Christmas Office Hours

Friday 19th December: 9:00am - 5:00pm
Monday 22nd December: 9:00am - 1:00pm
Tuesday 23rd December: 9:00am - 1:00pm
Wednesday 24th December: 9:00am - 1:00pm
Thursday 25th December: Closed
Friday 26th December: Closed
Saturday 27th December: Closed
Monday 29th December: 9:00am - 1:00pm
Tuesday 30th December: 9:00am - 1:00pm
Wednesday 31st December: 9:00am - 1:00pm
Thursday 1st January: Closed
Friday 2nd January: 9:00am - 1:00pm
Monday 5th January: 9:00am - 5:00pm

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JPP News

Another year almost gone

JPP have had another bumper year with great results all round.

Our Buyer Advocates team have worked hard this year to ensure we give the best assistance we possibly can, in purchasing family homes, first homes to buying the perfect investment properties for all our clients varying needs.

Our Property Management team have done a great effort caring for our landlord's properties as if they were their own, All our great tenants needs have been looked after and all in all, we have had a successful year.

Ian and I have been fortunate to have had a wonderful year thanks to our family sharing with us our beautiful little grandchildren Isabella & Zoe, we are also expecting (well our son and his lovely wife) are expecting again in May 2015, so we are looking forward to another great year. Justin and his beautiful fiance Jaie are getting married in 2015, so another great celebration for JPP to look forward to in 2015.

Sam James

Highlights for 2014

Click the headlines to go to the article

Sam James

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Market Overview

Looking forward to 2015

With only one smaller weekend to go for auctions for 2014 we look back on what must be said to be a very productive year for property investors. Those buying their own homes and those buying to become landlords. With clearance rates averaging around low 70% we know when all the stats come in we will have seen quite a good jump in the median price of most suburbs in Melbourne.

Whenever the clearance rate and turnover numbers climb, so does price. It is only when these two identifiers stagnate that price tends to be very sluggish. And even though our current federal government is not having a wonderful time and that is set to get far worse with MYEFO (Mid-Year Economic Fiscal Outlook) being released today, many people in Australia are still far better off than they were last year.

With unemployment looking to rise, and the economy slowing down, I cannot see interest rates looking to go up any time soon. In fact as I said in June and September, when all the bank economists were telling us to lock in rates, (I wonder to whose benefit that was) the bias for the next interest rate movement must now be down.

Downward pressure on rates means the stock market usually stagnates, and people look to put their money into other safe havens. The Melbourne property market has always been one of these options. If rates stay low or get lower then I foresee another strong year ahead for price growth in property throughout Melbourne. The fact that the population of Melbourne is still growing faster than any other city in the country doesn't hurt either. Demand will continue to outstrip supply for a very long time.

Two areas that will perform strongly will be the New Estate / First home buyers' areas. The simple fact is with lower interest rates it will be as cheap to buy as it is to rent. This will strengthen suburbs like Pakenham, Craigieburn, and Sydenham. All of these areas have good train access to the CBD, reasonable freeway access and the Outer East of Melbourne has some of the best infrastructure in the metropolitan area. In these areas, the purchase price is relatively cheap and the rental returns are excellent. Most savvy investors who borrow the full amount for these properties will be close to revenue neutral from day one. Those who have cash will be looking at around 4.5% yield and about 7-8% growth. Try getting those returns from the bank or the stock market next year!!

The other strong performer will be the villa unit and townhouse market. With the changing demographics now, the quarter acre with the "Hills Hoist" in the backyard is not the great Australian Dream. Many people want the townhouse closer to the city but don't like looking after the garden or mowing the lawn. The areas around the Inner North and South East Bayside suburbs will be in high demand and their growth rates will flourish. These areas have extremely low vacancy rates as they are in high demands with tenants.

One type of property I would be wary about over the next couple of years is the high rise apartment market. There will be huge numbers of new developments, many of which will be sold directly overseas to investors. This in itself is no real issue as many of these investors pay a premium and it will take many years to recoup their initial purchase price if they wish to sell, but the bigger issue is the drop in rental return in these areas. The abundance of supply means that a greater choice is available to would-be tenants and this makes it far more difficult to rent older style apartments in the same areas.

