Archive for Selling

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?

 

How To Determine Your Sorrento Property’s Selling Appeal

The Department of Housing, jointly with the Department of Planning, in Australia, commissioned a rather large survey of property buyers. The objective was to identify the housing preferences of West Australians.

The study went deep into property buying patterns and queried 1000’s of real estate buyers and investors. The result of the study was a clear picture that every property seller was looking for (but could not find). It answered questions like: What type of housing do buyers prefer? What are they willing to sacrifice when their budget falls short? And more.

I read between the lines and came up with a list of factors that should help Sorrento property sellers determine their property’s selling appeal. Some information may seem obvious, but is important nevertheless.

Here we go: Factors That Will Help Determine A Sorrento Home’s Selling Capability (in order of importance)

1. Location: Couples and families preferred easy access to work because they perceived the time taken in commuting to be wasteful.

Families with children preferred buying a home that had easy access to their children’s school.

Singles and childless couples wanted easy access to nightlife so that they could save on taxi charges.

Older property buyers desired homes that were close to supermarkets and shopping areas. Many folks in this demographic wanted accessibility to public transport to reduce dependence on their own car. Older and working people who favoured driving their own car wanted ease of access (wide roads, easy accessibility to property) to the CBD.

2. Price: Though we are currently operating in a buyer’s market, the correction in home prices has likely been priced in.

The study was generated some time back, price has, is and will always be a major factor for investors (for obvious reasons) and a somewhat important factor for other buyers. Properties are now going at affordable rates and many experts reckon that now is the time to buy property especially in suburbs like Sorrento where home availability is gradually drying up.

A typical issue faced by most buyers is that they were unable to find a pleasant location within their budget. But that’s a universal problem and every buyer has to make a few trade-offs before striking the deal.

Though younger people preferred a house, they were okay in buying an apartment because it was within their budget.

Owner-occupied housing was preferred over rental housing – maybe because buyers felt that owners take better care of their properties (and they are right).

3. Neighbourhood: Factors such as lots of trees, a pleasant ambience, nice, friendly neighbours, area reputation, number of families living in the area, and quality of housing were evaluated by almost all home buyers. Newly developed areas were perceived to be of “low character” by most buyers.

It’s a no-brainer that there is a lot of noise in a neighbourhood full of singles. On the flipside, a neighbourhood full of families is most likely a calm and peaceful area.

4. Home Design and Features: House buyers also attached a lot of importance to indoor space and outdoor facilities.

Many buyers (and all investors) considered the property’s investment potential as very important.

Older properties in peaceful and populated areas were regarded as full of character and therefore as better investments.

Indoor design factors such as well placed rooms, fixtures, insulation, sun/breeze penetration, orientation, factors that help reduce the need for cooling/heating, rain water harvesting, and solar panels helped sellers bump up the price.

Pensioners, singles and those who live on fixed incomes generally avoided homes/apartments with high maintenance charges.

Migrants and younger people were willing to live in apartments — others preferred houses.

5. Detached Dwellings v/s Apartments: When this study was conducted, most buyers preferred detached dwellings over apartments. This holds true even today. Families with children wanted them to play outdoors and in close proximity.

Home buyers, and even investors, hated noisy areas and considered living in apartments as living in a “noisy zone.” However, people from other countries were okay with buying an apartment – they could live with the noise.

Many home buyers also did not prefer apartments because the strata fees were very high, though some buyers were okay with them because they got access to facilities like a swimming pool and a gym.

Renters, however, preferred apartments over detached dwellings. Renters also preferred a 2-bedroom apartment over a 1-bedroom unit because if the rents got too high, they could sublet one room to lessen the blow.

Older folks with grandchildren desired low maintenance charges and lots of space – which made for a difficult combination.

Older folks also did not prefer retirement living villages because their families would find these too far to pay a visit.

Reasons for buying a home (according to the same study)

There were many reasons why buyers were in the market to buy a home, and you may not have considered some of these:

  1. For investment purposes (most property experts reckon that Sorrento property prices will rise)
  2. They may have gotten a job in your location
  3. Because they were downsizing and want to move into a smaller home
  4. Because the home was situated in a better location (closer to public transport, school, work, nice neighbourhood, facilities, etc.)
  5. Personal circumstances (marriage, divorce)
  6. Having saved up enough, a renter may have wanted to become a buyer. Or maybe the buyer had reached that stage in life where he would be more comfortable if he had a roof over his head.
  7. If buying a home could have helped saving money.
  8. The new home was bigger and better – both outside and inside.

