Interior Design Tips for Spring

Spring is here. The sun is up longer, the temp is becoming hotter, temperas are getting brighter – start redesigning your home to complement your renewed outlook on life.

So, what’s popular? And how do you get the vibe you want in a cost-effective way. Here are six design tips for restyling your home and bringing an uplifting feel to match your mood.

  1. Channel your inner “Marie Kondo”

Spring boosts your mind and body. So if something in your home doesn’t spark joy, maybe they should be out for this season.

Check out every room – bedroom to kitchen, kitchen to living area – look in detail at everything from the furniture to rugs, artwork, knick-knacks and towels. It’s time to discard them or store them, especially if they no longer bring you joy.

  1. Don’t be afraid of change

At this stage, you should only see things that give off an invigorating vibe. Now, search for new ways to fall in love once again.

Look at every room in your home from various perspectives. This will allow you to think about how switching up objects or re-pairing items from other rooms can create new energy.

Will putting the sofa to a different location in your living area help you view your home in a new way? Even minor adjustments like moving the rugs to different areas can reinvigorate a space.

  1. Up-cycle furniture

What is an enjoyable, sustainable project that lets you save money and more importantly, helps in reducing landfill waste? Yes, it is up-cycling! It generally involves transforming unused, pre-loved furniture and materials into something fresh. Imagine a picnic bench sawed in two and installed on the wall to create a useful workstation, or giving an old wooden ladder a fresh coat of paint and turning it into a carefully curated bookshelf.

Here are some tips if you are new to up-cycling:

  • Begin with wood furniture. Working on wood is pretty simple. Once you’ve got the hang of it, you can move to the next level, like resurfacing iron vintage bathtubs.
  • Give your old furniture a new, contemporary look using Annie Sloan chalkboard. (Don’t hesitate about experimenting with colours.)
  • Use tools that you are comfortable with. Some people prefer traditional tools such as sandpaper and manual hand drills, while others spend on the latest power tools.
  • Enjoy – up-cycling is all about trying out new things.
  • Check out my Pinterest Page for inspiration
  1. Switch to your heart’s content

Seasons change. So when designing your home, consider purchasing two sets of items in varying mood styles that you can change over when it’s summer and the sun is out to bring a brighter atmosphere.

Spring this Year:

  • White or pale pink hand towels
  • Throw blankets made of cotton or linen
  • Natural textures like jute
  • Inspiring artwork that stresses growth and renewal

Winter next Year:

  • Thick, comfortable hand towels
  • Heavy imitation fur throws
  • Cable knit blankets
  • Darker, moody artworks
  1. Green landscape

Colourful blooms come to mind when you think of spring, so there’s no reason not to bring them inside. One of the simplest ways to breathe life into your home’s new season décor is with fresh flowers.

Some of the popular spring flowers include King Protea, Peony, Scabiosa Flower, Brunia, Kangaroo Paws and Geraldton Wax. Organise them in a beautiful dining table centrepiece to create a cheerful explosion of colour in your home.  Here are some more inspiration at my Pinterest Page.

  1. Use colours all around you

More than a season, spring is a feeling. When decorating, use colours that create the vibe you want to feel at home.

Cool tones combined with light neutrals bring a breezy mood. Crisp white is simple and classic, letting light bounce inside your home so you can softly layer hues. To achieve a brighter atmosphere, use tropical colours such as fuchsia pink and tangerine orange.  Check out some other Colour Combinations here!

 

 

 

A Guide to Estimating your Home’s Value

If you’re thinking of selling your home, you’ll likely ask yourself, “What is the market value of my home?”  Not only will detailed property research help you to determine whether or not it is the ideal to sell, but you can meet and negotiate with real estate agents with confidence when you’ve done your homework.

Here is a how-to on estimating your home’s value:

Check out recently sold identical homes in your area

Because location and access to amenities all impact a property’s value, it’s important for you to check out homes that are comparable to yours and have been sold recently (within the past six months or so). Check sold listings on sites such as Realestate.com.au and Domain.com.au and create a list of similar homes and their selling prices.

