Beat the Spring Sale Rush

When it comes to selling in spring, many vendors are reluctant to make the first move. Whether they're holding off to see how well the market is travelling or being meticulous in preparing the house for sale, many seem to put the signboard up at the end of spring rather than the start.

The chairman of the Ray White Group, Brian White, says November is traditionally one of the company's busiest months (along with March). ''If we don't break a sales record in those months we're not going to break a record,'' he says.

Figures from Australian Property Monitors show that for four of the past five years, November has been the busiest spring month for property listings. And with some analysts predicting a slow start to the season, this year looks like being similar.

But there are several reasons why it's better to sell a property earlier in spring rather than later.

Perhaps the main reason for trying to sell early is that there is less competition from other vendors. The principal at PRDnationwide in Bexley North and Ramsgate Beach, Frank Mazzotta, says with fewer properties to choose from, buyers are often keener, and tend to overlook negative aspects of a house, than if there is a lot of choice. 

There are generally more buyers fighting for each house and this translates to more competition, which in turn drives prices higher.

''I advise clients that when you're putting a property on the market, the best time is when you've got the least amount of competition [from other listings],'' he says.

An associate director at Holgate First National in Lane Cove, Scott Henry, agrees. Last November, there were 26 houses for sale in his area with a price tag between $1.4 million and $1.7 million and this meant buyers were choosy.

''Vendors had very little opportunity to achieve the maximum price because buyers were saying, 'Well, here's my offer; if you don't take it there are 25 other properties to choose from,''' he says.

Many people who sell during spring also want to buy then, White says. To do both, they should be selling as soon as possible so they can also become buyers later in the season.

The same holds true for those wanting to buy and then sell. If people buy a property in September, they have ample time to put their house on the market and settle before Christmas, Henry says. ''We've really impressed upon people that August and September are better than October and November [for selling],'' he says.

This is borne out by APM figures showing that for the past five years, auction clearance rates in September and October were at least as good, if not better, than for November.

Being able to move in before Christmas is also a strong motivation for many buyers, says the director of Spencer and Servi First National in Surry Hills, David Servi. Not only is it less stressful but it is more convenient.

Solicitors and conveyancers traditionally close for a long stretch over the holiday season ''so there's a period up to January 10 when it's hard to transact any business at all'', he says.

Spring might be a time when sellers get inspired because the weather is warmer, the garden is greener and the house less damp. But it's also when buyers shrug off the gloom of winter and start thinking about a new house.

White says spring boosts the spirits of buyers as well as sellers and this translates into sales - his company sells between 10 per cent and 20 per cent more properties in spring. ''Psychologically, everyone gets lifted in spring,'' he says.

But the first few weeks of September often flush out particularly enthusiastic buyers, those who have been waiting for a good collection of properties to choose from and have a window of several Saturdays between the end of their children's winter sports and the start of summer ones.

The Sellers

For Lee-Fay and her husband, Tim Baynes, selling their two-bedroom terrace in spring is a necessity. Their second child is due in January and before then they would like to have settled into a bigger house.

The ''for sale'' sign went up last weekend after they were advised by LJ Hooker Newtown agent Poh Ling Ee that early spring was the best time to sell and buy.

''We needed properties on the market so that we could sell while people were looking,'' Lee-Fay says, ''and then buy when people were selling''. They bought their Newtown terrace about 3½ years ago, before they had their 21-month-old daughter, and watched as it gradually became more cramped as she got older.

Now, with another child on the way, the couple, who are both researchers - she at the University of NSW and he for the CSIRO - want to find a bigger, three-bedroom house in the same area.

They are hoping their house, which they bought already renovated, will sell for more than $720,000.

''It's just not big enough for four people, especially when two of them are very messy,'' Lee-Fay says.

The Buyers

Brian Murchison has just started looking to buy a house and is confident of finding the right place soon.

He says he was convinced by friends to begin his house-hunting at the start of spring because there were more houses on the market but, compared with later in the season, not as many buyers to compete against.

''My friends said if you're going to do it, do it now in early spring because there's fewer people looking,'' he says.

The 46-year-old catering manager had been living in an apartment in Surry Hills for the past seven years and decided this year it was time to upgrade to a two-bedroom terrace - up to about $780,000 - with a bit more room and an outside area for a dog.

He is looking in Redfern because it is close to the city and his old haunts, and is an area that's being revitalised, including the revamp of Redfern Oval.

He sold his apartment in April and has already seen several places, one of which is in Phillip Street (pictured) and is being sold through Charles Touma of BresicWhitney Estate Agents.

Get Ready

If you want to sell this spring, agents say it is not too late. But you need to act quickly: tidy the garden; consider repainting, or at least give your home a good clean; and get rid of excess furniture and odds and ends.

PRDnationwide's Frank Mazzotta says if all these things are done, a house can be put on the market in a couple of days. ''As long as you've got a contract from the solicitor, we're allowed to start marketing it,'' he says.

However, others say between one and two weeks is more realistic to allow for photographs, floor plans, a signboard and then newspaper and internet advertisements to be booked.

Buyer's agent Rich Harvey from propertybuyer.com.au says the change in season tends to bring a change in buyers' attitudes - more hopeful and optimistic - and this rubs off on sellers.

