Property Home Base | Blog

Buying an Investment Property

Fri, 13 Aug 2021 02:05:01 GMT

Purchasing a residential investment property can be challenging if you don’t adopt the right approach from the outset. However, it is possible to maximise rental returns and manage your expenses if you develop an investment strategy that incorporates these five crucial elements:

The best strategies for driving revenue growth are long term.

If you are buying an investment property in the hopes of making a quick profit, you could be undermining your future earnings potential. Holding onto a residential address for a while can help you make the most of rising housing prices while also raising equity for potential future investments.

If you don’t know the dynamics at play in the neighbourhood you are considering investing in, find out.

Speak to multiple property managers and estate agents to determine community demographics, dwelling vacancies and local rental yields. In addition, look at local planning approvals for dwellings and infrastructure.

Be on the lookout for properties that appeal to a wide range of renters, from young professionals to families.

Certain features, such as a second bathroom or garage, have universal appeal, so waiting to invest in a property with these assets can improve your chances of attracting suitable, long-term tenants.

Your credit history and liquidity are important factors in trying to secure finance for buying an investment property.

Ownership of other dwellings can also affect the value of your loan and interest rate. Consulting with a financial advisor should help you get your personal finances ready and develop an investment strategy. Consulting a mortgage broker will help you secure the finance you need.

Seek the advice of a Buyer’s Agent/Buyers Advocate

we can advise you on the best approach to achieving your personal goals by ensuring that your criteria is met with each property purchase. With thorough due diligence and savvy negotiations, we can secure a property under market value, giving you instant equity and immediate capital growth.

Take these factors into account when purchasing a residential investment property, and your strategy will be well on the way to success!

The benefits of buying an Investment Property

There are many benefits to buying an investment property that go beyond adding a new source of income.

Those with an investment portfolio will know that property is one of the most secure and high-yield markets in which to increase your personal wealth.

The price of dwellings in Australia has increased significantly over time, meaning property is still suitable for the risk-averse. Additionally, purchasing an investment property diversifies your portfolio and spreads the risk, in case your other investments are failing to deliver the expected financial results.

Investment property also offers the chance for individuals to prepare a new taxation strategy that streamlines end-of-tax-year commitments. Many costs involved with purchasing a property, preparing it for rent and managing it - like fees paid against your loan, advertising for tenants and maintenance fees - are tax deductible.

Additionally, a negatively geared property (instances in which you lose money on the expenses associated with owning a property) can be claimed as a deduction against other taxable income. This approach to your personal taxes ensures you pay the exact amount you owe without additional costs.

As mentioned before. raising equity against the value of your residential investment property is the easiest way to finance future housing purchases. If you can prove your financial stability in repaying your mortgage on time, you will more easily be able to secure loans and other forms of financial credit from a bank or lending institution.

We understand that while the benefits sound great, many first-time investors remain cautious about how they will finance a purchase and will question whether property is a good investment.

Identifying the right investment strategy is fundamental to both the success of individual projects and securing your long-term retirement and lifestyle ambitions. The right strategy provides focus and alleviates those fears. Using cutting edge technology and artificial intelligence, our methodology is data-driven and scientific, geared to take the subjectivity out of investment research.

3 first-timer questions about property investment finances

1) What do I need to qualify for an investment loan?

This criteria is not exhaustive but is common for most Australian banks and lenders to require:

An ample deposit - at the moment it’s tough to borrow against more than 80% of a property’s value. That means you usually need to have a 20% deposit to secure a loan.

Recent savings - many lenders will also want evidence of recent accumulated savings, spanning at least three months, to demonstrate that you can manage your finances.

Clean credit history - a good credit rating is another tool used to indicate that you have the financial savvy to save.

2) How much can I borrow for an investment property?

Your borrowing power depends on the strength of your loan application:

Up to 85% - this is often the upper end of the scale for loans against the value of a property. Individuals need to demonstrate a strong income from stable employment, prove they can pay a 15% deposit and also show genuine recent savings of 5%.

Around 90% - individuals investing in an easily sellable property (which can be assessed against the market by a third party) with a big deposit and clean credit history may be able to get a 90% investment loan.

More than 90% - only select borrowers can borrow this amount, because qualifying individuals need to have a large deposit, perfect credit history and a proven investment portfolio. There are also restrictions as to the kind of investment property you can buy.

3) What are the costs of buying a first investment property?

On top of the purchase price of the dwelling, investors also need to factor in these expenses:

Stamp duty - this varies between states but can be as high as 6% of the property value.

Building & pest Inspection - not always necessary but often recommended a building and pest inspection will cost around $700.

Loan charges - this cost differs between banks and lenders, but a standard application or settlement fee for securing an investment loan for your property can reach $1,000.

Conveyancing costs - preparing legal documents, such as title transfers, mortgage agreements and other financial information are essential to meet fair trading compliance. This may be done by either a Conveyancer or Solicitor. Expenses differ by state and between individual, but can average between $800 - $1,500.

Transfer expenses - this government fee, to remove the vendor’s name and transfer ownership of the property to you, is essential for a fair and legal purchase.
Buyers Agent/Buyers Advocate - services are often charged as a percentage of the sale price of the home - 2% is very common. We recommend ONLY using a flat fee service ranging between $7,000 and $12,000.

Other things to consider

Here are just three topics our buyer advocacy team will talk to you about.

1) How you’ll manage your investment property

It’s all well and good buying a property that meets our requirements, but if you can’t put the resources into dealing with it, things might go sour quickly. We’ll ask questions like, do you have the time and financial backing to carry out renovations prior to renting? Or do you have the time to manage tenants or the ability to pay a property manager?

Of course, we’ll also be asking how much you intend to put down as a deposit, and what that means for your ability to invest in the property going forward. We might be able to suggest ways to adapt your strategy, balancing getting the best mortgage rate versus maintaining investment power.

2) Calculating return on investment in property

There are lots of variables to consider when it comes to calculating your return. How much you profit doesn’t only depend on the market. It also relies on what you’ll do to keep increasing the value, or what your strategy involves.

Some people buy property to fix up and sell quickly. Others buy property that should increase in value over time, benefitting both from rental income and capital gains when they sell. However, this might mean you’re doing something called negative gearing, and need to be in a suitable financial position in the first place to make this work long term.

3) Understanding rental yield and actual profit

It’s essential that you understand how to calculate rental yield correctly so you don’t end up out of pocket. In essence rental yield is the amount you paid for a property divided by the annual rental income. Multiple this by 100 to get a percentage yield.

However, the rental yield percentage alone doesn’t tell you how much you pocket from your investment. You also need to calculate essential expenditure, like mortgage payments, maintenance and insurance. Compare this to what you can claim on your tax return to get a more accurate idea of how your investment affects both your day-to-day and long-term finances.

How to maximise your property investment strategy

This may all be old news to those who have bought a residential investment property - but are you sure that your investment plan is offering the highest returns possible?

Buyer’s agents are vital partners in your purchase decision , from first selecting the investment area to negotiating the best possible price, Property Home Base can offer guidance on how to purchase a property that matches your investment goals and your investment strategy and maximise its effectiveness:

Consider how you can raise the value of your investment property. Does your house need to be brought up to date with a bit of redecorating? Something as simple as a fresh coat of paint and new carpet can increase your chances of attracting the right, long-term tenant/s. Would an extension, adding an additional bathroom or expanding a kitchen, be worth the time and money? Whether getting ahead of the competition or matching neighbourhood trends, being proactive about maximising your dwelling’s desirability is crucial to giving yourself a pick of high-quality tenants. In doing so it’s essential not to over capitalise, we can advise you on the right balance.

