FREE T Y R PROPSEM ENT S E S AS
Melbourne Market Update Bridging the Superannuation Gap Downsizing There are more upsides than you think! Top 3 Renovation Tips for Beginners
1800 220 148
Cam’s Update W
Champagne or budgets - How did you bring in the new financial year?
elcome to our July edition of the Dovetail magazine. As we start the new financial year, it is a perfect opportunity to revisit our financial goals and plan for the year ahead.
With interest rates continuing to drop, an upcoming election and some legislative changes as at 1 July, it is certainly an exciting time to be in property! In this edition of the magazine, we look forward to touching on a number of topics that are relevant to this time of year, including; the superannuation legislative changes, a 12 month review of the Melbourne property market, and tips for your indoor renovation projects. Furthermore, I hope you enjoy reading our article on downsizing and our client and Kiva profiles. For those of you who have not had a chance to inform yourselves about the Victorian zoning changes as at 1 July, and how these may impact your property, I would encourage you to visit our website and download a free report (dovetaildevelopments.com.au/freespecialreports). At the commencement of a new financial year, I personally like to reflect on the following questions - I hope you find these thought provoking and useful when prioritising your FY14 goals: 1. 2. 3. 4. 5.
On a scale of 1-10 how satisfied am I with my current financial situation? What would I like to see change over the next 6-12 months? If there were no constraints where would I start and what would I do first? What are my options, resources and support networks for achieving my goal? How will I know when I’ve reached my goal and how will I celebrate my success?
At Dovetail, we wish you all the very best for the financial year ahead and we look forward to hearing your success stories! Warm regards, Cameron Bloomfield Director, Dovetail Developments firstname.lastname@example.org 1800 220 148
MELBOURNE MARKET UPDATE
Are we starting to see a light at the end of the tunnel? Over the last 12 months, Melbourne’s property market has bounced back with a reported 5.1% increase
BY B. CHUA
DID YOU KNOW...? PROPERTY SUBDIVISION - THE TOP 7 BENEFITS
1. Release potential hidden profits from your property. 2. Stay in your own property and neighbourhood. You do not need to sell and move away. 3. Profits could be used towards the operation that you need to improve your overall wellbeing.
espite Melbourne’s housing market being a bit sluggish over the last 12 months, the current data is starting to show some positive signs, particularly in the middle and outer suburbs. For the first quarter of 2013, suburbs like Brighton, Balwyn, Balwyn North, Doncaster and Camberwell have recorded the strongest growth. Doncaster delivered an annual growth of 17.2%, shifting the median house price to $830,000 from $708,000. Other top performing suburbs were: Brighton at 12.5%, Balwyn at 11.4%, Northcote at 9.9% and Camberwell at 8.7%.
We`re seeing the best returns from houses in the inner ring and units in the middle and outer rings of Melbourne, however we’re continuing www.dovetaildevelopments.com.au
to see an oversupply of apartments in Melbourne’s CBD and inner suburbs Over the last 12 months the medium house price in Melbourne has increased by 5.1% from $561,000 to $534,000. At present, for those considering subdividing and building, the highest demand suburbs for 2 bedroom townhouses in Melbourne are in Reservoir (the medium townhouse price is $385,000), Glen Waverley ($549,950), Croydon ($345,000), Mount Waverley ($480,000) and Bentleigh East ($655,000). The Real Estate Institute of Victoria (REIV) reports that the market will continue to recover, given the increasing demand for affordable housing, population growth and low interest rates. The Melbourne market will certainly be one to watch over the coming 6 months!
4. Utilise part of your funds towards a brand new kitchen and bathroom that you’ve always wanted. 5. No more mowing the lawns or maintaining the unused gardens. 6. Take that overseas trip of a lifetime or fly your family out to Australia to visit you. 7. Achieve all of the above whilst continuing to hold your property ‘debt free’. For Your Free Property Assessment Valued At $995, Call Today on 1800 220 148
Surprising Fact #1: Melbourne has the largest tramway outside Europe and fourth largest in the world.
BRIDGING THE SUPERANNUATION GAP Why is it that some of the most important things in life, we often avoid and put off as long as possible? For example, going to the dentist, filing important paper work and revisiting our superannuation? BY J. VINCE
uperannuation is a one trillion dollar business and arguably one of the biggest social issues in Australia. Recently our research team at Dovetail stumbled across the following statistics: • 25% of Australians aged between 65 to 69 are still working • Post the GFC, 14% of Australians intend to work until they are 70 years or older • An Australian couple will need $56,339 per annum for them to retire comfortably • 1 in 4 own their house, however they don’t have enough money in retirement • 75% of retirees are on some form of welfare
The Australian Government has recently announced a long-term strategy that aims to address some of the issues raised above, by gradually increasing the compulsory employer superannuation contribution rate from 9% to 12% by 1 July 2019. For those under 50, a good piece of advice is to dedicate at least 30 minutes per year to visiting the status of your superannuation fund.
