In times of a buyer’s market, exposure is the key when it comes to selling your property quickly, and there is no single outlet that will give you more exposure than the Internet. The Internet isn’t just amazing for reaching more people, however, as it also a far more cost-effective way to advertise. Real estate agents have known this for a long time, which is why the industry is well known for being the most Internet savvy. If you are looking to sell your home or investment property online, then the following tips will help you do so effectively.

Don’t Ignore Print Media

Although the Internet provides the most important source of marketing, print media still has its place. Many agents agree that people searching for real estate will often see a house in a newspaper, local glossy magazine, or even on a sign first. Once they have noticed the listing, prospective buyers will then take to the Internet to conduct a preliminary house inspection and obtain information about the house as well as your contact details. The reason that people still like print media is because it suggests an active selling campaign, which provides assurance that the online ad for the same house is still relevant.

Listing Your Property With Real Estate Websites

Real estate websites are the primary vehicles that most Australian sellers use to drive their online marketing campaign. Nowadays, house hunters will peruse online listings on their own before they contact a real estate agent to help them. So if you have a flawless listing that will pop up in common searches, then you are already reaching out to a lot of potential buyers. Make sure you take attractive photos, use attention-grabbing headings, and list all the best features of your home so that your listing really stands out. Place your ad on sites like realestate.com.au, domain.com.au or industry-owned portals to get noticed.

Make Use of Social Media

Just because you have a listing posted in a few different places online, it doesn’t automatically mean that you’ll get a lot of traffic. If you want to attract a full range of homebuyers or property investors, you’ll need to cast a wider net, which is where social media comes in. The following are just a few techniques that can help you effectively combine the power of social media with your online listing:

1. Property Blog. By creating a blog for your property, you can more effectively tell the story of your home and reach out to prospective buyers on a more personal level. You can also add any media you want, such as videos, images, social media apps and a question/comment section.
2. Keyword Research. Find out which keywords are used most frequently when people search for properties like yours online. Then, work these keywords into your blog and online listing to improve the amount of traffic your listing gets.
3. Have Multiple Accounts. Having a social media account for all the major platforms will help you reach out to a greater audience. For instance, Twitter, Flickr, Picasa, Facebook and LinkedIn can all be used to create a unique property profile.

While it might take some time to create and maintain an online presence for your property listing, you will be greatly rewarded by the increased interest your listing will get. When combined with more traditional forms of property marketing, the Internet will significantly boost your chances of a quick sale.

Marketing your Property Online is a post from: Property Investment Advice & Tips

While property is often cited as one of the safest investments, property investors aren’t always guaranteed that nothing will ever go wrong. It’s possible to buy a property that later becomes tainted by traffic noise, changing surrounding infrastructure or unruly neighbours, resulting in low rental yields. Not only that, but the property market can take a sudden and unexpected turn, leaving many property investors reeling and ready to sell.

Unfortunately, property can’t just be unloaded in seconds like stocks. It could take weeks or months to sell, and it requires a lot of work. The following tips will help you get rid of a poorly performing investment property with minimal stress.

Know Why You’re Selling

Before selling your property, it’s important that you determine whether or not doing so is actually a good decision. There are plenty of reasons why you might want to sell, but in some situations the sale could actually leave you worse off than if you were to hold onto it. For instance, many investors feel motivated to sell during a market downturn, which will end up costing them in selling fees without the benefit of capital gains. However, if the property is actively losing money, you’re moving away, or you want to cash in for retirement, then selling probably is your best option. The important thing is that you take time to think about why you’re selling and decide if it’s really the best course of action.

Consider the Costs

Selling an investment property has bigger tax implications than does selling a personal use property, as capital gains taxes must be paid on the difference between the sale price and the price you originally bought the property for. Not only that, but the amount you pay capital gains tax on will increase if you have also claimed any depreciation against the property. You also need to consider income tax, selling expenses, legal fees and so forth. Determining what these expenses will be will help you decide whether you should sell or use the equity in the property to make a better investment.

