"Keep an eye on interest rates"

Hi Property Lover's

I came across this article today today from Australian Property Investor that i thought had some information home owner's should read.

Australians are being warned to be ready for interest rate increases despite the Reserve Bank of Australia's decision to keep the cash rate at 3.75 per cent this month.

Financial comparison website RateCity found interest rates for home loans have been rising despite the cash rate remaining unchanged since December 2009.

It recorded an average increase of 0.32 per cent for standard variable home loan rates across more than 100 lenders in Australia since the Reserve Bank lifted the cash rate by 0.25 per cent in December.

The four major banks – ANZ, Commonwealth Bank, National Australia Bank (NAB) and Westpac – which hold the majority of home loans, increased their standard variable home loan rates by 0.35 per cent on average since December.

RateCity's chief executive officer Damian Smith says borrowers need to be prepared for likely rate rises and not be lulled into a false sense of security by the Reserve Bank's latest decision.
"This is the time to be comparing how high your interest rate has grown compared to the average rates on the market," he says.

"Currently comparison variable home loan rates are as low as 5.7 per cent for a typical $300,000 loan, which could save you over $1300 per year compared to the average standard variable rate of 6.31 per cent for this loan size, or potentially over $33,000 over the life of a 25-year loan (excluding break costs and other fees)."

This information was gathered from from:

http://www.apimagazine.com.au/api-online/news/2010/02/keep-an-eye-on-interest-rates

Thinking of buying or selling in Nedlands? Call me anytime.

Coming Next week

Hi Property Lovers

Coming next week.....ground floor 3 bed villa with over 200sqm on living with WORLD CLASS PANORAMIC RIVER VIEWS...walk from your front courtyard directly onto the foreshore of the Swan River.

This property has to be seen to believed.......

To register your interest please call me Mark Anderson on 0411 645 174

The Steps to Buying A Property

Hi Property Lovers

I came across this article which i thought was a good read for people who are wanting to get into the market:

Step 1 - Do your research

OWNING property has always been the great Australian dream. Whether you are a first-timer or an experienced homebuyer, you need to ask yourself why you want to buy.

Will you want to live in it or are you buying it as an investment to rent it out and pay it off. Do you want a house or apartment, large or small, townhouse or land to build?

Whatever your answer, the more real estate market research you do, the more likely you are to effectively define your goals and understand what’s affordable.

Get onto mailing lists and develop good relationships with real estate agents in the area in which you are looking. Keep in regular contact with them. They can alert you to properties about to come onto the market in your price range.

Step 2 - Work out how much you can afford

Calculate how much you can spend, say one third or less of your pre-tax income in loan repayments. The amount will vary with different lenders, so if you don’t get the deal you want from one, try another.

The loan to value ratio (LVR) is the percentage of the purchase price that lenders will agree to lend. Some lenders will insist you have as much as 10 per cent of the purchase price in a deposit.

Don’t forget to factor in the following costs: legal fees, loan establishment fees, government charges (stamp duty and GST), property and pest inspection fees, moving costs and building and contents insurance.

Step 3 - Find a lender

Look for your loan at the same time or before you start looking for property.

Do some research online to see who is offering the best mortgage interest rates, then approach them in person to get approval “in principle” for your loan. This means if you need to buy at auction, you have the money organised ahead of time.

Banks, building societies, credit unions, solicitors and mortgage originators all offer home loans. A mortgage broker can help you find the best lender and the best rate for you.

There are many loans on offer, so you will need to do more research to understand the terms: a honeymoon rate offers a cheaper interest rate for the first 12 months; a standard variable rate rises or falls when interest rates rise or fall; fixed rates are fixed for a certain period; a redraw loan means you can pay it off, then reborrow that money – you may have to pay a service charge of say $25 every time you redraw.

Step 4 - The buying process

You’ve found the property you want to buy and arranged building or pest inspections. They are good, you make an offer, negotiate the price and the final offer is accepted.

Contact your solicitor or conveyancer (to find one visit www.solicitors.net.au) to do title or body corporate searches, draw up a contract, then arrange to exchange it with the seller.

Once you exchange contracts you are legally bound to go ahead with the purchase. This is also when you pay your deposit of around 10 per cent of the purchase price.

Sign the contract if you and your solicitor are satisfied that everything is in order. Often there are six weeks between exchange and settlement. During this time, you can arrange building and contents insurance on the property, and income protection insurance for yourself.

On the day you are due to settle, before your solicitor passes over the final cheque (or makes the transfer online) you should ask to inspect the property.

