The current ‘city road wedge’ in South Melbourne (convention centre precinct) will undergo a transformation. There will be an integrated development consisting of retail mall, residential buildings and 1 international hotel and they will be built over a 5-year period.

A tram stop along Whiteman Street beside this development has been proposed to the council be built to provide better accessibility to this new development. Approval will be made known at a later stage.

The first of 3 residential buildings to be released is a 39-storey building right at the corner of city road and cecil street.

Key highlights are summarized below:

• Rare integrated mixed-use development (3 levels of retail mall and shops, 3 residential buildings and 1 International Hotel)
• Iconic development in the Convention Centre Precinct
• Big ratios of units with carparks
• Less than 1km to Melbourne CBD
• Less than 50m to Melbourne Convention and Exhibition Centre
• Proposed tram stop to the council along Whiteman road for future residents
• Pre-release at prices below current market rate (*based on comparison with closest new project launched)
• South Melbourne – An international address and a major activity center under the metropolitan strategy, Melbourne 2030
• Proven capital growth and great rental yield area for investors (Data from residex Dec 09 issue showed 8.33% p.a. growth for capital growth and 5.14% p.a. for rental yield growth for the last 10 years)

Prices start from:

• 1-bedroom apartment (from $420,000* with 1 carpark)
• 2-bedroom apartment (from $550,000* with 1 carpark)
• Off-the-plan purchase (only 10% deposit required)
• Settlement in 2013

*Pre-release prices, prices are subject to change without notification from vendor

Rental Potential

Rental yield is estimated to be in the region of 5% or more currently. The vacancy rate in inner city suburbs is below 1% (3% to be considered market balance). According to the population census by City of Port Philip, it is projected that the number of residents will increase to 96,110 with an increase of 2,125 in the year 2009. Howver the number of approved dwellings between 2008-2009 is 705 and that will take between 18-24 months to be completed. With a family size of 2.1 (latest statistics by ABS on household size) there’s still a shortage of accommodation within this area. That will pressure on rentals and cause the rentals to rise.

Capital growth potential

Investors will be pleased to know that South Melbourne has been earmarked as a major activity centre to be developed under the Melbourne 2030 Plan. What it means is that the area will be developed over the next two decade as focal points for services with increased residential densities, employment opportunities as well as cultural and community services.
As businesses move and relocate to the already thriving Clarendon street spine filled with commercial and retail outlets, South Melbourne’s transportation network will be enhanced along with conservation of heritage listed sites (which limits the supply of new residential properties) to give this suburb a unique character and identity. Along with parklands and good schools, it is a desirable place to live for both investors as well as owner-occupiers.
Highlights

•    Completion expected in 2013 with maximum stamp duty savings for off-the-plan purchasers now.
•    Freehold and available to all residents as well as non-residents
•    Loan available up to 80% of the value of the property (AUD loan)
•    Foreign currency financing options available (subject to lending criteria from Australian banks)
•    Most competitive property management fee in Australia (62% off retail property management fees)
•    Early purchasers guaranteed capital growth (higher-priced apartments to be released in later stages)

Feel free to drop me an email if you have any queries.
Have a good weekend ahead!

This is not a big development; only 120 and of these at least 20 will be double-storey townhouses (these are more for owner occupiers).

Corner location of Brunswick Road and Lygon Street, tram at the front door, and linear park on one side, retail including cafes on ground floor. All the apartments on the city side will have full city views given across the park are all est homes.

Construction will start in Jan/Feb 2011 and will be completed by July 2012.

With a host of corporates being located in the western region and affordability of residential properties, the area is now a popular amongst renters and owner-occupiers who want be accessible to city and their workplace.

For more information, you download the article here.

Serious investors might be far better off investing in areas where rental income is very consistent (and rising every year) and there’s a huge pool of tenants locally(locals as well as PRs and foreigners) to minimize investors’ risk (holding costs).

Some investors asked me, ‘what can you do with S$300,000?’

You effectively buy three (yes, not just one) investment properties in Australia and you will have three tenants instead of just one if you invest in Singapore. The quantum for investment will be smaller and it will be spread among 3 properties with different capital growth rates and most importantly investors’ risks will be significantly lowered (Risk – holding cost).  One thing to note, Aussie banks do take into account rental income (a big part of rental income) to boost investors’ borrowing capacity. There’s indeed some truth to the saying ‘the world is an oyster’. Serious property investors should know property investment is not limited by geographical boundaries; the only question is who you should approach for the right expertise and advice.

This is an excellent project with great views to the marina and the Melbourne CBD from the apartments. Prices start from $5,900/sqm and settlement is expected in 2013. You wouldn’t want to miss buying in one of the fastest growing inner-city suburb. Most locations that close to the CBD wouldn’t have spacious apartments like this one. We have a special pre-public release allocation of apartments. This project is priced to sell! We expect that once this project releases publicly it will sell extremely quickly.

Overview
Situated within 6km of the Melbourne CBD, Marina apartments offer investors a unique opportunity to acquire a piece of real estate (250m to the marina) next to one of Australia’s largest shopping centre and vibrant commercial facilities along the Rosamond road (thru highpoint shopping centre) and near to Docklands. The development is 1km to Victoria University (5 mins), 4km to RMIT University (CBD) (12mins), 3km to University of Melbourne (10mins) and Royal Melbourne Hospital, public transport, shops, restaurants and cafes in Highpoint Shopping Centre and not to mention recreational activities around the parklands and the Maribyrnong Aquatic Centre just next to Highpoint Shopping Centre. Commuting to the city takes only 15 minutes by tram. The tram services are available along Gordon Street.

