CY Magazine - Issue 59

6 AUGUST 2016 | ISSUE 59

Modern Paradise Behind the north facing tropical gardens in the private pocket of Perth´s premier coastal suburb lies a modern paradise.

GET INSIDE 85,000 HOMES ADVERTISE YOUR PROPERTY IN CY MAGAZINE

FR E E E V ER Y FO R T N I G HT

P E R T H’ S BE ST P RO P E R T I E S F OR SA L E OR LE A S E

WELCOME

Steven Currie - Director, Caporn Young Estate Agents

MOST SELLERS SEEING 6-FIGURE PROFITS Every quarter a very interesting report lands on my desk entitled “Pain & Gain”. I take particular interest in this report because it zooms in on individual property sales, rather than focusing on ‘median house price’ figures, which are so easily skewed by lower or higher numbers of properties sold at the top or bottom end of the market.

The report, produced by CoreLogic, matches current and historical sales data to determine how many owners made money when they sold, and how many made a loss. At the end of the day, this is what’s important to our vendors.

Overwhelmingly, the latest report shows that Perth property owners made a sizeable profit when they sold in the last quarter. Take Melville for example: 93.2% of recent sales delivered a profit for the owner. The median windfall was $300,000 – a significant amount of money that any investor would be happy to walk away with.

For the 6.8% of properties that sold at a loss, the median was $57,000. The big difference between those who made money and those who lost was the amount of time they held the property for. Profit-making properties in Melville were held for an average of 11.4 years, while loss-making properties were held an average of 4.4.

CY Magazine is published by: Caporn Young Estate Agents - Claremont Head Office 4/355 Stirling Highway Claremont, WA 6010 For advertising or other enquiries, please contact Patricia Cheah on (08) 9385 5559.

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A similar pattern is seen throughout Perth. In the last quarter in Claremont, 76.2% of properties sold for a profit (the median being $205,000); In Cottesloe it was 77.8% (median profit being $471,500); In Fremantle it was 81.7% (median $136,00). In all of these cases, the average hold period was 9 – 12 years.

That doesn’t mean you can’t be the exception to the rule. Well managed listings, with a sound strategy and a quality agent behind them, have every chance of generating success. To find out how we can get you the best possible result in the current market, reach out to your local Caporn Young representative for a free consultation.

COVER: Paradise found at 3 Boreham St, Cottesloe. Contact Richard Young on 0412 385 056 for details.

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A S K G AV I N

Gavin Hegney - Independent Property Analyst

HOW DO YOU REALLY KNOW IT’S THE RIGHT CHOICE? Hello again and welcome to the second article in this series exclusively for Caporn Young. Thank you also for all the feedback and questions from the first one. It certainly seems many people are making decisions around their property and are looking to understand what and where to look for investment.

The feedback prompted me today to write about this exact topic, how to make a good decision and what to look for when investing, be it a separate investment property or an investment in your own home .

Over the years I have been asked this question repeatedly, where’s a good suburb to invest in?

In fact it was the repetition of this need that prompted me to set up one of the first buyers advisory services in Perth many years ago which I have since sold.

When it comes to property we have our own needs and priorities and we make our decisions through what we know, from our experiences and what they have taught us. When it comes to residential property as an investment we often have both unrealistic and realistic expectations.

What constitutes a good investment varies greatly for all of us.

Firstly, when buying residential property for investment purposes we need to determine whether we are chasing capital growth or income. I

have found capital growth is key in the longer term, but it is possible to get both.

Rather than trying to chase the next hot suburb and get in on the ground floor I tend to follow a formulae in the property I am looking at that gives me acceptable growth and reasonable income which is usually used to service debt.

Put simply, I look at the underlying land value of the property and aim to buy a property with approximately 60% plus of the total value as the land component. When it comes to units and apartments they too have an underlying land value component which can be calculated.

It is land that has driven capital growth over the years as it is generally land that appreciates in value whilst the buildings component depreciates at about 2% pa, excluding any building cost increases.

To also assist with capital growth I look at an area which is a good long term proven performer which has some form of multiplier to value.

An example of this would be the increased amenity of transport, shopping or recreation. In the past this has taken the form of such things as decommissioning the Fremantle Prison or the opening of Coogee Marina as examples. In the future it is such things as rezoning of areas to more valuable uses or redevelopment

of football ovals such as Claremont or East Fremantle and the amenity this will bring to the area. The drivers of growth are diverse and bring with them varying degrees of scale.

There are many other important aspects such as choice of ownership and financing structure, appointment of managing agents and depreciation reports which all contribute to the outcome formulae.

“The person who insists upon seeing with perfect clearness before they decide, never decides.”

Finally I assess and reassess my decision, benchmarking it against the market, alternative investment options before I fine tune my thinking and process.