Compare and rank features

It’s not likely for you to find examples of properties that are similar to yours. But you can rate your home versus identical properties using certain features. Do this by checking properties with the same:

  • Number of bedrooms and bathrooms
  • Building style (for examples, new build or heritage)
  • Land size and size of the home
  • Condition and state of repair – does it require renovation? Are the fittings and appliances up to date?
  • Outdoor features like a garage or off-road parking, swimming pool and gardens

For instance, picture that your property has a Victorian terrace identical to another that sold across the road, however, that property has a larger backyard and back lane access. What this means is that your home might have a lower market value. In contrast, if that property requires renovations and yours has recently been upgraded, your home could sell for a higher price. But regardless, valuation at this period should be considered an estimate.

Monitor the property market

It will always be a case-to-case basis when you compare one property with another. This is why it’s important to know the market in your location and what buyers are looking for property in your area. You have to track the time it takes different types of properties to sell, as well as auctions in your neighbourhood.

Aside from regularly reading property news, you can also utilise tools such as the CoreLogic Home Value Index, which monitors monthly changes throughout Australia. A rise in average home prices in your location will normally follow a rise in the market value of your property as well.

What elements affect property value?

Several factors impact a property’s value, which is why it is a job that is best done by experts. However, consider the following if you want to get a general idea of how much your property could be worth:

General factors:

  • Whether the time is a buyer’s market or a seller’s market
  • Present interest rates and home loan restrictions
  • The general economic outlook
  • The present situation of the property market and average property prices
  • Expected population growth in your location

Property features:

  • The size of the land and property
  • The state of the property and potential for renovation
  • Location, street and curb appeal
  • How many bedrooms and bathrooms the property has
  • Energy efficiency
  • Parking
  • Outdoor elements such as landscaping and swimming pool

What are the usual property valuation mistakes?

  • Comparing different properties, properties purchased too long ago
  • Not being current with market trends
  • Using emotion to value a property
  • Using properties currently on the market for comparison. Don’t forget that the only good indicator of value is the market value, not price guides of properties that are still on the market
  • Using untrustworthy sources of information, rather than reliable industry publications

What is the value of my property?

Volatile best describes the property market. It is the fact that the only way you can know for sure how much your property is worth is when it is purchased by someone. But getting the opinion of a property specialist is a great way to know the present value of your home and help you decide on the right time to sell.

A property agent can also explain finer data details, like the number of days a property was on the market before it was sold, the medium house price in your location and where the property is located, and the auction clearance rates, which can indicate the level of demand for property in your area.

Generally, there are two ways to determine the value of your property without cost to you:

Get a free online property estimate. There are plenty of online tools that give you an estimated value of your property instantly. You just have to type in your address. These free reports give you an in-depth knowledge of your property and the market with detailed information including property value estimate, comparable sales and past suburb performances.

Sign up for a free property appraisal. Find a real estate agent that will visit your property without obligation, and recommend a possible selling price using recent market activity. The agent should also walk you through the selling process and what is included in their service.

First Home Buyers Are Buying Property Using Parental Guarantee

While most of us are staying home and spending less due to Covid-19, saving for a deposit remains one of the biggest challenges for first home buyers.

This is when parental guarantee is being used for this purpose and both children and parents appear to realise the benefits.

What is parental guarantee?

A parental guarantee is when parents offer a property they own as extra security to cover the difference between your current savings and 80% of the value of your future home.

Don’t associate this strategy with affordability, as it is completely a different issue. This is because parental guarantee only tackles a savings or equity deficit. It is not entered into frivolously as it is provided by a mortgage. But it can be discharged once the home has enough equity to be refinanced out or stand on its own.

The following can be provided by a good guarantee structure – as they are not all similar.

  • Restrict the guarantors’ exposure to just this gap and negligible expenses
  • Not obligate the guarantors to refinance or readjust their finances
  • Not obligate the guarantors to provide too much evidence of income. However, guarantors are protected to make sure there is a way for them to end the guarantee without losing their property in case you are unable to continue servicing the loan. Since this is a possible risk for guarantors, it is best to consider other ways like paying it off, or superannuation, or other assets than the family residence.
  • In the worst case scenario, let the guarantors make the payments on the limited guarantee part to end it prior to a discussion of the sale of any of their assets.
  • One guarantee will let first home buyers merge a minor debt – making repayments more affordable in the long run – and free some cash out for home upgrades; only if the guarantors agree.

