Eview Property Magazine JAN - APR 2019

Proudly brought to you by Australia’s first multi-brand real estate network. MARKET UPDATE LIST WITH ONE, SELL WITH ALLTM JANUARY TO APRIL SOLD STORIES AUCTION VS PRIVATE SALE 4 EASY HOME- IMPROVEMENT PROJECTS MAKING THE MOST OF YOUR REDRAW FACILITY TOP 10 TIPS FOR BUYING AN INVESTMENT PROPERTY eview.com.au

Proud Eview Group Members in your area REAL ESTATE OFFICES FRANKSTON MORNINGTON MT ELIZA (03) 8781 3888 (03) 5971 0300 (03) 9776 3270 [email protected] [email protected] [email protected]

PROPERTY MANAGEMENT OFFICES FRANKSTON MORNINGTON MT ELIZA (03) 8781 3888 (03) 5971 0300 (03) 9776 3270 [email protected] [email protected] [email protected] Bayside Port Phillip Bay

SALES AND RENTAL TEAMS F R A N K S TO N (03) 8781 3888 | [email protected] Arthur Proios Andrew Incoll Nadine Arslan Badiha Cook Cameron McCullough Daniel McGlashan Derek Lea 0414 676 641 0451 100 972 03 8781 3888 0438 352 456 0478 751 984 0407 545 243 0412 204 036 Fiona Hodgson George Findikakis Jamie Universita Jessica Hartin Karen Finch Kirsten Lee Maddy Keating 0477 157 755 0418 397 268 0400 572 672 0406 631 526 0415 618 012 03 8781 3888 0400 980 528 Michael McClure Michael Spring Michelle Braggins Sam Bucca Scott Rowe Sarah Benbow 0403 736 761 0411 112 217 0405 512 999 0412 755 544 0409 696 201 03 8781 3888 M T E L I Z A (03) 9776 3270 | [email protected] Jonathan Rivett Daniel Marion Dena Kibblewhite Mandy Derrick Mitchell Round Natasha Oxley Rhian Verberne 0421 026 520 0433 121 182 0404 406 740 0452 614 681 0401 622 488 03 9776 3270 0422 833 596

M O R N I N G TO N (03) 5971 0300 | [email protected] Jarrod Carman Adam Dureau Adrian Calcedo Ali Quinn Caitlin Broomhall Charlotte Rowe Danielle Christie 0423 144 102 0419 432 669 0402 703 236 0433 159 859 0422 411 013 0411 207 321 5971 0300 Eddie Brown Heather Robinson Jake Egan Jarod Joseph Jasmin Scott Jax Joel Hood 0437 766 629 0498 537 675 0491 129 137 0427 051 084 5971 0300 Carlyle-Mackenzie 0429 886 188 0426 247 090 Karen Andrews Kate Wotherspoon Kim Weir CarlylKe-rMistaecnkenzie Lauren Anderson Maggie Holdsworth Mattia Pecorino 0404 032 714 0418 301 110 0414 440 293 0434 683 728 0413 006 762 5971 0300 5971 0300 Rachel Crook Tasha Potter Tyler Joy Alicia Lecky Miryah 0419 300 515 0437 726 213 0437 726 213 0455 030 047 Vornhagen-Byrne 0476 001 411

LOCAL MARKET UPDATE JANUARY TO APRIL 2019 *Statistics sourced from REA & RP Data.

MT ELIZA | JAN - APR 103 $4.35M $340K $1.206M HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE MORNINGTON | JAN - APR 164 $1.915M $145K $775K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE MOUNT MARTHA | JAN - APR 110 $2.95M $139K $960K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE SAFETY BEACH | JAN - APR 50 $1.915M $390K $805K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE

DROMANA | JAN - APR 44 $2.125M $215.05K $750K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE FRANKSTON | JAN - APR 204 $1.145M $230K $586K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE FRANKSTON SOUTH | JAN - APR 91 $2.225M $455K $832K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE LANGWARRIN | JAN - APR 121 $1.165M $280K $639.375K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE

SEAFORD | JAN - APR 88 $950K $256K $680K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE

BAXTER | JAN - APR 10 $610K $430K $526.5K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE FRANKSTON NORTH | JAN - APR 28 $515K $340K $480K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE CARRUM DOWNS | JAN - APR 96 $660K $115K $565K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE SOMERVILLE | JAN - APR 49 $1.26M $347.5K $637.5K HOMES HIGHEST SALE LOWEST SALE APR MEDIAN SOLD PRICE PRICE SALE PRICE