After reading this guide you will understand how home buyers think while evaluating your property in Sorrento or anywhere else.

Use this guide to figure out your home’s selling appeal and as a handy tool to understand buyer psychology – but do not forget to evaluate current market trends or talking to your real estate agent before setting your selling price.

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.

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.

 

How to prepare your property for a photoshoot

You have made the decision to sell your home or investment property and you have chosen your real estate agent and signed all the paperwork.

Well take a deep breath because the hard bit is over, you have made your decision!

But before you can have your first home open you need to make sure all the artwork such as the sign and brochures and online advertising is done and let’s be honest you want your house to look good.

The first step is to have the photography done of your home, but you don’t want to just have a photographer come out and just snap away. You need to make sure the house is ready, like a woman (or man if he takes pride in his appearance) going out she prepares herself and does her hair, makeup and chooses her clothes and shoes before she sees anyone.

Well it’s the same for your property before the photographer arrives, you want to make sure your property is looking it’s best so I’ve given you a checklist courtesy of Evolution Photo Media to help you get your property ready for it’s very own selfies.

General

  • Declutter and clean the house inside and out
  • Make sure that ALL light fixtures and lampshades are working both indoor and outdoor
  • Hide personal items like family photos, religious artefacts and political symbols
  • Hide festive and sports decorations like Christmas trees and posters
  • Touch up or repair any painting, rendering, weather boards or brickwork that nee attention
  • Remove all rugs and doormats
  • Hide ANY evidence of pets like kennels, pet bowels etc
  • Minimise number of people and pets in the property during the photoshoot

Interior

  • Hide tea towels, kitchen sponges and detergents, tissue boxes, remote controls, bills etc
  • Remove appliances and cutlery from kitchen bench
  • Clean all surfaces and mirrors including windows, baths and showers
  • Make sure all curtains and blinds are in working order
  • Get ideas from interior design magazines to position the furniture at their best places
  • Hide ALL shampoo bottles, soaps, tooth brushes, bath mats, bins etc in the bathroom and showers
  • Remove old towels and facecloths from bathroom rails
  • Hide or remove visible electrical cords and cables
  • Remove all calendars and posters from walls and surfaces
  • Beds must be made with clean linen or covers
  • Make sure things tucked under the beds and furniture are not visible
  • Adjust cushions and pillows
  • Uncover pool tables and set up with balls and cues
  • Clear fridge of all magnets, stickers and pictures

Exterior

  • Remove vehicles from carport, driveway and verge or keep in the garage with the door closed
  • Trim trees and bushes, mow lawns and clean landscape
  • Hide tools, brooms, toys and tidy up pots etc
  • Tidy up deck, BBA area and outdoor furniture
  • Uncover the pool and/or spa and hide kreepy krawly
  • Clear clothes lines of clothes, pegs and hanging baskets
  • Sweep pathways and blow away fallen leaves
  • Roll or remove all hoses
  • Hide wheelie bins

The idea of removing all your personal belongings and having everything just right is so that your potential buyers can not only see your property at it’s best but having minimum to no clutter and presenting it like a magazine gives them the vision to see the potential with their own belongings which makes it personal for them.

Doing all of these things helps the photographer to get the best possible photos, which gives your property the best chance of catching the attention of buyer and selling it.

If you have made the decision to sell and want me to help you, give me a call and I will bring my photographer.

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!

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!

New Beginnings for 2015

Here we are in our second week of January 2015 and a new start for me at work.

I feel reinvigorated after a long Christmas break and looking forward to the year ahead.

I have already renovated one of my investment for better a rental return, put up new fences in a couple more homes so we can keep tenants and pets secure, painting others and few other little bits to improve here and there.

Pretty busy with tradespeople but now I know a handful of more good and reasonable tradespeople to pass along their contacts. Tiler, plumbers, painters and handyman. Will need a TV antenna guy soon, if you know anyone?

Also, it’s not far now before I get my first grandchild which is very exciting.

Back to work and I need more homes to sell.

If you want a free, no obligation appraisal you can grab the phone and I will be there.

Love my work ! Love to meet people! Love home opens!

Ready to go;

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