Toggle Menu Header

Advice

Latest Trending Popular This Month
Justprop Team

Justprop Team

One of the biggest financial investments you’ll ever make is buying a house. Take the time to do your research and follow these 10 steps to simplify the process. 1. Know your credit rating Before applying for a loan, get a copy of your credit record. When considering your home loan application, financial lenders check your credit score for any bad credit or significant debts. The three main credit reporting bodies in Australia are illion, Equifax and Experian and individuals can get a free copy of their credit report annually. Credit bodies may hold different information, so obtain a report from all three for a comprehensive credit overview. If your financial position isn’t satisfactory, consider reducing or clearing outstanding debts. With store credits and credit cards, banks look at outstanding card balances as well as the available amount so try to clear and close accounts. 2. Determine your budget and affordability Speak to your accountant, financial advisor or lending institution for a clear indication of what you can afford as there are many costs to buying a house as outlined below: A home deposit of approximately 10 – 20 per cent is generally required. Legal and conveyancing fees cover transfer of property title between owners. This includes the exchange and settlement of contracts. Costs can average between $500 to $3,000. Stamp duty (also known as transfer duty or general duty) is a tax borrowers must pay to state and territory governments. The amount is applied on the property purchase and varies according to the state lived in. A complete building and pest inspection can protect your investment and ensure you’re buying a property that’s structurally sound and free from pests including termites which could literally bring the walls crumbling down. Ensure you can afford mortgage repayments in the event of interest rates rises. Additional costs can include council rates, strata fees, moving costs, utilities and insurances. Before purchasing a property, check out BMT’s cash flow analysis calculator PropCalc which looks at key suburb data, maintenance costs, rates, insurance and much more. Finance and insurance costs increase if you have less than 20 per cent deposit and you may need to pay Lender’s Mortgage Insurance. This is usually a one-off, non-refundable premium paid by borrowers, either upfront or added to the home loan. Shop around for the best loan rate, look at fixed or variable preferences and always read the fine print. 3. Select an agent Speak to local real estate agents about how the property market is performing in the area. Research similar properties, sale prices and if you are time poor, consider appointing a buyer’s agent to help find suitable properties, perform due diligence and negotiate sale prices. 4. Gain pre-approval Get pre-approval of your loan to determine your available budget. This involves completing an application and providing lenders with your financial information so they can decide on your borrowing status and ability to service the loan. 5. Attend open homes Now the fun begins as you decide where to live and what to buy. Consider proximity to shops, work, schools, public transport. Look at council development applications to understand the suburbs changing landscape. Look at lifestyle when determining the location and whether you’d prefer a freestanding house in a residential area, a strata titled property, a house with acreage or one of the many other options available. Also decide what’s not negotiable. 6. Determine common issues It’s easy to get caught up in the romance of buying a house but take time to look around. Investigate wall cracks, electrical or water issues (leaking taps, water pressure, plumbing, hot water systems). Structural issues are costly, so check for uneven floors, roofing, doors and windows. Look at flooring under carpets and check for mould which can be extremely damaging. See if new paint is hiding issues beneath. Also check roofs, gutters and drains and obtain a building and pest inspection to help identify issues you may not see. 7. Make an offer Consult a licenced conveyancer and get a property valuation prior to buying a house to determine your offer. Conveyancers can request inspections and are qualified to manage legal processes during settlement and title transfer, ensuring you’re meeting all obligations and are protected. 8. Investigate insurance and utilities Think about insurances, including home and contents, mortgage protection and building insurance if planning renovations. If you don’t have insurance or aren’t sure if it’s adequate, contact BMT Insurance. BMT can provide a quote for house, contents and landlord insurance (if using your existing house as an investment property). 9. Keep as an investment? If keeping your house as an investment property, organise a tax depreciation schedule to maximise the return on your investment. During the 2018/2019 financial year, BMT found residential property investors an average of almost $9,000 in first year deductions. BMT can review your current circumstances and provide a tax depreciation schedule including a forecast of eligible claims for depreciable assets and structures. 10. Settling the property Once an offer is made and accepted, the deposit paid and exchange of contracts occurs, it’s generally six weeks between the exchange of contracts and settlement of the property. In this time, you’ll finalise transfer of the remaining balance to the seller, arrange insurances, pay stamp duty, receive keys and title deeds to your new house. Congratulations! Source:x 10 steps to buying a house The process of buying a house may seem daunting but a checklist can help significantly. Here we’ve done the research for you as we look at simplifying the process with 10 steps to buying a house. homesales.com.au
0 Reply 181 Views 6Mo ago
Simon