''Vendors who come to the market fairly early in spring actually do pretty well because they tend to get the most motivated buyers,'' he says.

A principal at LJ Hooker Strathfield, David Pisano, thinks the beginning of spring is when many buyers start looking.

This spring should be no exception, he says, because of speculation that interest rates will remain steady, if not go down. ''We always recommend being the first cab off the rank in the first week in September,'' he says.

And while buyers in early spring are keen, many early offers on houses are often good ones. Statistics from Ray White agencies show that half of all vendors who sold over the past eight months had rejected a higher offer before the eventual sale.

''We find that quite disturbing,'' White says, adding that it is a difficult trend to reverse because most people see the first offer on a house as a stepping stone to a better one. These figures show that ''early offers tend to be the best ones'', he says.

Read More: http://news.domain.com.au

Positive Outlook for Housing Market: RBA

Last month’s meeting of the Reserve Bank of Australia (RBA) board found building approvals for both higher-density and detached dwellings had increased.

There was generally a more positive outlook with regard to dwelling investment, according to minutes from the RBA meeting.

Following the board's decision in May to reduce the cash rate target by 25 basis points, most lenders in Australia had subsequently lowered their standard variable housing rates in line with the reduction in the cash rate.

According to the board, this had “resulted in lending rates for most households and businesses reaching or approaching historic lows”.

There were also signs the appetite for borrowing in the household sector was picking up, and the housing market generally appeared to be improving, as the effects of the most recent and earlier reductions in the cash rate worked their way through the economy, the board heard.

Members observed that the effects of low interest rates had been evident in a range of housing market indicators.

In addition, loan approvals had grown more strongly in recent months, including for new housing, and auction clearance rates were well above average in Sydney and had picked up to be a bit above average in Melbourne.

The meeting was told while measures of dwelling prices had been relatively flat over recent months, they were still higher than the previous year.

Read More: http://www.apimagazine.com.au

House Prices Picking Up

AUSTRALIAN house prices reached three-year highs in the June quarter and look set to keep climbing.

National median house prices rose by 2.8 per cent in the June quarter - and 5.4 per cent in the year to June - a level of growth not seen since March 2010, the Australian Property Monitors quarterly housing report shows.

It was the third consecutive quarterly rise for national house prices.

Unlike the price boom of 2009 and 2010, buying hasn't been driven by the Federal Government's first-home owner boost.

APM senior economist Andrew Wilson said the patchiness seen in the housing market last year was diminishing.

"The usually quieter winter market is set to be one of the hottest on record,'' he said.

"Unlike 2009 and 2010, buyer activity and prices growth will be generated by underlying local drivers.

"Buyer activity is set to accelerate through the remainder of 2013, with market momentum and prices clearly on the rise.''

The lowest interest rates in decades, rising consumer confidence and generally solid economic conditions had boosted buyer activity over the first half of 2013, Mr Wilson said.

Sydney, Canberra and Perth recorded their highest ever median house prices over the June quarter.

Melbourne recorded the strongest growth for the quarter with a rise of 5 per cent, and 6.1 per cent for the year.

Read more: http://www.news.com.au

10 Creative Ways to Make your Old Kitchen Feel Modern

Whether your kitchen is a fixer-upper from decades ago or your laminate countertop and linoleum floor have seen better days, it may be time to modernise your kitchen. With all of the new ideas out on the market from creative uses of colours, modern appliances and innovative materials there is a world of kitchen amenities to bring your kitchen into the present day of modernisation. If you are trying to sell your home, or if you plan on staying in your home for generations to come – use these 10 creative ways to make your old and dull kitchen feel new and inviting once again.

1. Replace old finishes with modern innovative alternatives

Older kitchens were made with materials that were popular decades ago, but with manufacturer’s coming out with innovative materials there is no reason not to try them out in your updated kitchen. Metals are a hot trend in kitchen design from chrome, brushed aluminum, stainless steel, nickel and copper – try these materials out in your cabinetry hardware, pendant lighting, and range hood options.

2. Change out old flooring with wood or resilient materials

Flooring is one of those areas of your kitchen that is often forgotten but consumes your entire kitchen. While you may think it won’t make a difference try switching from your traditional vinyl or linoleum flooring to a resilient material such as wood, tile, or stone. These materials will last longer as well as boost the value of your home. In recent years ceramic tile that looks just like hardwood has become popular as well as porcelain and slate.

3. Remove upper cabinetry for a sleek kitchen

In older homes the trend was to include walls and walls of upper cabinetry to house dishes and cookware and often times these cabinets consumed the eye. If you want to increase the visual space of your kitchen, consider removing the upper cabinets and just leaving the lower ones. This frees up the wall for adding color, or even attaching floating or open shelving for a few decorative items and dishware. You will be surprised how modern your kitchen will feel once your upper cabinets have been removed and the human eye will enjoy the space too!
 
4. Change countertops to innovative materials

Countertops are another material that consume a large portion of real estate in your kitchen. The kinds of countertop surfaces options out there are mind boggling from solid surfacing varieties that consist of resin, polymers to natural stone varieties such as marble and granite, there are a plethora of options in the countertop market. Over the last few years designers are becoming more creative and are using materials that used to be considered only for structural purposes now for countertops. Concrete, brick, tile, and aggregate options bring innovative appeal to your updated kitchen.
 