JPP Buyer Advocates has no preconceived ideas as to what you should purchase. We do not keep properties in our back pocket ready to sell to you. We will listen to what your needs are, then make suggestions as to what would fit that criteria. Only then, do we go out to the market place and source the properties.

So whether it is high growth or high yield, there will be options for both next year. If you are considering a property purchase please call us for a no obligation first meeting. We can explain the different types and styles of properties, what their attributes are and potentially find something that is right for you.

Ian James
Director
JPP Buyer Advocates

November Clearance Rates

Last weekend the clearance rate hit 65% according to one of the industry data analysts, the REIV. Of the 1405 auctions that the REIV had known about, the results of 1181 had been analysed over the weekend. This is a significant drop from the average figure for the year to date of 71% is, however, quite normal. With the RBA leaving rates on hold as expected, we can only assume this year will follow trends set in similar years.

Many vendors get nervous at this time of the year that their properties will not sell and they will need to re-advertise them in the New Year. This makes getting a deal through negotiation, whilst difficult, at least more possible than during October.

Prices do not seem to decline though. By the same thought process as vendors, purchasers can sometimes get anxious that they will not be able to buy before Christmas and they will stretch the budget a little more than they would have a month ago. It is the time where purchasers make their biggest mistakes.

So for everyone still trying to buy or sell before Christmas; take a deep breath, think about your plan and don't do anything you will regret in the New Year. If you are considering a purchase before Christmas, and want some good advice, please feel free to call or email and one of our advocates will be happy to assist you.

Ian James
Director
JPP Buyer Advocates

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Interesting things we have seen

We have seen some funny / unusual things throughout this year,
We could write a book about some of the interesting things we hear, see and get asked and one day we just might...

Auction Excitement

My favourite is watching people at auctions, we have been doing auctions for so many years now, yet still each auction can be different, due to the other people interested in that particular property.
As usual an agent will start the auction with their 10 mins or more of well let's say small talk (really they are just advertising their company, but hey, they need new work too).
Once all this is done they will then go over the auction rules and explain that once the hammer goes down no further bids will be accepted. And if the property is passed in they will be firstly talking to the highest bidder which they will have the right to hear the vendors reserve.
At one particular auction, it was a high end property with approximately 60 - 70 people in attendance. Bidding started with the usual silence, followed by the auctioneer doing his job and opening with a vendors bid. Bidding slowly continued with the agent working hard to get strong bids. After the property was placed on the market we begin to bid, and at this stage we were the highest bidder, the agent then began his usual going once, going twice, which of course during this time always seems to take for ever, and when we looked around it felt like there were more people ready to bid, however the hammer went down with Sold, too our client.
After being congratulated by the auctioneer one of our team takes our clients inside to sign the contract (as the deal is not done until paper work is signed and exchanged).
Whilst standing outside with other family members of our clients, we noticed a gentlemen walk up to another real estate agent and tell them they will pay more than what we bid! The agent then had to explain to the gentleman he needed to bid at the auction. This other gentleman was very distressed again saying that he had more money and wanted to buy the property. Obviously he had not been to an auction before and didn't understand the process. After signing contracts our clients felt very relieved and very happy that they were the new owners of the property.
(Note to one self, attend several auctions prior to deciding to bid yourself, it can be very nerve racking, and very intense, as some auctions can go very quick and prices can jump rather fast, sometimes faster than you expect if you are not listening to the agent you may have spent $50,000 without even thinking.)

Rental Needs

Another favourite of mine is doing open for inspections at our rental properties, However it can also be disappointing.
I love meeting prospective tenants, and answering the questions we get asked.
We are fortunate enough to have rental properties all over Melbourne - North, South, East and West.
Our rental properties range from $200pw to over $2000pw.
So when we are leasing out our properties in some instances we get a lot of interest in certain properties,
Some days we can have a queue of up to 40 people, this makes it really difficult to be able to talk to everyone in your 15mins you are the property,
Fortunately we usually take 2 agents to these opens and are able to meet and chat with them all.
What is the hardest is to then have to return calls after applications are processed to most of these people and say they are not successful with the application as we only have the 1 property at this stage available, Times like this, I would love to have a dozen of these properties to be able to offer all our applicants a home to live in.
This shows the shortage of rental properties for the families and the need to do something about it, so more people can live in a nice home.

