Tip # 1 - To Help You Get That Rental

Auctions!

Auctions! For some people it’s a scary idea, for others it’s a huge thrill! There are several different ways to buy and sell a property including “Private Treaty”, the “Off-Market Sale” and “Expressions of Interest”, but Auctions seem to be going extremely well in SA at the moment. Current clearance rates (which means properties sold at Auction and not passed in) for February are showing numbers around 80% to 90%. So, should you consider an auction?

Here are a few facts to keep in mind:

• The campaign usually runs for 3 to 4 weeks from the first open to the actual auction day.
• The process is completely transparent on auction day meaning you know exactly how many people are interested, who is bidding and how much they are offering.
• Offers can be made before the auction. How they are received can depend on the Agent and the Vendor. If the Agent and/or Vendor is confident that the property will sell at auction, they may refuse to look at offers prior.
• Buyers need to know exactly what their borrowing amount is before bidding as it’s a “cash unconditional contract”. The contract cannot be “subject to finance” or “subject to sale” or “subject to building and pest inspections”.
• Buyers need to complete things like building and pest inspections prior to auction day as there is no “cooling off” period and as stated above, no “subject to”
• 10% deposit is required at the fall of the hammer unless negotiated prior to the auction with the Agent.
• You can employ a Real Estate Agent to bid on your behalf which may help with stopping you from bidding with your emotions.

As with anything, there are good and bad points to every method of sale – it is best to do your research and pick the method that works best for you. Always keep in mind that the “best result” is a quick sale for the best possible price and knowing if it is currently a “sellers’ market” or a “buyers’ market” and how quickly properties are selling, should be a deciding factor on which method of sale you use.

If you would like more information on any sale methods, please call one of our helpful team members for a confidential chat!

(08) 8251 3249

info@spartners.com.au

WHAT DO THEY DO? CONVEYANCERS

 Welcome to the first in our series of “What Do They Do?” where we explain why you need the team of professionals who will assist you with buying and selling property.

Once you sign a Contract of Sale, your real estate agent will ask for your conveyancer. A conveyancer is a licensed and qualified professional who can:

• provide information and advice about the sale or purchase of property
• prepare legal documentation for property transactions
• represent either the vendor or the buyer during the settlement process.

Conveyancers are not legal practitioners, but conveyancing work can be undertaken by solicitors. It is strongly recommended that you engage professionals due to the complex legal nature of the work involved. Conveyancers will:

• prepare and clarify legal documents, such as, contract of sale, memorandum of transfer
• conduct research about the property and its certificate of title - eg checking for easements, type of title
• represent you in preparing for and during settlement
• place and hold deposit money in a trust account
• calculate the adjustment of rates and taxes when buying or selling a property
• liaise with the vendor or buyer's conveyancer over settlement arrangements
• contact you to advise when settlement or subdivision is complete
• contact your financial institution, if applicable, regarding how and when the final payments are to be made and received
• lodge all necessary documents with the relevant agencies

Your conveyancer should look over all your legal documentation during the “cooling off” period (which in South Australia is two full clear business days after the Form 1 documentation has been issued) and advise you of any concerns.

Besides buying and selling a home, a conveyancer can also assist with land subdivision and also updating name details on the certificate of title of a property you already own eg. after a divorce, death or a marriage.

It is so important to find a good conveyancer. Ask friends and family for recommendations, or even ask us! We work alongside conveyancers every day and will happily refer a list of reputable businesses in our area. If you need any assistance with choosing a conveyancer, please do not hesitate to contact us.

(08) 8251 3249

info@spartners.com.au

What to Look for When Buying an Investment Property

 A good investment property is one that leases quickly and for a good rental return. To ensure that your property is leased quickly, it needs to match what tenants are looking for. Some of these things include:

 · Heating and cooling options - things like ceiling fans, gas wall heaters, split systems, ducted reverse cycle air-conditioning. Ideally you should look for at least ducted cooling in your potential investment property.

· Storage - particularly built-in robes are a key point that tenants are looking for. If they are coming from a property with built in robes to one without, then buying wardrobes is a major expense that most don’t want to consider. Also a good-sized linen cupboard is highly desirable.

· Four bedrooms - depending of course on the area that you’re looking to buy your investment in, but in family oriented areas, four bedroom homes are in huge demand and achieve a much higher rental return. If it is in your budget, then we highly recommend looking at this option. Of course, closer to the city, your demographic is generally young singles so the four bedroom option is not so crucial.

· Safe, quiet neighbourhood - when you’re looking to buy your next investment, take a good look at the neighbouring houses - maybe do a drive-by at night time and/or on the weekends and see how much activity there is. If you want a high quality, long-term tenant, then a nice neighbourhood is crucial. You will still get tenants at the property, but they will all be short-term as they don’t want to stay too long.