Those who are buying a home to live in who already own an investment can also avail of this type of investment. However, there isn’t sufficient equity in the home to support the home buy.

To emphasize, these are not designed to put your parent’s home at risk to help you in building your portfolio, but a rational strategy can be used in situations where it’s practical to use a guarantee, and for many borrowers it may not be easy to save and pay rent.

The pros:

  • Hasten your entry into the property market
  • Doesn’t require you to save a deposit (though if you have a deposit saved you can end the guarantee quicker)
  • Access to lower interest rates than if you went in with a small deposit.
  • You can complete upgrades on a low-priced property (which could possibly increase its value)

The cons:

  • Both parents and borrowers are bluntly warned that it’s a mortgage and must be regarded seriously.
  • If you cease making payments, you are putting your own and your parents’ property at risk
  • Establishing it involves certain complexity and time – but not too demanding.
  • Lenders generally require parents to get legal advice, and this is normally done after it is too late for you to cancel the home purchase.

In documents, it will appear to be one loan in most situations, you will be responsible for all repayments and get all the statements. In short, you are wholly responsible.

In addition, the bank will not start the discharge of the second security. This is important to remember and it is recommended that you keep yourself updated on the market.

In most situations, the market will do most of the work in increasing your equity while you keep on making repayments, until such time you can a valuation done on your home, find out your loan has reached 80% of the new value and apply to free the guarantee.

These have no specific time frame but based on experience the time frame is often roughly five years/

With regards to the approval process, get ready to respond to additional questions relating to your income stability due to COVID-19 and any effect it might have had to your financial situation. Borrowers are required to have a good credit history, but on the positive side, where line by line expense analysis is happening for the majority of us we are experiencing lower expenses and this creates a great opportunity to both save and illustrate our capacity to finance our future new home. 

One Agency Annette Pinkerton

Selling Your Property: What You Need to Ask Your Real Estate Agent

One Agency Annette Pinkerton

Selling your home is no different from the home-buying process in that you need to ask a lot of questions from your real estate agent. Selling your home is not something that you do often and with frequent changes in the property market, so ask as many questions as you like to help you prepare and arm yourself with knowledge about the process.

The key is knowing what questions to ask. Here are five of the most frequently asked questions to get your started.

A reliable agent is likely to deal with these issues before you can enquire about them.

When is the right time to sell my home?

It seems like spring is the perfect time to sell a home but it might not be advantageous for all. One home seller has a different situation from another seller, and you should talk about the timing of your home sale with your agent and see what they recommend.

What is the present situation in the property market?

You might think that the best person to help you know the current situation, of the local property market your in, is your local agent. This may not be the case.  These days, agents have so much information at their fingertips so being a local agent doesn’t necessarily mean they are the best choice.  Any agent can tell you the average days on the market for properties for sale in your location and know how fast homes are selling but not every agent knows how best to sell your home.

What can I do to prepare my home for sale?

Making a positive first impression on potential buyers is an effective way to get the price you want for your home. Your agent can help you pinpoint the best spaces in your home to fix and tidy up increasing its maximum value.

What things should I tell prospective buyers?

When selling a home, you should repair anything that is damaged or not woking before putting it on the market. If you’re aware of anything that is a material fact, it will need to be disclosed to your buyer.  By providing this information, you  will prevent potential problems like damages being revealed in building inspection and the buyer withdrawing at the last minute which could also result in you missing out on your second buyer too!

Should I put a high price on my home to allow for negotiations?

Even if you’re tempted, don’t!  Majority of buyers can distinguish value and an overpriced home will turn off prospective buyers who may ignore your home and purchase another one. The wasted opportunities could impede the sale of your property and place you in a bad position.

In home selling, your agent should be your best partner. You should be a team, working together to achieve the best possible results.  

To find out more about Annette Pinkerton and how she attracts the best buyer to your home, visit her about page or call her and book a time to find how she can help you!

Increase in Boomerang Homes Seen During Covid-19

The number of “under offer” listings being readvertised is rising, according to data compiled by realestate.com.au. The trend is driving speculations that deals are failing due to stricter lending restrictions by the banks and hesitation by home buyers.

