really can't afford a loan to purchase real estate ended up with debt over their dead bodies. It is a misconception and further cut in interest rate MUST stop. The Royal Commission has uncovered some unethical practices of the financial sector, but I hope we do not need a Royal Commission or Consumer Affairs to tell us that RBA is committing social injustice leading to much untold financial hardship for many Australians.

I would welcome RBA release some positive news regarding countries having zero or near zero interest rate, but I doubt it can.

The traditional fiscal and monetary models seem to be archaic in present day. Definition of employment is a joke, the so called coffee culture proudly celebrated by Melbournians is nothing more than a fad. Although cafes are replacing the empty traditional retail stores, the culture will die if the economy gets worse and become truly stagnant. One must be mindful that it is no longer science fiction that robots are taking jobs away!

Thank you for reading.

Six reasons why living in a small house is better for you

Post to Facebook on 20/11/2019 1:15 PM
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Many reasons stated in the article are very valid. However, for me to choose a small house at the start was nothing more than economics.

The loan repayment was much less and did reduce the mortgage stress. Any spare money was saved for rainy days, or a little "luxury" of dining out once in a blue moon.

Especially these days, the biggest expenses come from utility bills. Savings in heating and cooling a small volume of space can help paying extra towards mortgage. Based on compound interest calculation, that can mean many years of early loan retirement.

Now you understand why I recommend to buy a small house for your first home, unless you can afford a bigger budget and have no problem with finance.

I doubt most people drop dead at 50 years old, so keep the extra savings to enjoy your senior age!

Thank you for reading.

Beware of Exaggeratted Investment Claim

Post to Facebook on 20/11/2019 12:29 AM
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I can never accept any BS like the following which was posted by Knowledge Source published in FB on 14 November 2019.

"This new way of investing in property leaves Australian banks dumbfounded...

Because, with this new way, there’s no need to take a loan to invest in properties.

There's no need to pay a deposit.

In fact, there’s no need to even own the property.

And yet, with this amazing way of investing I made over $100 Million.

Even people like Robert Kiyosaki use this method to create their wealth.

And there are so many deals out there in the market… That I can’t handle them all by myself.

That’s why I’m inviting you to partner with me.

This partnership helped thousands of Aussies create wealth, quit 9-5, have more time with their families and enjoy an overall better life.

Even when they were deep in debt.

Sign up for my Free Webcast and discover how profitable partnering with me can be for you.

For more details click the ‘Book Now’ button below now."

I commented as follows:

If you have made $100 million already, how many more millions are you going to make? If this is not true, your promotion is deceptive and misleading.

In the path of disaster: The big causes of bushfires that most of us are missing

Post to Facebook on 17/11/2019 10:36 AM
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Posted to The Age (15/11/2019) on 17/11/2019
Commenting on “In the path of disaster: the big cause of bushfires that most of us are missing”
https://www.theage.com.au/national/in-the-path-of-disaster-the-big-causes-of-bushfires-that-most-of-us-are-missing-20191115-p53b0b.html

Is it innocence or arrogance, or is it stupidity or stubbornness that people keep thinking two wrongs will make one right?

This is not the only example that people ignoring the danger of nature, that is they continue to build houses near forested areas prone to fire. Many still choose to live close to flood prone water side.

Despite many shorelines being eroded and rising water level due to worsening of “Climate Change”, people are still paying mega millions to stay near water, and development of high rise buildings and high density suburbs are still being built without giving any thought of future disaster.

Like what an advertisement of a cosmetic company once said, “it does not happen overnight, but it will happen one day”.

Thank you for reading

The Gold Coast suburbs posting double-digit price growth

Post to Facebook on13/11/2019 12:43 AM
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What is double-digit growth today, can go south to negative in very near future.

I blogged on several occasions about shoreline being eroded, and even the most beautiful beaches, no matter where in Australia, will suffer the same fate sooner than later.

The latest fierce fires in NSW and Queensland have definitely ”ignited” debates about global warming and its disastrous effect. It has also been blamed for beach or shoreline erosion. If climate activists continue to make loud noises, and start showing aerial photos of the shoreline erosion, investors can kiss goodbye to their double-digit growth.

If you have invested in properties near the beach, make sure you have your ears on the ground, and be mindful that the sharp rise of such investment can also mean sharp tumble. Do make sure to offload the property when the property reaches a cutoff profit point.

Thank you for reading.

Why one Southbank resident keeps baseball bat near his door

Post to Facebook on 11/11/2019 9:01 AM
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I was too tired to comment on the news article in The Age. I have a lot to say about this, unfortunately, not in the best light of apartment living.

