Kylie's Tip of the Day...Welcome, New Owner!

Don't forget to leave instruction manuals, appliance warranties, house plans,
the garbage collection schedule and even takeaway menus for your purchasers.

What to Look for in a Property

When you're thinking of buying, your requirements will vary depending on your personal circumstances and on the sort of property you wish to buy.

You may be looking for a family home, a "sea change" property or a holiday home. Once you have found the property of your dreams, you may want to pause for a while and reflect before making an offer or signing on the dotted line.

Consider the following checklist:

• Before you decide on anything do you have your loan approved?
• Will you enjoy living in the neighbourhood?
• Is the house sound? If you have any doubts at all, hire building and pest inspectors to check
• Is it in an area likely to hold resale value or benefit from capital growth?
• Are there any long-term costs or issues such as body corporate fees, jointly owned driveways?
• What type of Title is the property? Is it Torrens Title, Company Title, Strata Title, or some other? Ask your solicitor or conveyancer to advise on the Title
• Does the entire house, including alterations, have the required Council permits?
• Is it built for the climate? Is it insulated? Will it be warm in winter, cool in summer?
• Have you asked your local council about planning issues like the possibility of any big developments planned or construction of new roads nearby?
• If big changes are needed to make the property comfortable, then it's a good idea to know the costs before you make an offer
• Is the house and land suitable for your stage in life - are there too many stairs, is the garden too steep?

Then think about the detail:

• Does the house have enough bedrooms?
• Are you happy with the garden - or its potential?
• Will you have good access to the facilities you need such as schools, doctor, medical centres and shops?
• Are there enough bathrooms?
• Is there enough garage space? Is the garage accessible from inside the house?
• Will you have problems with traffic or noise?
• Is the kitchen serviceable?
• Is it safe for your family, eg children,the elderly or disabled?
• Is it suitable for pets?
• Are you happy with the building's security?
• Check under the house if possible - is it dry?
• Is the block well drained?

For "sea and tree change" properties or holiday properties:

Many of these questions will be the same as above but if you are buying in a rural or coastal area, you may wish to consider other practical issues, such as:

• Is there a good water supply?
• Is there any risk of flooding or erosion?
• How much maintenance work will you need to do - or pay someone else to do?
• Are you likely to be bothered by nearby farming or orchard work?
• Are there any industries in the area that could affect you?
• Will you still have easy access to your family, friends, work and recreation?
• What will be the long term impact of corrosive sea air?

http://www.ljhooker.com.au/myljhooker:tips?p=suggested&id=4f28b8d5e24a89af0f00002f

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http://www.ljhooker.com.au/myljhooker

Kylie's Tip of the Day...the Key to Easy Opens

Don't wait around on weekends....give your agent a set of keys.

Understanding Sales Agency Agreements

Agency Agreements are written to protect your rights...so here are the main things you should know:

An agency agreement exists between you and the agent who is helping you to sell your property. It states what they promise to provide for you, along with an estimated sale amount or price range.

This arrangement outlines the amount of fees or commission payable by you for the agent's services. A commission is usually only due when the sale of the property is completed.

The extent of the agent's authority to act in your behalf - such as to exchange or make changes on a sale contract - is also stipulated within this document.

You have the right to negotiate with the agent about the terms and conditions of the agreement and to ask for any legally-permitted changes to be made.

The agency agreement usually involves a fixed term - a specified amount of time during which it cannot be ceased unless accepted by both parties. An open-ended agreement with no fixed term must indicate an alternative method for being brought to an end.

If you are unsure about how to end an agreement you should seek legal advice.

In the event that you are unhappy with any of the agent's services, it is essential to officially bring the agreement to a close before signing up with a new organisation - otherwise both might be able to charge you a commission when the property is sold.


http://www.ljhooker.com.au/sell/selling-faqs/understanding-agency-agreements?sid=rsn

Kylie's Tip of the Day...Photographing Your Home



Hire a professional...it can add thousands, even tens-of-thousands to your price.

What's a Building Inspection?

Before you buy a house, it’s important to have your new home checked out professionally so there are no nasty surprises. Organising a building inspection is essential; it could potentially save you from expensive mistakes.

A building inspection is a report on the current condition of the property.

It’s good to know upfront what sort of maintenance and repairs you may be up for in the near future and another good idea is to have a pest inspection completed. This is important whether your home is a vintage piece or just a few years old.

Here’s some of what inspectors do:

Inside
Look for cracks in the wall, they may be hidden by wallpaper
Check walls and floors for dampness
Confirm ceilings are clear of mould or leak stains
Check windows/blinds are in working order
Check plumbing systems – look for leaks, check drainage is working including outside drains
Test the electrical systems including all power points, air conditioning, heating, ceiling and extraction fans
Find any rusting framework
Check doors are functional
Check the level of traffic noise
Check phone lines and TV aerial points

Outside
Check condition of gates and fences to ensure bases are sound
Check the garden for poisonous plants
Check for large trees close to the house as their roots could cause structural damage
Look for any rotting timber on the outside
Inspect external structures like pergolas and granny flats (confirm extensions are legal and council approved)
Keep an eye out for fire hazards such as external cables or power points
Ensure external walls are straight
Test water pressure of external taps
Check the roofs condition including frames and tiles
Look for signs of pests

Once a report has been complied on the condition of the property, you can then make a knowledgeable decision based on the findings. Often items can be fixed and you could include in the contract that your purchase be subject to a favourable inspection.

There are a range options when looking for an inspector, look for an experienced and reputable supplier. This could be a qualified builder or specialised architect, some suppliers offer 12 month guarantees on their work which could save you money if anything goes wrong in that time.

Also have a professional pest inspector give your home the OK.

Remember, it’s good to identify the problems early so you know if you’ve truly found your dream home!

http://mystart.homestart.com.au/articles/articles/What-happens-during-a-building-inspection

What is the Agent's Role at an Open House?

An agent's job at an open house inspection is to listen closely and observe attendees to gauge buyer interest and motivation.

By engaging in conversation, the agent can learn more about a potential buyer's specific circumstances and requirements. This helps the agent to discuss the aspects of the property relevant to the buyer.