What else should I consider?

It is extremely rare to find an investment property where the rental income covers the mortgage repayments 100% and even then, there will always be other expenses like maintenance and repairs. From our experience, the way to profit from an investment property is to hold onto it long-term to make profit from the eventual sale of the property. But the property needs to be well-maintained during its lifetime too - meaning you can’t allow the property to become run down.

Becoming an investor is a long-term strategy, not a “get rich quick” scheme. Always speak to your financial advisor to check your unique circumstances.

 “Smith Partners Real Estate is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances.”

For further advice contact our friendly property management team:

Tim Hines 

Property Manager

M: 0412 754 117

Emma Irving 

Accounts & Leasing Manager

M: 0488 226 624

Email: rentals@spartners.com.au

Web: smithpartnersrealestate.com.au

SPRING HOME MAINTENANCE CHECKLIST

Home cleaning and springtime go hand in hand! This is the season when countless homeowners turn their houses upside down to get rid of junk and deep clean the interiors and exteriors of their home. However, during this cleaning haul, the home maintenance aspect is completely overlooked. Hence, spring cleaning should always be combined with spring home maintenance! Here are some things to consider maintaining in preparation for the warmer months:

•  Touch up chipped paint

Whether it’s your walls or furniture, as you start cleaning up and moving things around, you’ll notice a few chips in some paint jobs. As small and unnoticeable as they may be, this will only lead to more peeling and eventually leave you with a tougher job of covering it up.

• Clean and service your air conditioner

Over the winter season, your AC will have collected dust which can clog your filters and vents. Worst of all, this dust and debris become airborne when you switch the unit on, causing allergies and the likes. Therefore, you should clean and service all your air conditioners when spring begins or have a professional do it for you.

•  Clean your dishwasher

This task is often overlooked when spring cleaning the rest of your home, yet it is very much necessary for proper functioning of the appliance. Moreover, a dirty dishwasher is unsanitary to say the least! Deep cleaning of your dishwasher can be done in 4, easy steps: 1) remove chunks or debris from around the drain; 2) place a bowl of 1 cup of white distilled vinegar inside and run an entire cycle; 3) remove the cup, sprinkle half a cup of baking soda at the bottom and run a short, hot cycle; 4) when the interiors cool down, wipe the inside with a clean, damp cloth.

• Maintain your yard/garden

Spring is a time where you can find both, dried up leaves and unwanted weeds growing in your garden. Use this time to maintain your yard by trimming hedges and bushes, mowing the lawn and fertilising your plants.

• Clean and check fly screens

Spring is the perfect time to let plenty of fresh air into your home. Make sure your screens are clean to limit the dirt and dust coming inside. Also make sure that there is no damage to the screens which will allow the dreaded flies and mozzies in!

Home Loan Pre-Approval

 When you decide that you would like to buy a property, it’s difficult to know where to start. While looking at property online can be exciting and daydreaming about what you can afford can be a bit of fun, it’s only a daydream until you take the first step of getting a pre-approval for the home loan.

Pre-approval is when a mortgage broker or your bank give you conditional approval on how much you could possibly borrow for a home loan. To assess this, you don’t need to have a property in mind, you will only need to answer some basic questions on your current income and expenses.

Make sure that you have your numbers as accurate as possible as you will need to prove it later down the track to get your home loan formally approved. Don’t try to hide anything because the truth will come out and cause issues if you want to go ahead with the home loan.

Once you have provided the relevant information, your home loan pre-approval provides a clear amount that you can afford to spend on your future property. This information means you know what price range to start looking at online and not get your heart set on a property that is beyond your budget.

Having a pre-approval also gives a real estate agent and the vendor of any property you’re interested in more confidence that the sale will go through. Without a pre-approval, your offer is viewed as a riskier option than one with it.

Keep in mind with your pre-approval that any changes with your financial circumstances will affect the chances of a formal approval once you find a property you wish to purchase. Major life-changing events like job changes, reduction in hours or going out and starting your own business will all mean getting a home loan will be more difficult and your pre-approval is no longer valid.

Once you find a property to buy and put your offer in, you will have to go through the process of getting your home loan formally approved which will include providing documentation to support your claims of income and expenses.

Getting a pre-approval shouldn’t cost anything and from our experience, we advise going to a highly recommended mortgage broker rather than just going to the bank you’ve always banked with. Unfortunately, the days of banks rewarding their customers for their loyalty are long gone. To get the best deal and to find the lender that will accommodate your particular financial situation, a mortgage broker is the way to go.

Having said that, you need a good mortgage broker to get the deal done. We have seen clients using a mortgage broker who have had finance declined but then when they use a mortgage broker we recommend; the same clients have their finance approved. If you would like to speak to one of our recommended mortgage brokers, please do not hesitate to contact us.

