I went for a tour of the actual site where the development will be built some three weeks ago. Although near the West Gate Freeway, I am pretty sure the apartments will be fitted with double-glazed windows for sound insulation.

Well, for all my blog readers out there, if you need any info or feedback from me, do drop me a note. The Bank apartments is located near 109 Clarenden Street, another high rise development built by the same developer.

Sydney road is one of the most prominent roads in Brunswick, a suburb next to Princess Hill, Fitzroy North and Parkville. It is populated by yuppies who embraced the Australian coffee culture. Sydney road has been designated by its LGA as one of the roads to be converted to a promenade - a pedestrain walking strip with trendy cafes, restaurants and also shopping outlets. It is set to be the ‘chapel street’ of the North.

There’s a limited opportunity to get into a boutique development along union street, beside the RMIT(Brunswick campus). With a 2-minute walk to Jewell train station, and being close to Barkley SC coupled with its proximity to Sydney road, this is as good as you can get being close to ‘action’.

There will be no lack of tenants wanting to rent close to the city. The lure of Italian restaurants along Lygon street is hard to resist; and if you wish, take a tram along Sydney road to the city. It only takes 10 minutes and you will be swarmed by more restaurants at the Crown Casino. Walk along the Yarra river and look back to the city; it is a stunning sight in a class of its own.

Opportunities are limited! It may or may not suit your portfolio requirements. Call me today for a no-obligation consultation…

It was winter in Melbourne when I arrived on the 7th June after a stopover at Darwin. It was not until I step into my business partner’s apartment at 80 Lorimer Street that I realized how beautiful the views over Victoria Harbour can be. It’s stunning, particularly with the sun glazing down over the chilly wind in winter Melbourne, voted as one of the most liveable cities in the world.

Nested in Lorimer St are five towers built by one of Australia’s biggest developer. You could see the standard of the finishing once you walked into the apartment. Nicely laid quality carpets, stone benchtops, exclusive vanities used in all the toilets/bathrooms and not forgetting the huge 42′ LCD TV in the living room for pure entertainment. It’s city living at its best!

It just cannot get any better, being so close to the CBD; in fact just 2 minutes away and close to water.

There is a freeway running parallel to Lorimer St but mate, I could hardly hear anything when the windows are closed. Windows are double-glazed and strict building standards says it all.

To put it simply, I wouldn’t mind going back there in September again…oh..how I missed the excellent weather.

The scene at the Docklands is certainly one of beauty. Compared to my last visit in 2005, the Docklands have come up very well indeed. The stadium village where the telstra drome is the centre of attraction, a place where major sporting events are held, like Aussie Rules, etc has its own unique appeal.

Being close to Victoria Harbour, the Docklands offer residents who wants a combination of both city living and close to water. To me, it is a dream come true. As a city boy, it is not easy to be close to water and yet in the city. People pay a lot to be close to water but if it is right in the heart of the city, you can’t get any better.

While at the restaurants and cafes in the Docklands, I marvelled at how the city skyline has changed in the past few years. More quality developments emerged. Iconic building start to dominate and fancy yachts are founds parking right on the waterfront, beside the restaurants. To say it is a beautiful scene is really an understatement.

With city living becoming popular amongst the generation Y, Z and the seachangers, developments around and in the Docklands are in great demand. Pan Urban is developing the Lacrosse after a successful spell with Watergate. Lend Lease is building Mosaic etc…

With Suncorp, the insurance giant relocating from the Melbourne CBD to the Docklands, the Docklands have its own commercial appeal. It can only be good for property investors. With only a limited amount of space for development, every inch in the Docklands will be utilized to realize its fullest potential.

Like my property guru said, ‘you cannot go wrong if you hold it for the long term’. I am sure many seasoned investors will agree with me the same can be said for the Docklands.

I had the opportunity of viewing Chevron Green when I was down in Melbourne last week. I couldn’t understand the reason why it has taken longer than usual for the project to sell out, considering the fact the project is located along St. Kilda Road and with close proximity to the city and to the famous and highly popular fitzroy street where restaurants and cafes are located.

The project was marketed over the weekend in Singapore by another marketing company. I have gotten the price list directly from the developer and the developer is paying full stamp duties for purchasers.

If anyone wants to have developer’s price, contact me at 98344408 immediately.

‘Local real estate agents can make or break the ’social status’ of a suburb’, One of my vendors who used to be a real estate agent said. If real estate agents agree that it is a fantastic suburb, and with the media on their side, the chances of property values appreciating big-time will be great but the opposite happens when all the estate agents agree that the suburb is a slump.

Investors are very much influenced by the advice of real estate agents. They rely on the inputs from real estate agents to provide them with the general sentiments of a certain suburb and the social stigma associated with the suburbs. Hence never underestimate the power of estate agents!

For overseas investors, your best bet is to ask a local real estate agent about the suburb that you are buying into; that way you can never go wrong with your investment property!

According to Herron Todd White, a leading valuer in Australia based in the eastern state, it has been reported that the capital city of WA, Perth has reached the peak of its property cycle. Residex has reported Perth as having the highest median property price in the whole of Australia, even more than Sydney.

Industry professionals said the main reason for the property boom in WA is mainly attributed to the resource boom. People flocked to WA for employment in droves and the supply of properties is not enough to keep up to the ever-growing demand.

The question is how long will this resource boom last? Judging by recent reports where Australia has just made a pact with China, it is going to last for a while. Housing affordability index cannot be rising forever. It will grow to a point where people deem it is not viable to buy properties at a certain price as the wages just cannot support the mortgage repayments.

When the resource boom is over, people might leave town in droves. This may create a temporary situation of oversupply in WA and it may be undesirable for many property investors.

