We need some Melbourne talk.....

[Bandita]

However, original period features are often sought after, and restoring a period home "back" from "modernaization" can be quite profitable - eg removing the fake brick cladding and restoring the weather board in the ad aussierogue posted.

Someone once told me, land appreciates and buildings depreciate - unless the building happens to be a character period home (obviously in the appropriate area).

Hi Y-man,

Has the demand for these types of properties always been so strong in Melbourne?

I keep hearing about all these suburbs (eg. Williamstown, South Melbourne, Port Melbourne, Yarraville) - that 10-15 years ago no one would have lived in - yet they have some of the most beautiful SF Vics around (which are obviously in high demand now) - but has it always been this way?

Cheers,
Jen

 

[The Y-man]

Hi Y-man,

Has the demand for these types of properties always been so strong in Melbourne?

I keep Cheers,
Jen

Hehehehe..... hence my little proviso about the appropriate area.
You can't have a single remaining period surrounded by industrial estates.... however, where they "fit in" - i.e. still numerous or new developments have been built to complement (eg replicas), there's a good chance of demand along the line.

Cheers,

The Y-man

 

[Bandita]

eg removing the fake brick cladding and restoring the weather board in the ad aussierogue posted.

Does anyone know what's involved in doing this? Costs? We've seen many beautiful homes covered in that hideous cladding, but have no idea of what costs are involved (and effort) in removing it.

Cheers,
Jen

 

[Purple Patch]

Does anyone know what's involved in doing this? Costs? We've seen many beautiful homes covered in that hideous cladding, but have no idea of what costs are involved (and effort) in removing it.

Cheers,
Jen

Hi Jen,
Can be very expensive as often the cladding is asbestos based, especially the faux brick stuff.

Cheers
PP

 

[Bandita]

Hi Jen,
Can be very expensive as often the cladding is asbestos based, especially the faux brick stuff.

Cheers
PP

Thanks, that's what we figured - what's "expensive" means in terms of approx price range?

Cheers,
Jen

 

[ozi]

We've seen many beautiful homes covered in that hideous cladding, but have no idea of what costs are involved (and effort) in removing it.

It makes you wonder, what the hell were they thinking at the time??

I too would imagine it isn't cheap to remove the cladding as you would probably need to replace the weatherboards underneath as well (?) I'd be interested in costs an effort involed too if anyone as done this before.

Regards,
Ozi

 

[MJK]

By the way, thanks for elaborating on the unit JenD. Interesting read.

Regards

MJK

 

[The Y-man]

It makes you wonder, what the hell were they thinking at the time??

I too would imagine it isn't cheap to remove the cladding as you would probably need to replace the weatherboards underneath as well (?) I'd be interested in costs an effort involed too if anyone as done this before.

Regards,
Ozi

Mmm... yeah, maybe it's better to put a layer of weather board over the cladding! (least it will be well insulated!!)

Cheers,

The Y-man

 

[Sultan of Swing]

I too would imagine it isn't cheap to remove the cladding as you would probably need to replace the weatherboards underneath as well (?) I'd be interested in costs an effort involed too if anyone as done this before.

What I've found around here is, a lot of people have put different types of cladding over perfectly good weatherboards.

Back in the '70s it was that asbestos, brickboard stuff that 'modernised' a house by giving it a brick look.

In the '80s till the present people started using PVC and aluminium types of cladding in an effort to make them low maintenance. It would often cost as much to clad a home as it would to paint it, so the theory was/is, 'Let's clad it once and we'll never have to paint it again'. Also the telemarketers would convince people that it added value. Personally, I hate the stuff.

Hence, often good weatherboards underneath BUT, not always, so it pays to check.

 

[Kristine..]

G'Day

I have bought two properties with the faux brick asbestos cement sheet cladding.

Underneath the cladding both the houses were in very good condition, however with Myrtle Cottage the windows seem to have been replaced at the time the cladding was installed, which meant the windows projected past the weatherboard profile when the cladding was removed.

As I intended to replace all the windows this was not a problem.

Reid's of Moorabbin did both jobs. The first job was very neatly done, the second was much rougher and I had not realised that they were going to remove all of the cement sheet product from the site - so this included the entire wall and ceiling lining from the laundry, the eave linings, the front porch lining and the cladding from one wall in the rumpus room.

So the first job was one thing, the second job virtually demolished sections of the house!

However, both houses were structurally sound. With the benefit of hindsight, I would still have had the first house cleared but not the second, although at the time I thought I was going to do a straight run through with a reno events took a different turn and I was left with an uninhabitable house which stood empty for about two years.

It would have rented OK with the cladding. Project management (mine) was more of a problem than the cladding itself.

Don't fix it if it ain't broke: Don't start the job unless you are in a position to complete the work in one run, even if this run takes months. I tried to do two jobs at once and resources simply wouldn't stretch that far.

Generally speaking you should be able to determine if the boards are still there, and if they have been covered for the past thirty years they would probably be in very good condition.

Each removal cost about $2,000 and took about one working day.

Cheers

Kristine

 

[ozi]

Thanks for the info SoS and Kristine! I've often been put off homes that are clad but I'll take a closer look next time I come across one.

Regards,
Ozi

 

[Bandita]

Thanks Kristine and SoS,

Wow, I'm actually suprised by how cheap it is to get removed!! I figured it would be much more pricey! Interesting as well - properties with that hideous cladding go for so much less than those without, maybe I shouldn't pass them up so quickly.....

Would a proper building inspection before purchase be able to determine if the weatherboards underneath were in good condition? Or is it a wait and hope type thing?