You need to check that no damage has been done to it in the intervening period and that all fixtures and fittings that appear in the contract are still in place.

You don’t have to settle on the property until all these conditions have been met.

This information was gathered from:

http://www.news.com.au/money/guides-tools/buying-a-property/story-e6frfme0-1111114595903

Thinking of buying or selling in Nedlands? Call me anytime.

SOLD SOLD SOLD

Hi Property Lover's

SOLD SOLD SOLD

51 Tyrell Street, Nedlands

For further information please call Mark Anderson on 0411 645 174

Thinking of buying or selling in Nedlands? Call me anytime.

"Avoid overcapitalising when you renovate"

Hi Property Lovers


I came across this great article in Australian Property Investor which i thought was a good read.


Renovated properties may sell faster but not necessarily at a much higher price, according to a recent PRDnationwide agent poll.

The poll results also revealed that the most basic cosmetic touch ups to a dwelling such as painting and landscaping will sell for more profit compared with the more major renovations.

"Street appeal is king," said PRDnationwide Mudgeeraba agent Karl Grossman.

"Many people do a 'drive by' before looking inside. It's much easier to sell a house that looks good on the outside than vice versa. People make up their mind before they get to the front door whether or not they like a property," he said.

PRD Jens Gaunt Warrnambool director Brad Miller said to get it valued first and to seek advice on the renovation's potential added value before proceeding.

The worst return on investment according to the poll was the upsized kitchen and bathroom, along with the extension.

"Owners need to understand the importance of working to a budget," said PRDnationwide New Farm director Adam Gray.

"You need to research who you're targeting as a buyer."

PRDnationwide's five top tips for renovating for profit are:

It's better to focus on presentation rather than renovation. Getting professional advice from a property stylist will give a better result.

Simple things like moving furniture, extra lighting, adding art work and cushions will improve resale value;

Renovations will always cost more and take longer than you budget for;
Don't just design what you like, if the idea is to sell it at the end, you must cater for the local market;

Talk to a local real estate agent to find out what price bracket you should keep the final product under.


This information was gathered from:
http://www.apimagazine.com.au/api-online/news/2010/02/avoid-overcapitalising-when-you-renovate


Thinking of buying or selling in Nedlands? Call me anytime.

For Sale 5&6/14 Vaucluse Ave, Claremont

Hi Property Lovers

Its with great pleasure to introduce to the market 2 units transformed into 1 charming villa. the heart of a whisper quiet village location just moments to parkland, transport and the exclusive “Bayview” restaurant/shopping precinct. This beautifully renovated period villa offers young/older couples an exceptional opportunity.

Accommodation:3 bedrooms, 2 bathrooms, kitchen, meals, dining, living, alfresco area & court yard and 2 car bays

This villa is truly one of a kind! large living spaces, private alfresco, good accommodation and a prestigious location.....THIS HAS IT ALL!

For Sale $995,000

Thinking of buying or selling in Nedlands? call me anytime.

The Month of January

Hi Property Lover's

As I said in one one of my previous post, January is traditionally the quietest month in the real estate industry. This year Nedlands had a good January with 12 sales to a total value of $12,033,000.

Dalkeith had 7 Sales with a total Value of $14,355,000.

If you would like any further information on what is happening in the Nedlands and/or Dalkeith area please feel free to contact me via e-mail on mark@mackhall.com.au or anytime on 0411 645 174.

Thinking of buying or selling in Nedlands? Call me anytime.

"Property investor numbers to double"

Hi Property Lovers

I came across this article on Australian Property Inspector which i thought was a good indication of what is to come.

The number of Australians intending to invest in property has almost doubled in the past year, according to new research from Resi Mortgage Corporation.

With big rent increases and strong capital gains expected for 2010, wannabe investors intend to act earlier rather than later, said Resi Mortgage Corporation consumer advocate Lisa Montgomery.

"People are noticing that yields are high and property has returned to being the 'new black' to invest in. Confidence is out there," said Montgomery.

Meanwhile Australian Property Monitors (APM) expects rent increases of up to 11 per cent in 2010, following little growth in 2009.

"An improving employment outlook means, overall, renters will be more willing and able to afford rental increases," said APM economist Matthew Bell.

The combination of housing shortage and the sharemarket crash has provided good incentive for property investment, said Bell.

However while rents and price growth increase, it's important not to overlook rising interest rates and land tax, he said.