The number of boomerang homes across Australia, or those properties going back to the market after having an offer accepted, is increasing, as per the week-on-week data from realestate.com.au between January and July 2020.

While real estate agents are not required to inform realestate.com.au of confirmed sales, the existing data shows a trend in homes shifting from “under offer” back to “for sale” instead of the site’s “sold” listings.

Banks tighten up as buyers retreat

At the beginning of the first coronavirus lockdowns, there was a significant surge in the number of “under offer” homes nationally that returned to the market with an increase from 13.08% to 17.9% in the week starting 23 March 2020. The succeeding week the figure declined to 13.76% before falling even more but has moderately increased since mid-April.

It was a very terrible time for the economy and for real estate and for confidence at the end of March. The period was between when the country went into lockdown and the launch of the stimulus packages. There was plenty of uncertainty during that time and consequently home buyers hesitated and banks were being restrained about who they were giving a loan to. This wariness had continued with the country’s rising unemployment.

Though banks are well-capitalised and not under pressure, they are uneasy about the situation, especially the unemployment situation.

Banks being very careful about who they are lending to is not expected to change any time soon.

It was likely the situation is not quite as serious now, even more so with the news that the Federal Government’s JobSeeker and JobSeeker stimulus would be extended until March 2021, though diminished.

Buyers were aiming to take advantage of the low cash rate with eager first home buyers inundating the market. However, their enthusiasm was curbed a lot by banks less willing to lend than before COVID-19 happened.

Financial institutions were implementing stricter methods to make sure customers could fulfill the terms of the loan, and failed deals were the result of this strict process.

Homes being returned to the market is a function of purchase contracts falling through due to the buyer’s financial circumstances essentially changing – and not in a good way.

Though this is not new, it has been magnified during the pandemic as many employed Australians had been stood down and/or had their wage cut.

Tighter lending rules to continue

This trend is expected to continue until the impact of COVID-19 lessens and the economy starts to mend.

Lenders have launched steps and process checks to ensure new borrowers can continue their monthly repayments through to the loan settlement date. As a settlement condition, some are even requesting for updated pay slips from clients.

Lenders are doing this to protect themselves under their responsible lending policies, not extending credit to a client whose earning capacity has changed from the time they first applied for a loan.

Homebuyers should have no doubt that their employment was safe and their income was not likely to change before making a commitment to buy property.

It doesn’t make sense to move forward with a home purchase if you cannot afford the loan and most likely force to sell the property at much greater loss than they might otherwise incur.

Experts also recommend trying to negotiate with the selling agent to do away with the “forfeit deposit” clause in the contract of sale to safeguard the buyer’s funds.

Add Style to Your Home with These 26 Simple Ways

Balancing functionality, coziness and style seems challenging when it comes to decorating your home. Regardless of the amount of money we spend on good furniture, there seems to be something lacking in the rooms and don’t look like the perfect spaces that appear in magazines.

Sometimes a few small tricks that only need a little of your time and don’t involve spending money are needed to solve the situation.

Here are some tips to make your home look more stylish with little effort.

  1. Give the same treatment to the front door as the indoor

Don’t overlook the first impression you make about your home, even if you reside in an apartment building. A good way to add style to your home is to give the outside of the entrance the same attention as the inside.

Put an object from the interior of your home (not anything precious though), hang a seasonal wreath or decors, refresh your house number sign. It’s also a good idea to use plants, but be sure they get adequate light.

  1. Present items in threes

Like in various fields and disciplines, the rule of three is greatly utilised in styling and decorating. Displaying in threes appear to be more attractive visually and more composed, particularly when heights, sizes and materials offer some diversity.

Start small by experimenting in a tiny nook or table and then employ the idea to various spaces in the entire house. But don’t overdo it, or else the effect won’t come across right.

  1. Layer your rugs and carpets

Professionals employ this trick often to save on costs for client projects or to “cheat” on shoots. Aside from being an inexpensive way to bring a space together, it doesn’t prevent you from having the pattern you like if you can’t find the correct size. It’s also an effective method to determine what you think about a bolder selection and it creates a cosier and more stylish vibe to a room.

