Kylie's Tip of the Day...The Little Things

Seriously...pick up the poop.

The Ins and Outs of Advertising and Marketing

This is a very important part of the selling process as how your property is advertised will affect how many people become aware of it and interested in it.

All the information about your property must be factual, accurate and up to date. Advertising must not be misleading or deceptive, including any information passed on orally, in writing or in photos. If the information isn't accurate a buyer could withdraw from a contract of sale on the basis of misrepresentation and could even take legal action.

If you are planning to advertise the property yourself things you will need to consider include:

• where and how much it will cost to advertise - eg online, newspapers
• how to present your property - eg to appeal particularly to families
• taking photographs and video footage
• printing flyers and brochures.

If you are using a real estate agent ask them to explain their marketing strategy and to show you an example of this. Check what an agent will charge you for advertising your property. You may be charged for the up-front cost of advertising your property and could potentially be paying more than the actual cost incurred by an agent. Many agents receive a discount for advertising multiple properties all at once and you are within your rights to negotiate with the agent to receive a benefit for these discounts.

http://www.sa.gov.au/subject/Housing,+property+and+land/Buying+and+selling/Selling+your+property/Things+to+consider+when+selling

What’s Included in the Sale?

You will need to decide what will be left in the property when it is sold. These are called chattels. Usually light fittings and appliances that are hard-wired (e.g. dishwasher), as well as curtains and blinds are all included in the sale.

You may be happy to leave certain items that would normally be excluded such as wardrobes you will no longer need or a refrigerator that won't fit into your new kitchen. These items can be included for no additional cost or perhaps as "negotiable items" that can be included for the right price.

Also consider what you don't want included in the sale - eg potted plants, curtains that match your bedspread, an heirloom chandelier or garden ornaments. These will need to be detailed in the contract of sale as specifically excluded from the sale of the property.

A Seller's Worst Mistake

When selling property it is not uncommon for a real estate agent to try and succeed where others failed by picking up the listing of a home that hasn’t sold. It can be a real opportunity for maximising profits by making the most of a situation where a seller and their previous estate agent have made errors when deciding on a house’s price.

Don’t chase the highest real estate price:

Everyone dreams of achieving huge profits when selling their property, but it is better to go with a realistic price for your home. When choosing a real estate agent to sell your house, don’t automatically think the highest price is the best. This is easier said than done. The thought of more cash at your disposal after the sale goes through may bring mental pictures of an elaborate home for the future, abundant investment options, money for a holiday overseas, or a new car. The truth is chasing the unrealistic dream of the highest quoted sale price can often result in the worst mistake a person selling property can make.

Discovering the house price of your property:

In reality what you think your home is worth is irrelevant. This also goes for what real estate agents believe your house price should be. The only person who really matters is the potential buyer of the home. Discovering the true house price for your home involves comparing it to similar homes in your location, adjusting for any pros or cons your home has when put side to side with its competitors, observing current market trends, and seeing what the overall supply and demand levels are in your region.

Doing these tasks will give you a good idea of what real estate price range the buyers in your area will be willing to offer. This is how a valuer appraises a property, and so why should you be any different in your approach? You will end up with a price range to work with, as opposed to a singular house price, because in the end no two valuations are ever exactly like the other. You need to make an educated estimate by seeing how the market values your home.

Could I be pricing my home too low?

As with all things in life, something is worth what someone else is willing to pay for it, and judging real estate prices is no different. When you do set the price of your property too low, you need not be concerned. If your competing sellers’ homes have higher sale prices you will most probably get more attention and thus, more offers for the house. This will force the house price up to its true market value. This is not a risky choice for you. However, if you set your house price too high and choose your estate agent based on their high valuation, you are walking on proverbial thin ice.

The initial cause of a failed real estate sale:

If you choose an estate agent solely because of their high pricing of your property, you risk leaving the home on the market until its original listing expires. This usually takes around three months and is the result of an inflated real estate price. If your estate agent doesn’t know the area well, or just wants to attract your business at all costs, you’ll be in trouble.

Another step downward:

If you choose a second real estate agent to sell the home, they could lower the price, but it doesn’t mean they have an accurate idea of what the property is worth. Now that the price is coming down potential buyers may be coerced into thinking there is something wrong with the home. You may get a few people inspecting, but don’t be surprised if actual buyers are nowhere to be found. More months may pass, and your property still may have not been sold.

Unsold over a long-term period:

Some people selling property have their home on the market for so long they need a third estate agent. By this time their morale has been beaten down and optimism has waned into oblivion. Chances are you may end up selling the home for far less than you originally hoped, even though the surrounding homes in your location are fetching much higher amounts. As the home was on the market at the wrong price for so long, it has become tainted in the eyes of the buying public.

Some real estate agents’ specialty is selling listings that have expired:

It is standard practice for some estate agents to spend the majority of their work time contacting sellers of expired listings in order to relist them at their true market value. This can be a very lucrative industry for an estate agent, as it is not uncommon for sellers to initially price their home too high via an inaccurate appraisal from an uninformed or biased real estate agent’s opinion. Overpricing a property is not a rarity, so you must take care.

Ensure you are safe:

Now it is time to contemplate how much money those sellers lose after their initial listing has expired. These fiscal losses multiply over time, as one needs to consistently keep the house up to a high standard for showings and inspections. You also have to pay extra mortgage repayments, plus there is the amount of money lost because buyers never pay as much for an old listing as they do for a new one just on the market. Your beautiful home has now been reduced to an old mare put out to pasture, overpriced and left on the market so long it is deemed as flawed and outdated. Make sure this never happens to you. Being a seller of an expired listing should be anathema to your real estate goals, and you need to act accordingly.


http://www.sellmycastle.com.au/articles/a-seller-s-worse-pricing-mistake-when-selling-property/150/

To Sell by Auction or Private Treaty?

Selling by private treaty or auction is a highly debated topic in the real estate industry. Whilst many would argue that auctions are the best way to secure the highest sale price for your property given the competitive nature of buyers on the day, others believe private sale is the way to go.

So which method of sale should you choose? To help make a more informed decision, realestateVIEW.com.au has compiled a list of pros and cons to weigh up when selling your home.

Selling at Auction

Benefits:

1) Sense of Urgency: Auctions generate a sense of urgency amongst buyers. This sense of urgency is due to there being a set ‘end date’ for the sale of the property and this compels potential buyers to make a decision on the day.

2) Competition Amongst Buyers: At an auction, competitive bidding amongst potential buyers means that the selling price often exceeds the expected value of the property, maximising the sale price for the seller.