Your property management responsibilities can quickly get on top of you, especially if you own more than one dwelling. The associated expenses of these activities also mount up if left unchecked, reducing your rental income. A good property manager helps to relieve this burden by taking over day-to-day tasks. As Property Managers typically charge between 5-10% of your monthly gross property income (although prices can vary), you will need to decide if this expense outweighs personal time and financial costs. We can assist you in finding a good property manager that suits your needs and budget.

A Buyer’s Agent/Buyers Advocate ensures that you buy a residential property that suits your exact financial and investment requirements. Without this impartial, specialist advice, how can you be sure that you have found the best property to maximise your returns? Our Strategic Property Investment Service combines high tech nationwide research and analytics coupled with expert analysis, review and negotiation. Combining technology with the human touch to ensure a consultative experience tailored to your strategy.

Property Home Base: Specialist agents for your Investment plans

Buyer’s Agent/Buyers Advocates are instrumental in finding your perfect residential investment property. But at Property Home Base, we take this commitment even further. Our team are called Buyers Advocates because we work for you and our most important goal is to match a dream property to your precise requirements.

We are also committed to service on your terms - life can get in the way of making a 9-5 appointment. With our help, this won’t stop you from buying the ideal investment property.

We offer a free one-hour consultation where our Buyers Advocate learn all about your needs and Investment goals, and then offer a personalised strategic solution on how you can reach them - book one today !

Home Buyer Boot Camp Webinar - Book Now !

Fri, 13 Nov 2020 04:02:37 GMT

Real Estate Agents work for their Sellers, so it can feel rather daunting when you enter the marketplace on your own.
Property Home Base specialise in working with Home Buyers, and we have created this BOOT CAMP to train you in some of the basic skills that you will need to know when searching, inspecting, doing your due diligence and most importantly NEGOTIATING to buy your home.

Whilst all of the predictions during the Covid lock down said that the Melbourne property market was going to drop somewhere between 15% to 40%. If your loan has been PRE-APPROVED, and you have been out in the marketplace searching, then you would already know that this is NOT the case.

In fact, quite the opposite.

Most suburbs across Melbourne have a problem with their housing market right now. The problem is supply. It is simply not meeting the demand. More buyers than homes on offer = rising prices. You may have experienced this first hand. At some point in your buying journey, you will begin to see that every other buyer out there is your competition. At Auctions, there is a “winner” and a “loser”, and sometimes, many losers. It feels like war.

"By failing to prepare, you are preparing to fail.” -Benjamin Franklin

Be prepared. We will be diving in to some tough questions that you may not have thought about in your preparation. The answers to these questions might save you months and months of wandering around out in the marketplace and most importantly - MISSING OUT - on properties that you find and really want to buy. Don’t let this happen.

Bring all of your questions to the Webinar. Property Home Base has a promise. We are here to save you time, heartache and money.

Depreciation Schedule ? Here's a special offer.

Wed, 13 May 2020 05:00:05 GMT

As 30th June approaches it's a good time to access whether you should have a Tax Depreciation Schedule for your Investment property. A Depreciation Schedule can be an important tool at Tax time to maximise the benefits of owning an investment property.

The below bullet points are an outline for qualifying the eligibility of a property for depreciation:

Brand New Constructed Properties
Properties Built Post 1987
Substantially Renovated Properties
Properties Purchased & Rented Prior To 9th of May 2017

If you think your property qualifies and your Accountant thinks you'll benefit from a Depreciation schedule then we have a special offer for you.

Our friends at Duo Tax Quantity Surveyors are extending their MAYSAVER discount on tax depreciation reports to our clients coming into the end of financial year. Their aim is to educate investors and landlords about depreciation on rental properties and provide them with extra tax deductions to help boost their tax refund. Here is a handy link explaining tax depreciation and the benefits involved. If you need further information call Dylan Long to discuss on 0422 636 773.

For the month of May, any clients purchasing the report before midnight on the 31st May can purchase the schedule for $525 including GST (RRP $700). You can take advantage of this offer by clicking on the Depreciation Order Form Link below. This will lead to an assessment as to whether your property is eligible for Tax Depreciation benefits. You are not locked into purchasing the report by completing the Order Form.

As always we do not take referral fees from this and offer it purely as a good deal for our Investor clients.

Is Now A Good Time To Buy Property ?

Wed, 13 May 2020 04:56:44 GMT

Is now a good time to buy?

History shows us that after each Global disruption, there has been an increase in property prices. Whilst we are certainly in "un-chartered waters", there is no reason to suggest that this time will be any different. The market has already lost around 10% in most areas, potentially with more to drop. The pitfall is that everybody tries to pick the bottom of the market to buy. Unless you have a crystal ball, the only time you KNOW that the market has bottomed out for sure.....is when it begins to bounce back up. Once that happens, EVERYBODY comes back in and then often times you have missed the opportunity.

So for those of you that have a secure job, NOW is the time to get your finances in order. We can direct you to some fabulous Mortgage Brokers and Financial Planners that will assist you to put your plan in place. Now is a great time to move UP in the market - from an apartment to a townhouse, or from a townhouse to a home with land. To move closer into the CBD or closer to family. It will also be a good time for investors. But first, you must get yourself ready to buy.

How Buyers Can Lose Money In A Buyers Market…

Thu, 30 Apr 2020 04:53:18 GMT

Just this week, we received a call from a very distressed woman that had done just that. Here is what happened…

Why would anyone use a Buyers Advocate? First of all, it is important to know that not ALL Buyers Advocates or Buyers Agents are the same..........

Yes, they all must have their Real Estate Agents Reps Licence, but that is the ONLY qualification that the Real Estate industry requires. You could get this in a matter of weeks doing an online course, and many are doing just that right now. There are many Buyers Agents and Buyers Advocates that have not EVER worked in Real Estate ever before - and some have not even purchased their own home. How can they possibly guide you and direct you to your best outcome? You may find that you actually know more about Real Estate than they do. We are proud of the fact that ALL of the Buyers Advocates/Buyers Agents on our Property Home Base team have worked previously worked as selling agents in Real Estate. Nothing can replace industry experience and knowledge. Having negotiated and purchased on literally hundreds of homes, our Team brings this level of experience to YOUR buying Team.

Besides our level of experience, our FEE is the other thing that makes us very different. We do NOT charge a percentage of the purchase price of your home or investment. To us, this seems like a direct conflict of interest. We are there to help save you time, heartache and MONEY. If you are paying a Buyers Advocate
a percentage,…. that means if you spend more…….they make $$ more. Our LOW Flat-Fee service ranges from $3,500-$5,000 for First Home Buyers - up to $9,545 for our National Strategic Property Investor service. To see all of our services and fees, go to:

However, some buyers want to go and try to do it on their own. This is understandable, but often times home buyers and investors can get wrapped up in liking the Agent and trusting the Agent, and forget who the Agents are actually working for.... They work FOR the Vendor! Real Estate Agents are paid to take every dollar that they can from the Buyers. That is their job! Whether you are buying an investment property, or you are a home buyer, entering the property market without an expert on your Team, means you run the risk of losing potentially thousands of dollars.

