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Aug 11, 2022
Should I sell or invest in my second property?
As your circumstances change and you decide to upgrade, downsize, or move locations, the decision to sell your home or keep it as an investment may be something that you need to consider. There is no one size fits all approach in choosing to sell or keep your property for investment and it is best to talk with financial or relevant advisors to make the best decision for you and your family. Selling Some of your reasons for selling will be determined by your current financial situation including equity in your current property. When assessing a mortgage for a new property purchase, financial lenders will account for equity in your property and determine if there is value in the home to borrow against with making the new purchase. Equity alone will not be the only element that is considered in purchasing a second home and financial institutions will also look at current savings, employment, and debt, especially if you are purchasing a larger, more expensive property. Should you decide and can keep both properties, you will need to factor in the responsibility of two mortgages that you will hold over the properties and repayments on both. It is also beneficial to consider lifestyle choices and the added responsibility that comes with owning a second property and investment when making the decision to either sell or invest. Investing The most beneficial factor for keeping the property and using it as an investment is the potential for long-term gains as the property appreciates over the years. There are costs for maintenance that need to be accounted for and as markets fluctuate, there are advantages to the longer-term equity that can be provided with keeping the property and creating an investment portfolio. It is important to calculate and consider the potential rental returns on the property to determine the feasibility of maintaining it as an investment. If you choose to rent one property, rental payments and expenses may not cover the mortgage repayments in whole and there may be a requirement to top up those payments to meet commitments each month. Keep in mind, that as a property investor, you are responsible for repairs and maintenance on the rental property and rental markets can fluctuate. If interest rates rise, there is no guarantee that rents will also rise to cover those increases. Consider the value of organising a depreciation schedule for an investment property.
Aug 4, 2022
Are there benefits to selling or buying off-market?
Deciding to sell off-market will likely be a decision that is made between you as the vendor and your agent based on the style of home that you are selling, the current market conditions and your preferences. While auctions have been a popular method of sale in the last decade to increase the potential sale price, there are benefits and drawbacks to selling in this way, as there are in selling off-market. As a different approach to the process of selling or buying a property, you may find this method will be suitable to your needs. Vendor benefits The benefits for vendors to list their property off-market and try to sell in this method can include a reduction in the levels of stress that can occur with other sale options. As agents are likely to have a community of potential purchasers that are looking for similar properties in the area, they can minimise the need for marketing and the sometimes-lengthy process that comes with a sales campaign. An off-market sale also means that there are no open homes with potential purchasers coming through or the neighbours taking a quick look, out of interest and you may only have a few private inspections with less fanfare. The drawbacks to selling off-market can include missing out on a higher sale price without the frenzy and excitement that can occur during an auction campaign. However, a good sales agent should be able to negotiate well through this challenge to achieve the best possible sale price. Benefits to buying off-market For a purchaser, an off-market sale can mean that there is less competition to drive up the sale price and this could mean gaining a property at a bargain price or help to ensure that you do not overspend and stay within your finance-approved budget. Stress levels can be less for a buyer with this method of sale as you are not competing with a number of buyers in an auction campaign and will have more time to consider your purchase options and price. If you choose to purchase off-market, it can also limit the pool of potential properties that you may have available. Many vendors will sell via auction and if you limit your purchasing requirements to just an off-market strategy, there could be a reduction in the properties to choose from. This will mean patience as possibly more time will be needed for this type of strategy to find the right property for you. Open home? First impressions will have an impact.
Jul 25, 2022
Renovate or sell? Which option should you choose?
Making the decision to either renovate or sell can be a tough one, especially when the sales market becomes quieter. When planning to sell your home, usually there will be a consideration around the current market conditions, the costs to sell and the emotional attachment that is within your home. Some things to consider when you are weighing up the decision to renovating vs selling debate. Renovate or Sell? What are the costs and conditions to renovate Determining the scope of your renovation will assist with planning and budgeting for major improvements to your home. Are you thinking about a larger renovation, including adding levels to your home and major structural work or is it a more modest kitchen or bathroom renovation? If there are larger improvements, you may also need to factor in a need to relocate during the renovations which may mean renting for a period and storing furnishings and other personal belongings. There may be conditions around the renovation that you choose including preparing documents and negotiating with the council for development applications (DA) to be granted permission to carry out the work. Be cautious not to overcapitalise Before planning to renovate, it is a good choice to have an agent through your home to gain a price estimate on your property in its current condition. One mistake that can be made during the renovation is to overcapitalise on the improvements which don’t lead to a higher return on your investment and can potentially cost you more in the long run. Your local RealWay agent can give you an estimate of the before price and advice on improvements that have the potential to add or detract from your home and the eventual sale price. This estimate may also provide you with the information to decide armed with knowledge when you are choosing to renovate or sell the property. Make a list and check it twice Work out what the benefits versus the disadvantages are when it comes to deciding whether to renovate or sell your property. Write out a list for each option and ask all the necessary questions that you need to consider to work out which option is the best for you and your circumstance. Don’t forget to include factors such as the location and its convenience to your current lifestyle, including access to work and school catchments. Also consider where you would like to relocate to, the reasons for moving and any costs that would be associated with upsizing or downsizing your home.