At the same time, buyers may need to view the property without pressure and talk about it with someone they have brought along. A good agent will be aware of this and only engage in conversation at appropriate moments.

http://www.ljhooker.com.au/sell/selling-faqs?sid=rsl

Property Presentation Myths Debunked

To maximise your return when selling your home, it is important to know what to do your house, how much to spend and what does make the difference to buyers.

Property presentation (presenting a property for sale) is a relatively new phenomenon in Australia, meaning some vendors can find it to be a hit-and-miss exercise.

Cleaning, tidying and de-cluttering are all common sense, but there are often more profitable decisions to be made about landscaping, painting, repairs and hiring furniture that can be daunting without the right information and advice.

Because of this lack of information, vendors often feel safer choosing the option with the least risk, following real estate myths that well-intentioned people offer about property presentation.

Myth 1: Just do the barest minimum to get your property ready for sale.

 

I appreciate that many vendors want to minimise the cost of readying their property for sale, but I’d argue a smarter strategy is to focus on items that will give the best return.

To illustrate, imagine a tired rental property that’s in need of some TLC – overgrown front garden, mildly damaged walls and stained carpets.

If the vendor were to spend $400 tidying the garden and giving the house a good clean it might add $5000 (yes, it really does make that much difference) meaning they’d make a profit of $4500 ($5000 minus $500) on their efforts.

However, if that same vendor were to spend $9000 on painting, carpeting, cleaning and furniture hire in all the right colours and styles they could easily add $30,000. That is a profit of $21,000 ($30,000 minus $9000).

Comparing a return of $4500 with $21,000 might seem far-fetched but I see it happen week after week. As long as you make the right enhancements, you can add to your sale price significantly.

Myth 2: Don't bother putting too much effort into getting your property ready for sale, people will change it once they buy it anyway.

If you do your homework you can give the buyers almost exactly what they want. That is, the way you present your property should be based on what people from specific buyer groups want.

First home buyers, families, empty nesters and single adults all have identifiable property needs. If you make sure your property satisfies the needs of at least one of these groups you are tailoring your ‘product’ to suit the market. That means buyers will have to do very little when they first move in – something worth several extra bids at auction.

Property presentation – it’s all in the detail

After living in your home for many years, you may have gotten used to that cracked window, or the wonky floorboard that squeaks near the front door.

When it comes to opening your house for an inspection, however, the little things will be noticed by potential buyers, and they will likely reduce their offering price accordingly.

Invite your agent or a good friend around to cast a critical eye over your home. Follow this list and your home will be ready to pass muster.

Cleanliness is king

Making your home presentable for sale is more than just decluttering the living areas and giving the benches a good wipe-down. A proper spring clean is required to attract buyers – after all, they want to picture themselves living in the house, and who wants to live in a dirty home?

Crumbs in the cutlery drawer, water stains in the cupboard under the sink and gunk down the side of the fridge are often overlooked in the kitchen.

Make sure you remember to get the cobwebs in the cornices and the dead flies on the windowsills throughout the house.

Take a good scrubbing brush and either a chemical spray or some vinegar and bicarb soda to the grout in your bathroom tiles.

All surfaces should be sparkling, but remember to clean far enough in advance that your potential buyers don’t walk into an overpowering smell of chlorine bleach on inspection day.

Depersonalise your space

While your range of funny fridge magnets, and pin board for school reports and gym timetables might be essential to your daily life, they prevent buyers from visualising themselves living in your house.

Depersonalising and neutralising the space is an important factor in getting buyers to fall in love with the house, see themselves living there, and bidding accordingly.

Rooms should have only one or two pieces of inoffensive art. Canvas prints from nature are good, life-size pregnant nudes are not. Clutter on benches and in bookshelves needs to go, but don’t just toss it in a cupboard.

An open for inspection implies that your whole house is up for review, and a cupboard full of junk makes it appear as though there’s a shortage of organised storage space.

Get your green thumb into gear

Many parts of Australia may be subject to water restrictions, but that’s no excuse for dying plants, bare patches on the lawn, and dusty doormats.

If you cannot use the garden hose, then make sure everything gets thoroughly swept – including outside window frames, the top of the barbecue and the letterbox.

Mow, edge and rake lawns to create a polished finish, prune trees and shrubs, and look at replacing plants that are lacklustre. A little bit of hard work will see your home sparkle, and be more attractive to potential buyers.


* Article by Richard Armstrong, director of The Makeover Group and author of Sell your home for more – an expert’s guide to property presentation.

by AliceM | 03/03/2010

http://experts.realestate.com.au/selling/selling-news-property-presentation-myths-debunked

Kylie's Tip of the Day...Stamp Duty Calculator

http://www.rs.realestate.com.au/cgi-bin/rsearch?a=calc&jar=StampDuty

First Home Owner's Grant

General Information The First Home Owner Grant (FHOG) scheme was introduced on 1 July 2000 to offset the effect of the GST on home ownership. It is a national scheme funded by the states and territories and administered under their own legislation. Under the scheme, a one-off grant of up to $7000 is payable to first home owners that satisfy all the eligibility criteria.   More Information To see if you are eligible or to obtain more information about the First Home Owner Grant, please click on the link for your state or territory below. Australian Capital Territory New South Wales Northern Territory Queensland South Australia Tasmania Victoria Western Australia http://www.firsthome.gov.au/

Kylie's Tip of the Day...Protect Your Carpet

Use bath mats at entrances during rained-out open inspections.

What is Conveyancing and Why Do I Need it?

Conveyancing is a term that refers to the transfer of ownership of a property - most buyers enlist the services of either a conveyancer or solicitor to handle this process on their behalf.

While you are able to act on your own when making a property purchase, the process of documentation and settling can be complicated - and may seem daunting. Bringing in support from an expert who is familiar with legal documents and legislation can make the process easier.
 

What does a conveyancer do?

Once you have appointed your conveyancer, they will be responsible for a number of tasks as they help you through the settlement process.

These jobs include acting as a liaison between you and your lender's solicitor, checking your contract of sale, performing title searches and acting as your legal representative for the transaction.

