Have you been affected by Sydney’s recent heatwaves? As we are going into autumn things are starting to cool down, but what we have observed is how the recent heatwave in Sydney has had an affect on the housing market. Generally speaking, temperatures are rising higher every summer – and higher temperatures are affecting home buying behaviour.
During times of excessive heat, a lack of air-conditioning will affect selling prices – especially in west-facing homes. Buyers are offering less for homes where they will need to install air-conditioning themselves. Conversely, homes with air-conditioning already installed are attracting a premium.
Environmentally friendly, green homes are also falling in popularity as these homes rely on natural means for cooling, which really do not help as much during periods of excessive heat.
There is an increased demand for home with swimming pools, and people who own homes where there is insufficient space to put in a pool are on the market to purchase a home that already has a pool. This is especially important for buyers with children, who are looking at swimming pools as the primary means to cool everyone down.
There are also instances where people have filled in pools to avoid maintenance and associated costs, who are now digging them out again.
Insulation of a home will become a factor to be considered seriously by home buyers - buyers will increasingly be on the look out for better insulated, shaded and draught-proofed homes which need smaller and cheaper to run cooling units. There is an increasing demand for double glazing to keep the home cool in summer.
Houses built of materials that are high in thermal mass such as brick or sandstone will insulate a house because these materials take a long time to heat up or cool down, as opposed to materials such as timber, tin or acrylic.
Homes that have a roofed veranda will help to keep the interior of the home cool in summer.
If your home has a garden, and you are putting it on the market during summer, it is important to ensure that the garden is well planted, green and well-watered. Beds should be mulched to save on water while still giving a cool green and welcoming impression to home viewers.
Getting into the property market can be challenging – as a first time buyer without experience it can be daunting. From saving for a deposit to making a purchase that you hope will bring on returns, many feel overwhelmed and scared. With the right expert at your side however, it doesn’t have to be. YNM Real Estate is the best partner you can have if you want to get into the property market.
Here are some of the ways you can get into the property market today
Rentvesting is a concept where buyers purchase a home in one area then rent it out to tenants while living somewhere else. This allows you to be able to live where you want while rentvesting but also gives you the ability to invest in something a bit cheaper which may provide a better rent yield or capital growth over time.
Consider purchasing an apartment instead of a full family home
An apartment – or even a smaller townhouse in the outer-ring suburbs – are almost always cheaper investment options than a house in the centre of the hustle and bustle. There will always be a trade-off between location, size of a property and the price – apartments, while sacrificing on space, allow you to still stay within the location of your choice and could act as a stepping stone to your ideal sized house.
Research undesirable areas
Many areas go from undesirable to desirable over time – consider researching neighbouring suburbs to understand if they are the next up and coming place to be. This can be a good strategy if you plan to invest for a longer period of time – but it will take time.
Most people cannot buy a home without a mortgage. If you fall into this category, then it is critical that you avoid any of the pitfalls that may reduce the amount of finance that you may be granted, or alternatively cause you to be given a higher interest rate than you would otherwise have been granted.
Understand your credit score. A credit score is a rating of your creditworthiness, based on your history of overdue debt, defaults and credit applications. Multiple credit applications could be a signal to a potential lender that you have to go to lots of different lenders to get credit, or that you have been declined by lots of different lenders - the applications will show up in the credit file, and it will not specify whether it was just an application or whether it was declined.
It is a really good idea to check your credit score before applying for a mortgage.
Applying to multiple banks for a loan will therefore affect your credit score. Even if no supporting documents are submitted, the application will show up in the credit file.
Avoid taking on any additional debt before applying for a mortgage. Lenders will look at your current debt-to-income ratio and if it is above a specific level then your application may be declined.
Make sure that you are not in arrears with any of your bills, and that all bills are paid on time. Paying even one bill late will reflect on your credit score.
Another thing that lenders will look at is the amount of credit that you are currently using – your debt to credit ratio. This is the percentage of your credit limit that is currently being used.
Changing your job before applying for a mortgage is also said to be a bad idea. Lenders need to have evidence of stable employment and income.
Making major purchases just before applying for finance is a risky move. You will need as much cash on hand as possible to cover deposits, closing costs and insurance. Prior to applying for a mortgage it is advisable to reduce your financial obligations rather than add to them.
Ever received an energy bill and wondered why it was so expensive? If you aren’t the person who leaves the lights on all day or runs your air-conditioner overnight, then you are probably wondering.
With some appliances consuming more electricity than others, it’s a great idea to be aware of what is consuming all of the energy in your home.
Heating and cooling appliances normally take a big share of the pie, with hot water heaters coming in a close second. Whether it’s that energy inefficient air conditioner or fan, or the heating elements in geysers, these appliances can consume a lion’s share of energy.
