Newcastle Living Magazine
I want to make the biggest saving possible – when will the market bottom out?
Licensed Real Estate Agent
That’s a real crystal ball question, and the first question to ask yourself is whether your decision to buy is a short or long-term plan. Due to the high transaction costs such as stamp duty and selling fees – the process is not cheap at all – so generally, real estate should be a long-term strategy. Predicting the bottom or the top is an exercise in futility. It’s better to get in the market and let the natural growth take place over time. Especially if you are buying and selling in the same market – it will work itself out on its own so don’t overthink it, there is never a bad time to buy.
I’m considering selling, but I can’t decide whether to sell by auction or normal sale. I like the idea of an auction but aren’t they expensive?
Licensed Real Estate Agent
That’s a very common misconception. Believe it or not, an auction has the same elements as a normal sale, except it has an auctioneer – and they will need to be paid. An auctioneer’s fees in the grand scheme of things are a moderate cost. Our team of local auctioneers charge between $500 and $1000 and are experts in their respective fields. A good idea if you are thinking of selling via auction is to go to a few and see the auctioneer’s style and what you prefer. An auction is a public event, so you are welcome at all auctions, even as a spectator.
It’s so hard to get a rental property, and I keep missing out – what am I doing wrong?
Business Developer Manager
You are not alone in feeling this frustration. The first step is to get your full application information 100% in order. We have an online system where you go through a step-by-step process loading in the required documents and info, and then when you find the ideal home for you, you can apply quickly with a complete application. Often the most considerable delays will be your references so make sure you get onto them. If you have never rented before due to previously being a homeowner, character references or a reference from the selling agent of your last home will be important to have on hand also. Without references, even a perfect applicant won’t get to the final stage of assessment.
I want to buy an investment property, and I’m weighing up between commercial or residential. What’s going to be the best way to go?
Commercial and residential property as investment strategies are quite different. Generally speaking, commercial returns are better than residential, with the tenant often paying all outgoings, and returns can be pretty high. With higher returns come higher risks. Banks want significant deposits, meaning you will need at least 30% cash for the purchase plus costs. Some commercial buildings can also be vacant for more extended periods, so securing a strong tenant is vital for guaranteeing returns. As for residential, returns are lower and you can’t get rates and strata fees paid by the tenant, but with the lower returns, there are lower risks. Residential property is rarely vacant, and banks view houses and units quite favourably and will accept what we call a normal deposit. I would always speak to your tax advisor, so you get the best advice based on your unique circumstances.
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