3) Reserve Price Protection: An auction provides sellers with protection in the form of a reserve price. This means that your property will not sell unless bidding reaches a pre-agreed level. Further, there is no ceiling price, so you have the opportunity to achieve a price well above your expectations especially if there is a competitive crowd.

4) Set Terms: Auctions are suited to situations where the owner wants an unconditional sale (no cooling off at auction) or wishes to set specific terms of sale, such as settlement terms to suit the vendor.

Limitations:

1) Cost: There may be additional costs involved to sell a property via auction to cover the cost of hiring a specialist auctioneer. It is important to discuss and compare the costs to sell via auction or private sale with your agent.

2) Sales Evidence: For properties where there is ample accurate sales evidence, an auction may not be the best way of selling. For example, for a large block of identical units which are all of a similar specification, everyone would be aware of the sale price of other units, thus private sale could result in a higher sale price per property.

3) Special Conditions of Sale: Generally, auctions are not suited to buyers who wish to purchase subject to finance as often bids are unconditional. This limits the potential number of buyers that your property could appeal to.

Tips for a successful auction

• Selecting an auctioneer: The auctioneer will play a key role in the success of your sale, particularly in a scenario where only one or two bidders turn up on the day. Ensure you see several auctioneers in action before deciding on whom to go with. Ask them about their agency’s strategies to maximise the best price for your property, and choose an auctioneer with a proven track record in auctions and an excellent knowledge of the local area.

• Setting a reserve price: Settle on a final reserve (i.e. the lowest price you are willing to accept) in the days leading up to the auction. It is important that the reserve is well planned, so that you don’t end up negotiating this half-way through the auction when time, pressure and emotions are high. It is also important that you do not disclose or discuss your reserve price with anyone except your agent/auctioneer.

• Contracts: It is important to make sure you have the contract and vendor statement available well before the auction date. This way you will have everything prepared in advance, and not have to stress over these details in the days leading up to the auction.

• Accepting market value: Be prepared to accept the market value on auction day, provided there has been competitive bidding between multiple bidders. Sometimes auctions achieve results lower than your expectations as a result of market conditions, and this is why you need to properly plan your reserve price.

Private Sale / Treaty

Benefits:

1) Less intimidating for buyers: For many potential sellers and buyers, the thought of an auction can be quite overwhelming and intimidating. For this reason, private sales / treaties can be beneficial in that sellers have more time to consider offers made by potential buyers and vice versa.
2) Urgency to sell:  Private sales / treaties are suited to sellers that do not have an urgency to sell, and where they may be open to accepting different sale terms, such as an extended settlement period, sale subject to finance or subject to the sale of the buyer’s home.
3) Cost: Selling via private sale / treaty can often prove to be less expensive than an auction, as marketing campaigns for private sale properties are usually not as extensive. It is important to discuss and compare the costs to sell via auction vs private sale with your agent.
4) Privacy: As a private sale / treaty occurs through a negotiation process, it provides greater privacy and enables you to keep the specific details of the sale out of the public eye.

Limitations:

1) Cooling off period: Private sales / treaties are usually subject to a cooling off period (this period differs by state), as a result the buyer could change their mind after contracts have been signed.
2) Sale length: Selling via a private sale / treaty method often can take more time than an auction. This is because there is no specific end date to give prospective buyers a sense of urgency. No deadline may also mean that potential purchasers may not be motivated to act as quickly.
3) Maximising the sales price:  A key limitation of private sales / treaties is that the price is negotiated down compared with auctions where the bids increase. This means that the property is less likely to sell for more than the asking price.

Tips for a successful private sale / treaty

• Creating interest in the property: If timing of the sale is important to you, discuss your options with the agents you are considering engaging to sell the property. Some options to speed up the sale may include: additional advertising; setting a lower asking price; being flexible about inspection times; or making some quick cosmetic changes to the property. You may also consider selling via “expression of interest”, which calls for offers by a specific date.

• Pricing your property:  As the price is often negotiated down in the private sale method, it is important that you price the property slightly above the price you would like to sell the property for. By doing so you will increase your chances of reaching your asking price after the negotiation process takes place.

http://advice.realestateview.com.au/selling/to-sell-at-auction-or-private-sale/

Kylie's Tip of the Day...Solar Electricity Panels

Will the savings on your electricity bill recoup your potential loss in property value?
Aesthetics should not be forgotten when planning your energy saving improvements.

How to Spot a Property Lemon

A property with defects can be an investor’s nightmare, not to mention a money pit. Here’s how to minimise your risk of buying a ‘lemon’.

You might think building faults are confined to structures like that condemned old hovel at the end of the road that’s about to fall down. If so, you might want to think again.

The only safe way to get a thorough assessment of a property’s condition is to have a building and pest inspection conducted by a qualified specialist. In the meantime, there are also some ways to identify possible dangers lurking about a property and to at least make a preliminary assessment during your property hunting process.

Structure – Structural problems stemming from shifting and movement can be some of the most serious to affect a property. The problem can often be identified by cracking in walls or plaster, and the more severe the cracking the worse it is likely to be. Cracking in external brick walls is a particular worry so keep a good eye out for these.

Plumbing – Plumbing issues are especially common in older houses and can be a significant cost to bear. Rusty pipes are usually quite easy to detect: simply turning on the taps and testing the water pressure is a good indication of the quality of the plumbing. Makeshift drains and quick-fix solutions often result in damp areas which can seriously damage the structure and are a magnet for termites.

Electrical – Wiring and other electrical problems are some of the most dangerous because they can increase the risk of fire. While more prevalent in older properties they also occur in newer properties, particularly when DIY work has been done – and unfortunately, many owners do their own electrical work to save money. Blackened areas around power points are a great tell-tale sign of faulty wiring.

Roofing – Problems in the roof can have serious consequences for the internal structure as well as create risks where wiring is exposed to water. Look for rust on the roof or guttering; poorly fitted or sagging gutters plus bubbling or swelling in wall paint are usually a good indication of a leaking roof.

Water damage – Water seepage around the building can also cause damp floors and mould problems. This is not only unpleasant but it can also lead to more serious problems in the longer term. Look for damp and wetness in floors or walls; mould growth and spotting; damp lines along wall bases; damp or rotten skirting boards; and salt deposits on the walls.

Pests – With one in three properties affected by pest issues, this is something all home owners and investors should keep at the forefront of their minds. Left unidentified, pests such as termites can wreak havoc on floors and walls.

Look for small, papery bits of wood residue around cornices, door frames and window frames as well as tiny wings on window sills, gaps in walls or door frames, damaged floors and even swarms of flying termites outside the property. Bubbled paint can also point to termite damage.