AUCTION VS PRIVATE SALES PROS & CONS There are plenty of selling options open to us POTENTIAL CONS OF AUCTION SALES here in Australia – but on occasion that can open up a ‘minefield’ situation and muddy the waters, There aren’t many downsides to auctions – making it harder to feel confident and make a but naturally there are situations in which they firm decision. Here we share the pros and cons simply won’t work. Some properties simply of auctions and private sales, helping you to don’t lend themselves well to being auctioned, decide what’s best for the sale of your home. so this is something to guard against. Timing is another potentially troublesome factor. The last FIRST THINGS FIRST – A SALE IS AN thing any agent or seller wants is to orchestrate INDIVIDUAL PROCESS a marketing campaign leading up to an auction only to find the turnout is measly and there are There are methods and mantras you can no bids as a result. The other issue with auctions apply to each and every sale to maximise your is the public nature of them – they are incredibly chances of success – but on the whole it’s open, and this simply doesn’t suit some sellers. important to remember that each and every In this case it’s possible to organise a private sale is unique. Some are very similar – but all of auction, but this could attract fewer people and them have varying factors that mean they must therefore impact on the likelihood of a sale. be approached on an individual basis. This can complicate matters when it comes to deciding POTENTIAL PROS OF PRIVATE SALES on a private sale or auction route, since there are a variety of factors at play, including the A private sale with asking price attached is client’s own personal preferences. With this in perhaps the most ‘traditional’ selling method mind it’s key to stress that the purpose of this – and it does come with a number of benefits article is to share information regarding each both for buyers and sellers. Lots of buyers method – there’s no right or wrong, as the prefer to know that there is an asking price they decision ultimately is between you and the client can aim for, and find the structured process and will depend on the property itself. less confusing and stressful. Sellers also find a private sale less complicated and easier to cope POTENTIAL PROS OF AUCTION SALES with. Private sales are most suited to areas with low demand and plenty of market data giving Auctions are particularly well-suited to agents the best possible chance of accurately properties that are quirky, unique or in high predicting the property value. This method is demand. The bidding situation can quickly generally less costly compared with an auction push up the price over the market value, since – and it’s also best for sellers concerned about interest in the room keeps momentum going. privacy – as the name suggests. A protective reserve price is set, so the seller needn’t lose out – and the auction is held at POTENTIAL CONS OF PRIVATE SALES a set date and time following an intensive marketing campaign, providing plenty of ‘Cons’ are difficult to define for private sales – opportunity to drum up interest. Auctions are since they generally depend on the situation and particularly popular in Melbourne, where public therefore often arise when an incorrect choice auctions can fetch serious sums for the most is made (either by agent or seller). For example, sought-after properties. instructing or organising a private sale when a property is situated in a high demand area is likely to result in a lower yield compared with auction – but this might not be a concern for your seller if privacy is more important to them. Ultimately, it’s a case of weighing up the specific pros and cons in line with client objectives, using your experience to guide and advise them on an individual basis.

LISTED AND SOLD BY S O L DList with one, sell with allTM 7 FORBES PLACE, HASTINGS KEY CAMPAIGN STATS 4 BED | 2 BATH | 2 CAR 2628 Online views 99 Days on market Sale Price | $555,000 28 Buyer inspections $ Private Sale Michael McClure Dominic Tallon 0403 736 761 0408 528 857

