What Will the New Financial Year Look Like for Property Markets?

Posted on July 22, 2020July 22, 2020 by jacintaj

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What Will the New Financial Year Look Like for Property Markets?

If ever there was a need for a case study about property market cycles, the past 18 months would pose as a great demonstration. After a soft start to the 2019 calendar year, the stage was set for a very underwhelming FY2020.

Last year, positivity had returned before COVID-19
However, the start of FY20 saw the hangover from the banking royal commission began to lift. We saw lending restrictions began to ease, investor confidence rose, and the RBA started reducing the official cash rate. The combination of these factors saw auction clearance rates shift from the low-40%’s in early 2019 to mid-60% at the beginning of FY20. This shift gained momentum over the second half of 2019 providing an air of optimism for the spring and Christmas period.

Roll-on to 2020 and this optimism became a recovery with auction clearance rates in the high-70%’s and even vendor confidence returned with listings pushing above the 10-year average, for the first time in a long-time.

Positivity had returned to property markets just-in-time for Autumn, but then March 2020 is when COVID-19 brought everything to a shuddering halt. Lockdowns were enforced, open homes cancelled, and vendors began to withdraw properties from the market. When lockdowns lifted, it was slow but buyers were curious and they started to turn-up to opens and book inspections, which in turn resulted in a significant amount of sales transacting.

Buyer demand should remain elevated
So, where we are now? Buyer demand, particularly from first home buyers and occupiers, remains elevated. They are out looking to take advantage of record-low interest rates, and some are out to hunt down a bargain. The real issue is listings, which have been slow to return. This unevenness between demand and supply has seen prices and values hold-up.

Looking ahead, what do we expect for FY21? The biggest unknown remains: COVID. Will the current outbreak cause further restrictions across the country or will markets remain open? The most important question is what will happen to the economy and property markets once government stimulus and bank mortgage deferral measures winddown.

As seen in recent days, we expect banks to continue to support borrowers, as they return to work and business returns to normal. However, not everyone will be able to pay their mortgage, and unemployment is expected to remain elevated.

More properties to come onto the market in spring
Homeowners looking to sell to relocate or “re-size” and those facing mortgagee difficulties will inevitably cause more properties to come onto the market as we head into spring.

On a positive note, we know that with interest rates wat record lows there will be buyers ready, and willing, to purchase these properties as they come onto the market. We are seeing it now, and it will go some way to soak up some of these listings.

DISCLAIMER – The information provided is for guidance and informational purposes only and does not replace independent business, legal and financial advice which we strongly recommend. Whilst the information is considered true and correct at the date of publication, changes in circumstances after the time of publication may impact the accuracy of the information provided. LJ Hooker will not accept responsibility or liability for any reliance on the blog information, including but not limited to, the accuracy, currency or completeness of any information or links.

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2020 RateMyAgent Award Winners Announced

Posted on February 25, 2020March 23, 2020 by jacintaj

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Jane Doogan wins Top Honor for Highland Park in the RateMyAgent 2020 Agent of the Year Awards

RateMyAgent – Australia’s number one reviews, ratings and rankings website for real estate agents – has announced Jane Doogan as the winner of its 2020 Highland Park Award.

The fifth annual awards held in Melbourne’s Metropolis Southbank – and MC’d by Melburnian, media personality and comedian Nick Cody – saw Australia and New Zealand’s top real estate agents gather to celebrate the industry’s brightest stars.

The highly anticipated RateMyAgent Agent of the Year Award s are the only of their kind in the industry and based on customer satisfaction. They acknowledge those who have been the most consistently recommended by local Australia/New Zealand home sellers and landlords.

To win means to have secured the highest satisfaction rating across the country – celebrating and recognising real estate agents and agencies that provide truly excellent client service to home buyers and sellers.

“The Agent of the Year Awards acknowledge agents in our industry who go above and beyond for Aussie and New Zealand homeowners and landlords. With performance-based reviews as a qualifier, receiving an Agent of the Year Award means to have received the highest satisfaction rating across the country – and this is something our winners should be tremendously proud of achieving,” said RateMyAgent CEO and Co-Founder Mark Armstrong.

