2015년 3월 6일 금요일

Soil Tests for the Melbourne Residential Market: What Do They Mean, and Why Do You Need to Know?

What exactly is a soil test?  What does it mean to a person who is intending to buy land and build a new home?  Do you need to know, or can you leave it to the experts?  This article will give an overview of what a soil report is actually reporting, and why it is useful to educate yourself in this regard. 
In order to know what soil you are building your home on, as part of an application for a Building Permit for a new home you will need to obtain a Soil Test (also known as a Geotechnical report.)  This is required to verify that the foundation design on your working drawings is suitable for the conditions relating to your site.
In a nutshell, what your soil report is telling you is how much clay is in the soil.  Think back to playing with mudpies, you dug down and found some clay, and created an ash tray or other masterpiece.  You set it out to dry in the sun, and pretty soon, it cracked.  When clay is wet, it is sticky, and swells.  But when you let it dry in the sun, it shrinks and cracks. 
When there is high clay content in soil, as the soil loses moisture its capacity as a foundation comes into question.  Soil conditions in Melbourne change greatly from summer to winter, so there is a need to modify foundations to compensate for different clay content. 
Melbourne is broken up into specific soil classifications, based on their reaction to moisture.  A and S Class soils have low reactivity. M Class is Moderately Reactive which means your soil has medium reaction to moisture.  This is sandy loam to clay mixture.  H is Highly Reactive. E is extremely reactive, and P Class = Problem!  P Class cannot be classified without a lot more work.  This reactivity to moisture is essentially telling you how much clay is in the soil. 

Site classifications based on soil reactivity
Class A 
Stable, non-reactive. Most sand and rock sites. Little or no ground movement likely as a result of moisture changes.
Class S
Slightly reactive clay sites. May experience slight ground movement as a result of moisture changes.
Class M
Moderately reactive clay or silt sites. May experience moderate ground movement as a result of moisture changes.
Class H
Highly reactive clay sites. May experience a high amount of ground movement as a result of moisture changes.
Class E
Extremely reactive sites. May experience extreme amounts of ground movement as a result of moisture changes.
Class P
Problem sites. The ability of the soil to evenly bear a load is very poor. Sites may be classified as ‘Class P’ as a result of mine subsidence, landslip, collapse activity or coastal erosion. Ground movement as a result of moisture changes may be very severe.  If you are building on a Class P site you will need to consult a structural engineer.
Source: http://www.build.com.au/siteworks/earthworks-preparation/soil-testing-and-geotechnical-reports-0

What does all this mean to you as a person who wants to build a new home? 
Well, it comes down to how many experts need to be involved, and how much the foundations will need to compensate for soil reactivity.  Where a soil test is classified A, S or M, the foundation is generic or standard, and can usually be designed by a draughtsman.  Once you get to H E and P it must be done by a structural engineer.  (There are other factors that can make a report come back as P class, for instance if there are a lot of trees on your block this can impact soil classification because they effect the moisture of the soil.)
When people buy a block of land, they generally don’t have a soil report.  If they are in areas where the soil conditions are fairly uniform, such as Frankston, where it is predominantly sand, with a bit of research they should have a good idea of what soil conditions are going to be like.  When you are on the border of soil types, say in Doreen or Cranbourne/Pakenham, until a soil test is done you may not know what you are looking at.
When a test is done, the engineers bore until they hit rock or a solid clay base.  Even when there is sand, they are looking for an underlying solid clay base.  This will dictate how deep the foundations need to be. Fill is far worse than any amount of clay, because it generally has to be removed for the foundations.  There will be a need for trenches filled with concrete.  Imagine that there’s a metre of fill; now the foundations need to be a metre plus 600 mil below that for steel reinforcing.  These metres of trench will soon add up to cubic metres of concrete, and this is expensive. 
Your builder will charge differently depending on your soil report, because he has to.  When a builder charges more in these conditions, they are not trying to have a go at you.  While undoubtedly there are less than scrupulous builders, and you need to make sure you are with a good one, be aware that foundation costs can increase enormously depending on soil condition.  Soil reports are not smoke and mirrors in a builder’s hands: they are done by independent assessors, either a soil engineer or a geologist
How does Rock tie in? 
Whenever someone asks me, “does the contract include rock?” the simple answer is “No” because without X-ray vision, you don’t know what you will be presented with.  In Melbourne, areas such as Epping and Craigieburn and further West and South, all around to Caroline Springs, you are more likely to encounter Rock.  Just drive along the Western highway and see the fences our ancestors built out of the Volcanic Rock around them. 
Where striking rock is highly likely, the builder can use modern construction methods such as Waffle Pad, which is Reinforcement Concrete slab construction above ground out of Polystyrene blocks.  Instead of digging in, the building site is leveled, spread with crushed rock, and foundations are built above ground. There is some negative press about waffle pad construction, but this is based on the fact that when it was introduced a few instances were poorly implemented.  The issues were resolved, but there remains some misinformation.  Waffle Pad is a very valid method of construction in certain circumstances.   
When in doubt, speak to your builder.  I don’t usually suggest that people get their own soil report.  It is in your interest to go through this process in consultation with a competent custom builder, who is experienced in the terrain where you wish to purchase.  The builder will have a good idea as to what the soil is like in that area, and will also be able to advise you through the process to the best outcome.  Once you find a builder whose integrity and quality you trust, you will be able to work through the possibilities and process based on your particular situation. 

