Archive for the ‘Selling Real Estate’ Category

The art of real estate negotiation between a real estate agent and a vendor… watch this video it’s a good laugh!

Accelerate and increase your retirement fund!

Building an investment portfolio can be easy if you have equity in your current investment property…

Often you will not have to pay any costs or outlay any money to purchase an additional property, as this can be built into your investment loan using your current investment property as security.

Do you know if you have equity in your property? 

Contact our office today for an obligation FREE market appraisal.  You could be surprised at just how easy it is to acquire your next investment property.

Call Monika on 8376 8844 NOW!

Do you need a cash injection of funds? Are you thinking about selling or refinancing your investment property?

Often investors can make rash decisions when under pressure. The following is an overview outlining some of the pros and cons of selling Vs refinancing your property.

 SELLING

The Pros

1. Benefit with cash from the sale of the property.
2. Use the cash from the sale to reinvest in property or other investment strategies.
3. Reduce personal debt.

The Cons

1. You will most likely pay capital gains tax on the capital growth you have achieved.
2. You will pay fees associated with the sale, i.e. real estate agent fees, solicitor fees, etc.
3. You will no longer be able to make further investment purchases with the equity from the investment property.

 REFINANCING

The Pros

1. Use the capital gain amount as equity to refinance the purchase of further investments or simply redraw the cash equity.
2. As the rent continues to increase, your serviceability for the loan will also improve allowing for further investment purchases.
3. Achieve a better interest rate or loan package.

The Cons

1. Increased exposure to interest rates with higher debt levels.
2. Associated costs with re-financing.

It is important to focus on what your goal is. Do you want to make a quick profit from your investment property?  If so, then selling may be the best option. 

However, if your goal is to build a wealth portfolio then you may wish to refinance… Call Raine & Horne Glenelg on 8376 8844 – we’ll look after you

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management experts

According to Kevin Magee, SA State Manager of Raine & Horne the 5.2 million Australians born between 1982 and 2000 will represent the ‘Best Generation Yet’ if given the opportunity and support to express themselves.

Kevin is a rare advocate for what he described as “a generation we can all learn from” after being constantly amazed at the level of negative allegations this generation are subject to in business and human resource training circles. 

 “Lets look at those negative comments we hear about Gen Y from a stereotypical point of view and see them for the virtues they are, for example they are labeled cynical, well of course they are! Studies show the average Gen Y person has been exposed to countless hyped up Internet, radio, and outdoor adverts and watched over 500,000 TV commercials before they even reach 18. The result is they can spot a phony or hidden agenda a mile off.  It’s a great skill to have on your team, but it also means you must deal with Gen Y people honestly and with all the cards on the table. 

Gen Y’s are also said to have ‘low appreciation and lack of lack of loyalty,’ despite being the most materially endowed generation ever, Gen Y’s are also the most relationship and community orientated ever.  They are exceptionally loyal to friends and have an outstanding work ethic with respect to living up to peers expectations.  As a result emphasis on positive teamwork and being able to contribute to a ‘bigger picture’ that takes their work beyond ‘what they do’ an appreciation of ‘how it (they) will impacts on others’ is traditionally fertile ground for motivation and job satisfaction. 

 “The work ethic of previous generation that brought Gen Y’s the material benefits they traditional enjoy at an all new level also led to an unprecedented epidemic of broken marriages, absentee parenting, and stress related illnesses that has left them disillusioned and somewhat enlightened, they don’t “live to work- but rather they work to live.

Raine & Horne is learning from Gen Y and doing everything possible to attract, embrace and retain this dynamic new group, resulting in the launch of many Australian business firsts including the free introduction of industry leading training programs worth thousands of dollars for all staff regardless of position so they may broaden their skills and options, the launch of insurance programs that are over 50% below the commercial rate and come out of an employee’s superannuation so as to not impact upon their disposable income, the recent establishment of a new mentoring regime and fast track accredited qualification programs to people get where they want to go and hopefully take Raine & Horne with them. 