Your conveyancer will also check on a number of important things for you, including whether there are any outstanding rates on the property - such as council taxes or water payments. In some cases, your conveyancer will also check over your loan documents for you.
 

How much does a conveyancer cost?

The cost of hiring a conveyancer can differ from state to state - and even from transaction to transaction, depending on the amount of time and work involved.
It is important to enquire about fees before you agree to appoint anyone.

If you need help with conveyancing, LJ Hooker can help in certain states. We have an independent practice trading as LJ Hooker Conveyancing in Victoria and New South Wales and LJ Hooker Settlements in Western Australia.
 

How do I choose a conveyancer?

There are a number of points to consider when choosing a conveyancer.

These include assessing whether they are available to provide the level of service you are looking for and if you can clearly and effectively communicate with them.

You may be looking for a conveyancer who can explain the process to you - particularly if you are a first-time buyer - so it is important to ensure they have time to take you through every step of the process.

You may also wish to consider location - you may want your conveyancer to be locally-based or easily accessible.


http://www.ljhooker.com.au/buy/buying-faqs/conveyancing-faqs?sid=rsn

Your A-Z Selling Guide

When spring is here and the football finals are over, people start thinking about real estate again. At this time of year, many prospective purchasers have more time on their hands, days are getting longer and with daylight saving here (in most states), there are more hours of sunshine in which to inspect property.

On the other hand, many potential sellers have been waiting for spring as they know that their properties will look their best at this time of year and many people come out of “winter hibernation mode” and start driving around and looking at property again.

Here is an A-Z for selling in spring:

A is for attention to detail. Spring is usually when most properties are on the market and when most buyers are active. You want your property to stand out from other properties listed to catch the eye of the many potential purchasers coming through your property. It’s the little things that turn your house into a home that matter.

B is for bathroom. This room is important as it is one of the most expensive to renovate and/or repair. The bathroom should be thoroughly clean. This includes removing mould and mildew from tiles and ceilings, dust and fluff from exhaust fans and spider webs from nooks and crannies. There should be just a slight hint of bleach in the bathroom so as to emphasize the cleanliness of the room.

C is for carpet. Whether you think it needs it or not, have your carpet professionally steam or dry cleaned. Dry cleaning is better for the carpet but steam cleaning gets out more dirt and grime. Have this done well before your first open inspection as you do not want people walking on damp carpet. Don’t forget to have the carpet deodarised at the same time to mask any unpleasant smells.

D is for dining room. We used to encourage people to have the dining room set with your best cutlery and crockery but this is now “old hat”. A large fresh bunch of flowers in a nice vase is all you need on the dining table. This is also a good place for the real estate sales person to place their brochures.

E is for early. Have your open inspection early in the day - late morning/early afternoon. Imagine how you feel near the end of a day of looking at many homes for sale. By mid afternoon, people have almost had enough of looking at homes and are not in the best frame of mind. It is often the first home that people see that leaves the greatest impression. Unless your home looks better in the afternoon sunlight, consider having your open inspection early in the day rather than later.

F is for floorboards. Newly polished floorboards, glimmering in the sunlight, enhance the look of the whole house. If you have floorboards in the house and haven’t had them polished recently, do it.

G is for garden. This is one of the most important components to selling your property. Concentrate on the front garden to enhance the street appeal of the property. This is the first thing people will see when they pull up. Plant mature plants/flowers, mow the lawn and trim trees, bushes and lawn edges.

H is for handyman. Now is the time to have all those repairs and maintenance items attended to. From the squeaky gate to the loose tiles and dripping taps, get them fixed. If people notice small repairs not attended to, they start wondering about larger items that may need work.

I is for investors. Don’t forget that many investors are out and about looking for property at this time of year. Investors are particularly interested in units as they are cheaper and the difference between rental income and rental expenses is generally not as big with units and flats as it is with investing in a house. If you are selling an investment property with a tenant living in it, encourage the tenant to have the property looking absolutely clean and tidy. In the past we have offered discounts in the rent if the property is looking immaculate. This has worked particularly well.

J is for justify. Justify all your expenses in preparing your property for sale. There is not much point in spending $60,000 in repairs, maintenance and improvements if you are only going to increase the sale price by $10,000. Don’t spend money on the property just so that it looks nice. Any money spent in preparing your home for sale should be offset by increasing your sale price by at least the amount you have spent and/or lessening days on market.

K is for kitchen. Along with the bathroom, this is one of the most important rooms in the house. This is the ‘heart and soul’ of the home. A kitchen should be clean and tidy. Clean the oven and scrub the ceilings and the walls to remove the built-up grease and grime. Don’t cook cabbage or fish on the days leading up to the open inspection as these unpleasant smells can linger for a long time. Place fresh herbs around the kitchen as the aroma will give your kitchen that ‘home cooking’ feel.

L is for laundry. Don’t leave the dirty washing basket overflowing and do not have your washing drying on the line during the open inspections. A smell of fabric softener in the laundry is also a good idea. It gives the perception that it is clean.

M is for marketing. There is no point in having a great property to sell if you are not advertising and marketing correctly. Historically, signs in the front yard and advertising in the newspaper were the only option available to sellers of real estate. I have found that most of my property investment students now use the internet to look for property. Ensure your property is listed on a reputable website, such as realestate.com.au.

N is for noise. It is important that potential buyers are not put off by excess noise at the open inspection. If you live on a busy road, near a freeway, train line or the airport, your open inspections should be at times when there is the least amount of traffic noise, such as a Sunday morning.

O is open inspection. Have your property looking its best at the time your property is open for inspection. It is hard if you or a tenant is living in the property but you need to make sure the simple things are taken care of, such as no dirty dishes in the sink, no towels or clothes on the floor and no dog poo on the lawn.

P is for painting. I have found that when preparing a property for sale, you get the best ‘bang for your buck’ by painting. A few hundred or possibly a couple of thousand dollars can add tremendous value to your property. You don’t have to paint the whole house but look for areas that are looking a little tired and dated. Use light and neutral colours, especially in small rooms/spaces.

Q is for questions. Have answers prepared to frequently asked questions. These questions range from “How big is the block?”, “Which high school is the property zoned for?” to “Are you flexible with the length of the settlement period?” and “Can we have access to the property before settlement?”

