Okay.  It’s been an interesting 12 months with its fair share of economic triage.  There’s been speculation about everything from employment, inflation, the price of gold, interest rates and the value of real estate which many would say is where the whole mess started.

Of course the banks are in the cross-hairs for approving loans with repayments that could never be sustained.  But the media who crucify them daily seem to overlook the millions of homeowners who took the plunge, bought and now own real estate they never could under current qualifying rules.

But I digress…

What does the next year hold for property owners?  Will our investments, including the sacred roof over our heads, be worth more or less a year out from now?  It seems the answer depends on where you are.   Canada officially went into a recession and is out.  The US went into a bigger recession and if you go state-by-state, many are still in one (unless you want an apartment in Manhattan which is ‘boomtown’ right now).  Australia never officially went into a recession and prices are great in some areas and down in others depending on supply and demand.  New Zealand just won the gong for being the most non corrupt country on the planet so needless to say everyone wants to live in the jewel of the South Pacific so prices are strong in major cities.

The US Government bailout looks to have worked, however the long term effect of this on the economy is unknown.  Debt levels in the USA have never been anything like where they are today and we’re talking about a country spending more than one billion dollars a day fighting two wars.  The strength of the US dollar and trending inflation are the two big question marks.

General economic views confirm we can look forward to slow and steady growth but I fear this gives false hope to property owners who really want to sell but are holding out for the next big boom.  In fact, an increase in bank mortgage rates is usually followed by a softening in prices.

The best advice I can offer is to speak with your local real estate professional and get a solid local opinion.  Every area and every market is different.  Only your local pro knows.  Click here to arrange a current market opinion with the recommended real estate professional in your area

Article By Ray Wood.
Founder & CEO of Bestagents Real Estate Group

No Australian housing crash, but market could stagnate for a decade: Residex’s John Edwards

Australia’s housing market is not heading for a crash but could undergo a decade-long period of stagnation with house prices declining in real terms, according to Residex CEO John Edwards.

Speaking to Peter Switzer on Sky Business this week, he said a stagnation in house prices was likely if “things continue to the way they are going and the government and RBA do not do the things they need to do” to stimulate a recovery.

“In real terms they are likely to fall marginally over the next decade,” Edwards said.

“A little pessimistic, I know,” he added.
According to Edwards, long-term stagnation only occurs during very severe recessionary or depressionary periods.

However, he said given what was happening in Europe and other parts of the world there could be a global crisis.  “We have one now, but it could get worse.”

Locally, he says the key factor is the unemployment rate.  But he tempered these comments by saying that even in periods when things go badly, property tended to do better than other asset classes.  “The stock market is much more volatile – and you see something [like a crash] much more often.

“Housing remains the best in terms of investment and the lowest and safest risk option.”

Looking at the current capital city housing market, he said the bottom line was that the housing market had improved somewhat over the last few months.
But he said Residex data indicated the housing market was very fragile.
“It has been improving, but it has been in and out of correction in recent times.”

Residex has Australian house prices down around 1.4% to a median of $430,00 for the year to July and unit prices up 0.8% to a median value of $401,500.

Edwards said Sydney was now doing OK and Brisbane is “well out of its correction phase” but Melbourne “looks like it is about to enter a correction phase”.

Edwards said rental rates would rise substantially above inflation due to a shortage of rental property.  “Across the market there are good places to be and bad places to be.”

“Generally the unit market is doing better than houses because of better affordability.
“This is the market that is going to perform best provided we don’t have oversupply issues like markets like Melbourne,” said Edwards.

Calculating the Best Way Forward.

This property is worth considering. This is for sale in Brighton a suburb of Brighton

Click on the video link and watch the property showcase and the surrounding area. Only 30 minutes by train to the Brisbane CBD and 15 minutes drive to the Domestic and International airports, 1 hour to the Sunshine Coast & Gold Coast. A beautiful place to live.

In tomorrow’s budget, the Newman government will scrap the current First Home Owner Grant and replace it with a $15,000 handout to first-time buyers purchasing off-the-plan or newly-constructed properties.

First-time buyers, who purchase an established property, will still qualify for the $7000 grant if they sign contracts by October 11.