“We congratulate and celebrate all of the 2020 winners and nominees, and look forward to another exciting year across our industry,” continued Armstrong.

“To be once again recognised as Highland Park’s most recommended agent is quite an achievement” said Jane.

“People trust me with their biggest asset and to know that my clients think so highly of me is very humbling.”

For more information, please visit ratemyagent.com.au.

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LJ Hooker confirms latest charity partner

Posted on September 20, 2019September 20, 2019 by jacintaj

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LJ Hooker confirms latest charity partner

LJ Hooker has announced its third national charity beneficiary will be in aid of disadvantaged women.

The team has declared Share the Dignity as its new charity partner.

The announcement comes off the back of LJ Hooker Foundation Day, the foundation’s anniversary, which marks 91 years since the agency first opened for business in Sydney.

“We’re thrilled to be supporting Share the Dignity who provides vital care and aid to disadvantaged women in communities across Australia. This partnership is well aligned to our LJ Hooker values and relatable to our network which has an equal number of male and female professionals,” said LJ Hooker Foundation spokeswoman Sarah Dickson.

“People want to work for a brand that is contributing to the greater good of society, which creates goodwill and trust. Supporting the LJ Hooker Foundation gives the real estate network greater purpose beyond the day-to-day, while simultaneously providing much-needed funds for those in need.”

Rochelle Courtenay, founder of Share the Dignity, said the support of LJ Hooker and its foundation is immeasurable.

“Share the Dignity is delighted to have been chosen as a national charity partner by the LJ Hooker Foundation. Having this generous support helps us to provide girls and women in need with essential sanitary products, ensuring everyone is afforded the dignity so many of us take for granted,” she said.

LJ Hooker Nerang started collecting goods for women in need in 2018, with Jane Doogan collecting personal items through the office in 2019.

“This is something that is so close to my heart” Jane said

“There are women on the streets that use newspaper or old socks because they simply can’t afford pads or tampons. Sometimes the choice has to be made between eating and sanitary items.”

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Big wins forecast for Queensland

Posted on July 17, 2019July 17, 2019 by jacintaj

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Big wins forecast for Queensland

A massive jump in house prices is forecast for Brisbane over the coming three years, almost double the nearest Australian state capital, with major Queensland cities close behind.

Latest analysis by BIS Oxford Economics has forecast a massive 20 per cent growth in house prices in Brisbane, with demand driven by its relative affordability compared to other capitals and a pick-up in positivity.

Its Residential Property Prospects 2019—2022 has the city’s median house price growing at almost double the speed of the nearest growth capitals Adelaide (11 per cent) and Canberra (10 per cent). In contrast, prices in Sydney (6 per cent) and Melbourne) were set to remain in single digits in terms of percentage growth over the three years.

This as the latest Deloitte Access Economics Business Outlook, out Monday, predicted Queensland would be among the biggest beneficiaries of a major shift in the economy, with stimulus coming out of rising coal prices pushed by Chinese demand, expectations that farmers have a better season coming up, and rising housing demand driven by interstate migration.

BIS Oxford Economics associate director Angie Zigomanis expected Brisbane to be a big winner by the end of 2022, bucking the slow recovering coming out of southern markets.

“The next 12 months we still expect (house price growth) to be fairly weak in Brisbane but moving into 2020 is when it will pick up,” he told The Courier-Mail.

He said Brisbane was shaking off factors that had kept it down including a lack of employment and income growth, plus a big upturn in housing supply particularly in the apartment market.

Deloitte Access Economics partner, Chris Richardson, said Queensland was perfectly positioned to make the most of coming stimulus both nationally and internationally.

“There is more stimulus coming than people realise,” he told The Courier-Mail.

“This is the first time ever that the Reserve Bank is cutting interest rates rapidly, not because the economy is softer, but mainly because it’s changed its mind about what unemployment rate is required to get wages moving faster.

“Because of that change of mind out of RBA, Queensland is getting a stimulus pretty much from everywhere. The world has given Australia a payrise, and coal is very central to what’s happening. It’s not just more money flowing into Australia but also renewed interest in building coal mines in the Galilee Basin.”

