If you are looking for an investment property, now is a great time to enter the market. Property prices and interest rates are at its lowest. Meanwhile, the rental returns are proving to be very attractive for landlords.
However, just like any investment, buying an investment property also has risks. One of the most common mistakes of first-time investors is falling in love with the property they are buying.
Although, essentially there is nothing wrong in loving the property you’re buying. The error only arises, if you will only consider the physical attributes of the property over the possible financial returns.
To add, some buyers are so driven to buy an investment property for the sake of having one that they can easily be persuaded to buy any property that will fit their budget. Meanwhile, others tend to pick a property that has several lifestyle amenities only to be surprised later on that a big chunk of the rental income is going towards paying strata fees.
Thus, it pays to be a well-informed investor than being emotional when buying an investment property. Buying a property is a long-term commitment. It’s not something that you can return or sell right away without incurring any losses.
To know more about property investment, check out www.rkrealtygroup.com.au for free real estate tips, articles and even seminars that can make you a savvy property investor.
The property sector is enjoying a mini-boom after years of stagnant sales due to the boost in first homebuyers grant. First home owners are snapping properties in a bid to take advantage of the boost in grant.
Properties within the $500,000 mark and below are the most sellable. This is due to many buyers are also taking advantage of the stamp duty concession.
Furthermore, according to property experts the Australian housing market is performing better than the initial gloomy forecasts.
Here are some excerpts from several articles published in news.com.au which quotes some property experts:
“Data released yesterday by two of the largest property research groups confirmed residential markets were stable nationally.
Australian Property Monitors and RP Data were at odds as to whether house prices were up or down in Sydney and Brisbane, but they agreed the market had shown remarkable resilience.
"Housing and unit figures show a surprisingly resilient residential property market amidst the global and domestic economic turmoil,'' APM economist Matthew Bell said.
RP Data research director Tim Lawless concurred, saying: "Australia's residential property market has proven to be consistently resilient.''”
“Australian Property Monitors head of research Yvonne Chan said first home buyers were holding up the property market.
"Clearance rates have been consistently at a high level for the last few months and it's been driven by first home buyers," she said.”
If you’re thinking of selling your property, now can be a good time to market it. If the price is right, it won’t be hard to find a buyer.
Overall, the boost in first home buyers grant helped stimulate the selling and buying of properties.
If you need any help in purchasing or selling real estate, please contact RK Realty Group. We have a team of professionals who can guide you in the step-by-step process of the real estate transaction.
The sub-prime crisis in the US was a wake-up call for many financial institutions to tighten their lending standards. Even with the increase in first home owners grant, many lenders are becoming stricter in approving loans to qualified buyers.
In a way, these could be a win-win situation for both the lender and the potential buyer. High-risk buyers are forced to save more for their deposit or delay entering the property market until they are more financially stable.
These could help prevent the increase in bank foreclosures and mortgage stress for the potential buyer.
A high-risk buyer usually has minimal or no money set aside for a home loan deposit. Lenders are also looking into unemployment risks of a potential borrower. The more stable your job is the higher the chances are to qualify for a loan. Your savings pattern can also help you avoid being classified in the high-risk segment of the market. If you can prove to the lender that you can set aside a certain amount of money each month to pay for your mortgage then it will be easier for them to decide on your loan application.
If you need more information about the loan process, contact RK Realty Group. They have a team of business affiliates who can guide you in your loan application.
The government’s initiative to double the first home owners grant and even triple it for new home dwelling can be considered a success, due to the increase in real estate sales since it took effect. Thus, the real estate sector is lobbying for an extension beyond the June 30 deadline.
However, a lot of economists are predicting that in the long run it can be more of a risk factor than a boost in the nation’s economy.
According to some experts, the first home buyer’s grant artificially increased the house prices by the value of the grant. Some high-risk borrowers with no savings history are buying houses in a bid to take advantage of the grant. These together with the increase in unemployment can make the first-home buyers a high-risk market.