Kevin explains “Gen Y is taking us to new and unchartered territory. We’re exploring and using twitter, facebook, myspace, youtube, SMS, blogs, Webcasts and  learning to ‘lol’ and understand ‘CU L8R.’  Gen Y are reminding us work isn’t work if you enjoy it and that employers have a responsibility to make a work environment that is stimulating, people orientated and where ever possible contributes to the wider community in a non-commercial way.  We are becoming a better organisation as a result of their input.”

With superannuation funds taking a severe battering in the 2008/09 financial year, residential property continues to star.

According to the latest RP Data-Rismark Monthly Indices Release, Australian housing values were up 3.9% in the first five months of 2009. The improvement in market conditions, says RP Data, can be attributed to increased owner-occupier demand as opposed to more investors returning to bricks and mortar.

However Angus Raine, CEO, Raine & Horne says he expects more investor interest as we move deeper into 2009. “We’ve seen it in the past, but as first home owner interest declines, investors are set to fill the void,” explains Mr Raine. “Given many property markets are experiencing very low vacancy levels, it will be difficult for savvy investors to ignore the healthy yields that a quality, well-located investment home can produce.”

Other factors supporting property values include Australia’s growing population. Dr Alex Joiner, an economist from ANZ explains, “Population growth is running at its highest level in four decades, providing an unprecedented call on national dwelling stock. This is being reflected in rental vacancies at historical lows in most capitals.”

He adds, “Housing supply has been inhibited by high development costs, land availability and developer uncertainty. The now chronic demand/supply imbalance will intensify upward price pressures, providing a key signal to investors and developers alike to engage the market for the first time in a number of years.”

Mr Raine adds the impact of the Reserve Bank’s decision to cut rates should not be underestimated. Around 80% of Australian home loans are variable rate mortgages, according to Raine & Horne Financial Services, while Mr Raine says roughly 75% of American home loans, for example, are fixed rate loans for 30 years. “So when the US Federal Reserve cut rates, the impact for home owners and investors is minimal,” explains Mr Raine. “In comparison, with the RBA slashing rates by 4% since September last year, the monthly mortgages paid by most Australian home owners are many hundreds of dollars cheaper, which is helping to underpin consumer confidence.”

As a result of lower interest rates, ANZ reports housing affordability in Australia is “testing record highs”. Mr Raine explains, “This means that buying residential property is more affordable for more Australian workers than it’s been for some time.”

However the Raine & Horne CEO says significant increases in unemployment have the potential to affect the strength of Australia’s housing market and should not be ignored by investors. Dr Joiner agrees, but suggests the state of Australia’s labour market “is likely to present as a second-order influence on housing market outcomes.”

Q. What are the benefits of trading down to a smaller home?

A. Also known as ‘down-sizing’, trading down generally involves selling the family home and relocating to a more manageable alternative. It often involves shifting to a more affordable home to free up capital and is a popular strategy with older Australians approaching retirement and sea changers.

While freeing up some equity can be an attractive proposition, downsizing to a cheaper home could affect any Centrelink entitlements, as a home isn’t included in the means test for the age pension. However by shifting the additional funds into a Centrelink-compliant income stream, like a complying pension, it is possible to maintain social security benefits. It can be a little complicated, so I would advise a meeting with a financial consultant or accountant before making a move.

So, as long as you consider the possibilities, downsizing can help you free up some cash and into a more comfortable lifestyle. If trading down means moving to a new region, town or suburb, the trick is to do some preliminary research. This might involve taking a holiday to a new location – at which point you can investigate the local amenities such as hospitals, schools, transport and leisure activities. A local Raine & Horne real estate agent will be able to help with the features and benefits of locations under consideration.

Q. My agent wants to put a price range on my property rather than a fixed price. Why is this?

A. To ensure a home sells faster, it’s important to take price out of the equation. Auction is often the best method for doing this. However, where an auction isn’t an option, a price range strategy can be a useful alternative.

Choosing a range may increase buyer enquiries and then it is your agent’s job to negotiate the best possible price. Also, the fixed price method doesn’t allow vendors scope to negotiate – except down.

Also if a buyer offers a price, which is rejected, the price range must be adjusted by your agent. Failure here means running foul of the Office of Consumer and Business Affairs (OCBA).

