How To Get A Good Return On Your Investment Property

Real Estate Information

Written by Paul Kounnas | Wednesday, 16 May 2012

When you buy an investment property, you’re investing a lot of money in your future.

So you want to make sure you do everything you can to ensure you achieve a good return on your investment.

Some of the ways to do this include:

Do your homework
You’re investing a lot of money in this venture and you don’t want to risk your financial future by acting too hastily. Do some research before committing. Check valuations and recent prices on reputable real estate websites to ensure ...

you’re making a wise decision.

Watch your finances
Don’t get your hopes up before knowing you have the ability to buy. You could waste a lot of time looking in the wrong price bracket and then finding you can’t borrow enough money.

Check the demand
There’s no point in buying an investment property unless you can be sure it will be tenanted. One way to do this is to buy close to facilities such as shops, schools and transport. People usually want to live close to such facilities and will look for rental accommodation nearby.

Think long term
Don’t buy an investment property hoping to cash in on a boom in the next couple of years. Rather than trying to predict what the market will do, you’re better to set your sights on buying the type of property for which there is an established demand so that it will bring in the returns you want.

Find a good property manager
Once you have your investment property, you want to make sure it is managed properly. A good property manager can take the worry out of such things as finding the right tenants collecting rents and seeing that the property is well maintained. Make sure your property manager is licensed, has local knowledge and understands the importance of communicating regularly with you about your investment property.

Follow these tips and you’ll be well on your way to a happy future as a property investor.

Perfect Strom, Buyers Flock In

Market Update

Written by Property News | Wednesday, 09 May 2012

First there was the Global Financial Crisis and then the European and US Debt Crises. Collectively their impact on a resources-boom-protected but still nervous Australian market has been a return by investors to the security of bricks and mortar.

This noticeable move by investors to again secure property has been given a boost by a number of factors - falling property values and the knowledge that Australia’s national housing shortfall will see rents rise for some time to come. It all adds up to a buyer’s market, ...

a market that is gradually heating up in a way many industry observers simply failed to predict.

Doncaster and surrounding suburbs are certainly seeing daily evidence of this trend.

In the past few weeks leading agent Hudson Bond has had multiple offers on a number of properties spread across the price spectrum:

• 254 Thompsons Rd, Lower Templestowe, Mid $500’s - two offers

• 310 Serpells Rd, Templestowe, Low $700’s - three offers

• 34 Hillcroft Dr, Templestowe, $800’s - two offers

• 5 Dion St, Doncaster, $700’s - two offers

• 37 Sharon St, Doncaster, $1.3 million - three offers

• 13 Totara Court, Lower Templestowe, low $700,000’s - two offers.

Hudson Bond Principal, Paul Kounnas, said that in his long career in real estate he had never seen a combination of circumstances quite like those of the present period.

“Normally a growing demand for properties would be met by increased property prices. this is not the case today as many properties that were artifi cially infl ated in price during the recent fi ve-year boom are now returning to normal levels,” Paul said.

“It is a truly unique situation and when you mix in the appeal of extraordinarily low interest rates there is every indication that the buying momentum will grow.”

Paul said that Baby Boomers who saw their retirement nest eggs scrambled in the Global Financial crisis were leading the return to bricks and mortar security in an effort to quickly build a retirement portfolio.

“Some are selling the family home to free funds for smaller properties and still others are reverse mortgaging or using their equity to borrow.

“The buyers we are seeing are well aware that crisis level rental vacancy rates of around 1.4% will ensure rents continue to rise in the face of estimates Australia has a national rental housing shortfall in the order of 250,000 properties that will not ease in the foreseeable future.”

Hudson Bond’s level of buyer inquiries is growing on the strength of a good portfolio of well-priced investment properties such as:

• 1 Mahoney Street, Lower Templestowe - renovated three bedroom home at $625,00.

• Apartment 202A, 1-19 Colombo St, Mitcham - new one bedroom unit $329,500.

• 2/800 Elgar Road, Donaster - new three bedroom townhouse $680,000.

• 6/115 James Street, Templestowe - newish two bedroom townhouse $545,000.

“While we have a good number of listings, the level of inquiry is so strong that we would advise anyone thinking of selling to contact us immediately for a free market appraisal.