Sam James

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Pool Safety

In 2012/13, 40 Australian children aged 0-14 years drowned. The majority of these incidents occurred in backyard swimming pools. Pool safety is everybody's responsibility. A major part of pool safety is prevention, knowing what is around a pool that could cause a potential hazard.

What is a pool and what are your responsibilities.

A Pool as defined by the building code of Australia 1996 is any excavation or structure containing water over 300mm in depth and used primarily for swimming, wading, paddling or the like. It includes above ground pools, bathing or wading pools, hot tubs, Jacuzzis, spas, and indoor pools. This does not include a dam or tank on a rural property, ornamental ponds (birdbaths and fishponds) or paddling pools and domestic spa baths which are emptied after each use.

There are strict laws for each state regarding the fencing or barriers around pools in residential properties, Victoria's laws are as follows.

• If a Victorian residential pool or spa has a depth of 30cm or more (300mm), it is required to be surrounded by safety barrier. This includes inflatable pools.
• All pools and spas built after 2010 require a four sided barrier (isolation fence), with no direct access from the house or any other building to the pool or spa.
• Safety barriers must be a minimum of 1.2 metres high.
• Barrier gates must be self-closing and self-latching.
• It is illegal to leave a pool or spa gate propped open.
• Climbable objects such as pot plants, eskies, pool pumps and chairs must be moved away from the barrier.

For more information on the responsibilities of landlords and tenants go to Kidsafe Victoria.

Daniel James

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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

Beaumaris

Municipality: City Of Bayside
Population: 12,829 (2011 Census)
Postcode: 3193
Location: 20km South-East of Melbourne

Located 20 km south-east from Melbourne's CBD with a population of 12,441 (2006 census). An attractive bayside suburb located just south of Black Rock and Cheltenham. Beaumaris emits a relaxed outdoor lifestyle well suited to retires and families due to the facilities on offer, such as ample park land, schools, beach walks, golf courses, and detached housing on blocks of land ranging from 600 sqm upwards. The area has an exclusive nature due to the high property prices with a large proportion of residents over 50 years of age. The Royal Melbourne Golf Course is located in Beaumaris and ranks as one of the best golf courses in the world. Ricketts point is a popular beach in Beaumaris with fishing facilities, however due to the waters in this area falling into a marine protected zone, activities are restricted. The concourse shopping square located on reserve rd has a distinct touristy feel. It's home to a range of popular restaurants and coffee shops including The Lobster Cave which attracts visitors from out of town. Other convenience stores can be found on the Balcome Rd shopping strip which links to the neighbouring suburb Mentone, and a larger strip on shops on Beach Rd at the end of Martin St, over looking the bay. Most residents are owner occupiers with a small population renting. Housing is predominantly detached. Most residents rely on private transport in Beaumaris and demand for public transport is not a high priority for buyers looking in the area. There is no train station in Beaumaris - the closest stations are Sandringham and Mentone. However there are currently 4 bus services operating in the area which access all neighbouring suburbs and can get you to the local major shopping mall in Cheltenham (Westfield Southland). If you can see past this one diminishing factor, Beaumaris is a hard area to over look and in consistent demand as rising property prices contest.

Amenities

Main Schools:

Transport - 4 Bus services - 600, 825, 922, 923

Shopping - 'The Concourse' - located on reserve road, touristy in nature with nice restaurants, boutique stores and coffee shops. The Seaview shopping strip on Balcombe Rd - mostly convenience and grocery stores with some coffee shops and eateries, and Beach Rd shopping strip (located at the bottom of Martin St) which has a wider selection of shops and cafes over looking the beach.

