Tag: moving house

Steps to buying real estate

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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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    End of Summer Checklist

    Posted on by jacintaj

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    HIGHLAND PARK | NERANG | CARRARA | GOLD COAST

    End of Summer Checklist

    Preparing for the Season Change

    The sun’s starting to set earlier, doonas are coming back onto the bed, you’ll even occasionally have to sleep with the window closed – that’s right, unfortunately summer is starting to draw to a close. That’s going to be exciting news for many of us though, as autumn can bring some incredible moments of undisturbed golden calm and beauty.

    Evergreen trees start to stand fresh, tall and proud, while other lawns are covered in a golden blanket of leaves that almost acts like an echo of the shining sun. Before you get right into the swing of autumn though, you should make sure your house is ready!

    The weather will change, and the sun may have taken its toll on your property, but let’s look at what you can do to keep your home looking smart as we head into March.

    1. Check your Fire Alarms

    As it begins to get colder, we’ll all start using fireplaces and heaters. With great comfort comes great responsibility, and that’s why you should make sure the smoke alarms in your house are functioning. The Victorian Metropolitan Fire Brigade recommends replacing the 9 volt battery in your smoke alarms every year when daylight savings ends – that’s the first Sunday of April for those in the states that don’t take part! Also, keep in mind that houses built after 1997 need to have fire alarms connected to 240 volt power mains.

    2. Check for Leaks Inside and Out

    You always want the home to be nice and dry for autumn and winter, so now’s the time to check up on all of your windows and doors. Seek out any leaks, and re-seal the gaps! That way you’ll stop any invasive draughts, as well as preventing water leakage when the weather inevitably comes to rain on your parade.

    Don’t forget to inspect all your outdoor taps  as well and if you have one, your outside shower, for any leaks.  These often have a slow drip which can add significantly to your water bill. Fix these as required.

    3. Tidy the Front of your Home

    If you are thinking about selling later in the year, the end of summer can be a great time for beautification works on the facade of your home. Even if you don’t sell over winter, maximising that kerb appeal will make your home catch the eye of anyone nearby. A fresh coat of paint, removing the clutter and maybe getting some autumn-friendly flowers arranged in your front yard or in pots can be just the touch you need.

    4. Decluter the Gutter

    This one’s a bit fiddly but it has to be done! Getting up high with a ladder and ensuring your gutters are clean, clear and strong is vital. They’ll be seeing a lot more action over winter so you need to make sure they can hold up to rainwater and foliage.

    Keeping those leaks from before in mind, it’s worth checking the roof for any cracking, loose tiles or similar damage as well.

    5. Clean Out Your Vents

    If you have air conditioning or other ventilation systems in your home, there’s every chance that bacteria and grime have built up over summer. The humidity forms a fertile breeding ground for bacteria, so going through these systems with appropriate cleaners is a great move before you shut them off.

    Think about dehumidifying the home as well! Getting most of the moisture out of the house is great preparation for autumn and winter. Keeping homes dry is a great way to help protect against pesky winter colds in advance.   Clean out dryer vents and hoses as well, and your dryer will work more efficiently.

    6. Pet Care

    Pets are like us, they like clean beds to sleep on so now is the time to clean and sanitize their bedding and living spaces both indoors and out.  Wash and dry their bedding and ensure they have a warm place to settle down for the night, away from draughts and rain that will come with the season change.

    7. Clean Out the Kitchen

    Don’t worry, we aren’t suggesting you need to clean out each cupboard, but rather focus on some of the less attractive cleaning tasks…..cleaning the garbage bins!  Rinse out the kitchen bin and any recycle containers with warm soapy water.  Add a splash of disinfectant for a fresh smell and to kill any lurking bacteria. 

    Wipe out under the sink and organize all your cleaning equipment.  A tidy space will make you feel super organized!

    8. Organise Summer Gear

    Start to collect all those summer toys that the kids have been playing with outside over the last few months and give them a good clean with soap and water.  Make sure you throw out, or recycle any broken toys.

    Before you pack away your beach umbrella and towels check their condition.  Is the umbrella still working, are the beach towels badly frayed?  Depending on their condition consider throwing them out and take advantage of the any end of season sales to restock your summer necessities – ready for the end of the year.

    9. Sort Through Your Wardrobes

    As summer comes to an end, spend an hour or so going through your clothes.  If you haven’t worn some of your clothes or accessories all summer and they don’t have any sentimental value, consider donating them to charity or selling them on consignment or on eBay. 

    Culling your summer wardrobe now is easier as you’ll know what you have worn over the last few months and won’t get carried away thinking oh I might want to wear that …..But never do.  The other benefit of clearing space is to allow for any new autumn purchases.