It is hard to tell for the meantime if there will be long-term benefits. At present, the first home owner’s grant was a welcome help not only to the first home buyers but also to real estate developers and individual sellers alike.
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One of the most important considerations in buying a
property is location. The criteria of a
good location can depend on your needs and current priorities.
For instance, if you have a family, some of the things
that you would look for in a location are the availability of schools and
parks. If you are considering retiring
soon, you want to purchase a property that would compliment your retirement
lifestyle such as walking tracks, a pool or proximity to medical
facilities. If you’re single and very
career driven, you might want to locate close to your place of work and be near
cafes.
Overall, the common factors are to make sure that
wherever you buy, it will fit your needs and compliment your lifestyle. Even if you’re unable to sell soon due to the
property slump, at least you can enjoy your home and live a life of
comfort.
Moreover, in considering your needs you are also
future proofing your investment. Chances
are if you bought a property in a good location, the next buyer will also
consider all the good points that made you buy that property in the first
place.
In the end, make sure you consider your needs over the
physical attributes of the property you are buying. If you’re living a life of comfort in your
present home, then it’s not so bad waiting for the next property boom.
In line with looking for new opportunities to create wealth this 2009, it is good to check the resources made available to you now. It could be through job growth, personal development or taking advantage of the government’s grants or stimulus package.
I’ve always liked the idea that from small things...big things can grow, similar to how a fruit bearing tree only started as a seed. Thus, no matter how small your resources are, think of ways to make it grow.
One of those resources that you should take advantage right now is the wealth of opportunities in real estate that RK Realty Group has on offer for you. Even if you’re not yet ready to buy, contact us now to explore the different avenues where we can help you. Take advantage of the free articles in our websites and newsletters. Better yet, why not join the RK Social Club to join a group of like-minded individuals who are all interested in wealth creation through real estate investment.
I look forward to hear from you and see how we can forge a partnership into wealth creation.
According to some property surveys, one of the most important rooms in the house is the kitchen or dining area. Actually, as Australians we don’t need any surveys to confirm this. In any gathering or party at home, people usually flock at the kitchen area. As families, we spend countless times eating and enjoying a conversation or two in the dining area.
Thus, a lot of property buyers often take a careful look at the kitchen area. Sometimes, it can even make or break a deal.
A lot of property developers have considered our lover affair with the kitchen in incorporating the latest design trends and appliances in their property developments.
You’ll be surprised how apartment developers were able to come up with a kitchen design that will fit the layout of the unit without compromising the ability of the residents to entertain in style. The functionality of the design makes it convenient for the residents to enjoy cooking, dining and entertaining at the same time.
To visualize more about these great apartment kitchens, visit our property inventories at www.rkrealtygroup.com.au . You’ll be amazed that apartment living can be as convenient and as functional as living in a house.
Some people are hesitant to move in an apartment because they can’t simply give up gardening or at least the thought of being surrounded by green space.
However, new apartment developments have simply changed the concept that living in an apartment means giving up your garden. Some apartment developments have actually incorporated garden units to provide a choice for garden lovers. They can still maintain a small courtyard garden where they can choose to entertain outdoors or have a private refuge amidst all the hustle and bustle of city life.
Meanwhile, although garden units are usually limited in numbers, many apartment units have huge balconies. There are so many DIY garden accessories that are designed to transform your dull balcony into a garden oasis. The many choices available can range from vertical garden structures, green patch for balconies and even DIY decking for balconies.
Moreover, there are some notable apartment developments that have large open spaces, gardens and simply superb landscaping. There is no need for you to maintain a garden yourself because it is an added amenity available to all residents within the complex.
If you’re looking for such apartments with large balconies, garden units, superb landscaping and pocket gardens within the complex, checkout www.rkrealtygroup.com.au . We have a wide variety of apartments available that will simply captivate you, that you may actually consider living in one.
There had been a long-running debate whether real estate is a better investment over shares. In today’s global financial crisis, we’ve witnessed how the shares plunged to levels causing companies, businesses and most especially individuals fall into bankruptcy.
