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NRAS property at Stony Creek Estate, Cairns, Australia

In July 2008, the Rudd government announced a A$623 million initiative to build 50,000 new residential dwellings provide affordable housing to alleviate the severe housing shortage across Australia’s capital cities.

Named the National Rental Affordability Scheme, property investors can now receive up to A$100,000 in annual tax-free incentives over a 10-year investment period from the government in return for providing rental properties at 20 – 25% below open market rentals.

How does it work?

The federal government’s aim is to provide affordable rental accommodation to two broad classes of renters:

1. ‘Critical infrastructure workers’ – this group includes teachers, nurses, fire-fighters and police who have been priced out of the areas which they work;

2. ‘Income and welfare recipients’ – this group are those residents who are being forced to live further and further away from Australia’s capital cities as a result of fast rising rents.

Corporate superannuation funds, property developers and ‘not-for-profit’ organisations were invited to apply and partner with the government to build, fund and own properties which comply to affordability guidelines which resulted in more than 10,000 NRAS-approved properties now well underway in construction.

Investors who purchase NRAS-approved properties are eligible to 10 years of annual ‘tax-free’ incentives commencing at $8,672 in 2010. Each year, the incentive increases according to the rental component of the official rate of inflation. As rental properties increasing at their highest rate in 20 years, the annual NRAS incentive increase for 2010 is estimated to be 8.4%.

NRAS qualifying criteria

NRAS incentives are available only for properties which meet its eligibility criteria as follows:

• New and ‘off-the-plan’ properties only;
• Rented to ‘approved tenants’ at 20 – 25% below market rentals within the same suburb / region;
• Managed by an ‘approved property manager’ who is responsible in selecting eligible tenants, set rental rates and manager the investment property;
• Investment property is rented under the NRAS for 10 years (except in certain circumstances).

As the government intends to issue 50,000 licenses for properties which meet the criteria, individual property investors need to be aware there is a limited number of properties available under NRAS over the next few years.

Purchasing an NRAS property

The process for individual, private investors to purchase an NRAS property involved a little-known concept called ‘non-entity joint venture partner’ whereby the investor enters into a joint venture with an approved NRAS developer or institution (Joint Venture partner) who has been granted an NRAS licence from the government for a particular property. The investor purchases the approved NRAS property and then enters into two agreements:

1. A principle lease agreement with the JV partner who holds the NRAS licence;
2. A property management agreement with an approved property manager who is responsible for selecting tenants, managing the property, set rental rates and ensure compliance with the NRAS requirements.

The federal government pays 75% of the NRAS incentive to the JV partner, who in turns pays this amount to the property manager, who in turns pays it to the investor. The investor directly applies to the state government for the remaining 25% of the incentive.

Investors should also request for a ‘private binding ruling’ issued by the Australian Taxation Office from the JV partner to ensure the purchasing process and requirements are correctly set up to avoid possible non-compliance of any NRAS eligibility criteria.

Among the currently approved NRAS projects include properties located in the following locations:

1. Burnie, Tasmania;
2. Laidley, Calliope, Karalee, Proserpine, Southport, Booval, Redbank Plains, Caboolture and Townsville in Queensland.

Popularity: 47% [?]

Vacant land - corner Conquest Drive & Blossom Lane, Werribee, Melbourne

Subdividing property is like buying a whole cake for $30 and then cutting the cake into 8 equal slices and selling off each slice for $5. The sum of each individual slice is greater than the whole cake.

To ensure you maximise your profits from a subdivision and/or subsequent development, you will need to calculate the projected total cost base of the newly subdivided parcel of land, its estimated sale proceeds minus capital gains tax and selling costs to determine the profit. You will also need to estimate the value of the first and original parcel of land which is now smaller as a result of the subdivision. While land appreciates and buildings depreciate, you can subdivide land in most cases without significantly affecting the resale value of the existing building which subsequently resides on a smaller parcel of land after the subdivision.

