Archive for real estate

Things to Tackle Before Moving Into a New House

Moving house is the intro for the next chapter in your life story, but it can be a mightily tricky affair if not planned and executed with due care and attention to detail. Before you pack your gear and cart it off to your new residence, pause for a second to make a checklist of all the pre-move tasks which you’ll need to tend to during the transition period. Or, better yet, check out our list of important things to bear in mind when relocating home to make the move go easier on both your budget and your nerves.

1. Get House and Gear Insurance in Place

Never launch a move before you’ve sorted out insurance for your property and personal assets for the duration of the transition. Notify your insurance provider about the change of residence, and cancel the existing policy for the old house as of the day after the relocation. Also, look into available moving insurance options and choose a policy that fits your bill best. That way, your property and belongings will stay safe from harm should a relocation nightmare come knocking on your doors.

2. Replace the Locks and Safety Devices

Before you load your belongings into the removal van, pay a short visit to your new home and replace existing locks and safety devices. If you’re renting, ask your landlord for permission for the security update first – but don’t abandon your valuables to the whim of fate, because you can never know who has the keys to your new home. Theft-minded previous tenants, realtors, and maintenance staff can all sneak in when you’re not at home, so it’s better to be safe than at Lady Luck’s mercy.

3. Tend to Administrative Aspect of the Move

Don’t forget to handle the administrative aspect of the home relocation well ahead of the move. Give a heads-up about the change of address to the bank, tax administration, superannuation funds, car insurance and registration provider, and all other relevant authorities before you hit the road. Also, go over your subscription services, loyalty cards, and club memberships, cancel the ones you no longer need, and notify the rest about the address update. You may also want to consult the Post Office about mail redirect options to keep your personal information secure from nosy mailbox parkers.

4. Clean Up Your Old and New Home Act

Although you may not be obliged to clean up your old home before the move, it’s only polite of you to leave it behind in a reasonably decent shape. As for your new home, you should drop by at least a few days prior to the relocation to make sure the property is clean and in good repair. You can have carpets and upholstered furniture steam-cleaned, and you can hire professionals to handle the rest of the move prep housework for you. If you don’t want to spend extra on pre-relocation cleanup, pick quality disinfectants and cleaning supplies and wipe all surfaces and storage units clean: this will minimize post-move unpacking and organizing hassle.

5. Check Plumbing, Appliances, and Drainage

You can’t call a place a new home-sweet-home until you’ve checked appliances and plumbing, wiring, and drainage bits for defects or age-related wear. Inspect the water heater, toilet tank, pipes, insulation, windows, flooring, basement, loft, and rooftop and see whether and where updates may be required within the foreseeable future. This will help you avoid complications with vital hardware immediately upon moving in, and it will also provide you with a good image of the total costs required for the post-relocation home improvement endeavors.

6. Get the Biggest Removal Bang for Your Buck

When moving your home lock, stock and barrel, don’t forget to go over the list of local removal companies and cross-compare fees to avoid losing a small fortune on transfer costs. During the packing, organize your belonging into three piles, i.e. Toss, Keep, and Donate, and see which items you don’t need to bring along. This will help you minimize waste of time when unpacking, and it will also allow you to get rid of clutter and damaged devices that aren’t worth repairing or transporting to the new residence.

7. Stay in Control of Your Home’s Sanitation

To stay on the safe side of the sanitation continuum, hire pest control experts to exterminate unwelcome subtenants, such as rodents, cockroaches, termites, and other creepy crawlies that can take over your home under the cloak of night. If not timely prevented, pest infestations can pose a huge problem in the post-move period – and you definitely shouldn’t take any risks with mass parties staged by potentially health hazardous critters in your new love nest. Before you buy your new home, you may want to have the place inspected for signs of pests and other property issues. A reliable inspection report on the real estate shape can help you bring down the price of the new house and make the pre- and post-move housework go easier on your wallet.