Simon

We all want to buy our new home or investment property at the lowest price possible, or at least get good value for our money. And of course, the vendor wants the most he can get for his property. Yet you now know that the asking price quoted by the selling agent will usually be more than the owner is willing to take for their home.  It’s just part of the real estate game – they expect to come down in price as part of the negotiation process. So when making an offer on a house, what should you do? If you ask the selling agent what price you should offer, you’re asking the wrong person. Remember, the agent is paid by the seller to represent them and to get the best price possible. However, it’s usually still worth asking them what they would consider was a ‘fair offer’ and then ask them to justify it with a list of comparable sales. Here are 5 questions to ask the agent before you make your offer: 1. How did the vendor come to the asking price for their home?  Was it from the agent’s suggestion or because that’s how much they need to buy their next dream home? Some sellers are unrealistic and unlikely to come down from their asking price if they have to get a certain amount for a particular reason. 2. Have there been any other offers made? This lets you know if you have any competition and how serious the vendor is about selling their home at a reasonable price. 3. How long has the home been on the market? If it’s just been put up for sale, the seller may not be anxious to accept the first offer. If the home has been on the market for several months it’s more likely the seller would be ready to accept your offer. 4. Why is the vendor selling?  Are they going through a divorce? Do they have to move interstate urgently? Have they already bought another home that would put them under pressure to sell their current home? This will let you know how motivated the seller is. 5. Has the asking price been reduced during the time the property has been on the market? This will tell you whether the seller is really keen to offload their home and also let you know that you might have a motivated seller on your hands and perhaps greater bargaining power. https://propertyupdate.com.au/making-an-offer-on-a-house/x Making An Offer On A House - What Price Should You... When making an offer on a house the most important question is, how much should you offer? Where should you start and how low should you go?  propertyupdate.com.au
0 Reply 147 Views 6Mo ago
InvestAus

InvestAus

As a tenant, you will need to undergo routine property inspections every 3 months. Whilst it can be uncomfortable to have someone go through your home, there are a few things you can to do to ensure your inspection goes as smoothly as possible. What happens during an inspection?Routine rental inspections are a simple way for the landlord or property manager to ensure that everything on the property is working properly and being well maintained. You should be given adequate notice prior to the inspection, allowing you plenty of time to clean and prep your property if necessary. You may choose to be present if you prefer, or the inspection can be conducted in your absence. During this routine procedure, an inspector will walk through the home and take note of new damages, health and safety issues, or problems that might need repairs. If new damages are found you could be penalized. The best way to avoid this is to properly clean and maintain the property. Preparing for an inspection An inspection is usually held once every 3 months, giving you some time to prepare for the next one. If maintenance issues arise in between inspections, you should inform your landlord or property manager immediately rather than wait for the next one. This request should be made in writing. Your landlord will typically give a minimum of 7 days of notice prior to the inspection. During this time, use these tips to whip your property into shape. 1. Focus on areas that landlords worry about Although it may be your home, the property is a landlord’s investment. As a result, they’ll be looking at it from a financial perspective. As you clean, focus on areas of the property that will cost the most money for a landlord to replace, including flooring, bathroom fixtures, and kitchen appliances. Take special care of these and make them shine.  2. Don’t forget external areas Make a good first impression by tidying up the garden. Freshly mowed grass makes a far better impression than crumbling pottery and dead plants.  3. Repair minor damages yourself Are there small scuff marks on the wall or stains on the carpet? These are the types of repairs that you can fix on your own. Cover small marks with paint, scrub out stains, or move furniture if needed to cover minor damages and deal with them later.  4. Get pets out of the way Save stress for both your pets and the inspector by arranging for them to be out of the house during this time. Pets may get upset by strangers passing through the home, while some agents may be nervous around dogs.  5. Clean the house from top to bottom You don’t have to present the inspector with a spotless house; the landlord understands that someone is living there. However, the inspection will run more smoothly without any surface clutter for the agent to sift through. Give windows a polish and floors a good sweep.  6. Use the inspection to your advantage If you have ongoing maintenance issues, use the inspection time to bring them up with the agent or landlord. A running toilet, tricky light fixture, or leaky faucet are all issues that should be addressed. Write down a list of these issues to present to the agent, so that they can be fixed. After all, a good inspection should be for the landlord’s and tenants’ mutual benefit. Source:x Top tips to ensure smooth rental inspection - Late... As a tenant, you will need to undergo routine property inspections every 3 months. Whilst it can be uncomfortable to have someone homesales.com.au
0 Reply 178 Views 6Mo ago
Justprop Editor