P: (08) 8251 3249

E: info@spartners.com.au

AIR CONDITIONER SERVICING

A question frequently asked by our landlords and clients – “Do I need to get my evaporative air conditioner shut down for Winter?”

There are a few factors that determine if you require an Evaporation Winter shut down.  If your unit is an older system, it will not have a self-cleaning function. This means that water will sit in the sump over the Winter period and as a result, this water will go stagnant and mould and bacteria that thrive in such conditions, could threaten the health and well-being of you and your family.  In addition, exposure to wintry weather could cause the unit’s small hoses attached to the pads to freeze over and burst/split. Replacing these parts can be costly, but most importantly avoided!! Therefore, a crucial step when shutting down your unit for Winter is turning the water off and draining the sump.

If your unit is a newer air conditioning system, it will have a self-cleaning function. This means it will have a valve that drains the water out of the unit once turned off to prevent water sitting in the sump. However, this function does not clean the unit and regular manual cleaning is still required; to ensure that built-up dirt does not damage your system.

If you have an investment property, then a small outlay just before winter and summer each year can save you big dollars down the track on costly repairs or replacement.

For your own home - winter in Adelaide is extremely cold! If your unit doesn’t have a cover or a Winter flap in the dropper, all that freezing air from inside will go straight into your house causing your heating system to work harder.

At Smith Partners Real Estate, we can recommend trusted trades to provide a comprehensive evaporative winter shut down, though following these critical steps:

• turning the water off to the unit
• cleaning out the unit
• flushing the unit out
• checking all parts for defects
• isolating the power to the unit
• fitting the Winter cover (if applicable) or check the Winter Flap is secure in place (if applicable)

We recommend to all our Landlords that a winter shut down should be performed each year to save them on expensive repair costs later down the track. To find out more on how we care for your investment, call Smith Partners Real Estate on (08) 8251 3249 to have a chat with one of our friendly staff.

SMOKE ALARM LEGISLATION

We regularly hear the reminders to change the batteries in our smoke alarms, but how many of us really know the laws around it? As a home owner (or multiple home owner if you’re an investor), you need to be aware that legislation is in place to make domestic smoke alarms compulsory for all residential buildings.

Smoke Alarm Types

The type of smoke alarm you require depends on when you purchased your home or the age of your home;

• For homes or residential rental properties that are purchased before 1 February 1998 you are required to fit a replaceable battery powered smoke alarm.

• For homes or residential rental properties purchased on or after 1 February 1998, regulation 76B requires a smoke alarm (or smoke alarms) to be fitted within six months from the day on which the title is transferred and be either a 240 volt, mains-powered smoke alarm or a 10-year life, non-replaceable, non-removable, permanently connected battery powered smoke alarm.

• For homes or residential rental properties built on or after 1 January 1995 the Building Code of Australia requires a 240 volt, mains powered smoke alarm.

• Smoke alarm maintenance is governed by both State and Federal legislation and any person who does not comply with the relevant legislation is guilty of an offence.

• Landlords who fail to take every practical step to ensure the safety of their tenants can face a multitude of unpleasant and unwanted consequences that, with the right guidance, can be easily avoided.

South Australian State Legislation

The Development Act 1993 requires smoke alarms must be installed on every storey, they must be located between each part of the dwelling containing bedrooms and the remainder of the dwelling. Smoke alarms must also be installed in any hallway leading to the bedrooms.

Landlords must comply with smoke alarm legislation in all residential rental properties including detached houses, villa units, sole occupancy units, guest houses and hostels.

Federal Legislation

Landlords must ensure that their rental property is properly fitted with the required number of working smoke alarms, complying with the Australian Standard (3786:2015), and that they are installed as outlined in the Building Code of Australia (BCA) part 3.7.2.3. This legislation is applicable to all states of Australia.

When selling a home, you will be asked as a part of the legal documentation if you have a compliant smoke alarm, so it pays to understand what that is.

At Smith Partners Real Estate, we ask that a hard-wired alarm be fitted to all rental properties; due to the high chance of a tenant tampering with a removable battery powered alarm (9-volt battery powered alarms). In the case where a hard-wired smoke alarm cannot be fitted, then it is recommended that a 10-year lithium battery operated alarm be installed. This type of alarm is easily fitted, like a 9-volt type alarm, but the 10-year lithium alarm has a battery sealed inside that cannot be removed.

We regularly offer to all our Landlord’s to have a professional service check the smoke alarms and install new ones as required.

If anything you’ve read is of concern to you, or to learn more, call Smith Partners Real Estate on (08) 8251 3249 to have a chat with one of our friendly staff.

PART 5 OF 5: PREPARING YOUR HOME FOR SALE......

Tip 5: Styling & Presentation

Although it might not always be to your taste, a property with modern styling, will sell quickly and usually for top dollar.