Once the land is subdivided, you will be presented with new options an example of which is as follows:

Option 1: Sell subdivided land and use proceeds to substantially reduce mortgage.

Option 2: Develop and build new dwelling/s on newly subdivided land to either rent or sell

Option 3: Renovate house on original smaller land to either enhance rental rate or perceived value when selling

Option 4: Demolish original house to build new dwelling/s

There are many permutations within each option and the challenge is to find the best option. It should be noted the option with the highest profit may not necessarily be the best if the option requires a longer time frame and involve substantially more risk.

You need to take special note and be aware of the following issues in a subdivision:

1. Restrictions, covenants and overlays

The first point of contact should be to make enquiries with your local council to ascertain if there are restrictions and covenants such as minimum size of land and overlays imposed by councils to retain the character of the landscape. You need to be aware that not every property can be subdivided.

2. Setbacks

A setback is the area between a main road and the dwelling which cannot be built upon. Depending on the streetscape, different councils will have different restrictions and requirements on the area of setback. You also need to take into consideration as to whether existing trees are allowed by council to be removed to make way for development. In many cases, council may not permit trees which have exceeded a certain size or age to be removed.

3. Crossovers

Subdivision of land will invariably require you to provide street access and this may involve the construction of a new crossover / driveway. You need to be certain the new crossover do not interfere with existing drains, trees, electrical poles / cables or cause likely objection from neighbours.

4. Easements

An easement is an area set aside for the use and benefit of a third party. Most easements are created for purposes of access to sewerage, stormwater and power and are generally constructed along side or back boundaries of a piece of land. You are generally restricted from building over an easement although discussions with council and utilities may sometimes enable you to relocate existing easements to accommodate more effective development.

5. New title and approval

It should be noted you don’t require a new title to be issued in order to sell a subdivided piece of land or house. A contract can be conditional upon the new title being issued by a certain date.

Other related posts:

• Subdivision of land - Documents you need
• Subdivision of land – The Approval Process
• Subdivision of land – Calculating Capital Gains Tax

Popularity: 47% [?]

Riverina at Brookfield is a residential housing project currently being developed by Devine Property Investments. This project is located approximately 5km to the west of Melton.

This project consists of house and land packages to accommodate the growing population of Victoria, more particularly the north-west and south-west precincts of metropolitan Melbourne.

Typical house and land packages on blocks of land between 400sqm – 600sqm consists of 3 – 4 bedroom plus study, 2 bathroom and double lock-up garage priced between $282,900 – $335,900.

The average land price for 400sm – 550sqm blocks in the Brookfield area is approximately $250 per sqm.

Popularity: 27% [?]

This guide sets out the documents required for submitting a subdivision of land in the state of Victoria persuant to the Subdivision Act 1988.

A Subdivision Act plan is identified by the ‘PS’ prefix and in the plan number located at the top right of the plan.

Documents you need:

1. Plan of subdivision – This plan must be prepared on heavyweight paper and signed by a registered land surveyor and certified by the local council.
2. A transparency for each sheet of the Plan – This is a requirement of local council and the Plan or transparencies which are creased or damaged will not be accepted by the council.
3. Land surveyor’s report – This document is mandatory for all subdivision plans including non-survey plans.
4. Abstract of field records – This document must be provided if the Plan is based on a survey. If you do not have this document, you will need to supply a reference to its location in Land Victoria.
5. Application (Form 10) – The application can be purchased from Land Victoria and should be typed or legibly written in ink. The use of self-correcting typewriter ribbon or correction fluid is not permitted. The back of the form must not be used and any order to register or consent of mortgagee should be endorsed on the front of the application or on a separate A4 size paper.
6. Certificate of title – Not a photocopy, which may be:

a) in your possession

b) already lodged at Land Victoria in a current dealing. In this case if another party has produced the certificate of title they must endorse and sign as ‘order to register’ at the bottom of the PC form, or

c) held by a financial institution, solicitor or other party

who will endorse an ‘order to register and issuing instructions’ at the bottom of the PC form and make the certificate of title available at Land Victoria to enable you to lodge your plan. In most cases, the party making the certificate available will charge a fee.