Illegal/inferior work – Renovations and alterations made without council approval or carried out by unqualified people can be a major problem for investors. Keep an eye out for any rooms that look like they may have been recent modifications.

Remember, the best way to make money as an investor is to buy well.

These tips offer a great way to shortlist properties but a thorough inspection and assessment of a property’s condition by an expert prior to signing any dotted lines is a must. This is the only way to ensure you’re making a smart investment and are on your way to building real wealth.

For further property investment insights and all the latest property market news visit www.spionline.com.au


http://www.ljhooker.com.au/myljhooker:tips?p=suggested&id=5007673fdd3df85a69000316&ap=1&sort=preferences&keywords=&tag=

Kylie's Tip of the Day...Your Prized Collection

A room full of porcelain dolls is not a good idea. Ever. Pre-pack any prized collections to minimize distractions.

What if You Have to Compromise?

This is a reality most of us are faced with at some point in time when it comes to buying a property. Often buying the house of your dreams in your preferred location is not always attainable, meaning you may have to compromise space for location or vice versa.

If you have undertaken the above research you probably have a good idea by now just how much ‘home’ you can afford in the suburbs you would prefer to live in. If you cannot afford the home of your dreams in your desired neighbourhood, then it may be time to readdress your expectations or save some more money. However, saving money takes time and it may be better to settle for something less than perfect as prices will often increase while you wait.

Staying flexible with your housing criteria is important and is often a great way to climb up the property ladder. We’ve all heard that it is best to buy the worst house in the best street, however if you’re about to start a family or not in a position to renovate then undertaking major renovations may not be the best way to go. List what is most important to you now and in the future. Consider the following features to help you prioritise:

1. Convenience – do you need to be close to your workplace or would you be willing to spend longer commuting to work if you could live near the beach?
2. Proximity to amenities – is being close to schools, childcare, public transport and shopping centres a priority? Would you like to be able to walk to restaurants and cafes?
3. Land and house size – usually the closer you are to the CBD the more expensive land is and the harder it is to come by. The same goes for house size with the suburbs usually offering more house for your money.
4. Maintenance – are you downsizing or do you travel a lot? Perhaps an apartment or townhouse, which requires minimal upkeep is more suited to your lifestyle?
5. Renovations – are you hoping to capitalise on the future potential a property can offer? Perhaps by buying a smaller house with the scope to expand the accommodation, you may be able to afford to live in your dream location?
6. Rental potential – if you’re an investor, then this will be at the top of your priority list. It can vary from market to market so be sure to thoroughly research what features rate highly with your potential tenants.

http://www.ljhooker.com.au/myljhooker:tips?p=&id=4f28b8d5e24a89af0f00005e&ap=4&sort=&keywords=&tag

Ten Tips to Sell Your Home for More

 

PROPERTY prices might be falling or stalling in most areas, but there are tricks of the trade that can still boost the value of your home - without the need for a major renovation or spending thousands of dollars.

 

Your Money asked our property experts to round up their top tips to quickly add value to a home to help make it stand out and add thousands of dollars to the price tag.

If you want to add value to your biggest asset, here are our experts' top 10 tips to do it quickly:

1. REMOVE THE BLINKERS

You are often not the best person to pass a critical eye over your property before embarking on any changes or improvements.

In most cases, it helps to have a friend or someone independent to go through the property with a notebook and jot down everything they don't like or think needs improvement, as well as noting the wow factors and the good points.

"Think like a buyer and take a walk through your own home. Make a list of all the things that would raise major issues," Archicentre managing director David Hallett says.

Valuer WBP Property chief executive Greville Pabst says start your inspection from the end of the street on the other side of the road.

"Walk from across the street towards and right through your property as if you've never been there before. By doing this, you will notice all the small faults your eyes have got used to," Pabst says.

It is only after this critical assessment that you can see things through new eyes.

You might have got used to a barren front yard, overlooking neighbours and a dodgy back door, but when it comes to adding value, fixing these small things can often provide the biggest boost.

2. FIRST IMPRESSIONS

Make sure your front garden, fence and path makes a good first impression. Tidy or landscape the front yard, paint the fence and gate, and ensure the house is clearly numbered.

Make sure the facade of the house is in good condition. This can include cleaning the windows, front porch, gutters or even hiring a water blaster to give the exterior walls, front path, fence and woodwork a professional clean.

3. PAINT TOUCH-UP

Wash or paint the front door, put welcoming pot plants either side of the entrance, provide a coat hook, table or stool to place shopping on while you fumble for the door keys.

Install a motion sensor front light as a safety measure and to welcome your visitors when they arrive at night.

4. QUICK REPLACEMENTS

Other easy updates include replacing old door handles on interior doors and updating light fittings in all rooms.

These small items help give a clean, contemporary and well-cared-for impression, as well as being very practical and easier to live in the home.

5. CURTAIN CALL

Remove heavy drapes, blinds and curtains and replace them with light-filtering fabrics.

You still get the privacy but more light is able to stream through the home.

Alternatively, make sure all curtains and blinds do not cover any window space when they are opened fully.

Fit skylights to bathrooms or any other areas that do not have enough natural light.

6. INTERNAL SPACE

Metropole Property managing director Michael Yardney says the impression you want people to have when they visit your property is that they would like to live there themselves.

This means ensuring that the home is well furnished, is welcoming and comfortable.

"Rearrange furniture to make rooms bigger and create spaces that allow easy access," he says.

7. CHANGE OF PLAN

Archicentre's David Hallett says don't be too afraid to rearrange the floor plan.

"If you have a two-bedroom home, the quickest way to increase the value is rearrange internal space to create a third bedroom or have a design concept prepared to show how they can add a bedroom."

The same goes for a study nook or home office. There is usually some "dead" space in a home that can be converted to an office area, such as a built-in wardrobe, cupboard or an area underneath the stairs.

8. FLOORS AND DOORS

"Polishing an existing timber floor or installing a floating timber floor can also dramatically change the appearance of large areas such as living rooms, kitchens and hallway entrances, to create a wow factor at a comparatively low cost," Hallett says.

Adding a wall of glass folding doors will also open up a small house to the outside - even if it is just to a lightwell or side walkway. This can enlarge your living space to include the outside area when the doors are open.

9. BETTER BATHROOMS

A shower head over a bath may not be ideal, but it is still better than a bath only with no shower. If you can't have two bathrooms in a home, at least make one a separate toilet.

10. OUTSIDE AREAS

Provide plenty of functional outside areas such as off-street car parking, a shed, storage areas, play area and, of course, entertaining and gardening.

