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Christian Payne

Christian Payne

Director - General Manager  

Phone: 95440000

Nerrida Payne

Nerrida Payne

Director - Financial Controller 

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Sid Payne

Director 

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Judy Payne

Judy Payne

Director 

Phone: 9544 0000

Ryan Clark

Ryan Clark

Operations Manager  

Phone: 9544 0000

Helena  Pipic

Helena Pipic

Residential Sales & Marketing - 0499 480 444  

Phone: 9544 0000

Lexene David

Lexene David

Commercial Sales & Leasing Manager  

Phone: 9544 0000

Bret Ransley

Bret Ransley

Residential Property Manager  

Phone: 9544 0000

Kirsten Saxby

Kirsten Saxby

Front of House & Sales Administration  

Phone: 9544 0000

Lesley  Mckevett

Lesley Mckevett

Company Accounts  

Phone: 9544 0000

Matilda Garling

Matilda Garling

Residential Property Officer  

Phone: 9544 0000

FUTURE-PROOFING YOUR INVESTMENT

Monday 22 Sep 2014 - by Domain

Here's why you should future-proof your plan: In 2000 a young buyer bought an apartment in Docklands at 15 Caravel Lane for $507,500; they resold it in 2014 for $576,000. Also around 2000, another young buyer spent a similar amount – $493,000 – buying a family home in Celia Street, Glen Iris; they sold it in 2014 for $1.5 million.

Future-proofing their plan effectively put $1 million into the second buyer's pocket.

That's why your plan should be in two parts: the "now PPPs" (price, property and position), plus what you're likely to want in the next five to 10 years. We call this the FFFs – five-year, flexible and future-proof. Get this right and it's worth another 10 or maybe even 20 per cent of that million dollars I promised you last week.

Most of us go through these basic stages in life: single (stage one), couple (stage two), young family (stage three), family with teenagers (stage four), mid-life crisis (stage five), kids left home (stage six), early retirement (stage seven), later retirement (stage eight) and then we all go to stage nine.

As a rule of thumb, each time you change homes it costs roughly 10 per cent of the property value in stamp duties, agents' fees, remodelling and moving costs. To put an extra $200,000-plus in your pocket, all you need to do is buy a home that will last you through several life stages. Technically, if you bought a home that could last you through all of life's stages, then you'd have almost a million dollars extra in your pocket, just from one smart decision.

How to make your plan five-year, flexible and future-proof?

You want to live in a groovy position such as Yarraville or Brunswick, or Box Hill or Mentone. I'm not suggesting Hawthorn or Albert Park because, as a young buyer, your budget is likely less than $1 million.

If you could buy a home that would see you through stages one to three – single, couple and young children – rather than move at each stage, you'd save 20 per cent of your home's purchase price. And you've made this money by simply making a good decision – no saving, no extra jobs, no going without.

What might the home that has good PPPs – price, property and position – and good FFFs – five-year flexible future-proofing – look like?

In Yarraville or Brunswick it would likely be a single-fronted, daggy-looking period house with an OK floor plan and parking. In Box Hill or Mentone it would be a 1970s house on a reasonable-sized block with an OK floor plan and a good backyard.

In either case, the house would be a good, but not impossible, walk from the shops and tram/train, and you'd be able to build extra bedrooms as the kids came. These smaller renovations would add significant value as these areas have a good market for upgraded houses.

You'd then have five-year flexible future-proofing on your PPPs until your kids reach their teens. You can then decide to either stay put (secondary education may force a move), renovate or resell at a good profit, which will give you a lower mortgage for your next home.

See how getting this first stage right is so important? If you were to buy in outer Melbourne, most likely you'd be treading water, with flat capital growth and little chance to improve your property. That would make the next step to inner Melbourne in a decade nigh on impossible.

As your kids get older, they get more expensive, and if your house is going backwards when you compare where you are (outer suburbs) to where you want to be (inner suburbs), then it's a double whammy.

I reckon you can have up to half a million dollars extra in your pocket in the next decade just by following this advice. I have at times and it's made me millions.

This is why the right plan and the right implementation are so important.

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