Real Estate Colum

Improve Your Australia Investment Properties to Increase Profits

Richard Colum — Mon, 06 Sep 2010 22:45:02 +0000

Improve Your Australian Investment

If one of your main sources of income includes Australian investment properties, it makes sense to get the most out of your investment. Letting out your property can seem like a simple task that only requires advertising the availability of the property. However, you can make more money by improving on your investment so that your property becomes a hot commodity. The more people who desire to live in your investment properties, the more you can charge.

Improving or renovating your property allows three things to happen. You increase the popularity of your property, the amount of time your property is vacant decreases, and your profits ultimately increase. Similar to sprucing up a home for sale, improving your property to let is just as important at snagging tenants as it is buyers.

Low Cost Improvements

Not every investor that wants to invest in Australia realty has endless capital to improve a rental property. Low cost improvements can be just as effective at increasing tenancy and profits. Two cheaper improvements include carpet and paint. Almost every prospect will pay attention to the condition and style of the carpet and paint. An apartment or house that hasn’t been painted in years or that has stained carpet will automatically turn off many prospective renters.

To repaint and re-carpet successfully, it’s best to look at some decorating magazines and see which colors and styles are more modern. Choose a color combination that is neutral but inviting. If your property has wood or tile floors, spruce it up with a new area rug or an entry rug. Remember that brightness is key when redoing a home, especially if the home will be vacant of furniture and decorations when prospective letters look at it.

High Cost Improvements

Renovating a kitchen or bathroom can greatly improve your profits. However, these are also two of the more expensive areas to remodel. So many Australians are into entertaining that the size and feel of the kitchen is important. Even in a rental, letters want to be able to entertain in a nice, modern area. Installing new cabinets, changing the counter tops, and installing stainless steel appliances are all costly improvements that will help increase your profits.

For a bathroom, you can replace faucets and mirrors for a low cost. But prospective renters mostly notice the condition of the floor, basin, and shower. If you have cracked, moldy tiles or an outdated shower system your property won’t be able to compete with newer models. Tiles can be either replaced or painted, although old cracked tiles should be replaced. Putting in newer style shower heads and a jet bathtub can help increase the number of people interested in your property.

If you’re interested in improving an Australian investment property, consider starting small. This way you can see how prospects react to your improvements and whether or not it’s profitable for you to invest in larger renovation projects.

Until next week I hope you enjoy and come back, your comets will greatly appreciated.

Regards

Richard Colum

Western Australia, Australia.

Buying an Australian Home through Auction

Richard Colum — Wed, 01 Sep 2010 21:03:54 +0000

Auctions are a popular medium for buying properties in Australia. In fact, many bank repossessed properties become available to the public through property auctions. But as with any home purchases in Australia, the government regulates the sale of homes through public auctions. People wanting to relocate to Australia may have an easier time procuring a home through an auction, whereas an investor may have more paperwork or obligations to meet in order to purchase through auction. Australia typically requires that foreign buyers get approval of their purchase first by the review board and that any purchases made my foreign investors benefit the community where the home is located. Once approval is granted, buyers are free to begin looking at auctions for deal on Australian homes.

Preparing for Auction

Although auctions are an alternative form of home selling, a buyer should still make preparations in order to facilitate a smooth auction purchase. When going the traditional route, buyers get together financial records, review the prospective property, and determine the price range they’re willing to work with when making a purchase. Buying at auction isn’t much different in terms of preparation.

Buyers need to finalise loan paperwork and have a certain percentage of the home price available. Since no one knows what a property will sell for at an auction, it’s best to have at least 10% of the highest amount you’re willing to pay available in the bank. Before the auction, be sure to visit the property you’re interested in and ask questions of the realtor or broker. Have an appraisal done if necessary and be prepared to have the house and property inspected.

At the Auction

Remember that when you arrive at the auction there may be just as many people interested in the same property as you. Be prepared for the auctioneer to overwhelm the crowd with excitement in order to get the highest price. The auctioneer is hired by the seller to go above and beyond the reserve price of the auction. Some auction experts recommend waiting until the house meets its reserve price before bidding, since you may be competing against a co-owner or vendor when bidding. Once the reserve is met, the vendor bidding and co-owner bidding may stop since both vendors and co-owners have vested interests in making sure the home reaches the reserved price at auction.