You must ensure the certificate of title has been made available BEFORE attempting to lodge the Plan of subdivision.

Other related posts:

• Subdivision of land – Calculating Capital Gains Tax
• Subdivision of land - The Approval Process
• Subdivision of land – Top Strategies for Success

Popularity: 45% [?]

New land release off Exford Road, Melton South

Your home is usually exempt from capital gains tax (CGT) if you sell it due to the Principal Place of Residence (PPOR) exemption. However, if you subdivide the land upon which your home is built and sell off the vacant land separately from your home, this transaction will not qualify for the PPOR exemption.

Therefore, if you own a parcel of land and decide to subdivide it into 2 or more distinct parcels, you may be liable for CGT when you sell off the subdivided parcels. However, the process of subdividing the land will not result in any CGT liability as long as you continue to own the subdivided parcels. You will need to divide the acquisition and subdivision costs of the land across the subdivided parcels on a reasonable basis.

The example below illustrates the calculation of CGT for a subdivided piece of land:

Ivan bought a house on a 950 sqm block of land in December 2007 for $280,000 whereby the value of the house and land was $60,000 and $220,000 respectively. Ivan has lived in the house with his wife as his PPOR since the purchase and incurred $13,000 in stamp duty, legal fees and other costs.

In January 2009, Ivan’s wife felt the house was too big for the both of them and decided to subdivide the land into 2 separate and distinct parcels. Ivan agreed with his wife and proceeded to discuss with the local council and incurred the following costs for subdivision:

• Land surveyor’s fees, legal, application fees                            $15,000
• Fees and charges for utilities – water, electricity etc               $5,000

Ivan sold the rear parcel of land in December 2009 for $150,000 and incurred legal fees of $3,000 on the sale.

Since the rear parcel of land was separate from his PPOR, Ivan is not exempt from the PPOR status and proceeded to value his properties as follows with the help of a local valuer who advised the front and rear parcels of land were 60% and 40% of the original cost since the rear parcel was slightly smaller. Therefore, Ivan apportioned the original cost of the land of $220,000 as follows:

• Front parcel =  $220,000 x 60% = $132,000
• Rear parcel = $220,000 x 40% = $88,000

Ivan’s calculation of his liability for CGT for the sale of the rear parcel of land to be as follows:

The CGT on the sale of the rear parcel of land is therefore: Sales proceed less Total Cost Base = Capital Gain

150,000 – 107,200 = 42,800

Since Ivan has owned the rear parcel of land for more than 12 months, he can reduce his capital gain of $42,800 by 50%, after deducting any capital losses which he may have incurred for other assets.

Hence, only a capital gain of $21,400 is subject to the applicable rate of CGT for this transaction.

If Ivan sells his home on the front parcel of land, then he is eligible to claim the full PPOR exemption if he has used it as his main residence during the period which he owned the property. *

* Ivan may be eligible for partial / full exemption if he rented the house on the front parcel under the Australian Taxation Office’s  6-year rule for CGT.

Other related posts:

• Subdivision of land - The Approval Process
• Subdivision of land - Documents you need

Popularity: 75% [?]

Located 42km north west of Melbourne CBD in Melton, 15 Kurrajong Crescent is a 1979 brick veneer home built on a 586 sqm plot of fully level, rectangular land.

Comprising 3 double bedrooms, one bathroom with separate toilet, open plan kitchen, internal laundry, this north-facing home is for sale at $225,000 through Lorraine Johns of Stockdale & Leggo real estate agents in Melton.

It is currently tenanted at $250 per week.

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Why I like this house and location:

• Located on a quiet and leafy street, this house is only 700m from Melton train station on Brooklyn street and 100m to the local Station Square Shopping Centre which includes Coles, Liquorland, local butcher, newsagent, UFS pharmacy, fruit and vegetable grocer, post office and restaurants.

