Posts Tagged ‘Property Investing’

When media reports start talking about static or falling home prices, many homebuyers think that it’s a good idea to watch the market and wait for it to reach the bottom. They feel that if they postpone their purchase long enough, they are likely to see prices fall further and snap up a ‘real bargain’. 

While bargains do exist, of course, for people who are in the right place at the right time, there are often more people who miss out by using this strategy than gain.  Most homebuyers buy their family home and live in it for, on average, seven to ten years.  And when we’re looking at averages, the property market continues, in the big picture, to rise. Based on historical property cycles, property may undergo periods of static growth and periods of galloping growth, but on average, well-located, well-selected residential property doubles in value every ten years or so. Certainly, if we could always pick the lowest time to buy and the highest time to sell we would do very well indeed, but the only buyers who need worry about the immediate state of the market are the real estate speculators who wish to buy then sell again straight away, or those who are too highly geared or who have entered into unrealistic amounts of debt. For everyone else, the chances of strong long-term capital gain are virtually assured, provided they buy well-selected property in well-selected locations.

It’s famously difficult to pick the ‘bottom’ of the market. Often buyers who wait find themselves having little to choose from as listings get scarce – and a sudden flurry of competition for the few desirable properties actually on the market for sale often causes them to sell for higher prices than expected, even in a market described as a difficult one for sellers.  Buyers end up paying more than they bargained for if they  keep on watching and waiting;  because the ‘flurries’ they waited out were signalling an upturn in the market or the end of the halcyon days for buyers.
 
Purchasers who wait too long for a ‘bargain’ or the ‘lowest point of the market’ often only realise that the lowest point has already been reached once they can look back on it with the 20/20 vision of hindsight.

This blog post is brought to you by Raine & Horne Glenelg, your Glenelg Ragement Expertseal Estate Agents and Glenelg Property Management Experts.

Raine & Horne South Australia CEO, Kevin Magee answers the top real estate questions every month including “HOW’S THE MARKET?” in South Australia and “WHAT DOES THAT MEAN FOR ME?” in the process identifying real estate opportunities, clarifying trends and providing property market tips for Raine & Horne members, Buyers, Sellers, Investors (Landlords) & Tenants.

For ongoing & concise property updates, media scoops and tips follow Kevin on Twitter @rhSA_CEO or contact Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

“It’s sometimes hard to work out when interviewing a new Glenelg Landlord, why they may feel vaguely dissatisfied with their incumbent property management service” said Ms Bonet Principal – Raine & Horne Glenelg.

“When you sart talking to them you know straight away it’s not working for them, but you can’t put your finger on why?”

“Our experience with our Glenelg Property Management business is that most property investors want to communicate with one person for their day-to-day needs” said Ms Bonet. ”They don’t want different jobs to be managed by different personnel (task management); they want their whole portfolio to be looked after (whether they own one property or several) by one person who is responsible for all tasks relating to their properties – arrears, re-letting, repairs and so on”.

When it comes to hiring a property manager, here is a checklist you can run through to reassure yourself that your agent is doing the best thing by your investment. Here’s a checklist thatall Property Investors should ask themself;

1. Does your property manager talk to you on the phone or does he/she send emails or text messages? Most landlords are baby boomers and prefer to discuss things directly when there is a problem so if you feel your property manager is hiding behind emails or text messages when you need to talk, let them know.  
    
2. Do they respond to your requests quickly? Property managers who take longer than half a day to respond to phone calls and emails are letting you down.
    
3. Most landlords prefer minimal vacancy; it’s obvious that even a week’s vacancy is money that will never be recouped.  If your property is vacant, don’t let your property manager ‘give it another week to see how we go’. If it isn’t rented in 10 days, it’s time to drop the rent by 10%.
    
4. Are you getting the best referenced tenants? Keeping the rent at 95% of market value minimises arrears, vacancies and maintenance – and therefore increases net return although the rent is slightly below market. Landlords who go for the highest rent lose money in vacancies and repairs – so check that your agent isn’t setting the rent too high.
    
5. Does your property manager keep you informed about further ‘good’ investments? This could be via an email with links to their website and properties for sale.

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

Watch this youtube video, and discover how you double your tax return on your investment property…

This video is brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Experts.

Watch this Video to hear from Raine & Horne SA’s CEO Kevin Magee, to find out what is happening in the SA Real Estate Market in January 2011.

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

Adelaide renters are paying $15 a week more compared with this time last year and can expect further rises.

Real Estate Institute of SA figures show the median weekly rent in Adelaide hit $310 in the December quarter, up 5.1 per cent on the $295 weekly median from the 2009 December quarter.

Industry experts attributed the increasing rents to a tight market and interest rate rises.

The rise in weekly rent came despite a 5.5 per cent increase during the past year in the number of properties available for lease.

REISA president Greg Nybo said the rises were to be expected in Adelaide’s rental market, where the vacancy rate had hovered at or below 1 per cent for much of the past year.

“What we are now starting to see is the reality of a very, very tight rental market,” Mr Nybo said.

“When you have so many people looking for a limited product, rents are going to go up accordingly.

“A lot of landlords have also adjusted their rents with increases in interest rates and ongoing price rises for utilities.”

Statewide, the median weekly rent increased 5.5 per cent during the past year to $290. Mr Nybo said the larger statewide increase could be reflective of the state’s expanding mining sector and a mostly strong year for farmers.

“If the job is there and people are moving to the country for employment in mining or agriculture, it’s going to make for limited stock, which again means higher rents,” he said.

