Posts Tagged ‘Raine & Horne Glenelg’

Adjustable Mortgage: Where the interest rate is adjusted periodically by the lender. Some people prefer a fixed rate as the maximum amount payable can be budgeted for. Also known as a variable mortgage.

Amortisation: Where the loan is paid off in equal periodic payments, calculated to pay off the debt (principal and interest as well) at the end of a pre-determined period.

Body Corporate: The legal entity which represents the apartment owners when dealing with matters of the common areas of the apartment block in which they own apartments. The Body Corporate funds costs associated with the common areas through a quarterly levy on the apartment owners.

Buyers’ Agent: An agent who is paid a fee by a would-be purchaser to act exclusively for that buyer in their property search and subsequent purchase. Very few buyers utilise the services of a Buyers’ agent but it’s worth remembering that the selling agent represents the seller of the property rather than the buyer.

Certificate of Title: A page of the Register book specifying the ownership of a defined land parcel, and the lodged or registered interests or claims (encumbrances) against that ownership.

Chattels: Items that can be moved and are not considered to be part of the structure of the dwelling, for example: dishwasher, clothes dryer, microwave, mats and pot plants. If there is any confusion between the buyer and the seller about what stays and what goes, these can be identified as a special condition in the offer and acceptance document.

Cooling off period: In some places cooling off period doesn’t exist. But where it does exist, it refers to a designated period – usually a few days – after the contract has been signed, where buyers have time to reconsider their choice and change their mind without penalty.

Depreciation: The decline in value of a property due to either wear and tear on the property itself or changes in the value of the area (e.g a block of units being built and overshadowing a house or street widening that increases traffic noise).

Discharge fee: The discharge fee is a one-time payment charged on the final payout of a loan.

Encroachment: The physical intrusion by a structure on the property of another person.

Encumbrance: An encumbrance is a lodged or registered interest in land by a person who is not the registered owner.

Encumbrances – Caveat: ‘Caveat’ means ‘beware’. This term is a warning to prospective buyers that another party has registered some form of right or interest in the property. Details of a caveat are written on a property’s Certificate of Title (such as money is owing on a property that is for sale).

Encumbrances – Easement: Gives a person or a company ‘rights of use or engagement’ over land owned by another. Usual easements are rights of way, easements for the flow of water over and through another’s land and easements of support (for example, Water Corporation, Western Power, Main Roads WA, telecommunication companies).

Encumbrances – Restrictive covenant: This places some type of restriction on the use of the land. For example, to build a certain height or the land must be landscaped or buildings to be constructed only of brick. For the covenant to be lifted, consent must be obtained from the party named in the covenant or by a court order.

Encumbrances – Right of way: This means a section or strip of the property is for use either by the general public, or a restricted section of the community. It may be created by subdivision, specific transfer, or continued use over a period of years.

Establishment Fee: This fee covers the basic costs in setting up loan from initial interview to loan drawdown.

Exit Fee: This fee is imposed by some lenders when the borrower refinances with another lender in the first few years of the loan. Some exit fees can be high, so make sure to research whether there is an exit fee for your chosen home loan.

F- M Next Week

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

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

With a maze of lenders to choose from, is it better to have a bank or a non-bank lender, such as credit union, managing my mortgage?

Ultimately, choosing a mortgage offered by a bank or credit union are equally acceptable options. The more significant issue is working out which lender presents the most cost-effective mortgage for your circumstances.

Since 1983, when our financial system was deregulated, the Big Four (Commonwealth, ANZ, Westpac, NAB) have faced increased competition from overseas banks and non-bank lenders. As a consequence, they have been forced to offer more competitive interest rates. That said, the banks may offer a broader range of bells and whistles, but you’ll pay for these extra features by means of fees and charges.

A credit union is a cooperative where members are customers and shareholders. They are non-profit organisations, and therefore can often offer extremely competitive loans. The rub is that you will need to join a credit union to take advantage of cheaper interest rates and fee structures, while you might find they don’t offer as much flexibility as a bank.

