Your Comprehensive Guide to Buying a Home

Your Comprehensive Guide to Buying a Home in Sydney

Buying a home is a significant milestone and a substantial investment. In a bustling city like Sydney, the real estate market can be both exhilarating and challenging to navigate. With its stunning harbor, vibrant culture and robust economy, Sydney is a highly sought-after location for homeowners. This comprehensive guide provides you with essential insights and actionable tips for successfully purchasing a home in Sydney.

Understanding the Sydney Real Estate Market

The Sydney real estate market is known for its dynamic nature, influenced by factors such as economic conditions, population growth and supply and demand. Sydney's property market is diverse, encompassing everything from historic houses to modern apartments and luxury waterfront properties. Understanding market trends and property values is crucial to making an informed decision.

Research and Planning

1. Define Your Needs and Budget: Begin by identifying your requirements and setting a realistic budget. Consider factors such as location, property type, number of bedrooms, amenities, and proximity to schools, workplaces, and public transport.

2. Market Research: Thoroughly research the neighborhoods you're interested in. Analyse recent property sales, median prices, rental yields, and growth prospects. This research will help you gauge the market's performance and understand whether it's a buyer's or seller's market.

3. Financing Options: Explore your financing options, including home loans, mortgage brokers, and lenders.

Engaging Professionals

1. Buyer’s Agent: Engage a reputable buyer’s agent with local expertise. They can provide insights, arrange property inspections and negotiate on your behalf.

2. Conveyancers or Solicitors: These professionals handle legal aspects of the purchase, including title searches, contracts, and property transfers. Their expertise ensures a smooth transaction.

Property Inspection

1. Physical Inspection: Always inspect properties in person. Pay attention to structural integrity, plumbing, electrical systems, and potential repairs or renovations.

2. Pest and Building Inspection: Engage professionals to conduct thorough pest and building inspections. This safeguards you against hidden issues that might not be apparent during your initial visit.

Negotiation and Due Diligence

1. Offer and Negotiation: Once you find a suitable property, work with your buyer’s agent to make a competitive yet realistic offer. Negotiate with the seller to achieve a mutually acceptable price.

2. Due Diligence: During the contract period, conduct thorough due diligence. Review strata reports (if applicable), investigate property boundaries, and confirm zoning regulations.

Legal and Financial Aspects

1. Exchange of Contracts: Your solicitor or conveyancer will handle the exchange of contracts, a critical legal step that finalises the purchase.

2. Stamp Duty and Other Costs: Be aware of additional costs, including stamp duty, legal fees, and potential land tax. Factor these expenses into your budget.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

A Buyer's Agent's Tips on Buying Well

As a buyer’s agent, I help clients purchase homes all the time. I find time and again that the best homes sell quickly – no matter what the market. When you’ve found the home you love, you’ll want to position yourself so that you can make it yours – but be certain that you’re not over-paying. Here, I share some tips to help you along your journey.

1. Don’t fall in love too quickly. A home may look very different in real life to how it looks online, and building and pest / strata reports may reveal serious and significant faults or challenges about the property that may make you decide not to proceed with the purchase. Investigate the property – and the neighbourhood – thoroughly and always inspect at least twice and bring other people with you to view the home.

2. Never make an offer in haste – it should always be a considered decision both to make an offer and the amount, but at the same time, if you don’t make an offer before someone else does, you may lose out! Examine the market, work out what comparable homes are selling for and work out what you are willing to pay.

3. Do request a contract for sale if you’re interested in purchasing the home and have it reviewed by your conveyancer or property lawyer.

4. Do drive by the home at different times of the day and days of the week. the home could seen very quiet at 11am on Wednesday but be very different at 10pm on Saturday! Speak to the neighbours and ask how they find the area and if there are any issues that they know of.

5. Keep your options open – just because you love this home, doesn’t mean you should not be exploring other homes that may also be a good fit for your needs.

6. Never overstretch your budget. Your maximum is your maximum.

7. Ensure you have finance pre-approved and a deposit before you set out on your search so that you know you have the funds available to proceed as soon as you find something you like that checks out and ticks all of the boxes.