But the re-shaped First Home Owner Construction Grant will kick-in on September 12 for properties valued up to $750,000.
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Premier Campbell Newman said the government had responded to industry concerns in “changing” the original First Home Owner Grant.

“The Master Builders Association has lobbied on behalf of the sector for changes to the grant and the Government has responded in a constructive way,” he said.

“This First Home Owner Construction Grant will provide a targeted and sustainable injection of confidence to the construction sector.

“The previous Labor government’s Building Boost scheme was a short-term sugar hit which benefited property investors outside of Queensland.”

More than 5400 First Home Owner Grants were paid in Queensland in the June quarter, compared with 4000 in the same period in 2011.

Treasurer Tim Nicholls said the government had already wiped up to $7,000 off the cost of buying a home by reinstating the principal place of residence transfer duty concession.

The Property Council of Australia had called upon Mr Nicholls to undertake a wide-ranging review of state stamp duty for off-the-plan residential sales and the land tax surcharge, in the hope the LNP’s first budget will reinvigorate the embattled property and construction sector.

However, at a Property Council of Australia luncheon last week, Mr Newman remained coy when asked about the possible extension of stamp duty concessions to Queenslanders buying house and land packages.

The changes:

$15,000 for first home buyers of new and off-the-plan properties applies from September 12
$7000 grant for first home buyers of existing properties to be scrapped from October 12
New $15,000 grant applies to newly constructed homes, or properties bought off the plan

To be eligible, first home buyers must:

Make the property the principal place of residence within one year of taking ownership and live there for at least six months
Not sell the property within a year of moving in
Buy or build at a property worth less than $750,000.

Read more: http://www.brisbanetimes.com.au/queensland/newman-to-scrap-7000-first-home-owner-grant-20120910-25mvu.html#ixzz2620aTNDS

courtesy of : http://news.domain.com.au

But even after finding a number of homes in a suburb that meet those essential needs, what is it that really makes a buyer decide to commit to the largest asset they will ever own and sign on the dotted line?

They are seeking an emotional connection that makes them “fall in love” with a home. Most buyers make that initial emotional connection within the first five minutes of walking through the front door. Why? Because they can generally see up to five areas of the house from there. If they like what they see, it’s “love at first sight”!

Sellers need to imagine they are preparing their home for sale like they are getting it ready for a first date. They need to romance the buyer. Do you remember the process you went through when you embarked on meeting the person you fell in love with? Did you get excited and scared at the same time? Did you go “as is” or did you go all out to present yourself in the best possible way?

I’m sure you didn’t just pull out some old outfit from the back of the wardrobe and hope it would do. I’m guessing you made a special effort to present yourself in the best way possible. I bet you also (females especially) made sure your hair was perfect, your nails were manicured, you brushed your teeth and you wore your favourite perfume (or aftershave in the case of men)!!

Speed Dating: What Happens when Buyers Start Looking? Speed dating gives men and women a mere five minutes to introduce themselves and make enough of an impression to merit a real, full-length date. It takes place in large groups so that each speed-dater has a couple of dozen or so brief chances to make a love connection. First impressions make or break the outcome.

Much like speed dating, buyers on the hunt for a new home do something similar. They have their list of homes that they have found in the paper or off the Internet, and armed with a GPS and the open home inspection times they move rapidly from house to house over a brief period of time in their own quest for “house love”. And just like in speed dating, positive first impressions are crucial for getting your home sold, because buyers are comparing several properties within a very short time span.

To sell your house fast and for the best possible price, your best bet is to create a sensory event that bombards the buyer with an emotive reaction. As with finding your life partner, you want your home to;

Look good – Smell good – Sound good – Feel good
Let your buyers know that you care enough about your home and how they are going to react by going to the trouble of dressing your home to impress. Entice your buyers to discover the love of their life in your home!

Around 4,000 delegates and 3,000 international media are expected to attend the event, which is likely to be held at the Brisbane Exhibition and Convention Centre. An invitation to the November 2014 meeting is extended to leaders of the world’s 20 largest economies.

Leaders from other regional cities including the Gold Coast, Townsville and Toowoomba had previously indicated an interest in hosting the international meeting of finance ministers ahead of the summit in Brisbane.

As many as 2,000 people will visit Cairns as part of the meeting, giving us the opportunity to promote Far North Queensland to the world.