Thanks again, what great help!

Cheers,
Jen

 

[DavidMc]

Quite the contrary. I have noticed all major regional towns increasing in value. I think its a little more complicated than the "wave theory".

Oscar

My properties 40km SE of Melbourne have had around 4.5%pa growth for the last two years, however I can very clearly remember the family home in Cranbourne achieving practically nil growth over a 8(?) year period in the 90's.

My first investment property in Carrum Downs was purchased for 137k in 2002, the owner of my which built for 120k 9 years earlier, and made a few improvements such as decking and a double garage.

A similar thing for the family house when we lived in Traralgon.

Is it *that* unlikely something similar to this couldn't happen again? (even a mini version of it).

When I try to think of what's 'most likely' I look at a 30+ year trend. In those trends I see long flats, little spurts then long flats again (as you go further away from the CBD). AFAIK, they've all just had a lot of growth. I do also know the general trend is a population decline as well, which is vital to the supply side of the equation.

I'm sure you could point out a few exceptions to this general trend.

Maybe they'll go up, maybe it could stay flat. Maybe they could go down. I don't really know?

The thing with regionals though - one new mine opening up (or whatever) and the whole thing takes off again...

 

[DavidMc]

I have noticed all major regional towns increasing in value.

Really? I just checked APM for both Traralgon and Bendigo (the first two regionals I thought of) for the six months Jan 06 - Jul 06.

Traralgon Region: Houses -2%, Units 0%
Traralogn Suburb: Houses 2%, Units 17% (What the!? Must be a big new unit release!?)
Bendigo Region: Houses -2%, Units 0%
Bendigo Suburb: Houses +3%, Units -4%

Overall though nothing spectacular in my books (although worth checking out what happened in Traralgon, to check if the data is squewed due to a big new development).

Again, I'm sure you could show me an example of something that has done very well, although I'd guess it's more of an exception rather than the general overall trend.

Long term trends (i.e. 12 years) are good though (as always)

My father has all of this investments in Regionals so hopefully for him it's all going to be good.

 

[oc1]

Really? I just checked APM for both Traralgon and Bendigo (the first two regionals I thought of) for the six months Jan 06 - Jul 06.

Traralgon Region: Houses -2%, Units 0%
Traralogn Suburb: Houses 2%, Units 17% (What the!? Must be a big new unit release!?)
Bendigo Region: Houses -2%, Units 0%
Bendigo Suburb: Houses +3%, Units -4%

I;ll come back to you with info, however, i wouldn't use API figures with great confidence. Always better being on the ground.

Figures from API haven't made sense in the past (thus my reluctance to use them.)

As a preview, the key word is LAND.

Oscar

 

[our obsession]

Puzzled by the API figures for Bendigo too..

David Mc and Oscar

I am genuinely and seriously interested by the representation of the API figures for Bendigo.

We have become very familiar with the Bendigo and district region...I do not understand how those figures exist when land prices have doubled since 2002. Some have more than doubled.

I, too, get API and for sometime now have been mystified by the figures "portrayal" of the Bendigo region and was going to ask someone how could this be so vastly different to what is actually happening, and then I thought, well so what, your property is increasing what does it matter!

I have collected everything I can for 5 years on that area, from acreage for sale/sales results... just out of Bendigo, to land developments within it, to 1 bedroom flats, units, townhouses, and any other housing ...in 2001 it was widely known that within 16 years of inner city Bendigo land was going to be very scarce, and within 20 years outer suburbs land would also start to diminish... a lot of protected State forests etc are around (and within) the Bendigo region.
I believe it is the exception if something "has not" performed well...just don't understand those figures, maybe someone will be able to shed some light on this?

 

[DavidMc]

Just to make sure - those figures were just for the last six months and are perhaps 3 months out of phase (due to settlement times)? How does your data compare for this period (i.e. not the last 4-5 years)

I think I drove through Bendigo once before - I have no idea what it's like on the ground. Seemed like a nice place!

As always (like the general Melbourne market), there are markets within the market. Although, if you say it's all going up across the board, then something is amiss. I had always thought APM data was the one of the better sets of data - I don't have a lot of faith in REIV. Maybe Residex's 'same house' method would be good to compare as well?

 

[DavidMc]

Hahaha - The Commonwealth Bank property guide has Bendigo houses increasing 5% for the last 6 months.

Who to believe? Perhaps your own research. Or better still, perhaps forget about timing and concentrate on 'time in'. That's what I'm doing anyway.

 

[oc1]

Hahaha - The Commonwealth Bank property guide has Bendigo houses increasing 5% for the last 6 months.

Who to believe?

Catch my drift?

Oscar

 

[Peter Parker]

Hahaha - The Commonwealth Bank property guide has Bendigo houses increasing 5% for the last 6 months.

Last night on the train I picked up the Sunday Herald Sun Property Price Guide. The Guide stats came from REIV surveys.

Greater Bendigo scored +2% in the past year (to Jul 06) and +93% in the past 5 years.

These stats are also weird, eg Carrum apparently went up 20% in the past year but only 2% in the past 5 years!!! Whereas the lesser-quality Carrum Downs produced figures of 4% and 110%.

Generally the last 5 years isn't good as a long-term figure as it's biased towards the cheaper suburbs which had their booms later.

What counts as the 'average house' is extremely atypical in the REIV/HS stats. Eg the 'average house' in Werribee apparently comes with 230 m2 of land, whereas a visit will confirm that double to triple that is more usual.

Peter