Regional areas showing home values rising

Often considered to be the laggards in the upturn in a property market cycle, Australia’s regional property markets are currently experiencing a flow-on effect from strong capital city market activity, with a rise in house and unit values recorded over the past 12 months to May 2017. australia

Covering the 50 most populous non-capital city council areas, after a long period of soft housing market conditions post the 2008 GFC, we’re seeing a pick-up in housing demand across these regions as buyers look outside the capitals for more affordable options.

While a majority of the regions are showing an upward swing, areas linked to the mining and resources sector are continuing to see values fall.

Of the non-capital city council areas analysed, areas close to Sydney are seeing the strongest growth in New South Wales.

As an example, the Wollongong council area is the most expensive for houses ($730,427) and units ($530,170).

The area also recorded the greatest increase in house values, and now holds the fourth highest increase in unit value over the past year.

Places like Wollongong are on the rise as demand ripples away from Sydney where affordability constraints are more pressing.

Regional areas in Victoria which are close to Melbourne are experiencing value growth, however, it is nowhere near the magnitude to which values are growing in those locations close to Sydney. 

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Although values are rising, the softer growth can be linked to the fact that values have not risen as sharply in Melbourne as they have in Sydney and subsequently affordability hasn’t deteriorated as severely in Melbourne.

For Queensland, the results are more mixed with the south-east corner generally seeing values rise, while across the remainder of the state, growth is extremely mild or values have fallen.

Stripping the spotlight from Brisbane, CoreLogic confirmed that the Gold Coast, Sunshine Coast and Noosa are now seeing more rapid value growth than for Brisbane.

It seems as though much of the demand across these regions is coming from an acceleration in internal migration to Queensland, and where buyers from Sydney and Melbourne are using substantial equity earned to secure lifestyle properties in the state.

Of the areas observed by CoreLogic, each of the 24 regions highlighted in New South Wales have recorded value growth for houses over the past year.

Median house and Unit Value

For units, only 4 of the 24 regions have recorded value falls over the past 12 months.

In Victoria, of the 10 regions analysed, two recorded value falls over the year for houses and 2 regions also recorded falls for unit values. property market

Greater Shepparton was the only council area of the state which recorded value falls for houses and units.

Of the 13 regions highlighted for Queensland, five have recorded value falls for houses over the past year and seven have recorded declines for units.

Each of the regions highlighted in Western Australia have recorded value falls over the past year for houses and units.

Launceston was the only region analysed in Tasmania and it has seen house and unit values rise over the past year.

It should be noted while values have increased they have done so at a more moderate pace than those in Hobart.

Overall, we’re seeing housing demand in regional areas of the country is rising.

While many regions are seeing values increase, the strongest demand appears to be in those areas within relatively close proximity to capital cities, particularly those which are coastal and tap into lifestyle demand.

from Property UpdateProperty Update https://propertyupdate.com.au/regional-areas-showing-home-values-rising/

What Australia can learn from the New Zealand retirement system

While you can’t say one retirement system is better than the other, Australia can learn a lot from New Zealand’s simpler and more flexible system, writes…

Ross Guest, Griffith University and Kirsten MacDonald, Griffith University

The Australian and New Zealand retirement systems both feature public pensions and private superannuation.super retirement superannuation saving elderly old

But there are things to learn from the differences between the two systems.

While Australians may end up with more savings in retirement, New Zealand’s system is simpler and offers more freedom.

In Australia, contributions to the superannuation system are both compulsory and higher, and you cannot make withdrawals or stop contributing except in exceptional circumstances.

The Australian pension is also better targeted at those with greater need.

In New Zealand, saving for retirement is not compulsory, so those on low incomes are not forced to make contributions.

The aged pension is available to all New Zealanders, so people don’t need to game the system to maximise their pension and the government has lower administration costs.

The New Zealand superannuation system is also more straightforward when it comes to taxation and administration.

Finally, the New Zealand retirement system offers more freedom.

Its super system allows people to opt out, to stop making contributions for a certain time, and to withdraw funds for housing.

Incentives to work and save

While New Zealand’s pension, New Zealand Super, is less equitable than the Australian age pension, it probably provides more incentives to work and save throughout a working life. 