Just a couple of days ago, I blogged about the subject of apartment style accommodation for retirement villages / nursing homes, and argued why it was fatality in the waiting.

Many years ago, I stayed at my friends‘ apartment when we were visiting Vancouver. Their next door neighbours‘ apartment was burglared and all the valuables were stolen. The locks were damaged and therefore it was considered force entry.

Many people live in apartments thinking all they need is to lock up the place and go on travelling. Unfortunately, it is much easy to burglar an apartment than a normal dwelling, because most apartment dwellers have no idea who their neighbours are, or cannot be bothered to find out.

Unlike many apartments in Hong Kong, where every front door of the apartment is like a Fort Knox, with stainless steel door and with multiple locks, apartments in Melbourne are nothing like that.

Remember the days when many male Hong Kongers travelled between Hong Kong and nearby China citities like Shenzhen to on “business”? China was not “open” to the world then. Shenzhen became a place for the Hong Kongers to keep their mistresses and earned the title the “Mistress Village”.

Then Glen Waverley had its first high riever apartment smack bang in the middle of Monash City CBD. I heard that some of the apartments were used to house mistresses by the locals and overseas residents. Whether these apartments were bought outright or rented, I did not have the information.

At one stage, a motel nearby had a sign board displaying a promotion that patrons could rent the motel by the hour. Well, well, well, why do people use the motel for short accommodation, except for quickies?

I was shocked to see such promotion, because I thought this could only happen in cities in SE Asian countries.

It dawned me that why could not apartments be used for similar “business”? The next question is, could this possibly be controlled by some illegal rackets?

It is public knowledge, if one pays enough attention to news, some apartments in Dockland were leased to a lead tenant, who then subleases to many others. It was reported some “time-share” the apartment, as many as ten people taking shift to use the apartment.

A few years ago, a local newspaper reporter rang me because she heard from the grapevine unfavourable things happening about apartment living, and an acquaintance put her on to me. I could only tell her what I heard and knew; obviously, I did hot have first hand experience.

Gaining entry to an apartment is not as difficult as one thinks. Many apartments do not require special smart card to activate the door or lift, and all is required to wait for someone to enter the front door, and one may pretend to be in a hurry and ask that person to hold the door or lift. The best is to make sure that one’s hands are holding a lot of things and could not open the door.

With “high” vacancy rate of apartments, and Airbnb gaining popular, It is not surprising that owning an apartment even in the top floor Penthouse cannot be guaranteed quiet enjoyment, and feeling secure. One can be robbed, or even “kidnaped” within the building.

Now you understand why I am biased about apartment as an investment, or own accommodation.

Thank you for reading.

Redefining luxury retirement living on the Gold Coast

Post to Facebook on 10/11/2019 11:03 AM
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Many retirement “village”s and aged care homes building are multi-storey apartment style accommodation. Due the shortage of land resulting in high prices, it is no longer an option to build single storey homes.

While this is economically a wise decision, I can foresee future fire will lead to many casualties and a number will be fatal, with the aged and frail will be burnt to death.

I volunteer at several aged care homes for over 20 years, including the those with a mixture of independent, low care to high care residents.

One morning, there was a false alarm at one of the sites. Fortunately, it was not a real fire, and it was a single storey building. Many could walk with their walkers very slowly, but some could not walke out of the building unassisted.

Can you imagine if there is a real fire at a multi-storey aged care / retirement village full of aged residents, when lifts are not to be used, and the aged residents must vacate the building?

Unlike most healthy and energetic young people, many residents need assistance to move about, and take much longer to vacate the building, like what I witnessed first hand on site.

I do believe the government should take that into consideration now and review the regulations before casualties occur, and another huge sum spent on a Royal Commission.

It is great if all aged care / homes especially the multi-storey ones have at least one practice run now, and learn from the outcome about how quickly the residents can get to the safe assembly areas.

Money saved now may not save life!

Thank you for reading

Australian teachers work longer hours than those in most OECD countries

Post to Facebook on 9/11/2019 4:09 AM
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Does a teacher working harder make students smarter? How about if I ask a slightly different question - does a teacher working smarter make students smarter, or even work harder?

I believe many readers in this group can recall the days when they attended schooling, say from primary to secondary. Most had preference liking certain subjects, but not the rest. You might even hate them to say the least.

A student dislike or hate a particular subject for many reasons:

• boring and dry content
• can’t understand the content
• teacher lacks the knowledge or skill to teach
• teacher can’t manage the class
• teacher can’t explain or illustrate using non-verbal method

I am making every effort to develop new ways to get students interested in different subjects. What this also means is that I have to learn to get myself interested to subjects I may not be keen in before.


Thank you for reading.