WBP's Greville Pabst says properties with vehicle space, especially in inner-city areas, are highly sought after and add considerable value.

Creating extra parking or a front drive-on area will add tens of thousands of dollars while in most situations it requires little more than removing part of the front fence and the cost of a cross-over permit from the local government authorities.

If there is definitely no space for a car to park, then create an area large enough for a motorbike or bicycles. This will also be an added feature.


http://www.news.com.au/money/property/ten-tips-to-sell-your-home-for-more/story-e6frfmd0-1226335335473

A Cosy Home Will Win Over Buyers

NOW that the beach towels and thongs are well and truly filed away at the back of the wardrobe and the snuggly rugs and fluffy slippers are a feature in the living room, it is time to stop thinking about ceiling fans and cross ventilation and dream of warmth.

 

Those cooler days and even colder nights are really beginning to creep in.

 

So if you are about to sell, or are selling, it is time to highlight the warm and cuddly aspects of your home.

 

If you are buying and you fall in a love with a home on a cold, grey, wet winter day, there is a good chance you will adore it the rest of the year as there are no rose tinted glasses in this season.

 

Whether you're selling a house, a unit, a mansion or a studio, first impressions are still everything.

 

The sales trick, if the weather is cold outside, is to ensure the home feels warm and cosy inside.

 

Any inspection that starts with a positive reaction always has a better chance of ending on a happy note.

 

Warmth comes not just from heat (I knew science in Year 9 would prepare me for adult life) but the ambience of warmth that can also be created with good lighting and a few warmer tactile items, such as rugs over large tiled areas, bed throws and cushions.

Even on a sunny day in winter, use lighting to create warmer areas during your open for inspection by turning on background lighting and lamps.

Fit dimmers to downlights and have them switched on to a low level.

This will make darker areas of the home feel more inviting, soften hard surfaces and subtly light the spaces.

Even though the door is likely to be open, you will need to ensure people feel a bit of heat when they walk inside. If you have a gas, wood or multi-fuel burner fireplace, crank it up. This is real estate gold at this time of year.

If you have a reverse-cycle airconditioning system, turn it to warm. Sure you don't get the cosy fireside atmosphere but it's functional and does the job.

Allow time to warm up the home fully a few hours before inspections, then turn it down. That way you should have a comfortable even temperature.

Now for those of you without any of the above, it is a trip to Bunnings for some portable heaters.

Once in the home, turn them up high just before the inspections, reduce their numbers and turn them to low.

On that note, wrap yourselves up and have a warm winter selling season.

By Andrew Winter*

From News Limited Newspapers

July 12, 2012

*Andrew Winter is a real estate consumer champion and the host of Selling Houses Australia on The LifeStyle Channel.

http://www.news.com.au/realestate/experts/a-cosy-home-will-win-over-buyers/story-fncv4m8d-1226424507272

Kylie's Tip of the Day...Candles at Open Inspections

Great for ambience or a fire hazard? Err on the side of caution!

Signs the Property Market is Improving

The 10 signs buyers should watch for that indicate property market recovery:

1. Offers are made before a property goes “public”
2. Multiple offers are made – by different buyers – on the same property after listing
3. Properties start to sell above listed or reserve price
4. New properties start to sell above their resale value
5. Tightening vacancy rate and rising rents
6. The amount of established stock on the market falls
7. New housing supply falls below its long-term underlying demand
8. Job growth starts to accelerate
9. Sales volumes start to increase
10. The time resales remain on the market fall

In Australia, Brisbane has nine out of 10. Too early to call an upturn? Maybe, but the signs are definitely there. Of course, the proof in the pudding is a sustained rise in generic property prices.


By Michael Matusik     

13 June 2012

http://www.propertyobserver.com.au/residential/the-10-signs-investors-should-watch-for-of-property-market-recovery-michael-matusik/2012061255085

Latest Property Values

ADELAIDE

Month -1.1%
Quarter 1.3%
Year-to-date -0.2%
Year-on-year -2.4%
Total return year-on-year 1.8%
Median based on settled sales over the quarter $370,000

SYDNEY
Month 1.0%
Quarter -0.5%
Year-to-date 0.6%
Year-on-year -2.0%
Total return year-on-year 2.4%
Median based on settled sales over the quarter $541,000

MELBOURNE
Month 1.0%
Quarter -3.4%
Year-to-date -4.1%
Year-on-year -6.6%
Total return year-on-year -3.1%
Median based on settled sales over the quarter $480,000

BRISBANE-GOLD COAST
Month 1.0%
Quarter -0.3%
Year-to-date -0.9%
Year-on-year -5.0%
Total return year-on-year -0.4%
Median based on settled sales over the quarter $415,000

PERTH
Month 2.0%
Quarter -0.1%
Year-to-date 0.8%
Year-on-year -1.4%
Total return year-on-year 2.8%
Median based on settled sales over the quarter $460,000

HOBART
Month 2.7%
Quarter -1.4%
Year-to-date 5.7%
Year-on-year -5.2%
Total return year-on-year -0.1%
Median based on settled sales over the quarter $342,000

DARWIN
Month -0.7%
Quarter -1.6%
Year-to-date 2.2%
Year-on-year 0.2%
Total return year-on-year 6.2%
Median based on settled sales over the quarter $468,000

CANBERRA
Month 2.0%
Quarter 0.6%
Year-to-date 0.7%
Year-on-year 1.3%
Total return year-on-year 6.3%
Median based on settled sales over the quarter $485,000

BRISBANE
Month 1.0%
Quarter -0.6%
Year-to-date -1.0%
Year-on-year -4.7%
Total return year-on-year -0.2%
Median based on settled sales over the quarter $415,000

8 AUSTRALIAN CAPITAL CITIES
Month 1.0%
Quarter -1.2%
Year-to-date -1.2%
Year-on-year -3.6%
Total return year-on-year 0.5%
Median based on settled sales over the quarter $460,000


Sourced from The RP Data-Rismark Home Value Index June 2012

by Real Estate Editor Amy Noonan, Adelaide Now      

July 02, 2012

http://www.adelaidenow.com.au/real-estate/news/mixed-messages-for-adelaide-real-estate-market/comments-e6frefgc-1226414308783

Kylie's Tip of the Day...Advertising and Marketing Costs

Upfront, invoiced or paid at settlement?
Don't forget to ask when marketing is due.

New Real Estate Laws to Protect House Buyers

REAL estate agents will be banned from advertising properties at unrealistic prices under new legislation released by the (SA) State Government today.

Business Services and Consumers Minister John Rau today released an industry reform package he says will also cut red tape for agents and increase protection for buyers.

