Easy Home Renovation For Profit » Practical Renovation

Victorian Water bills to rise dramatically

Tim — Wed, 23 Jun 2010 11:32:56 +0000

I am studying the rise in water Bills from the 1/07/2010 many bills will rise between 10 % to 20 % each year. I expect this to continue a compounding basis: over four years water bills could double from an average of $700 to $1400 annually per home. Private sources advise me that this rise and rate of rise is extremely likely, as the government uses water prices as an indirect form of taxation.
This is to pay for the very expensive Desalination plant at Wonthaggi, and the Pipeline from Lake Eildon to Maroondah.

The running cost of the Desal plant will be expensive to run and finance, it is reliant on a wind power plant being built for the electricity, too. So we have to pay for the wind power station, too.

There are ways to cut your water bill, as set out in my prior post. Every Victorian family will soon be made acutely, aware of the water saving measures of Tanks, taps, Dual flush systems, aerated taps, grey water systems, even rock lawns.

Check out the prior posts on this topic in easyhomerenovating.
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NRAS, Affordable Rental Homes

Tim — Wed, 16 Jun 2010 11:02:47 +0000

I am reading more and more about the increasing interest in building these homes. Both from Investors, Developers, and prospective tenants. I note there are large numbers of homes in the Development pipeline. Large Inner city sites for many apartments are coming on for Development. These should generate great interest from Investors and Tenants. The developers are recorded as complaining of the long time in the approval process. I fully expect Investors who have so far been reluctant to invest in the Scheme, will be hugely impressed by the Inner city apartments deals. Who wants to earn $9,100 extra each year for ten years on the rental income deal?

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Home renovating Repairs and Maintenance, re tax time

Tim — Wed, 09 Jun 2010 11:11:59 +0000

Hopefully most investors will write a pro forma tax schedule for the coming Tax year ending. Those within the BAS system, will automatically have much of this organised. This way one can measure what would be worthwhile for tax optiminisation. If one has a high tax payment year, there are heaps of areas one can spend money on, such as, essential upcoming repairs, gardening, gutters, fencing, high wear areas in the home. The ideas may seem trite but use a checklist approach.

1 Ask the tenants what needs repair,

2 Repair things that will add value, for example in, the Kitchen and Bathroom,taps, washers, handles.

3 Repair or Replace, Items that are coming up to their fully depreciated time, like Hot water service, Heaters, Cookers, Ovens, air conditioner.
4 For the furnished apartment, there are a wider range of items one could replace/repair: including the washing machine, Dishwasher, computer system, television.

I set aside around atleast one percent of the capital value of the home for these expenses. One way to think of them, as value adding essential items: either adding to the comfort for the tenant or value for the Investor.

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Rising price for water, effect on home renovating

Tim — Mon, 07 Jun 2010 05:43:04 +0000

Received my latest water bill, with the note Water Prices are to double over the next four years. In order to encourage me they are moving to volume charging for water, from the the first of July. “In order to encourage , me they are saying, Its all part of the Plan, to fund crucial water saving projects”, like the $5.8 Bn Desal plant and the Sugarloaf/Lake Eildon water pipe. Hope they aren”‘t stealing water from the farmers? One is critically aware the Desalination plant will cost a fortune to run on electricity. Queensland water price s up 10% today, am sure most States will keep in close alignment. Excuse is its to fund the recent $9 Bn in new water projects. V ictora” s announcement is due on 1/7/2010. Lots more environmental ideas in other Posts

I can agree with Storm water Harvesting recyle plant at Kalkallo: but its a tiny project.

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Super fast new Design petaflops computer

Tim — Wed, 02 Jun 2010 23:48:13 +0000

I am writing , today about the new range of super fast computers. The Japanese, have developed a computer to run at petaflops speeds: or the equivalent of one trillion mathematical calculations a second. The Chinese and USA people have now caught up with their own Super computers running at petaflops speeds. Thes are called the Dawning Nebulae and the Cray Jaguar, respectively. The USA speeds are the fastest but basically all petaflops speed computers are super fast.

Apparently the Moore’s law for computers is still working: that the speed of computing doubles every 18 months and the price of a computer halves. The implications for the property market are, startling. For instance many small business people work from coffee shops and Mc Donalds outlets. Major increase in jobs for travelling salesmen.
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New Ideas re Design Electric Cars effect on home renovating

Tim — Wed, 02 Jun 2010 00:19:16 +0000

Reading , about the new models, the Mitsubishi Imiev, { due next month } costing $62,000, closely folowed by the Tesla, Chinese EV made by BYD at $25,000, Nissan Leaf $40,000, with the Ford, GM Volt at $65,000 and Toyota models due in two years. A plug in Prius is also due, this has both the convenience of petrol and the low cost running of the electric power. While the Imiev is currently, too dear, its available this year, in July. The cost shall halve, as production volumes are expanded over the next two years. The BYD Chinese car is much more reasonable and due, for sale, next year 2011. Apparently the Chinese are expecting to surpass the volume of production of Toyota. The sales of Electric cars are to represent 10% of the world car market in 10 years, and 30 % of Developed country car sales {reference Delloitte}. The subsidies for purchase of an electric car vary from $7,000 to $9,450 in overseas countries.

