THE BULLETIN MOOROOLBARK EDITION 2, 2018
A message from Executive Chairman, Rob Fletcher We saw a tightening of supply across the cooler Winter months and in many cases, buyers have been constrained on what they can spend due to the widening clampdown on mortgage lending. However, low interest rates, strong employment growth and strong population growth continue to be a positive foundation for the housing market. AMP chief economist, Shane Oliver, believes that some parts of the Melbourne market may hold up better than others going into 2019. Melbourneâ€™s outer perimeter, for example, continues to grow. The REIV reports that the median prices for both houses and units have risen over 10.5 per cent from a year ago. REIV President, Richard Simpson notes that, â€œauctions continue to be popular all over Melbourne, but clearance rates have fallen from the lofty highs of early 2017. Negative chatter about the future of the sector coupled with stronger lending controls by financial institutions has created some uncertainty and vendors need to be realistic with their price expectationsâ€?. This is an important reminder, particularly as we should see an increase in stock levels as we move further into the peak Spring selling season. Our team would be thrilled to provide a complimentary appraisal of your home or simply have a chat about the market. We look forward to being of service to you soon!
Rob Fletcher firstname.lastname@example.org 0411 222 988 | 9836 2222
In this Edition
Sell your home faster this Spring!
Some of our favourite local cafes
Lilydale is located 36 km east of the CBD. Lilydale is a residential and industrial suburb located on Melbourneâ€™s eastern fringe. The suburb has a number of industrial estates including the Melba Industrial Park and Cave Hill Industrial Gardens and has employers such as Olex Cables. The suburbâ€™s labour force is concentrated in the wholesale and retail trade and manufacturing sectors. The area also features the Lilydale Lake Reserve Lilydale and District Hospital the terminus of the suburban railway line and the Swinburne University of Technology - Lilydale Campus.
Dwelling Types Other 1% Semi Detached 18.3%
Source: members.propertydata.com.au 28/8/17-28/8/18 and reiv.com.au June 2018 Quarter
Rent vs Own Other 1.4% Rent Private 13.9% Rent Government 1.8%
Own 35.2% Purchasing 47.7%
Median Sale Price
Median Sale Price
Sell your home faster this Spring! Known as one of the best times of year to sell your home, Spring is always a busy period for the real estate industry. The weather is warmer, our mood is brighter and a flurry of properties hit the market. If you’re planning to take advantage of the Spring selling season, it’s essential to give your home the best possible chance of attracting new owners. Here’s how. 1. Think like a buyer! Put yourself in the shoes of a potential buyer and look at your home through their eyes. Try and think about the tastes and requirements of the type of person who might buy your home – are they likely to be a family, professional couple or investor? Consider whether the layout, décor and styling of your home is appealing to your target market. 2. Paint & Flooring It’s a great idea to give your property a fresh coat of neutral paint colour, to ensure your home appeals to the largest possible audience. Many potential buyers want to see a blank canvas when they’re house hunting, where they can inject their own personality. It’s important to also repair any nail holes or other damage before starting your paint project and don’t forget the ceilings and trim! If you have carpet that looks tired and threadbare, it’s a good idea to have them replaced, if your budget permits. At the very least, professional carpet cleaning with treatment for stains can make a huge difference in brightening up a room. Tiles and floorboards should be thoroughly swept and mopped, and any hardwood floors that are scratched or have lost their sheen should be refinished or replaced as required. 3. Declutter! It can be one of the most difficult aspects of preparing your home for sale, but one of the most important. Any items you don’t regularly use, are broken, damaged or simply take up too much space, need to be cleared out, donated to charity or temporarily stored elsewhere. You need to be able to show off your home’s features and create a spacious feel. In addition, this will help you when it’s time to move as well! 4. De-Personalise Over the years you will have spent time creating a home that suits your own style, filling it with memories. When it comes time to preparing for your next chapter, it’s important to spend the time to eliminate personal effects so that your home becomes a place where potential buyers can envision themselves living. In particular, replace personal photographs with some generic, tasteful artwork. 5. Let there be light! Good lighting is important as it can make your home feel more spacious and enhance its features. It may be worth investing in some brighter lightbulbs for maximum impact – just not so bright that they appear clinical! Of course, ensure that natural light can stream through the home by opening up curtains and blinds when it comes to open day.