Mr Rau said the Government received complaints from prospective buyers who have outlaid money for things including building inspections prior to auction only to see sale at far higher prices than advertised.

The reserve price will now have to be no more than 10 per cent over the acceptable selling price.

"At the moment, a vendor and agent can agree to a very low price in the sales agency agreement, market the property at that price, but then set the reserve at any figure above that advertised price," Mr Rau said.

 

"This is misleading, frustrating and unfair for prospective buyers. Under the legislation ... any prospective purchaser will have a reasonable idea about the reserve price before the auction.

Buying a home is the biggest financial investment that most people will ever make. It is important that the legislation is effective and robust, so that everyone can have confidence in the process."

by Daniel Wills, The Advertiser

 

July 01, 2012

 

http://www.adelaidenow.com.au/real-estate/news/new-real-estate-laws-to-protect-house-buyers-against-unrealistic-prices/story-e6frefgc-1226413475660

Selling in a Buyers' Market

If you sold a property in Sydney in 2009 or 2010, particularly in an area with strong demand from investors as well as home buyers, you probably did pretty well. 

During this period it wasn’t unusual to see half a dozen genuine buyers bidding at auction, and 80 per cent to 90 per cent of properties selling under the hammer.

But in the residential property market, like anything else, the good times can’t last forever. The property market is cyclical; that’s what keeps it sustainable.

For every period when demand outweighs supply and buyers are practically knocking your door down, there comes another when buyers are less active and supply equals or outweighs demand.

For the past few years it has been a vendors’ market. Now it is a buyers’ market, with auction clearance rates falling to about 50 per cent to 60 per cent.

If you’re selling a property under these conditions, you may need to adjust your strategy.

First, you should ensure that the advertised price range truly reflects your property’s current market value. If you pitch it too high in a buyers’ market, it won’t attract enough interest.

Remember: a property is only worth what the market is prepared to pay for it. The last thing you want is to have your property languishing on the market for weeks or months just because you weren’t realistic in your price expectations.

When you’re negotiating the final sale price, be rational. As a vendor it’s natural to want as high a price as possible for your property.

But when the market cycle is turning in favour of buyers, they won’t be feeling as ‘‘desperate’’ to secure your property, so their spending may not reach the giddy heights you’re hoping for.

It’s also worth being more flexible regarding inspection times. Hold open-for-inspections, but also make your property available for private appointments, so that individual buyers can visit at times that suit them.

Many buyers are motivated by lifestyle considerations and emotional attachment as well as financial concerns. In a buyers’ market, they have the luxury of being fussier than they otherwise would, and more inclined to reject a property on minor grounds.

For this reason, it’s essential to make sure your property is presented in the best possible light.

Finally, think about the reason you’re selling. Will the best offer on the table allow you to get on with the next phase of your life? Will it give you enough money to buy another home or investment property, retire or achieve another key goal?

If it will, it’s worthy of serious consideration. If it won’t, maybe now is not the right time to sell.


by Mark Armstrong

June 19, 2011

Mark Armstrong is an independent property analyst and adviser, mark@ipropertyplan.com.au.


http://news.domain.com.au/domain/home-selling-tips/a-buyers-market-still-offers-chances-for-the-savvy-seller-20110620-1gbdd.html

15 questions for your Real Estate Agent

McGrath boss John McGrath suggests choosing the best agent to sell your property is the second most important decision in real estate, after choosing the right property to buy.

“From my experience many people are too casual in their approach to this crucial decision," he says.

“They ring a couple of agents and choose the one who gives them the highest valuation or has the lowest commission."

He says prospective vendors should create a series of questions to ask agents:

• What do you think my property is worth? How have you come up with that figure?
• How does my house present? What can I do to maximise the sale price?
• What’s the best method for selling my property? Auction or private treaty? Why?
• What’s an approximate time frame?
• What’s it going to cost me?
• Why should I hire you?
• How long have you been working in this area?
• What comparable homes have you sold in this area lately?
• What’s the state of the market?
• How long is it taking you to sell well priced listings at the moment?
• What marketing strategy do you suggest? Why?
• How much will be spent on marketing? Why?
• How much traffic does your website get?
• What will you do to introduce buyers to my property?
• Do you have a list of recent vendors I can speak to?

By Jonathan Chancellor

3 Feb 2012

Kylie's Tip of the Day...Interview Your Agent

Remember, your agent will be working for YOU
...don't be afraid to ask the tough questions!

How to Avoid a House of Horrors

It pays to be prepared to ensure moving in is a pleasure, not a pain.

It's here at last: the day that new home or investment property you signed up for months ago becomes yours. But what if you open the door and discover that what you thought you were getting and what you have been left by the vendor are two different things?

Holes in the garden where once there were roses; a space in the backyard where a $20,000 shed stood, or where a folding clothes line rested; a dishwasher-sized gap in the kitchen; basic ceiling lamps where fans with central lights had wafted summer breezes - these are all the subject of disputes that agents and lawyers say were avoidable if everything was spelt out in the first place.

''Full disclosure is a much better way,'' says Nelson Alexander partner Tom Roberts, who has heard ''horror stories'' of fireplaces being pulled out and missing dishwashers.

''Most of it is small stuff, but it is often the small things that cause people the most angst,'' says property lawyer Andrew Whitelaw, who had a client refusing to settle because the grass was too long.

Mr Whitelaw, of TressCox Lawyers, also had a client spend $3000 fighting about whether settlement included a $600 lawnmower - an example of one of the key causes of acrimony in settlements, relationship breakdown.

''The conditions in the Real Estate Institute of Victoria/Law Institute of Victoria contract say that at the time of settlement the property has to be in the same condition as at the time of sale,'' he says. Fair wear and tear is allowed. So if a buyer finds things missing, the issue is usually whether they were included in the first place.

''You have the right to inspect the property up to seven days before settlement. I recommend you do it as close to the settlement as possible,'' he says.

But finding the dishwasher gone or the satellite dish missing - cases Mr Whitelaw has dealt with - are not grounds to refuse payment.

''It is a legal obligation to settle,'' he says. ''If they don't settle, the vendor can issue a notice under the contract requiring the purchaser to settle within 14 days.'' The vendor can then repossess the property and keep the buyer's deposit.

But that does not mean nothing can be done, says REIV president Trevor Booth. Each party can pay an amount up to $5000 to be held by a stakeholder, usually a third-party lawyer, until the dispute is determined. Or an amount can be deducted at settlement to compensate the buyer for whatever the vendor has incorrectly taken.

But if you pay in full, trying for recompense after settlement can be tricky and may require court action.