5. Incorporate modern seating inside the kitchen

Your kitchen is most likely the busiest area of your home. They call it the heart of your home due to its traffic as well as bringing the family together for family meals – the kitchen is the “pulse” of your home. To modernise your old kitchen, consider bringing seating from the dining room into your space. Whether you choose countertop stools and seats at a breakfast bar or you opt for a bench at a window side table, seating can make your kitchen have a whole new appeal. Busy families with children doing homework to parents entertaining friends while cooking make seating essential in your modern-day kitchen.
 
6. Replace appliances with energy efficient ones

Let’s face it – we are in the green age of saving resources and your kitchen is a great place to start. Energy efficient appliances should replace your old ones to bring modern styling into your kitchen and to save water and energy from your household expenses. Consider replacing plumbing fixtures as well – low flow kitchen tapware can save water and with the new styles available from kitchen plumbing manufacturers you will love the “touch free” technology and temperature sensor options that are available. Remember updating your kitchen shouldn’t only be for aesthetics; it should help save you money and the Earth’s resources.
 
7. Paint cabinetry with modern colours

For homes that love their current kitchen cabinets but would like to add modern appeal - why not add color? Painting, staining, and even replacing cabinetry doors with new and modern detailed ones are a great option for homeowners on a budget. There are plenty of faux finishes you can try while painting kitchen cabinets and who doesn’t love a great do it yourself project in the kitchen? From distressing doors to paint glazes and stains, you will be surprised how your elbow grease and some additional colour will transform your old cabinetry into new.
 
8. Install new lighting options

Once you have modernised the major components of your kitchen, don’t forget the lighting! While kitchen lighting can be very minimal it is essential for safety, ambiance and versatility of your kitchen. If you have been suffering with one overhead ambient lighting fixture, look to recessed lighting or downlights for a modern illumination source. Consider installing a dimmer switch for versatility in mood and illumination strength while entertaining, cooking, or just relaxing for a midnight snack! Pendant lighting over a kitchen island, under cabinet lighting to illuminate countertops, and chandeliers are all becoming great options for updated lighting sources.
 
9. Adding decorative elements

While you may not think about it, your kitchen is a great place to add decorative elements to bring a sense of you and your lifestyle into your kitchen. For many homeowners plant shelves on top of cabinets allow area for plants, sculptures, artwork and other decorative items. Built in display shelves below your kitchen island can display kitchen memorabilia, your favorite cookbooks, or display an heirloom set of china passed down through generations. Add a vase of flowers, a fresh bowl of limes or lemons for a shot of colour and bring a sense of you to your modern kitchen with decorative additions.
 
10. Enlarge your kitchen – knock down walls

For many older kitchens the compartmentalized and boxed-in feeling of kitchens built generations ago is very common. If you’re looking to open up your kitchen and share the view with an adjacent dining room or living room – consider knocking down some partitions! This method works well for non load-bearing walls that don’t carry any structural value. Your kitchen can grow in size or it can just get opened up to other areas of your home. While your kitchen could look fabulous as-is, what would it look like without that bothersome wall? If you’re unsure if this is possible – consult a structural engineer or architect to see what possibilities there are for your kitchen.

Read More: http://freshome.com

10 Things Home Buyers Hate About Your Home!

You’re in the market for a new home, whether you need more space or less, you must first sell your present residence. One might think that the slow housing marking would potentially have buyers pounding at your door, but this is not necessarily the case. Prices are steady at the moment and seem not to be plummeting any further. This is good for a buyer and can be good for you, however, home buyers are smarter and leerier these days. They are less apt to make hasty decisions and less apt to buy out of their range, which is partially what contributed to the great housing market collapse. Houses are selling these days, but how quickly they sell is really up to you, the seller, and your agent. The houses that move are those that are priced well. Today’s buyer is savvy and has done his research. Buyers also want a turn-key home that is immediately ready for them to move in and unpack. What they don’t want are…

1. Bad Smells

Nothing is more of a turn-off than walking into a house that has a smell. Before you sell your home walk through with a friend, an agent, or someone you can rely on to give you an unbiased opinion. You will want to get rid of the source of any bad odour as soon as possible. Pets are big culprits, especially cats. If you have a cat, kitty litters need to be cleaned as often as possible and kept, if possible, in a remote or out of sight location. Wall to wall carpeting can harbour bad smells as well, especially if pets are present in the home. Clean all carpets professionally prior to listing your home. If you have a fan above your stove get in the habit of using it regularly to keep from cooking foods with particularly strong odours, such as fish, the evening before an open house or a showing. Consider purchasing a dehumidifier to clear the air of moisture and odours. If you can pop some chocolate chip cookies in the oven, or maybe an apple pie now that it’s winter. While some smells are offensive to home buyers, some are very inviting!

2. Dirty house, especially bathrooms and kitchens

Having a house on the market is tough and hard work, especially when you have young children at home. If you don’t have time to clean your house daily, and really, nobody does, concentrate on your kitchen and bathrooms. Make sure floors are vacuumed and devoid of spills, crumbs and dirt. Make sure counters are wiped clean and that there are no dirty dishes in the sink. Don’t hide them in the oven for a quick remedy, house buyers will look in your oven and any drawer or cabinet that can be opened! Keep a set of clean, dry towels on hand for the kitchen and bathroom for showing purposes.