First-Home Buyers Struggle To Crack Improving Melbourne Property Market

Wed, 31 Jul 2019 04:44:10 GMT

Melissa Heagney & Elizabeth Redman reported in the Domain on July 27th, 2019 that "First-home hopeful Erin King was outbid at auction for an Essendon unit by just $500." ... "With Melbourne house and apartment prices bottoming out and already starting to rise again, home ownership looks distant for some."

"Ms King, who has a deposit saved and pre-approval on a mortgage, faces tough competition in the improving Melbourne market and often sees at least 30 others at open for inspections."

"Buyers’ agent Julie DeBondt-Barker said many first-home buyers were looking for two-bedroom units near the city in suburbs like Essendon, St Kilda, Collingwood or Richmond.

“They’re all looking for the same thing,” the director of Buyers Home Base said. “They’re turning up to inspections with 40 other people. When it goes to auction that’s driving prices up.”

Some are compromising and choosing a one-bedroom instead, which she advises against because capital growth prospects are weaker than in a larger unit."

You can read the full article here ... https://www.domain.com.au/news/im-over-it-first-home-buyers-struggle-to-crack-improving-melbourne-property-market-863236/

Low interest rates forcing home loan rule changes

Wed, 22 May 2019 04:41:20 GMT

Killian Plastow reported in The New Daily on May 21st, 2019 that "Hopeful house hunters will be more likely to get a home loan and even borrow larger sums under new rules proposed by the financial regulator."

"Currently, lenders assess a borrower’s ability to repay their loan by assuming an interest rate “comfortably above” 7 per cent, regardless of the actual interest rate available at the time of lending, to create a buffer in case rates move."

"The regulator proposed lenders set their own serviceability assessment guides, recommending that serviceability be assessed against a rate 2.5 per cent higher than the actual rate – meaning someone looking at a loan at 3.5 per cent would be assessed against their ability to repay their mortgage at 6 per cent, instead of the current 7 per cent or higher."

This means there is a lower barrier for borrowers to obtain mortgage finance.

In the article, Steve Jovcevski, property expert with financial services comparison site Mozo said "someone capable of receiving a $600,000 loan under the current rules could expect to borrow $50,000 to $60,000 more if the floor is removed".

"The change is not without its challenges though. Julie DeBondt-Barker, the founding director of Melbourne-based buyer’s advocate Buyer’s Home Base, said that while the change would “put a little bit more life into the market”, it would also place an added burden on buyers’ budgeting skills."

“Home buyers will be able to put a bit more money towards what they want to buy, but the downside I can see is that this puts more of the responsibility back onto the buyer as far as what their limitations are,” she said.

“I think buyers have to understand they’re being handed the responsibility to not over-spend and keep within their budget. They need to be cautious.”

The Sydney And Melbourne Suburbs Defying The Property Downturn

Fri, 22 Feb 2019 03:38:18 GMT

By Ingrid Fuary-Wagner, Financial Review
Updated Feb 21, 2019 — 9.43am,first published at Feb 20, 2019 — 11.00pm

Last year cemented the doom and gloom for homeowners in Sydney and Melbourne, the two capital cities leading the property market downturn, with property prices falling 9.9 per cent and 8.4 per cent respectively across the 12 months to December.

The perfect storm – a retreat of foreign buyers, tightening of credit by banks, increased supply and affordability constraints – created a significant shift in the market, causing a fall in property prices from their 2017 peak, but some pockets of Melbourne and Sydney have managed to defy the downturn.

Pockets of strength

In 2018, there were three Sydney suburbs where house prices experienced double-digit growth – Blakehurst, a waterfront suburb in Sydney's south, which grew 11.8 per cent, followed by Cremorne on Sydney's lower north shore with 11.1 per cent growth, and inner-city Surry Hills with a rise of 10.2 per cent, according to Domain Group data.

House prices in Cremorne, on Sydney's lower north shore, defied the downturn in 2018.

Thomas McGlynn, director of sales at The Agency, said all three suburbs had strong lifestyle factors and were very family friendly.

"They have appeal to a very broad cross-section of the market, and it's in those areas where houses have been under supplied, and if supply is down and demand is still relatively OK, good prices will still be achieved," Mr McGlynn said.

A few very big sales in those suburbs, especially those on tightly-held streets overlooking the water, which is the case in Cremorne and Blakehurst, can also skew the numbers, Mr McGlynn added.

Cremorne's median house price has increased in value by 95.4 per cent in the past five years, growing from $1.38 million to $2.7 million.

Sydney's unit market showed pockets of strength , particularly in some suburbs where apartments offered better value relative to houses for sale.

There were five suburbs across the city where apartment prices grew by more than 10 per cent: Kirrawee, which experienced 15.5 per cent growth, followed by Crows Nest (12.9 per cent), Elizabeth Bay (12.5 per cent), Rozelle (12.4 per cent) and North Bondi (12.1 per cent).

The Sydney suburbs where property prices fell most in 2018
By Ingrid Fuary-Wagner

Gavin Croft, head auctioneer at Bresic Whitney, said the strength in the Rozelle apartment market came as no surprise.

"What we started to see last year was an influx of buyers that moved from Sydney's eastern suburbs as they saw better value in the apartment market elsewhere. Even though we've only had two weeks of auctions, some of the strongest results have been in the inner west," Mr Croft said.

Meanwhile other suburbs, where there had been an influx of off-the-plan apartments, such as Newtown, Erskineville and Summer Hill had suffered considerably.

The harbourside neighbourhood of Elizabeth Bay, which has a median unit price of $1.1 million, and its Art Deco apartments always generated energy around sales campaigns no matter the strength of the market, Mr Croft said.

Where to for Sydney property in 2019? Experts expect further price falls
By Ingrid Fuary-Wagner

"Those quality art deco apartments that you see throughout Elizabeth Bay, they are always well-inspected and that generally translates to good sales. That little enclave has a real rhythm to it, there's a strong connection to the water, and all those features that people love about the Art Deco era can't be replicated now," Mr Croft said.

Affordable suburbs

While many of the more affordable suburbs on Sydney's fringe have suffered in the current downturn , in Melbourne, cheaper up-and-coming suburbs on the city's outskirts held their ground or, in some cases, grew substantially in 2018.

House prices in Kurunjang, 40 kilometres west of the Melbourne CBD, grew by 17.4 per cent over the 12 months to December, followed by the town of Gisborne, a 54-kilometre drive from Melbourne towards Bendigo, where prices increased by 16.9 per cent.

Access to affordable housing was clearly a factor in the areas where house prices grew the most, with all suburbs, except for Middle Park, recording a median price below $770,000.

The threshold for stamp duty concessions for first-home buyers, which are now available for properties under $750,000, were also likely helping to drive up the prices in those particular areas, said buyer's agent Julie DeBondt-Barker, of Property Home Base.

"A lot of those suburbs are on the outskirts – either in the north or west – and some of them like Wallan are nearly rural," Ms DeBondt-Barker said.
"There are a lot of first-home buyers in those areas as well as new Australians who have immigrated here and are hoping to get their toe in the market," she said.

"The reason [for the demand] would be the low prices and a lot of those places have pretty good infrastructure now ... some are newer suburbs like Truganina that have really boomed since infrastructure was put in there," Ms DeBondt-Barker said.

Many of the suburbs where apartment prices grew the most in 2018 were still close to the CBD, but traditionally unappealing neighbourhoods that first-home buyers were beginning to gentrify.

The median apartment price in St Albans grew 17.2 per cent to $422,000 followed by Frankston (14.1 per cent), Pascoe Vale (12.7 per cent), Bentleigh East (12 per cent), Carrum Downs (11 per cent) and Werribee (10.6 per cent).

