Builders ‘SPECIAL OFFERS’

Have a look in the real estate section of the papers and you will see some builders are offering ‘Special Incentives’ for a limited period……………………..so should you rush in to take them up?

Well I don’t think it makes any difference.

The ones that offer incentives seem to operate on a cycle of offers something like:

$30,000 of Luxury Inclusions for $2,000

followed a couple of months later by;

Free Theatre Room 

then a few months after that by;

Free Air-conditioning and Landscaping

a little time later it’s;

Prices SLASHED by $30,000

then its back to;

$30,000 of luxury inclusions for $2,000

The truth of the matter is some of the builders add thousands of ‘marketing’ dollars to the price so they can make these ‘Special Offers’

The reason why they are limited is because they want you to sign up quickly rather than look around other builders houses.

I’m not saying that you aren’t getting a value for money house……….just don’t be pressured by the offer to rush in without thinking…….. They are not really ‘Free’, and there will be another different offer when the current one finishes.

For similar posts see Starting Off

 

10 Things Before You Pay The Deposit

OK you have looked round lots of show houses and found one you like.

The sales representative is now asking for a $500, or more, initial deposit.

Do you pay straight away?……..Well you are currently in your best position to negotiate so don’t rush!

10 Actions

Here is what I would do next:

  1. Tell them you need a week to think about it.
  2. For the house you like get copies of all the Floor Plans, facade plans, specification and standard list of inclusions. (Once you have got the plans don’t think you can shop them around other builders)
  3. Walk through the Show House again checking what fixtures and fittings are extras so you understand the difference between what you will get and what you might have thought you will get.
  4. Take the plans and specification home and go through every room one by one to help you decide if the rooms including fixtures and fittings are what you want.
  5. Make a list of all the changes you want, for instance:

It will be easier, and cheaper, to make the changes before you commit!

6. Go back to the representative and ask them to price the changes.

7. Remember that there will still be extra costs such as site works, fences paths etc. See “What Will It Cost?” for typical details so make sure you will be able to afford the estimated price, with some extra for things you forgot! You don’t want to be paying a loan on a Ghost House.

8. If you are happy with the price pay the deposit and you are on your way.

Limited Time Offers!

Some builders make limited time offers to get you to sign up quickly.

I’ve never let this rush me . . . as at the end of one offer they always seem to have another ‘Offer’ of similar value.

For similar posts see Starting Off

 

Choosing a House . . . A new E-book for only $4 to help you buy your new house

 

Caveats

You may be asked “Do you want a Caveat” before you buy land for your new house.

I think it depends on what sort of land you are buying:

  • If I was buying a block on a new large sub division I wouldn’t bother.
  • However If I was looking at an existing property to knock down and rebuild I think having a caveat would be worthwhile.

I would be very reluctant to get involved in any property that has a caveat lodged on it.

Definitions

Caveat means beware, A caveat is a written warning on the ‘Title’ to anyone who wants to deal with the property that someone else’s interest already has priority.

The Caveator is the person having an interest in the property who must be notified of any attempted dealing in the property.

A Caveatable Interest allows you to lodge a caveat. The interest is acquired once a contract for purchase is signed.

Lodgement

Lodgement should be done as soon as possible.

I think that it’s best to use a lawyer to lodge a caveat to check whether:

  • There is a caveatable interest
  • If there are any contractual restrictions on having a caveat,
  • The caveat is lodged correctly.

What are the costs?

It will depend on your lawyer/conveyoncers fees but I would expect that the costs will be around $500-$1000.

Why is an existing caveat a problem?

Well it may be difficult to complete a purchase due to the many reasons including the following three:

  • Someone else has already signed a contract to buy the property and they have priority.
  • A financial institution may have been allowed to lodge a caveat by the existing owner to secure a loan.
  • A creditor may have a court order allowing for the lodging of a caveat.
  • Other rights. There are numerous other rights that may give rise to a “caveatable interest”.

This is not  a professional legal opinion and you should consult your legal representative before making any decisions.

9 Important Home Building Trends for 2016 and Beyond

Guest post by Andre Smith

Are you wondering where home buying trends are headed now that the first quarter of 2016 is well behind us?

We’ve put some brainpower into analysing the current home buying market, and put together a trend forecast with our thoughts on what the next big things will be as we finish out 2016 and head into 2017.