3. Messy house

This is really an extension of the last point. The average home buyer has a hard time looking past your clutter and mess. Simple, easy tasks, can make all the difference. If you have children you know that clutter happens. I am a huge fan of wicker baskets. They are inexpensive, efficient and look nice in your home. Invest in a few wicker baskets as a quick way to stash toys when you don’t have time for an overhaul. Laundry is perhaps the hardest thing to keep on top of and is the most time consuming. If you don’t have time to wash, fold and put away your laundry on a daily basis, pick up a couple more wicker baskets to stow away clean, folded laundry so it doesn’t look like an eyesore. In the kitchen and in the bathroom clear away bottles and containers. Bowls of fresh fruit and vases or pitchers of fresh flowers not only look pretty but often make a room smell lovely.

4. Poorly lit rooms

No one wants to enter a dark house, especially someone who wants to buy your home. If a house is too poorly lit they may tend to wonder what you are trying to hide. Replace dim or burnt out light bulbs with high efficiency, bright bulbs to brighten up your space. If need be, pick up a few stylish lamps that will not only brighten your home but can add to your home decor. If you have big windows, take advantage of them. Make sure they are clean and make sure that drapes and curtains are not blocking the natural sunlight. When it comes to selling your room, lighting really can be everything.

5. Loud Walls and Busy Wallpaper

Shhhhhh!! Most likely the person who ends up buying your home will not have the same taste and style you do. They say one decorates their home for living, and one should re-decorate their home for selling. When you sell your home, you must remove yourself and your history from the overall picture. A home buyer wants to be able to envision him or herself in your home, not wonder about you, your lifestyle and your family. You don’t want to distract from the task at hand which is to sell your home. Tone down those bright and cheery colours and save them for your next home. Instead, use softer, more neutral tones like creams and off-whites that can make spaces like lighter, airier and brighter. If your home is covered in brightly patterned wallpaper you ought to give serious consideration to removing that as well. Potential buyers may be deterred by the paper knowing what a colossal a nuisance it is to remove it.

6. Unkempt yards, untrimmed hedges

Nothing is more unwelcoming than pulling up to a potentially Haunted House! Make sure your yard is well mowed, all bushes and hedges are trimmed. If you can add or fix up your landscaping with fresh or potted plants. The outside of your home is the first thing that will be seen. Let it be a great reflection of you and a great indication of what’s yet to be seen on the inside.

7. Wall to wall carpeting

If they've seen better days, please remove them. These days hardwood floors are very popular, even if they aren’t in the best of shape and will be much more appealing than tired wall to wall carpeting. If it's dirty or simply can't be removed or replaced, please have it professionally steam cleaned.

8. Neglected entryways

This is the first room everyone sees as soon as they pass through the front door. This is your greeting card. Let it be warm, friendly and welcoming. A simple bouquet of flowers, it need not necessarily be elaborate, makes a lovely statement. Clear out cupboards and robes, and make sure that stray shoes and other items are neatly put away.

9. Your pets

Many people are allergic. Many children are scared. Please keep your pets away from your home whenever possible.

10. You!

I’m sure you are lovely and you know your home like no one else, but a potential home buyer simply does not want you there, or anywhere nearby. If you remain at home they won’t stay, they won’t linger and they won’t take their time to look around to get a proper look and feel. You will not be doing yourself any favours by remaining at home. Leave the selling to your agent, that’s why, after all, you’ve hired him (or her!).

Read More: http://freshome.com

How to Get Rid of Unpleasant Odours in Your Home

There’s nothing less inviting than walking into a home with a bad smell. There are many things that can contribute to a home’s less than rosy scent. Pets, smoke, mold and mildew, and cooking can create odours that permeate the air and linger around.

 

These odours will eventually penetrate into the walls, carpeting and furniture. I will share some simple steps to help prevent and remove these potentially offensive odours.

• Open your windows! The best gift you can give your home is the gift of fresh air. Whenever possible open the windows and let the air flow through. Even on a cold day, open your windows for a few minutes. Fresh air quickly and naturally removes airborne odours like those from cigarette smoke and cooking.

• Vacuum. Regular cleaning of floors, carpets and upholstery such as couches and curtains will help keep your room smelling fresh. To carpeting you can add a room deodorizer, or baking soda. Simply sprinkle onto rugs and carpeting and let sit long enough to absorb the oil and dirt before you vacuum.

• Wash. Clean hard surfaces regularly. Glossy paint, hard flooring, countertops, sinks and tables with soap and water or a mild cleaner that is appropriate for the surface being cleaned. Using a mixture of equal parts white vinegar and water, you can create your own cleaner that is environmentally friendly, inexpensive and effective for all surfaces. Lemon, substituted for the vinegar, also has antibiotic properties. For those areas where odours can really accumulate, such as bathrooms and kitchens, a cleaning solution may be more effective in removing those really tough odours. Bleach whitens and it is also effective in killing and removing mold spores.

• Bright ideas. Clean light bulbs. Dirt and oils can accumulate on lightbulbs and the heat accentuates these odours. From time to time with a lightly damp cloth, wipe the lightbulb clean. Do be careful to not let the damp cloth touch the metal part of the bulb.