Ideally I want to buy before or during these changes occur to capitalise on the uplift in value.

Thanks again and I both look forward to and welcome your feedback and experiences.

When it comes to income or rent, I typically look for a yield of approximately 4% plus, bearing in mind this is gross and may only result in 2% plus net. This is negotiable depending on how good the capital growth potential really is.

Until next time, enjoy your time.

Which brings me to the title, so how do you really know it’s the right choice?

Time, experience, an attitude to make some mistakes and learn and don’t take it all personally or let it go to your head, all assist to give some clarity to the decision, but the person who insists upon seeing with perfect clearness before they decide, never decides.

Some day I will tell you about all my mistakes and missed opportunities.

Fortunately there have been a greater number of things go right which puts me here today.

Gavin Hegney askgavin@capornyoung.com.au Gavin is a guest writer for the magazine. The views expressed are his and do not necessarily reflect those of the company.

N TI O

COTTESLOE

C AU

PARADISE FOUND

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3 BOREHAM STREET, COTTESLOE Behind the north facing tropical gardens in the private pocket of Perth´s premier coastal suburb lies a modern paradise. Designed by esteemed architect Tim Wright, this charismatic contemporary home offers the recognisable form and the eminent functionality synonymous with Wrightfeldhusen properties. Light filled, spacious and pragmatically designed and built, modern coastal living has never looked better.

AUCTION On site Saturday, 27th August at 12:30pm _____________________________________________________________________

RICHARD YOUNG 0412 385 056 richard@capornyoung.com.au

INSPECT

Saturdays 12:00-12:30pm Thursdays 5:30-6:00pm _____________________________________________________________________ KEY FEATURES

Swimming pool Cabled Foxtel Studio/guest quarters

CLAREMONT | FREMANTLE | APPLECROSS

CHRIS DAY 0426 819 721 chris@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

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EAST FREMANTLE

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VILLAGE LIFE ON GEORGE ST

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14 GEORGE STREET, EAST FREMANTLE In the little urban village of George St is one of the earliest homes in Plympton, with thick walls, high ceilings, wide jarrah boards and a verandah sitting above the street by Glasson Park. This limestone classic is wonderfully flexible for its age, with zoning for residential and/or commercial use. Layers of history and a range of options for life and work make this a rare find in a thriving community by the river.

AUCTION On site Saturday, 20th August at 10:30am _____________________________________________________________________

STEFANIE DOBRO 0409 229 115 stefanie@capornyoung.com.au

INSPECT

Saturday, 6th August 10:00 - 10:30am Wednesday, 10th August 5:30 - 6:00pm Saturday, 13th August 10:00 - 10:30am _____________________________________________________________________ KEY FEATURES

Early stone home in Plympton ward Mixed-use zoning Very close to the river

CLAREMONT | FREMANTLE | APPLECROSS

MICHAEL HARRIES 0434 076 229 michael@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

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FREMANTLE

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A DEVELOPER/INVESTORS DREAM

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17 BLINCO STREET, FREMANTLE A rare opportunity exists to develop a 2152sqm (approx.) property only minutes from the heart of Fremantle. The sale includes approval from the City of Fremantle and architectural designs to remodel the existing front building on the property to townhouses. Warehouses at the rear of the property can either be rented out or redeveloped into apartments.

AUCTION On site Saturday, 27th August at 10:30am _____________________________________________________________________

RICHARD YOUNG 0412 385 056 richard@capornyoung.com.au

INSPECT

Saturdays 10:00-10:30am Wednesdays 12:00-12:30pm _____________________________________________________________________ KEY FEATURES

Land zoned R40/R60 Potential for four storeys of apartments Two warehouses to rent commercially Owners will lease back for 12 months

CLAREMONT | FREMANTLE | APPLECROSS

CHRIS DAY 0426 819 721 chris@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

FREMANTLE

AN IDYLLIC FREMANTLE HOME

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22 FINNERTY STREET, FREMANTLE This is a home where memories are made, cherished and shared. As you venture further into the home, it reveals the treasures that sets this home apart: A capacious living room sprawling up to the kitchen and dining rooms with copious louvered windows letting the views of Fremantle, the harbor and river ´spill´ into the home.

FOR SALE From $1,295,000 _____________________________________________________________________ INSPECT

Saturday, 6th August 1:00 - 1:30pm Wednesday, 10th August 5:00 - 5:30pm _____________________________________________________________________ KEY FEATURES

John Curtain catchment zone Flexible layout of home Recycled historical timbers throughout the home

CLAREMONT | FREMANTLE | APPLECROSS

ROMM NIBLETT 0439 911 637 romm@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

PEPPERMINT GROVE

CHARMING EUROPEAN STYLING

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41 LEAKE STREET, PEPPERMINT GROVE Located in Perth´s most prestigious suburb of Peppermint Grove, this beautiful home is a delightful discovery. Hidden from the street and situated on an elevated 1219 sqm block just 150 metres to the river´s edge, a lovely home which highlights the classic charm and timelessness of an aesthetic synonymous with style and elegance.