You can begin by layering a small vibrant bold rug on top of a larger neutral rug or carpet.

Bathroom renovations can force you to make hard decisions because sometimes the things you want to do are outside of your budget.

  1. Pile your books in different ways

While the typical vertical or a tad tilted pile in bookshelves is usual for a timeless home, other arrangements tell of a bolder style.

Try rotating between vertical and horizontal book stacks in bookshelves. Horizontal piles will interrupt the pattern of the vertical lines and bring more visual attention, so that it is much simpler to design the shelves with other items. Just make the pattern random and not similar throughout, so as not to look heavy on the eye.

  1. Showcase conversation pieces

This trick is more complicated than it seems because you want to avoid displaying your beloved items throughout your home only to find out that nobody is interested.

To grab people’s interest, conversation pieces should stick out from the surroundings and instantly attract attention. You don’t need to travel far to find an object worth talking about. What’s important is that there is a cherished memory attached to them, distant or recent, any object can spark a conversation (even a random photo or a thrifted item.

  1. Create decorative liquid soap bottles

Save your fancy bottle of hand wash after you’ve used up the soap and refill with an inexpensive one. For a simple fix, soak the plastic bottles in warm soapy water until the labels are easy to remove. A clear bottle looks less cheap and much upscale than a labeled one, even if it is inexpensive and is still plastic. Put these fancy bottles in the kitchen sink and bathroom sinks.

You can also add a bottle of random lotion by each sink, to apply on your hand after you finish washing the dishes. This will keep your hands soft and feel more luxurious yourself.

  1. Don’t let dust accumulate

Dust is a style killer. You might think it was only yesterday when you cleaned your house from top to bottom, but dust just collects regardless of how much you clean.

Try to find which surfaces are more noticeable in normal light at home and make sure to wipe them down more frequently in between general cleaning. This will let you enjoy your home and keep stress-free and not get worried when guests come by. So as not to forget, keep an easy cleaning tool, like wet wipes, placed somewhere close to the problematic areas.

  1. Display fresh flowers at random

Put fresh flowers in a vase somewhere in the corner of a room, nothing too central. Much better if the flowers are of different varieties. With the casual look and random placement, you are conveying that it’s something you do normally and for your own enjoyment, without trying hard in impressing others.

  1. Move items between different spaces

We typically employ the logic of moving stuff around in the same room and don’t think about moving things from room to room. The latter is a new way of repositioning furniture and layouts. Plus, many items might look better in a new room or might provide a better use. When you have no time or budget to go shopping, this is the quickest way to update every space in your home.

  1. Have white towels in the bathroom

This is a personal preference, but white-coloured towels create a sense of freshness and cleanliness (make sure they are really clean though). In addition, it’s good to keep more than one towel in the bathroom, as it brings a sense of effortless hospitality and curated details.

  1. Put books on the coffee table

You can instantly add style to a room and provide great entertainment for your guests with books. To ensure everyone enjoys, include books that you love and a couple of different genres. You can have only books piled low, various magazines, table books and photo books. This is also a situation where you can use the rule of three and combine books with decorative objects and small items.

  1. Use a pitcher to serve water

Using a pitcher whether you drink water from the tap, refrigerated or bottled allows for easy access and also looks fancier. It looks cool to take out a pitcher during meals with family or with guests. For a quick, very fancy touch, add slices of cucumber or lemon to the water.

  1. Use the same paint colour and finish on mismatch pieces

If you have plenty of mismatched pieces of furniture that don’t go well together because of their different finish, colour or style, consider painting a few in a similar colour and finish to create unity in the room. Pick a couple of items that are strewn across the room and not too near each other. Don’t go overboard, as even a tiny dose can create unity.

  1. Have placemats on the table even when it’s not meal time

Though it might seem counter-intuitive, this tip actually creates the sense of tidiness at home and order in the family, especially those with children. Another great way to add colour and pattern in minimal doses is by using placemats (only if you like them). The placemats can be plastic, rubber or paper that you buy in stores at low prices. You can also do your own by repurposing old sheets or cutting fabric.

  1. Display a group of identical element

Pick one type of produce in large quantities. Fruit is great and the more intense the colour the better. Vegetables or simple elements found in nature, like stones or wood pieces, also work.

