NSW Urged to Address Affordability Issues for First-Home Buyers

The Real Estate Institute of New South Wales (REINSW), one of the state’s peak real estate bodies, believes that the state government should prioritise the issues and problems facing first-home buyers. It also appealed for stamp duty concessions for people purchasing their first home.

Specifically, the REINSW is asking the government to introduce a 50% reduction in the stamp duty for first-home buyers purchasing a home valued at less than $1 million and allow payment of the stamp duty over time.

According to REINSW president John Cunningham, the government not supporting first homebuyers could produce risks that the state’s best and brightest will be tempted to relocate to other states where they can realise their dream of home ownership.

Image source:http://bit.ly/2a7ixJP

However, there are others who believe that people who are just starting out should moderate their expectations.

Rich Harvey, chief executive officer of propertybuyer.com said that the younger generations tend to believe that they can secure the best when they purchase their first home and all they have to do is to scale their expectations.

Price Perceptions

Some suburbs and property types may be beyond the reach of those looking for their first buy. But Harvey says that coverage of record price gains in markets like Melbourne and Sydney distort the public’s perception of prices in other locations.

Many people want to purchase in the area where their parents are. If you grew up in a blue chip neighbourhood like Mosman, a median price of $2 million may be out of your reach and you may have to find at other locations.

In Sydney, the median price is $1 million and in Melbourne, it is roughly $750,000. These numbers are certainly creating a belief that property is pricey all around. However, buyers have other options.

For Sydney, consider Newcastle and Wollongong as your satellite suburbs north and south. There are also less expensive alternatives in the outskirts of Melbourne as well as Brisbane.

The median prices in Newcastle as of July 2016 are $900,000 for buying and $425 per week for renting a house; and $572,500 for buying and $420 per week for renting a unit.

Harvey is not in favour of subsidies for certain segments of buyers, but he believes there are steps lawmakers can take that would create a more fluid real estate market.

He prefers stamp duty to be lowered, not just for first-home buyers, but to all buyers. It is an obstacle to property trading.

A lower stamp duty could entice the older generation to downsize and put up older housing stocks for sale, creating more alternatives for people who are looking to purchase.

7 Ways to Prevent a Decorating Calamity

Home decorating is similar to clothes shopping: you desire something beautiful, fits your style, and is comfy and affordable.

Below are seven major decorating tips you should know before getting started.

1.   Identify your decorating targets
Are you renting, selling or nesting? Your response will have a major influence on your method. In general, there are no limits if you are redecorating for your family and for yourself. You can take a shot at all your ideas, whether it is unusual colour schemes, statement decorations or mismatched furniture selections.

Conversely, if you are preparing your home for rent or sell, it is best to take a more conservative approach. Your dwelling should be presented as a blank canvas so prospective tenants or buyers can easily envision themselves and their possessions belonging in your home.

2.   Be a bowerbird
Once you begin pondering a decorating project, begin purchasing magazines, looking at websites and carefully studying your friends’ dwellings. Look at building materials, finishes, colour patterns, furniture and decorations you prefer, either taken from pages of magazines or an online resource.

Then, examine all the pictures in one sitting and identify what themes come out. You may uncover a liking for subdued green walls, or that while you love Scandinavian design, your partner prefers Art Deco.

3.   Be Stylish, not fashionable
When you’ve determined you favourite style, and if needed your partner’s, it’s time to begin. However, what happens if you have contrasting styles?

It shouldn’t be a major problem; just establish some common ground between your preferences. After all, good design is good design, whatever the era is. A simple way to create balance to a room is by sharing a motif or highlight colour.

Though one room is ruled by a specific style, implementing some traces of this look in other spaces of the property can transform your property from erratic to balanced.

4.   Think like Coco Chanel
When I worked in the beauty industry I remembered hearing Coco Chanel’s great rule for dressing: when you’re just about to go out the door, view yourself in the mirror and get rid of one item. A similar principle is used to any space in your home: when all the pieces of furniture have been placed inside, remove one piece.

