What are the 10 Social Tribes in the Property Market?


Reforms in architecture is critical in order to meet the needs of the nascent real estate “tribes” of the future.

There are 10 groups of social tribes that have started to emerge, but Home-Work group, Social Singles and Multi-Generational Clans are expected to take off in the next 15 years. These new household groups will directly impact how Australian property is constructed, renovated, purchased and sold.

Here are the 10 tribes:
Social Singles
This tribe is expected to become the fastest-growing household type, with over 6% of Australians becoming single-person households by 2030. It is forecast to expand by roughly 2% annually to reach 3 million households by 2030.

Lifestyle Renters
These consist of individuals who will prefer to rent in a location that may be beyond their means to purchase to allow them to live where they want to live.

Home-work Tribe
One in three workers will become freelancers by 2030, hence the emergence of this tribe. The Home-Work group desires space where they can work and live at the same time and where there is fast Internet connection, sliding partition doors and flexible building design to let them fashion their abode according to their requirements.

Nuclear Family
This is the traditional nuclear family household comprising of mum, dad and children.

Multi-Generational Clans
This group, which comprises children, parents and grandparents living in one house, is also expected to grow. The resurgence of Multi-Generational Clans is attributed to the rise in Australia’s multiculturalism, which is remains the custom in many parts of the globe.

Property Accumulators
These are individuals who have been utilising the real estate market as a means to create wealth. This group is also expected to continue to grow.

City Switchers
People will elect to reside in rural regional and smaller towns as a lifestyle choice, as transportation networks and technology improve.

Midlife Flatmates
These are people whose situations have changed and are combining their assets to rent in a nice location together. It is also a means to go through various experiences with assorted people in their homes. This group is forecast to grow through 2030.

Peter Pans
This generation of Baby Boomers, born between 1954 and 1965, will be between 65 and 76 years old by 2030. They are young-at-heart and have no wish to slow down. They will continue to live independently, live as long as possible, aided by the state-of-the-art at-home technology.

Dinks
Childless double income couples.

Realestate.com.au to start offering home loans

National Bank of Australia has partnered with RealEstate.com.au who will offer home loan products beginning in 2017. Image source:https://c1.staticflickr.com/5/4048/4590261336_a9761e902a_b.jpg


REA Group’s realestate.com.au, in partnership with National Australia Bank (NAB), will offer its own home loans starting in 2017, in hopes of capturing a share of the $400 billion mortgage market.

The two companies signed a five-year agreement that will allow consumers to obtain home loans from NAB and other lenders, as well as a realestate.com branded product that is provided by NAB.

According to REA chief executive Tracey Fellows, the partnership will help the company enter the local mortgage market. They will assist homebuyers in their property journey from start to finish, whether they’re buying, selling, investing or renting.

On the part of NAB, the partnership will combine search and home lending in an Australian first, and probably in the world.

The two companies are bringing together their particular expertise to offer more products to property buyers in Australia and deliver a game-changing experience. Both have assembled teams to work together on the development and launch of the project.

Andrew Russell, executive director of financial services, will lead the REA team, while Angus Gilfillan, executive general manager of consumer lending, will lead the NAB team.

Tips to Attract the Right Buyers

Capturing professional-looking images of your property, advertising on the real estate websites and hiring a real estate agent – these are some of the basic steps that virtually all people follow to attract the attention of buyers when they are trying to sell their property.

But attracting buyers is different from attracting the right buyers, the ones who are seriously considering making a purchase.

Follow the tips below to help you market your property to its next new owner:

Conduct Research
Don’t assume that the people who would be attracted to your home would be someone similar to you. Be objective and identify all types of buyers.  View ‘open for inspection’ properties in the neighbourhood and see what the competition is doing.

You could also benefit from talking with real estate professionals to get their advice on your target market, as they are knowledgeable about the type of people who are keen to buy in your neighbourhood as well as the local market trends.

Marketing details
These days buyers want 5 main things when looking at properties for sale.  They want the full address, the asking price, more than 3-5 photos, floor plans with dimensions and a video (not still photos put to music).  

Buyers are time poor just like you so you need to give them what they want so they put your home on their shopping list.  The purpose of marketing your property is to attract the right buyers.  You want to avoid ‘advertising’ the home to everyone. Remember we are after your targeted market.

It is also important to consider where your home is posted and published. The bottom line is, you need to ensure that you use a combination of adverting in print and on the internet to get the highest price.  It’s imperative to make sure that your online marketing and your offline marketing is inline.  In the video above Gil Davis talks about how his research has uncovered that if you combine both print and the internet to promote and market your home, you will not only get the amount back and sell your home in a shorter time, but also sell for a higher price than if you chose not to use the combination.

For more details on how to implement a step by step process to sell your home for more, call Annette Pinkerton directly 0418 447 856 and book your free appointment.

How Much Home Loan Can You Take Out?


The amount of home loan that you can borrow from a bank can be different from the amount that you’re capable of paying.

Think about these things before applying for a home loan:

1. Compute the amount you can afford
Note your monthly income then list all your expenses to give you an idea of your monthly expenditure.  That will then give you an idea of how much is left that could be used to pay off a mortgage.
Factor in an allowance for unplanned expenses and interest rate changes.

Personal debt and the right type of loan also needs to be taken into consideration.

Tips:

  • Income – Follow this general rule: repayments should not be 35% higher than your gross income.
  • Expenses – Take note of your present and future expense, taking into account factors such as having children, and the financial impact of unforeseen happenings such as a job loss.
  • Loan – Your monthly mortgage repayments will be determined by your loan amount, so beware of overextending yourself. The larger the deposit compared to the amount borrowed, the smaller the repayments will be. Calculate how much your monthly repayment will be using any online home loan calculator.

2. Ensure you meet the lending requirements
Different banks, different lending requirements. They will depend on things like the economic situation and how big or small the institution is.

Here are the common criteria:

  • A minimum deposit according to the loan-to-value (LVR) of the loan. LVR is the amount of money you can loan compared to the property’s value.
  • Employment status and present income.
  • Credit card limits and personal debts.
  • Savings history or past repayments history for other loans.

3. Keep in mind the various fees and charges
Each of the loans available to home buyers come with their own respective fees and charges, including Lenders Mortgage Insurance, service fees and fees for various features.

  • Lenders Mortgage Insurance (LMI) is a fee paid to the bank when the deposit is below 20% of the purchase price.
  • Service fees vary in every institution. They are intended to cover the cost of servicing the loan. Hire a legal adviser to go through the mortgage contract as they can tell you which charges are standard and which ones you should not pay.
  • Special features of different loans can include more fees or variable interest rates. For instance, the rate is higher for offset and redrawing accounts than it is for a standard home loan.
  • Related costs can include the amount you have to reserve for conveyancing, home and contents insurance and stamp duty. Don’t forget to consider these costs when buying your new home.

4. Consult a mortgage expert
Your financial situation will determine how much a bank will lend you.
Meet with a financial advisor to know how your home loan will affect your overall finances, and a mortgage broker to find the best deal on a home loan.