Monthly Archives: May 2019

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What Matters in an Investment Property

Buying an investment property is a big decision that requires thorough research and planning. While there is a level of risk involved in all real estate investments, making well-informed decisions will reduce this risk and ensure you are able to make a profit. One of the most time consuming elements in the process of securing an investment property is determining which property you should buy. There are a number of factors involved in this choice, from the size of your budget to what type of property you would like to purchase. Although the individual circumstances may vary, there are some things which all investors consider before purchasing an investment property.

Location

Location plays a major role in the value of a property. This holds true for investments, and keeping this in mind while searching for a property will ensure you choose a profitable investment.

In regard to location, you must consider both the rental demand, and the long term projection for the property market. If you are planning to hold the rental property for a significant amount of years, rental demand may be your primary focus when deciding on a location. Alternatively, if you are hoping for a shorter term investment, taking advantage of areas where the property prices are expected to surge is the ideal strategy.

In terms of rental demand, it is important to choose a property in an area that attracts renter, as well as a specific location that will make your property in high demand. Things to consider for the specific placement of the property include the proximity to amenities such as transport, shops and schools. Other factors which may impact the ease in which you find tenants is the existence of appealing features, like a good view from the location, or if it is very central.

Property

Of course, the characteristics of the property itself also matter a great deal. First decide what property type you want to invest in, whether residential or commercial. Then pay close attention to the features of the property. If you are investing in an apartment, the overall building should be considered including any additional amenities it has.

Factors such as layout, size and overall condition are all important. If the property is in poor condition you may have to spend money out of pocket for repairs which can reduce your ongoing investment yield. Additionally, the layout of your property could impact the rental demand. For example if the property doesn’t receive enough natural light during the day, has an unappealing outlook from the windows, or doesn’t have an outdoor area it won’t be as easy to find tenants quickly. Don’t overlook this issue just for a slightly cheaper purchase price; being unable to find tenants could mean your property sits empty for months on end while you are responsible for mortgage payments.

Rental Income

While you may think you have found the perfect rental property within your budget, remember to consider the price you will be able to realistically charge for rent. If the potential rental income does not cover mortgage repayments, you will have to factor this extra cost into your investment plans.

This isn’t something you should leave to be a last thought. The level of rental income you are able to receive from an investment property should be considered alongside all other factors during the property search process. The more appealing the location and property itself, the higher the fair rent amount should be.

Price

The asking price of the investment property is naturally the first factor to be considered. Not only does it need to be within the pre-decided budget, it must also fit within the expected range of property sales in the local area. If it is selling for over what comparable properties have recently sold for, it is not a worthwhile investment. If a property is out of your budget, it is advisable to search for more options.

When considering the price of a property, keep in mind that the price named on the property listing may not accurately reflect the current market value of the property. In order to avoid paying more than a property is worth, it is vital to have a pre-purchase property valuation done. An independent, experienced valuer is able to give an accurate market value of your potential investment property by conducting a thorough inspection and comprehensive research into the current state of the market and comparable sales. This insight will ensure you are making a well-informed decision before placing a bid or signing a contract.

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Is it Time to Downsize?

Your family home will undoubtedly have a lot of sentimental value to you, especially if you’ve raised a family in it. When the time comes to think about the next chapter in your life, the concept of retirement can be a daunting prospect. However, considering whether or not to move out of the family home is a decision that most homeowners will need to do at one point or another.

When the children grow up, move out of home and begin the next chapter in their lives, your home will soon begin to feel like an empty nest. The concept of “downsizing” is a common solution for many couples facing the prospect of an empty nest. So, when it comes to downsizing from the family home, think carefully about how the move can be a welcomed change.

It can save you time

This is quite an important one. The stages leading up to retirement are all about enjoying you new lifestyle and the reaping the benefits of relaxation. Among the other benefits of smaller living, saving your time (and energy) will is one bigger benefits that you’ll face.

When choosing to downsize, you’re giving yourself the opportunity to settle into a place that suits your needs. In most cases, downsizing only requiring enough space for one or two people, so it’s realistic to downsize to a space that will save you time in the general upkeep and maintenance of the house.

With a smaller space at your disposal, you can save a lot of time with general maintenance. Whether it’s vacuuming, dusting, garden upkeep, or sweeping – a more modest space will better suit your schedule to focus on more important things.

It can save you money

While it can be difficult to part with the family home, trading up your existing property for a more modest sized home will save you money in the long run. Furthermore, you’ll likely have more than enough equity to cover a deposit and be able to comfortably cover mortgage repayments. If you’re renting, a smaller home can mean less rent payable depending on your location. Downsizing can also mean spending less money on general maintenance and upkeep and the stress that goes along with it.

