4 Things to Consider When Investing Interstate

Many people want a piece of real estate in Australia and for good reason. It can be a great investment if you fully understand what you’re getting yourself into. There are many opportunities to grow your money through investing in real estate. While you’re looking into the state of the industry, you may come across the idea of investing interstate.

Investing interstate is one way to diversify your portfolio and further grow your money. However, this doesn’t mean that it’s only for investors who want to add variety to their investments. Even first-time investors can try it.

If you’re thinking of investing interstate, here are some things to consider:

1. Understand how the market works

As with any investment and regardless of what your financial goals are, it’s essential to know and understand the market. Check property guides and market results to see the state of the economy, demographics in the area, your potential tenants, as well as the rate of population growth.

2. A property manager

What better way to understand interstate investment than to find a property manager who knows the local area. In general, property managers are competitive, which is understandable considering how tough the competition is in real estate in Australia.

3. The local area

If you’re planning to invest in an area, take time to visit it. It may look like you already have all the information you need, but it’s hard to beat firsthand knowledge. By visiting the area, you’ll see if the property is as good as what your research tells you.

4. Be wary about rental guarantees

The cost of a rental guarantee will be added by the vendor into the cost price of the property. If you receive one, you are actually paying the developer for money that they will give back to you as rent.

Be cautious about hidden fees and charges. Read the terms and conditions and ask professional real estate advice.

Do you have other ideas when it comes to investing interstate? Share your real estate tips in the comments section.

Read More →

Effective Ways to Pay Off Your Mortgage Fast

A mortgage is one of the regular expenses that take the lion’s share of the monthly budget in many Australian households. It’s a necessity and sometimes, it takes a long time before you can fully pay for your home. But the good thing is, there are several ways that you can pay off your mortgage sooner. By making some changes, you’ll finish paying it off more quickly.

In this article, you can learn effective ways to pay off your mortgage fast:

  • Make sure that your mortgage repayments are in line with your salary schedule. One way to pay off your mortgage sooner is to align your repayments with your income. In other words, make your repayments every two weeks if your job pays your salary every fortnight. In this way, you can reduce the interest payable and save more money over the duration of your loan.
  • Increase the frequency of your mortgage repayments. Instead of making monthly repayments, consider making them twice a month. Not only will you be able to reduce your home loan term, it will also enable you to get significant savings on interest charges. The additional payments will help you reduce your loan balance sooner and can cut your loan term by up to six years. To illustrate: If you make monthly repayments of $2,000, you would have paid $24,000 by the end of the year. But if you make bi-monthly repayments of $1,000, you would end up with $26,000 (26 fortnights). That’s an additional monthly repayment that will enable you to pay off your mortgage sooner than expected.
  • Check the interest calculations. The interest on your mortgage is calculated using the outstanding balance. If you increase the frequency of your repayments, you can reduce the amount of interest that you need to pay.
  • Evaluate your existing home loan. Over time, it’s better to perform a mortgage check to see if it is still suitable for your requirements. Bear in mind that your mortgage is affected by several factors such as interest rates. It can be that a home loan with a variable interest rate is better than with a fixed rate. If this is the case, you may want to consider re-financing, either with your current lender or a new one.

Do you have other ideas on mortgages and real estate in Australia? Share your real estate advice in the comments section.

Read More →

What is the Best Property Type for Your First Home?

Australia’s house prices tend to rise over time, making real estate a popular investment. There are a lot of exciting options in the real estate market for a first-time buyer. Homes come in different forms, with each having its own benefits and limitations.

Here are some basic options and pointers to help you find the property that will best suit you.

A small home on a subdivided lot

If you prefer a location close to the city, and the size of your home is not your main concern, a side-by-side, front-to-back duplex is for you. This type is typically found on suburban blocks that once had a single house before they were divided into two homes due to the value of the land.

A large house in an outer suburb

If you like a bigger, more modern house, a home in an outer suburb is for you.  The main advantage is that you get more space for your money. Houses in the outer suburbs normally have several bedrooms, multiple bathrooms, and double garages, so there are a lot of internal and external space for you to enjoy.  The disadvantages are that you might have to spend more time on transportation to get to your job in the city, and public transport and local amenities are limited in suburban areas.

A unit in a small block

This is also a great option for home buyers who want to live in the city. There are no costs in maintaining a garden if you live in a small block. There is easy access to facilities and public transport. However, you need to pay body corporate fees, and you also need to share building repair expenses.

An apartment in a high-rise building

The advantage of an apartment in a high-rise block is that it is in the city, so you can save time and money on transportation. This also offers modern fixtures, fittings, and amenities. The downside is, it comes with body corporate fees.

