The good news for Kyneton with the falling property prices

*this article first appeared in the Midland Express in February 2019

If you have been anywhere near print news or digital media lately, you are sure to have been exposed to stories about the falling house prices in Australia, with Victoria forecast to be the hardest hit.

We are told that house prices are falling, and mortgage interest rates are rising, so anyone doing anything with property are likely scratching their heads and wondering what it means for them.

The good news is that it seems that Kyneton and the Macedon Ranges are one of the few regions in Victoria that is and will continue to experience buoyancy and growth.

Property data firm CoreLogic’s latest Pain & Gain report showed that every house or unit sold in the September quarter of 2018 within the Macedon Ranges made a profit, bucking a state-wide trend of tumbling prices.

So what makes Kyneton and the Macedon Ranges in particular seemingly bulletproof from a nationwide plummet in house prices?

Regional country areas like Kyneton, Bendigo, Ballarat and Geelong are still experiencing considerable growth, in part to still affordable stock and access to metropolitan areas. The outperforming of the Melbourne market is also due to the value for money buyers get in regional areas – larger homes, larger plots of land and more cost-effective living.

As a regional town, Kyneton offers a sophisticated culture unlike any other. Events like the Lost Trades Fair and The Kyneton Music Festival not only attract tourists and day-trippers but appeal to individuals buying in the area who seek out a like-minded community of creatives and culture makers.

Growing communities also mean a fresh opportunity. With the relative affordability of housing compared to metro areas, low crime and access to infrastructure means the demand for stock will increase. The potential in this region is continuing to reveal itself, particularly for those in the market to buy or sell.

In short, don’t worry about the market downturn if you are thinking of selling in Kyneton

 

 

Thinking about selling in late 2019? Time to start planning now

*this article previously appeared in the January 2019 Midland express

 

So, you’re thinking about selling your home in 2019? That’s great but as a seller, it’s a good idea to think strategically about your sale and plan well in advance.

Why? The factors around the sale of your house are not always in your control.

Firstly, it is important to speak to a property professional to help you understand how to sell your house and understand some of the factors that might lead to a slower sale.

Some of the key factors to consider today are:

The average property price in your area.

If your home is comparable to other houses in your area in terms of size and amenity, you will have a good indication of what price point you might land at.

What is the national trend

House prices are cooling across the country and there are predictions for a house price drop over 2019. However in regional areas such as the Macedon Ranges and surrounds, there has been consistent growth in the market. Property prices vary within each market.

An upcoming Federal Election

Any changes to capital gains tax or negative gearing can have flow on effects across the market. Understanding these impacts and timing your sale around this may have benefits.

Changes to lending criteria

As a result of the ongoing Banking Royal Commission, the tightening of lending criteria has had a direct affect on property investors securing home loans or obtaining the loan amount they would like to secure. However, loosening of these initial changes is also a possibility in 2019, which would have a positive effect on buyers and sellers.

The Time of Year

If you’re unsure on the best time to sell in 2019, it’s a good idea to talk to a local real estate professional for advice.

 The most important aspect of considering a sale is also your own personal circumstances. Homes require attention and management, and without that space to work on your most important asset, an optimal sale price may not even be possible

 

Don’t wait until the New Year to sell your home.

*This article first appeared in the December 2018 Midland Express

With the race towards the end of the year and the squeezing of every second as we move closer and closer to Christmas, selling your house is probably the last thing on your mind.

One thing I have learned in my many years as a real estate agent is that some of the best sales and most clever sellers happen at Christmas time.

So why would anyone rush to the market while having to struggle with Christmas parties, gift shopping and preparation for when the relatives coming to stay?

There are two main reasons to consider:

  1. There are considerably less sellers in the market in December and January. Less sellers in the market means less competition for you in attracting and finding the right buyer for your property.
  2. Buyers looking to get the jump ahead of the new year will want to secure their new home before Christmas. It’s amazing the impact the unofficial calendar year makes on the human psyche.

Another factor that come into play is understanding who might be buying during this period. Consider the people who are relocating to where you live. Chances are they want to move in ASAP, settle in before the school year starts and the timing of a pre-Christmas purchase is the optimum time to do that

December really can be one of the top selling months of the year within the property industry. If a seller is ready and aware of this opportunity, they generally sell at a premium and in a much shorter time frame.

If selling your home is on your Christmas Wish List, then consider December the perfect time to list your home. Perhaps maybe the big man in the red suit will fill your Christmas stocking with a signed contract before the month is out!

 

Buyer beware: It’s better to inspect than to be sorry

*this article was previously published in the November Midland Express

Buying a home or investment property is likely to be one of the biggest investments most of us will ever make.

We all want to know as much as we can about the condition of the property before we buy, right? We want to avoid problems and extra costs down the track, ensuring that the home or investment is fit for purpose and of sound value.

So why is it that many people agree to purchase without getting a pre-purchase property inspection report?

Building and pest inspections can help safeguard property buyers against investing in fault-ridden properties, as the reports reveal any hidden problems a property may have.

A pre-purchase property inspection building report is a written account of the condition of a property. It will tell you about any significant building defects or problems such as rising damp, movement in the walls (cracking), safety hazards or a faulty roof to name a few. It is usually carried out before you exchange sale contracts so you can identify any problems.

While a building inspection report should identify any visual damage that may have been caused by termites, it usually won’t include the existence of termites or other timber destroying pests. It is advisable to get a separate pest inspection report to ensure you are not buying something riddled with pests.

Here are a two key reasons to get a Build and Pest report before you buy:

  1. so you will know in advance what the problems are
  2. so you can get specialist advice about any major problems and how they will affect the property over time.

Of course, the building inspection report will be one of many things you will need to consider before buying a property. It is a small cost for a lot of peace of mind.

 

 

 

Want to reduce your mortgage quicker? It might not be as hard as it seems

*this article first appeared in the October 2018 Midland Express

 

The uncertainty of interest rates, as well as job instability, means that many people are wondering if they can shrink their mortgage quicker and buy themselves some financial freedom.

 

There are some really simple ways to quickly cut down on how much you owe on your mortgage beyond just making extra repayments. Many home loans already have features that can assist you but if they don’t, refinancing might be something to consider if drilling down on the debt is a goal.

 

A common approach to speeding up the decrease of a home loan is to increase payment frequency. A fortnightly or ‘bi-monthly’ payment can save tens of thousands of dollars in interest charges and reduce your loan term. The standard monthly repayments not only assist in the reduction of interest charges but the fortnightly payments mean you are making 26 fortnightly payments as opposed to 12 monthly payments, meaning you are sneaking in a few payments per annum. Smart!

 

Also understanding how interest works is another benefit when reducing your mortgage quicker. The interest on your mortgage is calculated on the outstanding balance every day. This means you can reduce the amount of interest you pay overall by increasing how often you make a payment on your mortgage.

 

It is important to understand the features of your mortgage as well. An offset account is an incredible way to not only save some cash for home expenses or holidays, but that savings will also be working for you. For every dollar you leave in your offset account, it actively reduces the amount of interest you pay on your mortgage. For example, if your mortgage is $300,000 and you have $10,000 in your offset account you’ll only pay interest on $290,000.

 

The best way to do all of this is some simple number crunching and to understand what a few extra payments can do to give you the freedom you desire.

 

For more real estate insights, head to jenniferpearce.com.au