Classic Double Fronted Slate Roofed Hawthorn Brick Victorian Residence …6 Main Rooms, 3 Bedrooms + Study

551 Punt Road SOUTH YARRA

Painstakingly renovated from the ground up, this stunning home has been re-stumped and rewired with new double glazing.  It features a stunning gourmet kitchen opening to a large family room at the rear which overlooks the back garden and entertaining area. 

Accommodation includes three huge double bedrooms plus study ( master with ensuite) formal sitting room, all with 12 ft plus ornate Victorian ceilings!

There’s 4 open fire places perfect to fall asleep by with the winter impending, stunning new timber floor with brass inlay and ducted heating! 

There’s off street parking for multiple cars including car port, as well as a double storey

cottage / studio. 

This beautiful home is a stunning example of a timeless triple brick “Victorian” superbly decorated with feature gold leaf!  

Investors …waiting and watching!

It’d seem the stars are aligned: low rates, population growth, low vacancy rates, strong rents and a shortage of housing in most capitals.

Since late 2008, the number of loans to first home buyers has outweighed substantially those to existing owner-occupiers and investors as first-time buyers rush to take advantage of the increased government grant. These numbers are set to surge in the next two months after the Prime Minister indicated that the increased grant will end June 30. In previous interest-rate cycles, lending to investors and existing home buyers increased alongside that to first-home buyers.

Part of the reason is that investors are not getting the first-home-owner grant, and when you have to lay your own money down instead of the government’s, you tend to think more carefully before deciding to take the plunge. Unemployment concerns and fears about how the economy will evolve this year are also key reasons why investors are not yet entering the market.

Consumer sentiment figures released earlier this month by the Westpac-Melbourne Institute Survey found pessimists still outnumbered optimists and, with the prospect of more unemployment, that’s unlikely to change soon.

Interest rates are one of the crucial aspects investors consider. During the past month or so, several of the big banks have increased their fixed mortgage rates, even though variable rates are expected to go even lower.

Banks say it’s because of an increase in the rates in the wholesale market where they access funds. Not everyone accepts that that is the reason, but most acknowledge it’s a signal borrowing costs are near their lowest levels!!

Some economists believe fixed rates will continue to rise as banks manage their risk, and it’s just a matter of the speed at which it happens. Of course, fixed rates are not popular at the moment even with investors who traditionally use this option.

That’s not a surprise, given the cash rate is expected to fall to 2 per cent by the end of the year.

But fixed rates are a bit of a barometer of the longer term trend in interest rates, so they are worth watching. It also pays to remember that just because the Reserve Bank of Australia cuts rates,  that doesn’t mean banks have to follow suit.

Only time will tell whether property buying will be better next year.

Perhaps investors are waiting for a sign that unemployment will stop rising, or for first-home buyer activity to dry up!

House price rise bucks global trend

The value of Aussie homes increased in the first quarter, bucking a global trend downwards, according to a recently issued report.

House and flat prices in Australia increased in value by 1.6% in the first three months of the year, helped by a scarcity of supply, lower interest rates and incentives to first-home buyers.

The slight recovery in Australia “has been driven by the 40% fall in home loan rates to 5.7%, which are now at their lowest levels since July 1968!”

March’s three-month gain follows a 0.1% rise in the three months to February in the RP Data-Rismark’s national dwelling value index, and a 3% fall in the value of capital city homes in 2008.

The strength of Aussie home prices is a world away - so far - from the 2.7% drop in British home prices over the first quarter, capping a year to March 17.5% plunge.

US housing didn’t fare that much better, with prices in the top 20 cities sinking 1.9% in February, which brought the 12-month fall to 18.6%, according to the most recent S&P/Case-Shiller index, a widely followed measure.

RP Data-Rismark said the first-home buyer’s grant, which ends June 30, has acted like a catalyst for new home buying in Australia, but lower interest rates are sustaining the market’s growth.

Renters …buy now!!