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This is in large part because, unlike in Australia, New Zealand Super is not means-tested.

It does not take into account a pensioner’s income and assets when deciding whether and how much they are entitled to.

The absence of means testing in the pension system provides more incentive for New Zealanders to save and work.

This is because means testing acts in a similar fashion to a tax – once your income or wealth rises above a threshold level, your pension is gradually reduced.

The lack of means testing means New Zealand Super is available to all New Zealanders over 65, subject to residency requirements.

Hence even rich New Zealanders are entitled to the pension, which is arguably less fair than the Australian system.

More choice in superannuation

The New Zealand superannuation system, KiwiSaver, puts more control over retirement saving in the hands of the investor than the Australian system.

This allows New Zealanders to vary the amount they save over their lifetime as their needs change.retirement

KiwiSaver is an opt-out model. This means employees are automatically enrolled when they are first employed, but they can choose to opt out.

If you do not opt out, you and your employer each contribute 3% of your income to KiwiSaver.

But individuals can choose to contribute at higher rates of 4% or 8% and make voluntary lump-sum contributions.

KiwiSaver also allows members to suspend their contributions for between three months and five years after one year of membership.

Funds can also be withdrawn to buy an owner-occupied house, provided certain requirements are met.

The need to opt out and default contributions tend to nudge employees towards saving for retirement, thereby providing a balance between unfettered choice and the more rigid Australian system of compulsory 9% super contribution.

No ‘lost super’ and better taxation

KiwiSaver funds are linked to individual tax numbers and employer contributions are made through the pay-as-you-earn tax platform.

Switching between schemes or providers doesn’t bear the same risk of “lost super” as found in Australia, as members can only invest in a single KiwiSaver scheme.

Also unlike in Australia, KiwiSaver contributions and returns are taxed the same as other savings.

This means there is no reason to limit tax-paid contributions, to claw back taxes after an investor dies, or to prescribe a minimum contribution.

This is arguably a more straightforward and fair system.

Simplicity and flexibility

There is no simple answer to which system is better.

Even though the Australian system may lead to more in retirement, and is better targeted to those in need, there is a lot to learn from the design of the New ZConcept of money growing from coinsealand retirement system.

The New Zealand system is a lot simpler than Australia’s.

Because of the way superannuation is taxed and the lack of means testing for pensions, New Zealanders have less reason than Australians to try to game the retirement system.

The ConversationThe lack of means testing also means New Zealanders have more incentive to work and save throughout their working lives.

And the freedom to vary their superannuation contributions, and even suspend or withdraw their contributions to pay for a house, gives New Zealanders more flexibility to react to financial events throughout their lives.

Ross Guest, Professor of Economics and National Senior Teaching Fellow, Griffith University and Kirsten MacDonald, Lecturer, Griffith Business School, Griffith University

This article was originally published on The Conversation.

from Property UpdateProperty Update https://propertyupdate.com.au/what-australia-can-learn-from-the-new-zealand-retirement-system/

Here’s how the great Australian Dream has evolved over time [Infographic]

The ‘Great Australian Dream’ is a turn of phrase that gets bandied around a lot.

But what is the ‘Great Australian Dream’, and does it differ for different people? house property

In a bid to answer these questions, Mortgage Choice surveyed more than 1,000 Australians, investigating their thoughts and opinions on home ownership and whether or not it remains the ‘Great Australian Dream’.

Overall, it would appear the ‘Great Australian Dream’ of property ownership is still alive and well.

Australians continue to put property ownership ahead of other dreams and goals, including career success, business growth and luxurious travel.

But while property ownership remains the number one ‘Dream’, most people believe this dream is becoming increasingly difficult to achieve.

And that ‘Dream’ is evolving as the infographic below illustrates:

The Great Australian Dream Infographic v1.5 (1) (1).jpg

Read more: Mortgage Choice

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from Property UpdateProperty Update https://propertyupdate.com.au/heres-how-the-great-australian-dream-has-evolved-over-time/

Does becoming an agent help you get ahead as a property investor?

Uncapped income, a plethora of potentially profitable properties at your fingertips and a flash car. 

