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May 30, 2023
Investing in property? Three things to consider...
Investing in property can be a wise choice due to its potential for strong capital growth and reliable passive income. However, it is essential to understand that property investment is a strategic decision that requires a clear understanding of your goals and objectives. Clearly define your reasons for investing Unlike buying a home, investing in property is not an emotional decision, so it’s essential to know your “why” before investing. Before investing, you should be clear about the duration of the investment, whether you’re looking for a short-term rental return or a long-term investment for retirement. These factors may impact your choice of property and location. Hence, it is important to research the suburbs and properties that match your investment goals. Get clear on your budget To invest in property, you need to have a clear understanding of your financial situation. Lenders evaluate your financial history and expenses, including rates, levies, capital works, and maintenance, to determine how much you can borrow. They also consider the potential income from the property and current and forecast capital growth in the area. This information helps them determine whether the rent will cover expenses or if you’ll need to cover the mortgage repayments and other expenses with a portion of your income. Consider the location Once you have your finance sorted, it’s time to look at the type of property and location. The type of property you choose to invest in will have a significant impact on your obligations for maintenance and upkeep. For instance, an apartment investment will require you to consider strata levies, which can significantly increase your costs each quarter. Additionally, you’ll need to consider the location of the property as this will impact the capital growth and rental yields. All properties require maintenance and upkeep, and investing in property is no exception. Depending on the age of the property, you may need to allocate funds to cover regular maintenance, repairs, and future refurbishments such as paint, carpet, blinds, kitchens, and bathrooms. To ensure the smooth running of your investment property, consider engaging an experienced property manager who can provide expert advice to maximise your investment and take care of the day-to-day operations. After all, investing in property can definitely be a reliable and profitable asset with the potential for strong capital growth and passive income. If you own an investment property, the day-to-day management can be quite challenging. However, an experienced Property Manager can alleviate the stress by providing expert advice and support to optimise your investment. Our property management team can help you find tailored solutions to make the process of owning an investment property seamless. Don’t hesitate to reach out to our team to learn more about how we can assist you.
May 22, 2023
Understanding the value of your property
As real estate agents, we understand that valuing your property can be a daunting task. However, it’s crucial to have an accurate understanding of your property’s worth to make informed decisions about selling or refinancing your home. Let’s explore how a residential property is valued and the factors that can affect its valuation price. First and foremost, location plays a critical role in determining a property’s value. Homes in highly sought-after areas with access to transportation, schools, and shopping centres typically have higher values than those in less desirable neighbourhoods. The size of your property and land is another significant factor. Larger properties generally have higher values than smaller ones. The condition of your property is also essential, as well-maintained homes are more valuable than those that require repairs or upgrades. Additionally, amenities like a pool, garden, or garage can significantly impact your home’s value. And finally, market conditions must be considered. During a seller’s market, when demand outstrips supply, property values typically rise. Conversely, during a buyer’s market, when there are more homes for sale than buyers, property values may fall. As a homeowner, there are steps you can take to maximise your property’s value. Maintaining your property is key, and regular upkeep such as fixing leaks, repainting, and replacing outdated appliances can maintain or increase its value. Making upgrades and improvements like adding solar panels, installing air conditioning, or adding a new bathroom, can also help boost your property’s value. Finally, enhancing your home’s curb appeal, by improving landscaping, painting the exterior, or upgrading the front door, can also add significant value. It’s also important to understand the difference between a real estate valuation and a bank evaluation. A real estate valuation (often called an appraisal) is typically conducted to determine the market value of your property. This type of valuation is often requested by property owners who are considering selling their homes or by buyers who want to ensure they’re paying a fair price. A bank evaluation, on the other hand, is conducted by the bank to determine the market value of the property for loan purposes. Banks need to evaluate the risks involved in lending money, so their evaluation may be lower than the actual market value. Understanding the factors that influence your property’s valuation, maintaining and improving your home, and being aware of the differences between real estate and bank evaluations can help you make informed decisions when it comes to selling, refinancing, or applying for a loan. Our team are experts in properties and valuations and can offer you a no obligation-free valuation on your home. We can also help you with suggestions that will increase the value of your property if you are thinking about selling. Call us to organise your free home appraisal or for a discussion with any of your questions.
