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Real Estate Private Sale
Whether your proposed investment property is an apartment, family home,
unimproved land, or a commercial premises, you should have in place a real
estate strategy. This strategy may well mean that a Sydney based property
investor should look as far afield as Brisbane or Perth to take advantage of a
real estate boom in these areas of Australia.
The Family Home
Family homes are considered to be an appreciating asset and as such will provide
a hedge against inflation. The purchase of property in the most desirable
location may not always be within budget allocation, therefore research is
needed to determine the areas of future desirability. The quest for a better
lifestyle is changing property values in both city and rural areas of Australia.
In Queensland, Brisbane's sleepy Bayside area is attracting it's share of
interest however the more affordable properties for first home buyers were
located in Logan and Ipswich.
Now, the area perceived as being both comparatively affordable and as having
good access to the water is Lota where it is still possible to buy property for
$150,000.
In Perth, Mandurah and the south coast towns continue to draw investors. While
house prices in the Western Australian capital will barely keep pace with
inflation in Sydney, Melbourne, Canberra and Adelaide over the next two years,
BIS Shrapnel’s three-year property outlook report predicts Perth will record
double-digit growth through to 2007.
Whilst family home affordability in Canberra is continuing to decline, demand
for small rural residential acreages within 30 minutes of the CBD has increased.
Braidwood, situated between Canberra and Batemans Bay, is attracting
considerable interest from home buyers.
In Victoria, a number of regional towns within commuting distance from Melbourne
are offering increased employment opportunities and a refreshing lifestyle. High
Melbourne property prices have contributed to home buyers looking further afield
to towns such as Ballarat, Bendigo and Geelong. Closer to Melbourne, towns such
as Castlemaine, Kyneton and Daylesford are becoming popular with both home
buyers and investors alike.
Due to large increases in property values in Adelaide, home buyers are heading
for the hills. Once again the attraction of a rural lifestyle within commuting
distance of Adelaide has drawn home buyers attention. The new Adelaide Hills
expressway has cut travelling time to the city to just 30 minutes. According to
a survey by the Real Estate Institute of South Australia, a vacancy rate of just
2.3 per cent, also has investors looking favourably at the Adelaide Hills.
Appreciated values create an equity bonanza for the property owner. When a
property does appreciate significantly, home owners are able to borrow against
the equity they have in that property. Real Estate does not always increase
sharply in value but the home buyer's the long term outlook is always good
provided he has done his homework and bought property in a growing area.
Real Estate
Private Sale
Real estate selling has changed and our system coupled with the internet now
gives owners the genuine ability to sell their own home without commission.
Whether you're house buying or house selling you'll find all the real estate
tools and resources you could possibly need at the link above
Your No Commission sale includes - Listing on Domain.com.au, Myhome,com.au,
Justlisted.com.au ( conditional ), PropertyNow.com.au and four other real estate
sites in our network. We find the buyers. You open the door. No commission and
no traps or hidden fees. Just one small monthly investment.
Got questions? Get answers for the cost of a local call 1300
364 068
Investment Property
An investment property can produce cash flow today and well into the future. The
“passive income” derived from your investment property allows you to deduct your
maintenance, operating expenses, taxes, and insurance, along with any overall
losses which are called “passive losses” and use these loses to offset some of
your other ordinary income. The tax benefits associated with owning investment
real estate properties can be substantial.
As with the purchase of a family home, the location of your investment property
is critical to the income you can expect to generate from the rent.
Emotional involvement with the appearance of a house or apartment is a common
mistake made when buying investment property. Remember you don't have to live
there but someone else will. Do your research and look at the potential of the
investment. Is it in a desirable location?
1. Location (Good, OK, Poor)
Location is the obvious factor. Is it a leafy street? Are the surrounding
properties well maintained? What is the socio-economic profile? Is it quiet, or
on a main road? Is it convenient to shops and restaurants?
What is the trend of the median property price in the area? What is the zoning?
What are the vacancy rates in the area? What is the land value?
You should all know how to reply to the Real Estate Agent who says “It's close
to Transport”. You say, “Yes I know, I can hear it”. However, being a
comfortable walk away from a railway station or bus stop will make it easier to
rent your investment property.