“The reef, the tropical rainforests, its a tremendous opportunity to showcase a part of Australia which is the gateway to the emerging world in Asia.” said Wayne Swan.

The G20 meeting has the potential to provide a huge boost to the Cairns economy then and into the future, including accommodation, hospitality, transport and tourism.

global.remax.com, the first truly global resource for consumers, with hundreds of thousands of home listings in countries around the world has officially been launched here in Australia and is now live. The site features customised search tools that allow our potential buyers to search for properties in 30 languages, translate currencies and find the latest international real estate news.

RE/MAX Australia members are now able to show their sellers how buyers can view their properties in their native language and currency, regardless of where they are located along with guaranteeing exposing their clients properties to a worldwide audience.  Did you know that over 20% of Australian households do not use English as their first language!  Just one huge benefit of why the marketplace should list with a RE/MAX agent.

“We’re seeing an increasing number of foreign buyers looking for property in Cairns and all of Australia and vice versa. global.remax.com is essentially a one-stop source for residential and commercial real estate, no matter where you live.” said Michael Davoren, RE/MAX Australia Managing Director.

RE/MAX has a presence in more than 80 countries, a global reach far greater than any competitor and the power of such a site of this scale will open the doors to international business.

Or live in the home and enjoy the great size back yard for the children to play. Perfect location, walking distance to the Deagon train station, shops and schools.

Have a look at the video.

 67 Loftus St, Deagon.

Good Investment for the

Right Person with the Right Ideas’

  Offering a multi-unit  dwelling with four units on a great size 802m2    corner block.  Set on two lots, in good condition and returning approximately $860 per week.  A     perfect opportunity for the astute investor with a solid return of approximately 5%, with future potential to achieve an estimate of around 6.5%.

Featuring:

· 4 units – all 2 bedroom

· 2 units upstairs, 2 down

· Each unit has 1 bathroom and a separate toilet

· 1 upstairs unit has a bonus sunroom

· Communal laundry

· Off street garaging

· Low maintenance brick and tile building

 An ideal avenue location only a short walk to the waterfront,  public transport and shops and the enjoyment of the Sandgate      lifestyle with its kilometres of walking tracks and cycle ways, kite surfing, sailing and golfing.  Only 30 minutes to the Brisbane CBD, 20 minutes to the Brisbane airport and close to main arterial roads to the Sunshine and Gold Coasts. 

 Opportunities like this don’t come along every day so be quick to take advantage of this great buy, great return and great potential for   capital growth. 

 Disclaimer: This brochure is prepared by 2^nd Avenue Realty. Every effort is made to ensure that the contents are accurate at the time of publication. 2^nd Avenue Realty takes no responsibility for any action that may arise from this brochure.

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Prime Cuts

With Campbell Newman sweeping into office as Queensland’s new Premier, this week, the State’s beleaguered housing sector is hoping for a boost. More than a year after Queensland’s floods and natural disasters, the State’s housing market is still one of the weakest, with Brisbane’s residential prices down and values in North Queensland, the Gold and Sunshine Coasts savaged. property Council Queensland executive director Kathy MacDermott expects the change will inject confidence into the market, but it will take time to translate into increased prices. She says the government will restore the $7000 stamp duty concession (principal place of residence concession) for the family home within its first 100 days.

Some predictions from 4 Industry specialists:

“This year is lining up as one of two halves, where the first is quite weak, reflecting pre-rate-cut times, and the second half strengthens.” John freedman, head of property analysis, UBS.

“The November rate cut translated immediately into a significant jump in property transactions for our group. we’re seeing a return if 1st home buyers, confidence and sales.” Brian White, chairman, Ray White Group.

“By mid-year you’ll really ss 1st home buyers back and we’ll see activity in the middle-ring suburbs.” Jason Anderson, senior economist, Macroplan.

“The outlook is murky. there is general economic uncertainty which is not specific to housing, but what we can say with confidence is that Australia will cope. we don’t see a doomsday.” Harley Dale, chief economist, Housing Australia.

The residential property market for 2012 is going to get better, unless they get worse, and some parts of it will just go sideways. They are surprisingly confident of as strong & robust year.