To assist you, there are a number of websites, such as Money Smart (www.moneysmart.gov.au/toolsandresources/calculators-andtools/ superannuation-calculator) that can give you foresight and a quick injection of inspiration to put your super and retirement plan firmly on your priority list.
So, what if you do not have time on your side, what are your options? Sadly, we often see many of our clients in this situation, however rather than hoping to win Tattslotto where the chances are only 1 in 45 million, we have a solution that 1 in 5 may be able to benefit from, which enables you to continue living in your home/ community and secure the cashflow you need, just by refiguring the size of your property. To learn more, see Frank and Joan’s case study.
Quick Facts – • Frank is 67 years old, Joan is 65 years (married for 46 years) • Owned their corner block, brick 3 bedroom house for 29 years • In 1984, they purchased the house almost new for $58,000 • In 2012, their 655 sqm property was worth $652,000 (original bathroom & kitchen) • They were spending $60 per fortnight having it mowed and maintained • In June 2012, they sourced a seniors loan for $79,500 against their property • Dovetail was engaged to subdivide their block, and provided a trusted referral for their bathroom and kitchen renovation • Whilst the renovations took place, Joan had a hip operation with the funds • By March 2013, their property was subdivided and they decided to sell off the vacant land for $350,000 and they had their property revalued for $620,000. • They paid off the $79,500 loan and put the remaining $270,000 towards their retirement fund.
DOWNSIZING THERE ARE MORE UPSIDES THAN YOU THINK! BY G. SMITH
lanning Minister Matthew Guy recently noted that Melbourne’s population is growing by 1500 people per week, which is more than any other State in Australia, and equal to the combined growth of Brisbane, Adelaide, Gold Coast, Newcastle and Canberra. The Australian Bureau of Statistics (ABS) has observed Melbourne being the fastest growing Australian capital city for the last 11 years, and it is anticipated that by 2050, Melbourne’s population will have reached between 5.6–6.4 million. However, what is more interesting is that as a community we are changing. In 2010 a report from the Australian Institute of Health and Welfare (AIHW) revealed that the average age of first time mothers increased to 30 years old and the proportion of older mothers (classed as 35 and over) continues to increase. We’re seeing the average family size reduce to 1.8 children and the ABS predicts that we’ll continue to see a steady decline in the size of our households, as by 2026 the average house will consist of a total average of 2.3 people. Naturally, during this period Melbourne’s property landscape has evolved to cater for our expanding population, smaller family sizes and new lifestyle preferences.
As you would be aware, historically, the preferred Melbourne residence has consisted of a single dwelling property, with generous bedrooms, separate living spaces and large a backyard, however what we have been seeing in recent years is a shift towards smaller dwellings, such as apartments and townhouses. This external observation is supported by ABS statistics that show from 1991 to 2001 nearly 45% of all new dwellings were either attached or semidetached dwellings.
Inner ring Melbourne Housing Stock
• Houses • Other residential Building
Furthermore, we’re now seeing that only 59% of all housing stock in the inner ring of Melbourne is stand alone houses, with the remaining 41% being apartments, units and townhouses. So, what does this all mean, particularly for those who enjoy their family homes, and have no interest in moving, but would like to capitalise on this shifting market? We would recommend that subdividing could deliver a win/ win solution for you and the demands of the market. Subdividing was highlighted as one of the top four winning strategies for property owners and investors ‘Smart Property Investment’ magazine in May 2012, and together with the new Victorian zoning reforms effective as at 1 July 2013, it could prove fruitful for property owners, those seeking smaller dwellings, and our ever-growing Melbourne population.
Surprising Fact #2: Melbourne is the only city in the world that has five international sporting facilities in the heart of its central business district.
Source: ABS Census 2011
TOP 3 RENOVATION
TIPS FOR BEGINNERS
The best way to add value to a property is through renovation. Whether the market is stable or in the doldrums, renovating a property is a sure way to weather current property conditions. BY BAYSIDE BUILDING SERVICES
items varying from floor coverings to plaster patching compounds and textured paint.
roperty owners who would like to boost the value of their homes and engage their first project should benefit from the following renovation tips below.