This Newsletter Article was brought to you by Raine & Horne Glenelg – your Glenelg Real Estate Agent and Property Manager.

By Natalie Robertson – Property Writer – Messenger Press

Most people are aware of the benefits of having an investment property but many don’t realise how affordable it can be INVESTORS are returning to the property market with interest rates historically low and signs that the first homebuyer frenzy is slowing, says Raine & Horne state manager Kevin Magee. 

“Many first homebuyers, who can afford it, have now bought in time to receive the increased First Homebuyers Grant, and investors realise this,” Mr Magee said.

“Investors are coming back into the market because they know they don’t have to compete against as many first homebuyers. “And that will increase further as the grant is reduced later this year.”

Raine & Horne is targeting potential investors with a new marketing strategy, called Select Invest +, that aims to give them a better understanding of investing in property.

It provides information about the costs and earnings associated with owning a particular investment property on the market. “Most people are aware of the benefits of having an investment property but many don’t realise how affordable it can be,” Mr Magee said. “They think that people who have them must be on a very good income or have to be very well eucated in finances, but that’s not true.”

Owning an investment property can be as affordable as $100 a week, Mr Magee said. “We are sort of putting the cart before the horse and letting people know the costs and income involved if they buy a particular property that is for sale.

“We work out what the costs will be on a weekly basis rather than just supplying them with the asking price for the property.”

But Mr Magee stressed that the agency was not acting as a financial advisers and potential buyers should consult their accountant or financial adviser before committing. “It’s a guide to help them decide if they can afford that property as an investment,” Mr Magee said.

“They should show the figures we provide to their financial adviser. “What we want to get across is that property investment is not just for the elite few, and the information we provide them will shows them that.” The new strategy will also assist the vendor by helping to attract legitimate buyers who know the facts, Mr Magee said.

Select Invest + was designed and reviewed to comply with the Fair Trading, Trade Practices, Finance and Land Agents Acts.

This article was brought to you by Raine & Horne Glenelg – your Glenelg Real Estate Agent and Property Management Expert.

Consumers of Real Estate services -- are you concerned with RealEstate.com’s dominance of the real estate website portal market in Australia?

At last, here’s an alternative that I think will catch on… Congratulations Google it’s about time somebody gave RealEstate.com a run for their money… watch this Youtube video

This story was brought to you by Raine & Horne Glenelg -- Your Glenelg Real Estate Agents and Glenelg Property Management Experts -- We’ll look after You.

Return to Raine & Horne Glenelg Website

Raine & Horne SA is helping property investors have a greater understanding of their buying power thanks to an advertising system new to Australia. 

The ‘Select Invest +’ advertisements list an indicative weekly ownership actual for the property by taking into account a range of factors including mortgage repayments, tax deductions and rental returns. 

The program and its associated cost calculations has been designed and reviewed in conjunction with Fair Trading, Trade Practices, Finance and Land Agents Acts to ensure compliance, clarity and legitimate benefits for both buyers and sellers. 

Raine & Horne Financial Services spokesperson John Martin said the new advertising method will provide new and existing investors with a realistic view of how the purchase would affect their hip pocket. 

“Property investment is still high on the priority list for South Australians, with property prices still affordable and good rental returns,” Martin said. 

“The most common question that I am asked is how much will an investment property really cost per week or per month.” 

“Once investors, particularly first timers, see just how much an investment property could cost – it either encourages them to do so or stops them from making a big financial decision that may not be viable.” 

The program is anticipated to effect how real estate property is advertised nationwide and is yet another exciting Australian first in less than 12 months from Raine & Horne’s South Australian Team. 

Raine & Horne SA CEO Kevin Magee said in the current climate it made sense to give investors a greater understanding of the financial aspect of buying rental properties. 

 “For me the most exciting aspect of this program is that with all indicative ownership costs being based on a couple having a combined yearly income of $100,000, it goes a long way to demystifying property investment and make it much more understandable and consequently accessible to everyone, not just those on high incomes.”

This story was brought to you by Raine & Horne Glenelg – Your Glenelg Real Estate Agents and Glenelg Property Management Experts – We’ll look after You.

Return to Raine & Horne Glenelg Website