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Home Buyer Show

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It is near that time of the year again where we are preparing for the Home Buyers Show.

We will be in the same position - Stand 39, as we have had for the last few years, feel free to pop in for a chat!

Ian James will be talking at the Exhibitor Seminar Theatre at 11.15am - 11.45am Sat 8th Oct & 11.15am - 11.45am Sun 9th Oct.
He will be discussing "Negotiating in the current market" which can be a challenge for anyone at this point.
We will also be running our usual daily draws for the iPod Nanos on Friday 7th, Sat 8th & Sun 9th October, so be sure to pop your details into the box on our stand at the show.
We look forward to chatting to many people over the 3 days.
The event is held at the Melbourne Entertainment Centre opposite the Crown Casino.

For a free ticket to the Home Show - Click this link

Sam James

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Property Management

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* Looking for a professional service?

* Looking for a property manager who will keep you informed about your investment?

* Looking for ongoing support?

Have a talk to our team who will be more than happy to assist you with your investment.

We work closely with our landlords & tenants.

Call 9523 1054 or email rentals@jpp.com.au

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Market News

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The State Government must act to protect purchasers.

If you go to any court, arbitration, mediation, VCAT hearing or any other legal mediation, if one party to the issue has legal counsel then the other party will be warned by the mediator or judge that it is in their own best interest to get legal representation and that the proceedings will usually be adjourned until this is accomplished. This can be a dispute over a $5000 fence-line dispute up to a million dollar planning issue, or an enormous company litigation.

Our government has been accused of being "The Nanny State". Yet when your average person is making the greatest financial decision of their lives, they are nowhere to be seen. When asked to look at property transactions, there is a howl of protest about "underquoting". The government continually says," We will look into underquoting" If the government actually gets some advice from a licensed real estate agent, they would now that there is almost no underquoting in Melbourne. There is "low quoting", but this is not illegal and the government will never be able to legislate that the selling agent must give assistance to a purchaser. This would break the fundamental contractual obligation of the selling agent.

IF YOU ARE BUYING A PROPERTY PAY FOR PROFESSIONAL ASSISTANCE FROM A QUALIFIED LICENSED REAL ESTATE AGENT. This is not advice from your conveyancer. This is not advice from your mortgage broker. They know their jobs, and it is certainly not giving real estate advice. If you are paying a real estate agent, he is contractually obligated to be working in your best interests. If you are not paying him, then he is most likely being paid by the seller. AND THEN HE IS WORKING FOR THE SELLER!

If you are purchasing a home, there are two parties involved; you, the purchaser and the vendor (seller). It does not matter whether you are buying a new house and land package, off the plan apartments, or the house next door. There are always two parties and in this country nearly every seller gets professional real estate counsel. AND ON NEARLY EVERY OCCASION THE PURCHASER HAS NONE.

We are not talking about a $5000 fence or an argument over whether a $10,000 job was done correctly, or even a defective car that the mechanic won't fix under warranty. We are talking the difference of hundreds of thousands of dollars. We are talking about the average person in the street who purchases maybe two or three houses in their entire lives, who would have no idea of what their legal rights, or their legal responsibilities actual are.

Most people work out they need a conveyancer to transfer their newly acquired property into their name. Most people understand they require the assistance of a mortgage broker or banker to organise a loan. But most of this is organised after they sign a contract with the selling agent. Most people ask the selling agent what they have to do and where they have to sign the contracts.

THE SELLING AGENT IS UNDER A CONTRACTUAL OBLIGATION TO ACT IN THE BEST INTERESTS OF THE SELLER. If he assists the purchaser in any way to be in a better position in the transaction then he has broken his contractual obligation and will be liable to be sued by the vendor.

If the selling agent points out flaws in the contract that put the purchaser in a stronger legal and financial position than the seller, he can be sued. If the selling agent points out to the purchaser that this property may not be suitable for a purchaser, he can be sued. If the selling agent gives any information to the prospective purchaser in the form of advice regarding value of the property, and if this impacts in a negative way on a purchaser's offer, the selling agent can be sued.

No matter what the selling agent says to you during the negotiations, he is always working for the seller. It is the selling agent's job to get as much money out of the prospective purchaser as they can within the rule of law.

Consumer Affairs and the ACCC could stamp out the negativity surrounding selling agents quotes by simply explaining the fact that if a purchaser is not paying for advice they cannot expect the seller's expert to give it to them.

