House prices in Bentleigh top $1 million – I couldn’t afford it here now

I mentioned the other day that it’s coming up on ten years since I bought my house in Bentleigh (hence the flurry of maintenance).

In that time, the prices here have gone through the figurative roof.

Median house prices: Bentleigh vs metro Melbourne
(Source: RealEstateView)

I didn’t think to save the data at the time, but this document tracks median house prices around Victoria from 1998 to 2008.

In 2005, the median in Bentleigh was $501,000. By 2007, it had shot up to $713,750.

There’s a gap in my info for a couple of years, but it got to about $910,000 by June 2010, before rising and dipping and dropping back to about $765,000 in December 2011.

As you can see from the graph, since then it’s climbed steadily: Figures in The Age recently indicate 14.4% growth in the past year, to a dizzying $1,003,000.

So not only has the median price now gone up about a million dollars, but it’s also doubled in the not-quite-ten-years since I bought.

I should note that although I own a house, it’s on a half-block of land, having been subdivided about ten years before I bought it. The rear garden is a mere courtyard, and it’s really only two-and-a-half bedrooms — all of which means I paid less than the median price.

The increase since means I lucked out on a good investment. Not that I’m planning to sell.

But it also means if I were house-hunting now, I’d be priced out of the suburb I’ve come to know and love.

And with my kids almost grown, I really wonder what the implications are for them and their peers.

Will the next generation be stuck as renters? Not that there’s anything wrong with that, but it’s nice to have the option to buy.

The alternative is to buy much, much further out, in suburbs with less amenity and walkability.

Bentleigh East is more affordable than Bentleigh, but is less walkable. Although the street layout is pretty good, access to amenities is reduced: Walkscore says 59 in BE vs 75 in B. And BE is mostly well beyond walking distance to the train network. Even then it’s not much more affordable — only about 10% cheaper, with a median price still over $900,000.

As others have pointed out, the capped public transport fares mean that if train/city access is your priority, it’s now better to look down the line than across from it. Think about travel time, rather than distance as the crow flies.

How long to the city? Metropolitan Town Planning Commission map circa 1920.
How long to the city? Metropolitan Town Planning Commission map circa 1920 — See blog post

For instance, along the Frankston line, spend another 10 minutes on the train (instead of fighting your way into the station car park every morning, or battling with hopeless feeder buses or facing a long walk) and you can be in somewhere like Edithvale, Chelsea or Carrum, at a cost of about 40% less than Bentleigh.

I’m sure it’s similar on other lines — though beware of train service frequency. For instance, out from Sunshine is quite good towards Sydenham, but the trains to Deer Park are hopelessly infrequent.

Of course there are other factors such as proximity to friends and family, crime levels, access to schools and shops and parkland.

And it’s still expensive of course. If you’re house hunting, or will be in the future, I wish you the very best of luck.

House repairs and renovation

Happy Australia Day! Now I’m going to do the Australian thing and talk about real estate.

Later this year it will be ten years since I moved into this house. It’s got me pondering maintenance, repairs and a little bit of renovation.

It started when I got my stepfather, who knows more about this kind of stuff than me, to look over the place and identify what needed fixing or upgrading. He came back with a lengthy list, and did some of the smaller jobs himself. Some of the major ones I’ve now organised to get done by tradesmen:

Window repairs. Some of the wooden windows need patching up as they’re showing signs of water damage. It’ll be good to get this done before it gets worse and more expensive to fix. Some of the sash windows need additional repairs, and the same guy can look at a couple of other issues including cracking brickwork.

Windows in need of repairs

This lead me into house painting. The windows obviously need to be repainted when patched. Looking at the rest of the outside of the house, it seemed like it might be a logical time to get it all done in one hit — for one thing where the windows were repainted, they’d match everything else.

Thirdly, external blinds. This is part of my three-point plan to keep the house cool on hot days via passive cooling. The first two parts were better roof insulation, and ceiling fans. I’ve ordered three external blinds for the biggest north and west-facing windows.

Wait, do ceiling fans count as passive cooling? Not sure, but hopefully the external blinds will make a difference, by deflecting the heat before it gets into the house. At present the inside of the house can get up to the low-30s on a really hot day.

I’d heard mixed reports from the big blind company starting with V (who also own the one starting with K), and ended up with the one with the appalling radio jingle starting with B. They came out on Monday and the bloke seemed cheerful and knowledgeable. I also got him to quote on replacing a broken interior window blind.

I’m not sure I understand their system of working out a price then automatically giving you a 40% “factory discount”. If that’s done as routine, it’s not really a discount — it’s just your price. I gather V/K do something similar, but press you to agree on the day to get some/all of that discount. Must be something they just do in the blinds business.

As part of preparations, I spent some time in the garden with various implements of destruction clearing away bushes from the walls and windows to about a metre. Hopefully it’s enough to allow the coming small army of tradespeople to do their work.

I’m also steeling myself for the cost. Suddenly I find myself up for about $800 of window repairs, $2000 in new blinds, and a third big bill for painting, which will drain away my savings somewhat.

But it ultimately is an investment in keeping the house shipshape, and cooler in hot weather.

(Some neighbours of mine have gone for a different plan. They’ve just moved out, in preparation for having their house demolished, and a brand new one built in its place.)

