Archive for Finance

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!

Happy New Financial Year for 2015/2016

I would like to wish you a very happy and fortuitous new financial year. We hope the 2014 Financial Year was prosperous for each of you and hope that you enjoy plenty of success in 2015.

Like the calendar new year, July is a good time to set New Year’s resolutions for your business and personal financial prosperity.

Planning to spend time on your business rather than in your business is critical to achieving sustainable business success.   Why not consider;

  • Preparing, reviewing, or updating your business plan
  • Review how your achievements in FY14 measured up against your goals and determine what you need to do differently in FY15 to get a better outcome?
  • Consider your business succession plan (it’s never too early to start)
  • Review your finances – can you get a better deal on your general insurances, home loan, business loan, equipment leases?
  • Have you considered salary packaging to increase your take home pay and benefits?
  • Future finances – How will you support yourself in retirement – who should you consult?
  • Estate planning – establish or review your Will and speak to your family about it so they are aware of your wishes.

Call your accountant to help you with your tax planning.

RBA Announcement – June 2015

The Reserve Bank of Australia has made the decision to leave the cash rate on hold at 2.0% for June 2015.

As predicted by the majority of leading economists, the Reserve Bank of Australia has made the decision to leave the cash rate on hold at 2.0% for June 2015.

This decision follows rate cuts in February and May this year which have lowered the cash rate to an all-time low for Australia.

The decision follows pressure on the Reserve Bank to help boost economic growth whilst also keeping house prices in Sydney and Melbourne under control.

With the cash rate at an all-time low, and interest rates also extremely low, now is the time to review your home loan to make sure you are using the most suitable financial solution for your personal circumstances.

The Real Estate Market in Sorrento for March

If you ask any Real Estate Agent right now they will tell you that business is slow and that there isn’t many new listings out there and sales are few and far between.

If you ask the buyers right now they will tell you that prices are too high but they are still looking and waiting for the perfect house in their price range.

So what does this information tell you, if your thinking of selling? That there are still buyers out there looking to buy but they are waiting for properties to drop in price and are not moving out of their price range. This wait time is allowing them to be ready financially and giving them opportunity to know exactly what they want and where they think houses should sit in today’s market.

I have many buyers waiting with all different types of price ranges, ready to go ahead and make that purchase on their perfect home. Is your home my buyer’s perfect home? Give me a call to find out!

Here is what the Real Estate Market in Sorrento looked like for March!

March Listings

NoStreetSuburbTypeB / BCurrent PriceDays
on
Mkt
Agency
4Anaconda PlaceSorrentoHouse4 / 2Offers from $1,129,00023Realmark Coastal
50Clontarf StreetSorrentoHouse3 / 1From $849,00014Realmark Coastal
60Harman RoadSorrentoHouse4 / 2Mid $900,000's9Realmark Premier
150/7Harman RoadSorrentoUnit1 / 1$145,00013Ray White North Quays
140/7Harman RoadSorrentoHouse1 / 1$255,00023Peard Real Estate Hillarys
27Helsall courtSorrentoHouse4 / 3From $1,495,00023Realmark Coastal
37High StreetSorrentoHouse4 / 2High $800's - Low $900's15Harber Real Estate
3High StreetSorrentoHouse4 / 2$1,550,00029M & H Sutton Realty
7BHood TerraceSorrentoDuplex3 / 2From $939,00029Peard Real Estate Hillarys
21Keans AvenueSorrentoHouse4 / 2Expressions of Interest14Renouf Real Estate
8Ledge PlaceSorrentoLand0 / 0$1,350,0006Professionals Granger Clark
5Manakoora RiseSorrentoLand0 / 0$1,100,00026Peard Real Estate Hillarys
25Parker AvenueSorrentoHouse3 / 2From $995,00023Peard Real Estate Hillarys
142Parnell AvenueSorrentoHouse4 / 2$999,000 - $1.079,00028Harber Real Estate
48St Helier DriveSorrentoHouse4 / 3Offers from $1,680,00023Davey Real Estate
25/160West Coast DriveSorrentoTownhouse3 / 2CONTACT AGENT20Ray White North Quays

