Top End Challenging

December 21, 2011 Leave a comment

Buyers are cautious & certainly price-sensitive

Times are good for buyers at the top end.

This is where prices have fallen further and faster than the wider market. However, owners with high price expectations are reducing their expectations significantly in order to make a sale and move on.

Instead of traditional high exposure marketing campaigns, a trend towards properties being listed quietly has recently emerged in capital city markets.

Owners fearing that a ‘no sale’ campaign might injure their chances of achieving the dream price have been reluctant to promote widely. However, despite weak auction clearance rates, properties in the upper ranges are still selling strongly post-auction, their marketing ultimately having generated the necessary enquiry.

While buyers are cautious and certainly price-sensitive, it’s tough selling a secret and statistics show that properties marketed by auction continue to achieve a sale in fewer days on the market.

With interest rates falling and the outlook positive, activity levels are anticipated to improve in 2012, although the very high prices of the past are unlikely to return quickly.

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Safe Decisions Can Make the Most of Your Holiday

December 16, 2011 Leave a comment

Stay safe this holiday season

People heading off on holidays should make sure homes are left safe and secure and to think carefully, if considering a holiday home purchase.

Holidays are great times for criminals to get to work if they believe a home is empty and it’s also a time when vacationers ponder their existence as they sit back and enjoy the relaxing lifestyle on offer in popular holiday spots.

But careful planning and forward thinking is required during the holidays to ensure they make the right decisions.

Anyone considering heading off for a well-deserved rest should start now to put some simple, cost effective measures in place for while they are away such as turning on security lights or alarm systems, asking the assistance of a trusted friend, neighbour or family member to collect the mail each day, putting out bins at collection times, parking a car in the driveway or adjusting curtains and blinds for that lived in look that deters unfriendly and unwelcome visitors.

A common trend for people on vacation is to fall in love with the holiday spot and look at purchasing in the area to either move into, or retire to, at some later stage in their lives.

But, purchasing a holiday home should only be done after careful planning and consideration of all the factors, beyond the pleasant experience.

Financial considerations need to be taken into account as they have potential long-term impacts and tax implications such as attracting capital gains tax on the difference between the purchase price and the later sale price, should the decision to sell ever arise.

Holiday home owners need to expand their purchase cost base by adding the expenses involved with holding the property, including council rates and water bills, major extensions or repairs, strata levies, garden maintenance and interest on mortgage repayments to reduce the taxable component of the sale, which can amount to thousands of dollars.

A holiday home can also double as an investment property, given it is vacant for most of the year, so it is important to ensure it is close to transport or employment opportunities, especially if it is in regional areas, otherwise it will be less desirable as an accommodation option for renters.

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Every Reason for Christmas Cheer

December 15, 2011 Leave a comment

We really are the land of opportunity

Although 2011 was a year in which Australians felt considerable gloom and uncertainty about the future, we really do have much to be grateful for.

While interest rate movements, property price statistics and auction clearance rates are reported in excruciating detail, then analysed in depth by the 24 hour media cycle, home owners have much to be satisfied with when it comes to their property holdings and their performance.

Credit Suisse’s Global Wealth Report recently ranked Australians as the wealthiest people in the world. The reason? Our average wealth now rests at $403,000 and our median at $225,000.

The median measure tells us how the middle class is travelling, and, as we have comparatively high levels of home ownership on the world stage, our wealth distribution is relatively equitable.

In the United States, by comparison, median wealth is only $53,000.

Coincidentally, the median wealth of an Australian rental household is pretty close to that of the US – $55,265.

So, the encouragement is certainly there to buy and pay off your own home.

Australians who own their home outright are worth an average $737,394 and there have never been more government incentives and bonuses to help you buy your first.

Plus, with historically low interest rates and enviably low unemployment rates, we really are the land of opportunity. It puts all our worry about small movements in interest rates and slight reductions in house prices in perspective doesn’t it?

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Have You Unlocked Your Investment’s Hidden Cash ?