''It is good agency practice when an agent lists a property for sale, one of the things they need to be very clear about is the items that will be staying on the property and to be quite clear if there are items that would [normally] stay with the property that the vendor wants to take,'' Mr Booth says.

Mr Roberts says that is Nelson Alexander's policy, and it is also the agency's policy to remind buyers they have the right to a final inspection.

Lists are the key, Mr Whitelaw says. ''At the time of the contract being signed it is up to the purchaser to list all the things they want in the contract and the vendor to list what they don't want in. The vendors' list can be as long as you want to make it. Otherwise the purchaser can consider those things included.''

Minimising settlement woes

• Record the condition of the property and its fixtures before signing the contract or soon afterwards. Property lawyer Andrew Whitelaw recommends taking photographs.
• Conduct a final inspection as close as possible to settlement, preferably the day before. By settlement morning, cheques may have been drawn.
• Make sure the contract includes a list of exclusions.
• Don't make assumptions. You may assume it is included, but the vendor may not, or vice versa.
• Vendors should ensure their agent tells buyers what is included and what is not. Buyers should be given this information by the agent at the first inspection - if not, ask.

In the eye of the beholder

What is a fixture and what is a fitting? Disputes about just that are quite common, says property lawyer Andrew Whitelaw. ‘‘The vendor, in selling, thinks their possessions are coming with them and the purchaser walks in and assumes they are staying.’’

Mr Whitelaw says, ‘‘If you have to do something for something to be removed then arguably it was fixed at the time.’’ So a table and chairs are not a fixture — unless they are bolted to a patio.

Dishwashers are plumbed in so, usually, are fixtures, but fridges are not. But some modern fridges are plumbed in so may have to stay unless excluded.

A case about whether a television antenna was a fixture made it to the Supreme Court and now satellite dishes are commonly disputed, Mr Whitelaw says. ‘‘Is that staying or going? These are the things that need to be nutted out at the time of signing.’’

Also commonly disputed: sheds, light fittings, surround-sound systems, ceiling fans, garden plants, fireplaces.

by Sue Green

July 8, 2012


http://news.domain.com.au/domain/avoid-a-house-of-horrors-20120707-21njf.html

Kylie's Tip of the Day...Think Outside the Box

Most homes look great in the early evening...try a dusk open inspection.

Pre-Auction Offers

Just because a home is advertised for auction does not mean you have to wait ‘til the day of the auction to bid for it.

Through the real estate agent you can make a pre-auction offer to the vendor. So far this year, 18 per cent of all auction sales have been sold before the day of the auction; this compares to 19 per cent at this time last year.

It is interesting to note that over the past six years, the proportion of homes sold before auction has reduced from around 23 per cent to the present-day 18 per cent.

Over that time there has been a 20 per cent chance the home will sell before – so, if you are interested, it is sensible to consider making an offer, lest you miss out.

With that in mind, there are a number of advantages in making an offer, even if the offer fails. A successful offer can allow you and the vendor to avoid the auction itself. It is also the case that, even if your offer is unsuccessful, the vendor is less likely to sell to a higher bidder without giving you another opportunity to make an offer.

If you do make an offer, it has to be an attractive one that gets the vendor’s attention and convinces them not to wait ‘til the day of the auction. There are several things you can do to make the offer attractive: first, put the offer in writing; secondly, attach a time limit after which the offer expires.

In some cases, presenting the offer along with a cheque for the deposit can really show the vendor that your offer is serious and that they may be better off not waiting ‘til the auction. It is also always advisable to get legal advice before signing the contract of sale.


http://www.reiv.com.au/News_Publications/News-Archive.aspx?newsID={93CC500A-EB2A-4250-B83A-033A543428B2}&title=Pre-auction

Staging your Home – the Pros and Cons

Is your furniture a bit shabby and making your home look tired? There is an answer - staging your home with hired furniture. We take you through what is involved and the pros and cons.

Home staging your property to enhance its sale prospects is now ubiquitous enough for Wikipedia to have its own entry on the topic. In particular, Wikipedia defines home staging as “…the act of preparing a private residence prior to going up for sale in the real estate marketplace.”

The purpose of home staging is to improve the overall style and aesthetics of a property and its appeal to prospective purchasers through the use of furniture, art, landscaping, scene setting and other cosmetic measures. While these aspects emphasise the improvement of a property, the reducing of the flaws of a property through depersonalising or ‘decluttering’ of living spaces and the like is a valid form of home staging.

For the sceptic, anecdotal evidence that a property’s time on the market reduces with home staging does exist. Successful home stagers realise that the staging is an art, not a science. A balance must be struck between the aesthetically pleasant and the garishly overdone. Don’t forget, you’re not creating a showroom, but rather a delightfully balanced and homely appearance – perfect for your property’s intended market.

Home staging assists your marketing effort by creating a superior distinction from similar properties for sale. You can’t afford to be lazy. First of all, ensure the simple things are done properly:

• Have you cleaned and tidied your house? Simple, but very effective.
• Is the garden tidy? Ensure the lawns are mowed and the leaves are raked up or blown away.
• Have fittings, door knobs, porches and the like been scrubbed clean? Most purchasers will relate to these items even if their own homes aren’t currently in perfect knick.
• Ensure all surfaces in your home are clean – walls, windows, glass etc.

Effective home staging avoids clutter. Put extra bits and pieces in storage – especially those books, magazines and CDs. It’s also a good idea to remove the personal touches from your property when home staging. When viewing your home, prospective buyers should feel as though the house is already theirs; they should not be made to feel as though they are merely a guest in your home. One valuable way of achieving this is to remove family photographs and other personal effects on open days.

To maintain the cleanliness aspect of home staging, consider the various smells that get trapped inside:

• If you smoke, don’t – not inside anyway.
• Maybe keep pets out of the main living areas during your marketing campaign.
• Open the windows before your open home – let the breeze though.

You must ensure everything in your property is in working order – and that there is no obvious damage in your house. Even minor cracks on tiles and a dripping tap in the bathroom are likely to put off, or at the very least not impress, your prospective purchaser. Think of your inattention to minor repairs as equating to a quantum diminishment in the value of your property – far in excess of what an actual repair would cost.

If any home surfaces require freshening up – do so. You are likely to recoup far more than the cost of a can of paint for the front door or garden wall than if you leave them in their own state of tiredness. Never assume that a buyer will ever think that a house only needs a lick of paint here and there.