Don’t let move-related stress get the better of you: sort out all the bits and ends on time to keep both your finances and nerve power in check. Bon voyage!

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.

How To Value Your Sorrento Property For Sale, Insurance and Remortgage

Sorrento property owners should evaluate its market price and replacement cost periodically because knowing the current market rates and trends will help them in different circumstances – like, selling their home or insuring or remortgaging it.  Let’s discuss each case in detail:

VALUATION FOR SALE OF PROPERTY

Every Sorrento property owner who’s out to sell his home desires the best possible price. This is but natural – sellers expect high rates while buyers dream of bargain prices. The deal is actually struck somewhere in between or close to the edges depending how ready or desperate the buyer or seller is.

If you are out to sell your home, then you should first arrive at its true market value. Here’s how you do that:

1.       Start by figuring out where the market’s at. You need to know whether buyers outnumber sellers or whether things are in reverse. You will be surprised to learn that despite the slowdown and the oversupply of homes in Perth, there are suburbs where listed properties have almost dried up. You also must figure out the average number of days it will take before your house is sold.

For example, it takes about 74 and 88 days for a Sorrento house and unit to sell, respectively. The median sale price is $1 million for houses and $440k for units. House prices have appreciated by 5% year on year, while unit prices have jumped 12% for the same period. This data tells us that the number of properties in Sorrento is limited and that the market values will either hold or move up slowly depending on the demand.

You also should check auction clearances.  The recent clearances in Western Australia were just 30% implying low sales and many passed-in properties. This percentage strictly does not imply that the demand for Sorrento homes is on the decline – Western Australia contains many areas and therefore interpreting the aggregate percentage could send the wrong signals to sellers based in Sorrento.

Your best source of information is your real estate agent. And hey, I’m assuming you are working with a professional with many years of experience.

If you are still left unsure, hire a licensed valuer. He will charge you money, but you will get an unbiased opinion.

These moves will help you arrive at the true current market value of your house or unit. Remember that knowledge is power, once you understand the market, no fancy sales talk or rumor on earth will make you budge from your asking price.

2.       Research the sold section on Sorrento-focused real estate sites. That will give you an idea of the current prices.

3.       Analyze the current interest rates. RBA’s (Australia’s Central Bank) current official cash rate is pegged at 2%. Mortgage loans are typically available at 2%-2.5% higher than RBA’s cash rate. Therefore, current home finance rates can vary between 4%-5.5% depending on borrower’s credit score and the financing institution.

Low rates induce people to borrow and invest in homes. Right now, the rates are low and therefore this seems like a good time to buy considering the fact that the market is sluggish.

Researching these factors will help you arrive at the fair market valuation. Next, you should set the lowest price you are willing to go down to and make a steely resolve not to go below that number.

VALUATION FOR REMORTGAGE

Remortgaging involves paying off your existing mortgage by obtaining a mortgage from another lender. It makes sense in the following circumstances:

1.       When interest rates have dropped dramatically over a period of time. For example, let’s assume you had obtained a mortgage in 2011 @ 7.5%. The rate these days is about 4%. If you remortgage now, you can save 3.5% which could save you 1000s of dollars in real terms.

It could turn out to be a bonanza if you get a low introductory rate for the first few years.

2.       Remortgaging also makes sense if your home’s market price has appreciated considerably. You can borrow extra and use the excess funds to fulfill other pressing needs too. Follow the guide contained in the last section to know how to determine the fair and current market value of your home.

3.       You also can consider a remortgage when you figure that interest rates will shoot up or when your current mortgage is about to end or when your lender refuses to accept an overpayment.

Before you decide to remortgage, know that there are costs involved. Mortgage closing costs can include prepaid charges (like loan originating fee), insurance, sales tax, stamps, other fees (underwriting, legal, courier, credit fee, and more), early closure fees, etc. Work these all out and ensure that you are getting into a winning situation before opting for a remortgage.