Things to consider on the styling and presentation of your home:

-              a styled home creates excitement and an emotional attachment for buyers

-              the photography will look incredible and draw in more buyers

-              more buyers mean the odds of selling quickly and for top dollar are greatly increased

We recommend using the services of a professional home stylist, but for those who are a little creative and want to have a go, we have some tips from Interior Designer James Treble to help you get the perfect designer look for all your interior spaces. Source: https://www.homestolove.com.au/5-simple-home-styling-tips-to-remember-1772

1. SIZE DOES MATTER - When it comes to art, oversized pieces will always make a big statement. I suggest investing in one piece that you really love and placing it in a key position, like above the lounge or in a foyer, to set the stage for your home styling. A big piece of art means you don't need lots of other clutter in the room, as it remains the star of the space. Alternatively, a large piece of amazing fabric, framed or on a canvas, can work just as well.

2. POWER IN NUMBERS - Make a statement by grouping similar objects like vases, bottles or bowls together, so that they become a stronger design element as a whole than they would be individually. One of my tricks is to place three or five candlesticks (always odd numbers) of differing heights in one place. When lit, they become one large light feature, creating great ambience.

3. PRINTS AND PATTERNS - There are patterns everywhere in nature, like the bark of trees, or stones in a river. Natural patterns create interest, so why not use them inside as well? They don't have to be over the top either. A great way to add pattern is with cushions, throws and rugs, which can work together or independently to help you create the mood you want in your home.

4. GO GREEN - One of my favourite and most cost-effective ways to accessorise any room is to add some greenery; I love indoor plants and have one in nearly every room in my house. A great thing about indoor plants is that they help to blur the line between inside and out, making rooms feel larger and fresher at the same time. And you can easily enhance mood with an interesting basket or pot, chosen to work with the existing style of your interior.

5. LESS IS MORE - The term "less is more" means that having less of something makes a stronger – and more enjoyable – statement than overwhelming the senses with too much all at once. Strong colours or patterns, though amazing, create a better impact when used sparingly in interior design, than when lots of both are crammed together in one space. The same rule applies for mixing styles of furniture. Using mostly clean lines and neutral tones lets you add one outstanding piece. It can then sit comfortably, without competing with other pieces.

“Some people look for a beautiful place, others make a place beautiful” ~Hazrat Inayat Khan~

If you would like personalised advice on how to present your home for sale, simply click this link or email us

PART 4 OF 5: PREPARING YOUR HOME FOR SALE......

Tip 4: Furniture & Decluttering

When you are trying to sell your property, you want the home to look as spacious as possible. This means assessing how your furniture, collections and décor fit in to the space that you have.

Important things to take in to consideration when looking at each room:

-  is my furniture too big for this space?

-  do I have too many personal items on display?

-  should I just move everything out?

People often make the mistake of falling in love with a lounge or bed because of comfort or the way it looks, and when it’s actually in the property, we realise that it’s actually just a little too big for the space. Some of our tips:

Bedrooms - Things like large beds and bedside tables in small bedrooms makes the room look even smaller. Our suggestion is, get some small bedside tables (often this will be without drawers which is completely impractical for living, but necessary for sizing). If you can, in your master bedroom, we recommend putting your normal King or Queen bed into storage and hire or borrow a double bed which will create the impression of space. You can apply the same tips for the kids rooms if they have double beds, go back to single beds temporarily.

Lounge rooms – Oversized comfy sofa’s are great for the family lounging together, but when you’re looking to sell, if you have two lounge suites consider moving one of them into storage or if you have a couple of chairs in your set, put one or both of them in storage. Also, consider your coffee and/or side tables. Again, although it’s not practical for living, just for sale, either swap them for smaller one’s or remove altogether and place in storage.

Collections and personal items – You want your house to look like a home, so don’t remove all your personal items and collectibles, but perhaps halve them. It will make dusting before open inspections easier and the space will feel more open and cleaner with less items on each surface. We recommend that personal photos and valuables should be put away for open inspections.

Even if you have another house to move to, we don’t recommend just moving all your items out. Selling an empty house is not an easy task due to the following:

•  The marketing photography of a house full of empty rooms does not create any excitement in buyers looking for a new home. Think of the last time you looked at an empty property online. How quickly did you flick through the photos and how often did you ask, “what’s that room?”

•  When the buyers come to the open, they have a hard time determining how their furniture will fit in the space. The need to have some furniture there already as a point of reference and will often assume the worst eg. “this room’s definitely too small for our lounge suite”.

•  As with not removing too many of your personal/decorator items, you still want the house to feel like a home. An empty property feels abandoned and unloved, like the previous owner couldn’t wait to get out of there!

“Clearing clutter directs you towards paced progress…” ~Chayan Jain~

If you would like to see all our tips, please email info@spartners.com.au to request a copy of our Preparing Your Home For Sale booklet.