Be careful with furniture. Less usually means more – and if a large amount of the furniture you do have is severely dated, perhaps consider renting some during the course of your marketing campaign. If you like the idea of a personal touch being present in your home while you’re trying to sell it, the garden is a good place to portray it – flowers seldom offend and planting boxes on decks, porches and near exterior doorways often look universally stylish.

On an open day itself, don’t forget the masterpiece finishing touches:

• Light the fire if it’s winter.
• Nothing beats the smell of fresh bread cooking in the kitchen.
• Possibly some jazz or other mood music in the background will be helpful.

Remember, you’re trying to create a difference from others that may well be the same as yours. Excellent home staging may not only sell your house, it might create a premium price as well.



*Article by Geoffrey Lush

by AliceM | 03/03/2010

http://experts.realestate.com.au/selling/selling-news-home-staging-your-home-the-pros-and-cons

Kylie's Tip of the Day...Long Weekend Opens

Not everyone goes away, give them something to do...like buy your house.

10 Qualities to Look for in an Agent

What should you look for an agent? If an agent doesn’t check out in the affirmative to any of the following, they are probably not worth considering.

1. Good agents can give you a realistic guide on what you can expect for your property. You probably have a sale figure in mind; however, your agent should honestly inform you how realistic this figure might be based on market conditions and local supply and demand.

2. The agent you choose should have excellent advice regarding how best to promote your property for sale. Their knowledge of local communication channels and how to obtain greatest coverage for your property should be unparalleled in the area.

3. Your agent should be able to present your property in the best possible light to potential purchasers and also be able to advise you on the best presentation techniques.

4. The agent should have excellent negotiating skills as a basic prerequisite.

5. Never forget that the agent always works for you as the seller – not any prospective buyers.

6. Also, a good agent will advise you what to do, rather than tell you what to do.

7. Keep the attributes of reputation, experience and specialisation at the forefront when considering your agent options.

8. Part time agents tend to not be a good option. Full time agents will always be more attentive.

9. A good agent always has the highest ethical standards.

10. A good agent will assist with contract exchanges and advise regarding any potential legal complications.


*Article by Geoffrey Lush

by AliceM | 03/03/2010

 

http://experts.realestate.com.au/selling/how-to-10-qualities-to-look-for-in-an-agent

Inspiring Design for Every Room

Just CLICK to begin.

http://www.realestate.com.au/home-ideas/

Kylie's Tip of the Day...Beware Overpricing!

In a buyer's market overpricing is the kiss of death!

What is a Buyer's Agent?

Buyer’s agents are licensed professionals that specialise in searching, evaluating and negotiating the purchase of property on behalf of the buyer. They do not sell real estate. The key difference between a buyers’ agent and a traditional selling agent is who they represent. A buyers’ agent works exclusively for the buyer, whereas the selling agent works for the vendor (seller). By law an agent cannot act for (and accept a commission) from both parties in the transaction.

Most buyers’ agents offer at least two levels of service:

• The full search service, whereby the buyers’ agent actively searches the market and shortlists properties meeting the specific criteria of the client and then evaluates and negotiates the recommended property.
• The negotiation or auction bidding only service – this is where the client finds the property and engages the buyers agent to evaluate and negotiate a private treaty or bid at auction.

Using a buyers’ agent to purchase real estate is becoming more widespread throughout Australia as investors and home buyers understand the benefits they provide. A professional buyers’ agent can provide you with all the knowledge you need to make an informed decision about the value of a property without all of the sales “hype” often generated by sales agents and glossy brochures.

Many think that using the services of a buyers’ agent is too expensive. This is not the case. Buyers’ agents can save you money, time and stress, whatever your budget. In most cases they will save you the fee and provide a whole lot more benefits. In the US, over 50% of the population use a buyers’ agent to assist in the purchasing process.

Buyers agents can give you the upper hand by their understanding of the auction process, bidding tactics and by not being emotionally involved in the auction or negotiation process. For investors, the buyers’ agents fees are tax deductible. Buyer’s agents generally charge an engagement fee before they begin the search. The fees are either a flat fee or a percentage of the property purchase price.

An important question to ask a buyers agent is whether they are truly “exclusive” or “independent”. If they accept sales commission from vendors or developers then they cannot be classified as “independent” as they are acting in the interests of the seller.

Here are 7 key reasons why you should use a buyers’ agent:

1. Gain access to a wider choice of properties (many not even advertised) via the contacts/ network of the buyers’ agent
2. Leverage your time – instead of searching the newspapers and internet every weekend, get someone else to do the hard work short listing suitable properties.
3. Use a professional negotiator to obtain the lowest possible price
4. Eliminate the stress and frustration of being shown inappropriate and unsuitable properties by selling agents that don't listen to the buyers’ needs.
5. Have an independent professional buyers' agent working on your side
6. Source the right type of property in locations with good prospects for capital growth
7. Help investors build their property portfolio faster by buying in growth areas.

Buyers’ agents will also ensure you don’t pay too much by providing background information about the true value of the property you are seeking to buy, so that you can make an informed choice. If you choose a licensed, professional buyers’ agent, the saving you make on your next property could run into tens or hundreds of thousands of dollars, could be less stressful and is likely to take less of your precious time.

Find your Buyer's Agent Now!

Rich Harvey
CEO and Founder
www.propertybuyer.com.au

http://www.rs.realestate.com.au/cgi-bin/rsearch?a=v&t=as-bag&id=659

Spring Selling Tips

When you've just lived through a long and cold winter, the appearance of the sun and warmer weather often sees people turn their thoughts to the possibility of selling their homes. These helpful tips show you how to make your house stand out.

Traditionally, spring – with its general air of positivism - is seen as a good time to sell.

So what tactics and strategies should vendors consider when placing their property on the market?

As Adam Docking of M J Docking Real Estate in Melbourne notes, spring is the time when buyers begin taking note of the garden again. We start to reappear from the bleakness of winter and people naturally start looking for happy colours. Everything looks better in spring; people’s attitudes change and they feel like doing more in the warmer weather. What better place to reinforce a brighter emotional feeling than in the garden!

This sentiment is echoed by Vicki Gardiner, director of Gardiner McInnes Estate Agents, Warrandyte, Melbourne, who says coming into spring and summer, buyers should focus on the presentation of outdoor living spaces which often look a bit tired after the winter months.

"Small touches can instantly lift these areas. Consider adding potted colour, clearing up leaf litter from paths and paved areas or updating your outdoor furniture.”

To see how homes near you are performing - check out the latest auction results

Furthermore, she says, in spring, you can take advantage of the lighter afternoons, and spring garden views, by opening blinds and curtains during open-for-inspection sessions.

"Don’t forget to prune any overhanging branches away from your windows.”