But according to Portfolio Management Services investment specialist Jock Bing, "the supply and demand gap is only expected to widen further during 2010".

This information was gathered from:

http://www.apimagazine.com.au/api-online/news/2010/02/property-investor-numbers-to-double

Thinking of buying or selling in Nedlands? Call me anytime.

QUIET SALE....

Hi Property Lovers

SOLD SOLD SOLD

Napier Street, Nedlands

No Formal Marketing

No Home opens

Full Asking Price

I still have 4 genuine buyers looking for land value Nth of the Hwy. If you are thinking of selling and don't want the hassle of home opens please let me introduce one of my buyers to your home.

Thinking of buying or selling in Nedlands? Call me anytime

Good news for WA property

Hi Property Lovers

I came across this article on Australian Property Investor, I know its focusing more on the entire state but allows you to get an insight on value.

The Western Australia property market has sprung back with strong median price growth in houses and units, according to the Real Estate Institute of Western Australia (REIWA).

December quarter data revealed new median price records for Perth ($480,000); Geraldton-Greenough ($375,000); Kalgoorlie-Boulder ($350,000); Karratha ($822,000) and; Port Hedland ($685,000).

REIWA president Alan Bourke said Port Hedland was the standout with a $70,000 spike.
"Perth has more than recovered all its 12 per cent loss in median price experienced in 2008, with 14.3 per cent growth in the median house price for 2009," said Bourke.

Perth units and apartments also hit a record high median price of $400,000, and a 15.3 per cent growth for 2009, due to the demand pressure for affordable housing and first homebuyer activity, said Bourke.

While median prices for land jumped 18 per cent in the quarter to $265,000, it still ran short on the 2007 boom median.

Bourke advised that the 14.3 per cent median price growth for units and apartments in 2009 didn’t mean values had jumped, rather it was an indication that upgrade buyers were acquiring more expensive property at the same time the first homebuyer market was diminishing.

More positive signs for the Perth market were demonstrated in the drop in average number of selling days on the market by 10 to 54.

This information was gathered from:

http://www.apimagazine.com.au/api-online/news/2010/02/wa-median-prices-strengthen

Thinking of buying or selling in Nedlands? Call me anytime.

COMING THIS WEEK

Hi Property Lovers

Coming up this week.....A unique opportunity to purchase 2 units formed into one residence in a small complex.

To register your interest please call me on 0411 645 174.

Thinking of buying or selling in Nedlands? Call me anytime.

"Fixed interest rate ideas are in a spin"

Hi Property Lovers

I came across this article today that can give a little more insight to what is best for you regarding fixed or variable mortgage.

THE Reserve Bank's decision last week to leave the official cash rate on hold has put a new spin on the "fixed or variable'' debate.

Financial markets have gone from pricing in a cash rate of 5.5 per cent by the end of the year to pricing in a rate of less than 4.5 per cent.

That means variable rates are unlikely to rise by as much as was feared, and also that fixed rates are due to be repriced downwards.

While the decision of whether to fix or stay variable confuses everybody at some point, the pressure on owners of investment properties to get it right can be even greater because many have two mortgages to maintain.

However, experts say there are ways to minimise the impact of a rate rise on your investment property, but any increase on your principal residence has to be taken on the chin.

So, if you're going to fix anything, fix the mortgage on your family home.

Broadly speaking, there is more you can do about rate hikes on an investment property than there is on your home,'' says mortgage broker John Manciameli of Mortgage Choice.

First, there is negative gearing the ability to add up all of your outgoings on your investment property, including interest, insurances and expenses, and offset a portion equivalent to your tax rate off your tax bill.
This doesn't help much with cash flow. So landlords who are struggling can apply for an income tax variation which enables them to have the benefits of negative gearing effectively added to their monthly salary.

"Investors can apply for a Section 221D variation, which allows you to provide the tax office with an estimate of what your tax position will be at the end of the year,'' says Yellow Brick Road director James Garnsey.

"The ATO will then contact your employer, who will deduct less tax from your pay cheque.''
Infochoice.com.au chief executive Shaun Cornelius says the premium to fix rates is just too high.
"If you look at three-year fixes you're paying about 1.1 per cent more for fixed rates compared to variable rates,'' he says.

"That is a big margin and not worth the extra cost.''

This information was gathered from:

http://www.news.com.au/money/property/fixed-interest-rate-ideas-are-in-a-spin/story-e6frfmd0-1225827683789

Thinking of buying or selling in Nedlands? Call me anytime.