Put several of them in a large vase or bowl and display in a visible location (like a shelf or kitchen counterpart), but not too central, except if you are using it as a table centerpiece. The objective is to create a large visual effect by having an identical element in bulk, so it’s a good idea to use uncomplicated shapes and materials, such as for a glass vase or porcelain bowl.

  1. Light candles in clusters

Collect all your candles and set them in small clusters throughout the house. Examples of good places to apply this trick are the living room and entrance.

Rather than display them individually, it is better to light candles in groups because they will bring a bigger glow, which looks beautiful during the evenings and when you have guests. Additionally, having a cluster of candles burning creates a sense that you do this at random times and don’t do them just for special occasions.

When purchasing candles, avoid the fancy smells and pick the plain white ones, which look timeless and elegant and great for grouping.

  1. Use indoor plants

Take any space to the next level effectively with plants. Aside from offering freshness and colour to a space, plants help add style points to a space when you treat them as decorative pieces when picking their placements.

Experiment with various scale plants and various leaf designs, if possible. Place large plants close to large pieces of furniture or put them in empty nooks. With undersized plants, mix them with furniture parts or use them to complement larger ones (when the rule of three is used). Make sure they receive sufficient light to make them thrive.

  1. Eliminate a few accessories

If you like the “more is more” look, you have a more eclectic style or you’re just trying to identify your style. This is a quick tip for you. Remove a few objects that are on display. Rugs, pillows, decorative items, wall art can be removed one by one until what’s left is a clean slate. You can change things up until you’re satisfied with what you see.

  1. Place throw pillows and blankets over the sofa  

Aside from making a home look cosier and lived-in, light blankets and throws offer a natural way to add texture or colour/pattern to a relatively flat or neutral space. If you prefer only one throw, ensure that it’s carefully folded, but thrown a little freely. If you’re going for two or more, play with the arrangement until the space looks balanced.

  1. Place baskets around the house

Use baskets to fill with stuff before visitors turn up or cart from room to room to collect objects and take items back to their original placements. They look much more luxurious and interesting than they actually are. Placing them strategically around the house makes them feel part of the design.

You can use different sizes and shapes, but make sure they are of the same material or have a common tone to keep noise at a minimum in a quite hectic looking home. In contrast, baskets can be utterly flamboyant in a neutral room.

  1. Take out all packaging and keep products in containers

This simple tip has a lot to do with stylish homes that are defined by a not many details. For all food-related items that you purchase and place on display, take them out of their packaging and put them in neat looking containers. Glass containers are nice, but they can be costly if you need a lot. An inexpensive option is repurposed jam or sauce jars or buying plain porcelain ones. The objective is to avoid a whole matching set, but to use similar materials or colours in order to create a coherent and clean vibe in a pantry or kitchen.

  1. Hang items on the walls

If you’re avoiding dressing your walls because you think art and frames are expensive, then don’t. Frames and even art aren’t needed because any object can be art as long as it impacts you in any way and draws out emotions.

  1. Showcase your hobbies

Don’t hold back on displaying your hobby creations or even equipment. It will, for sure, spark interesting conversations, likely lead to more quality time if you successfully get another person to join and plenty of character added to your home effortlessly. Hang items on the walls, put arbitrarily on shelves or just set it down on the floor.  

  1. Use something surprising to fill a non-functional fireplace

The typical area to experiment with its purpose is a fireplace. Place any item other than firewood inside it and you immediately add style to the space. You can also use the same trick in small nooks, architectural elements, windows with partial or zero view, outdated appliances, and even sections of large furniture.

  1. Layer, layer and layer some more

Layering is the answer if you want a full magazine styled home. Start modestly and add more layers as you feel more at ease with the dynamics of your home. Begin experimenting on your sofa or coffee table. Try the rule of three and various textures, materials, colours until the it you get the vibe right.

  1. Let your home show your personality

The most elegant properties I have seen are either decorated for a photo shoot or are actual homes of fascinating people, that appear a bit dissimilar to what we commonly see, but show plenty of character and style.

The simplest and most effective way to add more style to your home is to integrate more of your personality and your tastes. Create a beautiful space that you’re keen to spend time in and treasure as much as you can. When you wholeheartedly “embrace” your home’s peculiarities, it is easy to impress others.