“As well, Queensland also gets the full force of national stimulus around interest rates and exchange rates. The drought has ben pretty nasty in Queensland, but broadly we wouldn’t expect the coming farm season to be as awful as the last one.

“Think of that combination and think of Queensland’s economy — there’s farmers and miners getting benefit with the drought less nasty, China pumping out stimulus and then there’s mums and dads with government stimulus and interest rate combinations.”

He said when house prices in Sydney and Melbourne, the past trend was that Brisbane would follow.

“Eventually you get faster population growth in Queensland, and that’s exactly what happening at the moment. It took longer than it usually does but that is very much the story of the moment.”

This article originally appeared on realestate.com.au

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LJ Hooker wins at the REB Women in Real Estate Awards 2019

Posted on July 1, 2019July 3, 2019 by jacintaj

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LJ Hooker wins at the REB Women in Real Estate Awards 2019

LJ Hooker Nerang was crowned Diversity Office of the Year – Regional at the REB Women in Real Estate Awards 2019 in Sydney.

The event recognises Australia’s top female real estate professionals, including agents, property managers, auctioneers, innovators and market leaders, and was attended by more than 500 people.

Emily-Jane Megraw, LJ Hooker’s Officer Manager, accepted the award on behalf of the agency and said it was an honour to be recognised.

“Thank you to REB for this recognition and celebrating the devoted, outstanding women in our industry.

“LJ Hooker Nerang prides itself on it’s diversity, not just in gender but in age, experience and thought. We believe that women in the real estate industry should be commended and appreciated and that’s why at LJ Hooker Nerang we’re sure to support each other’s success while helping manage a healthy work life balance,” said Ms Megraw.

LJ Hooker Nerang Principal Shane Colquhoun said the award is proof of the agency’s passion and commitment to diversity in the workplace.

“We at LJ Hooker Nerang are tremendously proud to be recognised for our diversity, as we foster strong female representation with 82% of our employees being women and across a wide diversity of ages.

“Winning this award, and being finalists in a number of other categories, is testament to the dedication of everyone in our office and our purposeful efforts to serve our community.

“I’d like to thank my team at LJ Hooker Nerang for all their hard work. Without supportive, committed and open-minded staff this award would not be possible,” Mr Colquhoun concluded.

LJ Hooker Nerang award nomination categories:

· Diversity Office of the Year – Regional | LJ Hooker Nerang (Winner)

· Innovator of the Year | Jane Doogan (Finalist)

· Office Administrator of the Year | Jacinta McDonald (Finalist)

· Property Manager of the Year – Regional | Michelle Chilcott (Finalist)

· Wellness Advocate of the Year – Individual | Nicole Hasenkam (Finalist)

· Wellness Advocate of the Year – Business | LJ Hooker Nerang (Finalist)

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What rooms add value to your home?

Posted on May 23, 2019May 23, 2019 by jacintaj

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What rooms add value to your home?

How much could fixing up one room add to your home’s value?

We’ve had a look at some very specific renovations that can add value to your property when the time comes to sell, which can cut down on energy bills and improve the practicality of a home. But what about doing over an entire room? Obviously fixing up a kitchen is a completely different beast from making over the master bedroom, with different costs involved and different amounts added to your bottom line.

So without further delay, let’s see what you should do to some of the key rooms in the home – and if it will put many extra zeroes on your sale price.

Keeping it in the kitchen

Historically, a kitchen renovation is the go-to task to add value to your home. However, it’s also one of the most expensive undertakings. According to a recent Improvenet research, the average cost of a kitchen remodel is a little over $22,000 in Australian dollars. Given that the rule of thumb is you shouldn’t spend more than 5 per cent of the value of your home on renovations, this should be within reach of many home owners.

Moreover, the work that needs doing will vary from home to home. For example, a basic IKEA kitchen setup for small areas can cost as little as a few hundred dollars, if you’re replacing cabinet fronts and splashbacks. Budget full kitchen kits can also be found for less than $5,000.

But for a full do-over, you’re looking at spending at least $10,000 – up to $25,000 for simple kitchens, and up to $75,000 for a true luxury do-over. This includes flooring, walls, countertops, sinks, plumbing, appliances – you name it, it’s covered.