May 19, 2023
Tips to make your home inviting for winter sales
Selling your home during winter can have several advantages. Firstly, there is typically less competition among listings compared to the warmer months. This means that the same number of potential buyers can have a better chance of seeing your property. Secondly, selling in winter shows that you are serious about selling as you are not relying on the appeal of blooming gardens or sunny weather. This can highlight the unique qualities of your home, making it stand out to potential buyers. Let’s have a look at some tips to help you sell your home quickly during the traditional season of hibernation. A clutter-free home is inviting One important tip is to clear your home of clutter. A clutter-free home creates the illusion of extra space and can help potential buyers imagine how they can use each room. Be ruthless when culling unnecessary items, and consider moving extraneous furniture and objects into storage. You can also hire an interior decorator to help you decide what to keep and what to remove. They can even loan or lease additional items to suit your decor, which can be a worthwhile investment in your sale. Useful tip - a clean outdoor is your edge In winter, many trees have lost their leaves and gardens can look sparse without leafy greens or bright blooms. However, you can still present your garden in meticulous detail by trimming hedges, pruning overhanging branches, removing any brown leaves and regularly maintaining weed control. If you have a swimming pool or outdoor spa, ensure that it is cleaned and covered at all times if possible. Mowing lawns and removing inappropriate outdoor furniture can also provide extra ground cover in your garden. A warm atmosphere is perfect for a cosy winter Creating a warm and inviting atmosphere inside your home is essential for both ambience and energy savings. Open fireplaces are a popular example of a feature that can inspire warmth, set the scene, and save on energy costs. You can also add the aroma of winter spices such as clove and cardamom, the scent of freshly baked goodies, and gentle background music to create an irresistible atmosphere for aspirational buyers. A professionally finished home is inviting Before listing your property, ensure that any DIY projects are completed to a high standard. Decking, painting, and landscaping projects should all be finished to create a sense of quality, style, and aspirational value. A professionally finished deck, pristine garden, or freshly painted walls can all enhance your property’s appeal. A well-lit space gets the spotlight Finally, it is important to showcase your home’s best features in winter. With shorter days and reduced natural light, effective lighting is crucial for highlighting key selling points. Open-plan rooms can be staged with zoned lighting to create different areas within the space, such as home offices, libraries, and children’s play zones. Large living areas and dining rooms can also be set up to show how they can be used for entertaining or relaxation. By shining a light on your home’s best features, you can help potential buyers envision themselves living in your property. If you need help selling your home this winter, get in touch with our team and find out how we can get the best result when selling your home.
May 16, 2023
Why you should arrange a strata inspection report
Carrying out a due diligence on an apartment before you purchase, especially if you are choosing to use it for investment purposes is a wise expense to ensure that you are aware of any building concerns prior to making the final acquisition. A strata inspection report is useful. A strata inspection report will detail the history and the current state of the building including any information relating to both the residential and commercial aspects of the scheme. This report will outline the effectiveness of the management of the building. What exactly should a strata report contain? The financial status of the body corporate and building As an apartment owner, there are requirements to contribute toward strata levies which are allocated to maintain the building and common areas of the property. These levies will usually be allocated to items such as cleaning and gardening, any maintenance items and minor repairs that may need to be done. Should there be larger repairs and expenses, you may be asked to pay a special levy to contribute toward capital works if there are insufficient funds in savings to cover the costs. A healthy bank balance for a Body Corporate will mean that there is wiggle room should any capital works need to be carried out. It is also important to check that there is a Capital Works Fund included in the balance sheet and that this has a plan and funds for future work. Future building work and defects Check the report and ask questions around any defect work both historically and planned future events so that you are aware of the implications on future costs relating to capital work and on your future living conditions or those of tenants renting your investment. Should the tenant lose facilities during major renovations or defect work, this may also impact your income as you may be required to compensate the tenant or release them from lease obligations depending on the work to be done. Check off the by-laws A strata complex will have by-laws, which are a set of rules that are provided to all owners and tenants in relation to expectations of the building and common areas. The rules may include items like air conditioner use, washing on balconies, pets, noise, use of common areas, parking, visitors, smoking, renovations