Choose a Selling Agent

The agent you choose for selling your property could mean the difference between a successful and a poor result. Unloading an underperforming property should happen quickly, and the right agent will ensure that the speed of your sale doesn’t compromise your profit. When choosing an agent, look at their results. Sold signs, online reviews and recommendations from friends and neighbours often indicate a solid agent.

Consider Your Tenants

If you currently have tenants living in your property, then you’ll need to consider the agreement you have with them before deciding when to sell. Even after a sale, the lease that the tenant agreed to remains intact, meaning that the new owner will become a landlord whether they wanted to or not. To avoid this situation, you need to decide whether you will wait until the lease is finished before selling, or if you will sell the property subject to a lease stated clearly in the terms of sale.

When an investment property is seriously underperforming, selling it and moving on is often the best course of action. Even if you stand to suffer small short-term losses, it’s often better to cut your losses and move on quickly to something better.

Selling Underperforming Investment Properties is a post from: Property Investment Advice & Tips

Most Australians are busy setting aside funds for retirement, and many are investing in property, stocks and various saving accounts to try and pad up their retirement income. What is less clear, however, is just how much is required to support a comfortable lifestyle in those senior years. It’s an issue that that everyone will have to address, but unfortunately there’s no single answer to how much is enough. Now is the time to start thinking about what finances you need in order to live the lifestyle you want, and here are some tips:

Working Out Your Needs

Once thing that every Australian is aiming for is enough savings to live out their retirement in comfort. Of course, the life that one person finds luxurious may seem quite modest to another. The best way to get a general idea for what you need is to observe your current budget, and use that information to work out an anticipated annual retirement budget. Think about things like hobbies, travelling, cars, dining out, entertainment, clothing, utilities and so forth. You may have other factors to think about as well, such as children, health, the costs of keeping up your home, the costs associated with your investment property, any assisted living you might need, and the list goes on.

As a general rule of thumb, if you want to continue living the same pre-retirement lifestyle, then you’ll need to have a retirement income of at least 60-65 per cent of your pre-retirement income.

Comfortable Living According to ASFA Retirement Standard

The ASFA Retirement Standard study has measured the average target that Australians are aiming for in order to have a basic to comfortable lifestyle in retirement. The study takes into account the changes in living standards, spending patterns and the evolving costs of life in general. Assuming that you own your home, the following is how much the study estimates you’ll need for retirement:

1. For a basic lifestyle, $20,088/year for a single person or $30,285/year for a couple. This single Age Pension represents approximately 27.7 per cent of the average weekly earnings of an Australian male. Living solely on the Age Pension will afford you a basic lifestyle and access to discounts on health services and energy costs. While this amount is enough to survive on, many Australians expect better for their retirement.

2. For a modest lifestyle, $22,539/year for a single person or $32,511/year for a couple. This lifestyle is better than living solely on social security, but you would still only be able to afford low-cost activities.

3. For a comfortable lifestyle, $41,090/year for a single person or $56,236/year for a couple. This level of income would ensure you could afford more recreational activities as well as things like private health insurance, a higher quality of household goods and even some travel. This isn’t anything outlandish, but it is what most Australians are hoping for.

Start Saving

It’s never too early to start saving for your retirement. Now that you have a general idea of how much you might need, it’s time to start taking action to get it. Apart from the Age Pension and your own savings, it’s important to assess what other sources of income you will have, such as from your super and other investments. Teaming up with a financial advisor is also a great way to set the course and make sure you’re staying on the right track.

Saving Enough for Retirement is a post from: Property Investment Advice & Tips

When buying a new home or investment property, it can be really difficult for the average homeowner or property investor to be able to finance a new property while still in possession of their old one. To address this common conundrum, lenders now provide a bridging loan, which can be used to manage the transition between buying and selling properties. If you can’t afford to buy a new property until the old one is sold, then read on for some tips to help you decide whether or not a bridging loan is right for you.

How a Bridging Loan Works

A bridging loan ‘bridges the gap’ between two home loans. Your lender will take security over both properties and lend against them until the your have officially bought the new property and sold the old one. Depending on your lender, you will have up to 6 months to sell your old property if you’re buying a new established one, and up to 12 months if you’re building a new house. When you sell your old property, the proceeds will pay off the bridging loan, and any remainder on the loan will become your new home loan. Your new home loan will take on the interest rate you and your lender agreed on.