• Filter it. Clean and change your filters in your heating and cooling systems. This will not only improve air quality,but it will make your heating and cooling systems much more efficient. Also be sure to check and replace the filter in your vacuum cleaner.

• Repaint. When it seems that you have tried everything and nothing seems to work, repaint your space. The fresh paint will cover the old paint and get rid of the bad odours associated with it.

 

Keeping on top of it: a room by room guide

 

Living areas

 

Bedroom, family and living rooms are fairly simple and straightforward to keep clean and tidy, and therefore odour-free. Regular vacuuming and dusting should be sufficient. If you are a smoker, someone in your home is a smoker or have entertained a smoker, making sure that the room has plenty of ventilation is key. Open windows when necessary and consider purchasing an air purifier.

 

Fresh flowers always help to eliminate odours and candles can temporarily mask smells too. Bed linens and upholstery should be washed and laundered on a regular basis. Curtains should be cleaned as well. If an odour persists in your rugs or carpeting, it may be time to replace them. Walls, if painted in a semi or high gloss, or covered with wallpaper, should be wiped down with a lightly soapy, damp sponge from time to time.

 

Kitchens

 

Kitchens, with all their traffic and uses, are rooms where odours accumulate and trap. Cooking leaves a film of light grease in the air that clings to walls, light fixtures, floors, countertops… well, everything really. If you have an exhaust fan, use it. Use it regularly when cooking and keep it on for a while after cooking. Keep your countertops clean and wipe them down with a homemade or store bought cleaner at the end of every day. Floors should be vacuumed daily as well, especially in the homes with children and pets. Crumbs and pet hair are not only unsightly but will be tracked through the rest of the house.

 

Wipe down the stove-top after use as well as anything that might be on or near it. It’s impossible to avoid cooking splatters. At the end of the day wipe down sinks. Natural, or products made with bleach will kill all harmful bacteria. If your dishwasher has an odour place a cupful of vinegar on the top rack and run a cycle. Do keep a container of baking soda in the refrigerator to absorb odours, and change replace every couple of months. Wipe down doors and shelves on a regular basis as well.

 

Bathrooms

 

Due to the heavy moisture content in these often small rooms, mould and mildew have a tendency to grow here. Keep bathrooms ventilated when using the shower or bath. Ventilation, in this room, is perhaps the single most important thing one can do to keep this space odour-free. If you don’t have a fan, then be sure to keep the windows open. Wipe down the sink and bathtub on a regular basis, using bleach to keep the mildew at bay. Wipe down walls with a damp sponge, mop the floors and keep the toilets clean. If you have a bathroom that doesn’t get much use, say in a guest room, do go in and run the water, flush the toilet and open the window from time to time. Avoid using those plug in room fresheners, they tend to be overwhelming and often are worse than the odours they are trying to mask.

 

Some people keep their kitty litters in the bathroom. Kitty litters have a strong odour, even when clean they emit a strong odour and can permeate the air and affect the rest of the home. If you have a pet, especially at cat, an air purifying system is a must. Room sprays and deodorizers last only a short while. Reeds infused in essential oils are available all over the place in mild and pleasant fragrances. These scents last longer, until the oils are absorbed by the thin reeds.

 

Laundry

 

Dirty socks, sweaty gym clothes and smelly sports equipment can leave this space smelling, well, less than rosy! A dehumidifier will get rid of excess moisture which will help keep the mould, mildew and musky smell at bay. Since dehumidifiers must be emptied place them near the bulkhead doors, sump pump or sink. Washing machines often harbour unpleasant odours. To rid the unpleasant smell place a cup of vinegar or a cup of bleach in the machine and run it one full cycle. Because washing machines tend to be airtight, mildew can form. To prevent this simply leave the machine door open between uses. Lastly, this may seem so basic, but keep on top of your laundry and don’t let those smelly items accumulate for too long. Never toss wet towels into hampers. Let them air dry first before doing so.

 

If your laundry room is on the main level, it's likely a high traffic area. Mud and dirt from sneakers, cleats and boots are often tracked in. To prevent the dirt from being tracked through the rest of the house, keep a broom or a small portable vacuum cleaner nearby. If possible ask children and guests to leave their shoes by the front door, and those that get the dirtiest may want to be kept out in the garage.

 

In short, a clean home is generally a pleasant smelling home. Vinegar and bleach are wonderful cleaning agents that also remove strong odours. If these don’t work, you may want to hire a professional cleaning service to come to your home for a thorough cleaning.

 

 

Read More: http://freshome.com/2013/06/04/how-to-get-rid-of-unpleasant-odors-in-your-home/

Saving for a Home

Buying a house is exciting and life-changing. What's not as much fun is saving for the deposit. But the more money you put down upfront, the less you'll have to borrow.

There are many ways to save for a home that don't require major changes to your lifestyle. With a good savings plan and some discipline, you'll soon have the deposit for your home sweet home.

How much do you need to save?

To get an idea of property prices in the area you want to buy, go to auctions or read the property prices in the newspaper. The property market is always changing so it's important to know how much you should spend on a property in the area you like.

