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.