Justprop Editor

The Australian dream of entering the property market is not out of reach. Lets look at five options that could get you onto the property ladder sooner. 1. Rentvesting The term ‘rentvesting’ is when you rent where you live and own an investment property which you rent out to someone else. Rentvesting allows investors to live where they want, enjoying the lifestyle of that location, with the owned property in a more affordable location. If you hold onto the property long enough, you may also benefit from capital growth and build up equity. Rentvesting may mean you miss out on first homeowner government grants, but the benefits may outweigh the sacrifice. For example, if you negatively gear the property (when you pay more in property expenses than you receive in rental income) this allows you to use any losses to reduce your taxable income and improve your cash flow. 2. Rent to buy / rent to own Rent to buy means you agree with the owner of a property to lease from them until you’ve built enough equity to get a home deposit to buy it. A timeline and agreed purchase price are usually stipulated in a lease agreement generally over two to five years, with the view that the rent you’ve paid reducing the final sale price when you’re ready to buy. You’ll usually pay above market average rent and an ongoing fee for the option to purchase the property by the agreed date. 3. Buying land and renovating an older property Another way to enter the property market is to invest in location. Purchasing land in a good position with an older style house, then renovating it may present an affordable option for you. It may also be a wise long-term investment if the land is expected to increase in value over time and you’re willing to hold onto it until that happens. 4. Buying Rural Another affordable way to enter the property market is to buy in a rural location. The property and lifestyle expenses can be much cheaper compared to city living and depending on your qualifications and where you’re willing to relocate. Depending on the state, there may be government or council subsidies available, such as Victorian state governments teachers grant offering up to $50,000 for those relocating to rural and regional schools in Victoria. 5. Buying property interstate The property market in one area will vary greatly from another. For this reason, many investors consider purchasing properties in other states. This can be a lucrative way to enter the property market. The key is to do your research, particularly if investing in an area you’re not familiar with. Read details:x How to enter the property market With many options now available, entering the property market may no longer seem out of reach if you’re prepared to consider options outside of the box. homesales.com.au
0 Reply 190 Views 6Mo ago
Ronie

Ronie

Hunting for a new rental property can be a nightmare and renters often find themselves tearing their hair out due to crowded inspections, unanswered rental applications and competition to secure a lease. To stand out from the crowd of budding tenants, it’s important to have an impressive rental application that includes all relevant information and presents you as a responsible tenant. Here are some rental application tips to help you secure your dream rental property. Introduce yourself to the Property Manager While you may think it’s unnecessary, make the effort to introduce yourself to the Property Manager on inspection day. This is a polite gesture that will ensure they remember you when going through a mountain of applications. Include all relevant documentsEnsure your application is complete and includes all required documentation. Lodging an incomplete application reflects badly on your organisational skills and the Property Manager may see you as irresponsible and likely to miss rent payments. When applying for a rental property, be prepared to supply proof of income documents such as pay slips and bank statements, a letter of employment, a rental ledger, ID documents and reference letters including any pet references. If you’re unsure if the real estate requires any documents, it’s always best to include them anyway as further proof of your suitability for the property. Include a cover letter Treat the inspection as an interview and the Property Manager as a potential boss. A cover letter should sell you as the most suitable tenant for the property. The cover letter is an opportunity to talk about your family, work and rental history. If there’s anything in your application that may be unusual or alarming to the Property Manager, explain this honestly in the cover letter. Your application is much more likely to be successful if you address any issues upfront and not try to conceal them. Read more:x Rental Application Tips: How To Secure Your Dream ... To stand out from the crowd, it’s important to have an impressive rental application that includes all relevant information. homesales.com.au
0 Reply 187 Views 6Mo ago
No more post available

Top Contributors Last 30 days

1 InvestAus
2 Anuj
3 Anjali
11 online
InvestAus
Gautam Puri
Alan Lukic
Daljeet Singh
Marty Cage
and more ...