*This article first appeared in the May 2018 Midland Express
Things have changed in the Kyneton real estate market. A lot, actually.
You may have bought your home 30 years ago or even 18 months ago, and the chances are that the valuation on your home is quite different to what you paid for it.
So what exactly is an valuation? A valuation is a calculated figure that includes an assessment of the land value and the improvements, taking into account the depreciation of the property since construction. It also includes sales comparison, and a breakdown of living areas, outdoor areas and car areas.
In short, it a valuation can also impact on important decisions such as refinancing, future borrowing and your current insurance position.
Let’s look at insurance for a moment. If you have a valuation of your property that is relevant to the time that you purchased the property, it is unlikely that your insurance covers that estimated actual cost to rebuild the building.
If you are an owner of a residential property including strata developments, or an owner or landlord, it is important that you obtain a valuation of your property to ensure at that you are covered for its actual cost to replace. Many people also forget that the cost of demolition needs to be factored into this.
If you are looking at re-financing your home mortgage to borrow for renovations of consolidation of other expenses or debts, it is equally as important that you get an accurate and current evaluation of your home in the current market place. If the value of your property has increased, the chances are the bank (particularly in this current climate of financial scrutiny) will finance you where you need to be.
If you’d like your property valued so you can ensure your insurance and borrowing capacity is relevant, head to jenniferpearce.com.au
* This article originally published in the February 2018 Midland Express
It’s fair to say the property market can feel like an obstacle course at times.
Everyone has their own bit of advice on real estate, but what is right for your situation may not suit the next person at all. Some key things to consider when tackling the decision of what to do with your existing property when the time comes to move on – should you sell it or rent it out.
Let’s not get emotional
Although difficult, it is critical to making smart and informed financial decisions. Be objective and try to understand why you are considering the options.
Downsizers whose family have left the home might want to keep the family home as it still hold great emotional attachments. Basing decisions about such a large asset can be dangerous territory and can lead to poor financial decisions.
Don’t rush it. Without prudent advice and a thorough understanding your individual financial situation, trying to sell quickly this may not be the right decision either.
Your Cash Flow
Holding on to an investment property could give your finances an injection in the future and present tax incentive, but consider your cashflow in meantime? If your investment is dependent on the projected rental income from the property, consider things like maintenance costs and upkeep, body corporate costs and council rates depending on the property or what if the property is vacant for a period of time for whatever reason. All these things could impact the viability and manageability of your investment.
Remind yourself why you purchased the home in the first place. Was it a home to live in long term or a financial decision based on market opportunities? If you have strong, reliable information to support the investment, the benefit of turning your home into a rental may outweigh the associated risks.
Are you more confused then ever? Here are our top considerations when deciding whether to rent or sell your existing property.
For more on real estate in Kyneton and surrounds, head to jenniferpearce.com.au
*This article originally appeared in the January 2018 Midland Express
A lot of people have resolved to sell your home this year. With people recovering from Christmas and ready to start forging ahead with their New Year’s goals, it is a great time to take the plunge and get your house on the market.
But what happens if you house has been on the market for a while and hasn’t sold? The Kyneton market is certainly hot but there could be a small reason why your home hasn’t shifted. If you’re really dedicated to selling your house this year, you need to take decisive action.
A couple of things to think about:
- Reinvent your listing
Let’s be honest, if you’ve been trying to sell for quite a while without little interest, it might be time to shake things up. Often a price adjustment can make a listing sell much swifter. Sometimes just a refresh of your marketing is enough to target new buyers ready to launch into 2018.This could include changing the copy about the property, a new heading about the property or using different hero images can make a huge difference.
- Stage your home
The internet is full of incredible ideas on how you can scale back on the personal but increase the potential of staging and styling your home. If necessary, commission a home stager or a trusted friend who has great personal style to help you get to market.
- Ask for help
If all else fails, why not give me a call? Ten minutes on the phone can help you to understand the issues, and whether or not you can do something to improve the situation. If your New Year’s Resolution is to sell your home, let’s make it a priority to get it done right and with maximum profit for you.
For more on how I can help you sell your home, head to jenniferpearce.com.au
* This article was first published in the December Midland Express
Are you trying to sell your home just as everyone else is putting their Christmas tree up? Don’t fret! There are some known advantages to selling through Christmas and New Year.
There are some challenges to selling your property through the Christmas holidays. Many agents shut shop and have a break, buyers are distracted with the silly season and many of us are just plain tired!
But if you are selling your property over the Christmas holidays, don’t stress! It actually might be a good thing.
With the spring selling season slowing down, there are buyers still on the lookout for their next property. Christmas time is less competitive and house hunters who missed out on a spring sale are still actively looking.
After Christmas, people’s schedules slow down which means more time for them to scout and view properties. The motivation to start the year off with a new home purchase is not something sellers should discount.