'About as bad as it can get': REA boss grapples with 'worst market' for property in decades

Post to Facebook on 8/11/2019 9:28 PM
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Posted to The Age (9/11/2019) on 9/11/2019
Commenting on”'About as bad as it can get': REA boss grapples with 'worst market' for property in decades”
https://www.theage.com.au/business/companies/about-as-bad-as-it-can-get-rea-boss-bemoans-worst-market-for-property-in-decades-20191108-p538ow.html

What a load of bull crap! I have never heard any words of appreciation from anyone, including the REA boss Owen Wilson, when the real estate industry boomed. During those good times, not much marketing or selling skills were required by the so called real estate professionals, and many real estate agent representatives were no difference from the waiters in a Chinese restaurants, taking orders from buyers who were in a state of FOMO.

Lots of commission lined the pockets of these “order takers”, who drove flashy BMW, Audi, Mercedes, and top end of the Japanese cars. When the downturn descended, they became lost completely because they had no idea how to communicate with the potential vendors, who were reluctant to put their properties in the market.

In fact those who could hardly speak proper English found it difficult to get round listing properties from the English speaking owners, and therefore have not enough to sell to those non-English buyers who still have deep pockets.

When the real estate industry boomed causing price hike, it was the government’s fault. When the industry goes belly up, guess who is to be blamed? The government, who else!

Thank you for reading.

Another must read post - Life & Investment Adivce

Post to Facebook on 8/11/2019 9:12 AM
Commenting on “Another must read post - Life & Investment Adivce”

Another must read post

I have discussed and “issued” warnings for those at the age of 40s and holding upper-middle and senior positions to be careful with and cautious about their employment.

At that age, they are likely to deal with and manage people rather than projects or tasks. They have staff ”below” them to keep in check, and in the meantime keep higher management happy by meeting KPI’s, targets, budgets, and timeline. Office politics requires soft skill, hard skill and diplomatic skill.

Unlike handling projects or tasks that require special technical or hard skills which cannot be replaced easily, professional managers are abundant, and it is matter of paying a higher ”reward” plus perks to lure them to replace those under achievers.

I was young before, and enjoyed the glory to be at the top during my early career life. I learnt and realised very quickly that no one was really indispensable in a company.

When you are about to hand in your resignation if you think you have enough with the company, think twice; the companies outside can be worse than the present’s. There are people who deal with their desire to depart in a more philosophical manner, by justifying that If they don’t try, they never know!

Very soon, the company you have contributed your effort for years, will find someone to sit in your chair.

What’s my point talking about employment? Unless you have loads of inheritance from parents or rich uncles, or lucky enough to win the Tattslotto 1st division plus Jackpot, you derive your income from turning up to work. In the real world, the more you earn, the more you get ambitious with your expense, and investment, and hence you will experience more stress.

I am a problem solver and a careful investor, and never put my eggs in one basket. I spread my financial risks, and so far I am very happy with what my wife and I have achieved.

Not that I am a sour grape, I always advise people not to start off with a high price property, over stretching their budget. My previous primary residences including the present one took less than 10 years to pay off.

A lot of people are so fixed in their mindset that and become a slave to the banks or lenders of their properties. It is always nice when the bank manager asks you to collect the Title that has been in their safe during the past many years.

I shall be using we and our from hereafter when I refer to investment in joint name with my wife.

We started with a small house that required some fixing. We learnt about renovation hands-on, pros and cons, and the ins and outs so that we would not fall for bigger mistakes that might cause an arm and a leg. We set our target to pay off the loan say in 7 to 10 years, and worked towards the goal, increasing ”our” incoming working extra jobs, and cut expenses to bare minimum.

It is important not to let emotion push you into investing in a property beyond your budget.

In order to minimise our risk, we invest in multiple low-price properties instead of a single expensive one. The low-price properties became positively geared in very short time, which means the tenants are paying the loan. That is the preferred way to earn a passive income.

If you have a better or preferred way to invest, please share with us.

Thank you for reading.

Divorce-led property sales on the rise amid recent downturn, experts say

Post to Facebook on 8/11/2019 8:45 AM
Commenting on “Divorce-led property sales on the rise amid recent downturn, experts say”

I have blogged before why some people have to put their properties in the market. Every time an owner or joint owners sell one, they need to buy another one, unless they move to a nursing home or die.

Unfortunately, for divorce cases, the situation of ownership can be much worse than described in the article. If it is due to financial trouble that results in undue stress, it ends up no one partner will be able to own another house, and creating the need for both to look for rental properties, or both end up without owning the property.

In my other sites or groups, I blog often about the sadness behind the underemployment and unemployment rates. These rates are not just numbers. They are also measure of unhappiness, mental well-being, marriage break down and family breakup in the society.