4 EASY HOME-IMPROVEMENT PROJECTS TO DO THIS WINTER If you are thinking of selling this spring, be ahead and bathroom – consider updating the door in the game and start preparing your home handles and knobs, doorstops, lights, fans, curtain for sale now. Preparation is key when it comes rods and curtain rails. You’ll be surprised what a to selling. If you fail to prepare, you may have difference it can make to your home. to accept an offer that is lower than what you NEW CARPETS AND FRESH PAINT expected – or what you planned for. One easy way to create the ‘fresh new home’ feel While a brand new kitchen and bathroom would is to lay new carpet and add a new coat of paint. certainly help increase the buyer appeal of Depending on which room you are re-carpeting, your property, you don’t have to undertake an you should opt for different textures and colours. expensive and lengthy renovation to maximise For example, it may be better to choose a more the potential of your property. durable carpet in a darker hue for the living room as it is a high foot trafficked area. When deciding There are several quick little fixes that you on a paint colour for your walls, consider neutral can easily do yourself – and that won’t break tones such as whites, creams or light greys as the bank. Below we share 4 tips for easy they are more likely to appeal to a wider variety modifications that will help you maximise the of buyers. While neutrals walls may look a bit buyer appeal of your property. plain to you, buyers will see a blank canvas and opportunities to make your home their own. FOCUS ON THE FRONT REFINISH THE KITCHEN When arriving at inspections, the first thing buyers see is the front of your home. First When a complete renovation is out of the impressions are crucial, as they may influence question, a refinish may not be. You don’t have buyers’ opinions of the inside as well – so make to replace the entire kitchen to create a new sure that your front façade and front yard look. Keep the main structure as it is and focus look well maintained. Tend to the garden by on repainting or replacing the cupboard doors as mowing the lawn, pulling out weeds and planting well as the door handles. established flowers or plants. Bring new life to the fence with a fresh coat of paint or trimming If you want to go the extra mile, you can also the hedges. Also, consider replacing your front replace the benchtop and splashback. These door or old flyscreens. These small updates in changes will give you that new kitchen look whilst combination with keeping your driveway and being quite cost-effective and easy to DIY – a front yard clean from leaves, dirt or any other perfect trifecta for the handy homeowner. mess is sure to amp up the curb appeal and give buyers a welcoming feel as they come to inspect For expert advice regarding your specific the house. situation, contact your local real estate agent Discover Residential in Frankston, Seaford, UPDATE FIXTURES AND FITTINGS Frankston South, Langwarrin, Frankston North, Baxter and Somerville for assistance. Treat your home to a modern update by replacing any outdated fixtures and fittings. If your kitchen sink tap or shower mixer tap hasn’t been updated since the start of 2000’s it might be time for a new more modern look. However, don’t limit the update to your kitchen

LISTED AND SOLD BY S O L DList with one, sell with allTM 5/37 BRODERICK ROAD, This property was two weeks away from being CARRUM DOWNS completed and was still in the middle of renovations when Lou brought his buyer through for a private 2 BED | 1 BATH | 1 CAR inspection. As the location was perfect for her, being close to Sale Price | $440,000 family, we were able to move forward with a deal and also customise the ongoing renovations to her exact specifications. A win for the vendor as he saved around $4000 on marketing, and a win for the buyer as she was able to save money on post purchase renovations! Daniel Marion Lou Collela 0433 121 182 0409 433 513

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LISTED AND SOLD BY S O L DList with one, sell with allTM 136 HEATHERHILL ROAD, KEY CAMPAIGN STATS FRANKSTON 6267 Online views 4 BED | 2 BATH | 4 CAR 84 Days on market 69 Sale Price | $600,000 $ Buyer inspections Private Sale Adam Dureau Scott Rowe 0403 736 761 0409 696 201

HOW MUCH DEPOSIT DO I NEED TO BUY MY FIRST HOME? This is a grey area when it comes to finance. the lender can also rest assured that they have While it seems like a pretty straightforward ample security on your loan. If you think this is question, it can be very difficult to get a achievable for you, then put on your savings hat, straightforward answer. and knuckle down for a period of time- you will thank yourself in the long term. A general rule of thumb is that you should save 20% of the purchase price. This way, you can HOWEVER (and this is a big however as it is a avoid dishing out thousands of dollars on Lenders point that many tend to overlook), you need Mortgage Insurance (LMI), and your smaller loan to consider the time it will take you to save. If is safer for both you and your chosen lender. your desired property is likely to experience considerable capital growth in the next 12 You might also hear the acronym ‘LVR’ thrown months, waiting until you have a larger deposit into financial conversations and, for those may be fruitless. By the time you’ve saved what unfamiliar, this can confuse the topic even was initially 20%, the purchase price may have more. LVR is your Loan to Valuation Ratio ie. the increased, and you will be left chasing your tail. percentage of money you borrow for a home loan compared to the value of the property. The BUY NOW, AND PAY LMI higher the LVR, the higher the risk. The more deposit you have, the lower your LVR becomes. Indeed, with Australia’s climbing house prices (the median across all capital cities currently sits Aside from the deposit, you also require funds to above $650k), saving the 20% deposit is nearing cover stamp duty, legal fees, establishment fees the impossible for many first home buyers. If you and the like. So while you may think that you have don’t think you can achieve this - don’t panic, built a solid nest egg for your deposit, much of there are other options. Many lenders will let this will quickly be chewed up with the associated you borrow up to 95% of your LVR, as long as costs of purchasing. you are willing to pay LMI on top of this. LMI is a one-off insurance payment that protects your Buying a house is starting to sound a little lender, in case you default on the loan. This bit painful, isn’t it? Not to worry, you do have will be calculated as a percentage of your loan options- all of which have their pros and cons. Let’s break these down so you can consider which home buying route is right for you. WAIT, AND SAVE THE 20% Gone are the days of borrowing 105% of the house value (we can thank the GFC for that). In the current market, having a 20% deposit is the ideal scenario. Not only is it safer for you (as the less you borrow, the less you are liable for), but

