Tuesday, November 25, 2008

Auctioning Advantages

The Advantages Offered by Auctioning

Martin McNamara of Australian Property Monitors touts auctions for enticing buyers before an actual price is set — providing the agent gets the price range right.

“If it’s a unique property or one that will get a lot of interest an auction is the best way to determine the true price. People can come to open inspections and evaluate the property independent of the price — they can develop an interest for the property first rather than being tainted by the price.”

So McNamara warns: “If you over-egg the cake a lot of people won’t be prepared to negotiate. That’s why sometimes if you’re not absolutely confident of the price you’re putting on your property you should take it to auction.”

Auctions require an intensive 3-week lead-up campaign. As an example a $700,000 property can cost $10,000 to market for auction. While initially this is more you do have to take into account that the private treaty marketing period can drag on for months because there is no cut off date and no set program.

One thing an auction does is it gives you the opportunity to get top-dollar. All you need are two interested parties who really want it and you’re away. On the other hand as Louis Christopher says: “The auction price will only be as high as the second highest bidder’s price.”

If you’re considering selling feel free to contact myself Noel Thompson Principal Professionals Logan Lifestyles on 0418 517 525 or to call into our friendly offices at Browns Plains or Waterford for immediate assistance.

Thursday, November 13, 2008

Selling Pointers Planning

Selling Pointers

If you are planning to sell a property, here are some tips.

Be sure to promote your property. Make sure you invest sufficient funds to allow your agent to do their job properly. Keeping your property a secret will hinder your chances of success.

Plan to use your funds to promote your property. Don’t rely on agent-paid advertising. Skimping on advertising monies may come back to haunt you in the form of a lower selling price.

Let your agent tell you the best mix of newspaper, proper signage, internet, window cards, open inspections, etc. A coordinated mix of strategies works best and your agent has all the experience of their other properties.

Maintain flexibility. Don’t stick to your guns unnecessarily. If your marketing strategy isn’t working then change tack in one or more areas.

It’s extra important to realise that an early offer in your sales campaign that’s reasonable will often prove to be your best offer. Plus if you’re buying then it will enable you to move more quickly to buy back into the same market so you can also get a similar fair price.

You must also stay in tune with the market. While you can’t control it you can at least follow it. Properties that are priced right always sell no matter what the market conditions happen to be.

If you have any questions about real estate or would like assistance in locating a property feel free to phone me Noel Thompson Principal Professionals Logan Lifestyles on 3299 7733 or 0418 517 525 or to call into our friendly offices at Browns Plains or Waterford for prompt attention.

Property Manager Role

The Role of a Property Manager

The first thing a property manager does is help to keep you legal in everything you do relative to your tenant. It is the manager’s job to thoroughly acquaint themselves with the obligations and responsibilities of both the landlord and the tenant including any new changes in the law.

The next thing is that a property manager will greatly assist in choosing the right tenant one who will pay on time and properly care for your property. By formalising the screening process you remove the onus of having to vet the various applicants yourself. Plus property managers can access credit reports and know how to interview references.

Keeping your property in tiptop shape is important to attracting tenants. Your property manager will not only field any tenant calls for repairs on your behalf but will also periodically inspect your property to see that it’s being properly maintained. They also only use reliable tradespeople whom they can employ as needed.

On top of this your property manager will handle all transitions in tenancies making sure a condition report is properly filled out at the outset and that the final inspection professionally assesses all wear and tear on the property to determine any needed repairs maintenance or damages.

They will then attend to collecting any outstanding debts, and don’t forget the monthly collections of rental and slow payment follow-up that’s part of their on-going services.

If you are an investor and would like to talk about managing your property feel free to phone Noel Thompson Principal Professionals Logan Lifestyles on 3299 7733 or 0418 517 525 or Sandra Reynolds Senior Property Manager on 07 3299 7733 or call into our office at Waterford for immediate assistance.

Wednesday, November 12, 2008

Buying the Right Property

Tips for Buying the Right Property

A simple rule of thumb for investors is that you most often make your profits when you purchase the property. So buying at the right price becomes paramount.

By focusing your research and time on a particular geographic locality, you can develop an “investment comfort zone”.

So the first thing to do is to choose a geographic locality in which to concentrate your study of the market. You might choose an area of high capital growth. Or maybe just your own neighbourhood.

The best places for investment have good rents, low vacancy rates and are popular places to live.

You’ll also want to choose an area you can afford to invest in. No point in looking at areas in which you can’t afford to buy.

Now that you have chosen your area, the next thing is to develop your expertise in that same locale. Study price ranges, rental market data including vacancy factors, plans for potential infrastructure additions, planned developments, employment statistics and trends, school locations, transport, and local council matters. The latter includes town planning and zoning rules and regulations.

The next step is to acquire investment skills such as negotiating techniques, knowledge of
finance, tax laws, and risk minimisation. All this will aid building an investment portfolio.

Finally is the ability to act when the right property arises. Because with all of the above, bargains will start to stand out to you.

If you have any questions about real estate or would like assistance in locating a property feel free to phone me Noel Thompson Principal Professionals Logan Lifestyles on 3299 7733/0418 517 525 or to call into our friendly offices at Browns Plains or Waterford for prompt attention.


Federal Government First Home Saver Accounts

First Home Saver Accounts

The Federal Government has instituted a new savings plan for First Home Buyers. The idea is to assist Australians to boost their savings for a deposit on their first home.

In order to be eligible for the tax-free withdrawal for a first home, the owner of the account must have put in a minimum amount of $1000 per calendar year for four financial years.

However, the contributor can be anyone. All contributions must be from after-tax income and a tax deduction cannot be claimed.

The Government will make a flat 17% contribution on the first $5000 of savings to the First Home Saver account in any year.

Investment earnings (or interest) that accrue in the account will be taxed at a maximum of 15% as well. But all Government contributions will be tax-free.

Withdrawals from a First Home Saver account which are used to purchase or build a first home will be tax free. The First Home Saver account has a $75,000 balance cap, after which no further personal contributions can be made.

The Scheme will commence from 1 October 2008.
To open a First Home Saver account you will need to:

• Be aged 18 to 65
• Have not previously purchased or built a first home in Australia to live in
• Not currently have or previously have had a First Home Saver Account
• Provide a tax fi le number.

If you have a real estate question or need, feel free to phone me, Noel Thompson, Principal
Professionals Logan Lifestyles, on 0418 517 525, or to call into our friendly offices at
Browns Plains & Waterford for immediate assistance.