8. Ensure that you have engaged a conveyancer / property lawyer before you set out and that they will be available to you so that when the right home comes up, they are ready and available to review and negotiate the contract for sale for you.

9. Be aware of exhaustion. If you have been searching for a long time, you may be inclined to compromise, over-pay or “settle” just so that you can move on with other things in life. But a property purchase is expensive – perhaps the most expensive decision you’ll make. It is expensive to buy property and it is expensive to sell – so the decision to buy needs to be a considered, rational and wise decision.

10. Buyer’s agents are your friend. Every day, buyer’s agents buy homes for their clients. We relieve buyers of the burden of searching, inspecting, reviewing and evaluating homes as well as adding so much more value: due diligence, knowledge, experienced, negotiation strategy and purchasing know-how. The average search time with a buyer’s agent is generally two to three months for a home due to the efficiencies we’re able to extract, our access to off-market homes and our ability to “cut to the chase”: knowing where to look, how to look, how and what to quickly disregard and where to focus our time.

Buying real estate is the biggest financial commitment you are ever likely to make. If you would like to buy the easy and stress-free way, contact me today.

Why is Winter the Best Time to Buy?

There are many reasons why Winter is such a fantastic time of the year to buy. Read more to find out why.

As the weather starts to become colder, people tend to be less inclined to go out to open homes, preferring to rug up by the heater.

Winter tends to see more ill health than Summer, with more people staying home with colds / flus.

Saturday Winter traffic can be busier than Saturday Summer traffic as fewer people are inclined to brave the elements on public transport on a cold, wet day. With more cars on the road, fewer people are keen to navigate wet streets, preferring to stay home.

People who really dislike our Winter tend to leave Sydney for the Winter and seek out warmer parts of the World.

Universities are in full swing during Winter, so there are fewer students attending open homes.

Approaching the end of the financial year, we often tend to see fewer buyers.

There is a perception that there are fewer homes on the market in Winter, hence less reason for buyers to look for a home during Winter.

All of this is good news for buyers! Fewer buyers means less competition and more time to consider properties. the best properties still sell quickly, but generally, with fewer buyers in the market, there is less pressure to buy right now and a greater sense of being able to carefully consider a property.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

Choosing a Buyer's Agent: A More Important Decision than Choosing a Sales Agent

It may sound strange to propose that a person’s choice in (and decision to use) a buyer’s agent is more important than a person’s choice in (and decision to use) a selling agent. But it is. Let me explain why.

When we choose a selling agent to sell our home, there are two risks:

1. That for a whole range of reasons, the property does not sell; or

2. That we will not achieve the maximum purchase price

When we choose a buyer’s agent to purchase our property, those same risks apply in reverse:

1. For a whole range of reasons, we may not purchase a property at all; or

2. That we will pay too much

However, there is another very important reason why the decision to use the right buyer’s agent is so paramount, and this is because there is a third risk when purchasing property, and that is the risk of purchasing what I will call a “dud”. You see, when you sell a home, you take the money and move on, but when you purchase, you must live with the consequences of the purchase. Buy the wrong home for your needs and you will need to sell and buy again soon – both of which are costly. Purchase a home that needs a lot of work that you did not know about means you may struggle to sell, or need to work around the inconvenience, cost and consequences of repairs to the home. When you purchase, you are committed to a large amount of debt over many years to come, rather than selling where you become free of the debt.

So, the decision to use a buyer’s agent to represent you in your property purchase journey is a sound decision. Choosing the right buyer’s agent is paramount. Choose wisely.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

Top Reasons to use a Buyer's Agent

Searching, inspecting, evaluating, researching, negotiating and finally purchasing a property is exhausting, frustrating and disheartening for many would-be property buyers. Here are a few reasons why people decide to work with me.

Experienced and knowledgeable service

There is a lot to know about property purchase. One of the most important things to know is how to evaluate a property quickly, accurately and with minimal cost. No-one wants to spend hundreds of dollars on building and pest reports or strata reports when there are obvious (to the buyer’s agent, not to the buyer) issues with the property. Buyer’s agents purchase property all the time, and being in the market all the time places the buyer’s agent at a substantial advantage over a buyer who purchases on average once every seven years.

