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January 2012
Use your head when selling
Selling your home can be an emotional experience – after all, it’s your home we’re talking about. But in a market where supply exceeds demand, it’s important to let your head rule your heart. Especially if you want a good price within a reasonable time frame. Our General Manager Brock Gurr explains.
The market today
“Right now, there are more sellers in the market than buyers. That means there are plenty of motivated sellers, so you have to be smart. This simply isn’t a climate for premium sale prices. You need to be able to recognise a good offer when you get one,” says Brock.
“As a seller, it’s important to educate yourself. You need to understand that you can’t control the market – nobody can. Ultimately, the market will decide what your home is worth, and the market doesn’t care if you want – or even need – to achieve a certain price for your home.”
So what can you do? In Brock’s experience, there’s no substitute for doing your homework.
Educated sellers make better decisions
“Watch the market closely, every week, if not daily,” explains Brock. “Get to know your competition. Learn what’s selling and how much it’s selling for. Find out how many sales are made in your suburb every week or month, and the average days on the market. Talk to us – we’re here to help you master the market.
“That way, you’ll be better placed to recognise a good offer. The danger is you’ll pass on a good offer and end up with your home on the market for longer than necessary, which can create a situation where you end up having to accept a lower offer.”
Be realistic from day one
The best way to avoid a panic-sale situation is to be realistic in your expectations from the outset, which is where educating yourself and working closely with your agent comes in.
Brock’s advice: “Be competitive on pricing to attract interest early on. Days on the market will impact on your price.
“If you don’t receive an offer, be willing to listen to feedback and adjust accordingly. Make sure you understand your own financial position and the holding costs, compared to hanging on for an extra couple of thousand dollars. Holding out for a better offer could cost you more in the long run.
“Remember, buyers are choosing value above almost everything else, so put yourself in a buyer’s shoes. Stay objective. Try not to let your emotions get in the way. And remember,” Brock concludes, “if you’re unsure or you need more information to be able to make a sound decision on an offer, ask us – that’s what we’re here for.”
If you are planning on selling, contact our team to find out more about the local market and develop an effective strategy.
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October 2011
Why trading up in a downturn makes sense
With the media continually reporting on the downturn in the property market, you might think now is a bad time to sell. But if you’re climbing the property ladder, a falling market is actually the ideal time to sell your home and buy a bigger, better one. Here’s why.
Remember, everything is relative
If you’re worried about selling because your home is now worth less than it was two or three years ago, you need to remember that everyone is in the same boat. And if you’re trading up, that works in your favour.
An example: Trading up to get ahead
Say your current property is worth $400,000 today, when it had been valued as high as $440,000. That means the market has lost 10%.
Now think about the home you want to buy. Let’s say your next dream home is worth $500,000 today. Assuming that house has also lost 10% of its value, it would’ve been worth $550,000 at the height of the market.
So if you pay $500,000 for your next house, you’re effectively ‘saving’ $50,000, whereas you have ‘lost’ only $40,000 on the property you’re selling. You’re instantly ahead $10,000.
The freedom to pick and choose
Of course, if you’re downsizing, then the downturn doesn’t really work for you. But if you’re upsizing, it makes perfect sense, plus there are other benefits to consider.
For instance, if you sell your property in a buyers’ market, there is less pressure to rush into buying your next home. With prices more stable, you can take your time, weigh up the options and negotiate a good price, without having to worry about the market rising in the interim, potentially leaving you out of pocket.
If you’re thinking of trading up and would like a free, no-obligation appraisal for your home, contact us on 9251 6688.
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Landlords: Protect yourself and your tenants
If you’ve got an investment property, you could be prosecuted and fined if it doesn’t comply with Government legislation regarding RCDs and smoke alarms. So read on to make sure you and your tenants are covered.
RCDs: Your obligations as a landlord
What are RCDs? They’re vital pieces of electrical kit that monitor the flow of electricity from the main switchboard and prevent electrocution by cutting the electricity supply. As a landlord, you are legally obliged to ensure two RCDs are installed in each property you own.
All properties constructed since 2000 should already have RCDs, but it’s up to you to check and make sure RCDs are fitted by a licensed electrical contractor.
If electrical inspectors check your property and find that you don’t have RCDs fitted, the penalties are heavy. Individual landlords can be fined up to $15,000, while corporate bodies can be fined $100,000 if RCD regulations are breached.