Types of Bridging Loans

Generally, there are two types of bridging loans that you have to choose from, and which one you get will depend a lot on how much equity you have in your existing property. The lender might:

• Offer you a single loan that will cover the mortgage debt you currently have as well as the new purchase. In this case, the lender will take on both properties as security while you try to sell your old property. Then, the proceeds are put toward your overall debt, with any remaining debt serving as your new home loan; or
• Offer you a second loan for the new property while you retain your existing mortgage, requiring you to make repayments on each one during the bridging period. Upon selling your old property, the proceeds would first pay the lender for the original mortgage, with any leftovers going towards reducing the debt on your new loan.

What to Watch Out For

As with every type of loan, there are some things you should consider before jumping right in. After doing some careful research and assessing their finances, many people find that they are better off waiting to sell their existing property before committing to a new one. While a bridging loan is still a fantastic alternative in some situations, you should consider some key issues:

• If your old property isn’t sold by the end of the bridging period, then you will have to start making repayments on the peak debt or continue to pay two mortgages.
• You may have to sell your existing property for less than you expected, which would leave you with a larger debt than you envisioned.
• Bridging loans in Australia typically have higher interest rates than other loans.

To ensure you get the right loan package for your situation, then you’ll want to shop around and see what different lenders can offer you. Often, lenders will have divisions in the loans specific to demographics, time frame and so forth, so you should be able to find one that is more suitable for you.

Borrowing Money Before Selling Your Home is a post from: Property Investment Advice & Tips

Buying an old and rundown property to fix and flip is a very common property investment tactic. While other property investments may require investors to wait for years before seeing any returns, fixing and flipping old properties is a great way to make quick cash from the real estate market. Of course, being able to do this successfully means property investors must have a good eye for a property’s potential to ensure the repairs don’t exceed the value of the property. Spotting the potential is easier said than done, so here are some tips for what to look for when searching for a rundown property.

Sound Overall Structure

The structure of the house or building on the property must be sound overall with no major defects; otherwise you’d be looking at some very expensive renovations. What you’re looking for in a property is simple fixes that will make the property look better than before without having to commit to major structural renovation. If you’re not sure what to look for, bring in a building inspector who can tell you if the foundation and structure of the building is sound.

Good Location

No matter what you do to fix up a rundown, profit-potential house, no one will want to live there if it’s in a bad location. Houses next to noisy freeways or busy streets won’t appeal to most homeowners, as well as houses that are surrounded by other derelict houses. Look for a location with a bustling neighbourhood, a low crime rate, a good quality school district, access to public transit and so forth. The neighbourhood should also be economically stable with plenty of jobs available so that the house will be appealing to both renters and buyers.

Need for Cosmetic Repairs

Cosmetic repairs are the easiest and cheapest repairs to make, and will bring you the greatest returns. Look for a house that would look monumentally better simply with a fresh coat of paint and some landscaping. Inside the house, examples of cosmetic repairs include fresh paint, new light fixtures, new carpets and flooring, and new appliances. Repairs that won’t give you value for money include new wiring and plumbing, major kitchen or bathroom renovations, room additions or a new roof. The more cosmetic repairs you can make, the better your return on investment will be.

There is No Tenant

When looking to buy a fixer-upper, make sure there is no tenant, or that the current tenant will vacate immediately once the title is transferred. The best way to make a decent profit is to begin working immediately on a vacant structure. Trying to make improvements while a tenant lives in the property will make it twice as difficult and will take a lot longer to complete.

The Seller is Motivated

Let’s face it, you want to get the best deal possible on the property to get more bang for your buck. Purchasing the property from a motivated seller is the best way for you to get a fantastic deal. Motivating reasons for selling a home include a job transfer, pending foreclosure, divorce, health reasons, family reasons or unemployment. If the house has been listed for 60-90 days with no other offers, then this is also an excellent opportunity to make a deal.