2. Condition (Good, Medium, Poor)
Is the property fundamentally sound? You don't want to buy a property with a
structural problem unless you have the skills to fix it cheaply. Make your
offers subject to a satisfactory building and pest inspection.
3. Potential to add value (High, Medium, Low)
Increasing the value of your investment property creates equity that can assist
with future purchases. So what do you look for?
Does the property need a cosmetic makeover? This is an excellent way to add
value quickly. Is it the worst house in the best street? Can you find a way to
add an additional bedroom? It adds value straight away plus it kicks up the
rent.
What is the zoning? Is it a future development site? You need to do your due
diligence to minimise risk.
And do you really want to drive an hour to change the locks, make sure the
cleaning folks did a good job, check to see if the yard's actually getting done,
etc.? When you're in a strong buyer's market, this routine can become the norm.
So, don't forget to factor in "proximity" to your normal stomping grounds when
evaluating location.
One of the most common things people fear about getting into real estate is
they're afraid they can't sell the house and somehow they'll get stuck with it.
I can understand why this would create anxiety for a beginner because they
simply don't have enough facts to overcome the fear. However, if you're not a
beginner and this is still a problem, there's no excuse for it. So let's get it
fixed right now.
The truth is . . . selling should be the easiest part of your business
Are you not buying because you're waiting to sell what you have first? Is your
income suffering because you haven't plugged the hole in the back end? Are you
so afraid of selling you quit (or never started) buying?
In this article, I'll discuss the reasons why some people have trouble selling
and how to fix them. In addition, you should know we now have a live, two-day
boot camp I teach focused on the same thing...Selling Houses Fast.
I've identified 14 reasons here. Pay close attention to numbers 4-7 because
combined they equal about 80% of why houses don't get sold quickly.
Most of the time it's a people problem, not a house problem. So here we go, in
no particular order.
Why houses don't sell quickly...
- Not ready to sell.
- Poor area.
- Over-priced.
- Salesperson's personality problems.
- Inflexibility of seller.
- Salesperson's lack of knowledge about financing programs available.
- Salesperson's lack of knowledge about attracting & pre-screening leads.
- No follow-up system in place.
- Functional obsolescence.
- House very small.
- Salesperson loses control of the loan process.
- House located too far away from the city.
- House is in high price range where few buyers can afford.
- Only one bath.
Notice the majority of these problems are directly related to the person in
charge of making the sale...and the rest should be fixed before you buy.
- Not ready to sell.
- Front appearance - Would you want to see the inside?
- Roof - Does it need to be replaced?
- Exterior paint - Is it at least 2 colors and looks fresh? Are the colors
pleasing or gaudy?
- Interior paint - Is it two colors or does it look like a white tornado went
through it?
- Interior trim - Is there color, paper borders, blinds, bath and kitchen
accessories, lever door handles, shower curtain or door, etc.?
- Carpet - Same old lifeless, ugly brown or have you tried hunter green? Would
you want this carpet installed in your home?
- Central heat and air - If you're in the southern two-thirds of the country,
it's not an option. Do it.
- Kitchen - Does it have plenty of cabinets or just enough to get by?
Customers won't complain about shoddy repairs. They just won't buy.
If it doesn't look good enough to satisfy your wife, your buyers won't like it
either. Spend a few more dollars and make it a house you can be proud to sell
and know your buyer will rave to others about.
If you do, amazing things will happen.
- It will sell quickly.
- It will appraise for more.
- You'll sleep good at night.
- Your buyers will send you customers.
- Your good reputation will spread quickly.
- The neighbours will send you customers or sell their houses to you.
- Your attitude will improve and you'll enjoy dealing with buyers more because
you know you have a great product.
- You'll save the extra money you spent in holding costs. So, in reality all
these benefits are free.
- It'll probably even improve your sex life. Think about it. More sales means
more money. More money means happier spouse or significant other. Happier spouse
means more frequent and better sex. I heard that on Oprah the other day.
- Poor area.