If you feel you need some help sifting through the web of lenders, we recommend you call Belinda Sugars; a qualified banking specialist from Mortgage Choice. To contact Belinda call 1300 768 258, or visit MortgageChoice.com.au/Belinda.Sugars.

What features should I look for in a first home?

With your finances under control with the help of Mortgage Choice, you can now hit the road in search of your first home. This is definitely the fun part, but be prepared to wear out some shoe leather finding your ideal property.

Remember too, particularly with a first home, most buyers need to make compromises – especially when it comes to the type of property or location.

That said, your home is a major investment, which should grow in value over time, and to give you the best chance of decent capital growth, take some time to consider the following factors:

1. Growth potential – look for an area where adjoining suburbs are experiencing rising values or that will benefit from a major government or commercial infrastructure spend.
2. An attractive outlook – this could be harbour, coastal, river or bushland views.
3. Distinctive features – from period features to an attractive, well-established garden, unique features can create scarcity, and in real estate, that adds value.
4. Opportunities for indoor/outdoor living.
5. A location offering proximity to transport, schools, shops and lifestyle facilities such as restaurants.

This blog post is brought to you by Raine & Horne Glenelg your Glenelg Real Estate Agent and Glenelg Property Mangement Experts.

It angered pundits and mortgage holders alike, but Angus Raine, CEO of Raine & Horne, says the decision by the big banks to hike up variable interest rate mortgages is not the end of the world for the Australian real estate market.

“There is still more than enough good news around for the Australian real estate market,” says Mr Raine. “A rate rise is never good news for those with a mortgage or aspiring first home buyers.”

“However market sentiment is stronger than this time last year and as a consequence we’re seeing more homeowners in some markets across Australia listing their homes for sale.” At the same time, Mr Raine confirms that buyer and investor enquiry is also stronger than this time last year.

Moreover Mr Raine advises that the full benefits of the Reserve Bank’s decision to cut interest rates in November and December 2011 are yet to filter through to the property market. “The property market is a slow moving boat and it takes time for macroeconomic factors such as interest rates to flow through,” he said.

In an interesting twist, leading financial comparison website www.ratecity.com.au is urging borrowers to demand their own personal rate cut from their lender. Damian Smith, RateCity’s CEO, said borrowers could trim more than 1% off their variable home loan rate if they asked for a discount. “We’re seeing lenders offering discounts of up to 1% off their standard variable rates for basic home loans and many lenders – including the big four banks – have said they are willing to negotiate to retain their share of the home loan market,” said Mr Smith.

Away from interest rates, and owners of premium properties should take note that increasing numbers of the world’s expatriates are looking to head Down Under than anywhere else in the world. According to the world’s largest survey of expatriates, the HSBC Expat Explorer, more expats are attracted by Australia’s healthy outdoor lifestyle, friendliness and work/life balance. And once in Australia, HSBC states that expatriates are more likely to lengthen their stay or settle permanently.

Despite the earning potential being less in Australia, expatriates around the world selected Australia as the top destination for their next assignment, out-ranking other markets including the US, Singapore, Hong Kong and Canada. Of those surveyed, 71% chose Australia because it was perceived to offer a better quality of life compared to expatriates who chose the US and UK based on the perceived financial gain (54% and 55% respectively).

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

Moving inter-state or from country to country is harder than moving round the corner in the same suburb, or to another suburb in the same town, which is one of the reasons most people don’t move far when they move house.

Some people lose money, especially if they move from an upwardly mobile area to one where prices don’t change much, and find themselves unable to buy back into their original location if they change their minds. What steps can they take to make this process more financially secure?

Many people like to buy their new place of residence before they make the transfer. This way they experience a smooth transition from one home to another – with the emphasis on ownership and avoidance of renting at all costs. They see no problem arising from selling their old home and cutting their ties with their old life.