And doing a bunch of repairs and renovations at the start of the year is good, because (as will be the subject of a future blog post), I always get a whole raft of annual bills midyear.

Other things that need attention soon:

  • Some floorboards moving about a bit, producing gaps
  • Narrow cracks near ceiling in livingroom
  • Kitchen: remove blank plate over old light switch hole; fill and paint
  • Continue the clearout of stuff I no longer need! (Let’s face it, this is a long-term prospect, which has been going longer than I’ve lived here!)

Updates

Wednesday: Window repairs done, went smoothly, apart from one crack in a pane, which was then repaired. Now awaiting painter.

Friday: Painter came yesterday to get paint samples, and today used a high-pressure hose to wash down the house, and did some other preparatory work. Painting itself starts tomorrow.

Hi fi part 2: the kitchen radio

After buying the new livingroom hi-fi, my thinking was I want a device for the kitchen that does DAB+ for digital radio (eg music such as Double-J without relying on the vagaries of the internet connection) and can also do AirPlay (eg for music from iTunes on the Mac).

Devices that do both DAB+ and AirPlay in one kitchen-sized unit seem to be extremely scarce. The only one I’ve found was sold by Panasonic back in 2012: the SC-HC57DB, which also plays CDs. You can’t buy these new now, but you can find them secondhand and refurbished. That particular model had mixed reviews.

Okay then, what about concentrating on DAB, but also with network access to stream music via protocols other than AirPlay?

Pure do some nice radios. I looked through reviews and compared models — whose names are very confusing. I particularly like the one done up as a Marshall amp… with a Volume knob that goes up to 11.

I went out looking for Pure radios in the shops at lunchtime.

Pure radio

The Pure web site has a store locator which they might as well shut down (at least temporarily), as its data is hopelessly inaccurate. It says Big W and Target stock their products. I couldn’t find any. (In fact Target has moved to their own in-house hi-fi gear. Hmmm yeah… probably not the ultimate in high fidelity. $99 Target soundbar, anybody?)

It says Myer and DJs stock them too. This seemed more likely, but neither had any on display. It listed a store called Volume in Melbourne Central, which has closed.

The store locator doesn’t list Dick Smith, yet they did have some of their radios on display at their Emporium store, and happily in a spot where you could play around and listen to them. JB Hifi is listed, and do have them, but only a couple of models. Ditto Harvey Norman.

After researching the various models, I ended up deciding on the Pure One Flow, which gets good reviews — What Hi-Fi gave it 5 stars and the only down side they listed in the summary was it was “not the sexiest-looking radio we’ve ever seen”.

Given the lack of retailers stocking it, I looked online — a mob called WebRadios in Melbourne, who mysteriously only sell four products, had the best price. It arrived within a day or two.

Pure One Flow radio

Pure appear to have some skilled designers in product development — taking a leaf from Apple’s book, even the box was beautiful.

Pure radio upgradingOnce plugged-in and running, the radio wanted to patch itself when it was fired up, which I found amusing. Once done, it’s worked well, and is excellent for music from the kitchen, though it can go loud enough to be heard from most of my small house. Mono, but a good quality sound (to my unqualified ear).

Because I’m a geek, I deliberately got a model with network capabilities, though I haven’t fully explored them yet — beyond controlling it with my mobile phone, including piping music into it from the phone, and testing out streaming from a couple of exotic overseas radio stations. Neato.

If I really desperately want AirPlay, it does have an input, so I can add an AirPort Express. What I find more appealing through is that, if I get severe Sonos-envy, it can be part of a Jongo network of synced speakers (Pure’s probably not-quite-as-advanced version of Sonos), which can link through to an existing stereo via the Jongo A2 adaptor.

All in all though, I’m liking this new radio.

The other thing I’ve discovered while looking through the digital radio broadcasts is that I probably prefer the dinosaur music on Triple M Classic to Double-J.

Home loan: some progress at last

Here’s a graph of my home loan, which I got just over nine years ago.

The loan was approved in August 2005, but only took effect in October that year (the huge leap on the left).

Home loan balance, August 2005-August 2014

In the first year or so I was able to pay it down a bit. It only took me about 8 months to get the balance down to 95% of the initial loan. With interest burning up most of the payments, it took another 5 years to get down to 90%. This of course is why the graph looks jaggy — each month we go down a bit, and up a bit.

In the past few years I haven’t concentrated on paying it down further, but I do have a healthy working balance in an offset account. That combined with the current low interest rates have meant it’s taken under 3 years to move down from 90% to 85%.

The bank reckons the current forecast term is still 20 years and 3 months (gulp).

The nature of big loans is that the balance starts to drop faster the further you are into it, but one way of ensuring that would be to lock-in a fixed interest rate. The last time I tried this was precisely the wrong time — just before the Global Financial Crisis sent rates tumbling.

Still, rates are pretty low at the moment, so now might be a good time… though you can bet whichever way I go, the bank will win.

Painting

Helping out at M+J’s house yesterday: The perils of paint rollers… splattering paint.

Painting

Makes me wonder if my own house needs painting… Being weatherboard, the outside probably needs it more than the inside.

I’m also moderately impressed at the amount of detail from the phone camera.