Jul 20, 2022
Tips for your winter open home
Inclement weather can sometimes put a dampener on the number of people who may come through your open home and when it comes to a winter open home, as with any season, you want to show off your property in the best possible light. The winter months are a great opportunity to show how warm and cosy the property can be during the winter months, during the cooler weather when people will want to hibernate and spend time indoors. Present your home in the best light The winter months bring shorter days, which can lead to interiors appearing darker, especially in many different lights. Consider the colour of the walls in your home and the soft furnishings, do they show an air of light and warmth, or something a bit dark and dreary. Even if you don’t paint the walls, look at how the property is styled. Your agent can help you with professionals who will assist with real estate styling suitable for your property that will appeal to potential buyers. Where there are breaks on rainy days, take advantage of good weather to make sure the gardens, landscaping and lawns are presentable and where possible, allow for natural light to flow through the home. Prepare for wet weather during a winter open home During winter, it is inevitable that there will be rainy days. You can prepare your home for days when these elements and potential buyers might wreak havoc on the property. It is wise to continue with your open homes throughout the rainy days as this can often be when serious buyers will be out looking. Ensure that there is somewhere for storage of wet weather gear like umbrellas, boots or coats, or an area for people to dry off rather than walking wet and muddy feet and clothing through your home. Plastic sheeting at the front door, that can be purchased from the hardware store is a great option to protect flooring and it can be gathered up easily after the inspection. Open as many blinds as possible to let natural light through and turn on lights as well as heaters to warm the property up before and during the inspection and give it a homely feel. Agents will often recommend using candles and music through the winter open home to make the property feel like home. Another easy reading article with tips for making great first impressions for your open home...
Jul 7, 2022
3 mistakes to avoid when selling your home
When it comes to selling your home, there are a few things that you should consider before deciding to sell and then testing the market to see if it will achieve your goal sale price. Avoiding little mistakes along the way can reduce stress and maximise the outcome. 1. Avoid overcapitalising on improvements It may be recommended or even necessary to carry out small improvements or renovations to your property before you put it to market. These may be necessary repairs and maintenance items, compliance or even a refresh to present the property in the best light. Before you break out the toolkit and plans, it is wise to create a need-to-do versus nice-to-do list and budget out what each improvement is likely to cost. When you have a price estimate of what the property could sell for, you can then make an informed decision about which improvements will help maximise the sale and which may end up costing you more in the long run. 2. Be careful not to underestimate the power of presentation When a prospective purchaser walks through your home, it is a high chance that they will try to imagine themselves living in the property or imagine a happy living space for a good tenant. Presentation is a key element to ensure that you are increasing the amount of interest that the property receives and likely to achieve a higher sale price based on potentially more demand. Consider decluttering your belongings and removing personal keepsakes. A deep clean of the interior and exterior, as well as garden maintenance, can also assist with ensuring the property is presented in the best possible light. 3. Steer clear of unrealistic price expectations A common mistake in real estate when a property is not moving on the market can usually come down to how it is priced. While it may be tempting to price based on the mortgage you owe, and how much you would like to sell the property to make your next move, this is not always a realistic strategy. A professional agent will advise you on a realistic figure that could be achieved based on the current market and how your property is positioned to gain a successful sale. Getting ready for an open home? Impressions matter. Considering buying an investment property somewhere different? Have a look at what is available in Rockhampton.
Jun 27, 2022
Should I consider selling off-market?