Mr Nybo said that with interest rate rises forecast for this year and no sign of demand letting up, similar increases in rent could be expected in 2011.

 Property Investors: Are you getting the right rent for your property in this market?  Find out what rent you should be getting…

Simply enter your property details and we will email you a free appraisal as to what your Glenelg or Western Coastal investment property should be renting for.

 Click here for an appraisal form

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

Source: Adelaide Now

Watch this video … to get the latest in the South Australian Property Market Updates

This video is to brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agents and Glenelg Property Management Experts

For Adelaide to become a more vibrant and sustainable city, we need to stop the urban sprawl.

Did you know that Adelaide covers the same area as London? The major difference being that London has a population of 7 Million whilst Adelaide has a population of just 1 Million.

So what does this mean for our kids…

Gone are the days that we condemn our kids to migrating to the outer suburbs, to find the cheapest block of land, or house & land package that they can afford to purchase as a first homeowner.  And in the process condemn them to owning two vehicles to commute to work and raise a family to commute to school and leasure.

At last we have a sustainable plan for Adelaide, which provides us with a direction on population and how our city will grow.

Watch this Youtube Video about Adelaide’s 30 Year Plan…

So how does the 30 Year Greater Adelaide Plan change the future for our kids… 

The first step is what is happening now with our $2 Billion Public Transport Infrastructure Upgrade.

This investment is all about improving our public transport with modern new electrified passenger trains, trams and modern buses which integrate into our train and tram network. The next step once our public transport network is upgraded, is to encourage urban consolidation along our major public transport corridors, which means we will lessen our reliance on vehicles as our sole form of transport.

How will the 30 Year Greater Adelaide Plan encourage urban consolidation?

The 30 Year Greater Adelaide Plan, announce the intention of our Government to encourage higher density housing along our major publice transport routes by relaxing Council Planning policies 800 metres either side of major public transport routes.

So if I was a Property Investor… where should I purchase property for future growth?

Obviosly 800 metres either side of the major established train and tram lines!

This story was brought to you by Raine & Horne Glenelg, your Glenelg Real Estate Agents and Glenelg Property Management Specialists.

The South Australian property market continues to go from strength to strength on the back of investor demand.

Watch this Youtube Video about Adelaide…

Kevin Magee, CEO, Raine & Horne South Australia, explained, “There is very good economic confidence among investors about the local and interstate economies. As a result our offices are fielding plenty of interstate and international enquiries – particularly from Chinese investors.”

According to the Raine & Horne SA chief, the relative affordability and stability of Adelaide’s housing prices is the cornerstone of buyer demand. “The median house price in Adelaide is still around $380,000, which typically buys a three-bedroom, two-bathroom house within 30km of the city,” said Mr Magee. “Move to within 15km of the city and in many areas $380,000 will still buy a home with three bedrooms and one bathroom.”

Mr Magee added, “The Adelaide property market has recorded just 7 falls in quarterly price growth since March 2000. Each time it’s only been a small percentage fall and it’s quickly recovered the following quarter.”

Mr Magee nominates Hope Valley as a suburban property hot spot. “Hope Valley offers first time buyers and investors quality properties on large blocks within 15km of the CBD at a rate well below the median price. In addition the area is seeing a revival with many buyers subdividing or demolishing old properties to build their ‘dream homes.’ These are exactly the type of factors that drive future price growth and lead to good long term capital return. It’s not surprising to see this area has achieved average annual median price growth of 12% for the last nine years. To find out more about the property market in Adelaide’s north east, contact Raine & Horne North East on 08 8395 2233 .

Gawler is the gateway to the Barossa Valley and is attracting those buyers looking for a lifestyle change or a home with a country town feel. “There is a nice mix of housing – from heritage, to very modern properties and cafes in Gawler,” explained Mr Magee. “Gawler is somewhere where people can choose to live in a rural country town, but still work in the northern part of Adelaide at Technology Park or Edinburgh. For more on Gawler, contact Raine & Horne Gawler on 08 8522 2777.

It’s famous for tuna fishing, but Mr Magee says Port Lincoln is attracting home buyer attention. In fact, Raine & Horne Port Lincoln’s Steve Prout recently sold six brand new townhouses off the plan to interstate investors within a week. “And they were sold sight unseen,” said Mr Magee.
Port Lincoln is a day’s drive from Adelaide, but it’s an area that is moving ahead in leaps and bounds, and investors are well aware the town is a designated area for people returning from jobs in the Iron Triangle region.

“When workers with young families leave the mining towns, they tend to prefer coastal towns such as Port Lincoln, Whyalla or Kangaroo Island to a suburb in Adelaide,” explained Mr Magee. “The coastal towns provide the intoxicating mix of a country lifestyle and good schooling.”

This article is brought to you by Raine & Horne Glenelg, your Glenelg Property Management and Glenelg Real Estate Specialists.

When searching for an investment property, don’t fall into the trap of asking “Would I live there?”

Watch this Youtube Video about which picking suburb you should buy in…

Don’t be like most Property Investors… often your tastes in a property can be very different from a tenant’s needs and likes within a particular area.

SOME KEY FACTORS THAT YOU SHOULD FOCUS ON WHEN CONSIDERING THE PURCHASE OF AN INVESTMENT PROPERTY ARE:

• Are the rents affordable within the average to medium price range?
• Has the area shown a solid history of steady rental demand from nearby industry, educational, medical or commercial office workers?
• Does the area provide good access to shops, transport, schools, churches, sporting and other facilities in keeping with the profile of the local population?

If you can answer yes to the above then you are on course to making a sound investment decision.

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