That item can always be swapped back in later (as long as another item is removed) and your spaces will feel roomier and more comfortable, as a result.

5.   The perfect bedroom
Your bedroom should serve as a haven, so think twice before introducing a look that’s excessively dramatic. Warm tones (with a bit of red or yellow) will create a cosy and inviting feel in your bedroom; cool tones (with a bit of green or blue) will generate a soothing and relaxing mood.

Space and light are also essential, so choose a bed that is just right not the largest your room can accommodate.  Then invest in some chic bedside lamps that are easy to change when you don’t like them anymore.

6.   Your living room is not a showroom
Mix and match your furniture to shun the furniture showroom look. You can also display your individual style with this. Follow this rule of thumb: ensure that your couch and armchairs differ, with contrasting coverings (such as fabric versus leather), shapes (like rounded versus angular) and textures (consider bent plywood versus chunky fabric).

7.   Turn kitchens and bathrooms into workspaces
Ensure that your kitchen and bathroom have sufficient light, space and storage. You have to get these two rooms right, particularly if you’re renting or selling. Enhance natural light with artificial light in the workspaces, and put sufficient storage to provide each appliance or gadget a home. You should also fight the impulse to clutter the areas with lots of unnecessary items.

Something I personal like to do is use Pintrest to create a storyboard.  This can help you visualise your styling ideas.  Visit mine at https://au.pinterest.com/APPinkerton/ you can even make a secret board so only you and anyone you personally choose can see it.

​Have fun styling! 

The Different Methods of Selling a Home

 

You have more than one way to sell a property – and you may have a specific manner by which to accomplish it. Below are the most common methods of selling a property:

Auction
A popular method of buying and selling property is through auction. A reserve price, the minimum price you are willing to sell your property, is set by you and your agent. The auction is conducted by the agent or auctioneer on a specified date. Conducting an auction is covered by laws, so allow a professional to do it. If your reserve price is not met, you may negotiate with the highest bidder through your agent.

The sense of urgency and competition amongst buyers in an auction can result in a higher price for your property. However, buyers can also be put off by the prospect of an auction. It is better to talk to your agent to see if auction suits you best.

Tender

Before advertising and showing the property, you and your agent set a price range but it is not advertised. Prospective buyers are invited by the agent to formally submit their best offer along with their terms and conditions on special tender documents, which must be submitted by a particular date and time. When the set date has passed, the tenders will be delivered by the agent and presented to you for opening. You can opt to take the highest tender, open negotiations or re-list your home if the price you wanted was not met. This method is similar to an auction but without the stress.

Asking Price / Private Sale
Buyers find listings with an asking price most appealing because this method is less daunting and simpler to figure out. As buyers will normally attempt to negotiate for a lower price, better talk to your agent about your expectations. Private sales can take a longer time because there is no sense of urgency like an Auction or Tender Sale.

For more information about any of these methods and to find out what will suit you best call me directly on 0418447856.

Annette Pinkerton – the Newcastle Real Estate Agent who enables you to turn the key to where you want to be!

 

Purchasing Old versus New Properties

Image Sources:http://oneagency.com.au/listing?listing_id=270132 & http://oneagency.com.au/listing?listing_id=280039


It is usually better to buy new when it comes to cars, televisions or washing machines. But when it comes to purchasing a house or an apartment, is it better to buy old or new?

Here are the pros and cons of buying both old and new property:

Buying old property
Investing in established property usually pays off because you can compare and physically inspect the property, not just the fixtures and fittings but with other properties on the market as well.

Structures and aesthetics

  • A lot of old properties are guaranteed to be sound structurally and aesthetically.
  • Period homes are popular to many buyers, renters and investors.

Comparable in the market

  • You can physically inspect the property
  • You can compare the properties with other similar sold properties, allowing you to come up with an estimate of the value of the property.