The Break Down....

Hi Property Lovers

People have been asking me how the market is going in the Nedlands area, so here's a short run down on what has been happening and what I expect the market to do over the next several months......Confidence has return, all you have to do is look around and see the SOLD & UNDER OFFER stickers around the suburb, home opens have also been well attended across the board & now offer's are coming in at stronger level's (full asking for some properties). this is great news for the Western Suburbs, especially Nedlands, confirming that the market has hit the bottom and is now starting to recover.....BUT with such a fast recovery in both property & the stock market and the cost of living yet again rising, the Reserve Bank has no other option than to start lifting interest rates (some economist guessing 5% by the end of 2010). With interest rate rise's comes caught ion from buyers when purchasing property. Seller's must not get caught up in the "hype"that we are back in boom times...... I've already started to notice that the expectations of buyers and seller's widening.

SELLERS: Prior coming on the market look a your competition, go to home open's in your area that are similar to your home, go in with a open mind and think is this a better location, better fixtures ect....., how long have they been on the market and how many price reductions have these properties had and most important of all, WHAT HAS SOLD IN THAT AREA IN THE LAST 2 MONTHS? Three key points to remember when selling your home are PRICE , Presentation & LOCATION. If your home represents a good buying opportunity in a highly desired location you will have no trouble selling it.

BUYERS: Interest rate rises....its inevitable that they are going to go up, but remember they are still the lowest they have been in many years. Prices have also come back from post boom level's offering some very god buy's in the area...if you find a house that is a bit outside your price level, don't be scared to put in a offer of what YOU think the property is worth, the worst that can happen is they reject offer, if so move on to the next one, they may counter the offer or they may even accept! Remember the price is there as a guide, but the property will sell what the market is willing to pay.

If you are thinking of selling and would like a obligation free market apprasial of your property please feel free to contact me on 0411 645 174

Thinking of buying or selling in Nedlands? Call me anytime.

"Living the dream as a landlord"

Hi Property Lover

I came across this great article on news.com.au about landlords, It's a good read especially if you are a investor or looking at investing.

BECOMING a landlord is the aim of many, but you need to know what you're doing.
Property investing is the subject of countless books and seminars in which so-called experts talk about the easy millions to be made.

It sounds easy but becoming a landlord is not an instant one-way street to riches.

It's to be approached with your eyes open and your wallet shut until you are sure about what you are doing. Here are some key questions to ask.

Have I got a big enough deposit?

Requirements for deposits have increased.

While landlords could get 100 per cent deposits this time last year, the maximum loan-to-value ratios (LVRs) have been cut gradually from 100 per cent to 95 per cent and now to 90 per cent.
In other words, you will need a deposit of at least 10 per cent.

How much rent do I need to earn?

There is no set level of rental income that is relative to the mortgage interest but banks will look at your income and outgoings, including repayments on other mortgages, and assess whether you can afford to cover the interest in the event there is no rent income.

"Most banks will assume four weeks a year when the property is empty," says Mortgage Choice broker John Manciameli.

How long should I invest for?

Investing in property is a long-term game. You can't rely on prices holding up or rising in the very short term and the longer you can afford to commit for the better.
What if I have tenant problems?

Many issues can arise with tenants, from late payment of rent to treating the property badly or malicious damage.Residential tenancies authorities in each state offer plenty of information.
You should take out landlord insurance. It is available from most of the major insurers and covers risks such as arrears and damage.

What if I am self-employed?

If you will have problems verifying your income and need to do a low-doc loan, you will need to stump up a 20 per cent deposit.

But if you can come up with two years' worth of business statements, bank statements and trading history, you will qualify for a normal LVR of 90-95 per cent.
Where are the best areas to buy?

Location, as any landlord will tell you, is key. But in a country with such a shortage of properties on the market, vacancy rates are historically low.

The old tips about buying within half-an-hour or so of the city centre, near shops, public transport and other local amenities hold true.

"Many banks do not like lending in certain areas, particularly regional locations, so they may insist on a higher LVR or won't lend at all,'' Mr Manciameli says.

"Others don't like high-rise blocks.''

How shall I decorate the place?

Try not to impose your own taste on the property. Make it as neutral as possible, with white tiles and neutral colours rather than wacky reds. Avoid swirly patterns on curtains simple blinds are popular.

What are the tax advantages?

Negative gearing, the most famous tax break on Australian property investment, is widely misunderstood.It works like this: if your rent falls short of covering your mortgage interest, you can claim the losses against your taxable income.