HOME VALUATION FOR INSURANCE

Home insurance at replacement cost valuation is extremely important. You must value your home at replacement cost and then insure it because underinsurance can place your finances at risk if something unforeseen does happen. Consider the following factors:

1.       Home building costs do not remain static or fall – they keep rising.

2.       Homes surrounded by a lot of fencing, or homes that are built on slopes are more expensive to rebuild.

3.       Replacement costs can also significantly vary depending on the contents and the quality of furnishings in your home.

4.       Every time you add to your home, you must re-evaluate its insurance.

You don’t need to arrive at the home’s selling price – all you need to do is determine its replacement value. If anything happens, the sum you receive from the insurance company will help you restore or rebuild your home back to its original state.

Here’s Help

Talk to us if you would like an appraisal on your Sorrento home for sale, mortgage or insurance purposes. Not only can we help you arrive at the fair selling price and fill you in with market data, we also can put you in touch with experienced and professional valuers, and recommend insurance companies.

How To Get The Best Price For Your Sorrento Property

It’s quickly becoming a buyers’ market out there and every buyer figures he can get the best deal for any Sorrento property listed for sale or elsewhere in Perth. Sellers outnumber buyers these days and therefore it’s common to see steep – to be politically incorrect, cutthroat – negotiations at the table. The going has especially gotten tough for sellers because there are many hardnosed property investors in the market. As you are aware, a skilled investor always talks his way into a top property at bargain basement prices.

In the middle of all this disturbing news, comes a ray of hope for Sorrento real estate sellers. That’s us – You have us by your side and here’s a quick guide on how to extract the best price for your property.

Hire an Experienced Professional

You don’t want a real estate agent who talks like a glib salesman, you don’t want an agent who talks too much, you don’t want an agent who hides key information and you don’t want an agent who is desperate to make a sale.

You want an experienced professional – An agent who talks straight and presents the right facts and figures on a salesman’s platter. Therefore, choose your agent with care.

Research the Market

You may want top dollar for your property, but will the market fulfill your desire? That’s one tough question. It is common knowledge that both buyers and sellers want the best deal. The truth lies somewhere in between.

You should research the latest sale trends like number of properties listed, properties sold, highest-lowest prices, days on market, and more. Reading between the lines will help you arrive at a true current market price of your home. Try to sell your property around this price, depending on your goals.

Okay, you now know the lowest price you want and you will not go below it. But have you factored in selling costs? Remember that you will have to pay some or all of the following:

Agent’s commission plus marketing expenses/Auction costs

  1. Selling and marketing costs
  2. Mortgage discharge
  3. Rates and taxes
  4. Settlement agent and legal fees
  5. Lender’s fees (early exit, settlement fee, etc.)
  6. Moving expenses
  7. Repairs, approvals if required
  8. GST, if any
  9. Outstanding bills

Work these out in advance to know how much you will actually get in hand. Always plan ahead and know that failing to plan is planning to fail.

Be Clinical, Not Emotional

Remember that a hardened real estate investor will never make an emotional decision and there are many investors looking to strike a bargain deal these days.

Therefore, as a seller, you must never make an emotional decision. Know your lowest selling price and try and get a higher number. You can negotiate all you want, but do not get emotional and always stick to your predetermined number, because you arrived at it after considerable research and feedback on the market from your agent.

Do not make hasty decisions as well. Always buy time and chew over the offer before accepting it. Rely on your agent’s advice too. If they figure there are many buyers for your type of property, then that’s all the more reason why you should not jump at the first offer.

Did We Just Say Emotional?