FOR SALE Mid - High $3,000,000’s _____________________________________________________________________

RICHARD YOUNG 0412 385 056 richard@capornyoung.com.au

INSPECT Saturday, 6th August 2:00-2:30pm _____________________________________________________________________ KEY FEATURES

Lift Expansive open plan living Multiple living areas Palatial master suite Rear lane access

CLAREMONT | FREMANTLE | APPLECROSS

CHRIS DAY 0426 819 721 chris@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

SOUTH FREMANTLE

ROMANTIC CHARACTER HOME

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115A HAMPTON ROAD, SOUTH FREMANTLE This renovated character home offers plenty of comfort and charm, including two double bedrooms, a formal living room, and a renovated kitchen and free-flowing living area. Close to the buzzing South Freo café strip, and with a generous backyard, it combines a great location with modern conveniences, period appeal and room to grow.

FOR SALE Please call for details _____________________________________________________________________

MICHAEL HARRIES 0434 076 229 michael@capornyoung.com.au

INSPECT

Saturday 6th August, as advertised Saturday 13th August, as advertised _____________________________________________________________________ KEY FEATURES

Tuck-pointed facade & paved front yard High ceilings & original polished jarrah floorboards Near-new recycled jarrah kitchen designed by Raw Edge Furniture

CLAREMONT | FREMANTLE | APPLECROSS

STEFANIE DOBRO 0409 229 115 stefanie@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

WEMBLEY

CHARACTER STYLE, MODERN LIVING

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44B CONNOLLY STREET, WEMBLEY This free-flowing contemporary home offers generous living spaces complemented by four zoned bedrooms and gorgeous gardens with an inviting alfresco area and below-ground pool, ideal for summer.

With great street appeal, beautifully designed interiors and lovely gardens, it ticks all the boxes for buyers seeking a sanctuary in a convenient and central location.

FOR SALE Please call for details _____________________________________________________________________ INSPECT

Wednesdays 5:30 - 6:00pm Saturday, 6th August 11:00 - 11:30am Saturday, 13th August 1:00 - 1:30pm _____________________________________________________________________ KEY FEATURES

Low-maintenance tropical gardens Formal living room with double-height ceiling Minutes from Lake Monger

CLAREMONT | FREMANTLE | APPLECROSS

CRAIG GASPAR 0413 929 999 craig@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

WEMBLEY

A HOME TO FALL IN LOVE WITH

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134 ESSEX STREET, WEMBLEY This renovated four-bedroom mid-century house will appeal to buyers looking for bright, immaculate interiors and an open-plan living area with easy access to an alfresco area and pool, just in time for the summer ahead. A blend of period features and contemporary additions, including a beautifully appointed kitchen, modern bathrooms, and a vast family room, make this a free-flowing and very liveable home.

FOR SALE Please call for details _____________________________________________________________________ INSPECT

Sneak Preview Saturday, 6th August Saturday, 13th August 2:00 - 2:30pm _____________________________________________________________________ KEY FEATURES

Abundant period features including polished jarrah floorboards & original stucco walls Extensive security including monitored alarm system Double carport & single garage

CLAREMONT | FREMANTLE | APPLECROSS

CRAIG GASPAR 0413 929 999 craig@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

WEMBLEY

MID CENTURY DELIGHT

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40 MARLOW STREET, WEMBLEY Located on a neighbourly street between city and beach, this warm and welcoming home blends period charm with modern convenience, and is surrounded by appealing, low-maintenance gardens. With three good-sized bedrooms and two renovated bathrooms, it has plenty of space, and a bright and airy feeling throughout. Set behind a perimeter fence, the home has a Mediterranean-style side courtyard, and paved alfresco area to the rear.

FOR SALE Please call for details _____________________________________________________________________ INSPECT

Thursdays 5:15 - 5:45pm Saturdays 12:00 - 12:30pm _____________________________________________________________________ KEY FEATURES

Abundant period features including polished jarrah floorboards & original fireplace Private & secure, with double carport

CLAREMONT | FREMANTLE | APPLECROSS

CRAIG GASPAR 0413 929 999 craig@capornyoung.com.au

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

SOUTH PERTH

PERFECTION. PERIOD.