What’s not to love about being a real estate selling agent? Couple meeting real

It’s no surprise many property investors, at some stage in their lives, have considered becoming selling agents.

Probably because much of their time is spent searching for properties, inspecting them, imagining how they would improve them and how much equity they could make in 20 years’ time.

With all this time invested, they might as well turn property transactions into their day job, right?

Becoming a selling agent just appears the obvious choice for many.

But as we find out, becoming a selling agent isn’t always the natural next step after property investor.

For starters, the selling agent’s client is a seller, which means you would be selling a property, not buying one. 

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Your time would be spent achieving the highest price and best contract conditions for the seller rather than the lowest price or best conditions for the buyer.

But surely these skills could give you, the investor, the ultimate advantage when buying properties for your personal portfolio?

Perhaps it’s time to delve into the underbelly of a selling agent to find out.

Slip on your sharpest suit, shades, designer shoes and your slickest smile, then sign the lease on your favourite luxury car.

Hurry up, your first open home inspection starts in 20 minutes, and that’s the exact time you need just to drive there, unlock the house, put up the signs, display the brochures and set up your registration book.

LET’S TALK MONEY

In the selling agent’s first year he or she could expect to earn circa $40,000, in line with the Real Estate Industry Award 2010, according to Tasmania’s Real Estate Institute chief executive Mark Berry.

This is simply the retainer, he explains, which is deducted from the sales commission when that eventually starts to come in.

“Agents really need to be writing in the vicinity of $150,000 to $200,000 to be in a breakeven situation for the agency principal.  This is essential to cover desk costs,” he notes.

Berry says the expectation is that agents can take home 50 per cent of the fees, while the other 50 per cent goes straight to the agency owner. handing-money

Other agents with proven experience might approach an agency principal offering their services for no retainer.

What they might do is enter into an aggregated contract highlighting a commission share arrangement only.

The contract might also stipulate that fees can be paid once a deemed level of sales is reached.

This usually happens in times when a real estate agency can’t budget in more employees or the agency has cash flow issues, Berry says…

“This is often in tougher selling times.”

Berry notes in this case, an agency owner would only take on someone with proven selling experience.

“If that individual doesn’t perform and minimal commission is made, then the agency might face an issue with Fair Work Australia for not paying the minimum award rate.”

The Macquarie Relationship Banking 2012 Residential Real Estate Benchmarking Report reveals that 43 per cent of real estate sales staff are on commission only, while 50 per cent receive a fixed salary plus commission, and seven per cent are on fixed salary only

Real Estate Institute of New South Wales president Malcolm Gunning says the more sales and profits the selling agent makes for the agency, the larger the share they can often negotiate to take home.sydney

“For example, an agency may have a good selling agent writing $1 million in commission fees from vendors,” he explains.

“The take-home might be $600,000, but that’ sonly the tope one per cent of Melbourne, Sydney and Brisbane agents who can write these very large fees. These agents will often have one or two assistants helping them, so they’d need to cover their costs also.”

The report also states the top two percent of selling agents earn in excess of $500,000 a year.

Though when comparing the national average top salesperson of each agency, the same report states that an average of $250,000 in gross sales commission for the business was the highest in 2012, down from $323,000 in 2009.

Gunning believes the average selling agent is more likely writing around $200,000 per year, which can return them something equivalent to a $70,000 salary.

The report also says the average business gives away 43 per cent of gross sales commission to the sales agent.

HOW DO YOU BECOME A TOP TWO PER CENT EARNER?

There are skills that every selling agent must have to simply make a crust in the profession, such as being able to price property accurately for the seller.money price property

Also, to understand the differences across a wide range of properties and be able to write them up in legible real estate terms.

It’s also important the selling agent knows what each property’s affectations are, where the sewers and easements are located and how this could affect the decision of a potential buyer.

“Every selling agent also needs to have a general knowledge of property law, marketing and computer skills, then be able to talk the talk and express themselves in property terms, language or words that meet industry standards,” Gunning says.

He adds that the minimum education and requirement to become a selling agent may be basic, but what separates an average one from a highly successful one often comes down to the agent’s inherent skills.

Being a selling agent isn’t as simple as standing in front of a house in a smart suit with a clipboard greeting or showing people through.