“The best bets for 2012 are Perth followed by Brisbane. Sydney is solid as a rock. But don’t expect much in Melbourne ’til the third or fourth quarter,” says Andrew Wilson, senior economist at research house Australia property Monitors.

“Canberra is a good prospect: there’s always shortage of housing,” he says

Jason Anderson, senior economist at proeprty research and forecasting hosue macroplan, says: ‘Sydney and Perth are the two that will outperform in 2012…”

Wilson says Hobart and Adelaide will”move sideways for most of the year” … and Macroplan’sAnderson believes Adelaide is “in for a bit of a rough time for the next 12 to 18 months.

The Canberra-based real Estate Institute of Australia could’t be more forceful inits position. “Well despite what you’ve heard there is no housing bubble so don’t expect to see housing market crash this year or next year,’ says REIA chief executive Amanda Lynch “property is a sound investment…”.

Wilson belives Darwin will resume its usual growth pattern and strengthen.

‘As for Perth…, its housing market is still 10% below where it was 4 years ago… I expect double-digit price grwoth in perth by the end of the year.”

Not everyone is confident about Brisbane. Brian White, chairman of the Ray White real estate group, describes Brisbane as ‘subdued” and L Janusz Hooker, chief executive of LJ Hooker real estate groupsays “it’s not taking off by any means but after the big price falls there, we might at last be seeing a floor.”

Those lower prices, Hooker says mean ‘there are some great bargains to be had - as tehre on the Gold Coast and, to a  lesser extent the Sunshine coast.’

Kevin seymouir, executive chairman of the Seymour Group, a queensland development and investment company, believes the overall Queensland market will be sluggish except in mining towns such as mackay, Rochampton, townsville & gladstone, where he expects to see strong price growth.

for JPMorgan economist Ben Jarman, a characteristic of the ASustralian market is poor housing stats. These fell 6.8% in the September quarter last year “the fourth significant decline in five quarters”, and he predicts more weknesses to come.

To sum up, with the economy comparatively solid, rates falling and housing stock in short supply, the likelihood is that prices will continue to hold or, more likely, rise.

‘Most property markets around Australia would be happy to put 2011 behind them. Some good news where sales of new homes rose in November after a  performance – sales fell to an 11 year low in September 2011. In the latest numbers , the country’s largest 100 builders reported a 6.8% rise in new home sales for November 2011, the same month the Reserve bank dropped interest rates.

NSW was the strongest with a 22.8% increase. In Victoria sales rose 11.6%, WA 5.7% & Queensland 4.7%, while sales fell in SA.

While the numbers are off a low base, the December interest rate cut & possible further rate falls should lure 1st Home Buyers & help the new homes market along”

Real estate prices have dropped by approximatley 12 to 14% over the last 12 to 18 months. It is a great buyers market and you know you make your money not in selling but buying a property.

Formed in 2009, the Helper Agent® organisation has grown, under the guidance of Executive Coach, John McCann.  Helper Agents® are accredited by OrgPsych, an Australian based company leading the way in organisational psychology for today’s business. OrgPsych provides ongoing mentoring and training to all Helper Agents® to ensure they deliver a service based on genuineness and that they maintain their           commitment to uphold strict values and principles.

The exciting journey of self-discovery, self-management and self-development opens up new opportunities for professional and personal fulfilment and achievement.  With over 40 Helper Agents® Australia wide, this elite group are the  ‘New Age in Real Estate’.

Helper Agents® are associated with and can have automatic accreditation to High Ideals.  This highly respected group of people aim to promote and strengthen the values of integrity, positivity and impact amongst the wider community. Individuals must demonstrate and be assessed on their values and actions before being accredited as a High Idealist.

I have recently joined 2nd Avenue Realty and have been here for 4 weeks now and time does fly. I have meet some lovely people in the  Sandgate area and have really enjoyed my walks along the foreshore.

The staff at the 2nd Avenue Realty office have been very welcoming and supportive and they are all very happy people who obviously enjoy their work environment.

I am an accredited Helper Agent®, along with Gai O’Driscoll (The Principal)  and Executive Assistant Fiona Blightman. This is one of the main reasons for joining this Helper Agency in Sandgate.

I believe in the old traditional values of respect, integrity and genuineness and I am very passionate about helping people with their needs.