R is for rent. If you are selling an investment property, ensure that you are charging market rent. An astute investor who is interested in your property will place a lot of emphasis on the rent as a relatively high (and sustainable) rent will be very attractive as it makes it easier for them to pay the mortgage.

S is for shops and schools. Two big selling points are proximity to shops and schools. You may not have used the local school/child care centre but a potential purchaser may wish to. Find the location of the schools in the area, especially which high school zone your property is in. Do you know which major supermarkets are in your suburb?

T is for transport. In addition to proximity to schools and shops, many people wish to be near public transport. They may not use it often but it is good to know that it is nearby. Find out how far it is the nearest train station and what are the most accessible bus/tram/ferry routes to the CBD.

U is for utilities. If you are selling your own home or an investment property, ensure that you know who the electricity and gas retailers are so that you/tenant can have a final reading of the meter, account names changed or possibly the supply disconnected. A final reading of the water meter may also be important, especially if you are charging the tenant for water use.

V is for value. Before you put your property on the market, you need to have an idea of the value of your property. The best way to do this is to find out what other comparable properties have sold for. The most common mistake vendors make is that they over value their property, ask an unrealistic high selling price and then wonder why it is taking so long to sell.

W is for wait. You will find that you are very busy in the lead up to putting your property on the market. This includes finding trades people/handymen, doing minor repairs, updating, finding a conveyancer/solicitor and picking the right agent. Once all this activity is over, all you can do is wait. Be patient, your property won’t sell overnight but if it is priced and presented correctly, you should have an offer within two to three weeks. If you haven’t had an offer in the first four to five weeks and you are keen to sell, seriously consider dropping your price.

X is for x-factor. Identify one element of your house that stands out and make sure you and the agent highlight this, in the marketing and at open for inspections.

Y is for yahoo, the sound you make once settlement has occurred and the money is in the bank.

Z is for zest. Selling your house can be tiring so make sure you keep up the momentum and maintain your home’s presentation. The first week may be ok, but in week three and four your enthusiasm may start to wane. Break the weeks up into blocks and once your have completed it, give yourself a treat.

by ProfPeterK | 03/03/2010

http://experts.realestate.com.au/selling/checklists-a-z-selling-guide-your-must-have-companion

Kylie's Tip of the Day...Carpet Cleaning

Clean fresh carpets are great but you may need to
clean them again after you sell if the weather is wet.

Three Selling Sins

Here are three sins of home sales that can negatively impact on the ease of the sale and the size of the cheque you end up receiving.

Selling your home can be a demanding process, and too often sellers focus on one area of improvement, rather than a broad-based approach. The informed seller needs to talk to the experts, and take charge of the strategy – from marketing tactics, to home improvements, presentation and sale price.

 

The Price isn’t Right

Putting a dollar value on your house can be a difficult prospect – particularly when your home contains so many happy memories. Sellers can also fall into the trap of expecting what the price 'should' be – that is, providing a significant return on the original purchase price. While property prices in Australia and New Zealand have remained relatively stable in recent times compared to markets overseas, you need to keep a realistic eye on what the market is prepared to offer.

The market is aggressively competitive and pricing your home appropriately will result in a quick and satisfactory sale. If you choose to hold out for more, it is worth spending a bit of time calculating the increased costs associated with this – such as advertising, agent fees, cost of your mortgage and the inconvenience of cleaning up every Saturday morning for inspection.

 

Making your home snap happy

Utilising good photography to promote your home is a key part of the sales process, with time-poor buyers often researching online before putting in the legwork to attend an open for inspection.
Make sure the photographs taken of your home are top-notch – nothing destroys the romantic fairytale like photos with cutting boards and dishcloths on the kitchen bench, reflections in mirrors and flash glare from the windows.

Spend that bit extra to attract buyers, and you will drive up competition for your sale.

 

Presentation matters

Unless your buyer is a builder or a seasoned investor, they are unlikely to be able to walk into a home with cracked ceilings and damaged floorboards, and have any idea how much repairs would cost. Make it easy for your buyers – present your house as “ready to move in”, to take away the guesswork and reduce the likelihood of buyers walking away.

Investing in repairs, maintenance and even inspection reports may cost you money in the short-term, but it means you won’t make it to the eleventh hour of negotiations and then lose a buyer you’ve spent valuable time courting.

* Article by Richard Armstrong, Director The Makeover Group and author of Sell your home for more – an expert’s guide to property presentation.

by AliceM | 03/03/2010

 

http://experts.realestate.com.au/selling/selling-news-three-property-sins-that-will-stop-your-home-from-selling

Kylie's Tip of the Day...Wet Weather Opens

Consider providing umbrellas for buyers to explore your garden.

Improvements on a Budget

There are some cheap and easy improvements you can make to your house to increase the chances of fetching the greatest return on your property.

When you sell your house, you’re normally in profit maximisation mode – ie, lowest cost, maximum profit. However, to obtain that sale for the greatest return, you’ll possibly need to spend something to improve your property’s appearance.

What should you be aiming for with your improvements? One of the greatest sins at sale time is to have over-capitalised on your property. So, what improvement options do you have on a budget? Remember, the cost will be a function of materials, time and labour and local market conditions.

Potential improvement ideas you could think about include:

• Parking – it’s always at the back of purchaser’s minds. Does your property have a garage, carport – or at least cleared space for, ideally, more than one vehicle? If there is no parking space, consider possibly trying to create some.
  
• Does your property have indoor/outdoor flow? The addition of a sliding door to a pleasant outside area is a relatively cheap method of added value improvement.
  
• Look at your kitchen and bathroom areas – upgrading them may not be as expensive as you believe.
  
• Is your property fenced? Or, at least screened from neighbours? Privacy is very important for most people.
  
• Consider updating the light fittings. It’s a relatively cheap means of automatic property modernisation – and may attract a different calibre of buyer (or tenant).
  
• Remove shrubs or cut back trees to maximise natural sunlight. Properties with plenty of natural sunlight are more appealing in winter months when it can be more difficult to attract purchasers.
  