There’s a lot more to it, such as personality and work ethic.

It’s also about the ability to match personality with the seller demographic. 

About understanding the market, having strong interpersonal skills, being very organised and being prepared to work hard; at odd hours and over weekends.urban

“It’s a numbers game so you need to understand how the numbers work,” Gunning adds.

“The biggest property doesn’t always mean he bigger the fee you’ll earn that year. The property may be $1.5 million however, your fee is still up for negotiation. Often this can mean a lower percentage commission is negotiated compared with percentages negotiated compared with percentages negotiated on lower priced properties.

“Often the very successful agents aren’t operating in the high end, rather in the middle-priced housing where a higher volume of properties is turned over.  In Sydney, this is often around Castle Hill, Baulkham Hills and Liverpool.”

They’re also adding to and updating their contact databases, which is the lifeblood of their income. 

The toughest part for many selling agents is dealing with buyers and sellers seven days a week, Gunning says.

“Many selling agents burn out from conflict between the two parties and the lack of personal time off. You can get hammered if you don’t have confidence to handle the situation.”

Most people generally respect Sundays as a day of rest for agents, Gunning notes.

“While many agents are given a day in reprieve on Monday or Tuesday for working Saturdays, this doesn’t mean they turn the phone off because a missed call could mean a missed commission.”

Gunning says to be one of the top earning selling agents you need to consider the job as your ‘additional’ child. calculator coin money save debt

This means long days, sometimes finishing at 7pm or 8pm, so your clients can be given a private viewing outside of their work hours.

“Unless you see it as part of your life, you’re not going to be highly successful.  As an agent you’re on call constantly, a bit like a doctor often is,” he says.

“Only very successful agents can balance this well.  Instead of lengthy holidays taken in blocks, they take short breaks every four or five months, but if they’re in the middle of an auction campaign then time off is impossible.”

Holidays are often restricted to the Christmas period, through to January and early February, Gunning adds.

“The Christmas holiday period is often when most sellers don’t want potential buyers tramping through their house.”

CAN BEING AN AGENT HELP YOU GET AHEAD?

Your first consideration is probably whether the income as a selling agent could help pick up your pace in building your property portfolio, or at least make servicing the loans easier.

Your second consideration is also about whether the gained skills of a selling agent and daily exposure to property are also likely to help.

Let’s take a closer look.

1. As a selling agent, your negotiation and people-reading skills improve every day, because you’re the middle person between sellers and buyers on a daily basis.

The advantage:  When negotiating to buy your investment property you’ll have the inside scoop on how it all works, and you’ll know how hard and far you can go on price and conditions. Realtor giving house key to buyer in empty room

2. Through other agent colleagues, you’re alerted to properties coming up for sale well before they’re marketed. You also know when new infrastructure, gentrification or developments are proposed for an area often before anyone else does.

The advantage:  This means you have more time to undertake due diligence and negotiation, and can potentially buy a property with good future gain potential in a less crowded market.

3. Your day-to-day knowledge of the property market and its cycles is not only better than most property investors, but you can also tap into a wealth of knowledge from your colleagues; industry experts who’ve worked through many more property cycles than yourself and often across several more property markets than what you know intimately.

The Advantage:  This helps you know when to buy, when to sell, when to renovate for profit, or when to release your triplex development to the market for the best price or rent.

4. You can see firsthand what adds value at transaction time.

The advantage:  When you’re renovating or building new, you know where to spend the money to add value and gain the highest price.

5. You’ll understand more about buyer demand – where people increasingly want to live and what dwelling type they want to live in.

The advantage:  You’ll know what will rent and sell fastest.

HOW TO BECOME A SELLING AGENT

As the national real estate licensing system proposed for implementation in December has now been canned, it’s licensing business as usual across each state. property buyer

Despite the false start of the nationalised system, three consistencies already appear to be evident across the nation when it comes to selling agent requirements.

These include: the minimum requirement of a year 10 high school certificate, the age of 18 to practice, and the recommendation by real estate institutes that new selling agents start out as assistants to selling agents, also commonly known as ‘agent representatives’, before they become a selling agent.

