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.