Spotting Potential in Rundown Properties is a post from: Property Investment Advice & Tips

Often hailed as a property investor’s best friend, negative gearing is a concept that few people understand well enough to benefit from. In order to make capital gains on property investment, negative gearing has become the preferred method to achieve it in Australia, New Zealand and Canada.

The idea of it seems simple enough — you buy a property in the right location, and then enjoy it as the tenant and the taxman cover your debts, all while your property is appreciating in value. In reality, however, negative gearing is neither good nor bad. What dictates how beneficial (or detrimental) it will be for you completely depends on the circumstances and reasons for which you’re using it as a strategy. Before you jump right in to negatively geared property investing, read on to discover whether or not it’s the right strategy for you.

What is negative gearing, exactly?

To put it simply, gearing is the acquisition of an asset using borrowed money. Negative gearing, then, is when the loan interest and other expenses involved in maintaining the asset exceeds the income that the asset generates. Basically, your asset is running at a loss, and is therefore called ‘negative’. Obviously, negative gearing comes with a high element of risk because you are assuming you’ll make future income from an asset in order to cover the initial debt.

What are the benefits?

If negative gearing requires you to take on a larger chunk of debt than you know you can afford, who in their right mind would agree to this scheme? Well, there are actually some benefits if you can make it work in your favour. The losses from buying the asset are tax deductible, which means you can offset the losses against your taxable income and generate a short term gain via tax credit.

For this reason, someone in a high tax bracket would find this strategy very attractive because the losses they sustain are only marginally higher than if they had paid the tax on that income. Of course, you are betting that over time your asset will increase both in value and income streams so that your capital growth will eventually counter the losses.

Who should/shouldn’t negative gear?

If you’re still on the fence about whether or not you should negative gear, then consider how much risk you are willing or able to shoulder. The only people that should consider it as a viable option are those that have a high risk tolerance and are prepared to accept potential losses. For instance, you:

• Have paid off your house;
• Are on a high rate of marginal tax;
• Have a high risk tolerance;
• Have job security;
• Don’t have many dependents; and
• Have sufficient disposable income to shoulder initial losses

However, if you are a conservative person with a lower risk tolerance, then you should either limit how much you negative gear or avoid it altogether. Negative gearing should not be considered if you:

• Have a growing family;
• Are currently paying off a mortgage;
• Have low risk tolerance;
• Have little or no taxable income;
• Don’t have job security; and
• Depend on income from your investment property to be able to continue affording it.

If you’re still unsure about whether or not negative gearing is a good option for you, always talk to a trusted financial advisor. Unless you are confident you can make it work, negative gearing could end up causing you a lot of headaches.

Is Negative Gearing Right for You? is a post from: Property Investment Advice & Tips

For many years, Australians have been using investment properties as their route to independent wealth. Buying their own home is often seen as the first ‘investment’, after which they purchase another one — even before bothering with shares and other assets. This makes good sense considering property is historically less volatile than shares, and has often come through as a safe haven for investors in times of economic decline. Not only that, but when managed wisely, property has a high potential for capital growth and revenue from tenants.

Of course, having more investments is often better than one, so if you have one large property then you may at some point consider selling it in order to diversify your investments.

Diversify your portfolio

Many financial advisors argue that far too many Australians rely on their residential investment property by allowing it to dominate their portfolios. If all your eggs are in one basket, so to speak, then you are at risk of losing them all with one wrong turn of the market — even in the case of property.

To lessen this risk, many investors choose to diversify and put their money into many different investments. This way, if one fails then there are others that can pick up the slack. When it comes to your investment portfolio, it’s generally recommended that properties account for perhaps 10 per cent of it.

Wait for good market conditions

If you have decided to sell your single large property in favour of a more diverse portfolio, then you first need to determine whether or not you’re sitting on good market conditions. Above all else, your property is still an investment and you want to make sure you get capital gains from it. Buying and selling property is expensive enough as it is, so you don’t want to sell at a loss in the hopes you’ll make a gain elsewhere. If you have the time, wait until it’s right to sell.