While this might seem extensive, if it’s within your budget it can be very much worth it. According to finder.com.au, depending on your suburb, all costs can be recouped when you sell. Moreover, some vendors like IKEA provide guarantees that last up to 25 years, ensuring peace of mind that it will last.

Make sure it stays with the theme of the home though – an ultra-modern kitchen in an older cottage could ruin the home’s aesthetic and put people off!

Bulking up the bathroom

The same principles as the kitchen apply here – it can be done cheaply, but it depends on how much luxury you want to add. According to HGTV, it’s possible to renovate a bathroom for $100 per square metre. For small areas that can mean less than $5,000 without heavy customisation.

Brian Johnson from Collaborative Design Architects also told HGTV that it’s important to add a 30 per cent allowance to your budget, as sometimes things go awry, and costs can blow out. Adding a new toilet, bath or shower can make this an expensive task, numbering in the tens of thousands of dollars.

And as for returns? Gary Caulfield from Construction Cost Consultants told Westpac NZ that bathrooms can give you a return of up to $1.50 for every dollar spent on it. Gauge the suburb and likely buyers you will be getting – do they want luxury or practicality? Working this out with an agent and a professional remodeler can always be a good idea.

Adding a new bedroom

Found yourself in the enviable position of having two lounges, or perhaps a basement or attic that could be converted into a new bedroom? You might just have hit a goldmine. Mr Caulfield also told Westpac that you can double your return when you turn a three bedroom home into a four bedroom one.

But what about the cost? In a recent Domain article, it was estimated that adding a 20 square metre bedroom would cost anywhere between $50,000 and $70,000. This will be significantly less if you already have space in your house – Graeme Bell from GDB architecture converted a loft into a room for a mere $10,000!

You’re unlikely to get this cheap a renovation going unless you are an architect yourself, but it shows how it can be done on a small budget. Given the rising real estate prices in many of our cities, you could be in for significant profits too.

According to Real Estate Institute of Victoria figures, four bedroom homes in certain suburbs were the largest capital gains earners in Melbourne at the end of last year. Making your home join this category through renovation could be profitable indeed!

Don’t go overboard

Crucially though, you have to keep a cool head. Engage professionals for quotes, and get a set budget from several different firms – if they vary wildly, you need to be careful you’re not getting ripped off. On top of this, make it comfortable! If you don’t enjoy using these rooms while you live there, how can you be sure potential buyers will?

So no garish colours or experimental designs – keep it beautiful and functional for solid value-adding.

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Finalists Announced for the Women in in Real Estate Awards 2019.

Posted on May 9, 2019May 9, 2019 by jacintaj

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Finalists
Announced

Jane Doogan has been shortlisted for the Women in in Real Estate Awards 2019.

LJ Hooker Nerang announces that Jane Doogan has been named in Real Estate Business’ Women in Real Estate Awards list of honourees for 2019 in the Innovator of the Year category.

The Women in Real Estate Awards, the first national awards program to recognise the contribution of women in real estate, is dedicated to recognising excellence among the industry’s top female professionals and companies that promote gender diversity and a commitment to the progression of women.

The finalist list, which was announced on Thursday, 09 May, features over 180 high-achieving real estate professionals across 27 categories.

REB editor Tim Neary said that the REB Women in Real Estate Awards is designed to show REB’s support for the women in Australian real estate.
“[It is] a necessary new initiative to celebrate and recognise the female leaders, role models and future champions of the industry and to join the campaign for a more gender-balanced world,” Mr Neary said.

“The awards provide a platform for women in the industry to showcase their talents. It is a great way to recognise the industry’s high-performance female agents, property managers, BDMs and businesses.”

Jane said she was humbled by the nomination.
“Over the past 30 years the real estate industry has changed substantially,” said Jane.

“Real estate is an exciting industry that constantly evolves; and as a salesperson I need to evolve too.”

The winners will be announced at a five-star gala dinner on 27 June at the Four Seasons Hotel Sydney.