Bid until you’ve reached your predetermined stopping price. If you successfully win the auction, be prepared to hand over some of the winning bid immediately. If you fail to win the auction, have your agent or broker begin a new search until you find another property you like. Eventually, you should be able to utilise an auction to purchase the home of your dreams or an investment property that could fetch a great return.

(photo: sxc.hu/photo/952313)

Buying Bank Repossessed Property in Australia

Richard Colum — Thu, 26 Aug 2010 01:52:17 +0000

The global economy greatly affects the prices of homes in Australia, and the number of bank repossessions increases every time the global economy suffers. While some lenders are more lenient with homeowners who have a history of paying their house payment on time and being long-term customers, the rate of bank repossessions still rises when people face unemployment and financial hardships. Buyers looking to break into the Australian home market may find that purchasing a repossessed home helps them save money on a home purchase. However, there are some steps buyers should take to ensure that they end up with the home and property they want.

Inspecting Repossessed Properties

While you may be able to view bank repossessions online or through a brokers portfolio, it’s always best to inspect repossessed properties in person before making an offer. Pictures can be deceiving based on the angles and areas photographed. While you may think you’re getting a steal on a great piece of Australian property, when you get there you may find that the house is in disrepair and the property is virtually unmanageable for landscaping. International buyers may be able to hire a representative to look at the property for them, but again this is trusting someone else’s opinion and viewpoint of the property. If you’re serious about buying property in Australia, make sure you have the time and means necessary to visit the property at least once.

During your visit, remember to evaluate the future worth of the home. Just because the home is currently selling at a repossessed price, that doesn’t mean it won’t sell for much more in the future. Talk to your real estate agent about the appraisal of the house and determine whether or not the investment you make can be recouped in a future sale.

Understanding the Auction Process

Most repossessed homes are sold through auction houses. The policies governing auction sales vary from working with a traditional Australian realtor, so it’s best to understand how the auctions work before expressing interest in a property. You can bid for yourself or hire an expert to bid for you. The money will need to be available immediately, so it’s best if international buyers use a broker or other expert to bid at the auction. Understand that the value you see in a repossessed home is also being seen by other bidders, many who have few financial limits. Don’t go overboard and remember that more homes will come on the market. Buying a foreclosed property in Australia can be an exhilarating experience, but remember to know your limits, understand the buying process, and talk with a realtor or broker if you’re unsure about the purchase and don’t hesitate to learn more about how Australian real estate buyers are protected.

Cosmetic Optimising Tips for Those Selling a Home

Dana Prince — Wed, 18 Aug 2010 20:29:17 +0000

Selling your house in Australia? Most Aussie realtors will tell you that staging your home is important to impressing
buyers and increasing your chances of closing on a contract. Sometimes you’re lucky and are able to just rearrange furniture and place a few vases of flowers around the house to increase the comfortable feel and look of the
living spaces. However, some homes need a little more cosmetic work in order to make it more presentable. You can always opt to sell the house as-is and expect the buyers to remodel once they purchase the home. But you’re more
likely to get a contract close to your asking price if the house is already in move-in condition that is pleasing to the eye.

Flooring and Paint

Two of the biggest possible eyesores in a home are the flooring and paint. Since these two aspects of a home take up so much space, they’re the first things people notice when they walk into a room. If the paint is chipping,
faded, or a color that most people wouldn’t find pleasing, you’re best bet is to repaint. Stick with neutral colors so that buyers can visualise their furnishing placed around the room. If the color is too bright or loud,
the buyer immediately thinks about the work involved in repainting the house. While you don’t need fresh paint in every room, especially if you’ve just recently repainted an area of the home, it helps to have fresh paint in areas where the current color makes the room look small or dark.

Wood and tile floors usually go over well with buyers. Wood floors should be buffed out and waxed before buyers start looking at the home. Tile can be regrouted to spruce it up or given a nice clean shine. Carpet is a popular
flooring choice, so just make sure your existing carpet isn’t badly stained, trodden, or snared. It’s best to replace any carpet that decreases the overall look of a room.

Lighting and Fans

The styles of light systems and fans change with time. If your home has an outdated lighting style, consider upgrading the more noticeable light systems with something more modern. This usually works well in the kitchen and bathrooms. If fans are installed in the home, make sure they match the rest of the home. If they are an older style fan, consider upgrading and adding attractive fan pulls and lights.

Some buyers will be wary of excessive curb appeal but while these cosmetic attributes may seem like small things to fix, they can impact how a qualified Australian home buyer views your home and how quickly they consider making a purchase— hopefully for your asking price.