These are our predictions for 9 of the most important home building trends for 2016 and beyond.

1. Increased Demand for New Homes Will Create Growth for the Home Building Industry in Australia

According to the Department of Planning and Environment website, the Australian government plans to focus significant attention on meeting housing demands created by projected future population growth.

They anticipate that more than half a million additional homes will be necessary to accommodate the growing population over the next 20 years.

The vast majority of this housing will be new homes, and the home building industry in Australia is poised for outstanding growth opportunities.

2. New Housing Developments Will Increase the Population Density in Existing Cities

The Department of Planning and Environment has communicated plans to create increased housing inventory closer to jobs.

As one of Australia’s thriving economic centres, Sydney is poised to be one of the main beneficiaries of the upcoming housing boom.

3. Demand for New Homes Will Be Strongest Near Airports and Transportation Hubs

With the Australian government’s stated plans to focus on strengthening economic development around transportation gateways and strategic centres, we can infer that populations and development projects will naturally gravitate to these areas.

Look for new development opportunities around Sydney Airport, Port Botany and Badgery’s Creek Airport.

At the Forbes.com website, author Wade Shepard makes a good case for the lucrative investment potential of airport-accessible real estate in an article called ‘Why You Should Want to Live Right Next to an Airport‘.

4. Interest in Home Building Franchises Will Increase

Along with the increased demand for new housing, there’s opportunity for a proliferation of new home builders.

However, home buyers will be looking to work with trusted builders who already have a reputation for building high-value homes, for example GJ Gardner Homes in Point Cook.

The solution is obvious; everyone wins when franchise relationships arise between existing home builders and new business owners.

5. Designers Will Get Increasingly Creative In Designing Homes For Small And Oddly-Shaped Lots

They aren’t making any more land, so it’s getting increasingly more important to make use of the real estate parcels that are still available.

Small and odd-sized lots that home builders once shunned are now getting snapped up for future development.

6. Demand For Demolition Services Will Increase

Along the same lines, we’re seeing an increase in homeowners who wish to demolish their existing homes and rebuild new ones on the same block rather than relocate.

7. First-Time Home Buyers Will Face Challenges

Real estate prices in Sydney are soaring, with most of the available land being priced well out of reach for first-time home buyers.

There has also been a reduction in funding through the First Home Owner’s Grant, which also adds to the challenge.

8. Demand For Multi-Generational Housing Will Remain Strong

With the population aging, and housing becoming increasingly out of reach for young people, mother-in- law suites, attic bedrooms and other multi-generational housing units are in high demand.

9. The Market Is Shifting in Search of Alternative Building Materials

Between the high costs for brick and the high costs of labour for employing bricklayers, many home builders are seeking lower cost building materials.

 

Now you’re updated on 9 of the most important current home building trends for 2016.

We hope this information will help you make educated decisions when planning any future real estate investments.

Mistakes To Avoid When Hiring A Real Estate Agent.

Guest Post by Hubert Dwight

Most of us are involved in selling our existing house to finance our new home build.

The sales process during a property sale can be a challenging one.

You need to minimise any hitches when dealing with banks, property lawyers and buyers.

Many property sellers make their an error when selecting their real estate agent, which puts them on the back foot from the outset.

To ensure you are on the front foot when it comes to the sale of your property,we recommend the following tips to avoid making a costly mistake.

Do your own research to find the value for your home.

There are many statistical factors that estimate what your home should be worth.

It is  best to conduct our own research on other similar properties in your area to get an understanding of the price range for your type of property.

Your research will help you understand how the property needs to appeal to the desires of the prospective buyers and help drive up the demand for your property.

The more demand there is, the more valuable your home will be.

A good agent will have good experience with maximising this demand among your property’s prospective buyers.

Don’t get blinded by money.

You want to get as much as you can for your property, but don’t get blinded by real estate agencies that promise you a large sales figure amount, only to sell your property far less than you expected.

You want to hire an agent that will give you good value for money.

They are in it for the real estate agent’s fees (commission) on the sale. . . . You are in it for the best sale price that you can get for your property.

From your research you will know whether the agent is providing an accurate guide or an inflated estimate to win your business

Take emotion out of the equation

One of the worst things you can do is let emotion dictate the perceived value for your property.

