Property Investment

Many of us could spend hours (possibly weeks) pouring over pictures of hip homes in interiors magazines, and dreaming … If you’ve ever pondered the secrets of these pads’ photogenic success and wanted to emulate them, here are a couple of general tips:

Story time: Most photoshoots capture pictorial vignettes – the sofa, the casually draped throw, the lovely fluffy cushions, the pile of artistically arranged books … It’s not just about the furniture; it’s about what these items say and the story they tell about you and your home.

Go into detail:  A photographer’s nightmare is a room with no possessions on show. Editors love details – knick-knacks make a home a home.  We’re not thinking for a minute that you cover every space with your old telephone bills and children’s drawings – think knick-knacks, photos of loved ones and think about putting some of your children’s special pics in a frame – and put the bills and clutter out of sight!

How to get the Interiors Magazine Look

Set great store: Good storage is vital – but it doesn’t need to be an expensive built-in: photographically that’s dull. Try a trendy glass cabinet, such as the eye-catching, Forma.

All the little things:  Bold doesn’t have to equal expensive. If you’re nervous, build on a neutral base – beige or brown lounge – then take risks with accessories: zingy cushions or throws, or a ceramic jar – much cheaper than getting the wrong lounge.

Screened off: Something you’ll never see in an interiors mag is the TV! They’re so huge now – and not pretty. Hide giants in a cupboard – and never hang one over a fireplace.

Personal appearance: Forget having the ‘right’ or fashionable thing. The best style is surrounding yourself with things that you love.

To create that beautifully designed magazine look, be sure to follow these tips.

Source: Nick Scali Reviews

Some may describe the market as “sluggish” others describe it as “normal real estate conditions.” Whatever the case, property investment has never been a get rich quick scheme.

“Property is a great investment over long periods of time,” says leading agent Madeleine Hicks of Madeleine Hicks Real Estate Everton Park.

Property Investment Is Not A Get Rich Quick Scheme

“Too often people get excited when the market booms and fast gains can be made. This type of market is rare and generally lasts for short periods.

The current climate is typical of a normal real estate market where one can make steady long-term gains over time,” explained Madeleine.

History shows that property has proven to be a great investment averaging annual growth of upwards of 7% per annum over 10 year periods. This provides the opportunity for property values to double every 7 – 10 years.

“There are riches to be made through property investment but a sound strategy and patience are the keys,” concluded Madeleine.

For all your Real Estate needs contact Madeleine on 3355 6845 or 0413 733 617.

Property can be a great investment and can fund an early, wealthy retirement.

Smart property investors often have the comfort of knowing that they can quit their day job and live off their passive income that they have created whilst watching their assets grow.

Leading agent Madeleine Hicks of Madeleine Hicks Real Estate believes that anyone can create wealth from property providing they devise and stick to their game plan.

“There is an abundance of information on property investment and many resource tools to draw upon, even for first timers,” said Madeleine.

“The real challenge isn’t in the legal detail, though it is wise to be educated or seek professional advice. The challenge is in formulating your plan then sticking to it,” Madeleine explained.

How to Build Your Property Portfolio

So where does one start?

Madeleine offers the following tips to devising your game plan:

  • Work out your reason why. Why do you want to invest in property?
  • What is your dream result?
  • Set goals you wish to achieve through property investment and WRITE THEM DOWN.
  • Put a net value on those goals
  • Work out your budget. Where are you spending your income?
  • Allocate and affordable amount to service mortgages.
  • Budget for vacancy factors, repairs and problems

If you are interested in property investment and would like assistance in getting started contact Madeleine on 3355 6845.

Knowing your limits and the market will help to expand your property portfolio.

Why do some people struggle to buy one investment property and yet others manage to own five or six? The answer isn’t simply that they have more money.

Investors who are creative in their approach to financing and who thoroughly research the important real estate indicators routinely achieve their goals faster and with less hassle.

There are several well-known ways to increase a property portfolio. You can take out an interest-only loan, buy with partners as ”tenants in common” or tap into your home equity.

Make the most of your investment dollars

Owning an investment property is not out of reach, it simply requires an astute approach. Photo: AFR

All of which help free up cash flow, enabling you to make more substantial contributions to a principal place of residence or to access cash flow for other investments. Coupled with buying investment properties in the right place at the right time, these tactics have reaped financial rewards for many people.

But savvy investors take their strategies to the next level. Let’s look at some of the less-traditional approaches to more profitable property investing.

Varying your income tax

If you’re negatively geared, a good way to improve immediate cash flow is to ask your accountant to submit an income tax variation form to your payroll office.

This reduces the tax rate charged on your wages by estimating your total end-of-financial-year tax position in advance. Rather than receiving a lump sum tax refund, you receive money evenly throughout the year.

Line of credit with a global limit

This is a line of credit home loan with a ”global” or ”umbrella” limit and several sub-accounts. It gives you maximum access to your equity to optimise your investment opportunities. The loan can be operated with multiple accounts under one global limit.

Mortgage Choice spokeswoman Belinda Williamson says line of credit accounts can be attached to a credit card. ”If you earn a decent income, using a credit card for expenses should mean that most of your income stays in the loan until the credit card payment is due, which helps to reduce the loan balance.”