A townhouse or villa unit

If you prefer location and amenities, townhouses or villa units are a good option. Gardens or pools are managed by a strata manager.

Got other ideas on real estate in Australia? Share your insights in the comments section.

Read More →

Simple Tricks to Add Value to Your Home

Real estate in Australia is an ever growing industry. More and more people want to enter the market as they buy their own home or purchase property to be rented out. Investing in real estate involves a great deal of money, and it only makes sense to come up with ways to add value to your home so you can get more out of your investment. But what are the things that you can do?

These tricks are simple enough, you don’t really need special or technical skills to pull them off. When done properly, your real estate investment can be a lot more valuable should you end up selling it.

Make some easy kitchen fixes

A lot of home buyers are drawn to nice kitchens. You can buy new cupboard doors and handles, and taps to update your kitchen. You can also replace the benchtop. Bear in mind, however, that it should work well with the colour and pattern of the kitchen floor.

Replace splashbacks

This alone can bring a huge impact to the overall look of your kitchen. One of the popular types is the glass splashback, though it can be pricey. A cheaper one is acrylic that comes in different colours, so you can easily add a personal touch to the area.

Give rooms some new paint

A good paint job is an inexpensive way to add value to your home, especially if you’re going to do it yourself. You may want to paint the walls one room at a time. It only needs a few hours in between coats. In general, if you start painting the walls in the morning, you’ll be finished with one room at the end of the day. But if your budget permits, hire professionals to do the work for you, especially painting the ceilings which can be a tricky part.

Update the entrance

First impressions last, so make sure that the first thing that people will see in your home looks visually appealing. A fresh paint on the front door can instantly lift the look of the entrance. Clean the surroundings and check if your letterbox and fence, if any, need some quick fixes. Also, make sure that your garden is well-maintained. Remove weeds, and you can add some nice potted plants.

Do you know other tips to add value to your home? Share your real estate advice in the comments section.

Read More →

What is rentvesting and is it a good idea?

Who doesn’t want to have their dream home? Owning a home is a great achievement. However, with the ever increasing prices of real estate in Australia, it has become difficult to enter the market. People who cannot afford to buy their dream home enter the real estate industry through rentvesting.

This is the process of renting a home and investing in property that you can afford. If your dream home is a three-bedroom home in the city centre, the prices obviously are high and you may not be able to afford it as of the moment. With rentvesting, you will rent the property that you want then buy a property in an area where prices are within your budget. You can turn it into investment property which can help you pay your rental payments.

Is rentvesting a good idea? Here are some points to think about:

Your purchasing power doesn’t affect the lifestyle that you want.

Rentvesting enables you to live your preferred lifestyle and at the same time, have an extra income and build your property portfolio.

You can have a property sooner and with a smaller deposit.

Rentvesting allows you to enter the property market sooner, which will help in building equity. Eventually, you can use the equity to buy another property as investment.

Buying an investment property offers tax advantages.

Rentvesting comes with deductible costs such as interest payments, property maintenance, insurance, as well as depreciation. Take note that it is better to seek advice from an accountant so you will better understand the taxation advantages that you can get from your property.

You can make smart decisions when purchasing a property.

Buying a home comes with a lot of emotions since it’s your dream and you already have a picture in mind of the kind of life that you and your family will have when you live in the house. On the other hand, buying an investment property doesn’t come with emotions that you have when buying your dream home. When it comes to the investment property, you think about its potential ROI.

So, is rentvesting a good idea? It really depends on your goals. Bear in mind that this method of entering the real estate industry is not for everyone. Make sure to understand how investing in real estate works and determine if rentvesting will work well for you.

Do you think rentvesting is a good idea? Share your real estate tips in the comments section.

Read More →

More affordable options to enter the property market

Getting into the world of real estate investment obviously costs money, and with the ever increasing demand for houses and properties, you can expect real estate in Australia to become more expensive especially in prime locations. But this does not mean that you cannot go into the real estate industry. There are actually several more affordable options that you may want to look into so you can get started with investing. Here are some of the options to take into account:

1. Family equity loan

In this option, parents can serve as guarantors on a loan and even offer their home as security, while the principal borrower’s name will be on the loan as well as in the title.

2. Buy with other people

This option involves more than one buyer of the property. It can be with family or friends and the loan will be split among them. Bear in mind that banks implement different rules when it comes to lending and joint loans so make sure to study the terms carefully. You can also ask a lawyer to explain things that you’re not sure of. Also, buying property with other people can be risky. It’s essentially a business partnership and challenges may arise later on if one of you wants to sell the property, for instance.