You need to fit smoke alarms too
If you haven’t already, you must also ensure your rental property has mains-powered smoke alarms fitted. Again, from 1 October 2011, all dwellings subject to a residential tenancy agreement must have smoke alarms installed in accordance with regulation 38L (3).
It doesn’t matter whether you have just entered into a new residential agreement or not. By law, all rental properties must have smoke alarms installed by a licensed electrical contractor.
Your Local Government can inspect your property to ensure you have installed smoke alarms. They can issue a rectification notice or an infringement notice, but can ultimately prosecute breaches and fine you up to $5,000.
The requirements for smoke alarms vary, depending on the type and layout of your property, so find out more about the legal requirements on the fesa website.
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September 2011
Our big-bank take on interest rates and more
This month, we spoke to Andrew Rodgers, Home Finance Manager at Westpac Thornlie, for some expert advice and insights on mortgage and the property market. Read on to find out what the big banks expect on the interest rate front, how to shop around for the best mortgage and why Andrew believes there’s great value in the WA market right now for astute property investors.
The GFC, RBA and interest rates
While Western Australia has weathered the GFC relatively well, it’s fair to say that ongoing uncertainty in the global financial markets has put a damper on WA’s formerly booming economy.
“Australia’s economy and economic fundamentals remain strong,” explains Andrew, “supported by historic demand for key exports, we have low unemployment, good terms of trade, low levels of government debt and a strong banking system.
“The Reserve Bank (RBA) needs to balance this local strength against the economic uncertainty being experienced overseas in the US and Europe, which can affect local economic sentiment and influence local appetite for home loans.
“So while it’s clear that consumer-driven sectors of the economy are having a tougher-than-expected time, any upward pressure on interest rates is likely to remain modest. Off the back of the recent RBA commentary we would certainly expect interest rates to remain on hold,” he added.
The property market in WA
If interest rates are likely to remain on hold for the foreseeable future, what are the implications for WA’s property market? Surely a stable economy and interest rates should be fuelling activity in the property market, so why is there a general perception that the market is fairly sedentary?
“It’s true,” remarks Andrew, “the property market in Western Australia is softer than the national average. Many people are adopting a ‘wait and see’ approach. But that simply means there’s plenty of value for property investors in WA at the moment.”
Capitalising on the market
So, what should investors and home buyers be doing to capitalise on the market? There’s good value in the property market right now, but what about the mortgage marketplace?
Andrew firmly believes it’s a great time to shop for a mortgage, as well as property.
“The uncertainty in the current economy means that the home mortgage market is more competitive than ever, with customers being able to get themselves a great deal,” he says.
“Our experience is that customers are looking for more than just a cheap headline rate, putting much more emphasis on expertise and advice, value, speed, efficiency and ease of experience than anything else. 75% of all customers who took a mortgage with us cited product features, simplicity and good customer service as their primary reasons for choosing Westpac.
“For that reason,” Andrew says, “it’s a good idea to check with other banks, such as Westpac, to see if you can get a better deal. We all know to service our cars, but few of us get a financial check-up. Banking products are always evolving and innovating.”
What to look for in a new mortgage
Now’s the perfect time to move in the property market and get a great mortgage deal into the bargain. So what should we be looking for from mortgage lenders? What represents a good deal?
“Customers should look at more than the headline interest rate when looking for a mortgage,” Andrew advises. “They need to consider the whole package – speed of approval, efficiency, guaranteed settlement, home loan portability and loan flexibility.
“That’s why 80% of our mortgage customers take up our award-winning Premier Advantage Package loan. It includes a number of additional benefits, including fee-free credit cards, discounts on a range of related products such as home and content insurance, and no account-keeping fees on savings accounts.”
Sounds good, but there are a lot of factors to consider. Mortgages are confusing enough at the best of times.
No problem, says Andrew. There’s always help at hand.
“Always talk to your bank,” he concludes. “If in doubt, give us a call. We are always happy to discuss your situation and options.”
If you would like to speak to Andrew, call 9238 8107 or visit Westpac’s Thornlie Branch at 314-316 Spencer Road (corner Thornlie Avenue). For some one-on-one advice about buying or investing in property, contact our team at Brown Murray on 9251 6688.
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August 2011
How is Perth’s rental market performing?