I look forward to meeting new people and helping them. Building lasting relationships with my clients and future friends is a bonus.

if you are interested in selling your property or need help buying a new home please don’t hesitate to contact me.

I do love a game of golf and if anyone would like to play a round please contact me

Regards Dianne

A) Devastation Everywhere

There would not be one person who wouldn’t have been affected by the devastation that has occurred over the last three months in Australia. The enormity of the damage will take some time to heal and the ripple effect will take even longer.

The 4017 area was unscathed and the only damage was the occasional dampness, mould, and leaking roof.  The foreshore attracted many people as the pontoons that had broken their moorings appeared to bounce along and beach themselves, and with them came water tanks, loads of shoes, thongs and the not so friendly snakes, etc.

A lot of people felt helpless and wanted to assist in some small way and others had the opportunity to roll up their sleeves and get on with the job of cleaning up the mess.  Praise must go to all Australians who have so far done an absolutely fabulous job and should be extremely proud of themselves. The work will not be over for sometime and we hope that the good work will continue.

To all those who have, or knew someone who has, lost possessions, or have someone dear to them who has tragically lost life, our thoughts and prayers are with you.

2) Dianne’s Funny Facts

1) When cats are happy or pleased, they squeeze their eyes shut

2) Some Chinese believe that swinging the arms cures headaches

3) Laughter is a proven way to lose weight

4) The tradition of brides carrying a bouquet of flowers started with the brides trying to            hide their body odour.

5) Frogs use their eyes to help them eat their food: frogs can pull their eyes inward toward the mouth to help push the food down their throat

3) Dianne’s Interesting Information – Legislation Changes

Over the last quarter the Real Estate Industry has had to adjust to more Government introduced changes..  Here are just a few:-

• The Property and Motor Dealers Act 2000 (PAMDA) will be split into, The Property Agents Bill, the Motor Dealers Bill, the Commercial Agents Bill and the Agents Financial Administration Bill.

The new laws are expected to come into effect in mid 2011 and will pave the way for the Council of Australian Governments’National Occupational Licensing System for property agents in 2012.

• The Neighbourhood Dispute Resolution Bill 2010 replaces the existing Dividing Fences Legislation.  The new bill providesrules about responsibility for dividing fences and trees, and facilitates the resolution of neighbor’s disputes.

• The Land Valuation Act was introduced as a simplified, more equitable statutory land valuation system and has been designed to strengthen and modernise Queensland’s valuation system and bring it in line with other states.

Other amendments or changes that affect us are:-

Due to severe weather events, the Queensland statutory Land Valuations have been delayed until Queensland’s affected areas can be assessed.  The statewide valuations were scheduled to be issued by 31 March 2011 however the Valuer-General has recommended that the Queensland Government delay the release.

The valuations are now expected to be released by 30 June 2011 for this year only.

 4) What’s Happening in Sales?

With so much happening elsewhere, the market has stayed pretty much the same.  The buyers are out there but they are only looking and occasionally some homes are selling. The last quarter it was reported that the average time for a property to be on the market for sale is 98 days. This has now gone over to 110 days on average.

This market is no different to any other. People will always need to sell and they will always need to buy. So whatever the   market, there are always going to be buyers and sellers around.

Our most recent sales have been:-

75 Drouyn Street $440,000

9/88 Eagle terrace, Sandgate $299,000

3/43 Fifth Avenue, Sandgate $310,000

17/88 Eagle Terrace, Sandgate $427,000

68 Paul Street, Brighton $572,500

On the market for sale:-

‘Torquay’ 50 Flinders Parade, Sandgate $1,877,500

74 Friday Street, Shorncliffe $895,000

40 West Avenue, Brighton $415,000

28/26 Seventeenth Avenue, Brighton $448,000

42/27 Seventeenth Avenue, Brighton $425,000

There is no right or wrong in why homes are selling and why some properties just sit, but once again if you have the right home, with the right person, at the right time, willing to pay the right price (with a good agent of course) and a sprinkle of luck the home will have a SOLD sign.

5) Dianne Ray’ Profile -  Helper Agent and Sales Executive.

What are your interests?