Most of the housing stock in Beaumaris is post war in style, with grander homes making an appearance as the older properties have gradually been renovated or replaced to suit the growing affluence of the community. Spacious 2 bedroom villas and single level town houses are popular due to demand from down-sizers. Newer side by side double story town houses are also becoming increasingly common as land is gradually subdivided. A small number of apartment blocks (1970/80's) are located close to beach and the shopping areas, however they are not in high demand due to the absence of a train station (which is usually high on the priority list for renters and apartment dwellers).

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Something Interesting

If the moon were only 1 pixel

Artist and Designer Josh Worth demonstrates an interesting way of showing the scale of our solar system

*Warning: This involves a lot of scrolling*

Chris Thursfield

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Technology Monthly

Raspberry Pi

It is unbelievable how far computers have come...a few years ago I would have thought it would be impossible that I could run a full linux operating system or a full retro emulation suite or a media center on a $50 PC the size of a deck of cards...but the Raspberry Pi does just that.

There are currently 3 models of the Raspberry Pi available as well as a spinoff board called the Banana Pi (which has a different core chip and some different hardware), but I will be focusing on the new Raspberry Pi B+ model.

Specs:

• Chip: Broadcom BCM2835 SoC
• Architecture: Arm11
• CPU: 700mhz Low Power ARM1176JZFS Applications Processor
• GPU: Dual Core VideoCore IV Multimedia Co-Processor
• Memory: 512mb SDRAM
• O/S: Boots from an SD card, runs linux based operating systems
• Dimensions: 85mm x 56mm x 17mm
• Power: Micro USB Socket 5V, 2A
• 40 pin GPIO connector
• 4 x USB 2.0 ports
• Micro SD card slot
• HDMI Port
• 3.5mm audio jack
• 10/100 BaseT Ethernet Port

Even though the raspberry pi isn't very powerful in terms of hardware, it's usefulness lies in the way it has been adopted by so many people for various projects, leading to a large variety of accessories and software, this makes it easy for anyone to buy one and turn it into something amazing. The popularity of the Raspberry Pi has lead to a revolution of low cost computers that makes building anything from home and car automation systems to DIY arcade machines much cheaper and easier than ever before.

Here are a few of my favorite projects:
1. Picade - an arcade machine for the Raspberry Pi.
2. Supercomputer - a supercomputer made from 64 Raspberry Pi's.
3. Raspberry Pi Portable - a portable Raspberry Pi built by Ben Heck.

If you are interested in using one of these to play retro games, I can recommend the PiPlay (formerly PiMame) software from PiMame - all you have to do it burn the image to an SD card and put it in the Pi, it comes with a quite nice GUI and emulates many systems from the Atari 2600 and the Super Nintendo right up to the Playstation 1, it will even help setup the controls for you. If you would like to use the Raspberry Pi as a media center, there is a port of the very popular XBMC which can be found at Raspbmc.com.

The Raspberry Pi is an amazing little board and it has changed the landscape of affordable computing forever. If you are interested, you can purchase one from raspberrypiaustralia.com.au.

Chris Thursfield

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Recipe: Salted Caramel Slice

Ingredients:

Base

• 1/2 cup desiccated coconut
• 1 cup plain flour, sifted
• 1/2 cup brown sugar or coconut sugar
• 125g butter, melted
• 1 tsp vanilla essence

Filling

• 400g can condensed milk
• 60g butter, melted
• 1 tsp sea salt flakes
• 2 tablespoons golden syrup

Topping

• 4 tbsp flaked almonds or crushed pistachio nuts
• 1/2 tsp sea salt flakes or Himalayan salt (not table salt)

Method:

BASE:

1. With baking paper line a 3cm deep, 28 x 18cm tray.

2. In a bowl, mix all base ingredients.

3. Press into prepared tin.

4. Bake for 20 minutes, or until light golden. Remove from oven, then cool. Meanwhile.

FILLING

1. Combine all ingredients in a saucepan over medium heat, over the heat continue whisking until golden and viscous.

2. Pour over your cooked base.

3. Top with the nuts of your choice and very evenly spread over the salt.

4. Re-bake for 10 minutes or until firm.

5. Refrigerate for at least 4 hours, or overnight.

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Kind regards from the team at JPP.

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