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Federal budget 2019/20 and impact on property

Posted on April 29, 2019April 29, 2019 by jacintaj

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2019/2020 Budget

Federal budget 2019/20 and impact on property

Delivered in the shadow of an election, the 2019/20 federal budget was always going offer more sweeteners than tough decisions. This year’s budget headlines ‘a return to surplus’, while major personal tax cuts and large infrastructure projects make up the policy position of the government moving forward.

However, given the new measures outlined will not be debated or legislated before the federal election campaign next month, the biggest question is how relevant is this budget to Australians?

Property market affects

There was no announcements, changes or incentives that will directly affect homeowners, real estate investors or the property industry in general. That said, personal and small business tax cuts will assist with cost of living pressures, consumer spending and businesses to invest.

Indirectly, major road and rail infrastructure projects, hospital upgrades and drought assistance funding will provide significant uplift to regional towns and communities. This will help support businesses and jobs in these areas which will in-turn strengthen local economies.

The bottom line – back in surplus (next year)

After more than a decade, the federal budget is forecast to finally returned to surplus in the coming financial year. A budget surplus of $7.1 billion is expected for 2019/20 rising to surpluses of $11 billion and $17.8 billion in 2020/21 and 2021/22 respectively. The economic indicators contained in the budget provide a positive snapshot of the Australian economy with the unemployment rate expected to remain at 5% and GDP growth of 2.75% over the next two financial year.

Personal tax cuts brought forward

Similar to last year, the centre piece of this year’s budget is a restructuring of the personal income tax thresholds, although this will not occur until 2024/25. That said, an immediate lifting of the low-to-middle income tax offset (LMITO) will help households this year, providing a tax reduction in 2018/19 FY of up to $1,080 for singles and $2,160 for dual income families.

Small businesses have double win

A budget measure which will take effect immediately is an increase in the small business instant asset write-off threshold, which will be lifted to $30,000 and expanded to include businesses with a turnover of $50 million. In addition, businesses with a turnover of less than $50 million will have their tax rate lowered to 25% by 2021/22.

Budget surplus of $7.1b expected in 2019/20, rising to $17.8b in 2021/22
The low-to-middle income tax offset is to be lifted immediately providing a tax relief of up to $1,080 for singles and $2,160 for households
Reduction of the 32.5% personal tax bracket to 30% by 2024/25
The small business instant asset write-off threshold will be lifted to $30,000 for businesses with a turnover of up to $50 million
$100 billion infrastructure spending over 10 years, including a $2.2 billion new road safety package
$2 billion for a fast rail line from Geelong to Melbourne and the establishment of the National Faster Rail Agency

Infrastructure

New infrastructure helps reduce commute times, increases productivity, boosts local employment opportunities and makes outer-ring suburbs more accessible and attractive. Positively, spending on infrastructure will total $100 billion over ten years with the 2019/20 Federal Budget focusing on a number of fast rail projects, road safety projects and highway upgrades with the biggest beneficiary being regional Australia.

Fast rail

$2 billion has been allocated to help deliver fast rail from Melbourne to Geelong
A new $14.5 million National Faster Rail Agency will be established to undertake business cases and deliver projects across the country. These include Sydney to Wollongong, Sydney to Parkes, Melbourne to Albury Wodonga, Melbourne to Traralgon, Brisbane to the Gold Coast, Sydney to Newcastle, Melbourne to Greater Shepparton, and Brisbane to Sunshine Coast

Major road

$2.2 billion for a Road Safety Package which include $1.1 billion for maintenance and repairs, $550 million funding for the Black Spots Program and $571 million for bridge renewals and safety including heavy vehicles
An increase in the Urban Congestion Fund to $4 billion to target congestion in some of the worst affected urban areas. This includes $500 million to establish the Commuter Car Park Fund which will allow more people to park
Roads of Strategic Importance funding has been increased by $1 billion to $4.5 billion

Major projects by State

NSW

$3.5 billion for the first stage of the Western Sydney North South Rail Link
$1.6 billion for the M1 Pacific Motorway Extension to Raymond Terrace
$500 million for the Princess Highway upgrade
$405 million in funding for the M12 Motorway