What that means is that as an agency representative, they’ll learn all the tricks and traps of the selling agent profession. 

It’s essentially a more glamorous name for an apprentice.

An introductory course of study is usually completed, most can be undertaken online or in class, and generally run for two weeks full-time.

This entitles the selling agent to either represent the licensed agent in transactions, or he or she can undertake a more intense course to register for their own licence.

TASMANIA

Minimum requirement:  A selling agent is referred to as a ‘property consultant’ in Tassie.

Their only legal requirement is to pass an exam with the state’s real estate regulator the Property Agents Board.

To sit for this exam, students are required to attend three weeks of classroom training or distance learning.

Within two weeks of sitting the exam with the Board about 95 per cent of candidates are successful.

After passing the course and securing a job, the candidate’s details are registered at the real estate office where they their first role.

QUEENSLAND

Minimum requirement:  Selling agents must be a ‘suitable person’ as defined under The Property Agents and Motor Dealers Act 2000 (PAMD Act).  People affected by bankruptcy or criminal convictions may not be eligible.

Brisbane city central business district skyline by day

Brisbane city central business district skyline by day

The PAMD Act requires all individuals undertaking the functions of a salesperson or property manager in Queensland to have a registration certificate.

To obtain a registration certificate the individual must complete the registration course, which they have six months to complete from the moment of registration.

They can study from home, at their own time by distance education, or attend a four-day block course in any Queensland region.

Individual must also complete and submit their registration certificate application (a PAMD form 3) to the Office of Fair Trading.

In Queensland, a holder of a registration certificate may undertake the work of a salesperson, property manager or assistant to those roles as an employee within a real estate agency.

This certificate authorises the holder to work across the spectrum of residential real estate, commercial and industrial, business broking and buyer’s agency.

Note: Queensland is the only state where a capped commission percentage exists, but this is likely to change under the Property Occupations Bill 2013, which will deregulate real estate commissions.

Currently, selling agent fees are capped at five per cent of the first $18,000 of the sale price, and 2.5 per cent of the balance of the sale price.

VICTORIA

Minimum requirement:  Agent’s representatives undertake a one-week Agent’s Representative Certificate course at the Real Estate Institute of Victoria or an approved training institution. melbourne

Once successfully completed the individual is eligible to be employed as an agent’s representative provided they haven’t been found guilty of a disqualifying offence such as fraud, dishonesty, violence or drug trafficking, nor have been declared bankrupt in the previous 10 years.

NEW SOUTH WALES

Minimum requirement:  Certificate IV in Property Services (Real Estate) will allow individuals to meet the Agents Regulations Act 2003 requirements to become licensed to transact property.

SOUTH AUSTRALIA

Minimum requirement:  Certificate IV in Property Services (Real Estate) will allow an individual to register with Consumer and Business Services for a real estate licence.

WESTERN AUSTRALIA

Minimum requirement:  The CPP07 Property Services Training course will allow an individual to become licensed.

Individuals must also be a person of good character and repute and a fit and proper person to hold a certificate of registration. perth

NORTHERN TERRITORY 

Minimum requirement:  An accredited short course in real estate or property services needs to be successfully completed.

Selling agents must hold a certificate of registration, be represented by a real estate agent and obtain a National Police Certificate.

AUSTRALIAN CAPITAL TERRITORY

Minimum requirement:  Certificate IV in Property Services (Real Estate) will allow individuals to meet the Agents Regulations Act 2003 requirements to become licensed to transact property.

So now you’ve weighed up the pros and cons of making property transactions your day job.  Still flashing that slick smile?

THE PROS AND CONS

Pros

  • In a good selling market, commissions can be lucrative.market property puzzle sell
  • You don’t need a university degree to become a selling agent. Most licensing courses can be completed within two weeks.
  • The longer you’ve been in the industry the bigger your database of contacts will become, and the more money you could earn.
  • You’re out of the office a lot.
  • The negotiation and people-reading skills gained can help you negotiate better on your own investment properties.
  • You hear about properties before they enter the market. Also, you hear about when new infrastructure, gentrification or developments are proposed for an area often well before anyone else does.
  • Your day-to-day knowledge of the property market and its cycles is far superior to most property investors.
  • You can see firsthand what adds value at transaction time, which means when you’re renovating or building new, you know where to spend the money to add value and gain the highest price.
  • You’ll understand more about buyer demand – where people increasingly want to live and what dwelling type they want to live in. This means you’ll know what will rent and sell fastest, giving you a good advantage as an investor.

