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Raine & Horne Port Macquarie Publication - Issue Five

Expressions of Interest achieves premium price & SOLD BY RAINE AND HORNE

D L O S .05M

$1 Days! in 21

SOLD! 19 Ocean Road Terrace, Lighthouse Beach. See the full story on page 3 In this Issue of Property News: • Thinking of getting a mortgage? • Expression of Interest vs Auction?

(02) 6583 2699

• Simple renovation ideas for your investment property port.macquarie@rh.com.au

Letter from the Director Dear Reader, Vendors often ask us, ‘How should I sell my property? Is auction the best way to go?’ The answer to this question depends on many factors. In this issue of Property News we feature a property that was sold using the ‘Expression of Interest.’ This method delivered a fantastic result for the vendor. For more information please see our page 3 story. In this newsletter we also take a look at what is involved in getting a mortgage, which can be a daunting task when you are buying your first property. See page 2 for some tips to getting started. If you are thinking about renovating your investment property, our page 4 article this month has some simple renovating ideas that might be of interest to you. Remember our team are available to help out with your property needs buying, selling or renting. Just drop in to our office or give us a call. Kind regards

Thinking of getting a mortgage? Buying a property is the biggest purchase most people make, and for many this also means a mortgage. Taking on a mortgage is a major commitment, often for 25 years or more, so it is important to have the right strategy in place when financing a home. Whether you are seeking a mortgage for your own home or as an investment property, do your research first: know what you want; and search around as there are lots of mortgage lenders, not just banks, competing in this market. Before you start shopping for a mortgage, sit down and work out your budget. Run your own calculations to understand what you can afford. With mortgage rates being between 3.59% and 3.99% for owner-occupied homes and 3.99% to 4.4% for investment properties, most loans average monthly repayments of $2500. In addition, there is the 10% deposit to consider. Generally speaking, a mortgage would account for one-third of your single or combined income.

Garry Knapp - Director 0419 997 739

Shop 6 Port Marina 18 Park Street Port Macquarie, NSW 2444 P (02) 6583 2699 E port.macquarie@rh.com.au W www.rh.com.au/portmacquarie Disclaimer Notice: Neither Raine & Horne Port

Macquarie, nor Newsletter House Pty Ltd, nor the publishers and editors of articles in this issue, accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for its accuracy and do no more than pass it on. All interested parties should make and rely upon their own enquires in order to determine whether or not this information is in fact accurate. ©Newsletter House Pty Ltd 2019 Ph: 02 4954 2100 www.propertynews.info

To get the best mortgage deal, you’ll need to be as attractive as possible to lenders. Several factors lenders look at are: •

The size of loan

How much deposit is saved

Employment status and income

• Credit history (the lender will want to make sure when you’ve borrowed money, you’ve paid it back) •

Expenses and existing debt

• Sometimes lenders seek collateral - the property you use as a security – especially for investors and this would often mean putting your house up as collateral. To be prepared when applying for a home loan, be sure to manage your credit and any debts, plus check your existing credit score. Now it’s time to work out the features you need from your loan and what it will cost in fees. For example, features like

flexible repayments and a redraw facility are commonplace. Charges can include a one-off establishment fee, variation and portability fees. There are plenty of comparison sites that outline mortgage products available from a range of smaller lenders and the big banks that are worth checking out. For any loan product, beware of the following points. The lowest interest rate mortgage is not always the best deal because adjustable rates or upfront discounts can affect the stated rate and may not make good financial sense for an individual. Beware of low repayments. Check that affordability hasn’t meant extending the term of the loan, adding upfront closing costs or adjustable rate features that can ultimately add to the cost of the loan. Don’t overlook the total cost, that is the sum of all costs, including interest charges and closing fees, over the life of the mortgage. Have a repayment strategy in place that can help to pay off the mortgage sooner. Consider making more frequent payments and keep payment amounts steady so that when interest rates drop there will be extra money coming off the principal. Or an offset account (a savings account linked to the loan), which enables this balance to be taken off the principal owed, thus reducing the amount of interest charged. If the home loan really doesn’t suit, an option is refinancing, either by renegotiating the rate with the existing lender or moving to a new lender. Disclaimer: This article is intended to provide general information only. It should not be considered financial advice. Consult a professional to determine what may be best for your individual needs.

Which is the best way to sell? Expression of Interest or Auction?