If you and your spouse start to quarrel over money matter related to mortgage repayment, call for time-out and do sit down and work things out together.

When you visit an open-for-inspection, you can check the content of the wardrobe against the ownership of the property. If the names are in joint ownership, but the wardrobes have clothing of one gender only, it is very likely the couple have been separated.

Since very early days, I do not invest in a property, put on the market due to a divorce case, unless I was kept in the dark. It is just a matter of my personal reason.

Thank you for reading.

The auction strategies on the rise as bidding action heats up

Post to Facebook on 5/11/2019 2:10 PM
Commenting on “The auction strategies on the rise as bidding action heats up”

I do not quite agree with the linked article on how to bid at an auction and some content. Before I share my views, how about you give it a shot.

Don't wait for someone to comment, because sooner or later, you may be left alone to deal with tougher situations.

Thank you for reading.

Melbourne auction market solid over long weekend

Post to Facebook on 4/11/2019 8:12 AM
Commenting on “
Melbourne auction market solid over long weekend
”

This is what I meant by conflicting auction results reported or perceived by the experts. Reading through the attached article, I find the following paragraphs rather interesting:

“Chief economist at AMP Capital Shane Oliver said Melbourne’s market was still looking “pretty solid” for the first weekend in November.

“Results do seem to have slowed from September,” Dr Oliver said.”

Does he mean the slowing started in October? October clearance rates had been over 70-75% in preliminary results reported in Domain, better than previous quarter. I wonder what the final rates were in the July-September quarter.

I have criticised enough about the “expert’s opinion”, so I better give it a rest. After all, who am I to tell them how to suck eggs.

Thank you for reading.

Pavement showered in glass shards after tower's balcony panel cracks

Post to Facebook on 2/11/2019 11:08 AM
Commenting on “Pavement showered in glass shards after tower's balcony panel cracks”

For a change of pace, this blog is very different from what I have been posting.

Posted to The Age (1/11/2019) on 2/11/2019

Commenting on “Pavement showered in glass shards after tower's balcony panel cracks”

https://www.theage.com.au/national/victoria/pavement-showered-in-glass-shards-after-tower-s-balcony-panel-cracks-20191101-p536o3.html

The meteoric rise in housing construction and associated technology incorporated in the old and new buildings are real concern.

Rental properties need to have gas heaters checked every two years and smoke detectors every year, but I doubt there is any safety check on solar panels, especially the electrical connections and storage. At present, solar panels are god sent as a renewable energy generator. Under extreme climatic fluctuation, will the glass crack or even cause short circuit? Furthermore, the potential hazard of disposing them at the end of their useful life is taboo, not dissimilar to the use of plastic bags years ago.

Can LED devices and energy savings lights be a health hazard? Under certain atmospheric condition, I cough very badly and I can even detect some very small traces of gaseous smell, even if no one around has the same reaction. Many of these devices and lights involves with micro-fine soldering, and what chemicals used in the solder can be carcinogenous. The energy consumption may be low, but can the fine micro-electronic connections last as long without failure?

Thank you for reading.

The great house-buyer drought of 2018-19: See how your suburb fared

Post to Facebook on 2/11/2019 3:21 AM
Commenting on “The great house-buyer drought of 2018-19: See how your suburb fared”

It is official that the number of Victorian properties sold in 2018-2019 is 201,592 or 20,000 less than the previous year. This means, the fall is around 9-10%.

If the state government collected stamp duty worth about $5.5 billion during the year, the decline in revenue from stamp duty would be only half a billion dollars instead of $1 billion as reported. My goodness, this variance is not a small change!

So can we trust reporter or writer who is poor in maths to tell us how to suck eggs in real estate investment?

I have blogged on several occasions that there is a great shortage of listings, and It is evident from the reduced number of property for sale advertisements in local papers.

The state government framed the budget based on increase in stamp duty, and go gangbusting on large infrastructure projects, employ thousands of public servants, and generous wage increase for the next few years in some sectors.

Most disastrous of all, the ridiculously high pay rate for the construction workers on many projects will be a very bitter pill to swallow if things don’t work.

The fall in stamp duty revenue is going to delay or even scrapping some projects, and rise in unemployment. The economy will decline despite the numerous interest rate cuts.

There were talks about scrapping the stamp duty and replacing it with charging land tax on all properties. I doubt the state government is in a hurry now to scrap this stamp duty cash cow.

Will properties prices rise and rise like the previous boom? I still believe the prices remain fairly steady for this quarter, even some reports reckon the median price has gone up 2% in Melbourne and 1% for Sydney in the month of October.

