Some Useful information to a Residential Property Seller and Buyer

Many people who are thinking of selling their home really do not comprehend the selling process that is involved. It can be very daunting and stressful to the seller once you have decided to sell your home. Be warned!! I hear it so often, when I was selling residential property in Queensland and now down on Phillip Island,  that the sellers rely so much on the advice from the local real estate agent. The most important advice is what price should you list your home at? When you do put your home on the market the most disappointing part of selling is how long your home is on the market for. When your home sells quickly you are so pleased, however the longer you have your home on the market  the more stressful it becomes, because you are frustrated your home has not sold and also other factors such as having to  keep your home clean and tidy and the outside neat and the grass mown for open homes and inspections. Homes can sit on the market for a long time and the main reason comes down to price and when you first listed your home the price could have been inflated!  Or the home sells for a lot more than advertised and this is disappointing to the buyer. The buyers know so much about homes they are interested in purchasing because they do all their research on the internet and will only make an offer if the price is close to their research.  This is why auctions are good because properties sell at the current market value. I will talk about this in another Di’s Corner Chat.

Interestingly, the State Government has introduced on May 1 2017, changes to the Estate Agents 1980 and this will strengthen laws against underquoting in Victoria. This is all about the selling price of the property. This is very relevant to the seller and buyer of residential property in Victoria. Under the new law, all estate agents and agents representatives selling residential property in Victoria are required to:
1) set a reasonable estimated selling price :
2) consider the 3 most comparable property sales to the property for sale when setting their estimated selling price :
3) prepare a Statement of  Information, in the approved form, for prospective buyers that includes the indicative selling price for the property for sale, the details of the 3 most comparable property sales and the  median suburb price :
4) not use qualifying words or symbols to describe the advertised price for a property for sale (if a price is included in an advertisement) and
5) update advertised prices if the estimate selling price is revised.

N:B: If the property for sale is in the Melbourne metropolitan area, the comparable property must be within 2 kilometres and have been sold within the last 6 months. If the property for sale is outside the Melbourne metropolitan area, the comparable property must be within 5 kilometres and have been sold within the last 18 months.

For more information read my blog on www.dianneray.com and  from the Consumer Affairs website.  www.consumer.vic.gov.au/underquoting

It is so important that you the seller understand this and make sure you do receive three comparable properties before you decide to list your home at a price that is relevant and keep an eye out on the market in your area.

I have my new quarterly Market Report available. This is on my website and being delivered to homes in San Remo, Newhaven, Cape Woolamai and Rhyll in the next week or so. If you would like a copy please contact me on my mobile or by email to receive a copy.

Please contact Dianne on 5956 6837 or 0408 034 080 for your real estate needs.

E: dianne@diannerayrealty.com.au
www.diannerayrealty.com.au / www.holidayhomesphillipisland.com.au

Holiday Rental Management on Phillip Island

Holiday Rental Management

Are you happy with your holiday rental property management?

Are you thinking of turning your home into a holiday rental?

Beach Holiday Homes Phillip Island offers a professional and personal care holiday rental management service

Benefits to you the owner:

It is well worth considering when you have a holiday home sitting without being used often. Some extra income for you.

Contact Dianne on 0408 034 080 www.diannerayrealty.com.au  www.holidayyhomesphillipisland.com.au 

Are you thinking of buying or selling a holiday investment home?

When I returned to Phillip Island about twelve months ago, I noticed homes for sale have been on the market for a long time. My aim in real estate was to be able to decrease the number of days on market. You will have noticed,  properties that have been on the market for quite some time have sold. This is good news for the seller or the home owner who is contemplating selling. Of course with e sun out, warmer days and summer approaching this entices people to consider purchasing a holiday home.

You may find below some interesting real estate statistics  – After years of doing it tough following the global financial crisis, holiday homes are starting to pick up again in value, according to property data firm CoreLogic RP Data. This is good news for sellers on Phillip Island.

