2007 Winter

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World of Ideas John Tower I am very excited to launch The Property Review, this journal is has been alluding me for a long time. Like many business owners, I have tried, in different ways, to communicate to my clients and others parties on behalf of clients such as tenants, buyers and the service providers employed. Indeed, over the past 14 years, I have produced newsletters, brochures and glossy magazines. During the late 1980’s newsletters were the new exciting medium to pass good information to clients, ten years later, these became glossy magazines with many full page advertisements. All the major franchise chains have them now, in one form or another. They are all very good at promoting properties, but that is where they stop. The Property Review is intended to be a good read. It will have few properties featured in it, yet they will be amongst many interesting articles, facts and figures, and a bit of history. The majority of our readers will be our clients, tenants and future clients and tenants. Every quarter we will assemble interesting and important facts and figures, these would include median sale prices, the movement of property values and rents. There will be actual lists of properties we have leased during the quarter, feature articles on local areas and sometimes legal and taxation matters affecting property. I will be inviting property related professionals to contribute articles to the journal; above all, I will be looking for new and exciting ideas. Owning a property in this prime location in Sydney is a major asset, renting in this part of Sydney is expensive. Corporate tenants are one the great driving forces of the rental market. I am amazed at the misinformation property owners have about the market. Tenants appear to be more knowledgeable than owners in many situations. Buyers: when property values are increasing flock to buy any property at whatever the asking price just to buy an investment property; and when the values are not increasing: they don’t buy. Yet often they get caught up in the hype of the market and over pay and find themselves owing more than the value of the property. Worst of all are those that buy off the plan without a good knowledge of floor plans and rely purely on the advertising material produced by the marketing company; they queue up for a launch of a new development eager to own a piece of that proposed building, no matter what price. Exaggerated property values are another area I intend to investigate; I am often surprised at what people pay, especially first time investors. The questions I am often asked: how much is my property worth? They expect an answer immediately! and if the answer is not instant and inflated, the reaction is usually very negative. Property investment is not for those who wish to make quick cash, it can happen but to very lucky few; most who try to make quick cash returns, fail. Residential property investment is for the longterm. Those that hold on to good property, keep it in good condition, move with times in it’s presentation; will ultimately have a lifetime income stream and capital gains to be cashed in at the right time when the family can make real use of the funds. Many of my clients began investing in residential property in the mid 1990’s buying a property at a time, every few years as equity is mainly used to fund new investments, careful not to over extend themselves with borrowing. Some have a combination of sizes and styles of residential dwellings. Most properties have doubled in value since and are now showing more than 10% return on initial investment. No clever financing deals, no exaggerated income prospects, a healthy equity in each property or in the whole portfolio; and thinking before buying. If the least that The Property Review will do is to encourage it’s readers to stop and think before plunging into a purchase, then it would have succeeded. But I am aiming for more, in the way of ideas: the success of property investment begins with the purchase, but then: it has to maneuver through the market, the building management, the tenancy, the upkeep, law and taxation. The Property Review will assist to steer you through. Page 2
Milsons Point/Lavender Bay, now and then Milsons Point/Lavender Bay is bounded by the suburb of North Sydney, Middlemiss Street and Lavender Street in the north, generally by Ennis Road and Broughton Street in the east, Lavender Bay in the south and generally by the suburb of McMahons Point and Miller Street in the west. Milsons Point is named after James Milson, an early land owner. It was previously known as Murdering Point. Lavender Bay is named after the boatswain, George Lavender. Milsons Point/Lavender Bay and adjoining localities. Obtained from North Sydney council web site. Development of the area dates from 1805 when the first land grant was made, with land used mainly for grazing. Some growth occurred in the 1830s, following the establishment of ferry services across the Sydney Harbour. Subdivision and sale occurred during the 1850s with a number of large stately homes built overlooking the bay. Milsons point C.1915 Parts of the information contained in this article has been derived from North Sydney Council web site. Page 3
Page 1 and 2: THE PROPERTY REVIEW A Quarterly Jou
Page 3: Table of Contents 1. Editor’s Col
Page 7 and 8: Milsons Point/Lavender Bay, now and
Page 9 and 10: Furnished verses Unfurnished Kim Ph
Page 11 and 12: 607/48 Atchison Street, St Leonards
Page 13 and 14: Introduction to Property Valuations
Page 15 and 16: Sydney Median House Prices (Source:
Page 17 and 18: 14 Vernon Street, Hunters Hill Hunt
Page 19 and 20: Tower & London offices Head Office

2007 Winter

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