Welcome

It’s autumn already. Who would believe that only 1 month ago we were all looking forward to the day when it wasn’t 40ºC!

In this edition, we look at what is happening to the Melbourne property market, introduce Non Executive Management and provide you with an update as to the many exciting happenings at Urban Sensations – including the introduction of an exciting new service for DIY rejuvenators!

Rosalie Griffiths
Managing Director

In this Issue

Property Update

I was fortunate to attend a Melbourne Property Update conducted by WBP Valuers last month. Below is my summary of what is hapening to the residential market,

The first presentation was from Paul Baddick, Head of Financial Systems, ANZ Bank.
In terms of the current economic situation, “we are not out of the woods yet”……..
However, what is clear is that the Australian economy will perform relatively well compared to other countries. This is because the domestic economy was well placed before the downturn started (unlike the US, UK, Germany and Japan). For those visual folk, see the graph below…..



So what does this mean in terms of housing? Well put simply we will not see the prices of houses plummet significantly like in the US. Our economy is not in freefall and our fundamentals are strong (there continues to be an undersupply of housing in Melbourne). The lending practices in Australia are very different (much more conservative) than those in the US. We do not have sub-prime lending here. True, consumer sentiment is poor (indeed very poor!) however the other key drivers are positive!

Unemployment is tipped to rise to around 7.5%. But I just don’t get the “doom and gloom” mentality associated with this – to my mind this simply means that unemployment is going from a record low to return to the long term average? Check out the chart below to visualise this. Obviously if you have personally lost your job, your current sentiment may be somewhat different – however it is my firm belief that when one door shuts many doors open which can create a whole world of new opportunities.



Indeed housing affordability has rocketed over the last 12 months. Around 12 months ago you were not alone if you were contributing 40% of your disposable household budget to make mortgage repayments. Now, you are likely to be only spending 25% on mortgage repayments. Similarly petrol prices have reduced. It is estimated that the dramatic interest rate cuts that we have seen will halve the household debt service ratio.

Furthermore all of this news is fabulous for investors;
• There is likely to be a critical housing shortage over the next 5-10 years (more demand than there is supply)
• Rental yields are finally on the increase (on average rents increased 6-12% over the past 12 month). I for one am very happy with this – I’ve personally witnessed my properties going from a cash-flow negative position to a cash-flow positive position over the last 6 months.

The other 2 guest speakers for the morning were Greville Pabst, from WBP group talking on residential property outlook and Antony Belcher also from the WBP group talking on the outlook for commercial properties.

Greville’s presentation complimented Pauls’ in that residential property is the place to invest in at present. He reiterated that the demand for housing is outstripping supply, rental prices are increasing thus rental yields are on the rise. The key driver of the property market at present are 1st home buyers. The best bets for buying property over the next 12 months include the following:
• Properties <$600,000
• Units and apartments
• Buy the street, not the suburb
• Close to amenities (public transport, shopping centres, schools, technology, infrastructure
• Sustainable trends/ Green developments

Greville’s 5 hot spots for 2009 were listed as:
• Dandenong
• Glenroy (Inner Northern)
• Frankston
• Epping
• Surf Coast (Anglesea, Torquay, Lorne, Airey’s Inlet)

Note that most of these hot spots are in an area where new road infrastructure is in progress or is planned, making access a whole lot easier!

For those of you who would like a full set of the slides from each of the 3 presenters, please email your request to admin@urbansensations.com.au

Guest Business Section

It gives me great pleasure to introduce you to Mark Griffiths, Principle of Non Executive Management (also my husband, for those who were wondering………)

Non Executive Management

 

The Nine Paradigms of Business

In business there are nine paradigms of management expertise required to take a business through to achieving its full potential.

Research undertaken by nem indicates the majority of business owners are exceptionally strong in three of these areas, operationally adequate in three and often very poor in three. The areas where they are poor, however, are not evident to the owners. At best they see the symptoms that are a direct result of problems in these areas.

While a business can operate for some time with such symptoms it will never reach its potential and can often operate very inefficiently as a consequence.

In current economic conditions, there are a number of actions you can take to help your business survive and potentially thrive:
• A positive mindset;
• Talk frequently to your banker and accountant and ask them for help when required;
• Be on top of your financials and projected cashflow;
• Respond to information from your bank immediately;
• Identify the areas of your business where there is untapped potential or weaknesses;
• Unlock the potential within your current network through referrals;
• Strengthen the relationship and efficiencies with your suppliers;
• Access Government Funding where possible for business development, skills and training, research and development of new concepts and products, export and making your business more environmentally more sustainable;
• Create your team to take you through the next 3-5 years

nem is a national business advisory firm, that works closely with professional service providers such as accountants, bankers and lawyers, to provide high calibre management expertise to businesses.