"St Albans is still very close to the city but missed the growth at the time of the boom," Ms DeBondt-Barker said. "It had a stigma attached to it, but some some first-home buyers are saying they will move in and make it nicer.

"Frankston also has a lot of stigma still attached and Pascoe Vale is a suburb that seemed to remain invisible during the boom and kept under the radar."

Buyers Home Base - Emili & Aaron with Mark Kenny

Fri, 08 Feb 2019 03:34:04 GMT

In this episode, First Home Buyers Emili and Aaron who, under the experienced guidance of our Advocate Mark Kenny, have just secured their PERFECT home.

Hear what they have to say about their experience.

Anna Aoun Finds An Off Market Property For An Overseas Buyer

Fri, 08 Feb 2019 03:31:46 GMT

Congrats to our overseas Buyers and really well done on the Teamwork with RT Edgar RE to create this purchase by locating an off the market purchase for our Client!

Great work Anna Aoun!!!

Wonderful Job David Quinn Helping Sylvia Buy Her Home

Fri, 08 Feb 2019 03:28:36 GMT

Are you putting a lot of time and energy into searching for your next home?

Are you a bit “over it”? Sylvia found the answer!

See what she has to say......

What Can A Buyers Advocate Or Buyers Agent Do For You?

Fri, 08 Feb 2019 03:26:17 GMT

Julie DeBondt-Barker and Mortgage Broker John Ng, talking about what a Buyers Agent can do for you.

We had a great catch up with John Ng from Money Jar Concept who wanted us to let his followers know all about what a Buyers Advocate is, what they do, where they do it and some good tips along the way!

Thanks for the opportunity to speak with your audience John!

Anna Helps First Home Buyers save Time Heartache and Money

Fri, 08 Feb 2019 03:23:09 GMT

Congratulations to Andrew & Annabella who just purchased their FIRST HOME ???

Well done Anna on saving them time, heartache and money. Great result.

Perfect prezzie just before ? Christmas too! ????

Guy & Karin speak about the guidance of Mark Kenny from Buyers Home Base

Fri, 08 Feb 2019 03:19:34 GMT

Supportive parents find Mark Kenny (Buyers Advocate) to assist their children in purchasing their First Home.

They are so happy that they did!

Here's what they have to say - from a parents point of view.....

How A Buyers Advocate Can Help You Build Your Property Portfolio

Wed, 10 Oct 2018 03:17:00 GMT

In this episode, we speak to Julie DeBont-Barker. After enjoying 10 successful years at selling Real Estate, Julie decided to “level the playing field” for Buyers.

Shocked to find the market full of commission based Advocates (a direct conflict of interest for the Buyers), Julie set out to create Australia’s first low flat fee Buyers Advocacy service.

Julie and her Team all work from a home base keeping overheads low and passing that savings onto the Buyers. Leading from the front Julie creates a culture of integrity and honesty. She is absolutely passionate about saving Buyers time, heartache and money.

When Julie is not hard at work running Property Home Base or helping you find your ideal property, you will find her travelling with her husband to visit her children and grandchildren, playing with their dog Jazzy, or enjoying good food, wine and music with friends.

Can Australia's property market survive a price fall?

Sat, 30 Jun 2018 04:07:14 GMT

Signs the nation's red-hot housing market of the last few years was starting to cool according to the Financial Review on June 29 2018.

Jacob Greber & Michael Bleby reported in the Financial Review that Landry and Kirsty Mungly aren't letting the deepening east coast property slump shake their confidence.

Instead, the professional couple have doubled down – parlaying a $160,000 capital gain over the last four years on their home in Clyde North, 60km south east of Melbourne, into a $900,000 purchase of a three-bedroom Mulgrave townhouse nearer the city's CBD that will halve their commute.

The trigger? Signs the nation's red-hot housing market of the last few years was starting to cool.

Landry and Kirsty, say the slowdown gave them a chance to upgrade more easily than would have been possible 12 months ago, when annual price gains in Melbourne were running at almost 14 per cent – a seven-year high.

"Homes were getting passed in or being sold in our range," Landry says. "There are opportunities in the market."
It's a bullish sentiment built on an often deep-seated notion that property downturns are nothing to be feared for long-term buyers. Indeed, they are to be expected and seized upon.

"Now is the time to jump up," says the Munglys' buyers' advocate Julie DeBondt-Barker, the director of agency Buyers Home Base.

"If you're quick you can cash in on the good equity you've made over the last four to five years and take that equity to move yourself closer to your desired location or your dream home."

Few people have had cause to genuinely question such advice. Strong population growth, a dearth of well-located homes near jobs and transport infrastructure, as well as ultra-easy monetary policy and a tax system that elevates home buying over pretty much any other form of investment have kept prices rising over the long run.

The "wealth effect" from all this price action has been considerable. It has inoculated Australians from much of the pain caused by the end of the resources boom.

But is all this breezy confidence justified? Is the current period of falling prices a temporary dip, or does it foreshadow something else more dramatic? Is the long bubble about to turn into the cataclysmic crash so frequently forecast by the doommongers?

Weekly auction clearance rates have collapsed in Sydney and Melbourne to well below 50 per cent from a very peaky 80 per cent rate a year ago.
Investor activity has contracted sharply, and the fallout is on display.

So far the price reversals that have happened have been reasonably orderly.

Something of an analysts' consensus has congealed around the idea the peak-to trough price fall will be no more than 10 per cent.

A key reason is that the nation's fast-growing population still doesn't have enough homes – Stephen Anthony at Industry Super Australia estimates the national shortage at around 350,000 dwellings, even after the recent surge in unit construction of the past three years.

First home buyers gain a foothold in Sydney and Melbourne

Fri, 27 Apr 2018 04:03:59 GMT

Isabelle Lane Property Reporter from the New Daily reported on April 27, 2018, that First home buyers are gaining a foothold in Sydney and Melbourne

(Original: https://thenewdaily.com.au/money/property/2018/04/27/first-home-buyers-surge-sydney-melbourne-housing-markets-soften/ ).

Isabelle reported that ... "Incentives designed to help first home buyers gain a foothold in the increasingly unaffordable Sydney and Melbourne housing markets appear to be helping."

"Australian Bureau of Statistics data shows a surge in first home buyers in Sydney and Melbourne since stamp duty exemptions took effect on July 1 2017."

"Buyers Home Base director Julie DeBondt-Barker is a Melbourne-based buyer’s advocate who specialises in helping first home buyers."

"Pretty much all first home buyers are motivated by first home owners grants and the stamp duty concessions,” Ms DeBondt-Barker said.
“Without that assistance they wouldn’t be buying.”

While the housing market in Sydney and Melbourne may have softened recently, Ms DeBondt-Barker says the competition among first home buyers remains fierce.

“The softening isn’t happening so much in the areas where first homebuyers are, such as the newer suburbs. It’s happening in the blue chip areas,” Ms DeBondt-Barker said.

“The further out you go there is a lot of competition still.”

Ms DeBondt-Barker advises first home buyers – who are often “very emotive” – to be realistic about what they can afford.

“Be absolutely sure that you can afford it and that it’s not going to disrupt your lifestyle, and if the interest rates go up it’s not going to sink you,” she said.
You can read the full article here: https://thenewdaily.com.au/money/property/2018/04/27/first-home-buyers-surge-sydney-melbourne-housing-markets-soften/ .