Increasing rents have boosted the housing component of the Consumer Price Index (CPI) by   0.9 per cent for the quarter and the overall annual increase to 5.5 per cent, that’s according to Australian Bureau of Statistics (ABS) figures released this week.

The CEO of Real Estate Institute of Australia has said, “The majority of this increase in the housing component was driven by rents, which increased nationally by 1.7 per cent over the quarter and 8.4 per cent over the year. The cities where rents increased the most were Perth and Darwin with annual increases of 10.9 per cent and 13.5 per cent respectively!”

This rent increase in the recent quarter reflects low vacancy rates and the scarcity of rental properties across capital cities, combined with the decrease in building approvals and housing finance for investment.

The National Rental Affordability Scheme should hopefully relieve this figure, however the impact won’t be felt for quite some time.

“With underlying demand for additional housing at around 200,000 dwellings per year and commencement of new dwellings of 147,000 in 2008, Australia will need to build significantly more houses than what has occurred to meet rental demand.”

Whilst housing affordability improved since the Reserve Bank rate cuts, there’s really been very little   flow-on benefit to those in the rental market.

“With lower interest rates and greater affordability, now would be an almost perfect time for those in the rental market to consider the purchase of their own home.”

Top growth performing suburbs

The rich list has been announced and the top performers for both houses and units were areas of NSW.

RP Data released its top price growth suburbs, recording the greatest increase in median house and unit prices during the 12 months to December 2008.

North Sydney suburbs were the standout performers for both houses and units with median house prices appreciating 47.4 per cent in McMahons Point and unit prices growing 49.8 per cent in Greenwich.

The NSW list comprised mainly areas outside of Sydney and includes Dubbo, Jindabyne, Queanbeyan East and Brunswick Heads.

Victoria was a different story with only one area outside of the metro area making the list. Irymple in Mildura was the regional victor experiencing a median unit price increase of 35.3 per cent.

The Victorian results mainly comprise of areas in the Melbourne Statistical Division with both the top performers – Portsea’s median house price increase was 38.6 per cent to $1,455,000 and Dallas’ median unit priced leaped to $222,500, an increase of 48.3 per cent.

The QLD market showed many areas outside of the Brisbane area as strong performers in capital growth.

The state’s top performers are houses in River Heads at Hervey Bay with prices increasing 43.1 per cent and units in North Lakes increasing by 47.3 per cent.

South Australia’s winners are dominated by areas of Adelaide with only Port Hughes, Roseworthy and Owen outside of the capital city location.

The standout performers for houses is Teringie (49.5 per cent) and for units Underdale (47.8 per cent).

The strong growth results centred around Adelaide aren’t a surprise given that it remains mainland Australia’s most affordable capital city market and has been an excellent performer throughout 2008.

Perth dominates the WA list. Which is surprising given the poor performance overall of the Perth market during the last 12 to 18 months.

Homes in Coolbinia are a standout, with a median price increase of 43.1 per cent. Units, the port side suburb of South Hedland saw the greatest increase jumping 44.4 per cent to $455,000.

Outside Perth, the list is exclusively populated by areas linked to the mining and resources sector.

For Tasmania, the top performer for houses is Campania, recording a 46.3 per cent, and units saw Hobart taking top spot with 35.7 per cent!

Northern Territory winners are almost entirely located within Darwin, with Virginia recording the strongest growth in houses (30.9 per cent) and The Gardens topping the list in units (39.0 per cent).

Throughout the ACT, the strongest performing suburbs are within close proximity to the city centre – Franklin’s houses recorded a 25.6 per cent increase and Campbell’s units 49.7 per cent!

Victoria

Houses

Units

Cheap inner-city living – get your slice today!

So it’s well known, buying properties within 10km of capital cities is generally a good investment, but where ARE the most affordable areas?

There’s some suburbs within 5km of capital city centres where the median unit price is $200,000 and the gross rental yield 5.33%?