  1. Heck, we’re asking you not to get emotional or make hasty decisions, but you can always do things that will make the buyer all emotional and hasty.
  2. Do this to make the buyer fall in love with your house (and rush into an emotional decision):
  3. Get your Sorrento home ready for sale by fixing up all imperfections. Fix chipped paint work, dripping taps, broken tiles on the roof, blocked/overflowing drains, guttering, and other stuff, as needed.
  4. Create a solid first impression by ensuring a well-kept, cute garden, fence and pathway.
  5. Replace doorknobs and taps, if required.
  6. Remove all clutter and make your home look neat, tidy and cozy. Organize furniture and stuff in all the rooms and make them look appealing.
  7. The buyer should smell freshly baked bread or coffee when they walks in. He must not whiff on sharp or strong food odors.
  8. Keep the bathrooms dry, put in place the shower curtain, and add a flower pot to make for an aesthetic look.
  9. Restore old furniture and fittings as needed.

Decided to Auction Your Sorrento Home?

If you’ve decided to auction your home because you just do not want to go through the negotiation process, then you must be prepared for it. The best way to prepare for a home auction is to understand how auctions work. Therefore, you should attend a few auctions to understand the pros and cons.

You also must consult your agent, keep all documents ready and read the fine print in the contract.

Set your lowest selling price as the reserve price and spend judiciously on marketing. However, know that investors take part in auctions and therefore your property may receive low bids. It may also get “passed in.” If this happens then the true market value of your home may run into very rough weather. You should think things through or take your agent’s advice before deciding to auction your home.

The Negotiating Table

An investor is usually a skilled negotiator who’s done his homework. He probably knows why you are selling your Sorrento house, whether you are testing the market, and how many offers you have received.

He will likely not throw a very low number at you because that will make you aggressive and angry. He sure will make a low offer though – but he will make an offer that seems fair. He also may offer you his reasons, which you will find reasonable.

However, our advice to you is not to jump at the offer. Like we said earlier, consider the offer, maybe shortlist it, and ask for time to make a decision.

Conclusion

Though the mining boom is over in Perth and there is an oversupply of real estate, the good news is that experts reckon that the market has almost bottomed out. It is a matter of time before it starts consolidating. Therefore, do not rush to sell your Sorrento property at rock bottom rates. Follow the tips above and hire an experienced real estate agent who knows Sorrento like the back of their hand and seek their guidance to get a great value for your home.

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!

Perth Residential Property Review — Spring 2015: Down But Not Out

Perth, Australia’s fourth largest city, is a boomtown bubbling with verve and hyperactivity. Apartments, hangouts, restaurants, shops, business establishments, educational institutes and places of entertainment combine with an efficient transportation system, sports facilities, green spaces, outstanding views and a multicultural ethos to create a magical sense of energy and vivacity.

Perth in Western Australia is truly a terrific destination for business owners, office workers, students, home makers and every other demographic you can think of.

In a place like this, any investment in Perth property cannot go wrong.

Right?

Well, actually no – that’s not factually and entirely correct. What should be a buzzing and throbbing property market is down and out these days. However, before we pronounce judgment, let’s check out the demographics, the reasons for the slump and some cold, hard statistics.

Demographics

According to Mosaic Demographic Data, a property of Experian Australia [1], Independent youth make up 42.3% of the population while matured & established independent people and older independent folks combine to account for 32.2% of the population. The statistics imply that the demand for rental and property investment/purchase should be on a roll.

So, do these numbers make for music to the collective ears of construction companies, investors, lessors, home buyers, and other property types?

Well, the answer is no – at least not at this moment.

Numbers that Depress [2]

The Real Estate Institute of Western Australia (REIWA) has this to report for the week ended 4 August, 2015 [2]:

  • A total of 13,575 properties (land, units, houses) were listed for sale.
  • Of these, 627 properties were sold – a mere 4.6%, indicating an extremely subdued market.
  • A total of 8,335 properties (units, houses) were listed for rent and only 1,387 ( 16.6%) got taken.
  • North of the River suburbs that topped the sales charts were Butler, East Perth, Dianella and Aveley.
  • Top selling south of the River suburbs were Rivervale, Canning Vale, Forrestfield and Gosnells.
  • The median house price fell to $530,000 in June 2015 (from $550,000 in March 2015) and the average selling days increased to 71 (from 68 in March 2015) – a double whammy.
  • Median house and unit rents dropped to $430 and $400, respectively, reflecting a drop of $20 in each category from March 2015 to June 2015.