Targeting distressed vendors

Successful investors don’t appraise the properties on the market in an area, they try to work out why they are for sale. Paul Osborne, of the buyer’s advocate firm Secret Agent, says it’s a smart move to understand household indebtedness in specific areas to snare a bargain.

He says many households are managing to service only the interest repayments, not the principal amount, of their home loans. As a consequence, the best buying opportunities tend to be in suburbs that have high proportions of household debt.

A secondary dwelling as an investment

Building second dwellings, such as granny flats, on the land held by either an owner-occupied or an investment property has become a growing trend. These dwellings can generate extra rental income and increase the property’s future value.

They also provide depreciation benefits and must be council-approved. Lending criteria for secondary dwellings varies from lender to lender and it’s smart to monitor how such additions in an area have shifted property values.

Choose a loan tailored to your needs

Depending on your finances, lifestyle and investment portfolio, there are a range of property loans to consider. Ms Williamson recommends checking the health of your home loan at least once a year.

”You should make sure that your loans not only meet your current needs but also take your future needs into consideration,” she says. ”Make sure that you are managing your loan, rather than letting it manage you.” Always be aware that new products are entering the competitive housing finance market constantly.

Story source: Story by Chris Tolhurst

It’s one of the quickest ways to give a home a facelift, but painting like the pros requires patience, attention to detail, a steady hand and yes, tedious preparation.

It’s a messy business, with lots of bending, twisting and negotiating ladders, and inevitable dithering over the crucial colour scheme.

Decide up front who lands the back-breaking tasks of heavy sanding and painting the ceilings.

Painting is not just about getting the paint onto surfaces successfully. There’s an awful lot of work involved in not getting paint where it shouldn’t be. Read more

With the recent rise in interest rates many borrowers are looking at changing lenders. The importance of keeping your credit rating squeaky clean cannot be under estimated.

“Most of us stumble from time to time, perhaps being late with a telephone account or minor bill. The problem for many consumers is that as banks are taking a harder line on borrowers and applicants, these minor defaults can adversely affect ones loan application,” said Madeleine Hicks of Madeleine Hicks Real Estate Everton Park.

Keeping Your Credit Rating Clean Is Important

“Keeping a clear credit rating gives you options. Banks are more likely to approve your loan application to start with and those applicants with equity and a good history can negotiate better deals with their lender,” explains Madeleine.

Whilst many are outraged by the greed of the big four banks by raising rates outside of the Reserve Bank of Australia’s official rates, changing banks may not be your best solution.

“Changing lenders is costly. Make sure that you will benefit overall. Often it is best to secure another loan then go back to your existing lender and negotiate an even better deal,” concluded Madeleine Hicks.

Madeleine Hicks can be contacted on 0413 733 617 or 3355 6845.

Making your home energy and water efficient not only assists the environment but can save you money over the long-term.

Here are five water saving tips:

  1. Install water efficient shower heads
  2. Install water efficient tapware
  3. Install sprinkler watering systems with focus on efficiency
  4. Purchase water efficient washing machine
  5. Purchase water efficient dishwasher

It is funny how humans are so different from one another yet so similar at the same time.

Take purchasing your first investment property for example. Each of us will have different criteria by which we will make decisions, a different financial structure and a preference of locations.

However, each will experience the emotions of fear and uncertainty.

Leading agent Madeleine Hicks of Madeleine Hicks Real Estate Everton Park believes that many first time investors can over research or over think their options.

“Some investors do so much research that they in fact scare themselves out of property investment,” said Madeleine.

Don't Let Too Much Information Kill Your Property Dreams

“Often we can see all the reasons why property investment makes sense yet one article as to why shares out perform property or a bad tenancy story can shelve the property investment for months, sometimes years and on occasions, forever,” explained Madeleine.

“I always recommend that a buyer undertakes research and ensure due diligence when making a decision. The fact is that to the inexperienced too much research can confuse and lead to procrastination,” concluded Madeleine.

Madeleine’s tip for property investment include:

  • Buy your first investment property local – you know the local market.
  • Understand negative gearing
  • Understand taxation benefits
  • Buy something that appeals to tenants
  • Buy peace of mind
  • Brand new property will generally make a great first investment.
  • Make sure you are buying reasonable value property

Madeleine Hicks can be contacted on 0413 733 617 or 3355 6845 for all your property investment needs.

Great gardens add value to your property.

A good idea when designing your garden is to add a focal point or feature. This can be a water feature, shaded sitting area, artwork or artefact.

These days there are many options available over the internet, in garden centres and even salvaging something unique from the tip.

Contemporary sculptures, large pots, collections of pots, screens and the use of metal are some ideas.

When renovating for profit it is important to get the floor plan right.

Consumer’s tastes and expectations change over time and what was a modern floor plan in the 60’s isn’t any longer.

Here are some tips for getting the floor plan right.

  • Minimum TWO BEDROOMS – by adding an extra bedroom you will add value.
  • ADD AN ENSUITE – gone are the days where families survive around the one bathroom. It still happens, however it isn’t the preferred option. Where possible add an ensuite bathroom or shower.
  • LAUNDRY indoors. Most buyers prefer an indoor laundry as opposed to the old “wash shed” out back.
  • LARGE OPEN KITCHENS – Buyers like large open kitchens with plenty of bench space.