A lot of people lost their money, savings and retirement allocation when the value of their shares fell. Moreover, those who invested under a margin loan arrangement were forced to sell their shares and sometimes other assets, such as properties to immediately meet their loan obligations.
These can easily magnify the losses without any means to recover the loss. Meanwhile, property values can also decline or remain stagnant, but at least you have a physical asset you can use as your primary residence or as a rental property. The loss will only be realized as an actual loss when you sell the property. However, if you can afford to maintain the mortgage payments, the current decline in prices is only a paper loss.
In the long run, property values will still increase making it a viable long-term investment. There will always be a long-term demand for properties for as long as the population continues to increase.
In the last three months, property investors were finally relieved of rising interest rates. For the past seven years since May 2002, we’ve witnessed how the interest rate increased every year and sometimes by the month. Since 2002, the total interest rate rose to 3% and that was just from the cash rate of the Reserve Bank. Banks and other financial institutions also increased their interest rates independent of the increases imposed by the Reserve Bank. This is to cover their higher borrowing costs due to the global financial crisis.
However, for the past three months we’ve seen the interest rate decrease to a total of two percent with the big four banks passing in most of the reductions to its clients. This is a significant move by the Reserve Bank to steer the economy from recession.
Property investors are finally raking in some benefits from owning an investment property. The rental income stays the same or goes up due to a high demand, but the holding costs are dramatically reduced. According to Robin Turner, President of the Real Estate Institute of South Australia, with each 1% fall in interest, the holding costs drop around 10%. This means more cash flow for property investors!
There are further speculations that interest rates will fall in the next few months. Thus, if you’re planning to buy an investment property, now is the time to take advantage of the rate cuts.
Now is the best time to re-assess how much you can afford to buy. The recent fall in interest rates can translate in a huge increase in your borrowing capacity. For the past two months, we’ve witnessed how the Reserve Bank cut the interest rate by 1.25 basis points. According to some economists, we can expect to see more rate cuts in the next few months. You can read more about it in this article “Experts predict interest rate will fall sharply”.
So what is the significance of a lower interest rate for prospective home buyers?
· Lower repayments.
· An increase your borrowing capacity.
· More confidence in entering the property market because you know you can afford to buy.
· A lower interest rate + increase in first-home buyers grant + stamp duty concession means more money in your pocket for the other essentials.
Thus, if you’ve been holding off from buying any real estate for the past few months or even years, now is a good time to enter the property market. Set an appointment with the bank or a mortgage broker to assess how much you can afford to buy. You’ll never know... you might be closer to buying your dream home now than a few months back.
I just realized now that the piggy bank is an essential tool for buying your first home. Well, not directly. Having a piggy bank, helps you practice saving for something you want to buy in the future. When we were younger it could be buying that favorite toy. During our teen years it could be our favorite gadget. As we grow older, our needs become more expensive. However, if we have the discipline to save for something we want, then we know it is not impossible to buy that elusive first-home.
Here are the Top 5 things you should consider before buying your first home.
1) Work Out a Budget - Knowing how much you spend and what you can actually save can help you figure out your comfortable mortgage repayments. It is a better assessment than how much the lenders will actually allow you to borrow.
2) Save.Save.Save. - The more deposit you have, the lesser interest you will pay for the term of your loan. To add, you will be more confident with your loan if you can practice saving your projected monthly repayment s.
3) Minimize using your credit cards. Use it only for necessary purchases. Pay off credit card debt when on or before the due date to avoid interest charges.
4) Plan ahead for contingencies. Mortgage repayment and your normal utility bills are not the only expenses you will incur when you buy your first home. You should take into consideration interest hikes, repairs and other maintenance issues. Having a contingency fund is not an option but a necessity.
5) Do your research. Don’t buy the first home that you fell in love with. Check out the sold prices in the area. Organize a pest and building inspection. Visit the general area several times to make sure it meets your needs and criteria.