Expert negotiator

Negotiating is a big part of the buying process if you would like to get the lowest possible price. Everyone knows this, but most people are not sure how to negotiate. Many people are unsure what is negotiable and what is not, how hard to push, when to back off, when to walk away and when to go hard. Some people - exhausted from a frustrating and demoralising search - do not negotiate at all - and end up over-paying for their property.

Buyer’s agents aren’t emotional

As a buyer, it’s easy to become emotionally attached to a property you have seen online and start to dream of living there, working out where your pictures will go, what new furniture you’ll buy and how far the nearest dog park is. All before inspecting the home! A buyer’s agent removes the emotion. You only view homes that have been vetted and evaluated, meaning less emotional attachment to the wrong home, much time saved and far less frustration and overwhelm. A buyer’s agent is removed from the emotion and focuses purely on the fundamentals of the property and how closely it matches a client’s brief and needs. A buyer;s agent accesses far more information about a property than is available to the general public - meaning our strike rate is close to 100%.

Save time … lots of time

With a buyer’s agent working on your behalf, you free up your time from searching and inspecting hundreds of homes over months or even years. It’s not just time you’ll save: you save stress, you free your time for your family and friends or income-producing work, and you also end up purchasing sooner. The average purchase through my service occurs within two months of a client engaging my service. This is in contrast to 2+ years when clients go it alone.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

Two Biggest Traps for property Buyers - and how a Buyer's Agent can Help

Two Big Traps for property Buyers - and how a Buyer's Agent can Help

The two areas where I find buyers being trapped are becoming emotionally attached to a property, and not allowing numbers (logic, data) to drive decisions.

Most home buyers fall in love with a property before they have analysed it.  They view it online, like it, inspect it, love it and assume (and want to believe) that all is perfectly well with their newfound love.

But property purchasing is an expensive decision that is costly to make and even more costly to change, once the purchase has been made.

We weigh up holidays, cars, schools and jobs using data and numbers.  We look at what we want and need and go searching in the places that will give us what we are after.  We really hone in on finding what we want and only then to do we consider falling in love with it.

But for most property buyers, it seems to be a reverse process fall in love, then stop and think .... and get massively disappointed.

For some people - particularly those who feel exhausted with their property search - the desperation to buy something and the emotional attachment to this particular home makes it difficult to accurately assess and use the data on the home that may support buying - or not.  What sort of data?  I'm referring to a strata report, building and pest report, property appraisal by an unbiased buyer's agent, independent inspection and thorough due diligence on the property. 

When you work with a buyer's agent, you can avoid becoming emotionally attached to a home that might not be right for you because the buyer's agent assesses all properties before presenting them to their client.  In this way, clients are shielded from the emotional roller coaster that is buying property.

Which brings me to the next point: letting the data inform the decision.  Purchasing property is all about the numbers and data.  You absolutely don't want to buy a dud, even if you happened to fall in love with it.  When the numbers don’t stack up, your buyer's agent will know, and when you are not emotionally attached to the property, you can heed their advice.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa's service is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

Could your Credit File be Affecting your ability to get Finance for your Next Property?

Could your Credit File be Affecting your ability to get Finance for your Next Property?

One way that that lenders assess your loan application is by examining your credit file or credit score.  Many people are not sure what this is.  Every time you make an application for credit, say for a credit card or a loan, or default on payments a note is made in your credit file.  When a potential lender reviews your file, they assess the information it contains.  You can find your credit score here.

There are many things you can do to keep your credit sore healthy:

1. Pay your bills on time

2. Make all loan repayments on time

3. Limit debts, such as credit card limits

4. Make as few applications for credit as possible, and be reasonably sure that any applications made will be approved

A stable income, high credit score and the correct choice of property will assist banks to assess your credit rating favourably.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa's service is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

How's the Market?

How's the Market?

