Sub-prime revisited

As far as company names go, you would think that the "Federal Loan Modification Law Center" sounds pretty solid and reputable. Wouldn't you?

We have just read a story in the Australian Financial Review about a company which promised borrowers in California that, for a fee, they could negotiate lower loan repayments on their mortgages. Everyone has heard about "sub-prime" lenders and "ninja" loans (no income, no job or assets) that mushroomed during the US real estate boom - it turns out that the same guys that amassed a fortune selling these loans just changed the script and the product. Apparently they are still working out of the same offices! Plus they are charging fees up to $US3,495 with most of it paid up front!

Oh, and guess what? According to a New York Times investigation, despite all of the promises the company often failed to deliver reduced mortgage payments. The moral of this story has to be do your research and don't pay fees up front to mortgage brokers!

Why Poh should have won Masterchef

We manage Poh's family's property investments, so we were glued to the TV screen, along with 3.7 million other Australians last Sunday night.

We are not biased and there is absolutely no truth in the rumour that our interest in her winning was that she could have used the $100,000 as a deposit for a city apartment ... that we would manage!

These are the paintings we bought at her first exhibition at the Hill Smith gallery. Now that she is famous we are thinking about putting them up for sale on eBay to make a killing. Well done Poh!

Was this once Mel Gibson's pad?

We just sold this charming one bedroom apartment in Thornber Street Unley Park. It is situated upstairs in a heritage listed mansion, which was divided into flats to save it from the demolition guys.

Not only does it have a pool, outbuildings and a rambling 4000 square metre shared garden - there are chickens which provide a constant supply of fresh eggs. The apartment is held by way of a company title which differs from the more common strata and community titles. The owner doesn't have a title in any real estate, but instead has a right to occupy a defined area in the company owned building by virtue of owning shares in the company.

Another interesting piece of history is that this is the building where Mel Gibson and Robyn Moore lived as tenants in the late 1970's soon after filming the movie Mad Max. Robyn was a dental nurse and Mel was an unknown actor with the South Australian theatre company!

Boston Massachusetts to Adelaide

The power of the internet never ceases to amaze me, probably because I am a bit if a dinosaur...

Anyway, we rented an apartment in 223 North Terrace to a lovely young couple from Boston who have taken up professional positions at Adelaide University.

We took them out for a family lunch at the Vietnam restaurant on Addison Road at Pennington. If you ever go, try the quail or the pictured soft-shell crab (what's left of it).

Our new residents told us they knew exactly which building in Adelaide they wanted to live in before they arrived, as they had done all their research on their computer!

Imagine sitting there in Boston, founded in 1630 by puritan colonists from England, one of the oldest cities in the United States and a centre of education, browsing through properties in Adelaide. Wow! The world is really a small place now.

Residential vs Commercial prices

We thought it would be fun to compare some of our apartment rentals with small office rentals in the City of Adelaide. We looked at this on a "per square metre per annum" basis (shortened to 'per sqm' for convenience) and on a gross rental approach (ie the rental includes the property outgoings such as council rates, SA Water charges and body corporate fees).

The office building we picked is called Aurora on Pirie, and the rental includes a sky deck rooftop recreational facility with a gym, sauna, spa and lap pool. Carparking is not included.

Depending on the floor level you want, the rentals are from $460 to $480 per sqm.

So what about apartments?

This week in 223 North Terrace (next to David Jones) we leased a 1 bed and study apartment for $395 per week unfurnished but including whitegoods. Just like the offices in Aurora, it has access to a gym, spa, sauna, and lap pool, and also has no carpark. This apartment has an area of 62 sqm, so it works out to be $332 per sqm.

In the same building, a fully furnished apartment with a carpark and a North Terrace view, 2 bedrooms and 2 bathrooms will cost you $650 per week or $345 per sqm.

	Office	Apartment
Rate	$460 to $480 per sqm	$332 to $345 per sqm

So if you want to live and work in the city you should consider renting an apartment and meeting your clients in coffee shops. It's a lot cheaper and the coffee is a whole lot better than what you drink in the office!

The Conservatory on Hindmarsh Square Adelaide.

This is the city's first high quality mixed use building situated on the corner of Hindmarsh Square and Grenfell Street.

We think this 18 level tower looks great and can't wait to see the interiors of the apartments. We're told the building will be ready for occupation in late August, and we are sure the buyers will all be pretty excited about handover.

We have already on-sold some 2 bedroom apartments for first purchasers who bought off the plan, the latest was last week for

a sale price of $735,000.

We have also pre-leased a 3 bedroom apartment for $890 per week. Our owners are New Yorkers who will be visiting Adelaide in August to see their new apartment. The tenant is a retired Adelaide businessman who wants to try city apartment living. We reckon he will love the lifestyle and end up buying one for himself!

See our sale listings in the building

See our rental listings in the building

Our new office?

Could this be the new premises of Buchan Lee Property Group?

We've been looking at potential properties in Stepney, Walkerville, Rose Park, and Norwood, however this fantastic warehouse style office/apartment above Wakefield Street in the Adelaide square mile looks to be the winner.

Check out the beautiful polished concrete floors and stunning boardroom table made from a huge piece of varnished redwood. The legs of the table are actually the 2 ends of a big water pipe!