• Bright and light-filled due to its northern aspect, it has a good size lounge, open plan kitchen which opens to a large patio and backyard which is perfect for entertaining and weekend barbeques. The driveway includes a lockup carport and storage.

• Kurrajong Crescent is a 5-minute drive to the Woodgrove and Coburns Central Shopping Centre at the corner of High street and Coburns road, Hannah Watts Park and Melton Valley Golf Club.

• Being on the southern end of Melton, this location surrounded by schools and learning institutions within a 1.5km radius which include Melton Christian College, St Anthony’s College, Victoria University’s Melton campus, Staughton College, Melton South primary school and Coburn and Brookfield primary schools.

• This location will become increasingly strategic in future due to new residential developments to the west of Melton South in Brookfield and the south in the Toolern and Eynesbury regions.
• Investment wise, this property is cashflow positive at current interest rates.

More information can be obtained from the Melton Shire Council.

Vital statistics

Source: Your Investment Property, December 2009

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How it’s calculated:

Median price: Median price for the 12 months to August 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to August 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to August 2009

Gross yield: Estimated rental return, based on advertised rent to median price

View Full Album

Popularity: 25% [?]

Vacant land - corner Conquest Drive & Blossom Lane, Werribee, Melbourne

The process of subdividing land requires the approval of both the local Council and relevant utilities such as the water authority. For property owners who are not experienced in submitting a Development Application (DA) or Planning Application (as it is called in Victoria), it may be worth considering professional advice and assistance in dealing with the myriad of regulations and requirements of local councils. Each council, although having similar responsibilities in regulating development approval, have their own processes and conditions in approving applications for subdivision and development.

Professional advice include the services of town planners, registered quantity and building surveyors, architects and specialist property development firms which provide services such as site assessment, quantifying and estimating subdivision and building costs as well as project management services to ensure efficient and effective build quality and process. Brutal Art Design + Build or BAD + B is one such property development firm which helps home owners and investors to obtain approval for DAs and permits and minimise the risks involved in subdivision and property development. BAD + B is an award-winning firm based in Melbourne.

I have chosen the Melton Shire Council as an example to illustrate the application process.

The first point of contact is the Melton Council’s Planning and Development unit. Every subdivision that is approved by Council will have restrictions attached which vary according to each individual site. Whilst it is possible to subdivide land prior to obtaining approval to develop the land, most local Councils prefer approval to be obtained for development before applying for the subdivision.

Especially for residential subdivision, subdivision will generally only be approved if a planning permit has been issued for a multi dwelling development. This is because Councils want to ensure first and foremost that an appropriate development can be accommodated on the smaller lots after subdivision.

A licensed Land Surveyor is generally required to prepare plans for subdivision and other information required for a subdivision planning application and for the certification process under the Subdivision Act 1988.

The subdivision process occurs in 4 main stages and must be undertaken in this order:

1. A planning permit is required for subdivision under the provisions of the Council;
2. Certification of the plan of subdivision, which approves the subdivision under the Subdivision Act 1988;
3. Obtaining a Statement of Compliance, which is the final approval stating that all requirements have been met; and,
4. Lodgment of the documents at Land Victoria. This allows new titles to be issued for each lot created under the subdivision.

Stage 1 – Planning Permit

An application for a planning permit must be made with the Council’s Planning and Development unit for the consideration of the subdivision. Details of the planning permit application process can be found in the ‘How to complete planning permit application form’ Information Guide. The processing of an application to subdivide will sometimes include the referral of the application to external authorities such as utility companies (water, gas and electricity) for their consideration. These authorities often require conditions to be placed on any planning permit issued.

Stage 2 – Certification

Once the planning permit has been issued by council, the application for certification can be considered.
An application for certification must include:

• An application form;
• The applicable application fee;
• Twelve (12) copies of the plan of subdivision (A4 size) and
• Two (2) A3 heavyweight copies of the plan of subdivision.