It's a question I am asked on an almost daily basis.  The question is simple; the answer is not.  Property markets exist within markets.  Even within the same suburb / postcode, there can be different markets.  We can all think of suburbs where there is the "right side" and the side that you just wouldn't buy in.  But it is more complicated than this.  An influx of new developments can push up the median price, but this does not mean that the value if established properties has risen.  A lack of stock on the market may contribute to a rise in prices, but this does not mean the trend will continue when stock levels increase.  Stock levels may be high, but demand for that stock may be low - so the price for that stock will decrease, meanwhile the value of the property that would be in demand would increase. 

Markets can be separated by location, price, dwelling type, bedroom number, size, style, old vs new etc.  So when I am asked, "How's the market?" My answer is generally vague before asking more specific questions about which market, and which segment of the marker, the person is asking about.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa's service is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

Asbestos Removal?

Asbestos Removal?

Surprisingly, 33% Sydney homes contain asbestos.  The safest option for owners is to have their home assessed for asbestos, and if found, to implement an asbestos management plan.  But why aren't more Australians doing this, considering the enormous health impacts of asbestos?

Research conducted by the Asbestos Safety and Eradication Agency (ASEA) shows that most people cannot identify asbestos, have a low level of awareness of asbestos and its risks, and are concerned about the cost of implementing an asbestos management plan.

My thoughts?  Better the devil you know!  Many homes contain asbestos and most asbestos is not the loose-fill type.  It is managed through an asbestos management plan rather than absolute removal / demolition.  Asbestos is best found and managed, than ignored.  We have a responsibility to create a safe space for tradespeople, tenants and owners alike.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa's service is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

Is your New Purchase "Investment Grade"? How can you know?

Is your New Purchase "Investment Grade"?  How can you know?

What does it really mean to own an “investment grade” property?

Generally speaking, holding an investment grade property with high growth potential in future years means purchasing a property that will leave you out of pocket each week, in the first few years at least.  This is because high growth properties tend to have low rental yields.  These are the ones that perform better over the long-term.

But what drives capital growth, to assure a buyer of future benefits for their short-term shortfall?

The main driver of capital growth is demand.

This means that when it comes to buying real estate, purchasers should consider buying properties in locations where people want to live and have always wanted to live, where rental yields are not very high, where there is strong local economic growth, jobs and wages growth.  Consider purchasing in areas where there are employment opportunities, strong transport networks, close to beaches, close to the CBD, with shops and entertainment near by.

Consider what appeals to owner-occupiers, because it is owner-occupiers that drive price growth / capital growth.  Also consider homes where you can manufacture capital growth, ie, buy something that you can renovate to increase your capital growth.

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with a responsive, accurate and affordable service that empowers property buyers to make informed purchase decisions. Melissa's service is diligent, efficient and accurate. If you need expert knowledge and advice for your next purchase, don't hesitate to make contact.

Reforming the Real Estate Industry

Major reforms to real estate practice will be introduced in New South Wales later this year.  These reforms are considered to be amongst the most important ones to reach NSW in the past 30 years.

Many years ago, the Government decided that it would be desirable for there to be more competition in the real estate industry.  In response, the entry requirements were relaxed, making it easier for people to enter the industry and set up shop, as it were.

The negative impacts started to show.

Lower initial education requirements, lower experience requirements and the ability to maintain a certificate of registration indefinitely without progressing to a real estate license have perhaps resulted in poorer standards within the industry, consumer complaints and loss of confidence and business failures.

The reforms hope to address this by increasing the education standards for new entrants to the industry and enhancing the ongoing education requirements.  Certificate holders must progress to a license within a certain time-frame; they can no longer hold a certificate for ever.  There are enhanced limits on what a certificate holder and a license holder can do, and added supervision requirements for the licensee-in-charge - which, incidentally, is a newly created position.

The course leasing to a certificate of registration is having additional subjects added to it.  The net result of these reforms will be a more highly educated workforce, with enhanced supervision and an improved career path mapped out.  In time, this will improve consumer confidence in the real estate industry and assist us to progress to the next step: that of being recognised as a profession.