VIC

$1.1 billion for upgrades to south eastern and northern suburban roads in Melbourne
$700 million for Stages 2 and 3 of the South Geelong to Waurn Ponds Rail Upgrade
$360 million for the Western Highway final stage duplication from Ararat to Stawell
$300 million for sealing roads in the Dandenong Ranges and surrounding regions
$208 million for Stage 1 of the Shepparton Bypass on the Goulburn Valley Highway

QLD

$800 million for the Gateway Motorway extension from Bracken Ridge to Pine River
$500 million for the M1 Upgrade program, including Daisy Hill to the Logan Motorway
$320 million for Warrego Highway upgrades between Ipswich and Toowoomba
$254 million for the Mt Isa to Rockhampton corridor
$200 million for the Tennant Creek to Townsville corridor

WA

$348.5 million for Tonkin Highway upgrades
$207.5 million for the Oats Street, Welshpool Road and Mint Street Level Crossing Removals
$140 million for the Albany Ring Road
Additional $121.6 million for the Bunbury Outer Ring Road
$115 million for the upgrade of the Fremantle Traffic Bridge
$248 million for the Karratha to Tom Price corridor

SA

$1.5 billion for the North-South corridor
$259.8 million for a South Australian Rural Roads Package, including:
$115.5 million for the Torrens Road Level Crossing
$100 million for the Port Augusta to Perth corridor

ACT

$30 million for the Kings Highway corridor
$20 million for the duplication of William Slim Drive, Belconnen

NT

$162.3 million for the Alice Springs to Darwin corridor
$160 million for the Alice Springs to Halls Creek corridor

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Steps to buying real estate

Posted on March 26, 2019March 26, 2019 by jacintaj

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Steps to buying real estate

Buying a home in many parts of Australia can be a competitive process. Many buyers are often competing for the same property, not to mention the rise of property buyers who are experts at buying homes. Understanding the process is vital and may mean the difference between being the successful owner of the property or missing out to someone else more experienced.

Here is a look at the steps involved in buying, the different ways to buy, where to search for a property and understanding contracts and the settlement process.

Different ways to buy a property in Australia

There are 4 primary ways you can buy real estate in Australia and depending on where you are looking to buy often determines the method.

Private treaty

A standard residential property transaction is known as a Private Treaty sale. This is when the vendor, or home owner sets the price they would like to sell their property for and their real estate agent negotiates individually with prospective buyers to achieve a sale as close to this price as possible.

Buying at auction

An auction is a public sale conducted by a licensed auctioneer and are governed by strict rules. There is a reserve price, which is essentially the minimum the home will sell for – if bids surpass the reserve and you are the highest bidder, you have to sign the contract right there and then.

Buying by tender

Buying property by tender is a process wherein you submit a single offer, usually accompanied by a 5 or 10 per cent deposit, and it is accepted or rejected by the vendor.

Buying off the plan

When you buy property off the plan, you are paying for something that hasn’t been built yet. The home can end up slightly different from what you were told. However, it does offer you a lower price point than many other properties.

How to work out your budget

By working out a budget, you will able to track how much money you have coming in, where how it is being spent and where you may need to cut back to help save for a deposit or allocate towards your home loan repayments. Essentially, it should paint a pretty clear picture of what you can afford to buy.

When doing a budget, it is best worked out on a monthly basis by starting with your income after tax then any share dividends, term deposits or any other forms of income you may receive.

Next work out your monthly expenses, which should include things like food and entertainment, car expenses, health and well being, clothing and utilities, credit card repayments, personal loans, school fees, holidays etc. It is easier to calculate your monthly expenditure if you divide it into fixed and variable expenses. Fixed expenses are those that stay more or less the same every month. It comprises of your monthly debt repayments (such as, home loan payments and credit cards etc.) along with your other fixed day-to-day expenditure. Variable expenses are those that vary from one month to another. It includes your grocery bills, medical bills along with the money you spend in entertainment. This is an important category that requires careful monitoring so that you can prioritise and reduce your expenses if necessary.

Once tallied up in a spreadsheet, you should have a pretty clear picture of your spending habits and financial position. Make sure you are completely honest, it is risky to over stretch yourself when it comes to borrowing money, especially if you are not willing to cut out a few luxuries you may have become accustomed to.