Refrigerators and freezers are other culprits consuming large amounts of energy in your home – this is mainly due to them being on all day, but energy use can really spike if the door is opened regularly letting the cool air out.
So how can you make a difference in your usage? Many of the new appliances come with energy ratings, indicating their efficiency as well as how many kWh the appliance consumes. While more energy efficient appliances will cost you more at the time of purchase, they will save you more on your energy bill in the long run.
But there are some other great ways to save energy,
‘Rentvesting’ is the term given to first-home buyers who are buying an investment property while continuing to rent the home in which they live.
Why would one do this, you may ask? Well, as a first-home buyer, you may want to get a foot in the property market, but be unable to afford to buy in the area in which you are renting, or you may be able to afford a much smaller property which does not meet your own current needs. Purchasing a property in a more affordable area, or a smaller property than you currently need in the area of your choice means that you can own a property and rent it out, covering your costs through a combination of the rental income and the tax incentives that favour investment. Expenses such as repairs and depreciation can be tax deductions, thus closing the gap between your costs and your rental income.
‘Rentvesting’ is seen by a growing number of people as the answer to growing wealth and living where you want to live. If you are renting then you are able to choose where you want to live, and for how long, without the major expense and stress associated with selling your home and buying again. Selling your own home and purchasing another to live in will cost you about eight percent of your asset’s value, whereas if you were renting, the cost of a move would be mainly in the removal and delivery of your furniture.
Renting provides a level of flexibility in terms of size of home and location that you would not have if you owned the home in which you live. However, there are a number of drawbacks to renting the home in which you live.
Renting is temporary – the home does not belong to you, and should the needs to the actual owner of the home change, you may be looking for alternate accommodation once your current rental agreement expires.
In some areas, and for some types of houses, houses may be occupied by owners and there may be little available to rent.
If you combine the approach of renting a home and also investing the housing market, ‘rentvesting’, there is the potential to experience the best of both worlds – the flexibility of renting and the wealth creation opportunities of investing to rent out.
Most property investors have one goal in mind – to buy as many properties as they can afford and earn as much income as possible. But there are a few key lessons that you will find in any property investor’s book.
Playing by the rules
Property investing can be more successful if you know and follow the rules – understanding the rules, regulations and local laws is key. By knowing these rules, you will be more likely to make wiser decisions – don’t get burnt by being unaware!
Location always counts
With so many properties available it’s key to have a location strategy in mind. Strategically waiting for key opportunities in your preferred locations will pay off in the long run. Good location strategies are built on finding areas that are close to local services and infrastructure such as schools, shops and healthcare.
Keeping cash that is easily accessible is important for weathering storms – unforeseen expenses. Financial buffers allow you to ride any downs that may come your way – repairs, maintenance, fees and taxes can pop up unexpectedly.
Negotiation skills for the win
As a property investor you will likely come into some tricky negotiations. Such an example is coming up against an owner who doesn’t want to part with their property at the price you are offering. Top notch negotiation and persuasion skills can make the difference between a successful purchase and a failed attempt.
Owning a holiday home is part of the Australian property dream. However, when considering such a purchase, it is important to consider the financial and tenant management aspects fully.
There are several benefits to owning a holiday home:
However, along with the abovementioned benefits, you also need to consider some practical aspects.
You will be maintaining a second home – this means double your running and maintenance costs – water, electricity, council rates, inspections, land tax and insurance. You will also need to fund any unforeseen expenses or contingencies that are not covered by insurance - keep a buffer to deal with unforeseen costs
Should you wish to let your property out, it would be a good idea to retain a real estate agent to advertise and let the property.
The property will need regular maintenance to keep it up to standard and attract tenants – the annual maintenance cost for a rental property is estimated at 4-5% of the rental income received, and the cost of property management can be as high as 15% of the rental income.
If you want the holiday home for lifestyle purposes and not only an investment, the times that you may want to use the holiday house are most likely high demand periods for potential tenants – you will need to balance personal use with generating rental income.
When considering a holiday home purchase, research the location to understand property prices and growth, average rental yields, land tax and other government charges.
Look at the surrounding infrastructure and services which could provide for/support greater opportunity for stable occupancy rates between peak periods.
Holiday areas in close proximity (within a 2 hour drive) to major metropolitan areas will be in high demand due to their easy accessibility. Having said this, ensure that the area has suitable amenities such as restaurants and tourist attractions, and good transport links.
With so many things to get up to in our beautiful city, you may get overwhelmed with all of the choice. Here are a few must do’s in your downtime
This beach is famous for a reason! Being every bit as amazing as you may imagine, Bondi beach offers a relaxing day out – but don’t forget your water and sunscreen.
A favourite with tourists, Circular Quay is definitely one to visit. Spend some time on a harbour ferry or having a good meal at one of the waterfront eateries.
A great afternoon out with gorgeous views, shops and top-rated restaurants, Darling Harbour never disappoints.
