The Importance of an Inspection When Buying a Home

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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

Happy Easter from the team at First National JM Chase!

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Put a Freeze on Cost to Keep Warm

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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.

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Each weekend hundreds of homes are bought and sold at auction with results reported in this newspaper and at www.reiv.com.au. If you are attending an auction or reviewing the results there are some important terms you need to understand.

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

Sales Method...Auction vs Private Sale

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If you are planning to place your property on the market this year you will need to decide which method of sale will best suit your property. Generally the two most common methods of sale for residential property are auction or private sale.

In making a choice between an auction and private sale you should consider a number of factors, namely location, style of property, level of interest, timing of the sale and importantly the advice of your REIV real estate agent.

The final choice should be guided by which method is more likely to provide you with the best return for your property.

In Melbourne about 30 per cent of residential sales are conducted by auction. The proportion of private sales is higher in outer suburban and regional Victoria.

Historically auctions tend to be more popular in certain inner and bayside suburbs and more broadly in a stronger market.

Up till the 19th of March there have been 3,677 auctions with a clearance rate of 63 per cent, this compares to this time in 2010 – when conditions were stronger – there were 3,335 auctions with a clearance rate of 85 per cent.

Overall this year the volume of all sales is down by 15 per cent on last year. Whilst this is the second lowest in 5 years it is well ahead of 2009 when the global financial crisis had a significant impact indicating a subdued market.

The volume of sales by auction is down slightly more than those by private sale but the difference is not significant.

Finally it is important to consider the individual property in the context of other properties for sale and recently sold in the area.  An REIV member will assist you by using their experience, training and local knowledge to help you make the best decision.

Source: REIV

How You Can Help

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The world has been rocked by the tradgedy that struck Japan late last week. Rattled by several enormous earthquakes and a gigantic tsunami the likes of which has rarely been seen, tens of thousands of lives have been dramatically lost, and thousands more wrenched apart.

Now begins the difficult process of recovery and rebuilding.

Perhaps what has struck me the most is the reaction of the Japanese people. There is no looting or theft, and the people are selflessly sharing the last of their food with strangers. Humanity can learn a lot from such a dignified, strong race. 

People seeking information about Australians in the disaster affected areas, can also contact the Department of Foreign Affairs and Trade's 24-hour Consular Emergency Centre on 1300 555 135 (within Australia) or +612 6261 3305 (from outside Australia).

If you would like to make a donation to the Red Cross you can do so by following the link - http://www.redcross.org.au/japan2011.htm or by calling  1800 811 700

Images used in this post were taken from news.ninemsn.com.au, sourced 17.03.11

Fantastic Development Opportunity!

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Measurements are approximations only

Plans and Permit just fresh off the Council’s press to allow for this superb opportunity to construct 3 townhouses on a generous allotment of approximately 978sqm. Each offering open plan design with two and three bedrooms options with the two offering a single lock up car accommodation whereas the three has double lock-up facility. Picturesque setting amongst lots of greenery not far from the Eltham township. Walking distance to three different parkland including Eltham Central Park. Look no further as the numbers will stack up on this.

Unit 1 – 3 bedrooms double lock up garage total size 137.8sqm
Unit 2 – 2 bedrooms single lock up garage total size 125.65sqm
Unit 3 – 3 bedrooms double lock up garage total size 143.69sqm 

For more information or images click here