APM’s March report on rental growth and yields across Australia shows the market continues to be good for property investors. And Perth is one of the country’s star performers. But what’s the story at a local level?
The APM statistics for Perth
In March, the median weekly ‘asking rent’ for a house in Perth was $380, putting our city above Melbourne, Brisbane and Adelaide in the asking-rent stakes. The same applies to units, with a median weekly asking rent of $360.
Even more impressively, Perth ranked as the leading city in terms of gross rental yields on a year-on-year basis, with houses reaping a 9.5% year-on-year growth in yields and units generating 5%.
The reality locally
Statistics are all well and good, but the property market comprises a host of markets within markets. Often, the story differs wildly from region to region, or even suburb to suburb. So how is the rental market performing locally?
As Belinda Dufall, our Business Development Manager, explains, “At a local level, a lot of people are thinking it’s a great time to buy an investment, or just buy in general.”
“Our consultants have seen an increase in investors at home opens over the last two weeks. Around 30-40% of home open visitors are investors,” she adds. “I’ve heard about one lady who’s bought two investment properties in the last three weeks – she’s renovating them to sell or rent out.”
What sort of investment properties are in demand?
“We’re seeing a lot of rental enquiries from young families, young couples and single parents, with plenty of interest in family properties priced around the $280pw to $360pw mark,” says Belinda.
“Well-presented properties with a warm, homely feel are attracting the most interest, as usual. And it’s worth noting that properties that have lots of high quality photos prove a lot more popular – it’s always worth investing in some good shots.”
If you would like to find out more about our rental services, or need some advice on entering the rental market as an investor, get in touch. Call 9251 6688.
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Ready to pounce on the spring market?
With interest rates stable and buyers out in force during July, the property market looks set to spring into action as we head for warmer weather. Will you be ready with a cool head when the market moves?
Traditionally, buying and selling activity heats up during spring, a time of new beginnings and fresh starts. So now’s the time to consider your position, especially with the potential for a full summer sprinkler ban, which could put a dampener on buying and selling sentiment during the hotter months.
If you want to sell, start preparing your home. Do some DIY. Arrange a valuation. Get the wheels in motion so you’re ready. And as a buyer, make sure you keep your eye on the market. Talk to real estate agents. See where the best value lies.
Need some advice? Want to tee up a free, no-obligation appraisal? Then call us on 9251 6688.
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July 2011
“Yahoo!” says $25,000 ‘1 in 100’ winner Jacqueline
Our ‘1 in 100’ Promotion came to a conclusion in October 2010. But on the big night of the much-anticipated prize draw to win $25,000, our winner – Jacqueline Crofts – wasn’t there. So what happened?
“I was working up north in Dampier when the ‘1 in 100’ draw was made, so the first I knew about my $25,000 win was when Brown Murray gave me a call,” explained Jacqueline.
“My partner and a few other people were there when I got the call. I couldn’t believe it at first. Then, when it sank in, there were a lot of yahoos,” she added with a chuckle. “Now I’ve decided what I’m going to do with the money – I’m getting a new kitchen.”
So it’s fair to say Jacqueline is pleased she chose to sell her home with Brown Murray during the ‘1 in 100’ Promotion?
“I didn’t know about the ‘1 in 100’ competition when I signed up,” said Jacqueline. “I’d seen a lot of Brown Murray signs around – a lot with sold signs on – and that’s why I contacted them initially. And yes, I’m glad I chose Brown Murray. They did a great job.”
“They’re great value for money,” she laughed.
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Rent reviews are vital (and easy)
Rent reviews can easily slip under the radar. Weeks become months and, before you know it, your rental property is woefully behind the market in terms of rental income. But it’s better for everyone (including your tenants) to stay on top of things. And it’s easy!
Everyone on the same page. Literally.
For property owners, there are many benefits to reviews. Regular rent reviews mean you can cover changes in interest rates. Higher rents also make properties more attractive if you decide to sell. Plus, if your tenants break their lease you can’t advertise at a higher rental amount.
What’s more, if you’ve got long-term tenants, it’s much easier for them to plan their finances based on incremental increases. Much better than suddenly being hit with a huge increase out of nowhere.
How often is often enough?