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132 DOUGLAS AVENUE, SOUTH PERTH FOR SALE

Please call for details

INSPECT

Saturdays, as advertised

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645

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CONTACT Adam Piller 0402 456 485

WEMBLEY

Superbly maintained, faithfully restored and stunningly renovated, this 1929 South Perth cottage is nothing short of period perfection. The charming street presence, a cottage garden and the secure double carport are just a hint of what is beyond the leadlight front door and timber windows.

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HIDDEN ART DECO TREASURE

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177 HARBORNE STREET, WEMBLEY This lovingly restored character home offers generous living spaces, an abundance of Art Deco charm and gorgeous, secluded gardens front and back, plus a newly renovated contemporary kitchen. Located close to public transport, the freeway, Lake Monger, Leederville and Subiaco, it offers an appealing blend of period charm and modern convenience, set within peaceful tropical gardens.

CLAREMONT | FREMANTLE | APPLECROSS

FOR SALE

Please call for details

INSPECT

Sneak Preview Saturday, 6th August Saturday, 13th July 3:00 - 3:30pm

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CONTACT Craig Gaspar 0413 929 999

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

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AS PRETTY AS A PICTURE

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3 BASSETT STREET, WILLAGEE

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WILLAGEE

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Astute investors, first home buyers and even down-sizers seeking a savvy renovation opportunity will all be left salivating at the prospect of this charming 2x1 character residence that is immaculately presented throughout and boasts R20/60 zoningl in the form of the City of Melville´s "Willagee Structure Plan." Spacious backyard and stunning inland views. Location, location!

FOR SALE

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Closing Saturday, 13th August at 4:00pm

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INSPECT

By appointment

CONTACT

Siobhan Micale 0410 085 174

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CHARMING FAMILY POTENTIAL

UC TI O N

WILLAGEE

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6 BASSETT STREET, WILLAGEE

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You will fall in love with this delightful 3 bed character home on a spacious block with R20/60 zoning, so close to all of your everyday amenities including parks, schools, shopping, transport and even Fremantle. Three living areas, free-standing games room, powered workshop and a huge backyard, just some of the many features here.

AUCTION

1 814

On site Saturday, 20th August 12:30pm

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INSPECT

By appointment

CONTACT

Siobhan Micale 0410 085 174

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R FO A SE

MOUNT CLAREMONT

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FAMILY GRANDEUR

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77B ALFRED ROAD, MOUNT CLAREMONT Ascend the driveway and be captivated by this magnificent near new luxury appointed residence in one of Perth’s most sought after suburbs. Representing a gold class standard of living this home of contemporary distinction was clearly designed for either a family or professional couple.

CLAREMONT | FREMANTLE | APPLECROSS

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FOR LEASE $945 per week

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INSPECT

By appointment

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CONTACT Patrick Heenan 0421 199 685

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

RENTAL REVIEW

Lee Fitzgerald - Licensee | Property Management Team Leader

PHONES RINGING HOT FOLLOWING ELECTION The last few weeks have brought on an extraordinary spike in investor activity - including a 700 percent increase of leasing appraisals at Caporn Young.

Negative gearing creates an incentive to invest, by providing an opportunity to offset losses against the owner´s salary or wages, reducing their overall tax obligation.

It seems investors are collectively springing into action following the Federal election. Elections always cast a sense of uncertainty across all businesses (customers tend to ´wait and see´ before making major commitments) but the leasing market was especially impacted this time around, with much of the campaign battle fought around negative gearing.

Now that existing policies are set to stay in place, investors are once again feeling confident. And given the uproar against the suggestion it be reneged or grandfathered, it´s unlikely to be a campaign topic again.

If you too are now looking to start or build a rental portfolio, you´re welcome to give me a call to discuss your plans.

FOR LEASE HOT PROPERTIES ARDROSS 2/6 Henley Road

$595 per week

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ATTADALE 40 Cawston Road

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FREMANTLE 21 Hubble Street

Call for details

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FREMANTLE 16 Little High Street

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SUBIACO 23/200 Rokeby Road

$530 per week

Call for details

EAST FREMANTLE 4/37 Preston Point Road

$680 per week

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$425 per week

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SUBIACO 4/2 Brigid Road

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SUBIACO 8/3 Wexford Street

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$450 per week

Call for details

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WHITE GUM VALLEY 15a Simper Crescent

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Call for details

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For all enquiries, please contact Caporn Young’s Leasing and Property Management team on 9385 5559.

CLAREMONT | FREMANTLE | APPLECROSS

www.capornyoung.com.au | 08 9385 5559 |

/capornyoung

Don’t wait for a crowded spring market. With less competition from other sellers and highly motivated buyers, winter is a great time to sell.

NOW TAKING LISTINGS FOR AUGUST CALL 9385 5559 TO SPEAK WITH YOUR LOCAL CY AGENT

9385 5559 www.capornyoung.com.au

CY WINTER 2016

Winter is the season to be noticed.