You really don’t have to buy far from the city centre to pick up a bargain!

And it’s not a bad strategy for identifying best value properties to find ones located in affordable suburbs within a 10 kay radius of the city.

For some cities, this inner circle can be more or less, depending on the size of the city, however, generally it’s a good rule of thumb because it is these areas that are more than likely well serviced by transport, have social and retail amenities near by and benefit from strong rental demand.

Identified below are the five most affordable suburbs for houses and units within a 5km radius of Melbourne City.

Melbourne - houses

Melbourne - units

Fixed or variable home loans - which is better?

Another interesting artcile from Bankwest over at realestate.com.au (Full article here: http://www.realestate.com.au/doc/review/feb09-1/bankwest.htm?rsf=newsletter_rea), below is an extract:

Almost every industry expert has a different view. Some senior economists are forecasting further large falls in the RBA cash rate whilst others say we’re nearing the bottom of the cycle.  To the ordinary borrower, it can all be very confusing.

Of course, the reasons for choosing a fixed rate mortgage as opposed to a variable product may differ based on individual circumstances.

For first homeowners who are on a tight budget, a fixed rate mortgage is a great way to lock in a rate and know exactly what the payments will be for a few years while they are settling into their home. Fixed rates may be slightly higher than a variable option, but if knowing the rate is locked in helps borrowers sleep at night, it can be a great option.

On the other hand, a mortgage product with a variable rate may provide greater flexibility for homeowners looking at selling their property or who are looking to pay off their mortgage faster with extra repayments.

So what are the main things to be aware of?

A fixed rate loan may be costly to leave early

The majority of fixed rate loans will charge a break cost that is based upon the economic cost to the lender of reversing the funding they have locked away for the life of the loan. So if you anticipate paying out the loan early, a variable rate option may be more appropriate.

Do you want to pay off more than the required repayments?

Most fixed rate loans limit any additional repayments to a specific amount each year (eg. $5,000) and if you put more into the account, the lender could pass on any costs.

Read the fine print

Variable rate loans can offer more flexibility when paying the loan back early, but this could incur high exit fees with many ‘introductory’ rate loans. It’s important to understand the terms and conditions of the product that you’re applying for.

Ultimately, you should work out what’s more important to you; the knowledge of exactly what your repayments are with a fixed rate, or the flexibility to repay the loan early that comes with a variable rate.

If you want the best of both worlds, most lenders will allow you to ‘split’ your loan.

For example, you could have $200,000 as a variable rate loan and $200,000 on a fixed rate loan.  This can be a great option as you are protected against rate movements on one side, yet you retain the ability to put extra funds (such as a tax refund) into the variable portion. It also means you’ll be charged a lower break cost on the fixed portion if you need to pay out the loan within the fixed rate term.

Looking ahead, it seems that we may be in for several more rate cuts as variable and fixed rates continue to fall. But how far is anyone’s guess. If you’re comfortable that you can afford the repayments on your mortgage, the question of whether to fix or not comes down to what is most suitable to your individual circumstances. That means weighing up your plans for the next few years against any savings you might pick up from renegotiating your loans.

Mark Forytarz on some ways to find a bargain property

An interesting article over at realestate.com.au ( Full article here: http://www.realestate.com.au/doc/Resources/Invest/property-investment-bargains.htm?rsf=newsletter_rea), below is an estract:

Markets are all about supply and demand, and a property’s value is a fixed figure reflecting a balance of both. Right? Well, mostly yes, but there are ways to push your advantage so that you end up paying less than you may have expected and land a great buy that will fill out your portfolio plus provide plenty of opportunities for dinner party gloating at your next social engagement. The key is to get smart, get ready and back your judgment.

We’ve found a few ways to help you look back on your next purchase with smug self-satisfaction.

1- Look for an eager vendor

A vendor under distress is the most obvious component of a cheap purchase. There is no moral high ground here – often it’s a case that the seller needs a quick disposal and is willing to cut back on the price in order to move the bricks and mortar on.