Available Properties

NoStreetTypeB / BCurrent PriceDays
on
Mkt
Agency
Lot 704/108- 114 High StreetLand0 / 0$599,000117Peard Real Estate Hillarys
4Anaconda PlaceHouse4 / 2Offers from $1,129,00023Realmark Coastal
17Angler WayHouse4 / 2From $799,00033Peard Real Estate Hillarys
67aAshmore WayHouse3 / 2$949,000129Peard Real Estate Hillarys
72Ashmore WayHouse5 / 3$3.900,000 - $4.600,00047Harber Real Estate
3Bahama CloseHouse4 / 2From $1,295,00042Renouf Real Estate
3BCervantes PlaceDuplex3 / 1From $749,00052Peard Real Estate Hillarys
130AClontarf StLand1 / 1Fr $530,000160Ray White North Quays
109Clontarf StreetHouse4 / 2$939,000 - $989,00058Harber Real Estate
50Clontarf StreetHouse3 / 1From $849,00014Realmark Coastal
17Delambre PlaceHouse4 / 4From $1,499,000150Realty Executives
60Harman RoadHouse4 / 2Mid $900,000's9Realmark Premier
140/7Harman RoadHouse1 / 1$255,00023Peard Real Estate Hillarys
150/7Harman RoadUnit1 / 1$145,00013Ray White North Quays
27Helsall courtHouse4 / 3From $1,495,00023Realmark Coastal
12Hermite RiseHouse4 / 3From $979,00040Peard Real Estate Hillarys
3High StreetHouse4 / 2$1,550,00029M & H Sutton Realty
37High StreetHouse4 / 2High $800's - Low $900's15Harber Real Estate
32/3Hocking ParadeTownhouse3 / 2$935,00092St Ives Sales
9Hocking ParadeLand0 / 0From $1,300,000291Peard Real Estate Hillarys
7BHood TerraceDuplex3 / 2From $939,00029Peard Real Estate Hillarys
21Keans AvenueHouse4 / 2Expressions of Interest14Renouf Real Estate
6AKeans AvenueHouse4 / 2From $995,000152Peard Real Estate Hillarys
8Ledge PlaceLand0 / 0$1,350,0006Professionals Granger Clark
5Manakoora RiseLand0 / 0$1,100,00026Peard Real Estate Hillarys
16Manakoora RiseHouse5 / 3From $1,795,00058Renouf Real Estate
25Parker AvenueHouse3 / 2From $995,00023Peard Real Estate Hillarys
23Parker AvenueHouse2 / 1$1,320,00042Davey Real Estate
20AParker AvenueHouse3 / 2From $1,050,00090Ray White Uxcel
142Parnell AvenueHouse4 / 2$999,000 - $1.079,00028Harber Real Estate
/5Robin AvenueHouse4 / 2$1,550,00085
10Robin AvenueHouse5 / 3$1,800,00048Dempsey Real Estate
/52Robin AvenueHouse5 / 3$1,550,00085
11Ross AvenueHouse4 / 2$1,200,000149Davey Real Estate
45Seaward LoopHouse5 / 5$2,500,000469Professionals Granger Clark
72Seaward LoopHouse5 / 4LOW TO MID $4M'S84William Porteous Properties International
48St Helier DriveHouse4 / 3Offers from $1,680,00023Davey Real Estate
25/160West Coast DriveTownhouse3 / 2CONTACT AGENT20Ray White North Quays