Stamp duty cuts hurt first-time home buyers

Sat, 07 Apr 2018 04:00:40 GMT

Michael Bleby reported in the Australian Financial review on April 7, 2018, that recent Stamp Duty cuts have hurt first time home buyers

(Original: http://www.afr.com/real-estate/first-home-buyers-battle-higher-prices-prompted-by-last-years-stamp-duty-cuts-20180405-h0yepj ).

The key points from this article were:

First home buyers have more money available, but that’s pushed up prices.
Political leaders in two biggest states accused of simply playing politics.
Stamp duty cuts made last year to help first home buyers in Victoria and NSW are making it harder for them by pushing prices higher.

He went on to report the following:
Stamp duty cuts for first home buyers made by the Victorian and NSW governments in July last year are now coming back to harm the very home buyers those state’s political leaders said they were designed to help.

The stamp duty change, which eliminated the transaction tax on homes worth up to $600,000 and cut it on prices up to $750,000 was a disaster for Ms Lev, said her buyers agent Julie DeBondt-Barker .

‘‘It made it worse,’’ Ms DeBondt-Barker said. ‘‘She’s always chasing it.’’

Australia’s east-coast dominated housing market is slowing and prices are falling overall in the two largest cities. NAB, the fourth-biggest residential lender on Friday predicted a national fall of 0.8 per cent in house prices, reversing its earlier expectation of 0.7 per cent gain. But in Melbourne, while prices have flattened in blue-chip areas, the picture was very different in more affordable suburbs, Ms DeBondt-Barker said.

‘‘If you go to Epping, Werribee, Tarneit, Cranbourne – Frankston’s gone nuts – if you go to the outer suburbs, the only ones first home buyers can get into now, it’s absolutely soaring and is still going up,’’ she said.

The policy does assist some buyers in the first instance by cutting the stamp duty bill they have to pay on their purchase. On a home with a price tag of $650,000, for example, stamp duty is cut from $34,070 to $11,356, giving the buyer more money to spend up front. For a property costing $600,000 the $31,070 bill they would otherwise pay is eliminated. But that – along with other policies such as first home buyer grants – simply means the first group of buyers have more money to throw at vendors, pushing the overall market higher for subsequent waves of buyers.

Ms DeBondt-Barker, a principal of Buyers Home Base, says political leaders of the two largest states were just playing politics and not genuinely trying to help first-time buyers.

‘‘It was a political move, if anything,’’ she said. ‘‘Anybody in the field thought ‘That’s ridiculous, it’s never going to work’. It was obviously going to go this way.’’

You can read the full article here: http://www.afr.com/real-estate/first-home-buyers-battle-higher-prices-prompted-by-last-years-stamp-duty-cuts-20180405-h0yepj .

Calling all Baby-Boomers & Down Sizers!

Sun, 26 Jun 2016 03:57:12 GMT

New "Seamless Service"
Are you thinking of Selling your existing home, AND then Buying a new one? Before you start talking to the Real Estate Agents and interviewing them, talk to us.

We'll become your own personal professional that oversees the entire process of both selling and buying for you. From interviewing and selecting the right Agent to sell your home, to negotiating the very best price for your new home….and everything in between. All you have to do is start packing. Sound too good to be true?

See what Graeme and Maree thought of our “SEAMLESS SERVICE ADVOCACY"!

Buyers Home Base is now a Seamless Service Advocacy that takes away the stress of both Selling AND Buying.

From interviewing the Agents to settlement on your new home, we are there every step of the way ensuring that our Clients are getting the very best result.

Here’s some of what we will do for you and your clients:

We will Interview potential Sales Agents (with or without you being there), who then will report directly to us, throughout the Selling campaign, so no games can be played.
We will appraise your existing house to ensure that the appraisal by the selected Agent is not inflated. Getting your numbers right is critical for your change-over and your next purchase.
We then oversee the sale, managing the Agent and holding them to account to do what they said they would do.
We are there during all negotiations and/or the Auction.

Meanwhile, from the brief that we have been given about the next home:

We will search, inspect and advise you about your next home.
We liaise with all the other professionals to make sure it is a safe and smooth transaction.
All of negotiations and/or bidding at Auction will be completed by us.
We will align Settlement Dates so there is no gap and no stress.

For more information on our new Seamless Service - please call us on 1300 882 842 or contact us by email !

We've now added an information display at the Home Innovation Centre, so that when Home Owners are looking to buy a new property, they know that we are here to help them save time, heartache and money.

EOFY: And That’s A Wrap…

Sun, 19 Jun 2016 03:53:46 GMT

As we approach another close to the financial year, we look at the crazy Melbourne property market and ask ourselves, “where to from here?”

2015-2016 has seen historically low interest rates – still holding, and the price of property still rising.

Many First Home Buyers are taking advantage of these low interest rates, and are stepping over the $600,000 (for existing properties) threshold and are forfeiting their Stamp Duty savings.

The median price of a home in Melbourne now is above $700,000.

This year saw changes in foreign investment, which slowed down the market to some degree…..but mainly in the areas that have highly sought after schools.

As autumn spilled into winter, any hope of the house or home prices slowing down were shattered by the low stock levels.

Clearance rates are still soaring and home, house and property prices are still moving upwards.

So, when will this bubble burst?
At this stage there is no obvious end in sight.

More stock coming onto the market will help stabilise it. A new government perhaps? Changes to negative gearing? The fallout from Brexit? Possibly. We will all have to wait and see what the new tax year and the changes that may come will provide.

But for now, the best advice Buyers Home Base can offer is that if you are still renting – save your money for a deposit. And if you are looking to invest, there are still lots of great opportunities out there!

We're now at the Home Innovation Centre.

Fri, 17 Jun 2016 03:51:38 GMT

Now there's a permanent place for people to get inspiration on their home renovations. It's called the "Home Innovation Centre" and is located at 111 Cranbourne-Frankston Rd, Frankston. They are open 7 days a week.

The Home Innovation Centre features a wide range of home building, renovation, design and styling products.

Buyers Home Base now has a display in the centre and is attracting people who are at the early stages of thinking about selling. As many people decide to renovate their homes before selling, our involvement at the Home Innovation Centre enables these people know that we are here to help them save time, heartache and money.

Find out more - Visit their website .

If you fail to plan, you are planning to fail.

Wed, 15 Jun 2016 03:49:11 GMT

The End of Financial Year (EOFY) is a great time to review - or start a plan.

Whether you are a First Home Buyer - or an investor, now is a good time to take stock of your financial situation and plan ahead.

Here are our tried and tested tips that we provide to excited First Home Buyers to help get them started.

Create a budget and then stick to it. Know where your money is going each week.
Start – or maybe – restart a structured saving plan to get your deposit together. You will need to show the banks that you have a good saving habit when you finally get there and are applying for your home loan.
Find a Mortgage Broker that you feel comfortable with and who will explain all of your options. Is gifting from a parent an option? What is LMI and how does it affect me? Should you consider debt consolidation? What about getting rid of your credit cards or reducing the credit limit on them? Get the facts.
Set a savings target for your deposit and then watch it grow!

Settlement before June 30? It’s possible!

Mon, 18 Apr 2016 07:00:55 GMT

If you’re time poor and think settling BEFORE June 30 this year is out of reach… think again!

Every year, right before the end of the Financial Year, Mortgage Brokers brace themselves for the storm! The storm starts when Financial Advisors, who understand the value of investing in property because of the various tax reduction benefits, advise their clients to purchase an investment property before June 30.