Ms Gardiner compels vendors to concentrate on price, presentation and marketing in their selling campaign. When the market is slower, eliciting a strong emotional response from potential buyers so they can connect with your home is vital.

Mr Docking adds that spring is actually a practical time for many people to buy and sell houses.

"Apart from the more pleasant change of climate, both vendor and seller can complete a property transaction knowing that settlement will be finalised in the Christmas/New Year period.”

Do you need to find an agent in your area?

Knowing that you’ve moved into a new property, or out of an old one, at the start of a new year means you’re ready to start with many other aspects of your life as well. For families, this could mean being ‘in zone’ for the children’s new school at the beginning of the academic year.

The spring market can often be a frenzy and now it is all go, especially in the under $500,000 market. So, make sure your home sticks out from the others.

Good luck with selling!

by AliceM | 03/03/2010

http://experts.realestate.com.au/selling/how-to-spring-selling-tips

How to Spot a Real Estate Bargain

A heads-up on property bargain hunting. These tips could bag you the deal of the year!

Everybody likes to get a bargain. Whether it is everyday goods, such as food and clothing, or more expensive items, such as cars and real estate, there are bargains to be had.

It is relatively simple to spot a bargain when shopping for food, clothing or even cars as all you need to do is compare prices and brands. It is not so easy when looking at real estate, but the rewards when you do find a good deal can be tremendous.

There are five tips to consider when looking for real estate bargains: 

• Search the public trustee, deceased estates and mortgagee sale websites
• Recognise any renovation potential
• Understand the development potential
• Ask the right questions
• You need to keep an eye on the properties for sale in your area and, in particular, the time they spend on the market. The longer a property has been for sale, the more chance you have of picking up a bargain.

However, this is not always the case. A property that has been on the market for a long time but whose asking price has not changed is unlikely to be a bargain. This indicates that the vendor is not willing to budge on their price. On the other hand, if you see that the asking price has continually dropped over a period of time, your eyes should start to light up as this is a sign that the vendor is flexible and could be willing to negotiate as they have to sell.

Search the public trustee, deceased estates and mortgagee sale websites
When people are forced to sell, due to a death or mortgagee sale, the property can often sell for less than it would under normal circumstances.

A deceased estate can be off putting to many potential buyers. The property is often not presented in its best state as it may have been vacant for a period of time and the house has a musty smell, the garden is overgrown and the faults of the house are very evident. In the end, the sale price will be determined by how quickly the beneficiaries are keen to receive their money.

In a mortgagee sale, the bank has a duty to try and achieve the best price they can. This is so that it can recoup its money and then the vendor can keep any funds that are left after all debts have been paid. However, in a buyer’s market, which is what we are currently experiencing, it is the buyer that will determine the final sale price, not the seller.

As mentioned earlier, forced sales will often result in properties selling at lower than expected prices. However, low prices don’t always mean that it is a good buy. For example, buying bruised fruit at half the normal cost doesn’t represent a bargain. Nor does buying imitation top brand names at a fraction of the real cost. Buying something cheaply doesn’t always represent good value.

Recognise any renovation potential

Bargains are often bought because other people don’t see the potential of the property. Most people will walk through an old house and only see the peeling wallpaper, ugly carpet and an old fashioned kitchen.

Renovators will see an opportunity to paint the walls, rip up the carpets, polish the floorboards, expose the authentic fireplaces and put in a modern kitchen. Many people choose not to see the opportunity as they don’t know how to renovate and think that the costs of a makeover are too prohibitive.

Understand the development potential 

Most people will drive by a property and see a run-down house on a large block of land. Those who are familiar with property development and know the rules and regulations of the local council will see a unit site.

To the novice it may seem daunting at first to contemplate building units, but it is just a matter of confidence. Knowledge will build your confidence. You only need to know a little more than the rest to be able to pick up a bargain.

Ask the right questions

“Why are they selling?” is the best question you can ask. If they don’t give you an answer, continue to ask open-ended questions. An open-ended question will force the sales person to give you more than just a “yes” or “no” answer.

For example, you will gain a better insight into what price the vendor will accept if you ask: “If I make a cash unconditional offer with a short settlement, what figure do you think they will accept?” Rather than: “Will they accept $350,000?”

Article by The Property Professor, Peter Koulizos

http://discover.realestate.com.au/buying/how-to/how-to-spot-a-real-estate-bargain

Kylie's Tip of the Day...Preventing Lost Mail

Give your forwarding address to your agent before settlement.

Property Bought with the Heart not the Head

Homebuyers need to leave the emotional stuff behind and think like a hard-nosed property investor in order to maximise profit. It's fine if you're buying a dream family home, but if you're a property investor it's your noggin that's needed most.

Investors must think differently than a typical home buyer. All their decisions need to be made with a view to making the most profit or income on the property, rather than impressing their mates or relatives.

Here are five ways to put the emotional stuff behind you and think like a hard-nosed property investor:

1. The old saying about buying the worst house in the best street is a load of garbage. You don't want to buy a property that needs months of renovations before tenants move in and start paying you an income. Unless it's your investment strategy to do up dodgy homes, aim for something that is low maintenance and will be attractive to tenants.

2. Be bland when buying. There's little room for fluoro orange feature walls in an investment property. Neutral colours will make it much easier to rent out because as furniture can easily be matched. Remember that you're not buying an investment property to suit your own tastes, but something that will be tasteful to most of the population. The average tenant won't pay a lot extra if the home has a spectacular water feature and swimming pool in the backyard.

3. Match the property's location with your prospective tenants. If your target tenants are likely to be students, make sure it's close to public transport. If it's a family, there should be schools nearby. It all comes down to researching the area and trying to understand who lives there and the services they need.

4. View it as a business. This one comes from author and buyers agent Patrick Bright, who says investors should evaluate their property every six months and ask the tough questions. Does it need extra investment in renovations or improvements? Do the tax benefits still work for you? Are you still getting the best finance deal? Is it delivering you the best possible investment return? Real estate investment is not fire-and-forget.

5. Have a long-term plan. Most of us don't have a long term plan for what we will do with our own home (that said, we still tend to move every five or ten years and pay exorbitant stamp duty costs when we do). But an investor needs to think about their exit plan before they buy, and write down that plan.

Property investments will cause headaches and go through flat spots like now, but if you treat it like a money-making purchase and remove emotion, dealing with that will be much easier.

by Anthony Keane | news.com.au

 

20/06/2012

Anthony Keane is editor of Your Money, which appears in News Limited newspapers on Mondays.

http://discover.realestate.com.au/buying/investing/property-bought-with-the-heart-not-the-head