PART 3 OF 5: PREPARING YOUR HOME FOR SALE......

Tip 3: Flooring

A typical lifespan for modern carpeting is 5 to 15 years, depending upon the quality and the amount of foot traffic it receives. Other types of flooring generally need replacing based on fashion or general wear-and-tear.

It is important to consider a flooring update prior to listing your home for sale for the following reasons:

-   worn, tired or stained carpet gives the appearance of being dirty (even if it’s not)

-   slate and tiled floors can seem dated, depending on the colour and style. Appealing to the majority of buyers means you want your home to look fresh and modern

-   if you have damage, cracks, scuffs or chips in your slate, tiles or floorboards, this will devalue the property in a buyer’s mind

Carpeting and floating floorboards, as a general rule, can be a relatively inexpensive way to update flooring. Depending on specials and promotions from carpeting stores you could carpet three bedrooms from around $1,200. Floating floorboards can be purchased from as little as $25/m2 and if you’re handy you can even lay them yourself!

Like paint and wall colours, flooring should be neutral shades, so it will go with anything. If you’re worried about picking the wrong colour, you should ask advice from the store you are buying from. Neutral shade fashions do change from time to time (for example from cream and beige shades to charcoal grey shades), so it is best to seek advice on what’s current.

Carpet - as a general rule, buyers like to have plush carpeting in bedrooms and lounge rooms. Other areas, we recommend more durable, easy clean flooring.

Polished floor boards - if you have an older home with quality floorboards, we highly recommend that you stain and/or polish them up as real polished floorboards are a great selling point.

Floating floor boards – floating floorboards are an inexpensive way to modernise the high traffic and living areas of a property. Beware of high gloss options as they look amazing but scratch and wear easily. Perhaps use these if your property has either a couple living there or no occupants at all! If you have a family and/or indoor pets, steer clear of the high gloss.

Tiles – if you can afford to tile or re-tile your property, go for large square neutral toned tiles. If you can’t afford to re-tile and your existing tiles are dated, you can look into having the grout professionally cleaned or you can even have the tiles professionally painted. You can paint tiles yourself, but we do not recommend it – leave that one to the experts.

Slate – slate is a little old fashioned these days but if you can’t afford to replace the slate in your property, you can at least freshen it up by sealing the flooring.

“The adventure of every new day begins the moment your feet touch the floor.” ~Susan Gale~

If you would like to see all our tips, please email info@spartners.com.au to request a copy of our Preparing Your Home For Sale booklet.

PART 2 OF 5: PREPARING YOUR HOME FOR SALE......

In our 5-part series, find out our top tips for getting your home sold quickly and for top dollar through perfect presentation! Whether it’s your first time or the fifteenth, selling a property is a highly stressful time. Here, we will provide you with the top five presentation tips based on our extensive years of experience in selling residential property.

Tip 2: Painting

The interior of your home should be painted around every 5 to 7 years and the exterior can go as long as up to 15 years depending on your location (for example beach side suburbs may need more frequent updates on the outside).

It is important to consider painting prior to listing your home for sale for the following reasons:

• a fresh paint job lifts and brightens the appearance of any room making it feel crisp and clean
• it’s an opportunity to update any too bright, too dark or too dated feature walls
• a paint job can eliminate odours that may have accumulated over the years from strong food flavours, cigarette smoke or pets’ smells.

It’s important to remember when you are getting your home ready for sale, that you want to appeal to the greatest number of buyers out in the market. While you may LOVE your bright green feature wall or think that retro wallpaper suits the style of your home, it will alienate some buyers.

When it comes to the walls and floors of a property, buyers are just looking for a neutral blank canvas that doesn’t require any work on their part. If they walk in to a property and see they have to paint every wall in the house, they’re already deducting $10,000 from their potential offer and that’s only if everything else in the property meets their requirements.

Regardless of the style of your home, you can’t go wrong with neutral wall colours. If you are worried about picking the wrong colour, you should ask advice from the store you are buying your paint from or if you are employing a professional, then certainly take their advice. Neutral shade fashions do change from time to time (for example from creamy beige shades to light grey shades), so it is best to seek advice on what’s current.

If you are looking to do the work yourself, be prepared for exactly how labour intensive and time consuming it can be. If you’ve never done it before or it’s been a long time, start small, say with one bedroom, and see how you go. After this you may want to investigate your options with hiring a professional. Having a whole house painted by the professionals will generally cost upwards of $5,000 so you may want to just do the high traffic areas like hallways, living rooms and kitchen. If all your walls are already quite neutral in colour, you may even get away with just a quick patch-up as long as the colour is perfectly matched.

Make no mistake, painting your home is no small task, but it will help with getting a quick sale for the best price.