Properties Sold in the Last 3 Months

NoStreetTypeB / BSale PriceSale DateDays on MktAgency
5Cadiz CourtHouse6 / 3(UNDER OFFER)26/03/201443Harber Real Estate
6Dempster PlaceHouse4 / 3(UNDER OFFER)24/03/201420ACTON North
8Corfu CourtHouse5 / 2(UNDER OFFER)24/03/20145Century 21 Gold Key Realty
18Porteous RoadHouse4 / 3(UNDER OFFER)19/03/201442Realmark Coastal
3Grenville AvenueLand0 / 0(UNDER OFFER)11/03/201419Peard Real Estate Hillarys
18Hibernia RiseHouse7 / 3$1,380,00011/03/201447Realmark Coastal
12Bonito WayHouse5 / 2(UNDER OFFER)10/03/201414Peard Real Estate Hillarys
26Delambre PlaceHouse4 / 2(UNDER OFFER)3/03/201422Peard Real Estate Hillarys
169/7Harman RoadVilla1 / 1$250,00024/02/201481Ray White North Quays
2Anitra CourtHouse5 / 3$940,00018/02/201424Peard Real Estate Hillarys
127High StreetHouse3 / 1$745,00017/02/201442Ray White North Beach
1Frobisher AvenueHouse4 / 2(UNDER OFFER)10/02/20147Peard Real Estate Hillarys
49/160West Coast DriveTownhouse3 / 3(UNDER OFFER)5/02/201447Caporn Young Estate Agents Pty Ltd
21Elfreda AvenueHouse4 / 2$840,0003/02/201454Harber Real Estate
36/160West Coast DriveHouse3 / 2$795,0001/02/2014481Realmark North Coastal
85Marine TerraceHouse4 / 2$849,00026/01/20143Peard Real Estate Hillarys
52Myrtle AvenueHouse4 / 2$865,00026/01/201460Peard Real Estate Hillarys
49Chandler RoadHouse4 / 2$970,00025/01/201417Harber Real Estate
30Marine TerraceLand0 / 0$730,00024/01/2014148Peard Real Estate Hillarys
100Parnell AvenueHouse3 / 2$790,00024/01/201416Peard Real Estate Hillarys
41/7Harman RoadHouse2 / 1$345,00021/01/20147Ray White North Quays
39Raleigh RoadHouse4 / 2$1,400,00019/01/20144Harber Real Estate
5Templetonia AvenueHouse4 / 2$867,50018/01/201465Davey Real Estate
23Seacrest DriveHouse4 / 2$810,00018/01/20148Harber Real Estate
125/1Padbury CircleUnit2 / 1$278,00018/01/2014222Ray White North Quays
3AMyrtle AvenueTownhouse3 / 1$450,00016/01/20146Adrian Cocks Real Estate
33Myrtle AvenueHouse4 / 2$749,00012/01/201480RealtyWest
71Seacrest DriveHouse4 / 3$1,200,0007/01/201471Ray White North Beach
13Frobisher AvenueHouse5 / 3$1,300,0003/01/201456Optimus Real Estate
To see what has sold in the last year see the Sorrento Market Statistics
Source REIWA: The information contained above has been provided by the Listing office or person. All listing details should be checked with the Listing office or person. In accordance with Sorrento Living’s Terms of Use, Sorrento Living will not accept any responsibility should any published details prove to be incomplete or incorrect.

Financing for better rates. Is it possible?

I have been selling real estate for a long time now and sometimes I advise my clients to go to a Broker to get their finance when they have not approached anyone else.

Talking to a lot of people I have found out that they just accept whatever the Banks are offering and also discovered that many of them are not aware that you can ask for discounts on the rates they are offered.

I came across a fantastic contact that has offered me and my clients an opportunity to get better rates that are being offered.

So if you are interested in having a chat let me know.

Two Separate Banks and Two Separate Experiences for the Same Finance Approval

I have just sold two properties of similar value for two clients.

Both clients works in a Bank ( different banks) and both are borrowing the same amount and  have the same borrowing capacity but have very different experiences.

Both are pre approved and each have been working in the Bank for over 15 years. They were confident that they would get the loan in 3 days and they both insisted that I put one week finance on the Offer and Acceptance.

Being as cautious as I am, I put three weeks finance on the offers to be on the safe side.

The first client hassled her Bank daily and was very cross because of lack of communication with her own Bank and used the entire three weeks to get the finance approved.

The second client took one week to get his finance approved and when I asked him what he did he said well first of all I wanted to prove to you that I would get it approved in one week as I had mentioned my first client and her story. Secondly, he had all his paperwork ready to go and spent time with the Bank Broker to get it all sorted and make sure everything that was needed was easily accessible to make sure it all runs smoothly.

Getting finance approval can take some time, effort and patience so I find that weird how can a Bank be so slow and the other so proactive?

Tell us your experience with Banks! Have you had a really good experience? Or maybe one that was not so good and you’d like to share it to help others.

Preparing For Re-Financing before buying or selling a new home

Financing Basics

When you make the decision to sell your home, you’re entering an active real estate market. If you play your cards right, your home can sell fast. An overwhelming number of buyers borrow money to purchase real estate, so understanding how the lending process works is important.