The project comprises two buildings merged together and it’s also located on a sloping site hence the units on the higher ground have fantastic views towards the marina and the city. All units come with car parks (3-bedders with 2 car parks) and some with storage spaces. There’s no swimming pool or gym hence body corporate fees are kept relatively low.

Location
Edgewater Boulevard, Maribyrnong, Victoria

* 100m from Gordon Street trams
* 200m from Les Ames Deli Cafe
* 300m from Edgewater Marina
* 700m from Essendon Municipal Golf Course
* 800m from Maribyrnong Secondary College
* 1.0km from Highpoint Shopping Centre
* 1.0km from Rosamond School
* 1.0km from Footscray North Primary School
* 1.0km from Progress Kindergarten
* 1.1km from Flemington Race Course
* 1.5km from Gilmore College for Girls
* 1.5km from Footscray Primary School
* 1.2km from Western Hospital
* 6km from Melbourne CBD

Estimated Completion Date: Late 2012 to early 2013

Please email me if you are interested to find out more about the project.

It’s at NO cost to the purchaser and it makes it easier for the purchaser to take over any
potential ‘fall-overs’ in a development approaching settlement.

Note: the ‘conditional approval’ last for 90 days but if you cannot find a property that meets your expectation within this period, you can always go to the broker and all you have to do is to resubmit a few docs and you will get another extension. No dramas at all!

But please do not do this for a off-the-plan purchase. It’s of no relevance at all.

There has been quite a number of credit changes for non-residents and expats over the
past couple of week’s as a result of the introduction of the National Consumer Credit Code. Probably the most important has been advice from the banks that they now require face to face meetings with clients. Also increased credit/serviceability restrictions. For example, Homeside /NAB will not consider anyone who is self employed. ANZ now discounting all income by a further 20%. CBA applying Australian tax rates on all income of applicants.

All banks requiring last 3 consecutive months of bank statements showing salary credits.

If you are after an investment property with an owner-occupied finish coupled with rare water views, this is the unit you have to go for. Construction will commence as soon as the land settles in 45 days’ time and the expected completion date will be some time in May 2010. It’s a 5-stage progressive draw down for the construction and foreigners with sufficient income serviceability can get up to 80% financing (only standard construction loans available) for the entire land and construction package.

The unit is priced in the low $400K with latest valuation report by bank panel valuers. The great thing is I can show you how you can finance this property such that it will yield positive cashflow at completion next year. It’s a relatively reasonable purchase if you are looking for something with great future capital growth potential. When I visited the place in May 2010, they have started moving the earth for the development of the town centre nearby this project. For more information, you may email me directly.

However, I must warn all prospective buyers that this process is irreversible. If you walk out of that room thinking you can pull out of the deal and get back your S$5,000.00 deposit, you will be sadly mistaken. In the past 6 months, I have been approached by several buyers ’swindled by a company who has this practice’ for help. One buyer even went to small claims tribunal and appear in front of the magistrate. The company who adopted this practice has been doing it for years. Unfortunately, the agreement is done between a Singapore company and the buyer and is under the Singapore jurisdiction (even CASE couldn’t do anything). Complaints to consumer affairs in various states of Australia didn’t help as well.

As far as I am concerned, every high-ticket item warrants a ‘cooling-off’ period. In the contract of sales, there’s a cooling-off period of 3 days if you purchase anything in Victoria and 5 days if you purchase in Queensland. But even then, those companies that practise taking S$5,000.00 deposits will just rescind the contract. The S$5,000.00 remains non-refundable.

I don’t quite understand some Singaporeans/Malaysians. Why would they pay S$5,000.00/RM5,000.00 extra for the purchase of a property since the price is fixed by the vendor? A lot of them foolishly think that S$5,000.00/RM5,000.00 holding deposit forms part of the 10% deposit. They then realise that is not the case but they have no choice but to go ahead and complete the transaction.

As far as I am concerned, companies that have this practice are just digging their own grave.

Advice: when in doubt, just walk away from the deal. It’s not the project that matters, it’s the people that is servicing you that matters most.

Nearly 45 per cent of residential builders’ clients have cancelled or postponed projects in Victoria this year because they could not secure finance, an industry survey says.
Master Builders Association of Victoria executive director Brian Welch said the survey by his showed the damage that tight lending practices were continuing to have on housing affordability.

“Victoria has an undersupply of 29,000 homes and we’re currently building 5000 too few homes per year to meet that demand,” Mr. Welch
Said.
“If Victorian families are unable to secure finance to build their first home, then this under-supply will worsen.”

When builders were asked if their ability to access credit over the past three months has changed, 5 percent reported an improvement but 24 per cent reported a deterioration.

“Our members are telling us that many residential projects are not getting off the ground because banks were unwilling to lend.”

About one-third of builders reported a rise in customer inquiries in the past quarter, but many were not developing due to problems in projects getting credit.

If the situation continues, it won’t be long before we see median prices of homes in various states hitting a million bucks.