While it isn’t pleasant to see another party in a sticky situation, you may be doing them a favour by relieving them of the property and, in most circumstances, it’s a business transaction where if you don’t someone else will.

Ben Anderssen is the director of Brisbane-based buyer’s agency Property Chase and is on constant lookout for property bargains for his clients. He often finds his best source of information to be the seller’s own representative.

“If you quiz the agent you’ll get to the point where they’ll start telling you perhaps a bit extra… And you can’t forget that agents, despite everything else, are there to do a deal. You’ll be able to tell pretty quickly whether or not they’re in a hurry to sell,” says Anderssen.

Some eager vendor situations:

The vendor has bought elsewhere

Gun-shy buyers will contract on one home before selling their current abode and will include a ‘subject to sale’ clause in the dealings. As settlement draws near, they become eager to dispose of their old property and now is the time for you to leap. Drive hard on the bargain – particularly when you’re armed with a cash contract free of conditions.

“I spoke to an agent the other day and he said: ‘It’s a young couple that owns this property and they’ve bought another house and have bridging finance.’ And I just thought: ‘Oh, my god, this is perfect,’” recalls Anderssen.

Divorce settlement

No one enjoys seeing these situations come to a head, but the end of a relationship is often punctuated by cutting ties and the settling of assets. Even where the separation is amicable, there is often an eagerness to move on and this means disposing of assets at a quick sale price. The effect can be amplified in acrimonious endings where both parties are eager to sever ties as quickly as possible.

Mortgagee sale

Costs of living pressures, interest rate rises, spiralling petrol prices – these are all catch phrases that have put further stress on those trying to service a mortgage and keep their head above water. Unfortunately, an overextended buyer may receive an unwanted knock on the door from the financier looking to recoup their loan.

Watching for a ‘Mortgagee in Possession’ sale is one strategy, and another is to seek out an owner trying to consolidate their assets and settle their loan.

Deceased estate

In the situation where property is willed to the next of kin, there may be many recipients to consider. While this is sometimes a sticking point, it’s common for family members to agree that a quick disposal of the property will help put the estate to rest.

Another consideration when multiple beneficiaries are involved is that the value of their share becomes diluted, so any reduction in the offer can appear minor. For example, a $500,000 home divided between four siblings will reap $125,000 per share. If a cash unconditional offer of $460,000 is forwarded, a $40,000 saving to the buyer means each sibling now gets $115,000 – not too dramatic a fall in the scheme of negotiations.

2 - Get smart

Forearmed is forewarned. When a bargain arrives, the first buyer to spot it will be the victor, so if you don’t recognise the opportunity when it arrives, someone else will run off with it.

My first purchase occurred in inner Brisbane in 2003. After months of researching the market, I was sure a dated two-bedroom unit with lock-up car accommodation could be located for under $180,000. Despite the agent’s reservations about such an animal existing, I received a phone call from one local realtor informing me that something had come onto the market “just yesterday”.

He first called the out-of-town lady at the top of his possible purchaser list who was keen to find a Brisbane base for her student daughter, but she had baulked at the $145,000 asking price.

Within three hours we’d arranged to meet at the unit and, armed with an intimate knowledge of the market, I suggested he bring around a standard contract of sale at the asking figure. The contract was signed on the kitchen bench within the first half hour of the inspection.

The body corporate manager told me later that the Gladstone-based couple who sold it was delighted to get $145,000 for it. My response was: “That’s great because I was delighted to pay $145,000 for it.” After $30,000 worth of renovations, the unit was worth approximately $210,000 and now five years later is around the $340,000 mark.

Know your market. Set your criteria on what you want and get informed. If you know that your next investment is to be a four-bedroom, two-bathroom, double-garage renter in outer Melbourne, get real about what they sell and rent for. Dig, dig, dig so you become the local expert.