Holiday homes are usually seen as a discretionary asset so in bad economic times prices slump.

“From 2008 all the way to 2013-14 most of these markets were tracking back in value, but now we’ve been seeing for at least the last year that demand is coming back,” CoreLogic head researcher Tim Lawless said.

A recovery in people’s personal wealth, healthier share portfolio’s and substantial rise in Melbourne and Sydney property prices were prompting purchasers to splash out on a beach home, he said.

Property within easy commuting distance from big cities was the prime target.

The latest housing sentiment survey by CoreLogic & TEG Rewards concluded that almost 70% of Australians  think now is a good time to be buying a dwelling,  despite dwelling values moving out of reach for many as the housing market broadly approaches four and half years of growth.

CoreLogic Head of Research Tim Lawless said, “Perceptions around selling a home have weakened over the past twelve months which is likely attributable to slower housing market conditions across many markets.

The CoreLogic-TEG Rewards housing market sentiment survey also explored views on which direction dwelling values and rental rates were likely to head over the next twelve months.  The majority of survey respondents are expecting dwelling values to remain steady over the next twelve months, with Tasmanians the most optimistic about the direction of value growth over the next twelve months.

Hope you have found this interesting information. I will continue with more information about selling your property in future Di’s Corner Chat. Information in this article has been sourced from Corelogic.

Please contact Dianne for your real estate needs.
Contact her on 5952 5480 or 0408 034 080
http://www.diannerayrealty.com.au

Buying A Holiday Home

Buying a Holiday Home… Is it worth it?

Longing for a sea change or tree change? It pays to do your research

Ever wished you could own a little slice of your favourite holiday paradise and make money as well? We asked David Rankin, award winning bank manager and founder of sort my money (sortmymoney.com.au) about the pros and cons of investing in a holiday home…

Use your head, not your heart

The idea of beach swims every morning or long country walks sounds like heaven, but if you’re considering buying a holiday house, ask yourself if you can truly finance it. ‘Any investment decision should be made by the head, not the heart,’ David says. ‘It should also be made in the knowledge that no investment is guaranteed to succeed. You budget should allow you to absorb the costs of potential failure, but to plan for success.’

Will you make money if you rent it out on Stayz or Airbnb?

These services offer a good opportunity to make some cash, especially during holiday periods, but you’ll also need to account for the quieter periods. David recommends doing detailed cash-flow forecasting. ‘Forecasting builds in busy rental times and vacant periods according to the seasonal fluctuations of the area. It is a must,’ he says. ‘Once you have this forecasting in place, tighten the screws a notch – by reducing income expectations over time – to see If your projected figures still stack up.’

Consider your ongoing costs

David advises potential investors to consider the ongoing expenses of council and water rates, real estate fees if you are renting it out, emergency maintenance at a time when the house is occupied by holiday tenants (keep in mind this can be most costly In less populated areas), as well as property insurance and ongoing maintenance such as gardening and cleaning. ‘you also need to consider higher default interest rates for investment properties, due to rules that were brought in by the APRA, the bank regulator, at the end of 2014, if you borrow to purchase a property,’ David says. ‘Constant access to sufficient spare cash is therefore a necessity.’

Do your research

Check out domain.com.au or realestate.com.au to find out what the capital growth looks like for areas you’re interested in, and go and stay there to get to know all the streets. ‘It’s a good idea to hire a holiday house at least once before committing to purchase one,’ David says. ‘You might end up finding that one week a year manages to scratch the holiday home itch for you. And if is doesn’t, it’s a chance to experience a holiday home from the tenants point of view – an invaluable experience for the future if you do decide to invest.’

Referenced from New Idea Magazine

David Rankin, founder of ‘Sort My Money’

Dianne Ray Realty’s Market Report for Phillip Island & San Remo

MARKET REPORT SEP 2016 ISSUE 3

Source: http://online.flipbuilder.com/oezn/yzig/

Hope you enjoy reading this report on the property market.