Golf, Golf, Golf, the outdoors, socialising, food and wine, travel, film, live theatre, reading, property & investments

What do you like?

I like talking to people and finding out their life stories; really enjoy listening to inspirational people, love my involvement with my family; really love watching my grand- daughters growing up; enjoy tasting different food with a great glass of Margaret River Sav Blanc; of course like playing golf as much as possible.

What are your dislikes?

Being around people with high egos and people who are untruthful to themselves.

What are you most grateful for?

Being healthy and fit and appreciate each day; grateful I can help people make important decisions in their life; extremely grateful to people who help me and believe in me.

Where do you live?

I have recently shifted from the Sunshine Coast to Sandgate.

What are your personal achievements?

Raising 4 beautiful healthy boys and watching them mature into handsome young men; developing lovely relationships with my 3 daughter-in-laws and my 3 grand daughters and having the support and love from my elderly parents who are still very active. Also having the opportunity to travel the world a number of times and gaining tertiary qualifications.

Why Real Estate?

My passion for real estate began in the early 2000’s when I started selling boutique lifestyle properties, such as B&B cottages.

I really enjoy helping people and the relationships you build. I always try to imagine that it’s my own home being bought or sold. By putting myself into their shoes, I am able to give clients honest, genuine, helpful and professional advice. I really do get a buzz when I see the smiles on both parties when a property has settled and I feel I have achieved a win/win situation with all involved, including myself, and also making friends.

Choosing the right home is one of the biggest decisions most people have to make in their lifetime. When it is time to sell home owners need to know they are placing their most valuable asset in safe and reliable hands.

Gai O’Driscoll (2^nd Avenue Realty Licensee) has given me the opportunity to work for 2^nd Avenue Realty and become involved in the Sandgate community. I have joined her agency because Gai, Fiona – Executive Assistant and myself are accredited Helper Agents http://www.helperagent.com.au

0ne thing that no one knows about you?

I am impromptu, like being active, adventurous, will give anything a go, love the colour red, I am a romantic, a softy and detest spiders & snakes.

Till the next newsletter, enjoy. Dianne

Good old fashioned honesty and trustworthiness is seldom mentioned when people talk about real estate agents. History has shown the industry to be one of the least trusted professions and there are times that stigma is justly deserved. However, there is a small group of real estate agents who want to make a difference and they are called ‘Helper Agents®’.

The official website describes a ‘Helper Agent® as an agent who is trusted and respected for their honesty, integrity and transparency. It is someone who will maintain the professionalism expected while empathising with and caring for your needs’.

“It is so very important to develop an understanding of a person’s circumstances and to build a trusting relationship based on that”, explains Gai O’Driscoll, professional Helper Agent® and co-principal of 2^nd Avenue Realty, Sandgate.

“There are many different reasons why people choose to buy or sell a home. Apart from financial motivation if securing an investment, the decision to buy or sell is often made emotionally along with a great deal of stress. The death of a family member, divorce, the birth of a child, job transfer, marriage and retirement are some of the events that can trigger the purchase or sale of a home.

“At these times, not only is a person dealing with a plethora of personal emotions – fear, anxiety, excitement, grief, impatience – but they are also about to make what could be the biggest financial decision of their life. In some cases, the entire wealth of a person can be placed in the hands of a real estate agent,” Gai O’Driscoll said.

The sales and property management team at 2^nd Avenue Realty back Gai 100% on the Helper Agent® philosophy. “My agency’s values are based on helping and building real relationships with our clients. The values we espouse through our business reflect what we value in our own lives. We work with a Helper Agent® mindset by validating our client’s emotions and where they are in their life without judgement,” said Mrs O’Driscoll. “If a person has our trust, then they are more likely to listen to our advice. By respecting them, we always have their best interests at heart. And, by being empathetic, we see the world as they see it”.

Whatever the reason behind your decision to buy or sell a home, or to utilise property management services, the team at 2^nd Avenue Realty, Sandgate will always strive to ensure the experience is a positive one. Gai O’Driscoll and her team can be reached on 3269 1555.

