The Block

Don�t forget to watch the auctions of THE BLOCK on Sunday night channel 9.

Good luck to the four couples,
Renovating can be tough on anyone let alone to be working on tight schedules with strict budgets, well done to all,
JPP has followed the show with interest; we wish them all the best.

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Melbourne Home Buyer & Property Investor Show - 7th - 9th October 2011

It is coming to that time of the year again;
We are preparing to attend the Melbourne Home Buyer Show
You can visit us at Stand 39, the same stand we have been at for last 3 years.
We will have our usual daily giveaways, so come & enter our comp at the show.
We always look forward to catching up with many of our past clients, future purchasers & people just wanting to chat.
We will keep you posted with any further updates on this in the next newsletter.

Sam James

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JPP Property Management

What a start,
We are now offering our clients Property Management.
With a fantastic response from our initial letter, we have had a great start.
We are very proud to be able to offer this great service now, it has taken us a long time coming as when you do something we want to ensure we can do it well.
Feel free to call or email at any time if you are interested in more info with regards to JPP Property Management.
We will manage your investments in the same courteous way we assisted you in your initial purchases, we will continue with feedback & advice throughout this service to ensure your investments are cared for & you and your tenants are kept well informed.
JPP is a family run & owned company, therefore offering the assurance that the same people will be who you will deal with from start to finish.
(Our adult children have moved out of home & got married, but they don't seem to be moving on from the family business, they just seem to be getting there succession plans insight!!!!!!!)���

Sam James

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Market News

There are many Buyer Advocates in the market today. Most will be able to tell you what happened over the weekend, and some will remember what happened last year. But how many have been negotiating with real estate agents for their clients for ten years. How many have even worked on the selling side of Real Estate. Every day there are advocates, selling agents and property managers popping up all over Melbourne.

There are many buying and selling agents out there that are not licensed. I have spoken to many people who have entered the Buyer Advocacy business and didn't realise they needed a license. This is illegal in the State of Victoria. Anyone accepting money whilst assisting someone to buy, sell or manage a property must be a licensed estate agent. There are many Vendor advocates who are also not licensed. This is actually not illegal. They are not allowed to assist you in anyway regarding advice on assessment, negotiation or even choosing the �right� agent, however these people can simply earn a spotters fee from the agency they sell your listing to. If you are dealing with an unlicensed agent, they will have no professional indemnity insurance, they will not be members of the REIV, and you will have little or no prospects of reimbursement when something goes wrong.

Some people you deal with will be licensed. With the advent of the 3 day license from New South Wales and then mutual recognition in Victoria, anyone who has worked in the industry for 12 months under a licensed agent can pay money and without sitting any exams, nor doing any assignments be given a full Real Estate License. This allows them to open their own business and begin buying, selling or managing property. Instead of going to a college and getting a certificate IV in business studies, you simply pay money and are given a license.

There are steps you can take to find out how long a person has been fully licensed for. There is a government website that you can look up every Real Estate agent that is allowed to operate in Victoria. You can see when they were licensed and if there are any restrictions on that license. You can look up an individual agent and you can look up a company agency as well. Check both before signing with any advocate or selling agent.

Justice.vic.gov.au

Insert the name of the agency or the name of the agent you are dealing with. The date they were licensed will be there. Also remember to scroll down the page to see if there are any restrictions on their licenses.

Before signing with anyone, ask them if they have worked in all facets of the real estate industry - Buying, selling and property management. Have they purchased / sold properties in the area you are interested, and the price range you are contemplating. An experienced Real Estate Agent will make you or save you much more than their fee. An inexperienced Advocate could easily cost you twice as much as your fee.

There is an enormous amount of highly reputable Real Estate Agents but unfortunately there are also many people who are out to make a �fast buck� and this unfortunately taints our industry. Protect yourself, do some homework and think before you sign an authority with anyone.