One Agency For Rent

Planning to Sell a Rental Property with Tenants? Here Is What You Need to Know

One Agency For Rent

If you are a landlord selling your rental property, it could be made complicated if it is presently occupied by tenants. Having people living in the house while conducting open inspections doesn’t have to be a deal-breaker, but there are a few important things you have to be cautious of so as to avoid problems.

Here are some helpful tips when selling a house with tenants.

Can I sell a rental property that is occupied?

Yes. However, you have to consider a few things to ensure you are being mindful of your tenants’ rights during the process and increasing your chances of a stress-free sale.

Your tenants’ rights when selling a property 

While many landlords choose to have their tenants remain in the property and pay rent as long as possible, others like to sell an empty house. Tenants’ rights are different from state to state, so it’s essential to get property advice from an agent who can guide you on all the requirements to ensure you are following the right laws. In general, however:

  • You have no right to evict a tenant if they have signed a fixed term lease
  • You have to send 14 days’ notice to leave at the conclusion of the fixed term lease
  • If terminating a tenancy that has extended from the initial term agreed, there will be a lengthier notice period but differs significantly by state, so be sure to be up to date.

Inspections when selling a house with tenants

In terms of advertising the property to prospective buyers, you need to give your tenants fair notice to vacate the house and to clean up. This means giving your tenants 24-48 hours’ notice, depending on the state where you’re located. Consider doing the following things:

  • Send more notice than is required where possible to keep your good relationship
  • Use a real estate agent with excellent organisation and communication skills
  • Offer inspections at scheduled times so as not to disrupt your tenants’ lives.

Can a landlord sell a house with an ongoing lease?

Yes, even a property with a fixed term lease. However, you must notify your tenants in writing of your intention to sell.  

As stated above, you have to give tenants a 24-48 hours’ notice prior to an inspection, depending on what state you’re located. If you have provided the required notice, you and your property agent can enter the house for an inspection no matter if the tenant has agreed or not, and without a tenant in attendance.

Advantages and disadvantages of selling a tenanted house

Consider the pros and cons when selling a property with tenants.

Pros

  • You will continue to get rental income while the selling process is ongoing
  • Potential buyers could be interested in a house that already has tenants
  • Having a property occupied gives investors the assurance that it has good potential
  • A furnished property always looks better and helps prospective buyers with determining the size of space

Cons

  • You’ll be required to send the tenant sufficient notice prior to inspections
  • Tenants may not show the house properly, which could harm the sale price
  • Tenants could be regarded as a nuisance by buyers who want to move into the house on settlement

How to maintain a good relationship with tenants when selling

Many tenants consider their lack of control over their living situation frustrating. As the landlord, it would benefit you not to alienate your tenants so that the process will go without a hitch and you can be assured that the house is generating income during the sale price. Here are some ideas on how you can do this:

  • Cut the rent to make up for the disruption caused by the open inspections
  • Tell them of your plan to sell as soon as you have decided
  • Give them adequate notice before inspections
  • Be open to inspection time changes whenever possible
  • Let them know about how the process is going so they can make plans

What if the tenant wants to leave when you sell the property?

In several states including NSW, if you fail to notify your tenants at the time of the signing of the lease that you plan to sell prior to the termination of their lease, they have the right to vacate when you notify them that you plan to sell the property.

Depending on your approach and financial circumstances, you might like to sell a house without a tenant. However, as stated previously, it is a good idea to make sure you are generating income for as long as possible. There is no specific time frame when you will find a buyer and settle, so an unoccupied house can be a major worry. Additionally, selling an already occupied investment property to another investor can be a significant motivation for buyers.

So if you want your tenant to stay put, take the initiative and be ready to offer incentives for them to stay like reduced rent.

Having an experienced guide is important if you plan to sell your rental property. Talk to a professional real estate agent to familiarise you on your responsibilities and your tenants’ rights on the issue of selling a rented investment property.

 

 

Be Careful About Buying Property Without Seeing It

Thanks to the Internet where you can find all relevant tools, including videos and research data, purchasing property without seeing it is something fairly easy to do.

However, real estate agents are warning people about this, especially if you will live in the home.