amount, and can vary depending on your LVR. As becomes responsible for the repayments; if they previously mentioned, while it may seem like you cannot service these, their security (own home) are splashing cash for nothing, paying LMI and is at great risk of being repossessed. Therefore, buying in with a lower deposit can sometimes be this lending method should be approached with a more beneficial option as you can break into care. It is recommended that the guarantor seek the market quicker and start accumulating capital independent legal advice before signing on the growth. dotted line. TRY TO FIND A GUARANTOR If, after much consideration, this option appears low risk, then it can be a great way for parents/ This is an awesome method for those who can family members to help loved ones break into easily service a loan, but for different reasons the merciless property market with little to no do not have money for a deposit (and the other deposit. associated costs). You can nominate a third party (usually a spouse or immediate family member) to So there you have it. While it is ideal to keep be a guarantor to your loan. Instead of the bank your deposit over 20%, and your LVR under 80, taking a deposit for added security, the guarantor sometimes this is just not realistic. There are would offer up their own security (generally plenty more ways to break into the market (ever utilising the equity in their own home). heard of rentvesting? ) so keep your hopes up, This option is not without risk. Say you fall sick, your eyes peeled, and your savings pumping. (experiencing a loss of income as a result,) and default on your loan. Your guarantor then David Fraser Finance Specialist M: 0411 519 937 E: [email protected] T: 13000 2 TANGO ACL 481374 | CRN 416601 461 Nepean Hwy, Frankston, VIC 3199 T: 13000 2 TANGO tangoloans.com.au Article by My Local Broker Disclaimer: The advice provided in this article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. We encourage you to consult a finance professional before acting on any advice provided in this article.

“Our money will make you dance!” TM We save you time, we give you choices. We work for you, not the banks. We find the most competitive & suitable loan to match your needs. We help you avoid the pitfalls when it comes to finance. T: 13000 2 TANGO tangoloans.com.au HOME LOANS | PERSONAL LOANS | BUSINESS LOANS | CAR LOANS

TOP 10 TIPS FOR BUYING AN INVESTMENT PROPERTY Whether you’re on the cusp of purchasing your very first investment property or are buying into your tenth or eleventh asset, the process can naturally be a little daunting. Markets shift so fast, and as with most investments, there can be a fair amount of confusion and risk involved – especially if this is your secondary income. Here we share ten top tips to guide you as you purchase your investment property. 1) THE RIGHT PROPERTY AT THE RIGHT PRICE 3) LOCK IN THE LIFESTYLE This is key – and although it sounds simple, The lifestyle offered by a property and its acquiring the ‘right property’ (see criteria below) surrounding location is key – as we naturally at the right price can be tricky. First, you need to want to live somewhere that makes us feel determine what you need, then think about the happy and fulfilled. Look for key drivers including value of the property – to you as an investor and a great shopping strip, trendy cafes, bars and in the long-term should you decide to eventually restaurants, good schools and green spaces. sell. Mitigating factors such as essential repairs When people feel connected to the culture of an and refurbishment, location and any planned environment they will pay more to be close to regeneration locally will influence the value. it. Safety is key too – a beautiful apartment in a Guidance from a specialist in this area is key dodgy part of town isn’t likely to be attractive to to avoid overpaying for the right property – or young professionals who want to be able to head choosing one that doesn’t suit your needs and is out without feeling worried about crime. unlikely to yield sufficient rental income. created a nice buffer to prepare for a rainy day, 4) FOCUS ON WHAT YOU CAN’T CHANGE whilst saving bucket loads in interest. You can always add value to a property through 2) LOCATION, LOCATION, LOCATION renovation and refurbishment – but it’s important to focus on the fundamental, underlying On the surface, this is a no-brainer – but there’s attributes that cannot be changed. Take into much more to location selection than meets the account important aspects such as street eye. There isn’t just one type of ‘good location’ – location, positioning, noise and lack of garden the location all depends on the type of property, space. It’s worth assessing floor plans side by the type of tenants you’re looking to attract side too – as a good layout will appeal both to and the future prospects of the area as a whole. renters and to buyers should you decide to sell in For example, if you’re looking to acquire a large the future. student flat, you’ll want nightlife and shops next door. If you’re investing in a larger family home 5) SCARCITY & DEMAND ARE KEY coffee shops, green spaces and good schools nearby will form a ‘perfect location’. The methodology behind scarcity and demand is simple: if there are a lot of people looking Choosing the CBD or best possible suburb for a particular type of property in a certain is undeniably a smart move – but be sure to area but there is a shortage of those properties delve a little deeper to identify smaller areas or available, you’re in for a win. Experts drive home streets within them that are prime for investment the message that investment properties should purposes. Consider zoning, too – if development always have an element of scarcity, ensuring is permitted you could find yourself with a huge that they will always be in demand. This protects block of flats built next door that significantly you from situations involving negative equity, affects the future value of your property. long-term vacancy and other issues that can significantly damage your profitability in the future.