Nothing much is said about the rise and fall in median prices in individual suburbs, and figures do not provide any indication whether more new properties then “existing” ones are sold.

I visited a suburb mentioned in the attached article in my blog recently, and there are 3-bedroom properties for around $450,000 to 650,000.

If you are serious about buying your first home, search properties around your budget range, and look through the properties for sale. Check out some of properties in the various suburbs, and hop into your car to check out the properties in various suburbs. Do not form your opinion so soon!

Thank you for reading.

Supersized Melbourne mansion among $17.3m in assets seized in AFP probe

Post to Facebook on 31/10/2019 3:36 PM
Commenting on “Supersized Melbourne mansion among $17.3m in assets seized in AFP probe”

Is justice done? They do the crime, they pay the price - someone else's money, and they must do the time.

Hopefully Australia's extradition laws are in place to send these scum back to China to serve their time and face the Chinese legal music.

I heard so many "stories" how some of the Chinese nationals managed to get through the loophole to buy price properties.

Chinese nationals are able to transfer up to USD 2,000 a day to an overseas bank account, with a maximum of USD 50,000 per person per year.

A primary school student who has learnt multuplication and division can work that it is impossible for those investors to pay a 10% deposit for any property over USD 500,000 or AUD 800,000 with money in the bank saved for 1 year. This assumes that day-to-day expenses, all utilitiy bills and not to mention their accommodation require money too.

That was only 10%; how do they raise the rest?

I do not care where these buggers come from. I just want them out of this country and face the harshest punishment they deserve.

Thank you for reading.

Outer suburbs lead Melbourne property sales freefall

Post to Facebook on 31/10/2019 3:16 AM
Commenting on “Outer suburbs lead Melbourne property sales freefall”

Posted to The Age (30/10/2019) on 31/10/2019
Commenting on "Outer suburbs lead Melbourne property sales freefall"
https://www.theage.com.au/politics/victoria/outer-suburbs-lead-melbourne-property-sales-freefall-20191030-p535vz.html

The turnover of properties was crazy before the bust, and it is not unexpected that many property owners are holding back to ride out this bad time.

Most real estate investors do not buy and sell properties like they do with shares, because the costs of transacting are very high. Furthermore, an owner who sells his primary residence within a year is subject to capital gains tax.

The outer suburbs are where you can find lower price range properties, and it is stupid for anyone to put a low price property in market now, especially housing affordability is in a crisis situation. Where are these sellers going to move to?

A few weeks ago many articles surfaced with writers beating their chests to say that the median prices are rising. Well, if the lower price properties are not available, it leaves with properties of higher values enter the market.

Please DO NOT just let your fingers do the walking. You really need to visit some real estate agents, and see what they can do to help you find a suitable home. In the worst case, why not knock on the door of a property that you have set your eyes on. The owner can only say no.

By the way, read the articles and you may want to drive to some of the suburbs mentioned.

Thank you for reading.

We are all marketers

Post to Facebook on 28/10/2019 11:23 AM
Commenting on “We are all marketers”

Please read this article in full. If you just skip it because you perceive I am writing some mumbo-jumbo, then you are only judging a book by the cover.

I do monitor who read my post not only in this group but also many other FB groups and Google blog sites. In many cases, at the start of the blog I might write a teaser or something that does not appear relevant, but towards the end I refer back to the beginning paragraphs and explain the reason or my intent.

Just like the blog on Friday 13. Some religious believers probably think that I wrote something nonsensical and superstitious, just like what I discussed about Feng Shui. By brushing it off basically one has the ”I am right and you are wrong“ mentality.

I profess I do not know everything, but I am always ready to learn, by reading, listening and most importantly asking. If you still have that Asian mentality, then think twice whether Australia is your home, because you are not taking the advantage of the many aspects of freedom what this country is offering.

We are all marketers. We market ourselves all the time. When you apply for a job, you write a covering letter and resume to impress the potential employer or employment consultant.

Parents spend mega bucks to send their children to tuition in order to get good results so that Glen Waverley High, Balwyn High or similar to accept them. The results are for the school to “buy”.

When you look at the photos of an advertisement of a property, your appetite is wet and you want to visit the property. It turns out that property is gloomy and dark, nothing like the photos. When you see a property newly painted or renovated, you wanted to splash that extra without finding out the worth of the extra effort put in.

Is it worth it, or how good is the finishing?

The last paragraph is about marketing - you the buyer is sucked in.

Thank you for reading.