Melissa Maimann is a licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

High Rental Return? Low Rental Return? Which is Better?

It's that age-old question! 

Smart Property Investment sheds some light on which one is superior.  It turns out to be low rental returns.  This is because almost always, lower rental returns go hand-in-hand with higher capital growth, and capital growth trumps rental return.

For example, if the rental return is 8%, but the value of the property goes down by 10%, the holder of that property is down 2%.  Whereas a similar property may have only a 3% rental return, but a 6% capital growth, and this equates to a return of 9%.

The issue with capital growth is that it is all theoretical until the property sells, whereas rental returns are known week-in, week-out, and everyone likes to come away better off each week, even if it only by $30.  It's important tor recognise that the property that takes money from your hand each week, is far more likely to reward you handsomely if / when you sell.  But of course, if you can afford to - never sell.  In time, all properties are positively geared because as the mortgage is paid down to nil, that property will begin return a profit for you ... as well as capital growth!

Melissa Maimann is a licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

Pros and Cons of Engaging a Buyer's Agent

Although more and more real estate buyers are finding value in using a buyer's agent, it is also true that many more are going unrepresented.  The question is: is it worth it for a property buyer to have their own agent when they purchase a property?

Currently, the vast majority of property buyers purchase without representation.  They use the selling agent, online resources, family and friends to assist them with their purchasing decisions. And for the most part, this approach seems to be working well - or is it?

Strictly speaking, the selling agent is not there for the buyer.  They are there (ie they have a fiduciary duty) to the seller.  The seller has engaged the agent; the seller is paying the agent; the agent has a contractual - and fiduciary - obligation to the seller.  So, in effect, a buyer who relies on the advice of the agent who is selling the property is somewhat akin to a spouse turning to their soon-to-be ex spouse's lawyer for advice on the divorce.

The main tasks of a selling agent are to:

• Market the property

• Draw in interested buyers

• Elicit offers from interested buyers

• Negotiate the sale of the property in their vendor's best interests

Nowhere in this description does, "act for the buyer; represent their interests; ensure that this home really is right for the buyer; negotiate the purchase price in the purchaser's best interests" come into it.  These are all the tasks of the buyer's agent - who has a contractual - and fiduciary - duty to the buyer.

The average person buying a home purchases only two to five times in their life.  The average buyer's agent purchases two to five times per month.

A buyer’s agent has education, experience and training to know:

• Market value, ie, whether a property is over-priced, well-priced or under market value

• How to negotiate the best terms and price for their client

• A dud from a great property

• How to interpret and analyse all of the data to make sense of it

• The best places to go to find a great purchase

• Cut through to secure the best home in the earliest possible time-frame

Purchasing a home takes most people at least 12 months.  In a rising market, this costs the buyer.  The reason that purchasing takes the average buyer at least 12 months is that a) for most people, purchasing a home is not their full-time job: in fact, they already have a full-time job, and house-hunting is done on the side, in amongst everything else that happens in normal daily life.  A buyer's agent is focused on property all of the time.  There are efficiencies to be gained from this.  Most buyer's agents purchase in 4-8 weeks, sometimes sooner.  This means that clients actually purchase for less and have more money in their pockets due to the time advantage against increasing capital growth.  This fact alone means that people who use a buyer's agent are ahead, even when the buyer's agent's fees are taken into account.

Why use a buyer's agent?

• Tap into the knowledge, wisdom and advice of a real estate expert who is on your team, with a fiduciary duty to represent your best interests

• Decisions are objective because the buyer's agent is able to remove emotion from the decision

• Access to off market properties

• Sound number crunching, data analysis and synthesis of multiple sources of information

• Access to information that is not available without paid subscription - advantageous information that in itself, can point to excellent buys, homes to avoid, allow the market value to be calculated and so on

• Save huge amounts of time (hours + months), save money, save stress (and potentially relationships, too!)

Are there any reasons not to use a buyer's agent?