“We are fully expecting that buyer numbers in this market will continue to increase. The soon-to-retire Baby Boomers have a limited window of investment opportunity to recoup their GFC superannuation losses and the European and US debt crises have made them too nervous to turn to the traditional areas such as shares, commodities and futures.

“There is a school of thought that Australian shares should be an alternative but in the face of recent liquidation announcements by major builders and manufacturers, the Baby Boomers see that as too great a risk.

“Real estate has long been the safe alternative and in the present market it is being seen as the only alternative,” Paul said.

The Market Is What The Market Is

Selling Advice

Written by Paul Kounnas | Wednesday, 02 May 2012

When selling what is probably your most valuable asset, the family home, it should come as no surprise that presentation plays a vital role. The person responsible for the presentation of your home is you, just as the agent is responsible for the marketing and negotiation.

Buying a home is an emotional process and the feel of a home is usually more important than the price. Therefore first impressions can create permanent opinions and feelings about the home, so for the best results set a positive mood for prospective buyers. ...

You want buyers to fall in love with your property, so give it that loved look and feel.

When your home presents better than others it will appeal to more buyers and will increase your chances of selling quickly and at a better price. Once you have presented your home as best you can, you then must select a competent agent, one you can trust to market and negotiate on your behalf. The final price you receive will then be the best available market price.

Neither you nor the agent control the market. The market is what the market is. But you can control the presentation of your home and your agent can control the marketing and negotiate the best price for you. This can mean thousands of dollars in or out of your pocket. A good agent will persuade buyers to inspect your property and to buy it in preference to other properties on the market.

Don’t allow the state of the market to affect your plans either. Some people put their plans on hold waiting for a better market.

But when you are selling and buying at the same time it makes little difference what the market is doing. In a down market you may sell for less but you can also buy for less. If you wait for the market to improve in order to sell for more you will also be paying more when you buy.

Don’t waste your life waiting for a better market, make the move to where you want to be living and get on with your life today.

Market Update March Quarter 2012

Market Update

Written by Paul Kounnas | Thursday, 26 April 2012

Median house prices across Melbourne remained flat for the March quarter. The REIV March quarter median house price in metropolitan Melbourne was $535,000, up $5,000 from the revised December quarter median of $530,000 (this was originally reported as $560,000).

The market is continuing to consolidate which indicates that we are in the stability phase of the property cycle.

Until the world economy and consumer confidence improve, the property market is likely to remain flat for the short term.

When you look at the change in median house prices for the various suburbs within Manningham you may be a little confused by ...

the large disparity in price movements from one suburb to the next.

Don’t take the quarterly price changes too seriously as they can be extremely inaccurate.

The annual change in prices is a better indicator, although this too can be inaccurate because the March 2012 quarterly figure will eventually be revised by the REIV as they collect more data.

Generally price movements within the city of Manningham are more uniform than the median price data shows.

Help Kids Adjust to Moving Home

Buying Advice

Written by John Tucker | Wednesday, 18 April 2012

Buying a new house and planning a move may be as much stress as you think you can handle – but remember that it is likely to be a particularly trying time for your children as well.

Routines are understandably disrupted in major ways during moving and sensitive planning can help all family members, but especially young children, better cope with the impending changes.

One of the keys with children is to break the news about moving as soon as possible. Kids need to get used to the idea of moving ...

so give them as much advance warning as you can.

Provide them with as much information as possible about why the family is moving and what they can expect in their new home and suburb.
Some tips on moving house with children include:

• Ask children to share their feelings with you. Although you’ll personally be going through a range of emotions, listen to what they have to say and assure them that you understand any concerns they have.
• Don’t take their reactions personally. Children can have problems adjusting to a move and can blame a parent or parents for causing it. Explain that sometimes big decisions can’t be avoided.
• If the child is old enough, let them help to pack some of their favourite items. It can help them understand that although the family will be in a new home, their belongings will stay with them.
• Be cautiously optimistic. It is important to be positive and optimistic because your children’s attitude will largely mirror yours.
• Explore the new neighbourhood. If you’re moving to a new suburb or town, use maps and other information from your local council or the internet to explain where you’ll be living. Talk about any nearby attractions that may be interesting, such as moving closer to the beach or to a park.
• Try to keep a routine. A child’s world is based on routine and it’s important to try and keep some semblance of normality throughout the process. Stick to a set time for dinner every evening, no matter how chaotic things seem to be, and maintain regular activities which the family enjoys.