Positive Outcomes:
A. You can make some large spreads on these houses because you can buy them dirt
cheap.
B. Most of your competition won't touch them.
C. They're easy to find and easy to buy.
D. At today's interest rates buyers can qualify with small incomes.
E. Financing is plentiful. Some with no down payment.
F. You can always wholesale if rehabbing isn't feasible for you.
Negative Outcomes:
A. Vandalism is normal.
B. You'll have to screen out a lot of buyers.
C. You'll be tempted to break the law by falsifying down payments because most
of your buyers are broke. Don't do it.
D. You'll have to take back a lot of seconds and 50% or more will default. So
what? It's all free money anyway.
If you're going to work the low income or war zone areas, just be sure your exit
is clear and you don't get into any traps. Don't rehab in a war zone unless you
know where to get the buyer financed. You'll find a buyer who wants to live
there and you can live with vandalism.
In addition, you must be flexible on terms, not expect to get cashed out 100%
and clearly understand you will be prescreening one of the most uneducated
segments of our society. It will take patience and practice.
Overpriced Is Not What You Think
You should always set your sales price higher than what the house appraised for.
If you don't ask for more I can assure you, you won't get it.
But there is a limit. Putting a $525,000 price on a $450,000 house is pushing
the envelope. However, putting a $469,900, or maybe even a $489,900 price on it
may work fine.
Your market will tell you quickly. If the buyers all complain about the price,
you know you have a problem and you may want to lower it a little.
Warning!
Make sure the price is the problem before you go fixing what isn't broke. Only
your buyers can tell you the price is too high. Not your spouse, your neighbour,
your brother-in-law or even your Realtor. If I had $100 for every time a Realtor
told me my price was too high, I'd be in a higher tax bracket. Actually, that's
not true. They don't get any higher.
You can always lower the price. You can't raise it once it leaves your lips. I
don't know for sure but I bet I haven't lowered the price on more than 15% of
all the houses I've done to get them sold. As a rule, a 10% above appraised
value or good comps is the upper limit. You'll have to decide the price based on
the area, condition, salability and heat of the market. Just don't be giving
away money because you're listening to morons.
Salesperson's Personality Problems
Have you ever talked to a seller or a Realtor you didn't like? A mean-spirited,
grouchy, personality perhaps? How about someone who just won't shut up long
enough for you to ask a question? Maybe you've encountered the pre-screened type
who treats you like the enemy until you pass their qualification test.
How about all those times you got the wife on the phone and she was afraid to
speak without her husband's permission, or vice versa. That doesn't even count
the ones who do talk but never say anything. Then there's the clueless spouse
who can't even tell you the asking price, much less the other details. Sometimes
I wonder if these folks ever talk.
How about the couple in the middle of a divorce who talk to you like you're the
one who just slept with their spouse? Then there's the know-it-all. You know,
the kind who wants to do a seminar for you on the phone to impress you with
their intelligence in the art of real estate. They can't sell their own house
but they can certainly tell you how to do it.
Of course we can't forget all the thinker brains trying to sell to the reptile
brains, and vice-versa. Or the sellers so in love with their house it takes them
30 minutes to describe every little detail while you're trying to stay awake.
Gosh, I'm getting depressed just writing this. I don't want to ever talk to a
seller again. Just kidding.
The key for you is not to become like one of those people I just described. If
you already are, you can fix it once it's identified. Here's a hot tip. Record
your calls and listen to yourself selling your house. If there was a moron on
the call you'll probably recognize his/her voice.
Every Single Time You Talk to a Buyer You Must Sound...
Friendly, Flexible and Excited
If you can't, get someone else to sell your houses, which is a whole other
subject I'll cover next month.
Inflexibility of seller
That means most sellers can only see one way to sell a house and if that isn't
happening the house will sit and sit until that perfect buyer comes along.
Finding an A credit buyer to cash you out isn't the only answer. This is
especially true for the low-income houses where A+ buyers are scarce.
The more you know about different exits, the easier it will become for you to
get flexible. If you don't have your money in the deal and you can live another
week without the cash from the sale, it frees you up to get creative and look at
other alternatives.
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