To find out more about the Helper Agent® philosophy, visit www.helperagent.com.au

I would like to talk about the Boutique Accommodation Industry. I  am very knowledgable in this field and I take training for people who are wanting to learn how to set up and operate a B&B or self-contained cottages, I sell and market them as well and I owned and operated a number of B&B’s I find when people are interested in buying a B&B their decision to purchase is quite often around their return on investment or they think it would be a great semi retirement occupation. I usually find these properties are a lifestyle choice, or they like people and enjoy the interaction with their guests or they have stayed in a number of properties and like the concept. Owning a lifestyle property, the income you earn is a like a superannuation payment. The gross or net income is quite small compared to morels, but the owners love what they are doing. Thus return on investment should not come into the scenario.This is where it is a lifestyle choice.

However most buyers are borrowing from a bank to finance the loan. I would suggest not to borrow more than 50% of the purchase price, ideally 45% is more likely the maximum to borrow. Unless one of the partners is prepared to work off site in their chosen profession. The banks as we know today, due to the Global recession, have really tightened up and it is quite difficult to borrow from the bank in normal real estate purchases and seems to be harder in this industry. To borrow from the bank for a boutique accommodation property, the banks will send a valuer out to value the property. The valuers will usually only value the house and buildings not the business. This is where is becomes difficult.

Most of the owners have put a value on their property and believe they have the best property on the market and the price is ok. BUT the buyers are astute today with all the access to the internet, they are very aware of the value of properties. Thus the properties are on the market for a long time, sometimes two to three years. The owners of the property say they are not giving away the property and the right buyer will come along and see the value of the property, love it and pay the price the owners want. This is really not achievable and not realistic. As with all properties you do need to price the property to the market. There are three reasons why a property does not sell quickly: 1) price, 2) presentation and 3) marketing. The owners are not really keen sellers, just playing around.

I have found the owners have listed their property with a business broker or local real estate agent and they know very little about the properties and they have taken quite a sizeable amount of funds for marketing and the property has not sold. The owners start questioning why the property has not sold. They then source a specialist like my self to sell their property. The property is an open listing and the agents are doing very little for them, the specialists are probably the only ones working for them. This is why it would good to see the owners listing their property first and only with a specialist agent like Lifestyle Property Realty. www.lifestylesales.com.au or www.lifestylepropertychoices.com.au

How do you decide a value on your business? I will talk about this in my next blog. Hope you have found this interesting. Cheers Dianne

Buying and selling a home can be a complex and time-consuming process. Even before you make the ’big decisions’ of which property to buy, which home loan to select, and which real estate agent to sell your home, there are many other important decisions you need to make. Doing some homework can help you avoid potentially expensive mistakes.

You are more likely to make the right choices if you know what you want; are informed about your options, shop around for the best price, and service or product that meets your needs; refuse to be hassled or hurried into a decision; read everything before you sign.

Be Informed:

Make a list of what you absolutely must have in a property so that you don’t get carried away and buy something that looks ‘great’ but doesn’t have what you really need. Make a “wish-list “also, so that these desired but non-essential items can be factored into your decision-making when you find them in a property within your price range.

Learn as much as possible about all aspects of the property buying and selling process. Find out all you can about the market value of property in your preferred area by attending auctions, speaking with a variety of estate agents, surfing the internet and reading newspapers for auction results and prices of properties listed for sale.

Shop around:

Apart from being informed about current market values, and what you need and want in a residential property, you will also need to be informed about the products and services offered by real estate agents, solicitors and conveyances, and loan providers. Shopping around is the only way of really knowing that you are getting value or money and that your needs are being met as fully as possible.

Don’t hurry:

Never rush or be pressured into making hasty decisions. There is a lot of money at stake – a lot of years spent paying off the mortgage. Make sure that you are making this commitment for the right property.

If you take your time and do your homework, you will feel more confident that you have found the right house at the right price, the right agent or the right loan when it comes your way.

Read before you sign:

During the buying and selling process you may come across several types of contracts such as loan agreements, listing agreements, sale contracts of real estate. A general rule is not to sign any document without reading and fully understanding its content including terms, conditions and fine print. Make sure that anything which has been agreed to verbally is put in writing; you will therefore know exactly what you are committing yourself to.

If something is unclear ask the agent to explain it to you. If you still uncertain, it is better to wait and seek professional advice before signing.

Source: Consumer Affairs Victoria. “Real Estate a guide for buyers and seller”