Property upgraders to feel the pain of bigger stamp duty payments

Post to Facebook on 27/10/19 at 10:30 AM
Posted to The Age (23/10/2019) on 27/10/2019
Commenting on “Property upgraders to feel the pain of bigger stamp duty payments”
https://www.theage.com.au/money/investing/property-upgraders-to-feel-the-pain-of-bigger-stamp-duty-payments-20191023-p533hg.html

Stamp duty is a two-edge sword. I believe stamp duty helps to deter the property prices to soar further. If stamp duty is exempted, the money supposed to go to the government will end up in the developers’ or the vendors’ pockets.

Unfortunately the myth and hype that prices cannot come down are created by organisations with special interests to get advertising revenue. With a slight upswing in median price, they turn the molehill into a mountain.

Just look closer to other reports that the median prices in almost all other capital cities except Sydney and Melbourne, are lower in the June-September quarter.

Thank your lucky star that stamp duty is an one-off charge. If the speculation is true that the government is going to raise revenue by replacing stamp duty by charging land tax on the primary residence, the pain will be much greater annually for all property owners, whether they are still paying the mortgage, and those who are already in financial trouble.

Thank you for reading.

No-go' lending zones: Development defaults rise in Sydney and Melbourne

Post to Facebook on 23/10/19 at 11:18 AM
Posted to The Age (16/10/2019) on 23/10/2019
Commenting on “No-go' lending zones: Development defaults rise in Sydney and Melbourne”
https://www.theage.com.au/business/companies/no-go-lending-zones-development-defaults-rise-in-sydney-and-melbourne-20191016-p5318u.html

I hope my warning to you not to sign on the dotted line of a contract for promises only, other than the finish product that you can’t see and touch, have not been turned to deaf ears. You must beware of off-the-plan development.

It is so tempting to read those brochures full of beautiful images, and promotional description scripted to “suck” you in. Oh yes, I designed sale brochures and property sale display boards before.

I am sure you are not going to live in those far flung regional towns or suburbs unless you are working there. In fact many of these places have no job opportunity because the infrastructure is not ready, or may take years before it becomes a reality.

Do you think new migrants will move to these areas, where they can’t find work, support, food ingredients, etc. Furthermore, it cost a lot to travel to busy suburbs similar to what they are familiar with back home.

I have advised you to buy land, but you must buy titled land, not a piece of a big block yet to be subdivided by a developer or some companies who may not even own it.

Real estate investment is not like dice throwing or pulling an one-arm bandit at the casino. You just have to learn more about the ins and outs, and be smart about it not to let emotion overpower you and sign the contract impulsively.

Sorry for repeating my warning so often. I just don’t want you to see your money disappear for the wrong reason.

Thank you for reading.

Real estate advertisement in local newspaper

Post to Facebook on 19/10/2019 11:37 PM
Commenting on “Real estate advertisement in local newspaper”

What I dreaded most was those sales meetings on Tuesday morning. With a fine-tooth comb, the boss would go through the columns and rows drawn on the white board recording the listings with asking price, and sale price if sold recently, and not to forget the lister initials.

If a property was sold during the past week, he would grin, but if one had not “moved” after a few weeks, he would come down like a ton of bricks and demanded to know whether the price was too high, and why it was not brought down lower sooner. In a way it was Management by Fear!

He was more of a typical teacher of yesteryear, often treated the staff like his students. He was not a good presenter. Incidently, he was trained as a school teacher before he entered real estate.

The favourite past time at the meeting was to count the advertisements in the real estate supplementary booklet in the local newspaper. The agency I worked with had one strong competitor. Those were the days these two agencies could have 15 pages of advertisements. No all were full page advertisement; they might be two, four or eight, or even some other combinations.

I picked up my local paper just a couple of days ago, and checked out the real estate advertisements. The booklet is no longer a liftout booklet; it is part of the newspaper, because there are hardly any paid advertisements.

The following statistics tells the story:

Barry Plant - 2 pages, 2R properties, + 2 pages self promotion

Ray White - 1.25 pages, 10R+1C properties, + 0.5 page self promotion

Biggin Scott - 1.25 page, 1R property

McGrath - 0.5 page, 1R property

Noel Jones - 0.5 page, 1R property

The One - 0.5 page, 1C property

The above statistics covers not only local residential (R) and commercial (C) properties, but also surrounding suburbs’.

Obviously, the cost is a factor. Many sellers can’t see value in the newspaper advertisements, and choose to advertise in the Internet. However, there is an undisputed reason; there is a shortage of listings. With so many oroperties changed hands at ridiculous prices, it is unlikely, these properties will be back in the market. However, those properties listed in the “book” are still hoping against hope that the crazy prices will return.

Thank you for reading.