Hope you find these tips useful. Remember, your first home doesn’t always have to be your dream home. What matters is you can buy something you can comfortably afford in a good location. If you buy the right property, it could be a good stepping stone for you to buy the home you really wanted.
Village Quay is an exciting new residential development located in Rhodes, a suburb located along the Parramatta River.
Rhodes is famous for its cosmopolitan flavour shops, waterside walkways, cafes and restaurants. It is also just a few minutes away from the magnificent sporting and recreational facilities of the Sydney Olympic Park. Living in Village Quay is pretty much like living in a resort-style community.
However, the best part about it is its accessibility, not only to various recreational facilities but to your place of work too. It is only 20 minutes to the Sydney CBD by rail. It also has easy access to Parramatta CBD and the rest of Sydney through the M2, M4, M5 and Victoria Road. The nearest train station is just two minutes away. You can leave your car, skip traffic and be at work in no time. At the end of the day, you can come home feeling relaxed in the comfort of your own apartment or have a stroll outside your waterside community.
Village Quay is also an ideal investment. It has a generous tax depreciation benefit and high rental returns. Moreover, you can be assured of the quality of the project since it is Billbergia’s newest development. Billbergia is the largest developer of waterside properties in Sydney. It has 19 years of experience in the development of large scale residential and commercial developments. The company is involved in the entire development process, site acquisition and marketing. Thus, you can be assured of its meticulous attention to detail. Moreover, Billbergia’s strong financial capability means quality will never ne compromised.
There is so much more to admire about Village Quay. However, it is best to see for yourself the location, the facilities you can expect and have a feel of the quality inclusions in your future apartment.
To arrange an appointment to visit Village Quay’s display office and for more information, please give RK Realty Group a call 1300 738 074.
When we think of fresh, we relate it with something clean, unpolluted, bright, creative and refreshing. You can convert your apartment in all of these for under $300 using potted plants. You’ll be amazed how indoor plants can give a boost of life to your apartment.
It helps purify the air and absorb the noise. Moreover, according to scientific studies having indoor plants can also improve your physical, emotional and psychological well-being. It can help you relax and promote a positive outlook in life.
Here are the Top 10 Indoor plants you can use for your apartment. They are the best performers in terms of purifying the air according to NASA studies and NIGZ (Netherlands Institute for Health Promotion and Disease Prevention) lists.
1) Areca Palm
2) Lady Palm
3) Zamioculcas Zamifolia
4) Philodendron
5) Miniature Date Palm
6) Peace Lily
7) Dracaena Fragrans “Janet Craig”
8) Boston Fern
9) Ficus Alii
10) Rubber Plant
Source: House of Plants, UK 
According to a report in news.com.au, Sydney has the most expensive houses in the world as supported by a research conducted by the Institute of Public Affairs (IPA). The average Sydney home cost eight times more than the average income.
Sydney was pushed to the top spot partly due to the fall of US house prices. But, according to Dr. Alan Moran; IPA director of the deregulation, the misguided government policies were the main cause of Australia’s unaffordable housing market. Notably, even Melbourne, Perth, Brisbane and Adelaide are also in the top 10 most unaffordable cities in the world.
According to Dr. Moran, the following are some of the government policies that inflated house prices:
1) Laws that restrict the availability of land
2) Lengthy bureaucratic procedures
3) Environmental requirements that increased the cost of building new homes
4) High taxes masquerading as development levies
In my opinion, it is ok to be labeled expensive for the right reasons such as the exclusivity of an area, great amenities or due to certain geographical features unique to the location. However, the report should emphasize Sydney more as “having the most unaffordable houses in the world” because the prices does not justify the product nor the capability of most Sydneysiders to afford it.
These can be the general sentiment of the report; however it is also wrong to say that all the property prices in Sydney are simply unaffordable. There are still some terrific property developments that can be classified as affordable, without sacrificing the inclusions and other positive features of the property.
If you want to know more about these developments give RK Realty Group a call on 1300 738 074. They have forged partnerships with some of the best property developers in Sydney, who can deliver quality apartments at affordable prices.