Archive for Buying

19 Akera Close, Hillarys is now sold

The greatest pleasure I have is to sell a home to someone who really appreciates the enormity of the purchase.

Buying a home is the biggest asset you can buy and it does not matter how much it cost is a roof over your head.

Rebecca Owen came to me and purchased 19 Akera Close and the tears of happiness made me the happiest Agent ever as I was involved on her purchase of her dream.

What a great feeling.

Thanks Rebecca to make me feel that my job really brings pleasure to people. I am so lucky that I love my job and I love to help people to achieve their dream.

A great time for buyers and renters, see the latest Property market quarterly data

I recent read a good article on the reiwa.com website that explains what happened in the September quarter for Real Estate across Perth and regional WA.

It mentions that now is most definitely a great time for buyers and renters with the current high volume of listings available and the median house price decrease.

REIWA President Hayden Groves said Perth’s moderating housing market presented fantastic opportunities for buyers to secure property at a more affordable price with houses and units both posting declines to their median house price in the quarter.

“The median house price for the September quarter came in at $522,133, an adjustment of 4.2 per cent on the revised June quarter median of $545,000, while units and apartments edged back 2.3 per cent to $420,125 from the revised June quarter figure of $430,000,” Mr Groves said.

Read the full post here.

Do you think Stamp Duty should be axed?

If you have ever been involved in the property market you have likely paid stamp duty,  but recently there has been growing calls for the tax to be axed.

First of all what is stamp duty?

Stamp duty is a tax paid on the transfer of land or the sale of a property. It is usually paid by the buyer – though there are some exemptions and concessions in some states – and is calculated either at a set rate or as a percentage of the total sale, depending on where the transaction took place.

Each state has a different rate of duty applicable to different types of property and was slated to be scrapped when GST was introduced in 2000, but remains to this day.

 

Should it be scrapped?

There are growing calls for the tax to be scrapped – from leading home builders, industry heavyweights and even the federal government, which labelled stamp duty “highly inefficient and inequitable” in its tax discussion paper earlier this year.

The HIA advocates the removal of stamp duty on property transactions and says axing the tax will benefit the housing market as a whole. It will likely lead to more new homes being built, which is essential to house Australia’s growing population.

Stamp duty currently adds thousands of dollars to the average mortgage and many home buyers have to borrow additional money to meet the tax payment, increasing their long-term mortgage repayments.

 

It’s a highly inefficient tax.

Leading home builder AV Jennings also recently called for stamp duty to be scrapped, with chief executive Peter Summers saying doing so would encourage more first home buyers into the property market.

What do you think? I would live to hear your thoughts on the matter?

 

18 Helpful Tips For Perth Property Buyers

Every property buyer in Perth desires a home in the best location, a home that can command a great rental value, a home whose value greatly appreciates over time. Of course, buyers also expect the home to be priced very affordably.

Though the Perth property market is facing an oversupply of units and houses, and the mining boom is over and done with, the fact remains that home supply is drying up in many key Perth suburbs, and it seems a matter of time (maybe 12 months) before things start looking up. Many experts reckon that the market will soon start consolidating and that the downside risks are limited.

Therefore, the market, though currently down, is nicely balanced between buyers and sellers.

Here are 18 helpful tips that should help property buyers achieve their goals:

  1. Chances are that you will not get your dream home. Therefore, you must be flexible. If you compromise a little here and there, you will get something that is close to your desired property. If you are rigid, you may lose out. 
  2. Don’t get emotional or hasty while making a financial decision. Study and analyze facts and figures, and sleep over it before making a decision. 
  3. Do not immediately rush into the arms of an agent. Browse online and newspaper listings first. Of course, if you are from out of town, then you might like to appoint a buying agent. 
  4. Speaking of agents – A buyer’s agent works for the buyer and a seller’s Agent works for the seller. Seller’s agents typically have a long list of properties, and too many unsuitable choices can end up confusing the buyer. Therefore, buyers must preferably work with a buyer’s agent. 
  5. What is the development potential of your locality? Have the local authorities planned projects that can increase or lower the value of your property? Figure out these facts by visiting the relevant local authority office and by inquiring with unbiased experts. 
  6. You might like to view the property at least 2-3 times at different times of the day. Check the condition of the house during the day, evening and night. 
  7. Run a check on your to-be neighbors – are they social? Do they play loud music? 
  8. Sure you know your credit score and your loan eligibility. But have you calculated expenses on insurance, agent fees, building & termite inspection fees, stamp duty, etc.? You must know how much you will spend on the property right down to the last penny – and you must budget for that final number. 
  9. Know that prior to the purchase you have to declare the amount financed and the name of the financial institution. This is why it is important to obtain pre-approval. Pre-approval usually takes 21 days (or perhaps more) and therefore you must be ready with it before you make an offer.  I can refer you to the perfect finance guru. 
  10. Hire building and termite inspectors to inspect the electrical wiring, plumbing, foundation, termite damage potential, etc. Your agent will help you locate experienced inspectors. 
  11. You can negotiate aggressively, but do not be too casual or frivolous. If you are not serious while negotiating, you may be considered as a person who is out to waste time. Be very factual while negotiating. 
  12. Understanding seller psychology can help. Western Australia is a buyer’s market and if you can figure out that the seller is desperate to sell, you can land up on a nice bargain. 
  13. Remember that property buyers in Western Australia have to work with a system that is legally referred to as ‘Offer and Acceptance’. If you make an offer, and if the seller accepts your offer, then it becomes part of the contract and it will be deemed that you have entered into a commitment to purchase the property. You cannot go back unless the seller does not fulfill a condition. The seller can accept, reject or make a counter-offer. If the seller makes a counter offer, it kills the original offer. 
  14. You must summarize in writing all the key transaction-related verbal communication you have had with the agent or the seller. 
  15. After both parties are in agreement, the settlement agent will take over the transaction and create the conveyancing documents/work. You have to pay up to $2,500 fees for this job. Some settlements agents are pricey, some come cheap. If you need one, let me know, mine is a Star! 
  16. The settlement agent prepares a Transfer of Land document a minimum of two weeks before the settlement date. This document is handed over to your lender. It is the job of the settlement agent to contact all the parties and inform them about the venue, time and date of the settlement. 
  17. Once the settlement process is over, the seller’s settlement informs the real estate agent, who then hands over the keys to you. Know this – your settlement agent must confirm that the settlement has happened. He should also send you a Statement of Adjustment that contains details about how the funds have moved between the different parties. 
  18. Finally, and this is the most basic tip of them all – never ever wait for the market to bottom out. Perhaps only God can predict that. Buy when you feel the time is right because if you don’t, you may be missing out on a solid investment opportunity. 

If you need help buying a home please let me know, I’m only too happy to help!

Sorrento Living releases new Interactive Market Research for Sorrento

If you are looking to buy or sell in Sorrento and want to do some research then you don’t have to go far.

Thanks to EasyPropertyListings, Sorrento Living now has an interactive market research tool that shows all sales in Sorrento as far back as 2013.

With a simple click of the button you can find properties sold in any street and get the list price, sold price and sold date and how long it was on the market for.

Simply go to Sorrento Market Update and create an account for instant access whenever you want day or night, Sunday or Monday. You will need to check you email for your access but it is as simple as that.

If you would like any further informations or have any questions, please feel free to contact me on 0416 188 752.

 

When is a good time to buy property? The answer is NOW!

Have you ever heard of the old man that is always waiting for the price to go down and never bought anything. Procrastinate and still paying rent.

Well don’t be like that. Buy TODAY, Let me to tell you my personal story.

Until 1995 I was travelling and living in many countries around the World until I came to settle down in this “God’s Country” as I call Australia.

My husband and I started to work hard, we got our residency permit and we were able to buy our first home here in Perth.

In 1998 I decided that it was time to invest and owe the banks and get our very own mortgage. My husband did not have the same opinion and I always waited when he was working out of the country and would find a property and buy it.

When he come home I would say: I bought a house. “Oh, God! You got ourselves in more debt.” He would say.

Through his and my hard work we kept paying the mortgages, got some rental income to cover some of the expenses plus the Tax Man was generous after all our deductions and I was always eager to buy more and still doing so today.