6) CALCULATE THE COSTS higher. Carefully consider whether the property is being marketed to you based on tax benefits Cash flow is key – so when you’re considering a or rental guarantees. Tax benefits are useful – property for investment purposes it’s important but it’s rental income that will pay your bills and to think about how much it will cost you to provide your profit going forward. Be aware that own and manage it on a monthly basis. Doing rental guarantees are often built into the price of some quick calculations taking into account the property and may not be reflective of a real your ongoing mortgage costs, land tax, having market value compared to other properties at the a professional property manager on board and time of purchase. any regular bills and maintenance that needs to be carried out will ensure that you can keep up 9) MANAGE RISK repayments on your mortgage and gives you an idea of the amount of profit you can expect from Most investment properties should be viewed the property on a yearly and monthly basis. with long-term objectives in mind. The longer you can afford to commit to a property the better 7) MORTGAGE, EQUITY & INTELLIGENT DEBTS – as this enables you to build up equity which can then be used to grow your portfolio further. Don’t forget that banks also assess the property Investment in property involves a careful balance itself when deciding whether to lend – so it between risk and financial stability and security. needs to be an attractive prospect from their perspective, too. This means that throughout the 10) CHECK AGE & CONDITION BEFORE YOU BUY course of your search you’ll need to identify the types of properties banks love to lend against. Age and condition will be key factors as Think of this as a good thing – as largely it you search for your investment property. protects you from potentially risky investments. It’s important to take into account property depreciation (more on this here & here), but even 8) BEWARE OF OVERSUPPLY with that in mind large renovation tasks such as a new roof or structural work will significantly An increasing amount of housing stock is eat into your profit margins – and could wipe specifically being built for and marketed to them out altogether. It’s a savvy move to arrange investors – predominantly shiny new medium or a thorough inspection prior to purchase by a high-rise apartment blocks in CBD or suburban surveyor who can also give you an idea of the locations. This presents investors considering deprecation expenses you can expect to yield to those properties with the risk of oversupply – if offset your tax bill. all properties are sold at once, growth will be slower and competition for tenants will be much

GOOD PROPERTY MANAGEMENT IS ABOUT UNDERSTANDING YOUR NEEDS Choosing the right company to manage your investment property is a big decision. More importantly, you need peace of mind in the knowledge your property is in the best of hands. Our many years of experience have identified the following key aspects which our clients have outlined as being most important to them: FRANKSTON MORNINGTON MT ELIZA (03) 8781 3888 (03) 5971 0300 (03) 9776 3270 [email protected] [email protected] [email protected] WE WOULD LOVE TO BE YOUR AGENCY OF CHOICE

MAKE THE SWITCH Find out how we work better, call us today... We understand that as a property investor you are focused on the bottom line. We understand that even a few weeks vacancy each year makes a big difference. We understand the worry, anxiety and cost that poor tenant selection can cause you. We understand the impact that an interest rate rise can have on your cash-flow. We understand that unnecessary expenses affect your return dramatically. We understand that every dollar saved makes a big difference in the long run. We understand your need to create equity in your property so you can invest further. We understand your need to know that the advice you’re given about your investment property is reliable and trustworthy. We understand that communication from your property management team needs to be consistent and timely. We understand that you want your property manager to be proactive rather than reactive and you want to be guided by an experienced professional. We understand that you want an agency that prides itself on professional marketing and has access to the latest technology to ensure the best possible results, every time. We understand that you just want everything to be taken care of so that worrying about your investment property is one less thing you need to deal with. We understand that you want property investment to be easy and hassle free!

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