6. Add fresh scents Use beautiful scented candles and diffusers throughout the home, particularly in the living area, master bedroom and master bathroom. Simple, fresh scents are ideal, such as orange, lemon, pine, basil, vanilla and cinnamon. 7. Home Styling Engaging a professional property stylist can ensure that your home achieves the right first impression with potential buyers. They can view the spaces in your home objectively, and style it so that it can appeal to a wider demographic. They donâ€™t have your emotional attachment to the property, yet theyâ€™re able to make it feel like a potential home for a broad range of buyers. The ability to draw that emotional response from a potential buyer makes engaging a home stylist a worthwhile investment, to ensure you get the maximum sale price.
The advantages of home styling!
After Image: Grace & Co. Property Styling
Detonate or Renovate and Depreciate The renovation strategy is not a new one for property investors. There are many high-profile renovation gurus’ in Australia and a plethora of renovation shows. Many of those shows have come under fire for their end numbers and the effectiveness of the overall spend when it comes to market valuations and rental appraisals. There’s certainly a risk of overcapitalisation, as well as hidden problems that materialise during an inspection such as plumbing and electrical problems. However, a renovation can be a fantastic way to increase cashflow through rental appreciation and equity via an increased market valuation. On top of this, renovation expenses are almost all depreciable and with the changes to plant and equipment deductions, it’s one key way to ensure you’re able to claim your division 40 deductions. Let’s look at a real case study. The renovation was completed by specialist Melbourne based renovation company Property Revive Group, run by Felicity Maxwell. Property Revive has been working with investors for many years to grow their investment returns through various renovation strategies. Property No. 1 – Hawthorn This property is a 2 bed 1st floor apartment within a complex built in the 1960s. It was achieving $390 per week rental, but commonly suffered vacancies. It was purchased for $520,000 by an investor through a super fund. The renovation works over a two-and-a-half-month period consisted of: Phase 1: 3 weeks • Full internal repaint • New flooring – carpet and vinyl • Bathroom makeover – vanity, tapware, tile spray, screen and flooring
Andrew Paterson Director Property Management 9831 3416 | email@example.com
• Installation of 3kw split system • New light fittings • New door handles and cupboard knobs Phase 2: 3 weeks • Complete new kitchen – at the end of first lease The total spend on the entire project over the two stages was $34,023.
As a direct result of the works, the property achieved a market valuation of $620,000 and was rented immediately for $450 per week. This equates to a net equity increase of $58,000 from the six week project. Lost rent over those 4 weeks of $1,560 needs to be factored in but those costs are insignificant given the equity uplift. Equity aside, the extra rent comes to an extra $3,120 per year. For rental increases alone, we’re talking a payback period of over 13 years, not including vacancies which were a problem. However, it’s the combination of cashflow and equity that makes the process attractive.
Patricia Grados Department Head 9955 4926 | firstname.lastname@example.org
In terms of depreciation, a fairly significant portion of the improvements were plant and equipment items, which helps to attract higher rates of depreciation. The plant value was $12,986, leaving $21,037 of division 43 capital works. Within the first full year, the depreciation claimable on this renovation was $4,039. So, depending on the marginal rate, we’d be looking at around $1,200 back in the pocket within the first year and over $3,000 within the first 5 years. More and more investors a looking to renovations like this to increase their cashflow and equity. Releasing equity in your investment has been hard in recent times with the APRA changes, but if you’re not flipping and electing to hold your properties long term, it’s the end sales values that matter most to you after all. Source: apimagazine.com.au
Contact our leading property management team today.