Ian James
Director JPP Buyer Advocate

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Spotlight On Melbourne Suburbs

In our regular spotlight section we examine a selection of Melbourne suburbs, highlighting what's happening in these areas right now

Armadale

Municipality: City of Stonnington
Population: 8467 (2006 census)
Postcode: 3143
Location: 7km from Melbourne CBD

Located only 7 km from Melbourne's CBD with an estimated population of 8467. Roughly 60% owner occupied with 1078 people under 15 yrs, 6248 people between 15 and 65 yrs, and 1141 people over 65 years. (2006 Census). The area has a nice residential feel with tree lined streets populated by period properties and some austere trophy style homes. However streets are narrow, and street parking is limited. The suburb borders Toorak and reflects the affluent nature of the area.

High street is the main shopping strip, and although its on a busy road, it has a lively cultural atmosphere with many interesting retail outlets. It's long been known for the antique shops, of which there is quite a number. However during the global downturn of 2008 some were forced to close. Coffee shops, boutique retail outlets, fashion stores, and restaurants can all be found on High St as well as general grocery and convenience stores which service the local residents.

Other highlights of Armadale include the small areas of park land which add to the general attraction and liveability of the suburb. Parks such as Union Street Gardens. Toorak Park, and Armadale Reserve break up the density of the suburb's landscape which is important for the inner metropolitan areas. Toorak station is located in Armadale, and there are a number of tram services so its ideal for those without a car.

House prices are high, however the suburb also contains a range of nice apartments and town houses which offer slightly more affordable options for buyers on a lower budget. Armadale is ideal for young couples and city workers, and this tends to be the dominate buyer profile in the area.

Amenities

Two of the best private schools in Melbourne are located in Armadale – Lauriston Girls School and the Jewish King David School. Lifestyle amenities are good and there are a number of good parks including Toorak Park, Victory Square Reserve, Armadale Reserve and the Union Street Gardens dotted around the suburb. High street shopping strip is littered with fashion boutiques and well known for its many antique shops.

Armadale has two train stations Armadale train station, and Toorak train station which is also located in Armadale. Tram runs along High Street.

Single and double fronted two and three bedroom Victorian and Edwardian style homes dominate with town houses and apartments becoming increasingly common as the population increases. Blocks are narrow in size and many of the older style homes lack off street parking facilities.

The current Valuer General median prices are; $1,700,000 for a house and $476,500 for a unit. However it's possible to get an entry level single fronted Victorian or Edwardian house for $700,000-$800,000. A two bedroom renovated apartment will cost in the region of $500,000-$600,000. Capital growth averages over 10% per year making Armadale a great suburb for long term investment.

"*Image from Wikipedia

Catherine Cashmore

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Investors - Do you really want a bargain?

As a property investor you face a mine field of advice from financial advisors, sales agents, property planners, developers, not to mention numerous magazines and books all promising the road to riches - and never more so than in a downward phase of the property cycle.

Ironically, buyers often feel more confident purchasing into what's traditionally known as a 'seller's market' rather than a 'buyer's market'. Purchasing property that's rising in value is understandably more assuring than reading weekly headlines that instigate fear we're on the brink of a property crash. However, for those wise enough to step in whilst we're still experiencing flat conditions, it's important to identify a good buy from those that are simply substandard.

There's currently a lack of quality real estate on the market - and to achieve maximum capital growth over the long term, it's important your acquisition is attractive to owner occupiers (who fuel price growth) as well as holding appeal for long term tenancy in both downward and upward phases of the property cycle. Even in the current climate of market uncertainty, if you want to purchase a property that's going to perform well over the long term, nine times out of ten the property you're attracted to will also attract healthy competition from other buyers.

With sound negotiation skills there's always opportunity to purchase good property at a great price. However if you find yourself being lured into a deal that looks too good to be true - with little competition surrounding the home - it's time to start asking 'why?' Vendors have usually done their homework on market value prior to listing their property for sale. Australian's don't give up their houses easily - it's one of the reasons house prices in Australia are more likely to stagnate for periods of time than drop. Most vendors will 'hold' rather than sell in a downward market, and the value Australian's place on their property is heavy with romantic aspiration. Therefore, if it looks like they're giving the home away it will be for one of two reasons - they've hit a financial dilemma and need a quick deal, or they want out of a non performing asset or money pit. It's important to make sure you walk in with your eyes open.