Reviews can be conducted every 6 months, so on a 6-month lease it makes sense to review on renewal. If your tenants have a 12-month lease, schedule a 6-months or mid-term review. We also recommend increasing your property’s bond every 12 months, as part of a review.
How does a review work?
The review process is easy.
• Two months before your 6-month review or lease renewal, we contact you (the owner) to see if you would like to conduct a review
• If you do, we contact your tenant to arrange a new agreement
• They sign it
• That’s it!
It’s a process that also encourages tenants to make their intentions clear. If they’re staying, great. If they’re planning to leave, the sooner we know, the sooner we can find a new tenant for you.
If you would like to find out more about our rental services, or you’re ready for a rental review, contact our team on 9251 6688 or email reception@bmre.com.au
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June 2011
A panic sale is usually a bad sale.
The aftershocks of the credit crunch are forcing sellers into the market – sellers who are under financial pressure to sell. Not a nice situation to be in. Here are some tips on how to avoid it.
Don’t bury your head in the sand
If financial pressures are mounting, it’s no good simply hoping for the best – the sooner you acknowledge there’s a problem, the easier it will be to address.
Take action sooner rather than later
Selling your home might be inevitable if your financial situation is becoming untenable. So start researching your options early. Sellers who sell under pressure often end up compromising on their sale price, which will only add to your financial pressures.
Be realistic
Selling your home under pressure can be an emotional rollercoaster. Stay level headed. Be realistic about your sale price. Don’t hold out for the dream price and miss out altogether – it isn’t worth risking a bad credit history when you can always re-enter the housing market in a year or two.
Look at renting your property
Renting your property might be a viable alternative to selling.It can be a lot less costly than selling and returning to the property market down the track. Get a rental appraisal when you have your property appraised for sale – find out what rent you could achieve and weigh up your options.
Talk to your agent
Be honest and upfront with your agent. Explain your situation and any hard and fast financial deadlines you have to meet. Your agent is there to help you.
If you’re under financial stress, the longer you put off your decision to sell, the fewer options you have. Contact us for some no-obligation advice.
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The bottom of the market, a top time to invest.
If you’re considering taking the investment property plunge, now could be the time to dive in and get set to ride the next big property wave.
High capital growth potential
There’s no doubt there are some investment bargains to be had. Just ask our sales team. What’s more, if the market is on the way up, as many believe, the long-term growth potential is equally clear. And in the meantime you could be enjoying healthy rental returns.
Low rental vacancy rates
With more people renting in these tough economic times, rental vacancy rates are low. That means you can take your pick from the tenants looking for good rental properties – we have lots of great tenants on our books looking for properties right now.
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Don’t miss out. Be a tenancy hit.
Looking for a rental property? You’re not alone. Competition for rental homes is fierce, with demand for quality properties outstripping supply. So when you find the ideal place, how can you ensure you’re at the front of the queue of potential tenants?
Hit the ground running: With demand so high, it’s unlikely you’ll be the only person applying for the rental property you’ve found, so you have to be quick and organised. Show the property manager you’ll be a great tenant.
Complete your application properly: Make sure you fill in the application paperwork properly. In full. Nothing says sets alarm bells ringing for a property manager than a half-finished application.
Have the correct identification ready: The property manager you’re dealing with will need identification to accompany your application. Check what forms of ID are required and make sure you have them at hand.
Show them the money: Seal the deal by showing the property manager you have the holding deposit ready and waiting, along with proof of income.
Contact our Rental Properties team on 9251 6688 for more friendly advice on securing that perfect rental property.
If you would like some advice on the rental marketplace, call Belinda Dufall on 9251 6688. Or, if you’re looking for a suitable rental property investment, don’t get left high and dry – contact our sales team for the inside track.
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May 2011
Why Chris Judd should sell your home.
Chris Judd and Edward Curnow both play AFL football for Carlton. Everyone knows Chris Judd is exceptional. Edward Curnow – not so much. And that’s why Chris Judd earns more. He earns more because he’s worth more to the club, providing a better return on investment.
What’s all this got to do with selling your home? Everything.
Getting the best price doesn’t come cheap
All too often, sellers fail to realise the full sale potential of their home because they opt for an agent based on their commission. Truth is, there are much more important factors to consider.
Can’t sell, won’t sell
Anyone can sell your home. Securing the best price isn’t quite so easy. So if the agent you’re talking to can’t even negotiate their own commission – if they have to lower their commission to convince you – alarm bells should be ringing in your head. Why are they so desperate?