Sourse : http://blog.slopingblocksolutions.com.au/soil-tests-for-the-melbourne-residential-market-what-do-they-mean-and-why-do-you-need-to-know/

Melbourne Home Show

Melbourne Home Show
Australia's No.1 Building & Renovation Expo

http://www.hiahomeshow.com.au/index.htm
About to renovate or build? Then visit Melbourne’s favourite Home Show to see, try and buy all the latest products for your kitchen, bathroom or interiors upgrade. There are hundreds of new ideas to renovate your house, both inside and out. Get FREE expert advice from more than 300 leading Victorian suppliers, so bring your plans and photos. See everything under one roof - And kids under 14 are FREE!


9 - 12 April 2015 at Melbourne Exhibition Centre

Do High Voltage Power Lines Cause Cancer?

This could be a very short article. I could just write “no, power lines don’t cause cancer”—but that wouldn’t explain why so many people believe otherwise. And it won’t help people who are thinking about buying a home that has power lines nearby. So let’s look at this question a bit more closely.
For the past century or more, humans have been surrounding ourselves with an ever-growing array of electrical devices. All of these devices create electrical or magnetic fields, often called EMFs. There’s no doubt that our exposure to EMFs has increased dramatically in modern times. Not surprisingly, many people have worried that this is a bad thing. The belief is so pervasive that NIH has at least two websites devoted to this topic, one by NIEHS and one by NCI, as does the Medical College of Wisconsin. Realtors have created webpages to inform home buyers about how power lines might affect the value of their home. Not surprisingly, you can easily find companies on the Internet that will sell you devices (such as SafeSpace and EMFshield) to protect your body from the supposed perils of EMF.
Power lines in Suffolk England
Power lines in Suffolk England (Photo credit: Wikipedia)
People worry especially about high-voltage power lines, probably because they are carried by very large, highly visible structures that look vaguely threatening. This fear seems to have started with a 1979 study in which Nancy Wertheimer and Ed Leeper reported a correlation between high-voltage power lines and childhood leukemia in the area around Denver, Colorado. Wertheimer’s results spurred numerous studies in the years since. A review of the evidence in 1995 pointed out that
“There is no known mechanism by which magnetic fields of the type generated by high voltage power lines can play a role in cancer development. Nevertheless, epidemiologic research has rather consistently found associations between residential magnetic field exposure and cancer.”
Scientifically, the question at the time was, were these associations real or coincidental?  If they were real, what’s the mechanism? Clearly, further studies were needed. Well, twenty years later, the data are in: power lines do not cause cancer.
In 2002, the WHO commissioned a huge (339 pages) and very thorough report on all the types of electrical and magnetic fields on the planet and how these EMFs might effect our health. Among its findings were:
“There is little experimental or theoretical evidence that mutations could be directly caused by ELF [extremely low frequency] magnetic fields…. There is little evidence that ELF electric or magnetic fields can cause malignant transformation of cells in culture.”
The final conclusion of the WHO commission was that
“Static electric and magnetic fields and extremely low-frequency electric fields are not classifiable as to their carcinogenicity to humans (Group 3).”
Group 3 means we don’t have any positive evidence that EMFs cause cancer. The only lower category, Group 4, would mean we have evidence that electromagnetic fields do NOT cause cancer, but such evidence is very difficult to produce. In other words, they concluded that the evidence didn’t support a link, but more studies might yet find something.
After the 2002 report by the WHO, a study in 2005 raised the alarm again. In that study, Gerald Draper and colleagues claimed to find an association between the distance to the nearest high voltage power line and childhood leukemia. Draper found that living less than 200 meters from these power lines (in England and Wales) raised the risk of leukemia significantly compared to living at least 600 meters away.
The scientific reaction to the Draper study immediate and highly critical. Hepworth and colleagues pointed out that the results did not support a causal role for electromagnetic fields (which were not measured), but at best a geographic correlation. Kheifets and colleagues demonstrated out that the effect disappeared when the control groups were analyzed differently. Other critiques quickly emerged as well: a sign that science was working to self-correct, as it often does. But Draper’s study was widely reported, while the criticisms were not. The critiques, though, paint a compelling picture that Draper’s work was seriously flawed.
One of the most recent studies is from 2013 by Elliott et al. who looked at over 50,000 cases of cancer, including leukemia, brain cancer, breast cancer, skin cancer, and others. They found no increased risk for any of these cancer types and concluded
“Our results do not support an epidemiologic association of adult cancers with residential magnetic fields in proximity to high-voltage overhead power lines.”
This debate sounds very familiar. Many false hypotheses, such as the notion that vaccines cause autism, or that acupuncture can reduce pain, show the same pattern: a few small studies produce weak positive evidence, but then larger, better studies fail to back them up. Proponents always call for more studies, but if the effect is real, it doesn’t disappear when you do a bigger study. If anything, the effect should appear stronger.
A major problem that the EMF alarmists have, which none of the proponents have ever answered, is one of mechanism: how is the very weak EMF from a power line supposed to cause cancer? Multiple theories have been suggested: maybe EMFs affect the movement of magnetic particles within cells, or alter the voltages across cell membranes—but as the editor of BMJ, Geoff Watts, put it in his response to the 2005 Draper study:
“Evidence to support these and other ideas is at best thin and at worst non-existent.”
So no, electrical power lines do not cause cancer. But they’re still ugly. We should bury them all underground.