Calculating your Budget

If you don’t already operate from a formal budget, part of the process in selling your home should be to create a financial statement that shows your income, your debts, and how your finances fit into the big picture. Finance professionals can help you with this, but the process isn’t hard if you follow a few basic steps. From the your big picture financial statement, prepare a budget that includes all of your monthly fixed expenses (current mortgage, car payments, utilities) and your best estimates for the variable ones, such as food, gasoline, and entertainment. As you document this information, make note of the balances on any outstanding loans and how much you are paying each month. If you have some small debts hanging out there, it’s a good idea to pay them off. A budget can help you see areas where you can reduce monthly spending in order to apply the savings to paying down your debts.

What Lenders Are Looking For

While a history of responsible credit is good when applying for a loan, too many small loans or debt obligations are not. A good rule to consider: the fewer debts you have on your financing application, the better. Many finance experts recommend that if you have several small loans, you consolidate them into one loan to achieve a better interest rate and an easier to manage payment system. This also may look more favourable on your loan application than several smaller debts and obligations. Once you have paid down any debts, and once you have consolidated your smaller loans, speak with your current lender as well as other banks to find out how much money you can qualify to borrow for a new home. Once a lender has told you how much you can borrow, you will have an important piece of information to use when looking for your next home or evaluating offers on the home you are selling. When determining your borrowing power, also keep in mind any costs that may be associated with closing out your current loan. If your bank has pre-payment penalties, you will need to factor those costs in to your costs at settlement.

Staying on Top of Your Mortgage

Variable rate mortgages often offer what the industry likes to call “honeymoon rates,” which are lower interest rates early in the loan life. These rates increase to larger interest rates down the road. If you decide to accept terms like this, be sure to keep an eye on your budget and make sure you’re prepared when the time comes for your rate to jump. Often these mortgages are structured to jump periodically, such as every 12 – 36 months. Some mortgages adjust upward with the market. Be sure you know what you’re getting into before you sign any mortgage documents.

It’s good to periodically test the market for better rates; especially if you have a good credit history or if you get additional debts paid off after securing your mortgage.

The Settlement Agent and their role in the sale of your property

What is Settlement?

Settlement is the final legal proceedings in a real estate transaction that passes legal title of the home from the seller to the buyer and the balance of the purchase price is paid.

Different settlements follow different processes so please use this as a guide only.

  1. The Settlement Agent will check to make sure that the Offer and Acceptance is completed correctly and that it matches the Certificate of Title.
  2. The Settlement Agent will diarise important dates such as  finance approval, Building Report, Subject Sale (If applicable) and Settlement Date.
  3. The Settlement Agent will confirm some of the following details with you, they have received the Offer & Acceptance and are acting on your behalf, as well as confirm any conditions on the contract and any dates.
  4. The Settlement Agent should then send you an Authority to Act form and a Preliminary Settlement Statement.
  5. The Settlement Agent will keep on top of any important dates and conditions as they arise with the first being Finance Approval (Unless a Cash Offer). If finance is not approved on time both your Real Estate Agent and Settlement Agent should be following up to make sure that finance will be received or organising an extension if needed but not before discussing it with you, the seller.
  6. Once finance has been received the contract becomes unconditional and you should then receive a call and something in writing and a definite settlement date can be set.
  7. Your Settlement Agent will then have you sign the transfer of land and all finance documentation.
  8. Once all docs are signed the Settlement Agent will then contact the finance provider and book in a Settlement Date and Time, complete the final statement and advise everyone of the booked settlement.
  9. On the day of settlement the settlement agent will check the certificate of title to make sure all is clear and then they will attend settlement and make sure correct monies are paid and received and then deposit any funds into your account (if applicable).
  10. You will then receive the call that Settlement was successful and advise in writing to you and your agent and then attend to any outstanding rates and file your settlement for a minimum of 7 years.

All that should happen, if your Sale and Settlement runs smoothly and most do but I can say that I have had some very hairy settlements that I would rather forget and some that have made me very happy.

All in all I have had some very great clients and still keep in touch with them once the settlement has gone through.

If you would like a referral to my settlement agent, please give me a call and I’ll give you the details personally!