“A blank canvas… has unlimited possibilities.” ~Stephanie Perkins~

If you would like to see all our tips, please email info@spartners.com.au to request a copy of our Preparing Your Home For Sale booklet.

PART 1 OF 5: PREPARING YOUR HOME FOR SALE......

In our 5-part series, find out our top tips for getting your home sold quickly and for top dollar through perfect presentation! Whether it’s your first time or the fifteenth, selling a property is a highly stressful time. Here, we will provide you with the top five presentation tips based on our extensive years of experience in selling residential property.

Tip 1: Maintenance

The rule of thumb is - if something needs repair - fix it! There may be several things in your house that you have simply become accustomed to over time - things that you have been promising yourself to attend to. Well NOW is the time!

It’s important to attend to maintenance prior to listing your home for sale because:

-      Appearances are everything - you might be saying to yourself “these repairs aren’t a big deal,” but the buyer is thinking, “if the owner didn’t take care of these little items, then what about the roof of plumbing or air conditioner?”

-      It may cost you more in the long run - Buyers will mentally add up their perceived costs of repairing all those minor flaws and end up with an amount that is generally much higher than your actual costs will be.

-      Major things will be discovered anyway – 90% of buyers will get a building inspection done. If you’re at the stage where a building inspection is being done and issues are found, you will either lose your buyer or have to re-negotiate your price to allow for the perceived cost of repair for the buyer.

So, where do you start? Indoors, a few things to check include:

·         peeling or chipped paint or loose wallpaper

·         leaky taps and toilet cisterns

·         cracked tiles, lifting floor boards, stretched or worn carpet

·         scratched kitchen benches or stove tops

Outdoors, consider the following:

• retaining wall integrity and stability
• rusted gutters and downpipes
• swimming pool appearance

Large repairs:

In today’s climate of open disclosure and vigilant home inspections the “Golden Rule” applies. Treat the buyer as you would treat yourself. Repair any problems with major systems. If you don’t, it will only be found later during the building inspection and you’ll risk either losing the buyer or having to lower your sale price to allow the purchaser to pay for the repairs.

“At first glance it may appear too hard. Look again. Always look again.” ~Mary Anne Rodmacher~

If you would like to see all our tips, please email info@spartners.com.au to request a copy of our Preparing Your Home For Sale booklet.

PROTECT YOUR INVESTMENT.....

HOW TO:

Having an investment property and being a landlord is a huge undertaking. We could write pages and pages on just the very basics that you need to know to successfully handle in investment property, but in this piece we’ll focus on just a few key financial things you should take care of.

HAVE EXPENDIBLE INCOME

As a general rule, you should never expect to make a profit based on your rental income. Depending on where you invest, it’s definitely a possibility, but in some cases, your rental income won’t even cover your mortgage repayments. For example:

you have a $300,000 mortgage on your investment property

at a rate of 5% you’ll be paying appox. $375 per week on your mortgage

for that price, you might be able to get a reasonable 3-bedroom, 1 bathroom place in Golden Grove

depending on the presentation, you could rent it out for between $340 and $375 per week*

As you can see, you’d only just be covering your mortgage in the best-case scenario and that’s only if nothing ever goes wrong at the property! Financially, you need to be prepared for that and you need to be able to afford the mortgage on your investment, as well as the mortgage or rent for wherever you are currently living as well as daily living costs. At tax time, you may get a nice refund as the expenses related to owning an investment property will offset against your taxable income. This is what is known as negative gearing. If you can afford to do so, it might be prudent to keep that refund aside for emergency repairs to your investment property.**

BE INSURED

PLEASE, PLEASE, PLEASE get proper landlord’s insurance! There are several companies who specialise in landlord’s insurance policies. They are generally less than $300 per year and their policies are much more comprehensive and cover scenario’s that you’ve probably never even thought of! Even though your tenant will pay a bond, the process of evicting a tenant means that the bond will almost never cover all your losses should something go wrong, so landlord’s insurance is definitely necessary.

CHOOSE WISELY

Have you ever thought to yourself about all the “bad tenant” stories out there and wondered, “where do they end up living?” Well, a lot of them actually prey on landlord’s who are self-managing their property and advertising in Gumtree and similar publications. The reason that they do that, is they know that a landlord who is managing the property themselves, is probably not going to do the required checks (or not do them properly)… Let’s say for example:

you have all the applicants fill in application forms

the applicant that you liked says that they rented from another self-managing landlord and has listed them as a reference

you do the right thing and call that other landlord to ask what this applicant was like as a tenant

How do you know who you’re talking to? Your applicant could be one of those nightmare tenants who has a friend posing as their landlord!