While such a strategy may be organised and efficient in the short term, it doesn’t always turn out to be the most successful in the long run. Many people find it hard to carry out property inspections when they live far away. Often they give themselves too little time to find a new home. They forget that moving round the corner means that a lot of the market knowledge they need is already taken for granted. (Busy roads, proximity of services, exposure to adverse season-dependent weather conditions to name a few.) Many find that the property they bought to start with seems less desirable as their local knowledge deepens.
Others find it harder to settle into a new life than they anticipated. The schools aren’t as good as the old ones, clubs and other networks don’t exist or simply don’t seem as familiar as what they left behind, the weather is too windy, wet, hot, cold – or any of the hundreds of reasons people find for not settling into a new place that is simply not “home”.

Those who have no choice – the ones who have to stay because they have been transferred and are under contract – eventually settle in, but just as many are in a position to change their minds and many of those wish they had kept their options open.

Those who decide to move back to where they came from could have reduced the financial cost of moving by not selling their home and buying another one – only to do it all over again when they return to where they came from. In hindsight, many realise that they could have chosen to rent temporarily while they explored their new territory.

Selling up before moving becomes especially likely to cause heartache if the area left is an area of greater capital growth than the area of re-location. Buying back in becomes difficult if prices go up faster in the original location than in the new one.

Naturally, not everyone decides to move back to where they came from. Some simply realise that in the hurry to get settled they chose the wrong house or the wrong area in which to buy, that round the corner or in the next suburb would have been more convenient, more appealing, more likely to go up in price.

Of course, retaining a home, renting it out and eventually selling it at a distance poses its own set of challenges. But many people find it’s the conservative option – the one more likely to maximise financial success and offer the greatest number of options further down the track.

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

Quick… watch this Youtube video and be the first to inspect before it’s open to the public…

Come and inspect this stunning three bedroom two story residence executive residence at 45 High Street, Glenelg. Situated in the heart of thriving Glenelg. This residence offers smart, sleek & exceptional living just a few steps away from Jetty Road &, Glenelg Beach.

This property is presented by Monika Bonet, Principal of Raine & Horne Glenelg, your Glenelg Real Estate Agent

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.

Many Glenelg homeowners are holding off from putting their property on the market as the media continue to report a market downtown and uncertain financial times. But the ‘best time to sell’ is often not what it seems. 

Some people sell to retire and buy something smaller. This blog post does not refer to them. But the majority of sellers at any given time are trading up to a bigger property to house their growing family or reflect their increasing wealth. These home owners will pay more for their next home, than they will get for the one they are selling ….and actually do better when the market is on the decline. The fact that they are spending more money second time round gives them an opportunity to make money on the transaction.

If the reason they think it’s ‘not a good time to sell’ is because they ‘will not get a good enough price’ for their home, then the logical next step is to realise that if the market prevents them from getting the price they want, it will also affect the sellers of the property they are trading up to…and the bottomline net gain remains with the person who is trading up. If you get $603,000 for your home in a cheaper suburb (which has been valued at $670,000), you may feel you are ‘losing’ $67,000 or around 10% of the value of your asset.

But if you (say) buy a more expensive home in a more expensive suburb such as Glenelg, which is (say) valued at $850,000 in the same market. Then the owners of that home will also ‘lose’ 10%, as you also will not be paying more than the current declining market value.

In paying 10% less for the Glenelg Property you will pay $765,000, ‘saving’ $85,000 – thereby ‘making’ $18,000 on the transaction. In other words you ‘saved’  more on the next transaction, than you ‘lost’ on the sale of your current home, so you are ahead by $18,000.

In fact, there are other advantages to trading up in a buyers’ market.

Because prices are stable and properties often take longer to sell, once vendors have sold their original property there is no rush to buy. They can take their time choosing and negotiating their next purchase without having to watch the gap between the price they got for their original property and the price they have to pay for their next one increasing at an alarming rate.

This blog post is brought to you by 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.