The unique proprietary nem Business Development Process was developed to address the areas of limited expertise. This process uncovers the causes of the symptoms that are often so evident and brings these clearly to the attention of the proprietors, often for the first time in the history of the businesses life.

nem offers services across a broad range of industries and has speciality services that include the following:
• Business Improvement and Development
• Management and Support
• Marketing and Sales
• Interim and Project Management
• Human Resource and Industrial Relations Management
• Value focused Succession Services

For more information on nem’s business development expertise, take a look at our website www.nem.net.au or contact Mark Griffiths on 0403 496 450.

Urban Sensations News

Newsflash………… New Urban Sensations Website

We have been working hard for the last few months on updating and revamping the new Urban Sensations website. The new site is now up and running, so please take a look: www.urbansensations.com.au
The website allows us to do a lot more, change things more frequently and easily and hopefully is easier on your eye…. so keep it bookmarked as we will be launching some more new tools and products over the next few months (perfect for those who want to DIY).

Excitement.... New Service - particularly for DIY's...... Consultation Services

I am also REALLY excited to announce a new service for all our clients. Rosalie is now able to assist others with their own renovation. You can now book a one-on-one consultation with Rosalie to discuss and action any or all of the following:
• Advice about the practicalities of the rejuvenation you are planning (eg: yes, you can install a new bath, however it will be much cheaper to get the existing one re-enamelled because your old bath is simply too heavy to get down 3 flights of stairs….)
• What tradesmen do you need to employ in order to make the rejuvenation a reality
• Advise where to look for fittings and fixtures
• Source the fittings and fixtures for you (and deliver them when you want)
• Devise the schedule of works for you so that things start and finish on time
• Hold your hand when problems arise during the project

Use Rosalie’s many years of knowledge and experience to avoid many of the common mistakes that DIY’s make at a fraction of the cost of those mistakes! The even more fabulous part is that Rosalie is able to offer this service anywhere in Australia! So for those of you with investment properties outside of Melbourne – here is a great opportunity to make full use of Rosalie’s knowledge and know-how.

Consultation fees for this service are as follows:
• Initial 1 hour consultation and rejuvenation feedback - $179
• Off-site activities (eg: project planning, scheduling etc, email communication, mentoring) - $759
• On-site activities (problem solving, assisting with decision making, discussions with tradesmen) - $469

To celebrate the launch of this fabulous new service, Rosalie is offering to reduce these fees by a whopping 30% to everyone who books a consultation in between now and the end of April 2009. 


Don’t procrastinate, make use of this SPECIAL, ONCE ONLY INTRODUCTORY OFFER now! To book your one-on-one consultation or to arrange for Urban Sensations to project manage your rejuvenation for you, either;
•   Click here to book in now OR

  • Ring Rosalie now on 0411 323 877 OR

•   Email your request to info@urbansensations.com.au OR

•   Fax your request to (03) 9809 2335

DIY Tips

An easy way to convert a standard window or door into a "frosted/translucent" window/door is to use signwriting film or decor film. Decor film is much cheaper than sign writing film, however the sizes you can purchase are limited, so if you have a large area to cover you may need to order in a single piece from a signwriting company or other business that uses this type of film. There are many different "patterns" that you can purchase - including plain, ones with sparkles in them and various patterns. At Urban Sensations, we use this type of finish when we want to increase privacy (eg; bathrooms, balcony doors) without significantly reducing the amount of light entering the room. When installing the film, make sure the window is clean first! Also, cover the window with warm soapy water - this will allow you to move the film around to get it into position and will reduce the number of airbubbles you get in it. this means it will take you less time and the finished look will be more professional. 

Rosalie Recommends

I have 2 certificates to give away for a 1 hour transformational consultation (to the value of $300 each) from Vesna at Qt Transformations. Visit www.qttransformation.com for additional details. Having experienced Vesna’s insights myself, this is an amazing offer. First 2 people to contact me by email (info@urbansensations.com.au) will get the certificates!

Speaking Engagements

Rosalie was recently a guest speaker at the Melbourne Property School – talking about how to design, plan and do your own rejuvenation. For further information about The Melbourne Property School go to www.melbournepropertyschool.com.au. Rosalie can speak on a range of different topics such as property design, planning, time management, products to use, ideas to save you money etc….

To book Rosalie to speak at your next property event, please call Rosalie on 0411 323 877 or email admin@urbansensations.com.au

Recent Project

Alterations to a 7 year old four bedroom home. The home was recently purchased for our client to live in. Alterations were done to improve the appeal of the home to the purchaser without fear of over-capitalising.

On completion the home had : 

  • New light fittings and blinds throughout 
  • New tapware and accessories throughout 
  • New shower screens, vanity unit
  • Additional storage units in laundry, Built in Robe and Garage 
  • New appliances in kitchen 
  • New cupboard knobs throughout 
  • Family room tiled (was carpet) 
  • Pillar between 2 rooms removed and repaired 
  • Additional powerpoints and foxtel connections
  • Painted throughout
  • Additional security
  • Garden tidy

Time to complete: 5 weeks

Family room beforeFamily room after



That’s it from Urban Sensations for now. In the meantime, if you would like to book a consultation with Rosalie or would like Rosalie to speak at your next property event, please call her on 0411 323 877 to arrange or click here to use the booking form.

     

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