December 12, 2011 1 Comment

Claiming depreciation tax benefits can assist your cash flow

You’ve worked hard to buy an investment property but have you made sure that you’re maximising the cash flow your property is producing?

The more efficiently you manage your portfolio, the sooner you’ll be buying your next investment.

Did you know that any property built after 18 July 1985 is eligible for depreciation benefits on its historic construction costs?

No matter whether your investment is new or old, it will have depreciable assets that can be claimed such as air-conditioners, whitegoods, floor and window treatments, renovations and furniture, just to mention a few items.

80% of Australian investors do not claim these legitimate taxation benefits which is a bit like not claiming the weekly rent from your investment property.  This can equate to thousands of dollars in unclaimed benefits each year.

Claiming depreciation tax benefits can assist your cash flow to pay off your principal place of residence, increase equity in your property portfolio, and increase your cash flow or take home pay.

The Australian Tax Office allows you to amend your previous four taxation returns to claim depreciation benefits so if you have been missing out, it’s not too late to do something about it.

The fee for a Depreciation Schedule is fully tax deductible and your First National property manager can point you towards an expert Tax Depreciation specialist.

What are you waiting for?

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Welcome Kim Button to the Sale Team

December 9, 2011 Leave a comment

Kim Button

Resilient and empathetic, with great enthusiasm, Kim has a natural affinity for people. Kim’s strong sales background over the years has enabled her to build strong relationships with many local residents. But beyond her professional skills, its Kim’s personal qualities that make a big impression.

Kim is ambitious; results orientated and prides herself on exceeding client expectations. Possessing excellent follow through skills with a straightforward, professional and personalised approach ensures that she is the sort of property consultant you want to have in your corner when selling or buying a home.

Excited by the marketing power, extensive database of buyers and services First National Burnie enables her to offer, Kim is committed to exceeding clients’ expectations and setting new benchmarks.

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Confidence At Six Month High

December 7, 2011 Leave a comment

Merry Christmas & have a safe holiday

As the property market moves toward its summer hiatus, First National would like to wish you a happy and safe holiday as well as a Merry Christmas.

With the housing market correction having slowed in September and interest rates fallen, Australian confidence has risen to a six-month high.

Capital city dwelling values have fallen just 0.2%, the smallest decline since February, and economists are tipping rates could fall further yet.

So what’s next for 2012?

We’re working on our 2012 Property Market Outlook right now, so ask us for a copy in January and we’ll give you the views of over 450 agents Australia-wide.

Swim between the flags!

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Renting Versus Buying – The Housing Dilemma

December 6, 2011 Leave a comment

Is now the right time to rent or buy?
Is now the right time to rent or buy?

Current market conditions coupled with increasing housing affordability, has many renters questioning if now is the time to stretch their budgets and commit to buying their own home.

But serious consideration needs to be given to the person’s individual and financial situation to ensure they make the right decision.

The advantages of each housing option should be weighed against the drawbacks to find the one that best suits specific needs and individual situations.

Renting offers great flexibility with the option to relocate from home to home and area to area, as the need arises, is often a cheaper alternative to buying, with monthly rental payments usually less than a mortgage repayment for a comparable property and without the other incidental costs which can be incurred as a home owner.

One of the greatest financial and stress-free advantages of renting is that property maintenance costs, repairs, rates and insurance bills are the responsibility of the owner, and not the renter.

Despite these many advantages of renting a property, there are some disadvantages which will make buying preferable, particularly in light of escalating monthly rentals.  The most obvious one being the difficulty renters face placing their own personal stamp on a rental property.

There is also the fact landlords can inspect their property whenever they wish, with sufficient notice, potentially disturbing the renter’s privacy.

But the biggest disadvantage of renting is that the property can never be paid off by the tenant, making the money lost for good, without any chance of recovering it in a sale of the property.

This is where First National can really help.  We offer advice and assistance based on the necessary knowledge, experience and skills to understand the market, its trends and its weaknesses and opportunities to ensure home buyers and renters make the most of their finances over the long term by considering the impact on personal net wealth and cash flow over a lifetime.

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