When the right property comes along, you might be surprised to find that both the vendor and your competing buyers have scant idea as to what a great deal a property offers.

3 - Be prepared

By taking care of a few of the basics, you can remove uncertainties and move quickly.

Arrange your finance before you start hunting your prey. Know how much you can afford to borrow and get it organised. Now is the time to shop around for finance, not when your unconditional day of reckoning is imminent.

Also, go through the exercise to work out what sort of rental you need to achieve on your property to help service the loan.

This is an important step that can stop a prospective buyer in their tracks if they haven’t taken the time to consider the return on the investment.

Form a relationship with professionals whose help you’ll need when snapping up a deal.

Most valuers will be happy to discuss their general expertise and what they look for in a property, and can stand at the ready to provide their services quick-smart when they know you’re likely to call.

Similarly, have the phone number of your trusted pest and building inspector handy so they can provide a ready-to-go service when you come up with a possible winner.

By making their acquaintance early, you can get some pre-purchase heads-up on possible pitfalls that might surround your sale of the century.

4 - Look for the angles

Bargains aren’t always obvious and you must dust off a little dirt to find the gold seam. Try thinking outside everyone else’s square to see if you can make a go of a property possibility.

For example, one agent in a near-university suburb has built a formidable self-funding rental portfolio by identifying homes where additional bedrooms can be created for leasing on a per room basis to the student market.

It’s also worth considering whether a property holds a value to you over and above the local market. Perhaps by purchasing your neighbour’s home you may suddenly find yourself with a potential development site ripe for rezoning to units. And all for not much more than the cost of a standard residential dwelling.

Bargains may also be had by considering other angles for savings. Purchasing a home from a family member or buying the property you currently rent may circumnavigate the need for agents, thus saving on commission. In the latter case, you may also come to an arrangement where you’re compensated for upgrades you’ve carried out on the property yourself.

5 - Stick with the basics

Bargains aren’t bargains if things go sour easily.

Avoid main roads and adjacent rail lines. These things don’t sell in a soft market.

The rule is: a window of opportunity comes around to sell a dud property about once every seven years, so avoid them like a biblical plague.

Young people still buying

FIRST-home buyers are flooding into the market thanks to falling interest rates and slumping home prices.

But investors are shunning cheaper homes because they fear prices could fall further.

Read the full article here: http://www.news.com.au/heraldsun/story/0,21985,25014496-5013926,00.html

The Developers Dream

Dreams become a reality sooner thanks to Castran Gilbert’s hands on approach!

Why?

Castran Gilbert’s company Principals’, get involved with all the “behind the scenes” aspects of any new project!

From interior design, floor plans, to choosing which bank to finance the project, the Principals’ aim to take the pressure off the developer by offering educated advice ensuring developers make the most from their investment. This also sees the developer’s project gets to the marketing stage quicker!!

Testimonials

At Castran Gilbert we recognise the importance of pre-selling!

It instils confidence and allows you, the developer, to finance other projects sooner!

Here’s what a few of clients have to say.

Anton Wilson: This is my 3^rd pre-sold project since dealing with Castran Gilbert. Their sales team pre-sold 220 apartments giving my company on this latest project more than $50 million in sales revenue …I’m sold on Castran Gilbert!!

Peter Arundel: I first dealt with Castran Gilbert in 1991 with them pre-selling a project of mine in South Yarra within just a couple of weeks! As a developer, this made me feel confident in the project seeing their ability to pre-sell!

Martin Tissot: My latest project has seen another 100% Castran Gilbert pre-sell! They gave me the confidence they could pre-sell then actually did it!! Their huge volume of pre-sales allowed me a construction start and also financed my next project …I have never had so much success since dealing with Castran Gilbert!!

Adding to these testimonials, recently one of our clients went to 1 of the 4 major banks to finance a project and on discovery that Castran Gilbert were involved, the bank proceeded to inform them Castran Gilbert is their preferred selling agent…the bank signed off immediately on the project!!