2015년 1월 28일 수요일

How to get started in property development

13 June 2012

How to get started in property development

                               
Property development can be daunting, so I’ve put together some FAQs to help address some of the important questions that will arise as you start your development.
This has been broken down to a three-part series:
  1. Getting started
  2. Design, planning and approvals
  3. Construction time
Today I will talk about getting started.
What is a developer?
I quite like this description:
“Developers buy land, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end” Wikipedia 
I especially like the words ‘create, imagine and orchestrate’, as this is exactly what we do at Property Bloom.  When we find a development site, I will stand on it and spend some time visualising what can work on the land,
What’s my development strategy?
Only you can answer this one.  It’s important to determine your development strategy and your investing criteria before looking for a development site.
Your strategy may include:
  • Land subdivision
  • Renovating and adding value to an existing dwelling
  • Dual-occupancy or low-density development
  • Renovating an existing dwelling and building new villas/units also on the land
  • Medium-density development

How much money will I need?
Well, that’s like putting the chicken before the egg. You should set a budget before you find your site. Your budget will help to determine your development strategy.  A simple land subdivision will be less costly (but not necessarily quicker) than a larger villa/unit development for instance.
How much profit should I be making?
Profit can come in many forms: long-term capital growth, rental yield, depreciation or tax returns and equity, even self-fulfilment.   As part of your strategy, you will need to determine your financial and personal objectives.   Do you want to sell immediately?  Are you planning to hold and refinance to draw out the equity you’ve created?  Are you developing to hold, rent and build your portfolio?
Each decision will mean different outcomes, and you need to seek the advice of professionals on this. Start with your accountant to ensure you understand the GST, CGT and other tax implications of your plans.
What’s the one thing you need before you put an offer in?
A conditional loan approval.  Knowing that you have a preapproval to a certain amount is a valuable negotiation tool. Tell the agent that you have your finance approved as you make your offer so he or she understands that you are serious and can follow through on your offer.
What are the four crucial pre-purchase checks needed?
  • Pest and building report – if there is an existing house you are going to keep/upgrade
  • Ident survey – this will show the dimensions, description of the property, any covenants easements and/or encroachments to the land.
  • Review the sales contract – use the professional services of a conveyance or solicitor, but you can easily check the 149 planning certificate to ensure it is recent. This document will tell you the zoning and if the property in a flood-prone, bushfire-prone or mine subsidence area and many other environmental factors.
  • Confirm with the council what can and can’t be done with the land, and you should have a good understanding of council’s development control plans.

Two important steps to make once you exchange or secure the site:
Order a contour or detailed survey – this is needed to supply to your architect or draftsperson and your builder so they can start work on your plans.
Order a geotechnical report – this will determine the site and soil classification and ultimately have a bearing on then engineering for your slab or footing design.  If you think the site could be risky, for example if you think it may be undermined or have a water course near or below it, have a geotech report done before you exchange or secure the site.
Who do I need on my development team?
  • Property specialist accountant and solicitor
  • Finance broker or personal banker
  • Surveyor
  • Architect/draftsperson
  • Builder and other tradesmen, such as plumber, electrician, carpenter
  • Consultants such as an engineer and private certifier
  • Quantity surveyor
  • Development project manager  – to guide you through the entire process
Getting started can often be the hardest step. Once you’ve found your site, completed your due diligence, worked out just what you are going to be doing with it and managed to secure it, then the best parts are yet to come.  Let the creative process begin.
Look out for part two next Thursday.
Jo Chivers is director of Property Bloom, which manages property development.