19 Ocean Ridge Terrace sale delivers knockout blow! When it comes to selling your property, choosing the right method of marketing is vital – but which way to go? Expressions of Interest or Auction? Raine & Horne’s sale of 19 Ocean Ridge Terrace, Lighthouse Beach, Port Macquarie, demonstrates the power of Expression of Interest over Auction for producing the best outcome for the owner. “We explained to our Vendor the difference in the two un-priced strategies and in particular the potential weakness of using the Auction method for this particular property,” says Garry Knapp, Director of Raine & Horne Port Macquarie. The Vendor was impressed, particularly as other agencies unanimously dismissed Expressions of Interest, promoting Auction as the best option. The outcome was a great billboard for Expressions of Interest – and also for Raine & Horne. After receiving multiple offers, the property sold in 21 days for $1,050,000, a

price well above the listing range, and one that would have been difficult to secure at Auction. “The Vendor was thrilled with how it played out, and we still can’t wipe the grin off our faces,” says Garry. There are limited methods available when marketing real estate, but according to Garry, each one is viable depending on the conditions or issues presenting. “Make a poor choice based on poor data or advice – and the cost to the Vendor can be substantial,” he says. “Determining the most effective strategy requires examining your needs and priorities in conjunction with the nature and value of the property.” Nowadays, people believe Auction is preferable, but according to Garry this is simply not true: “It’s a reasonable observation that Auction is the way to go for a fast sale, but it’s not necessarily the way to go for the best value outcome. In fact, evidence reveals that ‘Vendor Value’ leaks away in the high pressure Auction process,

particularly in the case of properties in the higher price range. Expression of Interest is a much safer option for achieving the best outcome for these properties.” A sale is often delayed by the gap between the Vendor’s price expectation, and that of the buyer – and nothing compresses the vendor’s price expectation faster than a public auction. The pressure on the isolated Vendor is enormous and as a result, properties taken to Auction clear faster. “Buyers like Auctions because they’re transparent on market value,” says Garry. “They don’t like Expressions of Interest because they don’t know what the other buyer is doing and can’t gauge how little to offer to win the property. They’re forced to show all the cash they’re willing to pay – and with no money left on the table, the Vendor secures the best possible outcome.” To learn more first hand, talk to us at Raine & Horne Port Macquarie – you’ll be glad you did!

Try us you’ll like us!

Garry Knapp Director & Licencee in Charge 0419 997 739

Martin Newell Licenced Real Estate Agent & Auctioneer 0429 883 488

Jenny Magill Licenced Real Estate Agent 0490 403 051

Sherryl Robinson Licenced Real Estate Agent 0412 850 322

Call one of our specialists on (02) 6583 2699 to sell your property. www.rh.com.au/portmacquarie

Gwaine Robinson Sales Executive 0467 530 627

Simple renovation ideas for your Investment Property

In order to ensure the best return, your investment property may need an update. There are simple ways to transform your property which will increase its value and ensure a greater rental potential. Renovating an investment property is a business decision and isn’t the same as renovating your own home. The key is to maximise your return for minimum cost. You must avoid overcapitalising, which is when the renovations cost more than the value they add to the property. So set a budget and stick to it. Painting

Painting your property can change the look completely by brightening the home and making it more attractive. It is probably the easiest way to add value. Remember to stick to neutral colours to appeal to the widest range of people and to choose paint that is hard-wearing. Floor coverings Have a good look at the carpets and see if they are beyond a good professional clean, if so then replace them. These days it is common to have tiled areas so carpet is not required in every room. But think about the type of home you are renovating. Again the rule is keep floor coverings neutral and durable. Choose from a budget range but do not go too budget. There is a difference between ‘cheap’ and cost effective. If you are lucky enough to have original

wooden flooring then make sure you keep it well maintained. It is a great feature that adds value. Window coverings Again the key is to keep it simple and practical. Install the same window coverings throughout the home in neutral colours.

Ensure your choice is hard wearing and easy to replace. There are many options but blinds of some sort are probably the best choice for a rental property. Aluminium venetians are currently a popular option. Repairs and quick cosmetic touch-ups While you are brightening up your property don’t forget to make any repairs that are required. Just having your property clean and in good condition can make a huge difference. Think about small things that will make your property more attractive. You may not have the budget to renovate the bathroom or kitchen but you can install new fittings like taps and cupboard door handles. Think about updating light fittings and installing higher wattage bulbs to create brighter spaces. These small changes can cost very little but will have a dramatic effect. Don’t forget simple things like your curb appeal. Make sure the front yard is neat and tidy.

Avoid DIY Remember time is money. You may think you can save a packet by renovating yourself but that is not always the case. Painters can paint an entire apartment in a weekend. It will take you much longer and the finish won’t be as good. No investor ever regretted getting the professionals in. Tenants do not need luxury but they do demand a certain level of comfort and many will pay more for an attractive, wellequipped home. Simple renovations can make a huge difference to your property and thus your bottom line.

REAL PEOPLE - REAL EXPERTISE - REAL KNOWLEDGE If you are not happy with your current managing agent call us today. Raine & Horne Port Macquarie is committed to protecting your investment and obtaining the best possible return. For an obligation free appraisal of your rental property please contact Jenny on 02 6583 2699. Jenny McEwan Property Manager


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Raine & Horne Port Macquarie - Property News - Issue 5  

Vendors often ask us, ‘How should I sell my property? Is auction the best way to go?’ The answer to this question depends on many factors. I...

Raine & Horne Port Macquarie - Property News - Issue 5  

Vendors often ask us, ‘How should I sell my property? Is auction the best way to go?’ The answer to this question depends on many factors. I...

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