Five-bedroom Fitzroy share house passes in for $1.52 million

Post to Facebook on 19/10/19 at 8:40 PM
Commenting on “Five-bedroom Fitzroy share house passes in for $1.52 million”
https://www.domain.com.au/news/melbourne-auctions-five-bedroom-fitzroy-share-house-passes-in-for-1-52-million-895542/

Yesterday 19/10/2019 auction clearance rate was 72%, below the week’s before. Is it going to plateau off until end of the year, or is this just a slow week?

I have no opinion as to how much more is required to spend on the property to bring it up to scratch to attract good tenants. I am always weary about term like “renovation opportunity” in an advertisement or real estate display board.

Having a share house or student accommodation to rent out as a business concern can be quite lucrative, but that can also shorten your life for several years, if not longer. Furthermore, ATO is going to watch out for such properties, after having a go at AirBnb.

All you need is one bad tenant, you’ll have it. Unless each tenant has his/her own meter for the different utilities, managing how gas, electricity and water usage is a task and a half. Then there are regulations to comply with.

Thank you for reading.

Sydney’s most expensive residence sold for more than $140 million

Post to Facebook on 19/10/2019 12:00 PM
Commenting on “Sydney’s most expensive residence sold for more than $140 million”

This is an exception to the rule - mega million buck properties. May be it’s time for me to prospect for some gold nuggets in disowned gold mining town to top up my piggy bank for my next investment.

THank you for reading.

Sydney and Melbourne house prices will soon be growing at double-digit rates

Post to Facebook on 18/10/19 at 11:26 PM
Posted to The Age (18/10/3019) on 19/10/2019
Commenting on “Sydney and Melbourne house prices will soon be growing at double-digit rates”
https://www.theage.com.au/business/the-economy/sydney-and-melbourne-house-prices-will-soon-be-growing-at-double-digit-rates-20191018-p531z3.html

I can’t think of any reason why this can possibly happen. I am wondering whether this is a bank beat up.

Without the influence of loaded overseas buyers, the locals are unlikely to get their fingers burnt like the last few years.

Thank you for reading.

Two-thirds of property investors make the mistake of buying in their own backyard

Post to Facebook on 16/10/2019 12:44 PM
Commenting on “Two-thirds of property investors make the mistake of buying in their own backyard”

I can’t see anything wrong with investors buying in their own backyard, and sometimes, it is “better to deal with the devil you know the devil you don’t”.

Many researchers are not investors, and their study and argument are sound in theory, but not necessarily feasible or viable in practise.

When I first joined a real estate agency, only the bosses and the receptionist had access to the computer. There was no Google. Most of the data collection and research had to be sourced with a lot of hard work.

However, I managed to find out that over 80% of the agency’s buyers did not move out of the suburbs, and more than 95% are from the same or surrounding suburbs.

Not all people are savvy with computers, especially the older generation. They still let their legs do the walking, and rely on the agents that sold them their last family homes as the source of information. As you all know, it is easier said than done to find the goose that lays the golden eggs.

This report has some truth in it, so if you have some spare cash in investing in another property, look beyond where you live. The chances are, you still come back to your familiar territory.

Thank you for reading.

Asbestos in the Home

Post to Facebook on 15/10/2019 2:48 PM
Commenting on “Asbestos in the Home”

DO NOT SKIP READING THIS BLOG
When buying an old house, beware of the materials used, especially the eaves, internal and external wall cladding, ceilings (particularly in wet areas such as bathrooms and laundries) and fences.

The materials may contain asbestos. Inhaled asbestos fibers aggravate lung tissues, which cause them to scar. This is known as Asbestosis, a serious, chronic, non-cancerous respiratory disease.

Generally, asbestos-containing material that is in good condition and will not be disturbed (by renovation, for example) will not release asbestos fibres.

In Australia, from 31 December 2003, the total ban on manufacture, use, reuse, import, transport, storage or sale of all forms of asbestos came into force.

Asbestos cement materials were first produced in Australia in the 1920s, and became popular in 1940s. Some residential buildings continued to use asbestos-containing products in 1980s or even early 1990s.

Gypsum plaster board replaces the asbestos containing products, and the rest is history.

PS. When in doubt, ask the agent directly.

Melbourne high-rise apartment prices lag houses by 50 per cent in some suburbs

Post to Facebook on 14/10/2019 10:11 PM
Commenting on “Melbourne high-rise apartment prices lag houses by 50 per cent in some suburbs”

I continue to warn readers and investors NOT to invest in apartments, because it has no land. Investing in apartments is investing in air space, and one cannot build on air without firm ground.

One will be lucky to make a breakeven, let alone make a capital gain in a long run. While initial rental yield may seem attractive, and generate a good cash flow, the final overall outcome is nowhere close to that owning a landed property.