Value add opportunities

  • Developers and builders can sub-divide in an effort to maximise land value
  • Investors can renovate to bring new life to property and potentially raising its profitability


Buying new property
Investors buying new property can enjoy huge savings, tax depreciation and added luxury it can offer.

New homes come with much larger tax depreciation benefits, which would allow investors to cut down the holding costs of their investment property.

For example, in New South Wales, an investor could potentially save more by buying a new property off the plan rather than an old home. On new homes that are worth $550,000 and concessions for those valued between that and $650,000, the New South Wales First Home-New Home scheme offers an exemption to stamp duty fees.

Deals and incentives

  • Tax depreciation benefits can lower the property’s holding costs
  • Savings reaching in the $1000s from huge stamp duty benefits


Constructed for modern lifestyles

  • New homes typically need less maintenance
  • They are cheaper to run, lowering ongoing expenses, thanks to their low energy ratings
  • They often feature luxuries such as swimming pools, ensuite bathrooms and theatre rooms. These can be expensive when added to an established property.


Unique and boutique

  • Return on investment can take longer for larger properties and high-rise properties, but good immediate capital growth potential is easy achievable for small sub-divided areas in established suburbs.
  • Search for unique, boutique properties in low supply locations.


Old property: risks and tips
The growth potential of established can be easier to predict but not doing your homework can open you to certain risks and hidden costs.

To avoid nasty surprises later on, hire building inspectors, surveyors and solicitors/conveyancers specialising in property.

Maintenance problems

  • Structural problems can be found in older homes, so consult with a building inspector before deciding to buy.
  • If more work is required to give the property you are eyeing in working order, a building inspection might provide you an advantage in negotiation.


Easements / caveats

  • Your plans for the property may be affected by easements or caveats on the title.
  • Ensure everything goes without a hitch on settlement day by checking ownership on title and vendor warranties.
  • Get an independent pre-purchase contract review from a solicitor or conveyancer who specialises in property.
  • Meet with council and building surveyors before renovating or sub-dividing to ensure your plans are legal.


Emotional buyers

  • Property prices at auction can increase because of emotional buyers.


New property: risks and tips
Doing your homework is essential when buying new. For investors, it is important to find out the areas where there is a good chance of a limited supply. If you’re a prospective homeowner, hire a solicitor to extensively review the contracts of sale to make sure you are not exposed to delays.

Erratic growth

  • Growth in value may be slow in similar properties in the same area, far from the city.
  • There could be a glut of apartments built in newly zoned location, which could make them hard to rent out.
  • If investing, be wary of growth corridors as it could take a while for you to see capital gains.


Potential added costs or delays

  • Delays are possible in the delivery of the finished product and likelihood of inconsistency in price.
  • Check the sale contractors of new homes by enlisting the services of a solicitor.
  • Pick developers wisely and do background checks on related parties.


Purchasing new or old in the current market
The market was on the rise in 2015, making it hard not to overpay. The market is starting to correct in some areas of Newcastle, so there may be more opportunities for buyers who got left out last year – for both new and established properties.

Old properties were really big in auctions last year; it was a little difficult not to take risks and I did hear some stories of buyers accepting the sellers pest and building report instead of getting their own. It makes sense to insist on your own building inspections report before you sign anything regardless of the method of the purchase.

If a building inspection discovers $50,000 worth of problems in a property that you want to purchase, then you may have more room to negotiate on price, as you are basing the price on fact, not on what you want to pay..

Thorough research, knowledge and expertise are needed to make sure you purchase the right property in the right area to maximise your capital growth potential and/or rental return.

Whether you are purchasing new or old property, don’t be swayed by upfront savings or emotional attachments. Choose the right property and area that is low maintenance in labour and costs with no hidden surprises. These properties offer more opportunity for capital growth and rental income.

And finally, always talk with your agent about everything.  The more they know the better they will be able to assist you.