But the State Government has a vested interest in purchasers paying more for property. Nearly a third of the State Governments income is derived from the Property sector. A huge proportion of this is Stamp Duty on the purchase of houses. If purchasers receive better information and begin to save themselves tens of thousands of dollars then the purchaser pays less stamp duty. This means less revenue for the State Government.

If you are purchasing a property you should be paying a licensed real estate agent for advice. Otherwise you are potentially throwing tens of thousands of dollars away and paying more in government stamp duty.

Ian James
Director JPP Buyer Advocates

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Bought Recently

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JPP has purchased recently over $42mil worth of property for our happy clients.
Below is a brief list of some of the areas we have purchased in over this time.
We are currently working in all areas of Melbourne & both Peninsulas on a day to day basis.

Suburb Dwelling Type
Armadale Apartment investment
Armadale Large period home
Balwyn Large family home on 1 acre
Bentleigh Large family home
Brighton Large townhouse
Burwood Family home
Canterbury Townhouse
Canterbury Family home
Caulfield Period home
Canterbury Large family home
Chelsea Multiple units for reno
Clayton Unit
Coburg Family home
Collingwood Large renovated warehouse with office space
Fitzroy North Apartment
Geelong Family home
Hampton East Family home
Hawthorn Large family home
Hawthorn Townhouse
Hawthorn Large family home
Hawthorn East Townhouse
Kensington Townhouse
Kew Townhouse
Kew Large period home
McKinnon Large period home
Melbourne Apartment
Melbourne CBD Townhouse
Melbourne CBD Apartment
Mitcham Family home
Mornington Family home
Murrumbeena Family home
Narre Warren Family home
Newport Apartment first home buyer
North Melbourne Family home
Prahran Investment unit
Prahran Investment unit
Reservior Family home
Richmond Family home
Rowville Family home
Seaford Townhouse
Seaford Family home investment
South Melbourne Large period home
St Kilda Period home
St Kilda East Period home
Warrandyte Large home on land
West Melbourne Apartment first home buyer
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Spotlight On Melbourne Suburbs

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

Ascot Vale

Municipality: City of Moonee Valley
Population: 12,398 (2006 census)
Postcode: 3032
Location: 7km from Melbourne CBD

Located 7km north-west of Melbourne's CBD with a population of 12,398.(2006 census). Ascot vale falls neatly in-between the Maribyrnong River and the Moonee Pond Creek. Considering its close proximity to the city, a high proportion of residents rent in Ascot Vale and there is a fair degree of government housing (near the show ground). However many of the streets are adorned with rows of single and double fronted Victorian and Edwardian homes, and as such the area is also popular with owner occupiers, young families and professionals working in the city. Streets are generally tree lined and attractive - to the west of the suburb is an area known as 'Whisky Hill'. An area attractive for families because land sizes are slightly larger and house prices can easily achieve in excess of $1Mil. Ascot vale is home to the Royal Melbourne Show Grounds which hosts Melbourne's annual Royal Show. Union road is the main shopping precinct in Ascot Vale. It hosts an array of Cafes, boutique shops, cultural restaurants, food and convenience stores and pubs. Essendon golf course (Riverside Golf Club) is also located in Ascot Vale and known as one of the most picturesque courses in Melbourne.

Transport options are good with both tram and train servicing the suburb - there are also some good schools in the area for families to choose from. House prices have performed extremely well over the past few years, and buyer demand is increasing. There is no singular dominant buyer demographic - the suburb offers something for everyone and therefore investment potential is good whether you choose to purchase a one bedroom flat, or a large Californian bungalow.

Amenities

Main Schools:

  • Ascot Vale Primary School
  • Ascot Vale West Primary School
  • St Mary's Catholic Primary School
  • Western Autistic School

Transport - Ascot Vale train station and Tram lines 57, 59 and 82

Shopping - Union Rd shopping strip contains restaurants, coffee shops, super markets, boutique retail outlets and pubs.

House Styles

The dominate form of architectural in Ascot vale is made up of detached houses - many period in style, (single and double fronted Victorian and Edwardian). Town houses (most terrace in style) and apartment blocks are becoming increasingly common especially in the streets closer towards the shopping precinct as the area becomes more populated and land utilized and subdivided. (Expect more high rise blocks to pop up as Melbourne's 2050′s plan kicks into action.) The 'Whisky Hill' area of Ascot Vale is located in the west & attracts families due to the larger land sizes and properties (Californian Bungalow and post war styles). It's not unusual for properties in this area to achieve prices in excess of $1Mil.