and short-term letting. Before you purchase, check these laws as they could impact your living expectations should one or more of the laws require a change to your lifestyle or needs. Outstanding disputes Disputes may have occurred between owner-occupiers or tenants and some may be ongoing. Minutes from committee meetings will outline any disputes and resolutions as well as upcoming tribunal matters should they progress. A good strata manager should be able to manage most disputes with the Body Corporate, any Property Managers and Tenants and be proactive around repairs and communication to resolve disputes before they escalate. When you are purchasing, ask our sales team for feedback on strata and they can provide you with further information on the key questions to ask or if you prefer, ask the questions for you. What to expect when buying an established apartment >>
May 3, 2023
Mortgage stress? Tips to help ease the strain
Changes in the property market, increases in the costs of living and rising interest rates can all contribute toward mortgage stress and while repayments on loans or everyday expenses may rise, there are steps that you can take to help ease the pressures of increased expenses. Health check your budget Before cutting costs, it is wise to sit down and look at your budget. It does not need to be a complex task but should involve noting down the income and expenditure of your household and analysing where your funds are being allocated. You may find that it is a great time to renegotiate with your lender on your mortgage, or other providers for insurance, utilities, while trimming unnecessary other expenses. You might also discover that there are some lax spending habits that could be tightened to relieve some pressure. Purchase when you have the affordability If you are looking to purchase a new property, talk with your financial advisor about your affordability range and the impact that rising interest rates and expenses may have. A financial advisor can also talk you through various financial scenarios and negotiate deals for lending. Knowing your affordability and having pre-approval will also mean that when you are ready to buy, the finance is arranged, and you have a limit for the purchase price of your new home or investment. Seek financial advice Should you need to refinance, talk with your advisor about your options and what is available to you based on the current market, equity in your home and investments, rates, and your income. They will be able to provide you with advice and search for the best deal for you. Talk to your lender about your current repayments and if you are paying monthly, there may be more options to change to fortnightly loan repayments which can have the potential to save you interest in the future. Check your property value While you may not be considering selling, it is good to know how much your property is worth in the current market and learn about the trends. Our sales agents can also assist you with advice on potential improvements that may be needed and help you to uncover potential equity in the home that can assist in refinancing or investment opportunities. For a free, high quality market appraisal, contact our agents to learn more about where your property is positioned.
Apr 27, 2023
Is it the right time to sell my investment property?
There is no shortage of information and opinion about any real estate market and an abundance of advice on what the best options are in the market at the time. Investors frequently ask, when is it the right time to sell? If you are an investment property owner, there will be information relating to changes in legislation, potential tax benefits and dips and rises in the property market, all influenced by various local and world factors. What is the most important aspect to consider when choosing to sell your investment is your individual circumstances and the strategy that fits your goals, rather than moving with the crowd. Before making any decisions, analyse your investment plan and talk to your financial advisor about your current situation. They are likely to work through the numbers with you and advise if the conditions are right for you. One of the reasons that you choose to sell could be that the property expenses and cash flow have consistently been in negative territory and with rising interest rates and costs associated with running an investment, you may find that making ends meet has become more challenging. Your advisor can work through your finances with you and should you decide to keep the property, may recommend solutions like refinancing your current loans to source a better deal. Our property consultants can also assist, by providing a market appraisal of the property so that you can gauge where the current value lies prior to refinancing. The market is cyclical, and you may decide that with increases in prices achieved in your local area, that it is a great time to sell and invest in other strategies. Keep in mind that if there are considerable gains, you will be liable for capital gains tax after the sale. Not all markets are the same and there are often micro-markets. While some are increasing, others could be decreasing or prices stabilising. The same occurs for rental properties and increases in rents achieved will depend on demand. The best way to find out what is happening in your area is to speak with one of our property consultants who can provide you with an accurate update on recent sales and the trends that they are seeing. Being informed will give you an extra edge when thinking about whether it is the right time to sell your investment property.