Work out what you can afford

Work out how much you can afford to spend on a deposit and your mortgage repayments. Use the mortgage calculator to figure out how much your monthly repayments will be. Consider buying a cheaper house if it means your repayments will be easier.

Mortgage calculator

Check your loan to value ratio

In thinking about how much to save, it is helpful to check your loan to value ratio (LVR). This is a percentage that is calculated by dividing the amount of your home loan by the purchase price (or appraised value) of the property you want to buy.

Smart tip

Aim to save a deposit of 20% or more of the purchase price of your home to avoid paying lenders mortgage insurance (LMI).

Lenders use your LVR to gauge how risky it would be to give you a loan.

In general, the higher your LVR, the higher the risk that you could have difficulty paying off the loan because of borrowing a high percentage of the value of your property. You may also find it hard to refinance your loan later on, because lenders take LVR into account when assessing a request to refinance.

If your LVR is above 80%, the lender will probably charge you lenders mortgage insurance (LMI). This is a one-off insurance premium to protect the lender should you default on your home loan. If you refinance your loan but your LVR remains above 80%, you may have to buy LMI again which could wipe out any savings you make on interest.

Case study: Jade works out her loan to value ratio

Jade wanted to buy a one-bedroom apartment. She worked out this would cost $350,000 in her preferred area. After doing a budget, she calculated she could afford to take out a $300,000 mortgage, so would need to save a deposit of $50,000 plus purchase costs.

She checked her loan to value ratio:

$300,000 loan ÷ $350,000 property value = 86% LVR

With an LVR above 80%, Jade realised that she would be charged LMI by her lender, so added this into her estimate of costs.

Save until you're home sweet home

Develop a plan to help you save towards your deposit. Use the savings plan to write down your goals, when you want to buy your house and how you are going to save.

Cut back on the extras

The easiest way to see where you can cut back is by doing a budget. Write down your essential costs, such as rent, bills and food, and subtract this amount from your income (after tax). What is left over is what you could potentially save for your deposit. Try to spend as little as possible on non-essential items and put away all your spare money for the deposit.

Give yourself some leeway - if your budget is too tight, it is harder to reach your target. So don't cut out all your non-essential expenses. A good idea is to set smaller savings goals along the way and reward yourself when you achieve them.

Case study: Penny saves her deposit

Penny set herself the goal of buying her apartment in 4 years time. She looked at her budget and identified several ways to save for her deposit. She opened a high-interest online savings account and arranged for a proportion of her salary to go into it each fortnight. She also reduced her expenses by cancelling her gym membership, cutting back her mobile phone bill and limiting herself to one dinner out a month.

After 4 months she had saved $4,000 so she rewarded herself with a dinner at her favourite restaurant. In 1 year she saved almost $13,000 and after 4 years she had over $56,000 for her deposit.

Moving into the family home

While it may not seem that appealing, many young people choose to move back into the family home while they are saving for their first house. Rent is likely to be one of your biggest expenses, so if you can avoid paying this, you could increase your savings very quickly.

Make the most of what you save

Once you have worked out how much you can save, make your money work for you. If you leave it in your everyday transaction account, you might be tempted to use the cash. You will also earn less interest than you would with other accounts or options.

Savings goals calculator

Savings accounts

 

Savings accounts: These have a higher interest rate than transaction accounts
First home saver accounts: These are specifically designed for first home buyers

Investing your savings

Have you thought about investing your savings in shares and term deposits? This is a good idea only if you plan to buy your home in 5 years or more.

Buying a home is a big step and it's easy to be daunted by the large sums of money involved. With careful budgeting, saving money towards your own home is made much easier.

Read More: https://www.moneysmart.gov.au

10 Things NOT to Do When Remodelling your Home

In most homeowners lives there will come a time when remodelling and upgrading amenities will become a necessity.

 

Whether you are wanting to add space to your rooms, upgrade materials, or because your home needs more functionality, taking on a remodelling job could be in your near future.

 

Before you get started, there are several factors to consider. While your favourite home and gardens show may make it look easy in a few days – here are 10 things NOT to do when taking on your remodelling home job.

1. Don’t assume you know how to do every home remodelling project:

Every DIY remodelling project isn't considered equal. Before you decide which project to begin first at your home, determine what skill set and experience you have to execute your project. Many home projects will involve more expertise than others. While you may think all you need to do to replace a lighting fixture is detach the current fixture – you may forget that turning off the electricity to that circuit and other necessary requirements are necessary. Do your homework!

2. Don’t enlist friends and family to help you if they aren't experienced:

In order to save money many homeowners think of hiring or asking their friends and family to help. This can lead to costly mistakes, injury, and damage to important elements in your home. While friends and family can be used for moving belongings, furniture, cleaning and other household “chores” – only let experienced family and friends assist with your home renovation.

3. Never assume that your budget won’t go over your estimation:

While you may have done your homework on how much your materials, labour, and miscellaneous remodelling components will cost, there always should be a budget for going over budget. Many remodelling projects will involve unforeseen circumstances that will not be conveyed until the project starts. Opening up walls can often lead to electrical, structural or plumbing surprises. Remodelling older homes can often unveil mould, pipes leaking or rotting and deteriorating wood. Keeping this in mind, create a lower budget than you think you will need, just in case.