The point is the electric car is arriving, and cars will remain the dominant form of transport for Suburban people. Currently there are three Imiev cars touring Australia for marketing.
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So one needs to take this into consideration in your property decisions

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NEW Woolworths/Lowes Stores, for home renovating

Tim — Sat, 29 May 2010 00:48:12 +0000

Writing for Australian readers of the expected benefits from the New Hardware chain to open over the next few years.

Its the Woolworths /Lowes Joint venture. The home improvement market is growing at twice the rate of the economy. Its a $40 Billion market. The Lowes store will compete with major white goods retailers and furniture stores, including, elements of Myer, Reece, Harvey Norman, Ikea, Freedom Furniture, Domayne, Retravision. The new chain will have 150 stores very quickly, by building on the Danks stores and parts of Mitre ten.

The new Lowes stores will have a wider range of home renovation products including, Furniture, White goods, Heating /Cooling, Home decorating products, Carpets, Storage, Curtains, Lighting, Kitchens,and Bathrooms. Bunnings also has an aggressive new store opening plan. Bunnings is more like the Home Depot format, Large cold Barns with a limited range of low cost products.

Woolis/Lowes will be more like Lowes a more comfortable store with a wider range of Home living products, some emphasis on Healthy Living, Decorative products like , curtains , Bedding , rugs, Saving Ideas, Trades Prossionals Installers and Free Creative living magazines.

Lowes has an FREE easy read Ebook, via computer.

I fully expect this competition will cut the costs of Home renovating products by thousands for each home. It will be a one stop shop for the home.

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National Rental Affordability Scheme for the home

Tim — Mon, 24 May 2010 23:50:26 +0000

Today, I write more about this scheme. Its a special deal for Essential Service delivery workers like, Ambulance drivers, Police , Nurses, Teachers, Firemen where they can rent for 25% under market rates. For the investors there is a top up of the rental loss with a tax paid subsidy, of Nine grand indexed to inflation. These deals can be so attractive they are strongly rental positive cash flow deals. In Queensland, the Queensland Affordable Housing Consortium is the one to talk to. In Victoria, its the Community Housing Limited. Initially, the scheme appealed to large developers and builders, now in the third stage its been broadened to the smaller end of the property market. While the scheme has been slow to make approvals, I hear its now taking off, with lots of numbers of homes in the application process. The plan is to build up to fifty thousand homes over three years.

Given close to eighty families apply for the each home, at a time perhaps it has some appeal?

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Electric cars effects on home values

Tim — Thu, 20 May 2010 02:04:07 +0000

Today, I am reading that Nissan, the Japanese car company will be announcing their Electric car, the Leaf. I expect it will be available within two years. Toshiba and Panasonic are also assisting the Japanese car companies to develop the Breakthroughs in New Lithium Ion battery technology. This means within two years we will have efficient electric cars available. The big announcements are when the car companies launch their new models in July, so we all need to stay tuned.

How will this impact on the home market?. I reckon the dire fear, of ” I,need to buy in the inner suburbs”, will abate. The outer suburbs will become more viable. As home owners realise the car will remain the dominant transport model.

While the Inner suburbs may remain popular, because of conveniance. Let not the fear of higher petrol prices be the driver.
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National Rental Affordability Scheme

Tim — Sun, 16 May 2010 08:36:03 +0000

National Rental Scheme

The government has set up the scheme , in order, to appeal to so called key workers: such as Police, Nurses, Teachers, service delivery workers. It is to build up to 50,000 Affordable houses: to reduce the rental cost with massive rental subsidies, of 25% of the regular market rents ; and encourage building of large numbers of affordable houses. Currently, into its third round of Applications, the builders and developers are discovering and supporting the scheme. Recent refinements to the application process will enhance the attraction for developers.

Who can apply for the renting? , well its means tested by income. Research via www.fahcsia.gov.au

What’s in it for the investor’? , a secure tenant, low expected vacancy, and a indexed rental rebate subsidy of $9,100 for ten years.

In rural and regional areas the effective rental return for investors, can be very attractive.
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