Apr 14, 2023
Tips to getting your bond back at the end of your lease
One of the areas that can cause challenges when renting is the end of the tenancy. It can be a stressful time searching for a new home, packing, moving and then needing to clean and repair any damage to the property you are vacating. There are a few things that you can do to ensure that you are on track to getting your bond back and finalising the tenancy so that you can move on to your new home with minimal fuss. Check the copy of your ingoing report Prior to handing back the keys to the property, check the ingoing report for the condition when you commenced the tenancy. If you have misplaced your copy of the report, contact the property management team and have a copy emailed. Walk through each room of the property and make a list of any areas that might need attention. It may be chips or marks to paintwork, stains to carpet or damage to other areas of the property. If there is damage that needs to be repaired, qualified trades can carry out the work and repairing these items prior to vacate or communicating this with your property manager can help with being prepared and addressing any concerns. Carry out a vacate clean also (known as a bond clean) A vacate clean can be quite different to a regular weekly clean and requires more deep cleaning of areas that may not get attention week to week. Some common areas that are often missed are range hoods, light fittings, ceiling fans, curtains and blinds, windows, and door tracks. If you choose to do the cleaning, work through room by room to ensure that nothing is missed. Alternatively, to save time you may choose to hire a professional cleaner. Hiring trades during the vacate can mean that you have more time to focus on moving into your new home without the stress of knowing that you still need to clean the property you are vacating. If you hire a professional to do your bond clean, you can provide the property manager with a copy of the receipt. People who specialise in bond cleans will know every detail that needs to be cleaned. If you are doing the bond clean yourself and have any questions about the standard that needs to be achieved, a quick call to your property manager may save you needing to retrace your steps. Pay any outstanding rent and bills Check with your property manager prior to vacating for any outstanding rent and bills like water usage. If you are breaking your lease, there may also be penalty fees that apply, and these can be paid in advance rather than have them taken out of your bond. Lastly, make sure that you return all the keys on time on the day of the vacate so that you aren’t liable for any extra costs for rent. Refer to a copy of the keys that you were provided at the start of the tenancy to make sure that you are returning all keys to the property. If you would like further tips or a guide during the vacate to getting your bond back fast, contact our property management team who are happy to help. First time renting? Tips and planning techniques.
Apr 6, 2023
Smart Renting: Key Budgeting Areas to Think About
When starting your search for your next rental property, it is essential to keep in mind the associated expenses and budget accordingly, both for moving and ongoing expenses. Be smart about your rental payment and bond To begin with, you should factor in the rental payment and bond. Property managers will evaluate your income and affordability before accepting your rental application. Generally, your gross income should be within 30-35% of the weekly rent. You should use this as a benchmark to ensure that you stay within your budget and do not exceed your financial limits. Additionally, you will have to pay a bond equivalent to four weeks’ rent to the bond authority before you can move in. This payment should be considered when considering your ideal rental property. Be smart about relocation costs Moving expenses such as hiring removalists and cleaners should also be taken into account. Contacting multiple removalists for a quote can help with planning and avoiding any unexpected expenses. Moving costs can quickly add up, so it’s always better to be prepared. Professional cleaners, carpet cleaners, and tradespeople can also be employed to reduce the stress of moving out and expedite the return of your bond. Be smart about consumption costs Apart from moving costs, you should also budget for ongoing expenses, such as electiricy, gas and water usage. Though it may be difficult to budget for these expenses initially, you can use the costs from your previous home or ask energy companies for an estimate based on the property’s size and occupants. After the first month or quarter, you’ll have a clearer idea of what to expect. Additionally, clarifying with the Property Manager or Owner whether electricity, gas, or water is included in the rental price is crucial to avoid confusion and ensure that you understand your obligations. Think about your internet connection Connecting to the internet is another expense you should consider. After moving in, you may want to set up an internet connection. The NBN Co website can help you determine the type of connection available at the property, and you can then research plans from various providers to find the best option for you. Be mindful of insurance Finally, it’s important to note that while the owner may have insurance for the building, your belongings are not covered under their policy. You should look into renter insurance, which is an affordable way to protect your belongings from any incidents or accidents that may occur during your tenancy. Many companies offer renter insurance, so you can compare and find the best option for you. Our office can get you in contact with our preferred providers, so make sure you ask how we can help you when you’re looking for your next rental property.