Many new migrants from Asian countries bring along the mentality that apartments can make a killing in years to come, but they do not realise this is a different country with different culture and life style, not to mention this is a vast country with sparse population.

Should you decide to invest in apartments, consider investing in service apartments. The yield may be higher, but then the capital gain is just as poor as normal apartments in the long run.

What is worse than investing in an existing apartment is buying one off-the-plan. Not being able to see the finished product, and the unpredictable final settlement definitely give me many sleepless nights.

Thank you for reading.

Melbourne auctions: Investor snaps up two-bedroom house in Middle Park for nearly $2m

Post to Facebook on 14/10/2019 3:32 PM
Commenting on “Melbourne auctions: Investor snaps up two-bedroom house in Middle Park for nearly $2m”

Oh, what an investor spending $2m on a two-bedroom house! Is the land value worth $2m or the property has some historical value?

I enjoy watching bidders‘ expression at an auction. Some stand with hands folded, normally away across the road, while some are too eager to put in the next bid without any hesitation.

Keep an an eye on the women; many instances they corner their male partners to put up their hands. What about the young people that come with their parents. They are eager to bid, because their financial backers are there. Why worry if the money is there to use?

The hype is on, and reports of rising auction outcome will be here to stay. However, the published results by Domain in past couple or three weeks are just around 75% or less, after a week of over 80%, and that was a quiet auction week.

Please remember, do your homework and attend as many open-for-inspections and auctions as possible. However, get your finance ready if you are keen to buy. Surprises can happen at unexpected moment. It happened to me several times.

Thank you for reading.

Buying an off-the-plan apartment: What to look for in the final handover inspection

Post to Facebook on 12/9/2019 1:21 PM
Commenting on “Buying an off-the-plan apartment: What to look for in the final handover inspection”

This does not only apply to inspecting an off-the-plan apartment before it is handover, but also when you are doing the final inspection of an existing property.

For those who had attended my first auction hands-on session, I did point out to you what other things to look for when conducting a quick preliminary inspection at an open-for-inspection.

Thank you for reading.

Reserve Bank's efforts to power the economy aren't going to plan

Post to Facebook on 11/9/2019 7:45 AM
Commenting on “Reserve Bank's efforts to power the economy aren't going to plan”

Posted to The Age (10/9/2019) on 11/9/2019
Commenting on “Reserved Banks’s efforts to power the economy aren’t going as plan”
https://whttps//www.theage.com.au/politics/federal/reserve-bank-s-efforts-to-power-the-economy-aren-t-going-to-plan-20190910-p52pps.html

One day, RBA governor will accept that lowering interest rate does not stimulate spending, and indeed as the article points out, it has not been able to do it, but instead push up property prices again.

High interest will dampen the thirst of property investors and give those who try to save up to buy their first home. Investors ask for return, but own occupiers are contented to enter the market first to have a house to call home. That also serves as a security blanket.

Thank you for reading.

Melbourne home buyers borrowing up to $100,000 more are bidding up auction prices after bank rule change

Post to Facebook on 6/9/2019 9:01 AM
Commenting on “Melbourne home buyers borrowing up to $100,000 more are bidding up auction prices after bank rule change”

This blog does not show all the steps in calculations, but highlights the impact of paying extra over your budget for a property.

Just be mindful NOT to get into frenzy bidding at an auction. A property that can attract a bid $100,000 over the reserved price can only be explained that either it was a case of underquoting or the bidder had gone cuckoo just like the time before the real estate crash.

The Capital Improved Value CIV can be used as an estimate of the valuation of the property. If one bids well above the CIV, not only extra money is paid towards the mortgage interest, but also the General Council rate, Fire Levy, and Water rate.

The General Council rate is calculated by multiplying a factor by the CIV. This factor varies for different councils. City of Monash uses a factor of 0.0015835 while City of Knox uses a much higher factor of 0.0042.

If future CIV is to increase by extra $100,000, the General Rate in City of Monash will incur extra $158.35 while City of Knox $420.00. Assuming the $100,000 extra CIV remains constant for 30 years, the total comes to $4,614 and $$12,600 respectively. In fact this figure is a lot more if formula using compound interest is taken into consideration like mortgage interest.

What if the property is bidded $100,000 over $1,000,000, that is the final price is $1,100,000, then the extra stamp duty payable is $5,729 once.

According to ANZ loan calculator for an investment of extra $100,000 for 30 years at 5.53%, the extra repayment is $570 per month or $6,840 or $205,000 for the 30 years period.

These are the major expenses incur either once or during the duration of the loan.

I know many people never consider the impact, or to some think that it is too negligible to worry about. Well money in your pocket is always better than in someone else’s.

Thank you for reading.