What is really depressing is that the prices are hovering around their 2007 levels [3]. There was a boom in 2006, followed by the financial markets collapse in 2008.

In 2009, the government injected a stimulus, and the markets started limping, but that did not help.

Reasons Why The Perth Real Estate Market Is Down

Perth has always relied on the mining sector – just one single sector. It did great when the world was experiencing a boom, but when mining and resources sectors slowed after the 2008 financial collapse, the Perth property market became all unhinged.

Reduced mining activity killed new job creation and job migration dropped because the number of mining jobs plunged, considerably weakening the rental market.

Many home builders already had entered the market and they had to finish what they started despite the bust. This added to the oversupply of houses and units.

Consumer spending crashed after the 2008 bust. After property prices nosedived, investors moved their resources to liquid and other assets. Consumer confidence took a hit and all these factors combined to deliver a massive blow to the property market.

That said, bad times do not last forever.

Is This A Good Time To Buy Property in Perth?

Perth’s mining boom is done with, consumers are spending less these days, supply of property hugely outstrips demand, prices are extremely soft, etc. It’s truly a wretched time to sell your home or lease it out.

But I’m sure you already know that every dark cloud has a silver lining. And, what you have read above was the bad news. Here comes the good bit.

According to a report by BIS Sharpnel [4], Perth property prices are expected to stabilize by the financial year 2017-18. The same report goes on to say that there are almost no downside risks and that the Perth property market represents a classic case of confidence being below fundamentals.

Consider the following facts:

• A recent survey by Master Builders and Y Research states that out of the 93 suburbs within 5—15 kms of the Central Business District, 44 had no apartment supply and only 10 had more than 500 apartments. Plus, there were just 69 apartment buildings that were taller than four storeys. [5]

• Houses are selling faster at auctions than by traditional means [6]. According to REIWA, it takes just 37 days to sell a home at an auction compared to the 64 days it takes to sell a home the traditional way [7].

• The bullish news is that there are homes that are priced below replacement cost, which is the cost of building a new, similar home. This is a classical sign that the market is bottoming out.

Bankwest’s chief economist, Alan Langford, recently said that West Australians should avoid “scaring themselves into a recession.” [8]

Now let’s put two and two together – Home prices are very soft, few people are building new homes and experts reckon that there is limited downside risk to property prices and that the prices will stabilize by the financial year 2017-18.

This tells us that the prices are at realistic levels now and there are 12 months to go for the softened up prices to consolidate (after maybe softening a wee bit more). The downside risks too are limited.

If you ask me, this could be the right time to enter the Perth residential property market before prices start moving north.

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.

 

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!

A snap look at the Perth Real Estate Market

REIWA updates it’s market snap shot on a week by week basis based on the amount of properties listed and sold in and throughout Perth as well as the amount of rental properties available for rent.

There seems to be a quite a difference in the amount of listings and rental properties available now and this time last year.

What does this mean? Are more people selling and either moving on or upsizing or downsizing? Or are more people buying investment properties because of the low interest rates available at the moment?

Take a look at the breakdown of the data for the week ending Wednesday 25th March;

Sorrento Living REIWA Market Snapshot - 25 March

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: REIWA

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!

Open for Inspection this weekend

I am out and about this weekend with a busy home open schedule including the second weekend for my Auction property in Quinns Rocks.

It is exactly 7 weeks until Christmas and although time has run out for you to be in your new home for Christmas you could be by the time school goes back in the new year.

If you are thinking of selling or you just want to have a chat about where your property sits in todays market please contact me and I would be more than happy to give you a no obligation free market appraisal.

In the meantime, come and visit me this weekend and see me in my element!

Nothing currently scheduled for inspection, please check back later.