First National
Thursday, May 26, 2011
Wednesday, May 18, 2011
Seniors Benefit From Lower Stamp Duty
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There has been a lot of discussion about reductions in stamp duty being offered to first home buyers after 1 July, and the improved and increased assistance for seniors is equally significant.
The REIV has highlighted that one of the problems with stamp duty is that it acts as an artificial barrier to moving; after all, if you need to move home because you have outgrown your current home – or it has outgrown you – then you face an additional expense of around $30,000 on a median priced home.
This issue was also highlighted by many submissions to the federal government’s Henry Tax Review.
It can be a particular barrier for those who have retired and are on fixed incomes as they have both a limited and finite income. And if you have retired and your family has grown up and moved out then it is more than likely that your home is larger than you need or want.
There are, therefore, very obvious benefits for the individuals and community to removing artificial barriers to ‘downsizing’.
This is why the decision to substantially increase the value of the duty relief for eligible seniors is a good one.
As of 1 July the current threshold for duty relief will increase from $440,000 to $750,000. Under the new laws, eligible seniors will receive a total exemption from stamp duty for homes purchased to a value of $330,000 and a partial exemption between $330,000 and $750,000.
The home can be a new one or an existing one, the main stipulation is that it must be the purchaser’s principal place of residence.
The list of eligible seniors has also been extended to include holders of a Commonwealth Seniors Card.
To see the full list of edibility requirements and how to apply contact the State Revenue Office on 13 21 61.
Wednesday, May 4, 2011
What to look for in an investment property
Choosing a property for investment purposes is not the same as choosing a home to live in. Keep the following tips in mind:
- Not all titles are created equally - whilst most apartments are strata titles, if you're buying property that's company title make sure you read the fine print carefully. The owners of company title buildings are set up as shareholders in the 'company' and they must vote to decide on various rules including occupancy changes and rental rights. You also have to have approval for most alterations, even within the unit itself.
- Choose for rental appeal - even though you won't be living in it, you'll want to make sure the property has features that most people look for, including internal laundry, proximity to transport, security, car space/garage, balcony.
- Don't over do it - it's possible to spend more money on renovations and upgrades than you're ever likely to see in returns. Make sure you are realistic about how much someone will be prepared to pay when you eventually come to sell. You want to do enough to seduce buyers but not so much that you're out of pocket.
- Keep your finger on the pulse - when property prices are dropping and rents are rising, it may be time to make the most of economic conditions.
- Do your homework - if you're buying in an area you're unfamiliar with, research it well. Look at data on property prices in the area and rental yields as well as vacancy rates. Speak to the local residents and shop owners and even the council to find out as much as you can about the place. There's a lot of information out there to help you, like RP Data's report on the best suburbs to buy in around the country.
Report from stgeorge.com.au
Wednesday, April 27, 2011
The Importance of an Inspection When Buying a Home
When you've located your perfect home and are about to put in an offer, make sure you have a professional, independent building, pest and strata (for those buying an apartment) inspection.
Building inspections will usually cover things like:
Structural damage to the roof space.
Sub-floor ventilation and drainage.
Rising damp, asbestos and other hazards.
Damage or problems with gutters, windows, foundations, cracks.
Doors, ceilings, plumbing, electrical wiring.
Extensions, renovations, additions that do not meet regulations.
Pest inspections look out for things like:
Existing or potential damage from all kinds of pests.
The active presence of pests, like termites or white ants.
Strata inspections are only applicable to apartments/townhouses and they cover:
Ongoing maintenance fees and any special levies payable.
Rules and regulations set out by the Body Corporate/Owner's Corporation.
History of disputes or claims against the current owners.
The balance in the administrative and sinking funds.
Whether the insurance cover for the building is adequate.
What if problems are found?
You don't have to kiss your dream home goodbye if problems are identified in any of the reports. You could use the information to find out the cost of fixing any problems and negotiate a lower price through the real estate agent. But remember, if you don't organise inspections or don't take note of the findings it could cost you thousands of dollars in repairs that you didn't factor in to the price...and that could hurt.
Source: stgeorge.com.au
Wednesday, April 20, 2011
Wednesday, April 13, 2011
Put a Freeze on Cost to Keep Warm
First National Real Estate says there’s a lot homeowners can do to improve their carbon footprint and keep escalating power bills down during winter.
In winter, the typical Australian household consumes approximately 2700 kWh of energy, which is around 7 per cent more than in the warmer months.
So, while many environmentally-friendly actions should be taken throughout the year, it is during winter that we need to be more diligent and follow some additional guidelines.
Turn down heater thermostats by one or two degrees and close curtains and blinds to reduce heat escaping. Put on warmer clothing, like sweaters, to lessen the reliance on heaters for warmth.
Avoid leaving unnecessary lights on and switch them off when no one is in the room. Outdoor lights should use motion sensors wherever possible. Use lower wattage bulbs such as compact fluorescent lamps (CFL). Appliances, such as computers and televisions, should be turned off at the wall, if possible.
Inspect the home for air leaks and install draught seals and weather stripping around doors and windows and repair faulty.
Upgrade all areas of the home to recommended insulation levels and potentially save 5 to 25 per cent on heating and cooling costs.
Install energy efficient appliances wherever possible. Use major appliances, such as washing machines, dishwashers or dryers at bed-time and other low energy use times of the day, and avoid using them between 4pm and 9pm – this is the optimal time to power down.
Thursday, April 7, 2011
Passed in
An average of 37 per cent of properties auctioned this year have been passed in. This occurs when the highest bid at the auction does not meet the vendor's reserve price.
Passed in on vendor's bid
This occurs when the last bid was made by the vendor or the agent on the vendor's behalf. This shows that demand at the auction has fallen short of the vendor’s expectations. This around six out of every 10 homes passed in are on a vendor's bid, much the same as last year.
Reserve price
At the heart of the auction process is the reserve price. The reserve price is the minimum price that the vendor wants for the property. The reserve is typically set by the vendor the day of, or the day before, the auction. It is also worth noting that while it is often announced, there is no requirement for the auctioneer to announce that the reserve has been met.
Clearance rate
The clearance rate is often used as an indicator of market sentiment. It is the combined total of the properties sold before the auction, at the auction or the day after the auction divided by the number of auctions reported that day. For instance if one home is sold before the auction, five sold at auction and one the day after the auction and 10 properties were listed, the clearance rate is 70 per cent. The REIV publishes clearance rates and the actual number sold before, after, passed in and passed in on vendor bid to which provides transparency to market analysts and casual observers.
Taken from REIV.com.au
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