Mathias Suter Business Development Manager 0438 849 714 | email@example.com
A low-maintenance Spring garden As the weather gets warmer and we start spending more time outdoors, many of us are turning our attention to gardens and yards that may have been a little neglected over the cold Winter months. Sometimes it can be hard to know where to start and just thinking of the effort required to get to the point of being able to enjoy the garden can be daunting. Have no fear! Getting your garden in top shape can be quick and easy, setting you up for a low-maintenance but beautiful garden throughout Spring and into Summer. Here are a few simple ways for you to ensure your garden is looking great this Spring: • A small initial outlay of time and effort mulching your garden beds will pay off in the coming months and perform a double duty. Not only does it keep everything looking neat and tidy, mulch also discourages weeds from growing around your plants. • A healthy lawn is always easier to maintain than an unhealthy one so make sure to give your grass a good dose of lawn food before the weather gets too hot. A lush lawn has less room for weeds to get a foothold, which means less work for you. • Hebes are great shrubs to plant in a low-maintenance garden. They’re super tough, require very little care and look great planted together in groups. This family of plants is available in a huge variety of colours so you’ll almost certainly be able to find one that suits you and your garden. • Another great option is to make use of native shrubs, bushes and grasses. Local species have adapted to survive in our climate and many require very little attention once established. • If you can’t resist a bit of botanical drama, try concentrating on one or two garden show-stoppers. Nothing says Spring like blossom trees and many varieties such as flowering or weeping cherries, crab apples, and flowering plums require very little upkeep once planted. They also have the added benefit of putting on a gorgeous display of pink or white blossoms for you to enjoy year after year. Whether you’re selling your home or not, Spring is the perfect time to get outside and enjoy the garden. These tips will help ensure that you are able to spend even more of that time sitting back and relaxing. If you are selling your home, an established and easy to care for garden is one less thing for you to worry about and a great selling point for potential buyers.
Georgia van der Horst Acorn Nursery
Knowledge | Finance news Over the last month we have seen plenty of media attention surrounding the Royal Commission’s investigation into Banking and Financial Services. We felt it would be helpful to you for us to provide you with our preliminary thoughts. Firstly, Shore Financial strongly commend the work of the Royal Commission and how they have highlighted many instances whereby the poor culture of large institutional financial services businesses has led them to prioritise profits over consumer outcomes. This has been demonstrated by: • Clients being charged fees for services that were not provided; • A priority for product sales outcomes over advice outcomes; • Lack of professional accountability for mistakes; • Lack of consequences applied to offenders; • Misleading the corporate regulator; Advice being delivered that did not meet what should be considered the very minimum standard of all Financial Advice – being the client’s best interests. More disappointingly, when these instances were discovered, little or no action was taken to rectify the situation. This behaviour has only served to undermine confidence in the Financial Advice industry, particularly when it has come from some of our largest and most well-known Financial institutions. One of the reasons we have elected to license our business under a licensee such as Fortnum Private Wealth is to be part of a business that: • Does not generate its profits from selling products; • Focuses on client outcomes; and • Focuses on assisting its’ Financial Advisers in providing advice that is in the client’s best interest. Shore Financial is focused solely on these outcomes for you. As calls for change on the governance and regulation of the industry grow louder, we expect that the landscape in the Financial Services sector will change dramatically as a result. Most notably, we foresee a greater separation in Financial institutions having the ability to both own investment products (i.e. such as managed funds) and provide advice related to these products (or ownership of advice businesses). This change will see more of the industry and our peers moving to a model that we operate under today. The separation of advice and product. In addition, client’s will be more diligent in selecting their Financial Adviser, and seek out advisers who uphold the following standards: • Only providing Financial Advice that is in the client’s best interest. Furthermore, ensure that any advice provided considers your wider financial position and overall goals (not focused to a single area of advice such as the assets you own). • Greater accountability and transparency on: • Conflicts – ensuring any potential conflict or issue that may arise to become a conflict is thoroughly disclosed to you. • Fees – providing complete transparency on our service proposition and fees you are charged for those services. • A commitment to professional conduct and accountability.