USE A TRUSTED PROPERTY MANAGER

You really need to consider using a trusted Property Manager to help you find and manage your tenant. I can feel all of you rolling your eyes at this and thinking it’s just a plug for our Agency, but it really isn’t. In the above scenario, a good Property Manager:

would use the systems available to them to check National Tenancy Databases to see if the applicant been reported previously

would use the systems available to check the “self-managing landlord” on the application is actually the owner of the house that the applicant is claiming to have rented from them

if the applicant stated that they rented from an Agency previously, we would easily be able to call the Agency to get an honest review of what the tenant was like

And these are just a few of the checks that a good Property Manager would complete when looking for a tenant. Of course, things can still go wrong if you use a Property Manager, and tenants who used to be amazing can turn bad due to loss of job or various personal problems that can arise.

But, at least you can rest assured that when you need to go to Tribunal to evict a problem tenant, that all of the correct records have been kept, and at the push of a button, everything can be sent or printed out as evidence to get the outcome that you want. That’s if you select a trusted Property Manager. As for how to do that, well that’s another whole entry!

*example is for illustration purposes only

**Smith Partners Real Estate is not a financial adviser. You should seek independent legal, financial, taxation or other advice to check how this information relates to your unique circumstances

For more information:

Ph: (08) 8251 3249

Email: info@spartners.com.au

Web: http://www.smithpartnersrealestate.com.au/

Or come and see us at:

Shop 34, Golden Grove Village Shopping Centre Cnr The Golden Way & The Grove Way GOLDEN GROVE

PICK THE BEST TIME OF YEAR TO SELL.....

HOW TO:

It’s long been a myth in the real estate industry that the best time to try and sell your property is in the spring. The truth is, that although there’s not really a “best time of year” to sell your property, there could be features of your home that, if timed right, will lead to a quicker, easier sale. For example, if your home has a stunning swimming pool - it will still sell in winter, but it will sell more easily in the summer (especially if you happen to do your opens during a 40-degree heatwave!)

You should also keep in mind that having a large number of properties all coming on the market at the same time will lead to buyers having too many options. If you own a 4 bedroom, 2 bathroom home and you come on the market in spring just like everyone else who has a 4 bedroom, 2 bathroom home then it’ll be more difficult to make your home stand out and to get that quick sale for top dollar.

So, a few things you might want to consider that may affect when you choose to begin marketing your property for sale:

• Do you have an open fire or combustion heater? Best to sell in WINTER - the ambience created by an open fire on a cold day is very appealing to a buyer

• Do you have a fantastic air-conditioner? Best to sell in SUMMER - there’s nothing better than walking into a house on a summers day to find it’s absolutely perfect inside! (If you’re a/c isn’t the greatest, you might want to consider getting a better air-conditioner or at least a service…)

• Do you have a swimming pool? Best to sell in SUMMER - people love picturing themselves diving in on a hot day

• Do you have a beautiful garden? Best to sell in SPRING - lovely blossoms set the scene, just make sure it’s a low maintenance garden though.

• Do you have no garden? Best to sell in AUTUMN/WINTER - there’s nothing wrong with a concrete jungle, except when the summer heat is radiating off into the faces of your potential buyers.

Essentially, you just want to show your property in the best possible light and if that’s in winter with a roaring fire and fresh pot of coffee, then why wait for spring?

Ph: (08) 8251 3249

Email: info@spartners.com.au

Web: http://www.smithpartnersrealestate.com.au/

Or come and see us at:

Shop 34, Golden Grove Village Shopping Centre Cnr The Golden Way & The Grove Way GOLDEN GROVE

DECIDE WHETHER OR NOT TO GET A SWIMMING POOL.....

HOW TO:

People often ask us if a swimming pool will add value to their property. The short answer is generally no, but there are some exceptions.

If you have a big family home on a big block and you expect top dollar when you sell - then the answer to “should we get a pool?” is probably yes. Families looking for that next level prestige home, generally want it all - 4+ bedrooms, 2+ bathrooms, 2+car spaces, lawn for the kids to play and the luxurious swimming pool. The exception to this rule is, if you have the big family home, but the pool is going to take up your entire backyard leaving you with no lawn area, then we would NOT recommend putting in a pool. Even though we all know that kids would rather sit on an iPad or gaming console than play on the lawn - whenever we try to sell a family home with no backyard, the feedback is always “love the house, but the kids need a backyard”.

Your average group of buyers is split pretty much down the middle - half of them really want a pool, the other half don’t want to have to maintain it.

The other thing you need to consider these days with getting a pool is that it has to be compliant when it comes time to sell – this means:

Fencing must be constructed in such a way to make sure that:

• the fence is an effective barrier to young children
• it is permanent
• young children can't crawl under or climb over it by using foot and hand holds
• it is at least 1.2 metres high
• any boundary fences used as part of the child-safety barrier are at least 1.8 metres high on the side that faces the pool, with a 900 millimetres non-climbable zone at the top inside of the fence, a boundary barrier may be climbable on the neighbour's side.