Consider also that there is less competition. Selling at the height of spring means you’ll house needs to stand out from the pack. With fewer properties listed during christmas and New Year, buyers have less prospects to choose from.
At the end of the year, people are reflective and inventive. Buying a house is often on people’s mind as one of their new years goals and doing that sooner sets the momentum for the year to come.
In a hot market like Kyneton, listing over Christmas might be a strategic move in securing a sale with just a special few houses on the market.
For more on how to you maximise a Christmas sale, head to jenniferpearce.com.au
It is a such a busy time of year! And Christmas can be stressful as it is let alone if you are buying or selling a home during this period. Then it can be downright overwhelming.
So to help you with the overwhelm, we’ve collected a few pointers to assist with your property sales thisChristmas.
- Identify Christmas Shutdown Clauses
When you buy a property, you need to exchange contracts before settlement is to occur.
A contract exchanged on 5 December might settle on 4 January, however keep in mind many offices close for the Christmas shutdown period.
In order to ensure that you are not in breach of your contract, your solicitor or conveyancer may need to include a Christmas Shutdown Clause, which states that your settlement will occur immediately after the Christmas Shutdown Period.
- Plan your holiday absence
Many people take a trip out of town over the Christmas period. If you’re buying or selling a house, your contract may require you to complete a transaction while you’re not home.
If you are going away, you must notify your conveyancer or solicitor know. Before you take off, ensure that you have signed all documents so that the exchange or settlement can occur even in your absence. Alternatively, you might want to nominate a power of attorney.
- Be realistic about approvals
It is important that you are realistic about time frames for loan approval processes. If you have submitted your request in late November, you may not get approval until the new year given the process time frames. Ensuring you are prepared and realistic will help keep the stress lower.
Whatever you choose to do, knowing that buying or selling your house over the Christmas period might be the best gift you ever receive.
What is staging and how can it help you make more profit on your sale and in quicker time.
*all statistics courtesy of pricefinder.com.au
We know that Kyneton is a regional hotspot for tree-changers and those seeking a better quality life.
So what exactly IS it that brings people to Kyneton?
Years ago, if you asked anyone who didn’t live on the Calder line where Kyneton was you would probably get a blank expression.
These days, Kyneton has become an emerging hotspot for creative and professional tree-changers as well as well as those seeking a quieter lifestyle.
One of the biggest draw cards is Kyneton’s proximity to the Melbourne CBD as well as the airport. With access to Melbourne and the inner north only an hour away by road and rail, savvy commuters have found it a bonus instead of spending equal time travelling from suburban areas.
The housing marketing remains steady in Kyneton, with a combination of character filled period homes as well as newer stock keeping both buyers and sellers happy. With owner occupiers as well as investors finding it increasingly difficult to enter the Melbourne market,
Real Estate Institute of Victoria data also supports homebuyers choosing places like Kyneton with median house prices increasing approxametly 39% over the last five years.
One of my tree-changing buyers recently said “It is the 5 minute lifestyle that did it for us.” And she is right! With fast trains, sophisticated hospital and healthcare facilities, progressive schools and access to childcare as well as Kyneton’s renown epicurean scene and natural attractions, I do not foresee the interest in Kyneton as home buying hotspot slowing down any time soon.
For more on why buyers can’t seem to resist Kyneton, head on over to jenniferpearce.com.au and I’ll share my insights.
A common question I am asked when people are considering selling their property is whether investing in additional renovations will produce a more profitable sale. In short, should I spend some money on my home now to make more money when I sell.
The first thing to keep in mind is that every property is different. Some homeowners might need to spend money on their property to make a sale, and others won’t.
And the factors at play are variable. It not only depends on the property’s current condition, but on the state of the local real estate market as well. A high supply of quality stock in your local area might mean you need to spend a little on raising the standard of your home to meet buyer expectations.
There are many different ways that can be used to smarten up a property before putting it on the market. These could range from a basic clean-up job to a full renovation.
The critical factor should be the return on your investment. You must consider whether the cost to improving the look of your home before putting it on the market will result in a sale price that is higher than your renovation investment. There is no science to this and can be somewhat tricky to measure.
A good real estate agent who knows the local market intimately will be able to help you understand the value of the different levels of renovation investment and its effectiveness at sale time. Your agent should be able to answer questions about the state of the market in general as well intimate knowledge of the local competition and what features drive up a sale price. Whether you consider engaging a professional or conducting some DIY renovations, your agent will know what will work the best for you and whether these modifications are necessary in the first place.
It is not a bad idea for you to conduct your own due diligence by visiting comparable homes in your area that are on the market. This will assist you in gauging whether that pergola you are thinking of building will drive up the sale price or whether it will leave you out of pocket.
If you are going to spend money on your home, it’s vital to ensure that this money is going to be put to good use and result in a higher profit at the point of sale.
For details on what renovations in your home could help drive up the sale price, head to my website at www.jenniferpearce.com.au