We know houses. Others know the stockmarket…

Sometimes the property market and the stock market travel in parallel lines, at other times, one is on the up; the other not so much on the up.   In recent months, both seem to have been travelling quite nicely, so have a read and see what you think.

Dave Limburg is a fulltime trader and stock market educator,  he runs The Everyday Trader website – providing educational packages offering courses in how to trade the market (AND he’s a landscape designer).  He’s written the article below for us.  We thought you might be interested for a couple of reasons.  One, we’re getting lots of questions about whether to put money into property or shares.  And two, here’s a great example of someone who has applied all the right sort of rigour to be a successful trader and still pursue his creative side.  Don’t you wish for that too?

Click through to read Dave’s Stock Market Quarterly Review

And following on from our fixing theme…..

You don’t fix your car yourself do you? Unless of course you’re that way inclined.  Or self diagnose medical problems (apart from the odd Google search of course).  We expect we’ll get professional advice and services.  Given that buying and selling property is one of the biggest financial (and emotional) decisions you’ll make, you should make the effort and invest the time to get the right advice.

There’s been a rush of people wanting to fix their home loans – understandably so.  Fixed rates are at the moment cheaper than some variable rates.  Haley Bellamy from Smartmove has provided us with a few pointers (Thanks Haley!).

“Often when dealing with property transactions people wonder whether they can save a few dollars here and there. My advice is to try to save in other areas and make sure you are always getting the best advice in all areas. When making a property transaction the risks involved are possibly substantial so it can cost you more than it can save you in the long run if you don’t have the right professionals guiding you through.

So what advice do you need?

“Work with a real estate agent who has a great track record – any of the Cunningham’s agents would be happy to discuss their past results with you. They are professionals and even if you negotiate as part of your job they are experienced in this particular type of transaction so will be best placed to get you the top result when selling your property. If you are buying they are known for their professionalism and will help guide you through the process to give you the best chance of securing the property.”

“Make sure you work with a trusted lawyer or conveyancer. I would suggest working with someone who has been recommended to you rather than just letting your fingers do the walking and using someone you have looked up online. Make sure they specialise in property transactions so you don’t experience a clunky and unnecessarily stressful process. Let them arrange a strata inspection in need rather than saving a nominal amount and looking at the books yourself – you risk missing something that the lawyer could have advised you about that may have changed the amount you were willing to pay or even changed whether you were willing to proceed or not.”

“When getting a building and pest inspection if there is something you don’t understand or want a better feel for the likely long term implications just pick up the phone. The inspector will usually be more than happy to talk to you and can explain in layman’s terms what you need to know.”

“Work with a mortgage broker you trust – let them do all the follow up work with the bank for you and if they are a good broker they will have relationships with the banks that enable them to address any issues that come up for you in a way you wouldn’t be able to yourself. They can of course also help you understand the different options available to you. This means getting the best deal and solution for your needs but also helping you take different lenders policies into account if one bank or another mightn’t be suitable if your situation is unique for whatever reason.”

“If buying investment property or using equity in your current property to buy investments of any kind make sure you have a good accountant. There are some areas they may be able to advice you on obtaining deductions you may otherwise have missed yourself. On the same token, having a financial planner can help you achieve your long term goals and protect yourself from unnecessary risk. It is often best to use a planner who is independent and charges a fee for service rather than just relying on commissions as this may mean they aren’t interested in property related strategies.”

“Don’t try to become an overnight expert and risk making mistakes you could regret later – surround yourself with the right people and you can focus on what is important to you.”

Happy house hunting!

 

 

 

To fix or not to fix, that is the question……

Everyone has a different view on this and it does very much depend on individual circumstances.  Hayley Bellamy from ESmartmove has written the following article – from a brokers perspective!  Hope this gives you some food for thought.  This is a good time to look at making some changes particularly if you are potentially on the move or looking to make a change or upgrade.

Haley’s Tip of the week: To fix or not to fix, that is the question!

With historically low fixed and variable rates currently available many consumers are considering whether to fix or whether to stay variable. I wish I had a crystal ball but since one isn’t available I can never tell a person whether they will save more by fixing or by staying variable. Because of this it is usually best to decide what to do based on what suits your personal needs best.