Buyers Home Base was founded by helping First Home Buyers. However, because of our fantastic results, many of our clients are now referring their friends to us. So now, we’re also working for investors and people purchasing their second, third or subsequent house or property.

If you’re looking to purchase and settle before June 30, increased competition and price pressures can make meeting this deadline even more challenging. By having Buyers Home Base on your side, you’ll place yourself ahead of the competition.

Time poor investors and property hunters can put themselves ahead of the rest.

If you’re an investor looking for a property, or someone you know has been advised to “go out and purchase an investment property before June 30”, then there’s no time to waste.

With only around 40 shopping days left, to maximise your chance of settling by June 30 – your first move should be to call us 1300 882 842 or 1300 882 842.

See you at the HIA Home Show!

Mon, 18 Apr 2016 06:56:47 GMT

It’s on this week – from Thursday April 21 thru Sunday 24 at Jeff’s Shed (Melbourne Exhibition Centre).

Opening times are Thursday 10am - 6pm, Friday 10am-9pm, Saturday 10am-9pm and Sunday 10am-6pm.
Come visit us at Stand S-16, on the outside wall. It’s the perfect opportunity to discuss your plans, and see how we can help you out of the Home Buyer’s maze. Want discounted entry tickets? Find out how - here!

We are very excited to be the only Buyers Advocates featuring at this year’s show!

If you have any clients, friends or family members that are thinking about buying a home and would like some good advice, please tell them to come and see us there.

If they book a FREE 1 hour consultation at the show, they will go into a draw to win a weekend away at a luxury hotel and a bottle of champagne! Don’t miss this great opportunity to receive expert advice, and more importantly, the keys to your new house faster – for less!

Psst: Here’s another tip: Buy your entry tickets online, before the show and save! Full details here !

Look what's getting bigger! Melbourne Is!

Mon, 18 Apr 2016 03:45:10 GMT

For a long time, Sydney has held the title of Australia’s largest city. That’s all about to change.

ABS data shows that Melbourne's population grew by 1,760 people each week during the 2014-15 year. In fact, more people are moving to Victoria, than Queensland!

Such rapid growth is great for the economy [and house prices], however, governments must invest in infrastructure to cope.

The Victorian Andrews Labor government has revealed its plans to support such rapid population growth. The government is targeting long-term liveability, and will invest heavily in education, health and infrastructure

The State Minister for Planning Richard Wynne said, "The Andrews Labor Government has a plan for smart growth. We need to make sure housing is available to everyone, delivering housing options throughout the city with the access to education, health services and the transport people deserve."

The state government is reviewing its 'Plan Melbourne' document, with a view to placing greater emphasis on housing affordability and climate change. Also under review are widely criticised residential zoning policies.

The government is also working on plans for 640 hectares of land within 5 km of the Melbourne CBD, growing the population close to the city centre, rather than contributing to urban sprawl. Plans for the Fisherman’s Bend area are also underway.

The Labor government has released a long-term infrastructure plan, 'Managing Growth', for Melbourne's outer suburbs.

"We are the world's most liveable city," said Wynne. "People are naturally drawn to Melbourne, and we need to plan accordingly."

What this means to you!

With increased numbers, comes increased competition, which can result in increased prices [of course, we’re talking houses here]. That’s why having a Buyers Advocate on your side, can help you purchase your home sooner at the best price on the market. Call us on 1 300 882 842 or 1 300 882 842 or make an enquiry with us here.

Additional information from: www.therealestateconversation.com.au .

How Buyers Home Base is helping Mortgage Brokers all across Melbourne

Mon, 21 Mar 2016 05:54:25 GMT

We have been creating great relationships with several Mortgage Brokers all across Melbourne quite simply by bringing their Pre-Approved clients back to them much, much sooner.

having purchased their home. The average reported conversion rate from them giving their Clients a Pre-Approval - to actually purchasing a home has gone from 50% to 95%.

That means that you will get paid for the work that you are doing when preparing the Pre-Approvals 45% MORE of the time.

When a Buyer receives their Pre-Approval (especially First Home Buyers), they enter the marketplace very excited … but very quickly can become disillusioned and confused. We help “hold their hand” through the stages of purchasing a home, advising and directing them through the maze and bring them back to you sooner. This also avoids losing them altogether if they finally find a home that is being sold by an Agency that has an affiliation with, or has a Mortgage Brokering arm to their Agency. Agents will usually try to sway the Buyer to use this Broker that is within their company (as many of them get kickbacks for doing this), and you may never see them again. This does not happen when we are with them. We bring them back to you, the Mortgage Broker who did the work and helped them get their Pre-Approval.

Not only is this of an obvious advantage to YOU the Mortgage Broker, but also to your Clients who finally purchase their dream home or investment property. We are viewed by these Mortgage Brokers as a value add to their business. It truly is a Win/Win/Win for all parties.

To take this a step further, we are now doing First Home Buyer Seminars with Mortgage Brokers to not only educate the marketplace, but to develop deeper relationships with clients and potential clients.

If you would like to know more about how we can work with you to increase your conversion rate of Pre-Approvals to completed purchases, or have an interest in hosting a First Time Home Buyers Seminar, please contact Julie DeBondt-Barker, Director of Buyers Home Base on 0424 162 818 .

Making Sense of Stamp Duty

Mon, 21 Mar 2016 05:46:47 GMT

What is Stamp Duty?

In real estate, Stamp Duty is paid by the purchaser of a property and determined by the value of that property, the purpose, the type of property and most importantly where it is located.

Like the First Home Owners Grant, stamp duty is administered on a state level and so how much you pay depends on the current state legislation.

Am I eligible for a concession on stamp duty?
We all hate to pay any tax. Unfortunately, it is unavoidable and we just have to live with it.

Stamp duty is a basic tax that isn't just limited to real estate - other asset sales such as cars and businesses have to pay this tax as well.

It is especially difficult for the first home buyer. You finally save that deposit, you get your loan pre-approved, you find the property you love and can afford it. You buy it and then you hear about this extra cost that you have to pay. Not a nice surprise. This is why we recommend that you be well informed to help eliminate those nasties. If you have been dealing with a knowledgeable and experienced mortgage broker, you will know it, because, the broker will be more than willing to help you along the way and keep you well informed.

When do you pay Stamp Duty?
We are asked this question all the time. Stamp duty has to be paid within 30 days of the property transaction. Usually at the time that you settle on your new home. For most buyers, their conveyancer or solicitor will handle the transaction of funds.

Who do you speak to about Stamp Duty and any changes?
Mortgage brokers know the latest changes that state governments have in store for stamp duty and can advise if a grant is ending or coming up soon that may save you money. If you’re eligible for any concession your mortgage broker will take care of any paperwork involved.

You can use a Stamp Duty Calculator to determine how much you may need to pay, but to know exactly what you may or may not be eligible for you should speak to a professional or an expert such as an experienced mortgage broker.

Are you entitled to a stamp duty concessions?
All transfers of land or all real estate property that is sold or gifted - will be charged stamp duty. Depending on your individual circumstances, there may be concessions available for;

First home buyers
Farmers
Off-the-plan buyers
Buyers who purchase the property as owner occupiers
Pensioners

Speak with an expert in the field such as a Mortgage Broker who will not only tell you what’s available today, but they will also advise on which grants and concessions could be ending or starting soon.

If you would like to be referred to one of our recommended Mortgage Brokers or a Financial Planner, please call us on 1300 882 842
For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry.

When persistency pays off!