Gates or doors leading to the pool area must:

• swing outward from the pool area
• be self-closing from any position
• be fitted with a latching device, out of reach of small children, at least 1.5 metres above ground level.

Putting in a swimming pool is an expensive exercise, but spending $50,000 on one, won’t necessarily increase the value of your home by that same amount. As a general rule, putting in a pool is something you should do just because you want to enjoy it for yourself, not something you should do to increase the value of your home.

For more tips on adding value to your property:

Ph: (08) 8251 3249

Email: info@spartners.com.au

Web: http://www.smithpartnersrealestate.com.au/

Or come and see us at:

Shop 34, Golden Grove Village Shopping Centre Cnr The Golden Way & The Grove Way GOLDEN GROVE

MAXIMISE RETURNS ON A RENOVATION......

HOW TO:

A lot of home owners think that they shouldn’t do any renovations prior to putting their home up for sale just in case it’s not to the taste of the buyers. “Let them choose how they want it to look”, they think. Buyer’s these days are usually lacking the funds, time and often the skills required to do a renovation themselves. The days of buying a “fixer-upper” are gone, unless it’s so run-down that people will actually be looking to knock it down! If you stick to neutral tones and take advice from the experts around you, whatever you select is going to be better than the dated décor in your home now.

All homes need to be updated from time-to-time - about every 10 years is a good benchmark. Not only do styles and fashions change all the time, but selling a home that hasn’t been updated for 20 years is no easy feat and will severely impact your final selling price.

KITCHENS AND BATHROOMS

Every real estate agent has probably said similar words in their career that “kitchens and bathrooms sell houses.” It is so very true and the reason is that they’re the most expensive rooms to update! Buyers do not want to and spend $400,000 on a home only to have to spend another $50,000 to update the kitchen and bathrooms. The good news is, that there are options to refresh these areas without breaking the bank:

• Kitchen cupboards can be re-sprayed or re-painted with laminate paint – put on new doorhandles and it’ll look like you have a new kitchen!
• Tiled kitchen splashbacks can be painted too – ask an expert for help and all the right tools.
• Benchtops can be re-sprayed by a professional to look like stone benchtops or even just a more modern coloured laminate. Or you could look into covering with a thin layer of granite – again look to a professional to do this for you.
• Bathroom tiles and also bathtubs can be painted with Tub & Tile paint
• Update tapware and other accessories like towel rails, toilet roll holders, etc.
• Replace the old vanity and toilet if necessary.
• Plan ahead with all your plumbing jobs (like vanity, toilet, tapware) and have everything ready to go all at once so you only have to pay one call-out fee.

FLOORING & PAINTING

Don’t worry too much about tiles vs. floorboards in your main traffic and living areas. Those things seem to be quite subjective with many different buyers having different opinions. Only look to update if the colouring is not neutral or if there is a lot of damage to the existing flooring like scratches, chips or cracks.

Carpeting is a different story – carpets need to be updated regularly, not just because of staining, but just from wear. Again, just keep it neutral and listen to advice from the experts at your chosen flooring store.

A freshly painted house does wonders when trying to sell. Cover over any bold feature walls – even if you love it, buyers probably won’t. Even if you don’t have anything bold to cover up, a fresh coat of paint will cover up any scuffs, nicks and marks that may catch the eye of your potential buyers which could give the impression that there’s too much work to do.

The home will feel cleaner and fresher with a coat of neutral toned paint throughout.

STORAGE

Storage is so important to buyers these days. If you don’t have a lot of it, put a storage and/or linen cupboard in the laundry - even if it’s just a free-standing melamine cupboard that you intend to leave at the property after you sell.

If your budget allows, get built-in robes for the bedrooms and at worst, at least get one for the master bedroom. A lot of homes have built-in robes these days, so people don’t want to move from a house with them to one without and then have to bear that extra expense themselves.

OUTDOORS

Make sure the front yard is welcoming and appealing. Do some planting if you need to, otherwise just tidy up existing plants and stay on top of the weeding.

In the backyard, an outdoor entertaining area is very important to most buyers. If you don’t have a pergola or veranda, look to put in some high quality, waterproof shade sails - they’re not cheap, but less expensive than a new pergola or veranda.

Looking at these few key areas will make your home look and feel like a welcoming and modern home. Yes, it will cost money, but if you don’t spend it upfront, then it’ll end up coming off your sale price. If you do it right, you should come out in front and make more selling your home than you’d hoped!

For more tips on preparing your home for sale:

Ph: (08) 8251 3249

Email: info@spartners.com.au

Web: http://www.smithpartnersrealestate.com.au/

Or come and see us at:

Shop 34, Golden Grove Village Shopping Centre Cnr The Golden Way & The Grove Way GOLDEN GROVE