The benefits of debt consolidation Debt consolidation is the process of combining multiple debts into a single loan. There are many reasons why you should consolidate debt, including: 1. Reduced Fees Say goodbye to multiple account fees and charges. Consolidating your debt means you have only one account to keep track of, one annual fee to pay and one repayment date you need to worry about. By having one repayment you are more likely to remember the terms of the account as well as remember to make that repayment once a month, therefore avoiding late payment fees. By negotiating your terms when consolidating, you may also be eligible for a reduced interest rate. When the time comes for consolidating debt, your financial situation may have changed, making you a more attractive candidate for a good interest rate. 2. Simplified Tracking Debt consolidation involves taking out a new loan to pay off all current loans, reducing the number of repayments, owing balances and conditions you need to keep track of. Keeping track of these details may affect your ability to budget and plan, and can also be incredibly stressful. 3. Improved Credit Rating If youâ€™re not one to keep on top of repayments, consolidating your debt may help to increase your credit score. Late payments and defaults significantly affect your score, so by transferring all debt to a single account, you are more likely to make the repayment on time. Over time, making timely repayments will help to rebuild your credit record.
Brought to you by
1300 416 700 firstname.lastname@example.org shorefinancial.com.au
KILSYTH SOUTH Sunset Drive
Sold for $1,280,000 5
We’re all about Results
MOOROOLBARK Carronvale Road Sold, undisclosed
LILYDALE Verina Way Sold for $788,000
MOOROOLBARK Woodville Road Sold for $818,000
MOOROOLBARK Cheriton Drive Sold for $792,000
MOOROOLBARK Bellara Drive Sold for $623,000
KILSYTH Crinan Street Sold for $640,000
CHIRNSIDE PARK Country Club Drive Sold for $1,001,500
MOOROOLBARK Highpoint Avenue Sold for $740,950
MOOROOLBARK Greenslopes Drive Sold for $730,000
MOOROOLBARK Sweetland Road Sold for $830,000
MOOROOLBARK May Road Sold, undisclosed
MOOROOLBARK Shadowplay Road Sold for $640,000
MOOROOLBARK Cardigan Road Sold for $941,000
LILYDALE Baker Street Sold for $565,500
KILYSTH Derby Road Sold, undisclosed
LILYDALE Bastow Road Sold for $740,000
MOOROOLBARK Erskine Ridge Sold for $725,000
KILSYTH Walnut Drive Sold for $834,000
CHIRNSIDE PARK Kimberley Drive Sold for $780,000
KILSYTH Belinda Close Sold for $765,000
MOOROOLBARK Trenton Place Sold for $740,000
MOOROOLBARK Neryl Court Sold, undisclosed
KILSYTH SOUTH Geraldine Close Sold, undisclosed
MOOROOLBARK Neville Street Sold, undisclosed
MOOROOLBARK Partridge Way Sold for $825,000
MOOROOLBARK Neville Street Sold for $940,000
LILYDALE Bowen Road Sold for $730,000
MOOROOLBARK Drummer Hill Lane Sold for $855,000
CHIRNSIDE PARK Country Club Drive Sold for $880,000
MOOROOLBARK Meadowlark Lane Sold, undisclosed
Community Our Favourite Local Markets Healesville Organic Market The Healesville Organic Farmers’ Market is set in the idyllic hills of Healesville at Coronation Park. Operating each Saturday from 8am to 1pm. The market is a venture of Permaculture Yarra Valley. Come along and support small-scale enterprises and enjoy chemical-free, nutritious produce that doesn’t cost us the earth. Coronation Park, River Street, Healesville visityarravalley.com.au/healesville-organic-market
The Farmer’s Market Pick The Farmer’s Market Pick provides a wonderful experience for the whole family. The market is a local family owned and operated strawberry farm in the picturesque Yarra Valley - Just 45 mins from Melbourne CBD. Take in the beautiful surroundings, meet the farmer and pick your own delicious red gems straight from the plant! Give your tastebuds a natural sweet treat with strawberries that simply taste as good as they look. Make The Farmer’s Market Pick part of your visit to the Yarra Valley, in close proximity to many of the wineries that adorn the area. Don’t feel like picking? There is a wide range of freshly picked and packed fruit available in the Farm Shop for your convenience.