Make a plan

While you’re waiting for the right time to sell, it’s prudent that you come up with a strategy for where you will invest next. While you don’t want to count your chickens before they hatch, you can still have a general idea of where you’ll put your money next. Will you buy another, smaller investment property and use the rest for other investments? Will you simply replace the one large property with two smaller ones? There are many scenarios here, and having a plan in place will ensure you get the most out of your money once it becomes available.

Can your manage more investments?

Let’s face it, not everyone is a professional investor and not everyone has a knack for it. Some of us get overwhelmed with one investment to keep track of, while others can manage more. For instance, in the case that you sell your property in order to buy two smaller ones, have you thought about what it means to manage two properties? Unless you think you can manage your others just as well, then you may still be better off sticking to the one you’ve already got.

There is a lot to consider when it comes to investment properties, and it can be very tempting to sell that one big one in favour of a greater number of smaller investments. If you’re unsure about the best route, always talk to a financial advisor for guidance.

Selling Larger Properties to Diversify Your Portfolio is a post from: Property Investment Advice & Tips

It takes a lot of time and effort to purchase the right investment property, and once you do the work is far from over. You are also going to need to manage it for the entire time you own it, and this is a big responsibility. The tasks you’ll need to take care of include finding tenants, chasing rental payments and coordinating maintenance, which can be time consuming and stressful.

Of course, there are a couple of different ways you can go about managing your properties: self-management or by hiring a property manager to do it for you. Before you decide which strategy is best for you, read on for the pros and cons of each.

Property manager: pros

1. Saves time. Since your property manager will take care of all the time-consuming tasks involved with keeping tabs on your investments, you are free to use your time to make other investments.
2. Professional insight. Property managers are experts in all areas of management. They can take care of all the difficult tasks for you and advise you in matters of maintaining your properties.
3. Industry connections. Since most property managers are responsible for many different properties, they will most likely have access to reputable tradespeople that can perform any necessary maintenance.

Property manager: cons

1. Agent fees. Of course, hiring a property manager is going to cost you money, so you’ll need to factor this into your budget.
2. Management style. It’s going to be hard for you to find a property manager who will manage your property in the same way that you would, so you’ll have to prepare for a differing style.
3. Trust issues. While most property managers will do an excellent job, you are still at risk of hiring someone who isn’t trustworthy.

Self-management: pros

1. Money savings. One of the biggest advantages of managing your own property is that you’ll save a lot of money on property manager fees. If you own the property for a long period of time, these savings could really add up.
2. Top priority. Even though property managers have a lot of experience and knowledge, your property will never be their top priority. Since it’s your investment, you’re the only one who can be guaranteed to be 100 per cent devoted to it.

Self-management: cons

1. Time investment. Managing your own investment properties is very time consuming because many of the tasks that need to be done are continuous. If you have another job on top of your property investments, then you might find it overwhelming.
2. Emotional involvement. Emotions and investing are like oil and water: they don’t mix. And no one is more emotionally involved in your property than you are. Dealing with things like problematic tenants can get personal quickly, not to mention stressful.
3. Lack of knowledge. You may be a savvy property investor, but you’ll need to be able to admit when you’re in over your head. Managing property will require knowledge in other areas, such as being a landlord, finding tenants or knowing when something needs to be maintained or fixed on the property.

Keeping Tabs on New Investment Properties is a post from: Property Investment Advice & Tips

Investing in property is an excellent way to diversify your investment portfolio and get some extra income at the same time. Contrary to the extremely volatile stock market, property investment is a great way to make steady and secure profits, and can be managed more actively too. Of course, when it comes to property investing, there are a lot of options available and it can be difficult to choose the best investment path. If you’re trying to decide whether to invest in property overseas or at home, then read on for some things you should consider.

Do your research

While you’ll need to do thorough research before buying any type of investment property, buying overseas will take significantly more time and thought. Buying property at home is easier because you already have an idea of which neighbourhoods are lucrative and a solid understanding of the associated legalities.

However, when buying property overseas, you’ll need to learn about not only the real estate market, but also the culture, politics, economy, local cuisine, weather, customs, taxes — the list goes on. Overseas properties need to be snapped up fast, and you can only do that if you’ve done your research.