Mon, 21 Mar 2016 05:37:15 GMT

The offer was rejected, as the Agent advised their Vendor it was best to take it to Auction. So, we kept searching the marketplace for them, but planning on attending the Auction if nothing else came along that was better. Nothing came along. Deborah & John really wanted this house.

On Auction day, we were the last bidders, but the property was Passed In as it did not reach the Reserve price that the Vendors had hoped for. We went in to negotiate, but still could not meet at a point that was acceptable to both parties. The Vendors were adamant on getting a price like the identical townhouse that had recently sold next door for $108,500 more than our Clients had offered. We walked away. Four days later the Agent received an offer from another buyer that was accepted - but there were conditions on the offer.

Due to the absolute persistence of our Advocate Adie Bradley, who still continued to stay in close contact with this Agent, we found out a few days later that the successful offer had fallen over due to finance. Adie was right there. She kept pushing for the Agent to go back and now get agreement on Deborah & John’s previous offer. She did this for two weeks, and FINALLY the Vendor accepted!.

So, can we say that we saved Deborah & John $108,500? Maybe. But what we can absolutely say is that expertise in negotiation and insider knowledge of the industry went a very long way in securing this home for our Clients. We are proud to say that we upheld our company promise which is to save Buyers time, heartache … and money.

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry.

Why this Mortgage Broker is glad he spoke with Buyers Home Base!

Mon, 23 Nov 2015 05:31:04 GMT

To be honest, as licensed Mortgage Brokers, we get a lot of calls from other businesses wanting to do work with our clients.

When we were recommended to Buyers Home Base by a financial planner, I wasn’t too enthusiastic - but I'm sure glad that we made the time to catch up!

Since we started referring our clients to Buyers Home Base only 5 months ago, we have achieved at least 7 successful purchases for our clients who have been continually frustrated by the auction buying process and the imperfect information available out there for home buyers. Buyers Home Base service represents excellent value to our clients when taking into account the overall cost of the transaction - paying a modest professional flat fee to stop you buying the wrong property or paying too much makes a lot of sense in my opinion."

"Not only do our clients feel comfortable with the qualified advice provided by Julie and her team of professionals, but they are also able to move forward much more quickly and spend less time being beaten at auctions and missing out on the occasional off market transactions. Best of all is their flat fee, which is exceptionally affordable for first home buyers (only $3,000 +GST)!

In short we have no hesitation in recommending Julie and the Buyers Home Base Team to our clients when they are out hunting in the Melbourne property market."

Bertrand Buffet - Licensed Mortgage Broker
AXTON Finance

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry.

BEWARE of Buyers Agent imposters

Thu, 19 Nov 2015 05:28:30 GMT

When considering selecting a Buyers Advocate, what things should you be looking for?

Great negotiation skills? Yes, of course. Good area and local market knowledge? Absolutely. Someone who is well connected with the local Real Estate Agents so you’ll also find out about any OTM (Off The Market) opportunities first? Brilliant.

Also ensure that they offer a low Flat Fee that is fair and that they do not charge a percentage. If a Buyers Advocate charges a percentage of the sale as their Fee, this means if you spend more, they make more. How does that work? This is a direct conflict of interest. In short, a percentage Fee doesn’t work for you……the Client.

But BEWARE!
Some Buyers Advocates enter the industry without having worked in the industry FIRST as a Selling Agent. Because they have no experience, they are no different from you in their skill set.

In Victoria, to gain a Certificate IV (Full RE Agents License), you MUST have a MINIMUM of 12 months employment working in the field before they will grant you a license. Unfortunately this is not the case in other states. So this means the Impostors with no actual Real Estate experience are jumping into our Victorian marketplace, as Victoria accepts other interstate licenses as “Mutual Recognition”. Victoria has not built a Rabbit Proof Fence to detour this from happening and to ensure we maintain a high level of professionalism within the industry.

So what can you do? How will you know?
Here is the questions that you must ask.

“ How long were you working as a Selling Agent before you became a Buyers Advocate?”
If you get a blank stare in return, then you have uncovered an Impostor. Here is our advice … No experience = No deal. Save your money and do it yourself.

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry.

Let’s take a look at Melbourne Real Estate in 2016!

Sun, 15 Nov 2015 05:10:28 GMT

We’ve just pulled the crystal ball out of the bottom drawer, dusted it off and thought we’d have a look at what may be in store for 2016.

Having said that, who could have possibly predicted this years activities? Interest rates going down to all time lows - and staying there. Property prices continuing to climb with clearance rates soaring - even through the Melbourne winter months. Changes for overseas investors are also starting to take hold.

So, where will we be in a year? Here's our summary, based on our extensive experience within the Real Estate Market.

Interest Rates: With the banks no longer following the RBA's interest rate cut lead, the RBA may be tempted to adjust the rate down again in December to motivate the banks to lower theirs. However, this may send a signal to the banks to raise theirs more. It's a bit of a balancing act right now. So our prediction is no change for at least 3 months.

Housing Prices: Whatever happens, 2016 won’t be as good to house prices as 2015. Here's why:

The Australian economy is slowing. Banking regulations targeting investors both local and overseas, and now owner occupiers too, are in full swing.
Population growth, key to demand, is slowing too.

Summary:
These key factors place pressure on housing demand. But that doesn’t necessarily suggest a crash is on the way either. The weaker dollar and low interest rates, will see 2016 waiver between slower growth to flattening out for most of the year and then a possible price decline by 2017.
For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry.

Will a crackdown on Foreign Investment work?

Tue, 07 Jul 2015 06:06:28 GMT

If you are not a permanent resident of Australia, and want to buy a home here, you must obtain prior approval from the Australian Government.

There are a few exceptions to these rules [as outlined on the Australian Government Website [ http://www.australia.gov.au/topics/family-home-and-community/housing-and-property ].

The Australian Government believes that foreign investment in the housing sector should increase the supply of homes. Foreign Investors, by law, have to apply for a permit to purchase in Australia. This policy is designed to channel foreign investment into increasing the supply of new housing.

What happens if the correct permits have not been obtained?
A foreign investor may have to cancel the contract or sell the new property — potentially at a significant loss. Fines or imprisoned can also result.

Recently, the government announced a crackdown on foreigners who have bought Australian properties without proper approval. The “Guardian.com.au” announced, on May 5, that the Government has given Foreign Investors who have purchased without approval, until the end of November to come forward or face penalties.

Under a crackdown on foreign property investment, new penalties include fines of more than $100,000 and up to three years jail for individuals and fines of more than $600,000 for companies.

The package announced by the government on also includes a range of new fees for all foreign acquisition applications and new lower review thresholds for foreign purchases of rural land ($15m, down from $252m) and agribusiness ($55m, down from $252m).

On June 29, The “Herald Sun” reported that the government was also looking into making further crackdowns on Foreign Home Buyers who negatively gear their investment properties, with new figures showing overseas investors dodged paying $75 million in tax in just one year.

Australian Taxation Office figures show 52,670 foreign investors declared a rental income in 2012-2013, the most recent figures available. Almost half claimed they made a loss — most through negative gearing.

What does this mean for our market?
If the government follows through with their planned crackdowns on Foreign Investors who purchased without the correct permits, theoretically, there should be an increase in new properties available. The number available depends on the number of foreign investors identified and forced to sell their home.

The same impact could apply for planned changes to negative gearing – if this occurs.

On June 9, 2015 “ABC.com.au” reported that investigations are underway into 195 cases where foreign investment rules on residential real estate may have been breached.