For investors who have already invested in WA and had equity in their investment property, they may look towards the eastern states and capital cities for re-investment. Don’t get me wrong. I am not advising the investors to sell. All you need to do is to consult a mortgage broker or an investment specialist, they will advise investors how to uplift equity in their existing portfolio to increase their total asset holdings without much risk.

For investors who are thinking about buying into WA, it may be worthwhile to look at properties that are settling soon or house/land packages. If you are buying off the plans, good luck to you. Pray that the numbers still stack up at settlement, or better still, pray that the developers have enough margins to continue with the sale. I have heard of developers putting viability clause in WA projects in such a way that if they deem the project is not viable anymore, they can cancel the contracts or go back to investors to ask for more money.

So look to the east mates. The chances of going wrong may be lessened!

When it comes to marketing properties overseas, many developers are pretty keen to sell their stocks that are primarily off-the-plans. Off-the-plan properties are pretty popular with overseas investors because of stamp duty savings (e.g. buying off-the-plans in Victoria, investors need only to pay stamp duty on the land value) and the fact that only a 10% of the purchase price is required as a deposit and no further payment is required till settlement.

When it comes to building a portfolio for investors, it may not be necessarily a good thing to buy off-the-plan projects. The reasons are as follows:

Off-the-plan projects usually have ‘growth’ built into the price – e.g. if the project is going to be completed in 3 year’s time, it will be priced at its worth in 3 year’s time, NOT current market price. With rising construction and material costs, developers tend to price the units with a certain percentage increase so that the development remains economically viable.

The process of building equity starts only when the property is completed. It means that if you purchase a property off-the-plan today and it settles in 3 year’s time, your wealth building process actually starts in 3 year’s time, NOT today. For investors who are looking at building a portfolio aggressively, buying off-the-plan is not a strategy recommended for them.

Also, if an investor buys off-the-plan during the peak of the property cycle, he may get himself in a sticky situation when settlement happens. The valuation might not stack up and he will have to make up the difference with cash or available equity in his other assets.

The safest bet is to go for properties that are under construction or completed. Given the situation in the eastern seaboard, where new projects are far and few between, it is not easy to find good units that are still available during the construction phase.

A good alternative would be to go into house/land packages where the land title is registered. That way, investors can settle on the land within 30 days and building can commence right after the settlement of the land. The house would be up in 6-8 months and the investor can start his wealth building right away! That shortens the ‘waiting time’ for serious investors.

Lately there have been quite a number of developments being marketed in Singapore. Some clients asked me if they should buy South Yarra or Lygon, or along Queens road. All of these areas in my opinion are great areas. If you are in for the long term, you cannot go wrong.

The other day, I had a client who asked me a similar question. I told him whilst they are good areas, he could get carried away looking at so many new developments and the fact that he can’t possibly buy all of them means that there is something more than just looking at new projects and adding them to his already ‘messy’ portfolio.

I explained the importance of having a STRATEGY in place. It allowed him to have a helicopter view of where he is going and chart the course for his acquisition strategies. At the end of the day, it is down to a 15-year strategy and possibly looking at an annual income of $100,000 or more from his rental income. He was happy with it and it is not at all aggressive and definitely realistic; looking back at the past performances of the Australian property market where median price growth averages about 9% per annum.

Folks, at the end of the day, you can buy anywhere, for that matter; anywhere in the world. I guess the key is to have a holistic strategy. Just like what Stephen Covey said, ‘BEGIN with the END in mind!’…

About a month ago, I spoke to an associate about investing in Australia. She is married to an Australian who lives near Geelong in Victoria. She is adamant about not wanting to invest in a 1-bedroom apartment in the city. When asked why, she said, ‘who’s going to rent one-bedroom apartments?’

The question shocked me a little. She mentioned she would like to get at least 2-bedroom ‘and above’. I found out later that she has actually related to what had happened in Singapore and assumed the same set of conditions apply to Australia.

IMO, a one-bedroom apartment in the city fetches good rental yield, it is also easy to get rid of if the investment turns pear-shaped. Property managers would agree that renting a one-bedroom apartment in the city out will be quite easy as it is a lifestyle product that appeals to singles or couples without kids who wants to enjoy city living.

In Australia, the demographic movements are quite predictable.  When kids gets to about 18, they moved out of their parents home in the suburbs and gather a few mates to rent in the city. They want to be close to where the action is. The idea of having pubs, trendy restaurants nearby is a major attraction for them. Once they met their other halves, they get married and moved into the suburbs. Depending on their income level, they may move into a more desirable suburb if they have the capacity, otherwise buying or renting a house in a ‘growth area’ seems like a possibility.

They have kids later on and when their kids grow up, the kids move into the city and when their kids are gone, they may stay put or move into the city depending on their level of comfort.

A one-bedroom apartment usually is the first to be rented out in good times. It is also the hardest hit during a recession. The one-bedder is not popular for families with more than 2 members. With the emergence of Internet, some couples even rent a 2-bedroom and make one of the rooms as a home office where they can work from home. Having said that, a one-bedroom is not without its value. The fact that it has only one bedroom means that it appeals to a smaller market segment. Then again, the market segment of singles/divorced is increasing at an alarming rate in developed countries like Australia.

Investors need to be aware of the dangers of buying a unit less than 50sqm. In the past, banks do not really favour financing such units. But with increasing construction costs and land costs, banks are now willing to look at it more favourably.

My take is: Study the demographics living in the area you are investing in and watch your budget. At the end of the day, investing in properties is down to dollars and sense and if one-bedroom is what you can afford for the time being, it may be the best decision given the present circumstances you are in.