• If the property has a carport or garage, you could investigate converting this into a sleepout.
  
• If your bathroom or kitchen doesn’t have ventilation, add it. Trapped cooking fumes and steam can cause permanent damage.
  
• If you need to purchase any materials, investigate buying them direct from the supplier – this could save you 10 – 15 per cent off the price.
  
• Re-stain your decks. This instantly refreshes the area and tidies the overall appearance of the property. If there are no decks, check out how expensive it would be to add and determine if the rent increase justifies the expenditure.
  
• Resurface any benchtops if they look dated or dirty. Changing cabinetry and benchtops can often be relatively inexpensive. Look at online auctions for whole kitchens that are being sold off.
  
• Change the floor coverings. Phone around carpet and flooring retailers to investigate the availability of off-cuts and end-of-line inventory. Many of the more expensive coverings have cheaper look-alikes (often it is hard to tell the difference). Again, check what might be available on online auction sites.
  
• Replace the shower or update the tapware. Any sign of mould or dirty showers can have prospective purchasers running from the property.
  
• Think carefully before taking on all your renovations yourself. Often it is cheaper, less stressful and a lot cheaper to call in the experts. A D-I-Y attitude can sometimes be more of a hindrance.
  
• If kitchen storage is lacking, add more. Buy a ready-made pantry unit and put units in bedrooms with no wardrobes.
  
• Tile kitchen, laundry, bathroom and toilet areas to reduce water damage and improve value.
  
• Add a heated towel rail to the bathroom.

*Article by Geoffrey Lush

by AliceM | 03/03/2010

http://experts.realestate.com.au/selling/selling-news-improvements-on-a-budget

Finance for First Home Buyers

What You Can Actually Afford? Don’t Guess!

Before you begin house hunting the most important thing to do is to work out exactly how much you can afford to spend on your new home. Many first home buyers do this by simply calculating if they can afford monthly mortgage repayments. However mortgage repayments, whilst significant, are not the only thing that needs to be considered when determining how much you can afford to spend on your new home. Buying a home can result in many unforeseen costs. It is important to know all the expenses involved upfront to avoid any unwanted surprises along the way.

How Much Can You Borrow?

The amount you can borrow will depend on a number of factors:

1) Your Income

This is the most important factor which will determine the exact amount you can borrow. Your income needs to be able to cover repayments on your loan as well as your basic living costs. If you are applying for the loan jointly with another person your repayment capacity may be greater, which can mean greater borrowing power.

2) Employment Status

One of the main things that lenders will look at is if you are employed. The lender will look at where you are employed and how long you have been employed by that corporation.

3) Financial Commitments

Lenders will look at all other financial commitments you still having owing. This can include car repayments, personal loans, credit card debts and HECS debts.

4) Your Assets & Investments

Your savings and other investments will also impact your borrowing capacity.

5) Your Deposit

First home buyers should save around 10 – 20% of the property value as a deposit. The greater the deposit, the less you will have to borrow and the lower your repayments will be. However, if you borrow in excess of 80% you will be required to pay lenders mortgage insurance (LMI).

6) Your Credit Record

The lender will check to see that you have no red flags against your name for defaulting on previous loans, credit cards or other lines of credit by looking at your credit record. It is worthwhile to check your credit record before you apply for a home loan so you are able to amend information in your credit history if you believe it to be inaccurate.

To access a copy of your credit history, go to www.mycreditfile.com.au.

http://advice.realestateview.com.au/buying-investing/ultimate-first-home-buyers-guide/finance/

What Makes a Good Investment Property?

A well chosen property is likely to deliver greater return in the future; not only in the form of capital growth but also in the form of rental returns. In order to maximise investment return, here are some key considerations to make:

 

The Right Stage of the Property Cycle

The property market moves in cycles. Property values may rise due to strong market growth, remain steady or even decline during certain phases of the cycle. Thus, as an investor it is important to know where the market is within the cycle to ensure you secure your property at the right price.

The Right Location

Location is integral to acquiring a good investment property. If the location is chosen correctly, the chance of gaining higher returns from your investment is far greater than if the location is not desirable and suitable for those looking to live close to amenities. Factors to consider are:

• Close proximity to certain amenities increases the desirability and value of a location and property; these include:
• Schools
• Public transportation
• Public facilities (post office, libraries, parks, medical centres, etc.)
• Shops and markets
• Lifestyle activities (restaurants, café strips, beach, etc.)

Therefore, it is important to consider proximity to these when buying your investment property.

• When selecting an area to purchase a property in, try to avoid those that are likely to be dependent on a sole industry i.e. manufacturing. Although it can be beneficial when the industry is doing well, if it falls, your property’s value may decline as a result.
• Some of the best places to buy are those experiencing population growth. As population grows, infrastructure improves and the desirability of an area increases.
• Living within close proximity to a major city (i.e. 10 kilometres) is always highly sought after. Whilst many of these suburbs attract higher prices, look for emerging suburbs which may have strong growth potential.

 

The Right Property

When searching for an investment property, you should aim to secure one which will be in continuous demand by tenants, as well as future home buyers. One factor you should consider is appropriateness of the property for the average age of residents in the area.
It is therefore important to do some research to discover the demographics of your area of choice and determine what is important to this demographic. For example, if you are buying in an area with an older community, do not purchase a property with a staircase or an inconvenient layout.

 

The Right Return

Many property investors make the crucial mistake of choosing a property based on emotion, rather than finances and logic. A bad purchase may result in capital growth below the market average or rental income which does not come close to covering the monthly costs to maintain the property. It is therefore vital to do your research to establish your strategy before making a purchase.