4. Don’t assume a weekend remodelling project will only take a weekend:

Similarly to your budget, time is another resource that is valuable and shouldn't be underestimated. While many home improvement shows are able to complete projects in a 2-3 day time span, there is countless number of hours of professionals working behind the scenes. To gauge how much time you will need will largely be based on your experience level, if you have the proper tools to carry out the project and if you have assistance to execute the job in a timely manner. Take all of these into consideration when planning a time schedule. If you plan to take time off from work, factor in a day or two more on the front and back ends, just in case.

 

5. Don’t overlook local building codes and regulations for your area:

Many homeowners assume that any construction or remodelling they do on their home is fair game. Depending on where you live, the local building codes and statutes may need to be considered. Especially if you are digging outside your home for a pool, pouring a structural foundation, or installing certain electrical/plumbing/mechanical/structural components may need a building inspector to review for safety.

6. Don’t underestimate the power of pictures when hiring a contractor:

If you choose not to do the all of the remodelling project yourself and you hire a professional contractor – communication and conveying your intent is essential. Photographs that you find on Freshome, your favourite magazine or ones that you collect from house ware brochures will help tremendously. Many homeowners forget that contractors will need an idea of exactly what result you’d like in your remodelling job – don’t rely on just your verbal explanation and their interpretation to get the results you are seeking.

 

7. Don’t risk your safety to get a home remodelling project done quicker or for cheaper:

You may think this is self-explanatory but hospital emergency rooms around the world are filled with home improvement accident injury victims that could have been prevented. When working on high areas ensure you have the proper scaffolding, ladders, extension poles, and fall-protection safety wear to execute your job safely. If you are unfamiliar around high power tools, working around electricity and other technical portions of your home, hire a professional for your remodelling project.

8. Don’t start your remodeling project until you have all of the components:

Before you start hammering nails or demolition your bathroom wall, ensure you have all the components before hand. If you are ordering appliances, materials, and other deliverable items – wait until they are delivered before starting your home renovation. While you may be anxious to get started, often times delivery dates get confused and your kitchen or bathroom could be inoperable for days waiting for fixtures to be delivered! Wait until all of the renovating components are in your possession.

 

9. Don’t get excited about your project before you determine the specifics:

 

While you may have seen a great looking kitchen in your interiors magazine that you perused last week or that outdoor patio and summer kitchen are ‘to die for’ ensure you have all the specifics beforehand. Research what the cost of materials, labor – if you hiring a contractor, time it will take, and what preparations will need to take place for this renovation to fruition. Many projects require you and your family to be inconvenienced for days, or weeks at a time, and the possibility of not having a kitchen, bathroom, etc.. or access to an essential room for a period of time could be a reality. Do your homework beforehand to make sure you are up for the entire job before you start.

10. Don’t assume that your dream renovation project isn't possible:

For many homeowners the reality of home renovation may look dismal if cost, time and resources are unknown. Before you table the idea of not doing a home renovation, do your research ahead of time. If you can’t afford your entire remodeling project right now or you don’t have enough ideas to envision your renovation, take your time. Ask professional architects, interior designers, landscapers, and contractors or specialized home design professionals. They often can help you make your dream a reality in stages and at an affordable cost that you may have not known was an option. Your home is a huge investment; take the time to research how to make it uniquely yours with a fabulous renovation project.

Read More: http://freshome.com/2013/07/09/10-things-not-to-do-when-remodeling-your-home/

15 Top Decorating Myths Debunked!

Over the years there were certain rules of thumb that one thought one had to abide by in terms of creating one’s perfect home. But fashion and decor, like the times, too must change to stay current. In many cases what’s old is most definitely new again, unless you’re talking about the rules of decorating. There are two trains of thought here – rules are meant to be broken, or there really are no rules when it comes to decorating anymore…

1. Small rooms must be white, or a pale neutral color

It was once thought that white or pale spaces would brighten up and make a small room seem larger than it is. And while this is in part true, the size and scale of a room have less to do with wall color and more to do with furniture scale and placement. And sometimes one wants to keep a small room feeling small, creating a space that feels warm, inviting, cozy and intimate. There is nothing wrong with a small room that is welcoming and comfortable. The addition of color to walls, in bedding, or in accessories will greatly warm up your small space.

2. Small rooms must have “small” furniture

This is perhaps the silliest of all the myths. Small furniture in your small space will make your home feel more like a dollhouse than a home. A small bedroom may not necessarily have the space for a king-sized bed, but if you can place a queen sized bed in it, do so. Instead of filling the room with several pieces of small furniture, one or two larger pieces will make the room appear bigger. Where space is limited think in terms of style and function. An armoire will make a statement and will serve as better storage than a dresser. An old steam trunk at the foot of a bed adds both storage and an elegant, classic look.

3. You must follow all the “rules”

And we say that rules are meant to be broken! When decorating your home, you need to best represent your personal taste and style – That really should be the number one rule! What is it that you like? What are your favorite colors? Styles? Hobbies? What is your favorite type of artwork? Are you a modern gal or do you prefer the classics? Are you inspired by Asian influences? Are you a DIYer? Your home should be a reflection of your own tastes and passions, not those of someone else!