The plan of subdivision must be prepared by a licensed Land Surveyor. An application for certification must be referred to the relevant authorities (e.g. water, gas, electricity, roads etc.) to ensure that the subdivision is appropriate. Once
all authorities have provided their consent to certify the plans, the plan of subdivision can be certified by Council.

Stage 3 – Statement of Compliance

A Statement of Compliance will be issued when the Land Surveyor has provided relevant documents and that all planning permit conditions have been complied with, all authorities have provided their consent that all their requirements have been satisfied.

Stage 4 – Lodgement

Once the Certified Plan of Subdivision and the Statement of Compliance have been issued to the licensed Land Surveyor, the plan can be lodged with Land Victoria enabling the issue of new certificates of title.

Public open space requirements

To ensure there are sufficient public open spaces for residents of the local community, subdividers may be required to contribute funds to assist in the purchase of land for public open spaces and the improvement of and ongoing maintenance of facilities in parks, ovals and other public open spaces within the municipality. Alternatively a portion of the subject land can be set aside to be used for such purposes. A subdivider is generally required to contribute to public open space if the land will be subdivided into more than two lots, or into two lots where either can be further subdivided at a later stage.

Open space contributions may vary between the types of subdivisions being carried out and the number of lots to be created, though can generally be up to 5% of the land value/size. Higher percentages may apply in specific areas of the
municipality.

Works

Depending upon the subdivision, work, such as vehicular crossings, road, drainage and general services provisions may be required to be constructed prior to the issue of a Statement of Compliance.

Fees

Throughout the subdivision process there are a number of fees required. Fees include, but are not limited to:

• Planning Permit Application fee;
• Certification Application fee;
• Open space contributions;
• Service authority fees and / or costs;
• Land Victoria fees for lodgment of Certified Plans;
• Works supervision fees;
• Maintenance of works bonds; and,
• Professional fees for relevant parties (e.g. licensed Land Surveyor).

Fees and costs generally depend upon the type and size of the subdivision.

Other related posts:

• Subdivision of land – Calculating Capital Gains Tax
• Subdivision of land - Documents you need
• Subdivision of land – Top Strategies for Success
• How to get approval for a Development Application (DA) or Planning Permit

Related sites:

• Brutal Art Design + Build, award winning property development firm

Popularity: 81% [?]

Located 42km north west of Melbourne CBD in Melton, 21 Toolern street is a 1972 brick home built on a 961sqm plot of fully level, rectangular land.

Comprising 5 bedrooms, 2 bathrooms with separate toilet including ensuite for master bedroom, open plan kitchen, internal laundry, double lock-up garage this north-facing home is for sale through mortgagee auction on 19 December 2009 by Stockdale & Leggo real estate agents in Melton.

Rental for this property is expected to be approximately $260 – $280 per week.

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Why I like this house and location:

• Located on a quiet cul-de-sac, this house is only 500m from Melton train station on Brooklyn street, 300m to local shops and 500m to the local Station Square Shopping Centre which includes Coles, Liquorland, local butcher, newsagent, UFS pharmacy, fruit and vegetable grocer, post office and restaurants.

• Bright and light-filled due to its northern aspect, it has a large living area with separate dining, open plan kitchen, family / rumpus room and a huge backyard which is perfect for entertaining and weekend barbeques. The driveway includes a double lockup carport and storage.

• Toolern street is a 5-minute drive to the Woodgrove and Coburns Central Shopping Centre at the corner of High street and Coburns road, Hannah Watts Park and Melton Valley Golf Club.

• Being on the southern end of Melton, this location surrounded by schools and learning institutions within a 1.5km radius which include Melton Christian College, St Anthony’s College, Victoria University’s Melton campus, Staughton College, Melton South primary school and Coburn and Brookfield primary schools.

• This location will become increasingly strategic in future due to new residential developments to the west of Melton South in Brookfield and the south in the Toolern and Eynesbury regions.