 

Researching the Market

Over recent years a number of web sites have been established to enable consumers to access current sales results and historical sales data. This information will assist you to gain a good grasp of current market trends and historical growth patterns. Some of them include;

• PropertyDATA .com.au
  PropertyDATA.com.au contains data collected by the real estate institutes. The site will allow you to access the same comprehensive, accurate and up to date property sales information relied upon by estate agents, valuers and Australia’s major banks. The site provides free as well as paid property reports, median prices, capital growth figures and suburb profile information.
• Residex
  Residex provides consumers with the ability to purchase information on all areas of the real estate market, such as analysis of market movements, price estimation, historical growth data and more.
• Real Estate Institutes
  There are real estate institutes across each state of Australia which act as the industry body in that specific state. The institutes amongst other things publish market commentary as well as median prices and other market data.

http://advice.realestateview.com.au/buying-investing/beginner-guide-to-investing/what-makes-a-good-investment-property/

Tips for Negotiating

Purchasing a property may well be the biggest financial commitment you will make in your entire life. It is therefore vital for buyers to strengthen their position in the buying process via the important skill of negotiation. Strong negotiating skills may help in securing a property at a lower price, which will not only save you money upfront but future interest payments as well.

To successfully negotiate the purchase of your new property, consider the following tips:

1. Set your limit

Pre-plan your finances and budget to determine your upper limit. Take care not to go above what you can afford and be prepared to walk away if negotiations go beyond your personal limit.

2. Research the market

Research and inspect as many houses as you can before you make an offer or begin negotiating. This will allow you to get a feel for the quality of houses available on the market and the average sales prices. This knowledge will put you a level playing field with the other party you are negotiating with, which will enable you to feel more confident during the negotiating process.

3. Put your game face on

Do not give anything away and ensure you remain calm and neutral. Make sure the vendor and / or agent does not know your personal limit, borrowing capacity or how much you like the property.

4. Find out about the property / vendor’s reason for selling

Gather as much information about the vendor as possible. Discovering certain facts will make you more knowledgeable about the property and the vendor’s circumstances, which may provide an opportunity to negotiate a lower price. Some questions you should consider asking in order to gather information are:

• How long has the property been on the market? In almost all cases, there is more activity around a house which has just been listed in comparison to one which has been on the market for a while.
• What price is the vendor looking for?
• Why are they selling? What are their circumstances and how soon do they need to move out?
• Who set the price (vendor / agent)? This may indicate the difference between the asking price and the genuine market price.
• Is the price negotiable? Establish if they are flexible.
• Are there any problems with the property? Knowing this will avoid any future problems and / or financial costs as well as aid you during the negotiation process.

5. Start low
When making your first offer, always start by offering less than the asking price and working your way up if needed. It is very common for houses to be sold for a value which is below the asking price, hence the importance of pacing yourself. This may result in securing a property which is below your personal limit and the asking price.

6. Create a win / win situation
A good negotiator always leaves the other party believing they have won the negotiation. This can be achieved by providing the vendor with more favourable settlement terms. If there are multiple items to negotiate over, there is always room for both parties to walk away believing they have won, thus looking at how these negotiable items can be used to your advantage.

7. Offer compensation
In order to walk away with a lower price, you may need to offer something to the vendor in return. One of the best methods to become a favourable prospective buyer is to offer a quick settlement. In order for this to be most effective, ensure all your finances are ready and in place before you start the negotiations.

http://advice.realestateview.com.au/buying-investing/tips-for-negotiating-the-purchase-of-a-property/

Kylie's Tip of the Day...Cheap Marketing

At around $1.50 per day for 24/7 marketing, why wouldn't you want a sign?

Beauty Sells

 

Some simple ideas to make your property more attractive to buyers

 

 

 

Make an entrance - Front Yard

    Add interest to your doorway with potted plants
    Pave a pathway to your front door
    Spruce up your front door with a coat of paint
    Consider improving privacy by adding a low wall at the front of your house
    If your hallway is narrow and dark paint it a light colour and add a broad floor runner
    Invest in a new front door mat

 

Living Style - Lounge Room

    Use neutral colours in your living space
    Use receding colours like blues and greens to make the small space seem larger
    Find a focus in your room.  If you don't have a natural focus, add a feature wall
    Ensure your carpets are cleaned
    Ensure marked or damaged timber floors are re-sanded and polished
    Layout your living area to show how you live there

 

The Room That Sells - Kitchens

    Fix the floor by lifting old lino and replacing it with new lino, polished floorboards or tiles
    If your benchtops are scratched or stained, replace them with new laminate benchtops
    New cupboard and drawer handles will add life to an old kitchen
    A fresh coat of paint will cover cooking splatters and add life to a drab kitchen
    Kitchen clutter must be cleared

 

Soak Up a Sale - Bathroom

    Your bathroom must be spotless and tiles clean
    Fix or replace cracked basins, toilets or tubs
    Air your bathroom before inspections - bad smells are a buyer turn off!
    Add a little luxury with plump towels, handmade soaps, a plant or flowers
    Add some boutique bath products
    If your bathroom is small maximise space by putting the towel rail behind the door

 

Sleeping In Style

    Reduce the amount of furniture in small bedrooms to give the impression of space
    Storage is important - consider adding built-in wardrobes
    Add a little luxury with fresh linen, puffed pillows and extra cushions
    Dimmer switches create atmosphere in a bedroom
    De-personalise your bedroom but add little touches like candles and perfume bottles

 

Step Outside - Backyard

    Trim your lawns and weed your garden beds
    Defining your garden bed borders
    Add a focal point
    Give the illusion of space in a courtyard by using large pavers
    Introduce colour with pots of whatever is in flower

 

Finishing Touches

    Ensure all areas have been dusted, vacuumed and place new light globes in all rooms
    Add colour to neutral rooms through accessories
    Keep window treatments simple
    Disguise small windows: hang curtains from the top of the wall not the top of the window
    Add elegance by extending your curtain drop so it pillows on the floor
    Don't go overboard with patterned accessories as they create a cluttered feeling

http://www.ljhooker.com.au/sell/tips-for-property-sellers?sid=rsn

Buying or Selling First...What's More Risky?

When finance executive Ben Wamsteker stumbled across a rundown house for a bargain price, he knew he had to make an offer fast, or miss out.

He negotiated a home loan, purchased the house and listed his old apartment on the market — all within the space of a few weeks.

"We weren't nervous about buying before selling because we were confident our apartment would sell," Wamsteker says. "We used the same agent we'd bought it from, who sold it on the first viewing for a nice profit."

His plan was going swimmingly until the bank demanded a much larger deposit on their new mortgage just one week out from exchanging.