Whatever you decide is right for you, it is important to understand the restrictions with fixed rate lending so you can make the right choices that suit your needs. People can often fix part or all of their lending not knowing the restrictions and how they can affect them in te future and the costs can be substantial.

So, what should you look out for?

1.  You need to be aware that there can be significant exit costs for a fixed rate loan if you sell your property or refinance your property within the fixed rate period.
2. With most lenders, you need to consider a portion fixed and a portion variable as a 100% offset account can only be linked to a variable rate loan (not a fixed rate loan). By having 2 accounts this inflexibility can be overcome.
3. Lenders almost always have restrictions on extra repayments to a fixed rate loan – major banks generally only allow between $5,000 and $10,000 in extra repayments to be made into a fixed rate loan per annum – another reason that a variable rate combined with a fixed rate can provide greater flexibility.
4. With most lenders, when taking out a new loan you get the fixed rate available at settlement rather than the fixed rate available at the time of your application so consider whether you would like to rate lock to secure the fixed rate available at the time of your application. Paying a rate lock fee usually secures the rate for up to 90 days. The fee varies from lender to lender but is usually $500 or above and is often calculated as 0.15% of your fixed rate loan amount. With some lenders paying a rate lock fee means that even if the rate drops before your settlement you would get the higher rate that you have paid to secure (with others the rate lock almost gives a ceiling rate so the rate wont go up but if it goes down before settlement you would get the lower rate).

If you have taken a fixed rate loan the fee to get out of the loan can be very high and would be calculated by the lender at the time. Breaking a fixed rate loan is caused by closing the loan (such as if you sell) or exceeding the limited extra repayments. Because of this it is important to understand that if you fix you wont benefit from any future possible rate cuts during the fixed rate period and that you could incur huge costs if you wanted to change lenders, sell or make significant extra repayments. It is important to take your personal plans into account when you are deciding what is best for you so you have either the flexibility or the security you need.

Happy hunting!

Renovating your garden for sale….

Well your property we mean!

Dave Limburg is a professional landscape designer and owner of Online Garden Design offering custom landscape design packages and DIY guides online. He is often asked how to add value to a property and improve the saleability when renovating a garden in preparation for a sale. Here are a few landscape design secrets that are very effective and simple to implement to ensure that your garden look a million dollars come sale time.

The number one tip to an effective and profitable garden design is to ensure that you create a garden that is low maintenance and well presented. Nowadays people don’t want to be mowing a huge lawn, or pruning a hedge on the weekend. They want to visualise themselves enjoying their garden space, not mowing lawns. The key to a great result with your outside space is the same as inside; tick the emotional boxes.

Michelle Galletti, of Cunninghams Property suggests that a well designed garden not only adds value to the property, but also makes the property more saleable. “Everyone wants to enjoy their outdoor space these days, creating an appealing garden makes buyers imagine living in that garden space, it adds to the emotional pull”.

As with any renovation you need to start at the end, that is work out your target market that is most likely to purchase your house. Your target market and your property value will mostly determine your budget, what elements you add to your garden and how much you spend on each element. Your typical target market for a house on the Northern Beaches Sydney will be a family with two kids. As a rough rule of thumb every dollar spent on the garden should add three dollars of value. So a $10,000 budget should add $30,000 to the value of the house.

A family with two kids will have certain needs and wants – An outdoor area for the kids to play, tough attractive low maintenance plants and a seating area to enjoy outdoor meals and entertain. Appearance is obviously important, but so is low maintenance. Tick these boxes and you will add instant buyer appeal.

While the garden needs to look good, it also needs to be functional. The overall layout of the garden is important, ensure that utilities are taken into account, an area to dry clothes, store the garbage bins and perhaps an outdoor shower. The practical elements are essential to most gardens, however they need not be ugly. If possible hide your garbage bins down the side of the house, or otherwise create a low screen to hide the bins from obvious lines of sight.