778 Maroondah Highway, Coldstream ________________________________________
Lilydale Craft & Produce Market Formerly, a joint initiative of the Rotary Clubs of Montrose & District, Chirnside Park and Lilydale, the market commenced in March 2009. The goal of setting up the market was twofold; to help support local/regional producers and at the same time raise money for Clubs’ local and international projects. From July 2016, the market is being operated solely by the Rotary Club of Lilydale Inc under the title of Rotary Club of Lilydale’s Craft and Produce Market. The Market is held on the first Sunday of the month. Lilydale Lake Road, Lilydale rotarylilydale.org.au
Yarra Glen Racecourse Market Just an hour’s drive from Melbourne, Yarra Glen Racecourse Market is a great outdoor shopping experience, with an amazing range of stalls selling everthing from old fashioned boiled lollies, home grown seedlings, beautiful sculpture- wood, ceramic and metal, hand sewn children’s clothing, quirky wall art, freshly baked cakes, hot coffee, nature inspired jewellery, colourful bunting, artisian cheese, freshly squeezed real lemonade...the list goes on, it’s fair to say that you will find what you’re looking for at this huge market in the heart of the Yarra Valley. For the foodies out there be sure to sample the gourmet delicacies on display and meet the passionate producers behind the fresh, seasonal products
Held on the first Sunday of every month from September to June (closed over Winter months and January). Beautiful country vistas, wide walkways, leafy surrounds and ample parking available make this venue the perfect destination for a day out with the family. Armstrong Grove, Yarra Glen ________________________________________
Yarra Valley Farmers Market visityarravalley.com.au/healesville_craft_market
Held all year round from 9am to 2pm in the historic barn at Yering Station on the third Sunday of each month, the market is a lively place with food tastings, lots of chatter, tantalising aromas and a visual feast of foods, flowers and flavours. In addition to an extensive selection of fresh seasonal fruit and vegetables you will find among the stalls mouth-watering biscuits, fresh-ground coffee and beans, unusual jams, preserves and sauces, honey, buffalo sausages, delectable chocolates, ice-cream, fruit vinegars, home-made pasta, locally baked bread, free-range eggs, a fantastic range of lavender products from hand-creams and bodysprays to furniture wax...and, as they say...much, much more! Today it is Victoria’s longest running monthly market which gives you the chance to buy direct from the grower, producer or maker, and, importantly, that it doesn’t have “food miles” on it - that it wasn’t made 10 weeks ago and that it hasn’t come thousands of miles across the ocean.
38 Melba Highway, Yarra Glen ________________________________________
Yarra Valley Farmers Market Held all year round from 9am to 2pm in the historic barn at Yering Station on the third Sunday of each month, the market is a lively place with food tastings, lots of chatter, tantalising aromas and a visual feast of foods, flowers and flavours. 38 Melba Highway, Yarra Glen
Community Some of our favourite cafes Pump Cafe @pumpcafe A great little café next to the gym that’s perfect for that delicious post-workout meal, smoothie, coffee or treat! The staff are always happy and friendly, the service is quick and the meals are fresh and tasty. The acai bowl never fails to deliver and for a more decadent option, we recommend the French toast with berries! 4/14 Manchester Road, Mooroolbark ________________________________________
Country Heart Cafe @ourcountryheart
Set in the heart of Mooroolbark, the Country Heart Café offers a cosy vibe with its many tones of whitewashed woods, local crafts and delicious delights! Conveniently positioned just across from the train station, they have a great seasonal menu that’s filled with wholesome dishes that incorporate locally sourced produce. We love the ‘Paddock Bowl’ and ‘Smashed Pumpkin’! 36 Brice Avenue, Mooroolbark ________________________________________
Mad Ram Cafe @madramcafe instagram.com/ourcountryheart
A new café in the Croydon/Mooroolbark area, the focus at Mad Ram is to produce authentic, rustic, organic, locally sourced food. The staff are friendly, the food is delicious and they always make great coffee! There is a lot of variety on the menu, but one of their clear winners is the smashed avo and we also love the deep friend bau if you have a sweet tooth! 19 Paul Street, Croydon ________________________________________
Hutch & Co Cafe @hutchandco.lilydale This place is buzzing with activity and the staff are happy and smiling! It’s modern, bright and welcoming, and the menu has a great range of dishes to suit all tastes. The coffee is really good and in terms of a feed, there’s everything from baked eggs, their Hutch ‘sharing board’ and black forest waffles.