"We had to commit far more money to the loan, and because we settled two weeks late we incurred additional costs, which meant we had to stall our renovations for five months," Wamsteker says.

By buying before selling, Wamsteker found himself forking out more money than he'd budgeted for. He also risked being caught with two mortgages or an expensive bridging loan, and if his apartment had sold for less than he predicted, he may have found himself over-extended on his next loan.

As a result, many real estate agents believe it's safer to sell first, then buy.

"As a general rule it's wise to get a sale on your property and then go shopping, especially in volatile times when banks are more cautious about funding," says Bob Westwood, principal at First National Real Estate Westwood in Melbourne.

"It really depends on the state of the market," Westwood says. "If you're confident your existing property will sell, you might consider buying first. It's a matter of asking, 'Can I afford to hold [two properties] if my existing property doesn't sell? Am I confident of what my property will bring, so I don't buy at a price that's unattainable?'"

Unfortunately, selling first comes with its own risks.

Jennifer Tran moved her family into a cheap rental home after selling their family home in Bondi. "We thought we'd rent for a few months until we found our next home, but we ended up living there for almost two years.

The walls were made of fibro, there were no drawers in the kitchen, the bathroom sink clogged up every time we used it — it was disgusting," Tran says.

Tran and her husband had a hunch house prices would drop, but their prediction never eventuated. In the interim, they missed out on buying several houses, while spending thousands of dollars on rent.

"We tried to read the market but instead of prices going down, they just kept going up. A year later we realised there were at least five places that we should have bought.

Finally we thought, 'This is ridiculous — we have to buy again before prices rise even higher'."

Eventually, Tran purchased their current home in North Bondi. "It does feel like a compromise, it wasn't exactly what we were looking for. But sometimes you just have to bite the bullet and accept you'll never get everything you want," she says.

As a general rule, when buying first it's wise to calculate the costs of bridging loans and deposit bonds, and err on the side of caution so you don't spend more than you can afford.

When selling first, bear in mind that property prices may rise while you're looking for your next home, which means you'll get less bang for your buck.

Wamsteker admits he's experienced a few hiccups by buying before selling, but he's got no regrets.

"In hindsight, I'd do exactly the same thing," he says. "If you know it's a rising market, you need to beat other buyers to making an offer. We saw a property that was very cheap and we had a vision to do something with it. Sometimes you've just got to pull the trigger."

By Barbara Messer, ninemsn Money

http://finance.ninemsn.com.au/pfproperty/sellingandmoving/8134199/buying-or-selling-first-151-whats-more-risky

Kylie's Tip of the Day...Leave a Light On for Me

Moving out before sold? Leave the electricity connected for open inspections.

Spring Fever: The Risks of Selling Seasonally

Every spring, buyers and sellers who hibernated during the winter months return to the market. Yet contrary to popular belief, spring may not be the best time to sell your property at the highest price.

"If you asked the average person, nine out of 10 would say that spring is the best time to sell. In reality, I honestly don't think it makes a lot of difference," says Michael Levy, director at R&W in Clovelly, Sydney.

He admits sunny weather reveals properties in their best light. "There's no question that spring is the nicest time to view properties because gardens are blooming and the sun is shining. But do you get a better price? Probably not," he says.

The reason, according to Levy, relates to supply and demand. With more properties for sale in spring, buyers are in a better bargaining position — if they miss out on one property this weekend, there'll be others on sale next weekend.

On the other hand, buyers who endure drizzly weather and thundering skies aren't window-shopping — they're serious buyers. And with fewer properties to choose from in winter, they may be prepared to pay a premium.

Peter Hickey, senior agent at Buxton Sandringham in Melbourne, believes mid-winter and mid-summer are good times to sell and avoid the flood of listings that arrive each spring and autumn. "If you're a buyer, you want to be out there when there's as much stock as possible because extra choice gives you more bargaining leverage," Hickey says.

"But if you're a seller, remember that buyers don't stop looking because the weather's bad. Most people want to spend two or three months house-hunting at the very most, especially if they've got young families, and if there are only a few homes to choose from in winter, they may pay more."

The cons of selling in winter include unreliable weather, and buyers who sniff out sellers' willingness to negotiate when they realise very few buyers are around. In the US, many agents claim homes sell for 3 percent more than the annual average price in early summer, but drop 3 percent below the average in winter.

In Australia, however, location plays a major role in seasonal buying trends. Coastal properties do look best in spring or summer, but country properties or ski lodges may actually appear more enticing in winter. In popular areas like Sydney's eastern suburbs, "buying is not so seasonal because competition is strong all year round," says Anita Bloomfield, senior sales consultant at LJ Hooker in Randwick.

"The only time the market is dead to the world is at Christmas. No-one wants to exchange and move over the holiday season — everyone wants to settle and unpack in time for Christmas dinner." Levy agrees, saying sellers are more likely to compromise on price between mid-December and mid-January, when fewer buyers are around.

It's arguably more important to dodge public holidays and major events such as Easter, Christmas, AFL grand final day or Melbourne Cup long weekend, when buyers are all but non-existent. Bloomfield says it's up to individuals to assess the merits of selling in spring or autumn versus winter or summer.

"Spring is typically the season when sellers come onto the market because people think their property will attract more buyers," Bloomfield says. "But it's important to assess the pros and cons of each season — the best time of year for selling really depends on individual circumstances."

By Barbara Messer, ninemsn Money

http://finance.ninemsn.com.au/pfproperty/sellingandmoving/8136303/spring-fever-the-risks-of-selling-seasonally

Handy Hints for Dealing with Real Estate Agents

Do your research and know your rights. Here are some tips and checks to help you deal more confidently with a real estate agent:

1. All states and territories require real estate agents to be licensed and some require an agent to follow a code of conduct. Check that the agent you are dealing with is licensed and is abiding by any codes of conduct that apply.
2. Check the details of any contracts carefully to make sure you understand all the terms and conditions that could apply. Verify and ask questions if you are unsure.
3. Check that you understand the full cost of the services before you commit yourself.
4. Check if there are any limitations and qualifications on the value of services carefully.
5. Consider getting an independent valuation and legal advice before you sign any contracts.
6. Ask yourself whether the information given to you by agents seems fair, accurate and current.
7. Remember: it is okay to ask questions and, if you are in any doubt, get a second opinion or consult another agent.

http://www.accc.gov.au/content/index.phtml/itemId/890091

What is the "Cooling Off Period" in a Contract?