3. Rentvesting

Enter the market sooner with this option that involves renting where you want to live while buying affordable property and putting it up for rent. Since the property is cheaper, you may not need to save a lot for the deposit. The major advantage of this option is that it enables people to live where they want and at the same time, use the investment property to grow their savings.

4. Consider properties in regional or rural areas

In general, homes are more affordable in rural areas compared to those in cities. Of course, it’s a matter of preference but as far as affordability is concerned, this is a good way to enter the real estate industry without shelling out a lot of money for deposit. Just make sure that the property is suitable for your needs and lifestyle.

These are some of the affordable options that you can consider if you want to enter the market and you don’t have enough funds for the investment. Do your research and choose which option works well for you.

Got other tips on investing in real estate investment? Share your real estate advice in the comments section.

Read More →

How to Search for Your Dream Home and Stay within Your Budget

Buying real estate in Australia is a milestone that needs careful consideration. After all, it costs a lot of money, and a lot of factors come into play when investing in real estate. When it comes to your dream home, you obviously look out for various details to ensure that your home has everything you wish for. But before you get caught up with all of these, make sure to keep these guidelines in mind so you can find your dream home while staying within your budget:

Know your budget and stick to it

As with buying any other major purchase, it is always important to determine what you can afford and stick to it.  It is very easy to get carried away, especially when details of your dream home are concerned.  Just think about what you can spend on your dream home and work around that amount.

Identify your needs

Do you wish to move in right away or do some renovations? This is an important factor as it will affect the type of home that you look into.  You can stay within your budget if you will get a house that’s ready for moving in. However, make sure that it meets your dream home requirements.  On the other hand, it will cost more money to buy a home that you want to customise to fit your needs. Take note that if you’re looking at a house and it’s close to being beyond your budget, you won’t have any funds left to renovate it.

Choose the right builder

With so many builders out there, it is wise to do your research before investing in real estate. Look for one that has been in the industry for several years. Have a shortlist of potential builders and check their portfolio. You can also seek advice of family members and friends who have experience in investing in real estate in Australia. It is likewise important to ask about insurance and warranties.  Getting a building permit is usually done by the builder, but confirm it just in case.

Check the neighbourhood

Make sure that the community suits your needs. Check if establishments such as banks, local shops, schools, and restaurants are near your area.  Proximity to major roads and public transportation is also one thing to consider. You can likewise talk to residents so you will have a clear picture of what it’s like to live there.

Got other real estate tips? Share your ideas on investing in real estate in the comments section.

Read More →

Why You Should Pay Attention to Hipsters Before Investing in Real Estate

Real estate in Australia isn’t immune to the trendsetting abilities of hippies and hipsters. They can change the perception of a suburb from ‘dirty, down and low growth’ to ‘Edgy, cool, and with a price heading to the stratosphere’.

Taste are always evolving.

I couldn’t have imaged my grandmother eating anything that was Japanese, and my parents wouldn’t have touch raw fish or seaweed when they were growing up.

But if you were to look in the food court of any suburb shopping centre you’ll see people eating Sushi like it was, well… a burger with fries.

Each generation has its different goals, aspirations and needs.

But, before these changes become fully entrenched it is the hippies and hipsters who adopt them early and forge a path to mainstream acceptance.

Hippies and hipsters are all about not following the crowd, forgoing group approval to live by their personal values.

The trend hippies and hipsters driven change can also be seen in real estate. Every city has a suburb or area which you wouldn’t have dreamed of buying in until they moved in and it became cool and ‘red hot’.

As a generalisation hippies and hipsters don’t get sucked into the race to the suburbs, bigger houses, whiter fences or manicured lawns. They look for areas which are more edgy, expressive, and communal.

In an inner-city area, the difference between a ‘no way’ suburb and ‘uber cool’ is a couple of artesian bakeries, a community garden, bike parking, a yoga studio, a beard specialist barber and an alternative primary school. Redfern in Sydney is one somewhat recent example, Brisbane’s West End another.

Small country communities or beach side towns are also popular due to the ability to live an independent, ‘natural’ life; think Byron Bay, NSW or Healesville, VIC.

Once the trend setters move in and provide or demand services, these areas become quickly gentrify, and property price rise.

Now, this isn’t to say that it is only hippies or hipsters who change the shape of real estate Australia. They typically set up in areas, that have huge potential already.

Nor should you make investments, real estate or otherwise, purely on a single factor.

But before you write off areas based on your personal distaste, consider its individual merits. If the hipsters and hippies are moving in, it might be worth taking another look.

Read More →
Bitnami