• Built on a larger than normal block of land, there is potential for subdivision and development (subject to Council approval). There are no less than 9 blocks of land on Toolern street which has been subdivided and units built to accommodate the growing population of Melton. This proposition will be attractive to builders, developers and the astute investor.

More information can be obtained from the Melton Shire Council.

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Vital statistics

Source: Your Investment Property, December 2009

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How it’s calculated:

Median price: Median price for the 12 months to August 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to August 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to August 2009

Gross yield: Estimated rental return, based on advertised rent to median price

Popularity: 24% [?]

A quiet cul-de-sac, Toolern street in Melton is only 600m from Melton train station on Brooklyn street, 300m to local shops and 500m to the local Station Square Shopping Centre which includes Coles, Liquorland, local butcher, newsagent, UFS pharmacy, fruit and vegetable grocer, post office and restaurants.

Toolern street is a 5-minute drive to the Woodgrove and Coburns Central Shopping Centre at the corner of High street and Coburns road, Hannah Watts Park and Melton Valley Golf Club.

Being on the southern end of Melton, this location surrounded by schools and learning institutions within a 1.5km radius which include Melton Christian College, St Anthony’s College, Victoria University’s Melton campus, Staughton College, Melton South primary school and Coburn and Brookfield primary schools.

Most importantly, located to the south east of Melton township, Toolern is a 2,500-hectare urban growth area within the current Urban Growth Boundary. The Melton Council has commenced a $15 billion initiative to establish the area as a major growth centre for Victoria which will be one of the biggest growth precincts across metropolitan Melbourne. The massive, long term urban investment strategy is a visionary program to create a major new investment location for Victoria.

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Vital statistics

Source: Your Investment Property, December 2009

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How it’s calculated:

Median price: Median price for the 12 months to August 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to August 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to August 2009

Gross yield: Estimated rental return, based on advertised rent to median price

Popularity: 19% [?]

Verve Apartments, Erskineville, Sydney

The newly completed Verve Erskineville apartments have proven to be popular among Sydney’s hip and eclectic city dwellers. Only 4 apartments remain unsold in this 106-unit development by AV Jennings.

Why I like this development:

• Located within a 5-minute walk to St Peters train station, this development is 3 direct stops or 10-minute train ride to Central station in the city and 6 direct stops to iconic Sydney harbour attractions at Circular Quay, Sydney Opera House and the Botanic Gardens.
• Some apartments have large storage facilities and double side-by-side car space which means you will never have to scour around for scarce public / visitor parking in this popular inner city location for your second car.
• Sydney Park’s outdoor activities – walking, running, biking, family picnics, is 5 minutes away. Sydney Park is also a leash-free park for dog lovers.
• 10-minute drive to Sydney CBD, Chinatown, Broadway Shopping Centre, Sydney Fish Markets and Sydney airport.
• Erskineville and Newtown’s cafes, pubs, restaurants precinct located within a 10 minute stroll.
• For investors, rental return for most 2 bedroom apartments range between $575 – $675 per week or between 5.3% – 5.7% return on investment.

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Vital statistics

Erskineville	Median price $	Weekly advertised median rent $	Gross yield $	3-year growth %	5-year growth %	Average annual growth %
Apartment	469,000	495	5.49	19.5	11.67	6.8
House	630,000	550	4.54	14.03	11.50	7.49

Source: RP Data & Your Investment Property, March 2010

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How it’s calculated:

Median price: Median price for the 12 months to November 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

3 and 5-year growth: Median price percentage change over the past 3 and 5 years to November 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to November 2009

Gross yield: Estimated rental return, based on advertised rent to median price

Popularity: 32% [?]

M8 Western Freeway heading west from Melbourne CBD

Land between Caroline Springs and Melton could be developed for up to 50,000 homes much sooner than anticipated.

Located 42km northwest of Melbourne CBD Melton is accessible via the M8 Western Freeway.