4. Dark rooms have a tendency to make your space look smaller

Dark rooms can add warmth, texture and dimension to your room. They can add a sense of sophistication, glamour and drama. Dark walls can be a wonderful canvas to work with. A piece of art, when hung on a dark wall, can make a much more powerful statement. It’s less the color of your walls that make your space seem smaller, than the placement and scale of the furniture within the dark walls. Keep furniture proportional to the room – if incorporating larger scaled furniture, use fewer pieces. Keep the room open to create and keep a perpetual flow. Rooms tend to seem smaller when they are cramped and crowded.

5. Dark ceilings have a tendency to make your room look shorter/smaller

As with the above statement, this is not accurate. Colorful ceilings add texture, dimension and drama. They can add a sense of sophistication or whimsy. In a smaller space you may want your walls or furniture in lighter shades than your ceiling, if you opt for a dark shade. But otherwise a painted ceiling should not make your room feel smaller. If you are worried about your space feeling small or not bright enough, you can always add decorative mirrors to reflect and create additional sources of light.

6. Don’t mix patterns and prints!

And we say, why not? There’s no better way to add color, texture and to infuse your own personality than by adding various patterns together. Yes, stripes, checks, florals, plaids can all live together harmoniously! In order to do this successfully, however, you will need to stick to your chosen color pallet. Whether you’re working with blues and grays, pinks and greens or black and white, you absolutely can mix fabrics and patterns.

7. Stick to one focal point

Why? We are not one dimensional and neither are the rooms in which we live. Each living space has four walls, why must only one wall be your focal point? Is your bay window any more or less important than your fireplace? What about your great grandmother’s Picasso that you’ve just inherited? The windows, the fireplace and the grand work of art are all worthy of their own attention. By giving each wall a focal point you’re not only adding texture, and dimension to your room, you’re infusing your own sense of style and personality.

8. Stick to one style

This is like telling someone to stick to one sport or one hobby… or one passion. We are multifaceted and therefore why shouldn’t our homes be the same. What if you’re a world traveler? What if you’ve collected artifacts from Greece, China, Japan and France? To say to you to stick to one style would be to tell you to choose your favorite collected piece, which you may very well have, but there’s no reason that your Japanese sculpture cannot co-exist beautifully next to your antique, classical French table. Or perhaps one lives in a modern style home yet has an extensive antiques collection. Blending, merging or infusing various styles gives your home a layered feel and is perhaps the best way to incorporate your sense of style and self.

9. The most important piece of furniture is your couch

Unless it’s not! Maybe the most important piece of furniture in your home is your dining room table, a bookshelf, an old curio… or maybe it is your couch. But really this depends on your home and your lifestyle. A home boasting a young and highly active family will pay less attention to a couch than it might another piece of furniture. In this case, the couch might be more for function than fashion. The most important piece of furniture is the one you designate as being such. Some may argue and say that the dining room table or the bed is the most important piece of furniture. Now, because the couch is usually a focal point in your room, you will want to get something that is aesthetically pleasing, but if it’s going to be in a room often utilized by young children, you won’t want this to be your big purchase. Save it for when the children have grown!

10. Don’t paint vintage furniture?

Why not? Recycling, or upcycling is becoming more and more popular. It’s environmentally friendly and what better way to breathe new life into something old.  Repainting vintage furniture is the perfect way to add a modern touch to a piece of yesterday.

11. Dining room tables and chairs must match

In so much that fabrics and furniture must match… nonsense! You can absolutely incorporate different styles and textures to your dining room chairs. Do, however, stick to a common color – keep woods light or dark. Or if you do blend the two, and have blended styles consider adding seat cushions that are a unified color or fabric. The goal is to create texture without causing dizziness! By that same token, there’s nothing wrong with using different, coordinating fabrics on the cushions of matching chairs.

12. Children’s art belongs on the fridge!

If you have children in your home I say bring out their art work. Create a studio or gallery wall showcasing your petite artiste! There’s no better way to add color, wonder and whimsy to your walls then with a framed piece of art by your child or children. Sometimes the most simple of paintings can add so much to your room.

13. White spaces are uninviting

White space is what you make of it. White spaces can seem drab, empty and devoid of personality, yet they can be wonderfully tranquil. As we’ve noted above, texture and personality are key to creating a lush space. There are many shades of white, so when opting for a white room be sure to use several shades to add depth and warmth to your space. Ivory colored walls, linen couches topped with off white throws and pillows can evoke a sense of calm and tranquility. White doesn’t have to feel sterile and cold.

14. Limit your use of area rugs

Don’t! Area rugs are a wonderful means of adding color and texture to your floors. Layering them can add a sense of warmth to your room. They can soften hardwood floors and add depth and texture to wall to wall carpeting. Area rugs can tie pieces of furniture and living areas together wonderfully. As with any other fabric, as long as you stay within your color theme, you can layer patterns and textures to form a unified and cohesive, yet complex look.

15. Every room needs a pop of color

You may want to add some color to every room, but it certainly doesn’t mean that this must be done. By using one color in varying shades and tones, take grey for example, enough variety, texture and contrast is creating so that the need to add color is no longer. If you were to stick with just one tone, then you would be best adding some color to create a sense of depth and texture otherwise your space could feel too flat and one dimensional.

Go ahead, break the rules -we defy you to!

Read More: http://freshome.com/2013/07/10/decorating-myths-debunked/