Perhaps the combination of the foreign investors who do not obtain permits, a change to negative gearing laws for foreign investors may have an effect, but it seems, a far greater number than 195 properties nationally, will be required to have any impact on housing affordability and availability.

The bubble continues to grow. The best we can see in the near future is possibly a slow leak…..that may result in the market evening out on a plateau.

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry .

How Mortgage Brokers are completing more Home Loans

Tue, 07 Jul 2015 06:03:49 GMT

Mortgage Brokers all over Melbourne are discovering that we purchase property for their clients – FASTER. Before using Buyers Home Base, some Mortgage Brokers have waited a year or more for their clients to find a house.

We usually have a Home Buyer purchasing their new home within weeks – instead of months (and sometimes years!)

Once a Home Buyer is referred to us, we use our knowledge of the market, search for appropriate properties, utilize our keen negotiation skills……. and close the deal.

It’s not just a win-win situation, it’s a WIN-WIN-WIN situation.

Mortgage Brokers do a lot of work preparing their Clients Pre-Approval. Work that they may never be paid for if that same Client becomes enchanted with a property where the Real Estate Agent selling the property receives a “kick-back” for referring their buyers to another Mortgage Broker. The Buyer simply disappears into the property jungle – never to return.

Mortgage Brokers that are affiliated with Buyers Home Base are quickly realising that we assist their Clients by building a strong relationship of trust, and then when they do purchase their home……we bring them back to you to complete the Home Loan process.

Integrity means different things to some - to us it means everything.

The team of Buyers Advocates or Buyers Agents at Buyers Home Base charge a low-flat fee of just $3000+gst for First Home Buyers and $5000+gst for all other Buyers. We won’t be influenced by other institutions or agencies. We can’t understand the rationale behind structuring our fees based on a percentage where we would make more from our Clients (that we are trying to help save money) – if they spend more. This just does not make sense to us. Our integrity is as important to us as finding suitable homes for our Home Buyers.

Speak to us today and see how we can help more new home buyers complete their finance with you.

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry .

Mortgage Brokers love Buyers Agents Buyers Home Base

Mon, 06 Jul 2015 05:53:26 GMT

Leading Mortgage Broker, Marissa Rock, from iRock Financial Group, explains how Buyers Agents, Buyers Home Base helps her close deals.

Buyers Agents , Buyers Home Base make us look good! Some new home buyers take months to find their ideal property.

Often their property search becomes confusing, as they're looking everywhere - with no direction and increasing frustration.

As a Mortgage Broker, we've already completed their pre-approvals and simply have to wait for them to finally purchase their property.

When the buyer's property search extend beyond six weeks, we recommend they contact Buyers Advocates or Buyers Agents , Buyers Home Base. Buyers Home Base gives direction to confused and stressed First Home Buyers. Plus, they help them find a property - fast.

Recently, a client had been on the property search for a year. We recommended they spoke to Buyers Home Base. Within a few weeks, they had purchased a property - at a great price!

We could then complete their finance.

Marissa Rock is a Director at "iRock", a boutique mortgage brokering business, providing personalised, professional approach to property finance.

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry .

Does property negotiation scare you? Then read this!

Sun, 05 Jul 2015 05:50:54 GMT

Rule #1: Everything is negotiable! A recent article on realestate.com.au provided some great insights into the art of negotiation.

However, we'll begin by adding one key negotiation tip that they DIDN'T include: Use a professional negotiator.

Real estate agents ARE professional negotiators. They are trained to negotiate the highest price for the seller. Real estate agents deal with selling property every day.

Why would you consider negotiating against a professional negotiator?

Buyers Home Base are highly skilled property negotiators who used to be Real Estate Agents. Our real estate negotiation skills can save you thousands. With skilled questions and disciplined suggestions, we level the playing field for you. When buying a house, there's more to negotiate than price. Settlement terms, conditions and inclusions can be negotiated on your behalf.

Prior to the establishment of the specialist first home buyer Buyers Advocacy business, Buyers Home Base, most First Home Buyers could not afford the luxury of having a professional negotiator on their side.

With the minimum Buyers Advocates fee of $7,000, most First Home Buyers were left out in the cold to identify a property & negotiate for themselves. Buyers Home Base changes all that with a low Flat Fee of $3,000 (NOTE: This fee is subject to change - Please refer to our current Buyers Advocacy Fees page for our current low, flat fees for first home buyers).

By using a professional negotiator , you’ll never be left wondering “Did I pay too much for this property?"

Understand negotiation is a process
Acknowledging the reality that negotiation is a two-way street can help make the process less daunting.
Putting yourself in the seller’s shoes can help you work out how to best play your hand. For example, why is the vendor selling? And how can you present the case around your offer, and best time it for a successful outcome?

Know the market
What you’re willing to pay for the property is only part of the equation.
Make sure you research current, comparable sale prices for similar homes in the same area before putting in an offer or bidding at auction.

Be confident
Put any fears and any negativity to the side. A confident, positive attitude is key in any kind of negotiation.

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry .
With Emma Sorensen. Former Editor of Property Portal Watch.

Seamless Service

Thu, 02 Jul 2015 05:46:16 GMT

Purchasing a property is tough. There are so many areas you need to be an expert in. Property inspection, negotiation , mortgage comparisons, are just a few of our included services.

Which are of these service receives the most positive feedback? Actually, all of them.

Buying a home
Our First Home Buyers constantly tell us they love our seamless service. They feel comfortable with our help and our network of experts that plug any gaps.

For a flat $3,000 [+GST] fee , First Home Buyers can have the Buyers Home Base team work with them to secure their property, sooner. They often pay less than they anticipated for their home.

Second, third and even fourth home buyers, plus Investment Property purchasers can experience the Buyers Home Base Buyers Advocacy or Buyers Agency seamless service as well. For only $5,000 +GST.

Selling your home
Once we have secured your next home - we also are happy to act as your " Vendors Advocates " to help you select the right Agent & to sell your existing home. We can save you time, heartache and money through the ENTIRE buying and selling process.

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry .

As Buyers Agents, Who Do We Help?

Tue, 02 Jun 2015 05:35:07 GMT

The spirit of Buyers Home Base will always be focused on helping First Home Buyers. We love helping them secure their first home – for less.

Because of the large number of clients referring their friends, we now find ourselves servicing an expanded market. Including investors and second home buyers.

Yes, we do help investors and existing home buyers purchase property in Melbourne. The difference between this group and our core group [ First Home Buyers ] is that investors and existing home owners are often not buying in the same area they are presently living in. They are also often time poor.

This means we spend more time travelling to research and inspect potential properties.

First Home Buyers typically complete a lot of the legwork themselves. They have the time to inspect the homes we recommend. They’re also buying from the heart, whereas investors need to crunch numbers and buy from the head.

We’re proud to officially launch our new service for second home buyers and investors. We’ll help them in their property search, negotiate on their behalf to save them time, heartache and money - just like we do for First Home Buyers!

Our New Service.
This new Buyers Home Base Buyers Advocacy or Buyers Agency service is available for all second home buyers and property investors, for the low flat fee of $5,000.

And remember, we will continue to offer our low flat fee of ONLY $3,000 for First Home Buyers! (NOTE: Our fees may change in the future. Please refer to the Buyers Agents Fee or Buyers Advocates Fees page for our current flat fees).

For a Free 1 hour Consultation, please call Julie on 1300 882 842 or use our contact us form to submit an online inquiry .