If your income is looking healthy but you have a few credit cards that need paying off or a personal loan, it may be a good time to consolidate your debts, which can save you a fortune in interest. Speak to an LJ Hooker Home Loans Specialist, your bank, home loan broker or financial advisor about consolidating these debts with your home loan. Any existing debt you have is likely to reduce the amount of money you can borrow to buy your new home, however you will save money on interest repayments.

Typically, financial advisors and institutions will recommend that your home loan repayments do not exceed 30 percent of your before-tax income. Check out LJ Hooker’s borrowing calculator to get an idea as to how much you will be able to borrow. LJ Hooker’s How Much Can I Borrow calculator is another great way to see what your repayments will be depending on the amount borrowed.

Lifestyle factors to consider when doing a budget

A good budget is made to last throughout the years. It has to be flexible as your circumstances and spending changes over time so it is wise to review your budget periodically. Monitoring it every month and perhaps at the start of each new financial year is the best way to make alterations where necessary and ensure you stay on track.

On paper you might be entitled to borrow a certain amount of money, however it is important to consider the future and any changing circumstances which may affect your ability to service your home loan. Living in your dream home will not make you happy if you cannot afford to pay for it.

It is a good idea to plan for the unexpected by having a savings fund as part of your budget expenses. Ideally, this should be an automatic contribution you make each month. Make sure the funds are accumulating in a high interest bearing account.

It is important to think about what the years ahead may hold and how much they will impact on your financial position, which in turn may affect your ability to service your home loan. Retirement, job stability, career change or the hopes of starting a family are just some of the factors that can have a substantial impact on your financial position. Forward planning can lessen the impact the loss of income or extra expenses will have on your home loan commitments.

Where to look for a property

Research

It is important that you spend time researching the area you are looking at buying in. Here is a short list of resources that will help you:

LJ Hooker Local Market report for a neighbourhood snapshot of the property market contact your Local LJ Hooker office
Australian Property Monitors and CoreLogic RP Data are excellent online providers of property data and information.
Websites like domain.com.au, realestate.com.au and agent sites like ljhooker.com.au will show you what is on the market.

From there, you can settle on what kind of property to buy – existing homes, off-the-plan units, apartments or houses, or perhaps something else altogether. The Department of Housing’s A-Z of Buying is also a useful guide.

Where to Look for Properties

As for the actual property search, contacting your local LJ Hooker real estate agent is a great place to start. They know the local market intimately and would love to help you find your dream home.

As well as the sites like ljhooker.com.au, realestate.com.au and Domain.com.au, local and state newspapers can be very useful for finding more information.

Importance of inspections

Make sure you spend time thoroughly inspecting the property. It is also recommended to have a pre-purchase building / pest inspection on all properties you are serious about buying as it can save you thousands in the long run. To help you we have created inspection checklists you can download. Get our Apartment Inspection Checklist here and our Open House Inspection checklist here.

The buying process

Negotiating by Private Treaty

If you have found a property you love and want to make an offer. Make sure you have carefully considered how much you are willing to pay, how much you can afford, whether you go in with your highest price or prefer to go in low.

All offers and counter offers must be made in writing and signed by you. The agent is legally obliged to pass on all offers to the vendor as soon as possible. The seller then decides whether or not to accept or reject the offer. In many cases, the sale price is negotiated until both parties agree to a final price. If your offer is accepted you have a five day cooling off period during which you can withdraw from the sale.

Auction

Auctions are governed by strict guidelines and vary in each state in territory. In most cases to participate you must register with the vendor’s agent and you will be given a bidders number. The auctioneer oversees the process and all bids from potential buyers are recorded. Before the auction commences the seller will normally nominate a reserve price and if the bidding continues beyond the reserve the property is sold at the fall of the hammer.

The seller is also permitted to make one bid called a vendor bid which the auctioneer will announce. If you are the highest bidder, you have to sign the contract of sale right there and then and pay your deposit (normally about 10 per cent). Also be aware, there is no cooling off period.