The proof is in the pudding
While it’s important to approach reputable agencies, the agency won’t sell your home. An agent will. So quiz them. Good agents are happy to justify their commission. Ask for hard facts, such as recent list vs sale prices – only then can you be sure you’ll get a good return on your investment.
Want to pick our brains? Contact us for a no-obligation home sales consultation.
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Beware the rose-tinted rental glasses.
The rental market is strong right now. There are plenty of tenants around. But don’t get suckered by the hype. If you’ve got a rental property you still need to be realistic, otherwise you could miss out on the most important element for any successful rental property – good tenants.
Different suburbs, different stories
There might be some areas in Perth where tenants are entering bidding wars to secure rental homes, but only for certain properties in certain areas. For instance, in the City of Gosnells vacancy rates are around 7%, yet good properties still take 2-3 weeks to let. Moreover, rental prices are stabilising.
Remember, the rental market is fragmented – there are markets within markets – so compare apples with apples instead of taking too much notice of misleading averages, statistics or media reports.
Finding good tenants is still a priority
In the long-run, securing good tenants is as important as ever. Bad tenants can, quite literally, ruin your rental property fortunes. It’s therefore vital to ensure your property is well presented and well priced. Good tenants are like good buyers. They’re fussy and looking for value for money.
We have lots of great tenants on our books looking for long-term rental properties. Contact our Property Manager Belinda Dufall for more details.
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April 2011
Thinking of moving? The market already is.
With the promise of cooler autumn weather on the way, the property market is warming up nicely.
Buoyed by stable interest rates and lending policies, buyers are out in force. There’s a feeling that the market is ready to move. Attendances at home opens are up. Multiple offers on properties are a regular occurrence. In short, buyers are confident about finding good value at current prices.
It all points to a positive marketplace where demand (particularly for well-presented, low-maintenance properties) is strong, making it a great time to make your move, whether you’re buying or selling. Call us for a free appraisal today – you could be settled in your new home by winter.
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Eeny, meeny, miney, more choice for investors.
Now’s a great time to invest in property. Competitive house prices and low rental vacancy rates mean you can take your pick of investment properties... and tenants.
It’s little wonder more and more investors are jumping into the market. Tougher economic times have led to an increase in people renting. This demand has led to low vacancy rates, which, in turn, have provided investors with excellent returns and the opportunity to pick and choose tenants.
We have lots of great tenants on our books, all looking for long-term rental properties. Contact our Property Manager Belinda Dufall for more details. Or, if you’re thinking of investing in property, talk to one of our sales consultants for some advice on finding a prime investment property.
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A little forethought, a big sale price.
There’s an art to achieving the best possible price for your home. It isn’t rocket science, but you’d be amazed how many people (agents included) get it wrong. Here’s the right way to go about it.
Good looks will only get you so far
It goes without saying that there are a whole host of things you can do to make your house look more attractive to buyers. Tidy the garden. Pep up your lawn. De-clutter living areas. Even a little remedial DIY. But all the tidying in the world won’t help unless you get people through the door.
Maximum exposure is the key to maximising your sale price, which is where marketing and an effective pricing strategy come in.
Getting the biggest bang for your marketing buck
When it comes to marketing your property, there are lots of options. Be sure to compare the packages different agents offer. As a bare minimum, ensure your home benefits from:
· Professional photography. Not some snaps taken by your agent or a friend, but professional shots. Buyers will be able to tell the difference a mile off.
· Online exposure. Ensure your agent has the Internet covered – it’s arguably THE most valuable channel to prospective buyers. Make sure your agent’s website works. It should be easy to navigate, simple to use and up to date.
Pricing: The fine line between realistic and ambitious
Buyers do their research, so it’s critical that you get your pricing strategy right. Too high – nobody will be interested, which can interfere with your plans to buy a new home. Too low – you lose out. Either way, getting it wrong can be a costly mistake.
Ask prospective agents to appraise your home and explain their pricing strategies. Do your own research. Check out other houses nearby. Remember that purchases are emotional decisions, but your home has to represent good value, otherwise a potential buyer’s head will overrule their heart.
If you would like some more advice and guidance on marketing, pricing and preparing your home for sale, contact us for a free consultation.
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