However, you don't get refunded all of the losses, only a proportion equal to your marginal tax rate. If you pay 46 per cent tax and you have a $100 shortfall every month, you get back $46 a month against your mortgage interest.

If you pay tax at 30 per cent, you can reclaim $30. Higher earners benefit from negative gearing the most.

Are apartments different to houses?

Yes. If you buy a strata property, you need to check whether the body corporate is competent and cashed up.

"That means checking the building's repair history and looking at how much money is in the sinking fund,'' says James Garnsey, a director of wealth management firm Yellow Brick Road.
"Is there enough to cover major repairs?''

Repairs and maintenance of the property are shared among the owners but major works can still cost each of them a substantial amount.

This information was gathered from:

http://www.news.com.au/money/property/living-the-dream-as-a-landlord/story-e6frfmd0-1225825299750

Thinking of buying or selling in Nedlands? Call me anytime.

SOLD SOLD SOLD

Hi Property Lovers

SOLD SOLD SOLD

20 MOUNTJOY ROAD, NEDLANDS

For further information please free to contact me.

Thinking of buying or selling in Nedlands?Call me anytime.

UNDER OFFER

Hi Property Lovers

UNDER OFFER FIRST WEEKEND

48 NAPIER STREET, NEDLANDS

For further information please feel free to contact me on 0411 645 174

Thinking of buying or selling in Nedlands? Call me anytime.

Reserve Bank's official interest rate kept on hold at 3.75pc

Hi Property Lovers

Some joy for home owner's today.....This report from news.com.au

THE Reserve Bank board has surprised the market, and left home owners relieved, by leaving its official interest rate on hold today.

The market had expected that the Reserve Bank would increase its rate by 25 basis points.
The central bank board has decided to take stock of the recovering economy, even as core inflation remains above its target range and house prices continue to rise.

Economists still expect the Reserve Bank aims to move its cash rate towards a "neutral" setting this year.

AMP Capital investors senior economist Bob Cunneen said Australia was still on course for a cash rate of five per cent by the end of calendar 2010.

"It's just basically a stay of execution," he said on today's decision.

"The bank is just waiting for more information before it moves again.

It's really a board that's said `we've started tightening the screws, but there is no need for pushing on now'.'

NAB, Westpac and Commonwealth said they would hold their standard variable interest rates on mortgages steady.

The Government has welcomed the board's decision to hold fire.

"Today's decision means a family with a $300,000 mortgage are still paying around $600 less than they were paying 18 months ago," Treasurer Wayne Swan told parliament today.

Economic conditions 'stronger than expected'Reserve Bank governor Glenn Stevens said that economic conditions have "been stronger than expected, after a mild downturn a year ago".

"The effects of the fiscal stimulus on consumer demand have now faded, but household finances are being supported by strong labour market outcomes and a recovery in net worth," he said in a statement.

"Public infrastructure spending is now boosting demand, as is an upturn in housing construction. Investment in the resources sector is strong.

"The rate of unemployment appears to have peaked at a much lower level than earlier expected.
"Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by the fall in commodity prices at the end of 2008, a noticeable slowing in private‑sector labour costs during 2009, the recent rise in the exchange rate and a period of slower growth in demand."

Last October the Reserve Bank became the first central bank to increase its rate, as the Australian economy began growing again while other nations continued to grapple with the financial crisis.

By the end of the year, the Reserve Bank had increased its rate by a total of 75 basis points.
Mr Stevens said that lenders had raised rates at a faster rate than the Reserve Bank increased its cash rate.

"Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point," he said.

"Since information about the early impact of those changes is still limited, the Board judged it appropriate to hold a steady setting of monetary policy for the time being."

But he added that its cash rate would still have to be further tightened in order to keep inflation under control.

"If economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term."

A 25 basis point increase to the official rate would have added about $50 a month to a $300,000, 25-year home, according to research company Canstar Cannex.

In other data out today, business confidence was dented in December by last year's interest rate hikes despite business conditions expanding in the December quarter.

This information was gathered from:

http://www.news.com.au/money/interest-rates/reserve-banks-official-interest-rate-kept-on-hold-at-375pc/story-e6frfmn0-1225825936588

Thinking of buying or selling in Nedlands? Call me anytime?

UNDER OFFER

Hi Property Lovers

UNDER OFFER

2 Kalgoorlie Street, Mount Hawthron

For further information please feel free to contact me.

Thinking of buying or selling in Nedlands? Call me anytime.