*Image from Wikipedia

Catherine Cashmore

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Come out winning in a soft market

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Statistics are beginning to show an increase in the number of property investors taking advantage of what has widely been spruiked as a 'buyer's market'. Not only is this evident in the increased numbers of buyers lining up outside open for inspections and attending auctions, AFG (the country's largest mortgage brokering group) reported their mortgage sales hitting an 18 month high in August - that's some $2.7 Billion with 38% going directly to property investors. Owner occupiers are also on the increase and according to the ABS, they have been for the past four months. Even first home buyers are coming back to the fold. Mortgage Choice recently reported a marked increase in first home loans making up 35% of all loan approvals in June compared to an average 27%.

Considering all the evidence points towards purchasers increasing, not decreasing, why then is turnover 20% down on this time last year and also roughly 6% lower than this time during arguably the worst period of the GFC in 2008?

It's true there's still a lot of overpriced stock and vendor's not willing to reduce expectation. These are the vendor's that don't 'need' to sell, and therefore can afford to hang out for weeks on end hoping some hapless purchaser will love the home so much, they'd be prepared to pay a premium. Vendors love reaping the benefit while the market is suffering un-sustainable booms such as the 20% rise we had at the beginning of 2010 however these booms are always followed by market corrections as part of the typical ebb and flow of the property cycle and thus leave many un-prepared to moderate expectation. It's easy to spot the overpriced listings - just watch for the properties that change agency hands every 4-6 weeks as each agent attempts to 'educate' the vendor on price so they can earn their fee. In the end they often have no choice but to shed the listing and concentrate on the stock they can sell. However there's another problem hounding the market an abundance of poor quality stock which is marketed principally for investors and has little attraction for owner occupiers. It's an old adage in real estate, but one that holds up to scrutiny. 'Good real estate sells well in all markets' and in the current market there's a dearth not ticking the right boxes - hence the reason turnover has been so low. There's plenty of stock available but with the emphasis firmly focused on low quality rather than low quantity.

The Australian Housing and Urban Research Institute recently reported that 25% of investors sell within a year of purchasing. The exact reasons for such a high percentage is not specified, however it's a concerning statistic and an indication large numbers are not seeking the right advice. If a vendor is trying to sell after only one or two years of property ownership, a market correction can have serious implications on their profit and loss scenario. It's one of the reasons property ownership should always be viewed with long term spectacles. Until you've held property through all stages of a market cycle, you can't call yourself a seasoned investor and you risk your best intentions of property ownership failing miserably. Building wealth in property has its key firmly locked in long term capital appreciation and considering owner occupiers principally fuel the market, it's imperative to focus on property which holds lasting appeal for this demographic. Get this formula right, and even on the sliding side of the property cycle, loses will be minimized and gains maximized. However as a property investor you'll 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. Some advocate buying apartments, others land, and everyone has their own opinion on the 'hot' suburbs. But understand that there's no one golden egg to property investment and everyone's individual needs must be assessed based on their own financial circumstances. Furthermore the landscape has changed rapidly over the past few years with a marked increase in high rise accommodation which is mainly marketed at investors, over standard single level subdivisions which is where most home buyers would rather locate.

However, it may not be wise to hold back, because if you think we're heading for further falls any time soon, think again. We live in a country with a rising population, where the best seats in our major cities have been taken and no one's all that eager to move into the outer metropolitan or regional areas where land is arguably overpriced due to hefty development overlays. The housing market is both fragmented and fickle. It's made up of individuals like you and me with different needs and different budgets. Each piece of real estate has its own intrinsic quality and with a lack of good stock, it's reasonable to assess that there are always going to be areas of the market that outperform. Therefore, before you purchase take some time to think about what stands out about the property you're interested in. It could be located in the best street in the suburb, or situated on the largest north facing block of land - have the best light and biggest balcony in the block, or hold the lasting attraction of period appeal. Whatever the reason be careful what you choose and if you do find yourself selling in a soft market, it's more likely you'll still come out winning.

Catherine Cashmore

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Recent Articles Of Interest

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Renovations get nod for self-managed super funds

A draft ruling by the Australian Taxation Office (ATO) has given self-managed superannuation fund members the ability to use money from inside their fund to renovate their property.

Previously, the ATO said SMSFs could not use money from any source to improve property, however, under the draft ruling they can potentially renovate to improve the value of the property.

Charterhill Group Chartered Accountants chief executive officer George Nowak told sister Real Estate Business title Smart Property Investment that the draft ruling would ultimately make real estate a more attractive option to the $420 billion SMSF sector.