A cooling off period is usually where one party - usually the buyer - is given a short amount of time after signing and exchanging the contracts to decide if they definitely want to proceed.

The seller is generally bound to the contract and prohibited to sell the property to anyone else during the cooling off period.

The rules of cooling off periods differ between the states, so take care to check the details that apply to your location with a solicitor or conveyancer.

http://www.ljhooker.com.au/buy/buying-faqs?sid=rsn

Kylie's Tip of the Day...Buyer Database

Fast track your search - tell every agent what you're looking for and ask to be on their database.

Determining Purchase Price

What factors determine the purchase price of the property you are buying?

While a number of factors come into play, in the end a property's worth is judged by only one figure - how much is somebody prepared to pay for it at the time?

The most significant considerations for pricing a property are recent sales and current competition.

The former is a review of what other properties of this type have sold for, while the latter takes into account similar homes that are presently on the market.

Your LJ Hooker agent can provide you with information and advice regarding both of these aspects of the house-hunting process through competitive market analysis.

It is also import to take note of the prevailing market conditions, as these can generate a genuine insight into short-term trends and help prospective homebuyers gain a feel for what they will need to pay to achieve their goals.

If high buyer demand exists at a time when very little property is actually available, prices are likely to increase.

'Seller motivation' - the reason the current owner is attempting to offload the property - might also play a major role in determining the final cost. If a quick sale is required, vendors have little choice but to accept the best offer at the time without the luxury of waiting for a better deal.

http://www.ljhooker.com.au/buy/buying-faqs?sid=rsn

From Empty Nest to Nest Egg

It is the classic quandary for many empty, or soon-to-be empty nesters across the country: what to do with the big family home once the adult children have finally flown the coop? Is the answer to stay in it, sell it, or rent it out?

Now that the first of the baby-boomers are of official retirement age, the property and finance industries are dealing with more retirees and impending retirees than ever before. Experts are certain on one thing -- there is no one right or wrong answer. Personal circumstances, market movements (including real estate and share markets) and individual lifestyle choices are different for everyone.

Baby-boomers have taken a hit on their savings and super investments in recent years, but one silver lining for many is that the family home has been paid off and is now worth a whole lot more than it was a generation ago. Deciding on what to do with the empty nest will take a lot of homework, but here are a few ideas to make your home work for you.

Reversing gears
Reverse mortgages allow eligible homeowners to borrow up to a certain per cent of the value of their property, or investment property, and then repay the debt from its sale when they move out or pass away. Repayments can also be made at any time.

Belinda Williamson from Mortgage Choice says the group has a list of handy tips for anyone considering a reverse mortgage. First, it is a good idea to discuss with family members the decision to take out a reverse mortgage, especially the beneficiaries of your estate, because a reverse mortgage will affect their inheritance.

The next step Mortgage Choice advises is to seek financial advice from an accountant to determine if a reverse mortgage meets your financial needs and desires, as well as a solicitor to satisfy any legal queries. And anyone who may be on the borderline of receiving a pension should check in with Centrelink to assess any impacts a reverse mortgage could have on benefits. Williamson also says getting help from a mortgage broker will help empty nesters find out how much they could borrow and to wade through the maze of products available.

Another option for empty nesters is to use the equity built up in the family home to kick-start a property investment portfolio, renovate, or just to indulge a little. "Depending on your financial circumstances, and the advice you receive from your accountant and/or financial planner, your home equity can be used for a wide range of purposes," she says.

Room at the inn
In a recent survey by PRDnationwide, almost one in three homeowners would consider renting their spare room to help pay the mortgage. For empty nesters, renting out rooms in the big family home could not only fill the gap left by the kids moving out, it could bring in extra cash. PRDnationwide's research director, Aaron Maskrey, says the survey results were not surprising given the tough economic times.

"Renting out a spare room to generate extra cash could reduce the likelihood of suffering mortgage stress. Getting on to the property ladder is increasingly difficult for thousands of first-time buyers in Australia and, increasingly, homeowners are making unused space earn its keep," Maskrey says, adding that finding a lodger has become easier with a range of websites advertising rooms to rent and flatmates.

Ian Agnew, NSW and ACT general manager of Archicentre, the building advisory service for the Australian Institute of Architects, says rethinking home design could be the answer to our metropolitan housing crisis. He says for older Australians looking for a way to fund their retirement, purpose-built or redesigned properties could provide a healthy source of income.

"By designing a home with two separate entries and facilities for cooking, laundry and bathroom areas, plus private outdoor spaces, a new homebuyer can build in a rental return to help pay for the new home, which in the future can be expanded at a later time into a full-size home by a simple renovation that joins both zones," he says. He says it is taking the idea of the "granny flat" and taking it one step further because it provides an alternative option for baby boomers who want to downsize without actually leaving their home.

Move out and up
Kevin Young, founder and director of The Investors Club, which helps investors build property investment portfolios, says selling the family home to downsize might not be the best option for empty nesters today.

Stagnating property prices in many suburban areas and a tight rental market in our cities mean renting out the family home and leasing a smaller, more convenient property could be the best bet. Young says empty nesters can trade in the lawnmower and pool equipment for a "lock up and leave" lifestyle in an apartment or villa.

"By not selling, you have a regular rental income and by renting a home elsewhere you avoid paying stamp duty and can change your mind after a year and try somewhere else if you want to," he says. "This method gives you flexibility and the chance to become a SKIN -- that's someone spending kids' inheritance now," Young says.

Whatever the decision, Young says it is imperative that these empty nesters put a plan into action. "Too many people wait until a year or two after retirement to decide about their future. You've got to set yourself up before you retire because, while you're still working, that's when banks will still throw money at you, and you can set up a line of credit," he says.

by Kirsten Craze | The Daily Telegraph

 

http://discover.realestate.com.au/buying/from-empty-nest-to-nest-egg