Negotiating an Offer and Acceptance in today’s market and knowing all your options

With all the sales that are happening in the market at the moment it’s amazing to think about how the “Offer and Acceptance” a double sided piece of paper has been the cornerstone to thousands of property transactions and billions of dollars in property sales!

This simple document is comprised of several sections and has also been updated over the years to make changes in finance and contract conditions.

Each offer is basically a form to include your full name, full property and title details, the buyers names and conditions of purchase. These include the purchase price, settlement day, finance terms and special conditions that either you or the buyer wants to include in the transaction.

If there are any associated problems with your property, it is best to let us know at listing time. This is so that we can make buyers aware before they make an offer and they find out later only to potentially cancel the contract.

No matter how big a problem you may have, being upfront about the issue with a potential buyer is the best way. Everyone appreciates to be aware of any issue and most buyers are willing to accept the problem and make an offer anyway.

When an offer is on the table you have three options to negotiate. Knowing which strategy to use can make the difference between a sale or not:

Counter the offer – A “counter” is a response to the offer that indicates you take the offer seriously but that the price or terms are not completely acceptable. With most counters, you have the option to ask for more money or change other terms and conditions, such as; the settlement date, the amount of money desired as a deposit, or other factors. Countering the offer is the way to negotiate with a buyer.

Accept the offer – When you accept a buyer’s offer, you have agreed to sell your home under the terms that have been offered or negotiated towards. This signifies the beginning of the settlement of your home and the time for you to get serious about moving out and moving on. At this time, you inform your lender of your contract, inspections and other conditions are worked through, and you are on your way to completing the sale of your home. Through all of these steps, we guide you along the way.

Reject the offer – If the price is wrong, the terms don’t work, or other conditions. Not the best way to deal with any offer as it really just signifies your reluctance to negotiate. Many low offer buyers are just testing the waters. Let them… you never know how much a person want’s something. Rejecting an offer may not mean the end of discussions with this buyer. They still have the ability to come back and make a better offer again. Many offers made on auction properties are rejected as you don’t want to give out your reserve price.

If you have any questions or are currently in a position where you are negotiating a contract and just want another opinion, please feel free to contact me anytime.

Over Renting and thinking about buying your first home? You may be able to get help from the first home buyers grant!

Buying your first home can be a little daunting and there is no denying it is a big commitment but it doesn’t have to be so scary. It’s something you only do once, like buying your first car or getting married for the first time, it’ exciting and scary all at once but there is help out there.

The first home owner’s grant (FHOG) is a $7000 payment from the Australian Government. It’s a genuine grant that you don’t have to repay; nor do you pay interest on it.

To see if your eligible for the grant you can log on to the First Home Owner Government website and you can read the guide for application, forms and publications and also look at some frequently asked questions.

Eligible applicants may apply for the first home owner grant (FHOG) through the Office of State Revenue at the address below, or through a financial institution if that lender is a FHOG Approved Agent.

If you are applying for a loan from a financial institution to purchase an established property or to build a new home, check if your lender is a FHOG Approved Agent. If so, the agent will be able to receive and process your application. You may also be able to receive your grant funds earlier.

So if your ready to purchase your new home or your kids are and you have any questions please give me a call and I will try to answer them to the best of my ability or point you to the person that can.

Buying a home is exciting and I’d love to be apart of it!

Tips, facts and helpful hints about buying a home at Auction

Did you know that sale by auction is a three stage process that gives you three opportunities to buy?

If you have the funds available you may want to bid at the auction. Unfortunately not everyone is in this situation, some are waiting on finance to be approved, while others may need to sell their own property to before they can buy a new one. This shouldn’t stop you from buying a property that is for sale by auction.

You could attend the auction, wait and see if the property is passed in, and then make an offer that is subject to sale or finance. This is risky, the property may sell under the hammer, or the seller may negotiate with the highest bidder and you may not get a chance to make an offer.

Alternatively you can make an offer before the auction. Many sellers are willing to accept reasonable offers in advance. They have the certainty of knowing the property is sold and avoid the stress of auction day.

If you are genuinely interested in buying a property that is up for auction, but aren’t in a position to bid, speak to the Agent or please feel free to call me anytime and ask me any questions about auctions.

Here is the Auction Code of Conduct provided by REIWA that may help you understand the process a little better.