Mind you I am very cautious buying only what we can afford to pay for.

I bought properties in Hillarys for $146,000 in 1998. If I had waited for the prices to come down I would not have anything today.Do you know of homes in Hillarys worth $146,000 today? The market value would be $700,000.

I will tell you, prices do go down but you have to hold on to your property to have a real growth. Buying “bricks and mortar” is a long term investment.

Be sensible, buy today and every time you think you can increase your expenses without putting a burden in your family.

There are great deals out there. Go and look for it! Buy and create your portfolio. We started late in life but we still can enjoy our earnings.

It is never late to start. Don’t wait until you are too old to enjoy life!

Buy NOW!

First home buyers still have time to access grant

REIWA President David Airey has reassured first home buyers that there is still time to access the $3,000 grant for established homes before it is abolished later this year.

In last week’s State Budget, the Treasurer announced that the $3,000 First Home Owners Grant (FHOG) would be axed from established homes, which has confused potential buyers.

“While the $3,000 FHOG will be abolished, this won’t happen until the necessary legislation passes through the parliament,” Mr Airey said.

The Government cannot give a specific time for this to occur but has indicated it will be in the second half of this year.

“Eligible first home buyers who purchase an established home prior to the legislation receiving Royal Ascent will be able to receive the grant even if settlement is after this date.

“This means that potential first home buyers who are keen to buy an established home and enter the market over the next few weeks will still be able to access the grant for a while longer, and they should talk to their selling agent about this,” Mr Airey said.

Mr Airey said it was also very important to note that the stamp duty exemption for first home buyers will remain in place regardless of other changes.

“Despite the changes to the FHOG, entry-level buyers still do not have to pay any stamp duty for homes up to $430,000. This helps greatly with affordability and saves many first home buyers around $14,000,” Mr Airey said.

Mr Airey also reminded first home buyers about the Department of Commerce’s Home Buyers Assistance Account (HBAA).

“Many first home buyers on modest and fixed incomes may find they are eligible for the HBAA. This means if they buy an established home through a licensed real estate agent they can receive up to $2,000 to help with incidental expenses.

“This can include such things as a building inspection, termite inspection, the settlement agent’s fee and mortgage insurance,” Mr Airey said.

The $10,000 FHOG for new constructions will remain. Only established homes will lose access to the FHOG.

Source: REIWA

My number #1 tip for when buying or selling property

If you are thinking about buying a new property or even selling the one your in, my number one tip is to make sure all additions added to the property are Council approved.

Maybe you purchased your home or an investment property a long time ago and you were not concerned that the pergola, balcony, shed, pool, office may or may not have been approved by the Council.

Well times have changed and recently due to issues, buyers are demanding everything to be Council approved even if it wasn’t you that built the addition. So to avoid a catastrophe, penalty costs, settlement delays or a cancelled sale you need to make sure all home improvements have the necessary building approvals before putting your house on the real estate market.

Sellers tip: Go the the council and pay $100 to get your property’s BA (Building Approvals) so you know that the house, the pergola, the pool, etc has been lodged and approved.

Buyers tip: If you really want the house, there is no problem. Either the seller or the buyer can get an agreement which either one or both carry with the expenses and get a Compliance Surveyor to draw up the structure and get Council of the non approved structure.

It is a simple process. But can take at least 6 weeks to get the approval.

Settlement can happen prior and the approval will come later but it is better to have this done before you put your property on the market as changes later can become difficult to be rectified, especially if the addition has been there for over 40 years.

For any questions call the local council!

Answer your Investment Property questions with these do’s and dont’s

If you’re thinking about purchasing an investment property in the near future, your first step should be to get some answers to any questions you’ve probably got.

You need to make the right decisions in property investment which requires research and time and knowing which questions to ask, so to help you on your way, we’ve put together some DO’S and DONT’S of property investment.

DO your research in regards to the current market trends, the location of your investment property and expected rental returns. Measuring the level of rental demand is essential.

DO hire a respectable and trustworthy real estate agent who has a solid reputation in the area. Their experience and knowledge of property in the area will be useful when researching current market trends and location.