While there are the traditional methods of sale including auction, private treaty, and expressions of interest or tender, with more recent market demands, selling off-market has become a viable option for sellers and buyers. To sell off-market, a sales agent will usually have a database of interested buyers that have been generated due to an interest in similar properties in the area. This will provide an avenue to market the property to these prospective buyers without public advertising. If this form of sale is your preferred method, it is important to partner with a sales agent who has a proven track record of recent sales in the local area and is likely to have a list of qualified buyers. They will be able to leverage off this list to contact prospective buyers that are finance approved and bring those buyers to you. This style of selling will mean that there potentially isn’t a need for many weeks of open homes and there is a simpler marketing strategy than is required for traditional methods of sale. The agent will also facilitate the process through to settlement and give you the opportunity to sell the property faster. Selling off-market can be a good move to reduce the associated marketing costs that can come with a traditional property sale. You may find that there isn’t a need for investment in professional styling as purchasers may not be expecting the property to be styled. Positioning an off-market sale in the market may also be a strategic move to assist both vendors and purchasers who are looking for anonymity in the sale and purchase of a property. This form of sale offers a level of privacy that isn’t available in other sales and as a vendor, if you would like to maintain a closed-door option to your sale, then this may be the best preference. As with all forms of property sales, talk to your advisors and your sales agents to determine the best method of sale that will suit both you and the style of property that you are selling. Thinking about an investment property in a city other than your own? Have a look at what is available in Hervey Bay. Thinking about selling your property? Read about 5 things to disclose when selling your home.
Jun 26, 2022
5 things to disclose when selling your home
When it comes to putting your home on the market for sale, there are several areas that are important to disclose to your agent and potential buyers before and during the sale of the property. Failure to disclose many of these areas can result in harsh penalties, depending on the state that you are in as well as the loss of buyers without penalty during the transaction. Material Fact There are requirements to disclose items called material facts, which include things like mould, illegal drug manufacturing if the property has been subject to floods in the past and serious or violent crimes that have occurred at the property. Failure to disclose these areas could result in the buyer walking away without penalty. Asbestos In many states, there are requirements around loose-fill asbestos that may be contained in the home. It is also important to disclose if you are knowingly aware of asbestos in the home. If this is not disclosed, it may be picked up by building inspectors during the sale process which could mean penalties to you as a seller. Building Defects In more recent times, we have seen reports of building defects in some newer apartment buildings that have involved larger final ramifications. It is important that any known potential defects are disclosed as these are likely to be noticed during building inspections which may mean that the buyer will want to negotiate on the final sale price, or they may walk away from the sale. Property Titles and Consents If the property is subject to covenants, zoning, renovations, or easements, these should all be disclosed during the sale. Disclosures under these categories could include shared driveways, water easements for authorities if developments have covenants around landscaping, streetscaping or fencing designs and requirements or zoning in areas of flood, fires, or specific developments. You should also disclose if there are disputes in relation to any boundaries or fence lines that may cause a challenge to the sale. Tenancies If you have current tenants at the property, it will be important to disclose the sale to the tenant as well as any fixed-term leases and their terms that are in place to the potential buyer. If there are longer-term tenancies in place that are 20 years or more, many states have specific requirements around occupancy and termination that should be disclosed, especially in cases where the buyer may be looking at owner-occupation rather than investment. Feeling the cold? Tips to save your energy budget this winter. Thinking about buying an investment property in a different city? Have a look at what is available in Bundaberg.
May 27, 2022
Open home? Impressions matter
There is an old saying about first impressions - you never get a second chance to make a great one. When you consider selling your home, it is important to know that the impression the prospective buyer has when they walk through the property during your open home could be the make or break of their decision-making process in the sale. Take steps to make that moment in time count. Presentation is key Your sales agent will often work with you and suggest components such as property styling, which can assist in presenting the property in the best possible light to a prospective buyer. Your agent may make suggestions about minor improvements that will be key to the sale and highlight the features that are the best-selling points of the property to show during the open home. Take care of minor maintenance The little things can make all the difference when it comes to showing prospective buyers through your property during an open home. Even something as small as light globes can make an impact to the success of the open and your sales agent will want to turn on lights to brighten up rooms. Maintenance items may also affect the final sale and have the potential to be deal-breakers if items are not repaired. If you have had tenants in the property, it is beneficial to speak with your property manager and sales agent about minor improvements that may need to be carried out and factor this into preparing the property for the sale and opening. If the tenants are to remain during the sales campaign, your Property Manager and Sales Agent can communicate with the tenants on expectations during the open homes. Don’t forget the exterior If you have a property with lawns and gardens, employing a gardener to tidy up the lawns and gardens in the week leading up to your first open home is beneficial to ensure that they are presented at their best for potential buyers. Don’t forget pool and spa areas that may be part of the property, confirming that they are compliant with legislation as well as clean and presentable. A green pool is never a good look come open day and your pool certificate of compliance is usually required as part of the sales contract. For properties with trees on the perimeter, cleaning out the gutters and washing exteriors may be an area to consider as prospective buyers will take the maintenance of these areas into account. Clogged gutters have the potential to lead to roof leaks during wet weather and building inspectors will pick up these items during their inspections. Having these rectified before the sale will save potential stress down the track. Talking about saving potential stress down the track, have you noticed mould in your property recently? Have you considered buying an investment property in a different town or city to your own? Take a look at what is available in Ipswich.