Cons

  • Having to tolerate the reputation of a selling agent. Many still joke they’re as dodgy as a used car salesperson.  They’re often labelled as ‘untrustworthy’, though many selling agents believe this stigma is fading.
  • During a slow market, a great income can be more difficult to achieve.  property market
  • Giving up weekends to open houses, conduct auctions, trying to tie up a deal before the infamous Monday morning meeting. Even on the weekday reprieve, the phone is running hot. And breaks are unheard of when agents only 15 or 20 minutes between open homes, to drive there, put the ‘open for inspection’ signboard out, unlock the door, put the brochures out and welcome in the prospective buyers.
  • Evenings are also difficult for agents to shut off. Buyers can’t always get to a property during normal work hours, so evenings are when private inspections often happen. This means the agent can work up until 8pm many nights of the week.
  • Having to smile and remain confident despite any faults the property might have.
  • The personal mobile phone number becomes the advertised contact number. So agents can never really shut off.
  • Limited workers’ rights. If a selling agent isn’t performing to the agreed level, at least to cover their peak cost, they can be sacked with little notice – two weeks in most cases.
  • Dealing with angry and disappointed buyers.
  • A free, no obligation market appraisal can take up a lot of time for little or no return.

This artcile was written by Nicole Navarone and originally published in Australian Property Invetsor Magazine and has been republished with their permission

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from Property UpdateProperty Update https://propertyupdate.com.au/does-becoming-an-agent-help-you-get-ahead-as-a-property-investor/

A glimpse into Wealth Retreat – Part 2

Did you know that your habits can mean the difference between success and failure?

That’s one of the recurring ideas that came through at Wealth Retreat.

In this series of videos I’m sharing my reflections from that event and rich-poorin between sessions I interviewed Tom Corley who co-wrote the book Rich Habits Poor Habits with Michael Yardney.

In this interview, Tom explains the results of his 5 year study of the Rich and Poor, looking at their different habits.

His studies have found that although you are born into wealth or poverty, it is your habits that define you and there is a clear trend with the habits of successful people.

The topic of finance has was moree prominent than ever at Wealth Retreat
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In this video I interviewed Director of Intuitive Finance Andrew Mirams, and discussed what is the difference between a bank or a high street broker and a dedicated Finance Strategist.

With finance being a stumbling block for many, we also touched on the current environment and how it’s playing out.

You may also be interested in watching:

A GLIMPSE INTO WEALTH RETREAT – PART 1

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from Property UpdateProperty Update https://propertyupdate.com.au/a-glimpse-into-wealth-retreat-part-2/

Rich people are luckier

Each one of the 233 millionaires in my five-year study of rich and poor people was lucky. rich-300x169

Fifty-six (24%) were born into it and 177 (76%) created it.

The type of luck those 24% received was random good luck.

The type of luck those 76% received was self-made.

Luck, whether random or self-made, is a common denominator of all wealthy people.

If you want to be rich, you need luck.

While you have no control over the circumstances you are born into, you do have control over the circumstances you manufacture after birth.  

Depending on the study or survey, about 67%-80% of all millionaires are self-made.

They start out either poor or middle class.

That’s a good thing.

Success, when you think about it, really boils down to a game of hide and seek.

Luck does the hiding — you have to do the seeking.

But you must look for luck in the right places.

So where exactly do you look for luck?

Fortunately, success leaves clues.

Luck hides outside your comfort zones.

Successful people are very much like scientists.

They love to experiment.

But in the case of self-made millionaires, they experiment with new things, new ideas, and new people.

Finding luck requires that you step outside your comfort zones.

It requires an open mind; one which is curious and receptive to possibilities.

When you expand your comfort zone you also expand the opportunity for luck to occur.

Luck hides inside positivity.

Opportunities have to be seen in order to be embraced.