Safety must always come first. When renovating a property, it is paramount to protect yourself and your family by wearing the correct Personal Protection Equipment (PPE) and ensuring your work environment is safe. Before you start renovating, always remember: ‘E.A.S.E’ (Eyes, Airway, Skin, Ears) • Wear goggles or safety glasses to protect your Eyes • Wear a dust mask to protect your Airway and your Lungs • Wear gloves or even a disposable suit to protect your Skin • Wear ear muffs or ear plugs to protect your Ears from excessive noise
Constantly check your work area to ensure the safety of all personnel involved in the project.
Common Dangers. Paint can contain toxic chemicals. When preparing to paint, sanding walls or cleaning up, we would recommend that you adhere to the industry standard of wearing a dust mask that prevents inhaling toxic dust from your work. The ideal mask will have two straps as it holds the mask to your face better while eliminating dust inhalation. We found that single strap masks tend to allow dust past them and are only suitable for non toxic dust activities.
Inhalation of asbestos. Asbestos can often be found in older styled houses. It was used as a filling agent in a wide range of
If you are working on these surfaces in any way, remember to always protect yourself by wearing a two strap disposable mask or capsule mask and gloves. If a product containing asbestos has to be removed, we recommend that you engage professional services to carry out the work (Asbestos has to be bagged and taken away to be safely disposed of).
Bayside Building Services & Management is Dovetail’s preferred renovation partner http://baysidebsm.com.au 1800 220 148
BOUTIQUE APARTMENTS: 198B DORSET ROAD, BORONIA BY C. BLOOMFIELD
ituated approximately 29 km east of the Melbourne CBD, within the municipality of the City of Knox, Boronia has been named as one of the top 5 most affordable suburbs for apartments (*REIV) in Melbourne for 2012. 198B Dorset Road is within a short walking distance to the Boronia Mall and Railway station. In addition, the project is located close to primary schools, recreation facilities and a short drive to Knox City Shopping Centre. The apartment development will consist of ten spacious 2-bedroom apartments and eight 1- bedroom apartments. The 2-bedroom intend to provide spacious and comfortable
living areas which are cost-efficient, whereas the 1- bedroom apartments are intended to target first home buyers, retirees or new property investors. A town planning permit has been submitted and we are
waiting for a planning decision. To find out more or to enquire about investing into what will be a positively geared opportunity, contact Cameron TODAY ON: 1800 220 148.
OUR NEW FINANCIAL YEAR GIFT TO YOU! For the month of August, we are giving away 5 subdivision assessments (valued at $995) This includes:
• A non-obligation home visit from Cameron Bloomfield, Director of Dovetail Developments • A detailed feasibility and subdivision market assessment of your property • Conceptual sketches and project timeline • Renovation concepts and colour schemes of your existing home (if required)
To Secure, Call Today On: 1800 220 148 www.dovetaildevelopments.com.au
PROFIT FOR PURPOSE
Subdividing is our game, sharing is part of our name
t Dovetail Developments we are committed to making a difference to our local and global communities. In addition to educating and changing the lives of our clients, our overarching purpose is to make a positive impact on the communities and charities that inspire us. At the conclusion of each of our projects, 10% of our profits are distributed to the following: 4% to micro
financing third world entrepreneurs; 3% to mentoring Australian entrepreneurs; 2% to disadvantaged Australian youth; and 1% to celebrating our team’s success and their passions.
BY B. CHUA
One of the organisations who we actively support KIVA, a non-profit organisation whose purpose is to fight poverty and connect people through lending. Kiva leverages the internet and a global network of microfinance institutions to empower individuals around the world through its lending scheme.
Learn about Eva Marie - who we are currently sponsoring
va Marie based in the Philippines, holds on to her dream of a better future for her family. She is optimistic and confident of achieving a better life, thanks to the loan she received from KIVA. The 25,000 Philippine Peso loan is Eva Marie’s first step towards reaching her goal. Eva used the funds to purchase additional ingredients for her 6-year old restaurant in Tanjay, Negros Oriental, located in the central part of the Visayas island. Just like many aspiring small entrepreneurs all over the world, Eva Marie believes that great things start from small beginnings, and she is determined to reach her goal. “I am fortunate to find people in other parts of the world who care and are ready to extend a helping hand to less fortunate but hardworking individuals,” she said. Eva Marie’s loan was supported through the Negros Women for Tomorrow Foundation (NWTF), a non-governmental organisation
established with the aim of helping women achieve self-sufficiency, particularly in the province of Negros Occidental’s low-income communities.
Surprising Fact #3: Melbourne has been voted the “Most Liveable City” since 2011
Published on Aug 15, 2013
After six weeks of research, writer’s block and many reviews, I’m thrilled to share a nearly preview of our first edition of the Dovetail Ma...