249-251 Main Street, Lilydale
Bom Gosto Restaurant & Cafe @bomgostocafe They cook in a hand crafted, wood fired oven and a lot of their produce is sourced locally and grown organically on their Bom Gosto farm based in Silvan. There is a great vibe and the interiors are funky industrial, the service is wonderful, and the food is wholesome and delicious. They happily cater for dietary requirements and the coffee is excellent! 11 Castella Street, Lilydale ________________________________________ instagram.com/bomgostocafe
Gracious Grace Cafe @graciousgracelilydale Right next to the Yarra Ranges Regional Museum, the food at Gracious Grace is fresh, tasty and made to order. They use fresh, local Yarra Valley produce and offer everything from casual coffees to irresistible indulgent cakes, to hearty all-day breakfasts and chic lunches! 35 Castella Street, Lilydale ________________________________________
The Bosses Boots Cafe @thebossesbootscafe instagram.com/graciousgracelilydale
The hidden gem of the Entertainment Precinct, the Bosses Boots is committed to providing friendly and genuine service, in a versatile space that’s also perfect for functions. The staff are very pleasant and the service is prompt! 1 East Ridge Drive, Chirnside Park ________________________________________
Suburban Whole Foods Cafe @suburbanwholefoods Wholefoods Cafe and Coffee Shop was born out of a casual Sunday afternoon conversation out in the Yarra Valley, Melbourne and became a reality soon after. Sick of having little to no healthy food options for quick and easy to find food, the decision was made. They thought…why not make our own...and while we’re at it bring some quality coffee too! The goal at Suburban Whole Foods is to create a culture where healthy food isn’t “healthy”, it’s actually just wholefoods that we eat every day to nourish and fuel our bodies.
Factory 11/114 Canterbury Road, Kilsyth South
Follow us on instagram @fletchersre
Our Agents Sales Rob Fletcher
Balwyn North 61 Doncaster Road, Balwyn North | 9859 9561
Maroondah 1 Seymour Street, Ringwood | 9955 4988
Banyule 114 Lower Plenty Road, Rosanna | 9430 1133
Mooroolbark Suite 1, 14 Manchester Road, Mooroolbark | 8814 3688
Belgrave/Tecoma 1561 Burwood Highway, Tecoma | 9751 0299
Ocean Grove 3/80 The Terrace, Ocean Grove | 5255 1721
Bellarine 74 Hesse Street, Queenscliff | 5258 2833
Olinda 3/1606 Mt Dandenong Tourist Road, Olinda | 9751 0299
Blackburn 75A Railway Road, Blackburn | 8833 8888
Projects 94 Union Road, Surrey Hills | 9836 1132
Blairgowrie 2815 Point Nepean Road, Blairgowrie | 5984 2600
Projects CBD Shop 1/413 Elizabeth Street, Melbourne | 9326 8566
Canterbury 244 Canterbury Road, Canterbury | 9836 2222
Warrandyte 183-187 Yarra Street, Warrandyte | 9844 3085
Diamond Valley 951 Main Street, Eltham | 9430 1111
Waverley Suite 6, 710 High Street Road, Glen Waverley | 8523 8523
Glen Iris 1509 High Street, Glen Iris | 9885 3333
Wollongong Shop 2, 143-149 Corrimal Street, Wollongong | 02 4226 1074
Manningham Suite 5, 1012 Doncaster Road, Doncaster East | 9841 5788
Wyndham 114/22-30 Wallace Avenue, Point Cook | 9131 4000