Know When to Buy and Sell Property

There have been many observations about an apparently sluggish start in the property market. However, it is mostly founded on the fewer than 5000 capital city auctions that have been finalised to date. The roughly half-a-million residential property transactions annually in Australia is too small a number to form a verdict to the year.

The commonly sluggish start to the auction calendar year points to a wide-ranging reality. The property market is never constant throughout the year. Stocks increase and decrease across the 12 months, impacted by various factors including seasons, and school and public holidays.

In any instance, the amount of stock and where it is up or down is the accumulation of numerous good judgements by estate agents and their sellers about the ideal time to launch a campaign for their property. In every situation, thorough consideration will have been performed on the total of identified and probably competition from like properties in the area, and the possibility of the auction day overlapping with high buyer figures.

Miscalculating market tides can cost a seller tens or even hundreds of thousands of dollars. At this critical time, there is a crucial element that is needed.

Tap a real estate agent

Here is where an agent comes in – not just an agent but one that possesses two critical qualities: experience and knowledge of the current market. They also should possess on-the-ground timely familiarity about present conditions.

Needless to say, not all agents possess these qualities and though they may have them, they don’t use them to further boost their client’s interest at all times. In real estate, there is a joke that when an agent is asked when the best time to sell is, they will always says “now” as they worry that recommending a date months away will lose them a client.

This is partly the reason why the gap between supply and demand continues. Other issues also come into play including non-discretionary sellers who aren’t flexible enough to pick the best possible auction date, and the propensity of too many sellers to adopt a wait-and-see attitude before jumping in, and then discovering they’re selling when the market is saturated.

It pays for sellers, as well as buyers, to have a sound grasp of the market tide.

Auction figures are more likely to increase from the beginning of February through to Easter or a little after. Afterwards they decline during winter from June to July, recovering in spring with the highest number of auctions occurring in late October and November.

Due to the ebb and flow in stock, auction clearance rates normally decline from September to December, and to a lesser extent, decline from March to late May.

But from these forces at play, we can glean the best time to sell, and this is typically before mid-March and from late July through to early October. On the other hand, the best time to buy is during late May and late October through to December. It tends to be more balances at other times of the year.

Important Tips for Buying Air Con Systems

Opening windows or relying merely on electric fans to keep you cool during a hot day is often not enough.   A good solution is an air conditioner.

There are so many brands and styles of air conditioning systems out there that it is not easy choosing which one is the right unit to get the job done – especially if you’re buying for the first time.  So here are a few factors you need to consider to get you started:

Energy efficiency  –  Here is how energy ratings on air conditioners are calculated: the amount of energy produced by the unit divide by the amount of energy it takes in.  The star energy rating tells how efficient an air conditioner is. Simply put, the more stars a unit has, the more energy efficient it is.

Size and Capacity – For airing one room or a specific area in the home, it is ideal to purchase split systems. For airing several rooms where there is limited space, multi-split systems are best. There is also the ducted system, which is ideal for anyone who wants their air conditioning system hidden in the roof space or subfloor of their home.

Air purification capability  –  Australians spend over 90% of the time indoors, so it is important that they breathed in good air quality. Aside from cooling and heating your home, split system air conditions are equipped with air purification capabilities. These systems have filters that act as sieves against dust particles and allergens in the air.

Noise levels  –  Noise levels should also be taken into consideration in your choice of air conditioner.  Not only for your own insanity, but also for your neighbours.  There are areas where outdoor units must comply with permitted noise levels, so ask your local council what the laws are to help you make the right purchasing decision.

Reliability, service and warranty  –  Choose a brand that offers a comprehensive warranty on parts and labour. This would ensure you’re covered if something goes wrong with your unit.  You should also check the installation and ongoing services to go with your purchase.  Talk to a professional about your specific heat and cooling requirements to make sure you purchase the right unit for your home – and it is properly installed.

 

 

Understanding the Auction Process

It’s natural to feel anxious on auction day. However, it would help you feel less stressed by knowing how the auction process works.

How will the day’s proceedings unfold in it’s simplistic form?

Prior to auction day: It could take just a few quick minutes to conduct an auction, so make sure you and your agent are clear and agree on the whole process.  Don’t hesitate to ask questions.

Rules of engagement: Your agent is bound by law to show documentation regarding the property 30 minutes prior to the start of auction. At the start of auction, the auctioneer will state the laws governing auctions in general and the laws governing this particular auction. Auction regulations may differ from state to state so ask your agent about the legal requirements in your location.

Opening bids: The auctioneer will call for an opening bid, establishing a sum by which all bids must increase, for example $5,000 increments. Other amounts can be bid, like $1000. However, it is up to the auctioneer whether to accept or reject the bid.  All bids are recorded.

Winning bid: When the reserve price has been achieved, the property is deemed to be ‘on the market’ and will go to the highest bidder. This may or may not be announced by the auctioneer.  If the reserved price is not achieved, the seller will be asked privately by the auctioneer if they’d accept a lower price. After the closing bid is achieved and the seller is satisfied with the price, the auctioneer will say “going once, twice, three times…” and if there are no more bids, will announce “SOLD”.

Paying up: After the auction, the winning bidder, is required to pay an immediate deposit – normally 10% of the purchase price. The rest is paid at settlement day, typically 28 days later.  Here’s an important tip: setting your settlement to suit your buyer can help sell the property. The sale is complete once seller and buyer have signed the contract and the deposit has been taken and receipted.   The property is officially sold when all these have been completed and the sold sticker is then added to the signboard.

 

 

Homebuyer Advice: Buy Old or Build New in Property Market?

Personal preference is a major influence when people make a choice between building a new home and buying an established property. However, before making the decision it is good to know the distinct benefits of each option.

Build a new house
One of several financial benefits that first-home builders get is the $10,000 grant from the State Government. There is also the benefit of lower running costs owing to the use of solar energy, energy efficient lighting and water-saving devices that contribute to reduced utility bills.

A brand-new home comes with warranty, saving homeowners a lot in maintenance costs. Legitimate builders are required by law to provide warranty for a period of time, ensuring that homeowners are covered for any major failures.

In addition, a wider range of finance options are available for first-homebuyers through house and land packages.

There are also non-financial benefits, such as the addition of conveniences such as smart wiring, home automation and modern appliances. The indoor and outdoor living spaces in new homes are better integrated and typically have open plans that fit modern living.

New homes are also safe because there are smoke alarms installed in them and they are constructed with fire-retardant materials so fire won’t spread in nearby houses. Also, they have window height limits to avoid accidental falls.

Buy an established home
Old properties are the better option if the priorities for first-home buyers are location and resale value.

According to industry experts, this period in the real estate cycle likens new homes to brand-new cars, as they lose their value fast. They’ve seen some homes that were just a year old being sold for less than their replacement value.

Buildings continue to lose value over 50 years, but after that, they see a return in popularity and could start to increase in value again.

Most established homes undergo regular maintenance, and first-homebuyers could, at any time, add their own personality and style into the home through renovations.

Another advantage of established homes is that they are typically located in better and more vibrant areas. People could build in established suburbs, but the availability of vacant land in these areas is minimal and the price is often out of the reach of first-homebuyers.

Because of their good location, established homes are within easy access of essential amenities, such as public transport, schools, medical centres and lifestyle facilities. They are usually located near jobs as well as the homeowners’ family and friends.

If you have a specific real estate enquiry and are looking for more information, call me today!