It's not unusual to hear about distressed sales, or 'quiet' off market listings, and in such circumstances a reduction in buyer competition is always advantageous. However, this doesn't mean the vendor is desperate to sell or the price is below market value, it usually means they will sell 'if' they can get the price they're looking for. So, before you whip out your wallet, make sure you're not assuming otherwise.

One of the most concerning acquisitions widely touted to investors are 'off plan developments' or 'house and land' packages. Some sellers often disguise themselves as 'free' buyer agents picking up their fee directly from the developer. When you purchase off plan you're taking a punt the property will continue to appreciate in value. With established dwellings it's possible to trace the sales history for reassurance of capital growth; however off the plan dwellings don't offer the same luxury. They come with a promise of high rental yields and depreciation benefits; however you have no guarantee that the look, feel and design will fulfil expectation. You'll usually be charged a premium on price (much the same as you would with a new car) - and like a new car, the price is unlikely to hold value without risk of initial depreciation once the word 'new' has disappeared from the title.

Remember, as an investor, you're not purchasing the home for yourself; you're purchasing it to attract a long term tenant and - if you decide to sell - hopefully an owner occupier who'll be prepared to dig deep. Therefore identify the demographic you're targeting. Who's going to live in the property? Are you buying an apartment in an area which mostly attracts families who won't be interested in your 'shoe box'? Is the location desirable or are you purchasing on a main road, close to an industrial zone, or in a far off field away from local amenities? Is a flash renovation covering poor bones, or are there strict heritage overlays which will make future renovation or development problematic?

Finally - if the word accommodation is preceded by 'student', 'defence', 'serviced', or listed with 'huge stamp duty savings' probably best to steer clear. It may look attractive on paper, but without considerable due diligence, there's a good chance capital growth will be limited, on-going corporation fees invariably high, and you'll find yourself walking into a greatly increased 'risk v reward' scenario.

In most circumstances, a good property will sell well in all markets. Therefore, cheap properties are cheap for a reason, so before you purchase, find out why.

Catherine Cashmore

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Technology Monthly

Arcade Machine

Meet my newest toy....an arcade machine

The unit weights approximatly 200kgs and was wider than a door frame meaning I had to dissasemble it to get it into my house (not an easy task...and almost giving my wife a heart attack).

It came pre-loaded with 4000 arcade games and about 5000 music tracks on a pentium 4 PC with windows XP....it also has a fairly good 200 watt 2.1 Logitek THX Certified speaker system, non-functional coin door, 26" LCD Monitor and a X-Arcade tankstick (with trackball). It runs mala for the Mame front-end and e-touch jukebox for the music.

The first thing I did was change PC to something a bit better to run more high end games and replace the front end with Maximus Arcade, so I could use multiple emulators...I have added a wireless card and connected it to my home NAS system...at last count the machine has approx. 400,000 games from consoles ranging from the Atari 2600 to the Playstation 2 (a complete list of supported emulators can be found here).

I will be trialing GameEx and Hyperspin-FE to see what they offer as well

I have also rescued a cocktail arcade machine from a resturant liquidation....which I will be restoring over time.

Chris Thursfield

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Recipe: Individual Welsh Meatloaf

Ingredients:

• 400g minced beef
• 1 brown onion, finely chopped
• 2 sticks celery, finely chopped
• 200g finely chopped mushrooms
• 1 tsp mustard powder
• 1 finely chopped leek
• 1 leek cut in half lengthwise
• 2 tbsp tomato paste
• 1 egg
• 2 tbsp breadcrumbs
• 1 tsp ground oregano
• Splash of olive oil
• 500ml water

Method:

1. In a hot fry pan saute the onions, celery mushrooms and chopped leek until softened then allow to cool.

2. Once the mixture has cooled stir in the minced beef, mustard, tomato paste, oregano, breadcrumbs and egg and massage all together until well combined.

3. Pour the water into an oven tray and place the leek strips in, place on the stovetop and heat until the leeks have softened.

4. Remove the leeks from the water and wrap around individual portions (80-100g) of the meat mixture then place the leek wrapped mince back into the leek poaching water and into an oven pre-heated to 200C for 15-20 minutes.

Chris Thursfield

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Kind regards from the team at JPP.
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