    10. Inspect the Roof

    Now is the time to check your roof for broken tiles, worn out seals around vent pipes and damage to chimneys.  Finding and fixing these before the weather changes is much easier.  This can be a tricky job and certainly one that may be more suited to a professional.

    11. Clean the Laundry

    The laundry is one of the most used rooms in the home, but is often over looked when it comes to cleaning.  By spending an hour tidying it up thought will help make doing the chores all that more pleasant. 

    Clean out the dryer vents of any lint, remove any items around the edges of your dryer as it can prohibit ventilation and can be dangerous.  Wipe down all surfaces, window sills, tops of washing machines and around the buttons where the washing powder may have fallen.  Mop  the floor and throw or put away any items that may have accumulated in the laundry or in my case things I have found in my kids pockets like handballs, toys, pencil…you name it

    Are you missing anything that would make doing laundry easier? Consider adding a surface for folding clothes, better lighting, a rolling laundry basket with dividers or a garment rack.

    This checklist isn’t just for rounding out the summer, it’s helpful preparation for the seasons ahead. Keeping your home warm and dry will make the middle of the year much easier and relaxing. You’ll be able to curl up in front of the fire and not have to worry about certain bits of maintenance at all! You can thank us later on.


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      Goodbye, 5 Venn Court, Mount Nathan

      Posted on by jacintaj

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      HIGHLAND PARK | NERANG | CARRARA | GOLD COAST

      Goodbye, 5 Venn Court

      5 Venn Court, Mount Nathan will soon be home to a new family.

      I went to see my seller Justin before he moved on to his beautiful new home.

       


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        Preparing Kids and Pets to Move House

        Posted on by jacintaj

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        HIGHLAND PARK | NERANG | CARRARA | GOLD COAST

        Preparing Kids and Pets to Move House

        Moving can be one of the biggest stresses when buying or selling, but it’s not just about the adults in the family.

        Getting ready to move your kids

        Children can become quite upset when moving house – whether it’s the unfamiliar surroundings or perhaps leaving friends behind.

        As a parent, there are number of steps you can take to make sure your child is happy during the moving process.

        Prior to Moving Day

        A family meeting is often the best way to explain that you are moving house. This way, you can address any questions or concerns your children might have in an environment where they’ll feel secure and supported.

        Explain to them that you’ll need their help and cooperation so they feel like they’re part of the process. Even if you only give them a small job to do, such as packing up their toys or books, they’ll feel they’re playing a vital part.

        You might find that taking your child along with you to view potential new houses will make them more comfortable with the transition. Their feedback on the home is extremely important, so take some of their comments and concerns into consideration.

        Moving cities or states can be an extremely hard process for some children, as they’ll need to leave their friends behind. Make sure you host a leaving party for your kids at your home or at their school to ensure all proper goodbyes and “see you soon’s” are said.

        On Moving Day

        When moving day rolls around, give your children an array of small tasks they can complete themselves.

        These jobs may include holding on to some of their favourite toys during the trip or unpacking some items in their new play areas.

        Set up the childrens’ bedrooms and play areas on the first day at your new home, and, if they are old enough, give them a say about how their furniture is arranged. This helps to create familiar surroundings for them and gives them areas in which they can occupy themselves while you unpack.

        Getting Ready to Move Your Pets

        Moving houses can be just as stressful for your animal companions as it is for you. You’ll need to make sure their journey and transition to your new home is made as comfortable as possible.

        Prior to Moving Day

        If you’re moving states and own a dog, you’ll need to organise the registration of your pet in your new destination through the city council.

        It’s best that you and your pet take a quick trip to the vet to ensure it’s in good health. While you’re there, you can update your pet’s ID tags and microchips and discuss any concerns about moving with your vet. You can also ask for recommendations for vets in your new area, and then make sure to register your pets there in time for any follow-up appointments.

        If you plan to move your pet by car and it has not done much car travel, you could take a few steps weeks before the move to get them more comfortable. Begin by letting your pet explore the back seat of the car while it’s parked and turned off. Then you can move on to take short trips around the block to get them used to the movement.

        Moving Day

        Relocating a pet – and travelling long distances – can take a toll on their bladder and digestive systems, so try not to feed your pet within six hours of the move – especially if it’s going on a long journey.

        Make sure your animal has access to a supply of water and has its own pet cage in your car. Place newspaper in the bottom of the crate or cage to soak up any accidents or spills.

        At your new home, set up an area where the animal can enjoy a stretch. Outside, dogs should be kept in a fenced area where they can survey their new surroundings, but you should let them have free rein of the house so they can sniff everything out.

        Cats should be confined to a particular room for a few days with food, litter and some familiar toys so they get used to their new home. After that, you can start slowly introducing them to new areas in the house.


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