Positivity opens the mind to opportunities. success risk wealth

Positivity means having a positive mental outlook.

It is the springboard of all creativity and insight.

Problem solving requires creativity and insight, and self-made millionaire are, by default, problem-solvers.

Their optimistic outlook enables them to see possibilities for solutions.

Positivity also creates a higher level of confidence and an expectation that good things will happen.

Positivity is the fertiliser in which good luck grows.

Luck hides behind courage

Creating luck requires that you take risks.

Taking risk requires courage.

Courage is not the absence of fear, but the pursuit of something while in the throes of it.

Overcoming fear is something you must cultivate as a habit.

Luck hides inside new relationships.

Meeting the right person at the right time, requires that you … meet people.

People do not just drop in your lap and, voilà, luck happens.

You have to go out and find them.

You find them by joining networking groups, by volunteering at non-profits, by taking seminars, at fund-raisers, when you take up tennis, or golf.

You find the right person at the right time by doing new and novel things.

Luck hides inside intuition.

Intuition is the means by which the subconscious communicates with the conscious.

Your subconscious knows all and sees all. mind set rich money lesson think motivational learn teach money

It is constantly taking in sensory data and information that is below the radar of the conscious mind.

As a result, it knows things the conscious mind does not.

It exists to not only help you survive but also to thrive.

You need to listen to your gut.

Those who do find luck.

from Property UpdateProperty Update https://propertyupdate.com.au/rich-people-luckier/

How much is that property worth?

In today’s fast changing property market one of the common questions I’m asked is “How much is that property really worth?” 

Obviously that’s a good question – no property investor or home owner wants to overpay. property investment

For products that are plentiful, transacted often and largely the same as each other, determining market value is really easy.

But purchasing a home is typically not like buying tomatoes at the grocer.

Each property tends to have features that make it unique.

Even two houses, side by side in the same street could be valued differently because of their individual attributes.

To make things even trickier, property is typically not transacted frequently, so it may be hard to find a recent sale of a home similar to the one you’re interested in buying.

There is no “right price 

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Property is unlike most other things that you buy – there are no set prices.

Buyers and sellers must negotiate a price that is acceptable to both of them.

While the asking price is a guide of what the vendor would like to achieve or what the selling agent would like to get, for you the asking price is only a rough indication.

What about fair market value?

The definition of fair market value is usually the price that a willing purchaser is prepared to pay and a willing seller is prepared to accept, given that neither is forced to buy or sell under pressure.

In other words, if you bought a house today at fair market value you should be able to sell it again in a month’s time at the same price.

Don’t get emotional

A house is only worth what a buyer is prepared to pay for it, but value is in the eye of the beholder. stress emotion buying house

It works both ways. Some buyers will fall in love with a home and be prepared to pay more for it than you would expect.

Similarly many sellers have an unrealistic view of what their home is worth.

They tend to remember what they paid for it and how much they spent on improving it.

They may have over-capitalised with expensive renovations or they may just need a higher price so they can buy a better home.

Yet sometimes neighbours say they got more than they actually did and sometimes agents mislead sellers as to what price can be achieved.

Others value their homes according to what they heard neighbours got for their properties.

In reality, none of this really matters because at the end of the day it’s buyers who ultimately determine market value. 

So how do I determine the price? property purchase money

To make sure you don’t overpay – inspect as many comparable homes for sale and see what they actually sell for rather than what the asking price is.

While there are a number of providers that offer on line reports to estimate a property’s value, in general these are inaccurate and can under or over estimate the property’s value by 15%.

For example, these generic reports don’t know if the house has recently been renovated or if the owner has installed a split system air conditioner.

Similarly the report doesn’t know if the value of the property should be downgraded because of termites or a bathroom with water problems from a leaking shower.

My recommendation:research find search property investment location area suburb state market

Employ a proficient buyers’ agent to help you buy your next home or investment.

Sure, being a buyers’ agent makes me biased, but I know the team at Metropole has an understanding of their locals markets in Melbourne, Sydney and Brisbane.

And we have the perspective gained over years in the property markets to understand what factors makes some properties a great investment.

from Property UpdateProperty Update https://propertyupdate.com.au/how-much-is-that-property-worth-2/