"We have been in support of this outcome since the 7th July 2010 when the remodelled legislation was delivered. It is an absolutely positive move," he said.

According to Mr Nowak, the drafted legislation clarifies some nuances of error in the original legislation.

"The ATO understands that the future buoyancy of the property market will be heavily dependent on SMSFs' investing in property as well as providing rental occupancies for younger people.

"This new drafted legislation, which will almost certainly become law, addresses everything everyone I have spoken to in the industry has been scratching their heads over."

But while SMSF trustees will be able to renovate using money within their funds, borrowing to renovate will remain prohibited.

Ken Raiss, director of Chan & Naylor, told Smart Property Investment, the prohibition of borrowing to renovate property held in a SMSF was very difficult to understand.

"Hats off to the ATO a lot of good things have come out of this draft ruling," he said.

"The fact that you can now renovate, with non-borrowed money, is very good.

"But the main problem is that the ATO's draft ruling neutralises or diminishes the sole purpose test which is to provide retirement benefits to members."

With the ability to manufacture capital growth through renovation a big drawcard for property investors, the same capacity should also be available through SMSFs, he said.

"If you're looking to provide retirement income you should be allowed to maximise it."

Mr Raiss said he hoped the ATO would consider this when it came to finalising the ruling in the next month or so.

Source: Real Estate Business Online

Sam James

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Technology Monthly

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Sony Ericsson Xperia Play

I decided it was time for a new phone....don't get me wrong, I love my iPhone 4, but the user interface hasn't changed in 3 years and it doesn't look like it will be changing anytime soon and I just get a bit bored of it sometimes, so I went and bought a Sony Erricson Xperia Play...this is the first 'Playstation Phone' on the market.

The phone runs the latest version of Android 2.3 (Gingerbread), has a 1ghz processor, Adreno 205 GPU and 512mb of ram...making it run fairly smoothly, it also has an micro SD card slot (something I really wish the iPhone had). The thing that sets the phone apart from the others is the slide out gaming controls, these are proper Playstation controls created by Sony and they feel really nice to use (it is great to be able to see what I am doing on the screen without my hands getting in the way).

The Xperia play has access to all the Android apps you get in a normal Android phone, but also has access to 2 extra stores: the Playstation store - where you can purchase Playstation 1 games to play on your device, and the Xperia Play optimised store where you can download games specifically designed for the phone...including a lite version of Minecraft (the main reason I chose this phone).

Android is a much more open operating system than iOS, allowing you do do things such as simply pluging the phone in to a PC and dragging files into it as if it were a portable hard drive, you also get 5 home screens that are completely customisable with widgets for Twitter, Facebook, News & Weather, Apps & Games and many more - meaning you can see status updates and new apps directly on the home screen without having to open an app.

I am really enjoying the phone...the only negative thing I can say about it is that the games can drain the battery in 3-4 hours, and the charger uses a custom plug, can't just use a micro-USB plug when you forget the cable.

Read the rest at JPP

*Image from the Sony Ericsson Website

Chris Thursfield

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Recipe: Stir-fried Prawns with Ginger and Mango

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Ingredients:

  • 2 firm, ripe mangoes (200-300g each)
  • 400g green prawns
  • Handful of small snow peas
  • 1 tablespoon peanut oil
  • Few drops sesame oil
  • 1 teaspoon finely grated ginger
  • 1 clove garlic, finely chopped (optional)
  • 2 teaspoons sweet chilli sauce (more if you like)
  • 1 tablespoon Chinese cooking rice wine
  • Salt and pepper
  • Jasmine rice, steamed, to serve

Method:

1. Prepare the mangoes by slicing the cheeks away from the seed. Using a large tablespoon, cut the flesh away from the skin. Cut the mango flesh into bite-sized cubes. Peel and devein the prawns, but leave tails intact. Top the tail the snow peas and rinse them in cold water.

2. Heat a wok. Add the peanut oil and the sesame oil, heat and toss in the garlic and ginger. Stir-fry quickly until the wonderful aromas are released. Add the prawns abd stir-fry for 1-2 minutes until the prawns turn pink. Add the snow peas, stir-fry for 1-2 minutes. Pour in the Chinese cooking rice wine and sweet chilli sauce: stir in the mango cubes. Stir-fry until mango is heated through. Season to taste with a little sea salt and freshly ground pepper. Serve immediately with steamed jasmine rice.


*Recipe From Belconnen Markets

Chris Thursfield

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Kind regards from the team at JPP.
If you have a friend or family member looking for property, please feel free to forward our newsletter on to them.

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