Get help

When you buy property at home, you will probably benefit from getting help from a professional real estate agent. When buying property overseas, however, you will definitely need help from a professional. Not only that, but you’ll want help from an independent solicitor that is well-versed in property law in your chosen country, as well as an independent financial advisor that can help you get your money in order.

Define your objectives

Every investment opportunity brings with it the promise of a return for your money, but if you want to ensure a decent return it’s important you have a clear goal in mind. This will not only help you choose the property itself, but also whether you buy overseas or locally. For instance, if you simply want a property to rent out for supplemental income, it’s probably best to avoid the hassles of overseas property dealings. Of course, if you’re eyeing up a unique location for a holiday home or a place to eventually retire, it makes sense to also consider overseas locations.

Weigh the pros and cons

When it comes down to it, it’s good to look at the pros and cons of buying property either at home or abroad. While it takes a lot more time, effort and research, buying property overseas does have its advantages. For instance, you can look for property in countries that offer excellent tax advantages, especially if your ultimate objective is to maximise your capital gains. Additionally, you can get a much greater variety of potential markets when you consider overseas locations, and the currency rate could also work to your advantage.

Of course, there are many advantages of buying on home soil as well. For instance, you may have more privileges as a citizen, you will get far more security, and you can more easily manage your property.

There are plenty of advantages and disadvantages of buying property both overseas and at home. To make your decision, it’s wise to do your research, weigh the pros and cons and always make sure your investment objectives are clear before proceeding.

Overseas vs. Local Real Estate Investment is a post from: Property Investment Advice & Tips

If you were to ask any first-time property buyer what stressed them out the most during the home-buying process, their likely answer would be the hidden costs involved. Whether you are buying your dream home or an investment property, the costs associated with the transaction are numerous. While you might already be aware of and prepared for the mortgage and deposit, you should also be wary of the following hidden costs.

Stamp duty

The stamp duty is the tax associated with buying a home or real estate investment. Depending on the cost of the property you are buying, the stamp duty could end up being a significant-sized chunk of your overall expenses. Of course, stamp duty rates vary from state to state, so you’ll have to consult your state government’s website for the details of how much you’ll be required to pay.

Government fees

The government is always adding new and interesting fees to property transactions, such as land transfer registration fees and government taxes. There are a variety of fees with flat rates and fees with variable charges that change depending on how much the property is worth. Make sure you understand the fee structure for your state so that you don’t end up with an unpleasant surprise.

Inspection fees

Inspections range in expense based on how comprehensive they are, but either way you’ll be paying money. Inspections generally involve appraisals of the property and structures on the property, and help ensure you are getting what you pay for. It’s definitely a cost worth paying, but a cost nonetheless.

Legal fees

Conveyancing is the name of the legal work involved in buying and selling property. While it’s possible to do it yourself, it’s generally recommended that you get a professional to do it for you. The fees associated with this will vary between states and legal professionals, and will also depend on the size and complexity of the purchase. Make sure you do thorough research before choosing a firm to do your conveyancing, and get a few quotes to better plan your budget.

Mortgage insurance

As if the mortgage wasn’t bad enough, you also have to be concerned with the insurance fees that come along with it. The cost of mortgage insurance varies from institution to institution, and also depends on the type of loan you have and the size of your deposit. For some loans, getting insurance is obligatory, especially if your deposit is small.

Additional costs

So you’ve purchased the property, dealt with all the hidden fees associated with the transaction, and the keys are in your hand. The financial surprises are over, right? Sure, but that’s only if you don’t consider moving costs, the transfer costs for utilities and other bills, urgent repair costs such as new locks, home insurance costs, costs for professional cleaning, and so forth. Plus, if you’re planning on renting out your property, don’t forget about the costs associated with finding and securing a tenant, landlord insurance — the list goes on.

When it comes to buying a property, be prepared to pay a lot more than just the asking price. Understanding and estimating the hidden costs and factoring them into your budget is the best way to ensure you aren’t stuck with any nasty surprises throughout the buying process.

Understanding Hidden Costs in Property Purchases is a post from: Property Investment Advice & Tips