On the plus side, purchasing sight unseen considerably helps in minimising any emotion you might feel on seeing the property physically (love at first sight, perhaps?). The Real Estate Institute of Australia said that selling property sight unseen is rising in popularity with foreign buyers eager to snap up property in the country.

The people who purchase property online do so because they believe it’s the trendy thing to do.

Many median priced properties in the blue chip inner city rings continue to sell well these days and so if you reside interstate or simply have no time, it is probably the only way to purchase as there is a lot of demand, with properties selling fast.

Some people will choose this path because they think they have to outsource to professionals and they may not know what they should be looking for anyway. If it’s a planned strategy, then they might have a better chance of making a better decision.

However, it is dangerous for people who have no clue about what they’re doing and are in danger of making an expensive mistake.

Usually, it’s only the positives and not the negatives are shown in videos and photos. You can use Google Maps to check some things, but you need skills for that.

There may be an electricity station nearby, big blocks of units or burnt out cars next to your property. It’s a costly purchase price and being forced to sell and re-purchase following a poor decision is very costly too.

Tips for Buying Property Online

  • Ask a person you know and trust to check the property out personally.
  • Don’t forget to have an independent valuation, building, pest and strata search carried out. The $1-2k cost is all worth it, even if it takes a few tries to succeed.
  • If it’s an investment property, use a rental manager to look at or at least check it online. A property manager associated with the sale agent is not impartial.
  • Think about hiring a buyers agent. They could take 2% out of your budget but you could save 5-10% by dodging a dud or by purchasing a better performing house.
  • Focus on the figures and the research instead of your emotions. The area is often the most essential feature, all cosmetics can be modified.

Purchasing property sight unseen is not too risky, as long as you do your research. Know what you want, and if you’re largely purchasing for the future and purchasing for its prospects, it is not too risky.

The most major risk is you decide without thinking it over carefully and studying the market and recognising what prices are reasonable. However, remember that foreign buyers are very clever and have checked out all the websites, so they are sure what they’re looking for.

 

 

 

Slash on Stamp Duty Seen as Big Boost for First Home Buyers and Construction Industry

First home buyers and the construction sector will be major beneficiaries under a targeted boost, which will end stamp duty on newly-constructed homes under $800,000 and cut thousands of dollars for homes up to $1 million.

According to Premier Gladys Berejiklian, the adjustment to stamp duty limits would also boost new home construction and create employment as part of Australia’s COVID-19 Recovery Plan.

Under the new amendments, the threshold will increase from the current $650,000 to $800,000, with the concession dropping on higher values before phasing out at $1 million.

Over 6000 first home buyers are expected to benefit from the changes, delivering thousands of dollars in savings for qualified first home buyers.

The changes also increase the stamp duty threshold on vacant lot from $350,000 to $400,000 and phase out at $500,000.

The new changes will only cover newly constructed homes and vacant lot, not to existing properties, and will last for 12 months, which started on 1 August 2020. Other purchases will continue to be covered by existing schemes.

First home buyers would save up to $31,335 on stamp duty on a new $800,000 home, said Treasurer Dominic Perrottet.

Under the existing scheme, more than 93,000 first home buyers have benefited since July 2017. The construction industry will also receive additional support as the nation faces the challenges of COVID-19.

The NSW Government’s $10,000 First Home Owner Grant will also continue to be available for people purchasing a new first home valued at no more than $600,000, or purchasing land and constructing a new first home valued at no more than $750,000 in total.

This means a home owner stands to benefit a maximum of $32,335 if they’re buying a new home and getting the grant.

Here is a table showing the indicative tax threshold changes: 

Property Type Existing Stamp Duty Amount for Eligible First  Home Buyers New Stamp Duty Amount for Eligible First Home Buyers Saving
Vacant Land $350,000 $0 $0 No change
Vacant Land $400,000 $7793 $0 $7793
New Home $650,000 $0 $0 No change
New Home $700,000 $10,445 $0 $10,445
New Home $800,00 $31,335 $0 $31,335
New Home $900,000 $35,835 $20,168 $15,668
Existing Home $650,000 $0 $0 No change
Existing Home $800,000 $31,335 $31,335 No change