Here is a list of some effective value adding elements for landscaping on a budget;
• Paving – An outside seating area is a necessity for a garden in Sydney. People love to use the outdoor space as much as possible including dinning and entertaining. Recycled pavers are a cheap and effective way of creating an appealing outdoor seating area without overspending. Your paved area only needs to be large enough for a table and chairs – 15m2 should do. Pavers for this size area can be purchased for under $300.
• Shade – Ideally a shade sail over the paved area will make the space both more visually appeal, but also more functional. A shade sail is a simple DIY job, it simply involves installing three timber posts and a shade sail kit can be purchased from most hardware stores and installed for around $500.
• Turf – Turf is relatively inexpensive. Couch grass roll can be purchased for about $6 per m2 from most landscaping yards. A small lawn area is almost a necessity for kids, it is certainly a garden element that families will be looking for when assessing a property to purchase – 30m2 would be plenty of lawn to roll around on, set up some outdoor games, or have a splash under a sprinkler.
• Screening plants around the perimeter of the garden are a great way of softening an outdoor space and making the garden look bigger. Tropical plants certainly feel appropriate on the northern beaches and help add to a luxurious, beachy, resort style feel. The follow plants will grow in Sydney’s conditions, require minimial care and pruning, grow to roughly fence height and look great year round; Murraya paninculata (Orange jessamine), Acmena smithii (Lilly Pilly) and Viburnum odoratissimum (Sweet viburnum). These plants can be purchased from your local nursery for approximately $20 each in 200mm pots, this pot size should be approximately one and half metres high plants.
• Garden plants to fill the garden beds should be selected to look great, hardy and of course low maintenance. The follow achieve all of these requirements; Phormium tenax (Flax), Trachelospermum jasminoides (Star jasmine), Ophiopogon japonicus (Giant mondo grass), Liriope muscari (Varigated Liriopes) and Cordyline varieties
• If you are planning to sell in the very near term consider going to your nursery and selecting some shrubs and annuals that are flowering and looking good now, or ideally flowering with scented flowers, these little touches can help boost the overall look of the garden and add to the appeal.
• Mulch – Garden beds always look a lot tidier and more presentable with a layer of mulch on top. Pine bark, or Eucalyptus mulch can be readily obtained for free from local tree removal companies.

So for a little effort and some creative sourcing of materials you can add plenty of value to your property and increase the saleability without breaking the bank. Ensure that you don’t overcapitalise, and you design and build a garden that is both aesthetically pleasing, and low maintenance.

Thanks Dave!

Living in a flood zone. Yes really……

Well we live near and by the water in these parts. If not the ocean, many of our local residents enjoy easy proximity to the harbour, Pittwater and our many rejuvenated lagoons. Take a look at the image above and you’ll see how much water is a part of where we live. Which has us wondering, how have recent changes to insurance policies and flood zones effected people living near or building near our waterways?

It’s worth having a bit of a dig around to find the right information. We found a couple of examples of residents of Albury being told they were in a flood zone and their premiums were going up by 500%! Choke on your coffee kind of stuff. But dig a little deeper and not all the information being thrown around is necessarily correct.

We think with the recent extreme weather there’s still quite a bit up in the air (no pun intended). But take a look at this website and do a bit of your own research too.

SMSFers take note…..

In our travels, we see many people who are looking to buy property for a SMSF. So the conversation has progressed beyond just an investment property to negative gear (usually) to specifically SMSF. Property for SMSF has grown exponetially in recent years, particularly in light of the GFC.

There’s a fair bit of research you need to do ensure it’s right for you though as it’s not as simple as just ‘negative gearing’ as in previous years.

Of course, you need professional advice on how to do it and the legatlities of it all. So be careful. We found this article quite useful in terms of highlighting the areas you might need to look at.

Happy researching.

When wants become more important than needs…….

Needs first, wants second right? Not necessarily when pricing property ACCURATELY. We consistently sell properties in around a month – significantly less than our competitors. Great marketing, qualified buyers, a strong database and precise pricing means we create the right environment to sell property. Happy vendors and happy buyers.

We work very hard to determine the right price, seeking feedback from buyers, thoroughly reviewing our comparable properties, examining even the smallest external factor that may affect the price buyers would pay for each particular property.

So even though as a vendor you may think you ‘need’ a particular price for your property, ultimately, it will be determined by what your prospective buyers want. One of the rare occasions when wants outweigh needs!

Listen and communicate with your agent, that’s the best way to ensure needs and wants of all parties are considered.