Local developer Mirvac and Malaysian property developer Jayaland plans to build a $4.5 billion, 717-hectare suburb of up to 20,000 residential homes in Melbourne’s Rockbank, a suburb between Melton to its west and Caroline Springs to the east. This project will be built over the next 15 years on the huge parcel of land which is already owned by the joint venture partners.

The two new suburbs would be split only by the proposed eight-lane Outer Metropolitan Ring Road. A corridor of less than five kilometres of undeveloped land would remain between Melton township and the shire’s eastern suburbs. Land between Caroline Springs and Melton has been earmarked for inclusion in the State Government’s expanded urban growth boundary, but the final boundary and outer ring road alignment are not expected to be finalised until next year.

A second development is a 30,000 residential homes project called ‘Stoneleigh’ next to Caroline Springs which is jointly developed by Hamton & Mondous and Melbourne’s boutique developer Evolve Development Group which is owned by businessman Ron Walker. The estate joins Caroline Springs and spreads west to Plumpton Road, and runs north-south between the Western Freeway to north of the Melton Highway.

Recent news about Evolve include its well-timed developments of 58 apartments in Drummond street, Carlton and the 68 apartments known as Coco in Melbourne’s hip suburb of Prahran.

Popularity: 27% [?]

Werribee Park, west Melbourne

Werribee is located 35km south west of Melbourne CBD and is accessible via the M1 Princess Highway. The local council for Werribee is the City of Wyndham.

The main commercial and retail centre is centred around Watton street which is less than 300 metres south of the Werribee train station. Local residents are well served by the main shopping centre of the suburb – Werribee Plaza which is located at the corner of Heath and Derrimut roads, approximately 3km north-west of the train station. Derrimut road is a major arterial road which connects the suburb to the M8 Western Freeway in the north. This M8 Western Freeway is a major road system which connects the Melbourne CBD to western suburbs such as Melton, Bacchus March and Ballarat.

Tarneit is a smaller township north of Werribee. It appears residential development is beginning to spread towards the north of Werribee as land parcels are being zoned and developed. A host of home builders are constructing new residential family homes which include Simonds Homes, a multi-award winning builder who are building modern single and double storey residential houses of up to 4 bedrooms in Tarneit.

Among the attractions in Werribee include Werribee Park which includes the Werribee Open Range Zoo, Werribee Park Mansion and State Rose Garden which is a sea of striking multi-colour roses when in full bloom.

Famous locals from Werribee include Deputy Prime Minister Julia Gillard.

Vital statistics

Source: Your Investment Property, December 2009 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ How it’s calculated:

Median price: Median price for the 12 months to August 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to August 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to August 2009

Gross yield: Estimated rental return, based on advertised rent to median price

Popularity: 21% [?]

Tenants who are renting homes and apartments need to be aware there may be a little more than paying a refundable up-front bond when signing on a new lease agreement with the real estate agent.

Depending on which state in Australia, there are one-off expenses which tenants may be required to pay, especially in the case of brand new apartments, units or townhouses which tenants are moving into for the first time. It is always advisable to check with the Department of Fair Trading if tenants are unsure about their rights and obligations.

Based on guidance from the Department of Fair Trading, a list of common expenses which the tenant is liable to pay in the course of leasing a new residential dwelling include the following items:

1. Water usage – tenant can only be charged for the metered amount of water usage. In the event there is no individual meter for a rented premises such as apartments and units, then a tenant cannot be charged for water usage.
2. One-off and on-going expenses which include opening of account with utilities such as:

• Electricity provider
• Gas provider
• Telephone / internet service provider

The landlord is responsible to pay for all service charges relating to water and sewerage issued by the local water supply authority. Under no circumstances can connection fees be passed on to the tenant.

Popularity: 7% [?]