When too much emotion is invested into your decision-making process, it can cloud your judgement.

Your emotional and financial needs have no impact for the buyer.

The desire to sell at a higher price can cause you to choose an agent that will over promise and put you in a position where you will receive a service that is under delivered.

Many agents leverage people’s emotions to choose them as their property’s agent.

Instead, make a decision based on the agent’s track record and by conducting your own market research so you have realistic expectations for your property.

 Hire an agent based on skill, not just likeability.

You want to hire an expert that will sell your property for the price that you want.

It is fine to hire someone that is more likable, but ultimately, you want to hire a person that has the skill to sell your property at the price that you desire.

Compare agents and check that they have strong negotiation skills and a buyer market reach to stimulate demand for your property.

You want to ensure that the price of your property doesn’t fall, thus making you lose money on your property.

Make sure the agent uses the latest marketing techniques

Some real estate agents are stuck in the past with their selling techniques.

Traditional methods whereby placing ads in newspapers are less relevant as newspaper circulation has been in a steady decline for over a decade.

More interaction occurs on the web via computers and smartphones.

Additionally, the expectation of the attention to detail with buyers is higher than it has ever been.

Compare real estate agents to see if they can meet and exceed your expectations.

Additionally, the reputation of the agent is crucial. Online reviews and credibility will make or break their success.

Sites like LocalAgentFinder that showcases the track record of agents, turning real estate selection into a buyers market.

Why Display Homes Are An Attractive Option For Home Buyers

Guest post by Hubert Dwight

Homeownership is something that many of us aspire towards, and something that offers us the opportunity to secure our future and the future of our family.

The only problem is that homeownership is becoming more and more expensive as property prices rise and the market becomes more and more crowded.

Thankfully, to meet the growing demands being placed on the market, there are a number of innovative solutions being created to meet this opportunity.

We’ve all seen the property estates that are popping up in cities with a range of beautiful brand new homes available to purchase, often for a greatly reduced price as compared to the established homes within the city.

These estates are usually located within commuter distance of the city – another key selling point of many buyers and investors.

What you might not know however, is that it’s possible to purchase the actual display home that is used to showcase the houses available from the developers.

Yes, developers are building their showcase display homes and are offering these for sale to prospective buyers as a savvy way to achieve a great return on a property from the very beginning.

A display home is an attractive option for home buyers and we’ve created a short list of points as to why.

Take a look here to find out why buying a display home might be a great option for you.

Secure Your Future

Buying an investment property is a goal for many investors as they seek to diversify their assets and to gain greater financial freedom.

An investment property that is a display home, means that you’re securing a great property which is landscaped and complete with fittings and furnishings.

How it works is that you purchase the display home, and the company then rents it back from you and continues to use it as a display home for a set period of time.

You can then use the rent to pay your mortgage.

This equates to a positive cash flow property with a very reliable tenant from the get-go!

During this time, the developer will also pay the outgoings like insurance, gas, rates and electricity.

When the rental period is complete, you’ll have the option available to you to move into your beautiful home; to sell it; or rent out the property to a tenant.

No Waiting Period

When you’re buying an off-the-plan home, the process is such that you pay a deposit on the home or land based on the price at the time, and then you make incremental payments during the life of the property as the building process continues.

Often, you’ll find that the property has already increased in value by the time your build is complete and you’ll be left with some equity – a huge bonus for any investor.

The only problem is that while you’re waiting for the build to be completed, you’re not obtaining any rental return on your property, so there is that to consider.

The perks of buying a display home is that you’re getting rental return immediately, and you’re also enjoying any capital gains that might occur on the property during the rental time.

Beautiful Home

A display home is the jewel in the crown of any estate.

It’s the house that prospective buyers are going to be seeing when they’re looking to buy, so it’s in the best interests of the developers to make sure that the display home is a stunning example of their best work.

What this means for you is that you’re going to be the proud owner of the best of the best as far as their houses go – which means that you’ll have a top-quality home with exceptional fittings, fixtures and coverings.

Well, these are just a couple of excellent bonuses that you’ll get when you purchase a display home, so perhaps take thee into consideration if you’re an investor looking to buy and seeking a positive cash-flow option for your portfolio.

Happy investing!

 

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