DO choose your finances carefully. There is a wealth of lending options available from different institutions and at very competitive rates. You should also talk with your current lender to see if they can match any rates or deals you find.

DO research tax laws and incentives. By knowing what benefits you’re entitled to as an investment property owner you can better plan for property repairs and prepare a financial forecast for your investment.

DO a list of essential features you need in your investment property, (two bathrooms, lock up garage etc). This will help you narrow down your search and avoid wasting valuable time viewing properties that are not suitable to your investment needs.

DONT become emotionally invested in an investment property. If you are looking to carry out renovations between tenants or before placing on the rental market, choose neutral colour schemes that will suit a range of tastes and increase the number of potential tenants.

DONT overextend yourself financially. There’s nothing worse than being stressed about how you’re going to meet the financial commitments a second mortgage brings.

DONT purchase a property if it’s ‘too good to be true’. If you’ve found a beachfront penthouse apartment for one third of what everyone else is paying, ask yourself why and trust your instinct.

DONT limit yourself to buying a residential investment property. Commercial investment properties also bring good returns for the investor. Like any investment, if you do your homework, you will reap the rewards.

DONT buy an investment property as a short term investment. Property investment demands long term commitment if you want to reap financial rewards. If you’re looking for a shorter term investment, look at equities and bonds.

If you still have more questions, I’m more than happy answer them so just feel free to comment below or call me!

Do you believe in Real Estate as an Investment with the new Interest Rate low?

At its meeting on 3 February 2015, the Board of the Reserve Bank of Australia decided to lower the cash rate by 25 basis points to 2.25 per cent, effective 4 February 2015 which is a new 60 year low.

TWO of the Big Four banks, Commonwealth Bank and Westpac have already cut their rates as well as smaller banks such as Bank of Queensland, ING Direct and ME Bank all cutting the full 25 basis points following the RBA’s move.

The pressure is now on for the other two big banks, ANZ and NAB, to pass on the full rate to its customers. ANZ said it will announce a decision by Friday 6th February.

What does this mean to you? Will you look at getting a loan to purchase a property and lock in these lower interest rates? Is now the perfect time to purchase new equipment for your business?

Perhaps now you can look at selling your current property and look at upgrading?

NOW is when you need to take advantage!

Property prices don’t go down (unless overpriced) so buy today and reap the rewards tomorrow

One day in 2002 when doing a home open in Sorrento, one of the neighbors popped in to see the house and compare it with his own but at that moment he was not looking to buy another.

We started to discuss properties and I asked him if he had anything to sell? He answered “yes, but in Narrogin”.

He explained where Narrogin so I said “I am interested. A weekend is coming up, give me the keys and I will investigate and come back to you”. The property had been on the Market with an Agency from Narrogin for the last 3 Month and no offers.

My husband and I drove to Narrogin and I visited the whole building of 10 units with only 3 being occupied. They needed a bit of work but 10 units, a whole building!

I had butterfly in my tummy from excitement so I put my head to work and sold the property in one week.

If you are thinking of selling and wish to employ my stamina, enthusiasm, excitement and most of all passion for Real Estate just pick up the phone and call me.

I am your girl!

Here is what those happy client’s said;

Hi Alycee
Loved your article and the property that we bought through you on 2 August 2002 for $264,000.
10 units in country town Narrogin 200 kms from Perth. Yes for all 10 units.

Oh so much anxiety did we pay to much. Why were only 3 units rented at $90PW each. Only 5.31% gross return.
With Alycee’s enthusiam and encouragement the sale proceeded.

We rebitumenised the driveway, put new carpets & painted all units and within 3 months all units were tenanted.

Now the property is conservatively valued at $1.5 million with rents at $220pw each, 43.33% gross return on our purchase price.

Thank you again Alycee.

Remember: People may say we are lucky but that is not so.
The more you work towards your goals, the “luckier” you become.
Luck plays no part in it. Goal setting and a realisation that we want to retire on an income equal to what we received when we were working and not less.

Please like us on italktravel North Perth, Colin is organising a South American Tour next year and we would love you and your friends to be aware of the trip.
Kind regards
Michael Beros