Have an eye for sports? Then why not catch a game of footy and show your support.
The Sydney Opera House offers something from everyone. If you aren’t watching a show, then be sure to visit anyway, the iconic sails have become an iconic Sydney feature.
The Taronga Zoo was opened in 1916 – and today plays a role in conservation and education. A fun and educational family day out.
Royal Botanic Gardens
This heritage listed, 30-hectare botanical garden is a haven for city wildlife and features a rose garden, fernery and a Jurassic Jungle for the kids.
Selling your home is a big decision and for most of us, a stressful time, and the sooner the sold sign can go up, the better.
However, sometimes a house may stay on the market for months without generating much buyer interest. This is usually due to one or more common mistakes that people make when trying to sell their property.
Putting your home on the market with a price that is set too high initially will deter buyers. If you then reduce the price over time (vendor discounting) all that you may achieve is to attract the notice of those buyers looking for a bargain price, who are ready and willing to negotiate you down even further or walk away.
Do your research to determine the appropriate market price for your property. Review property ads for properties being marketed in your area, and also websites for auction and sales results, and lists of recent sales from agents. You could also opt to pay for a report or hire an independent registered valuer to provide you with a professional estimation of the value of your property. Get out and visit properties for sale in your area to get an idea of how your property compares to the market.
Not using an agent
Trying to sell your own home in order to save agent’s fees and other expenses is often akin to shooting yourself in the foot. Not having access to the research, advice and opinion of a professional to maximise the sales potential of your home could cost dearly in terms of profit realised.
Using the wrong agent
It is important to find an agent that you can trust. Ask a potential agent for contact details of other sellers that he is representing. Talk to them and find out whether the agent treats them and their potential buyers courteously. Ask about the agent’s negotiation skills – will he negotiate hard for the best price for your home?
Mystery shopping is a great way to check out an agent – call to view other properties that the agent is representing, and rate the experience first hand.
Signing up for too long
If you sign up for a long period of time and you find that you are unhappy with the service provided – you will be stuck. Try 30 days to start with – you can always extend if you are happy
Paying fees in advance
You should not be required to pay any fee upfront – and do not sign anything which requires you to pay any money if your home is not sold.
Only pay the fees after your home has been sold and you have received the price and the service that you were promised.
Not properly preparing the property
There are a few simple and not very costly things that you can do to ensure that your home is presented in the best light possible – not doing this may mean that your home sits on the market for an overly long time.
De-clutter, clean and remove any pet smells and pet bedding.
Ensure that your garden is tidy and well-trimmed with weed-free, well turned beds.
Attend to basic maintenance – go round your home and identify all of those basic maintenance jobs that need to be done. Leaking toilets, taps, grubby walls needing a coat of paint, loose handles on doors or cupboards and so on. Attend to worn/marked carpets and refresh any dirty grout in tiled areas.
When it comes to Real Estate in Zetland, there is no question that knowledge is power. Property management should be comprehensive, and when it comes to Zetland, we are talking about one of the most beautiful new suburbs in the Eastern Suburbs. Just 4km to the Sydney CBD and 4km to the airport, Zetland truly gives you everything.
One of the more recent additions to Zetland was the new East Village Shopping Centre, the "one-of-a-kind retail and lifestyle experience" was inspired by New York's Chelsea Market and Barcelona's La Boqueria and has a huge Coles, a health club, a medical centre and 50 specialty shops and restaurants alongside an Audi showroom.
And if you are a tenant or landlord in the Zetland area, you are going to want to stay on top of things. The most important aspect of this is that the information is all-encompassing. At the same time, you should also have the ability to access property management information when you need it. Whether we’re talking about property management in Sydney, or if we are specifically dealing in property management Zetland, you’ve come to the right place.
If you’re a landlord, you need a variety of detailed information. You need to be able to access a general overview of your properties, but you also need to be able to access all current lease/rent information. You may also find yourself in a situation in which you need to get an ownership statement on-demand.
Thanks to PropertyTree Owner and Tenant view you have access to an online platform 24/7 where you can access your property information and communicate directly with us, your property manager. This easy to use online portal gives you the power and flexibility to have real time access to your information, whenever you need it.
All of this is great, but working with an experienced property manager in Zetland should also mean reliable, rapid communication. Whether you need to speak directly to your property manager, or if you want to have reliable records as they relate to past conversations with your property manager, you should be able to get everything you need under a single roof. This is what it means to work with Your Next Move property management.
And what about tenants? As a tenant, you are entitled to the same type of privileges as a landlord. You want information and communication, and you don’t want to have to wait until morning to notify us of a repair. You should also be able to access everything related to your current Zetland property lease, with all rent information and transaction history at your fingertips. Receipts and invoices are also essential pieces of information that you should be able to get at a moment’s notice.
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