It can save you energy

No, we don’t mean the energy of moving around. Although larger homes can seem more comfortable, you generally pay in its energy costs. Downsizing can drastically save on your energy costs. This will mean, your heating, electricity costs and cooling systems will all contribute to a lower energy bill.

It can keep your budget on track

Moving into a smaller place will already give you the benefit of getting on top of your finances, however, it can also help in scaling down on spending habits. Firstly, when moving into a smaller place, you may not have enough room for all of your possessions and provides you with a great opportunity to make some money. Furthermore, it will help with keeping any unnecessary spending to a minimum.

When it comes to downsizing your property, it’s important to seek out the Melbourne property valuation experts to help ensure you receive accurate pre-purchase advice.

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Qualities to look out for in a Real Estate Agent

Entering into the property market can be a stressful investment, so it’s important to have a reputable professional in your corner that you trust to help ease the process. Your real estate agent should be your guide to help you make an informed decision based on your needs and requirements. Whether you’re buying or selling, your real estate agent is the one to help manage your expectations and to help you find a property that ticks all of the boxes.

The property market can be a tumultuous place so having someone with an extensive background in your local area can really simplify the process of the buying/selling process.

However, seeking out a real estate agent that suits you and understands your requirements means doing some research of your own to make sure you will find the right one for you.

Your real estate agent should be someone you feel comfortable with and trust – remember, this is one of the most influential life decisions you’ll make. You want to ensure that you’re trusting someone who knows the market inside and out. Here are a few qualities to look out for to ensure this is the case:

Extensive Knowledge

One of the most influential benefits your real estate can give you is their knowledge. Your real estate agent should have a thorough understanding of the local market, its stability, recent sales, median house prices, and average number of days spent on the market. This is the kind of information that dictates the overall stability of the market, which make a huge difference on the what’s available. They’ll also have a good indication as to whether it’s a good time to buy or sell based on variables such as buyer sentiment and the supply/demand ratio. A real estate agent with a good grasp on the state of the property market as a whole and the local market will be able to help you make the right decision for you.

Good Connections

The Real Estate agent community is significantly large and can be used to your advantage if you seek out a quality real estate agent to help you. Many real estate agents rely on their networks for purchase and sale opportunities, even financial managers, lawyers and the best property valuers Melbourne can offer. Having these connections at your disposal can not only help you find the right property for you, but they can also put you in contact with professional firms before and after the sale.

Furthermore, being able to rely on these connections means having more of an opportunity to help find the home that you’re after. This can take away a huge amount of stress, especially if you require a lawyer or are seeking a valuation to prepare to sell or buy the home.

Keeps you in the loop

This one is probably one of the most important when trusting your real estate agent. While it’s paramount that your real estate agent has the understanding of your expectations and the property market, you also need to be informed of any updates or obstacles.

Transparency is paramount when dealing with your real estate agent. With this being said, you want to be able to trust that your real estate agent can give you the information that you need to make an informed decision. This means providing you with the right information about potential buyers, offers, any obstacles in related to the market and any other information you have requested.

In saying this, it’s also important to have a real estate agent you will do what they say they are going to do, in the timeframe they set with you. Real Estate agents are meant to ease the process of buying or selling your home, not make it more stressful. Having a real estate agent who is willing to work with you and be realistic about how they can help will make a huge difference throughout the entire process.

They are clear with what they can do for you

No one likes being let down, and no one likes being given false hope in regard to what’s attainable or not. Having a real estate agent that can manage and meet your expectations only works in your favour of building a trusting relationship with them. If you find yourself being let down multiple times by your real estate agent in regard to timeframes, expectations, or are receiving radio silence, then perhaps it’s time to make the switch.

Seeking out a real estate agent that will suit your requirements requires some dedication to research. It may be completing some light research online, speaking with friends or family, or requesting a face-to-face meeting with a few of your local agents to find the best fit for you. From here, you can quickly establish what agents have the knowledge and the personality that you are willing to work with. Entering into the property market is a stressful time, so it’s important you have someone that you can trust to guide you and lean on when you’re faced with some difficult decisions or unseen obstacles.

When it comes to taking the next step into the property market, choosing the right real estate agent for you is one thing, but you also need to know that you’re over-paying or under-listing the value of your home. When it comes to these decisions, seeking out a quality property valuation service will be able to give you an accurate report on the true value of your property.

Melbourne Property Valuers Metro are trained, certified, and registered with the Australian Property Institute (API). Each valuer has over 20 years experience to help you with your property’s value.