Pre-Contract

Before you buy a property it is very important that you review the contract in conjunction with your solicitor and if need be other experts such as your financial advisor.

The pre-contract stage is an important time to review the purchase and carry out investigations including searches into the property, this is important to ensure you are actually buying the property you believe you are. The search will also highlight if there are any issues with the property and any restrictions on usage that may impact the value of the property or limit what you want to do with it. Understanding your rights or liabilities you have under the contract is very important and all part of this stage.

This is the time to negotiate the elements in the contract such as price, settlement date, inclusions, deposit etc.

Contract Signing/Exchange

If you are satisfied with your pre contract investigations, have obtained expert advice from your solicitor, and have negotiated a deal with conditions that you are happy with, then you can go ahead and sign the contract documents.

Contract Conditions

If the contract is subject to any conditions, you need to ensure they are satisfied by the date agreed. This may include work that the seller needs to do by settlement date or ensuring your finance is approved and in order by set dates in the contract. Making sure each condition is delivered by the due date will help ensure the contacts can be exchanged on date specified in the contract.

Pre-Settlement

Before the settlement date approaches, you and your solicitor should be preparing everything for the big day. This includes ensuring the required loan money will be available from the bank on the agreed day, signing any bank loan documentation. Your solicitor will also ensure the transfer documentation is in order, that any other documentation for the transaction is ready (ie. lease documents), and that all parties have agreed upon arrangements for settlement (ie. time and place).

Settlement of the sale

Usually 6 weeks after the contracts were exchanged, if everything has progressed as planned and all conditions in the contract have been you should be ready to settle the sale. This is essentially when your solicitor (or your bank) will hand over the money to the seller in exchange for the transfer documents to the property. If you get to this stage – congratulations a you have just bought a property.

For any further questions or to find out how you can get into the Australian property market, contact Jane Doogan on 0413 872 972

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Gold Coast Agency LJ Hooker Nerang takes home 2 of REIQ’s top gongs

Posted on March 22, 2019March 22, 2019 by jacintaj

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HIGHLAND PARK | NERANG | CARRARA | GOLD COAST

LJ Hooker Nerang takes home 2 of REIQ’s top gongs

The leading LJ Hooker agency on the Gold Coast has taken home not one, but two major awards at REIQs annual event.

LJ Hooker Nerang were named Large Agency of the Year as well as joint winners of the Innovation Award – a category that celebrates the agency that provides customers and staff with cutting process and tools to create real estate solutions.

Principal Shane Colquhoun has credited team culture as the driver for his office’s success and has spent the last decade fine-tuning a multi-faceted environment where real estate specialists were able to achieve their best.

“You’ve got to give the team the reason to come into work,” said Mr Colquhoun. “If you don’t, they’ll either be unproductive or leave. “There’s a lot of elements you have to juggle, including mentoring, creating departmental structures, tech and support to optimise dollar-productive activities and events that bring the office together and engages them with the community, as well.”

“We’ve now grown to 45 staff across sales, property management, customer service and in-house marketing. But the real secret to our success has been the fact we’ve retained around half of our staff members who have been with LJ Hooker Nerang for more than five years and 10 staff members celebrating over 10 years which I think is a real accomplishment in a high-turnover industry.”

Mr Colquhoun also said the fruits of a major 2017 investment – a purpose built super-office – had been realised for the agency.

“We invested $5 million into creating a purpose-built office across 1,000 sqm. It allows for our various departments to work collaboratively, allows us to host in-room auctions, provides break-out meeting rooms for engagements with clients and offers a flow and layout that is comfortable and productive to work in.

Despite digital enhancement in the industry, Mr Colquhoun said the role and importance of the real estate office had not diminished.

“We know that technology and real estate work hand in hand; and it’s great that real estate agents have access to a wide range of different platforms. The difference is that we utilise that technology to do what we do best, and that’s talk to people.”

LJ Hooker network Chief Graeme Hyde congratulated the Nerang team on the accolade.

“LJ Hooker Nerang have been a dominant force on the Gold Coast for many years, providing customers service that is without peer in their marketplace,” he said.

“They’re worthy recipients of the REIQ’s top honour.”

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