Apart from the important aspect of location, these are my top 10 things relating to the physical aspects when buying a house, new or otherwise:

1. Termites / pests – always obtain a pest inspection report from a licensed builder and pest inspector to ensure the house is free from termites and other pests which may fester behind walls, wardrobes, floor and roof. These pests cannot be visually detected during routine inspections.
2. Rising damp – a building report will also reveal possible rising damp which may damage walls, floorboards and the long term structural integrity of the building.
3. Roof and building structure – Certain houses in Australia which are built before the 1980s may contain asbestos materials which can be harmful to human health. Some houses from earlier periods are also built on concrete stumps underground without adjustment joints and should there be extreme changes in temperature due to climate conditions, may cause cracking to brick or concrete walls.
4. Concrete cancer – this is a serious problem which is caused by rusted reinforcing from within the steel. Rusting causes the steel within the concrete to expand and allows water to seep into cracks and joints. Over time, this causes concrete spalling and will affect the structural integrity of the building.
5. Land subsidence – this is caused by a number of factors which include, poor water drainage, the type of soil and by water movements underground.
6. Aircraft, train or traffic noise – houses which are on flight paths, close to train tracks and main roads will experience noise and will affect its saleability.
7. Neighbouring developments – always check neighbouring houses to ascertain the type of residential dwellings such as proposed apartment blocks commercial development which may positively or negatively affect future values.
8. Zoning of land use – check and understand the type of land use which the house is built upon. Some residential zonings may also include industrial use and this may positively or negatively affect future values.
9. Streetscape – walk around the streets within the neighbourhood at different times of the day, talk to locals and find out how they feel about living on the particular street, whether there are any adverse aspects of living in within the local surrounds.
10. Feng shui – this is a more personal issue and depends upon individual tastes, beliefs and values. To me, the basic principles of feng shui attempts to apply common sense to living in harmony with our environment.  If applying such principles does not cause unnecessary costs or inconvenience, I am a firm believer of adopting good feng shui to achieve harmony and balance between yin and yang.

Popularity: 18% [?]

Located to the south east of Melton township, Toolern is a 2,500-hectare urban growth area within the current Urban Growth Boundary. The Melton Council has commenced a $15 billion initiative to establish the area as a major growth centre for Victoria which will be one of the biggest growth precincts across metropolitan Melbourne. The massive, long term urban investment strategy is a visionary program to create a major new investment location for Victoria.

Toolern is expected to transform Melton township into a major urban centre to the west of Melbourne, with new regional infrastructure and services to support existing residents of Melton as well as future residents within Toolern itself, Eynesbury and surrounding areas, with major features to include a new major activity centre, rail station and a regional employment precinct.

The draft Toolern Precinct Structure Plan provides for a major new community of in excess of 20,000 households and 50,000 people. The plan area has been divided into a three individual precincts, each comprising a number of neighbourhoods, focused around local services and infrastructure.

The Growth Areas Authority is an independent statutory body within the Victorian state government with a broad and facilitative role to create greater certainty, faster decisions and better coordination between all parties involved in planning and development of Melbourne’s growth areas. The GAA was established in 2006 and reports to the Minister for Planning as part of the Victorian Government’s plan for outer urban development. The GAA has been appointed by the Minister for Planning to oversee planning and development in Melbourne’s five growth areas:

• Casey – Cardinia
• Hume
• Melton
• Whittlesea
• Wyndham

The GAA works with councils, developers and government agencies to:

• plan new suburbs in a way that enhances quality of life for residents, creates local jobs and is environmentally sustainable
• create affordable housing and a greater range and choice of housing
• plan for infrastructure and services as new development occurs to meet the needs of the community.

Existing houses in Melton are typically brick veneer single storey dwellings.

Vital statistics

Source: Your Investment Property, December 2009

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How it’s calculated:

Median price: Median price for the 12 months to August 2009

Average annual growth: Average percentage change over the past 10 years as a per annum figure

5-year growth: Median price percentage change over the past 5 years to August 2009

Weekly median advertised rent: Median price of rental listings for the 12 months to August 2009

Gross yield: Estimated rental return, based on advertised rent to median price

Popularity: 31% [?]