The main reason that people are hesitant to use a buyer's agent is the cost.  Some agents charge anywhere from 2% - 3% of the property's purchase price; others around 1%; others have a fixed fee that increases along with the property's purchase price and so on.  At Melissa Maimann Buyer's Agent, the fee structure is as fair as fair can be.  A quote is provided based on the complexity of the search, rather than the purchase price.

Melissa Maimann is a licensed Real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

4 Best Reasons to use a Buyer's Agent

People don't Buy Properties Every Day

Real estate is potentially the single largest purchase a person will ever make.  Not only is it expensive in its value, but it costs money to buy it (stamp duty) and sell it (marketing and agent's fees) and it is not particularly liquid, meaning it cannot be easily and cheaply converted into cash and it cannot be split into smaller pieces which can be sold off, as with shares.  As well as this, the property needs to be sold to realise its actual value; until it sells, its sale price is only theoretical.  Considering the cost of property purchase and the average person's inexperience at purchasing property, certainly, the wrong decision can be costly.  Very costly.

How can a Buyer's Agent help?  A buyer's Agent is a licenced real estate agent who specialises in representing buyers through the purchase process: it is the opposite side of the coin to a selling agent, who woks for the seller of the property to represent their needs.  A buyer's agent successfully and efficiently matches properties to people, evaluates properties, negotiates the purchase and represents the buyer.  They do not list properties for sale and do not represent sellers.

Do you really have the time?

Let's face it: most people work, have families, have a life.  Finding a property - the right property - is a full-time job if done properly.  You need to know what's on the market, know what the properties are worth, which ones represent great value, which ones are over-priced which ones are fantastic, red-hot properties vs which ones are ... not, which ones might sell now, which ones are likely to be passed in at auction and so on.  Put simply, most people simply don't have the time to successfully purchase within a short time-frame, and also lack the time and resources to really know and evaluate the market.  A buyer's agent buys properties all the time and does so as their full-time job.  A buyer's agent takes over the searches for you, saving you time trawling through online ads, making dozens of enquiries of agents, evaluating the homes with access to professional property data that is only available to real estate professionals, attends inspections on cold wet days so that you don't have to, reports back to you on properties, short-lists them for you and negotiates the purchase of the right property for you.  You can be involved as little or as much as you like throughout the process.

Are you sure this property is the best one for you - for now and in the future?

As mentioned above, it is expensive to buy and sell real estate.  Yet so often, people buy the wrong home, and later regret and we find that that home is back on the market, often selling for a net loss.  Ouch.  A buyer's agent - skilled in knowing what people need and in matching homes to people's needs - as well as their skills in evaluating and negotiating purchase prices and terms - makes it a no-brainer.  When your purchase is represented by a buyer's agent, you can be assured that the home you buy is right for you, both now and in the future.  

Purchasing is emotional

For most people, the purchase of a property is an incredibly emotional experience.  This results in many people over-paying (even beyond their means) at an auction, generously appraising a property - far more than its true value, viewing the property through rose-coloured glasses and revealing far more than they perhaps ought to o the selling agent.  When you have a buyer's agent acting for you ad on your behalf, the emotion is removed.

1. The only properties you get to know are the ones that are highly suited to your needs ... ie, the ones that you can fall in love with because they're highly likely to be "The One"

2. Those properties are appropriately appraised both in terms of value and in terms of maximum purchase price

3. The homes are less likely to pull at your heart strings because the agent will not be speaking of the in emotional terms that get you hooked: rather, the data will be presented in a more factual and evidence-based perspective which minimises emotional buying

4. When the maximum limit is set, your agent will not go above this

Melissa Maimann is a Licensed Real Estate Agent and Buyer's Agent in Sydney.  She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions.  Melissa's service is fast, efficient and accurate.  If you need a hand with your next purchase, don't hesitate to make contact.

Tips for Successful Property Investing

Risk and reward

Successful property investing is a long-term view.  The rewards come in time, not instantaneously.  Oftentimes, what appears to be a fantastic opportunity is all-too-often too good to be true: that brand new development promising 7% yields with a rental guarantee, for example.  Often, if it sounds too good to be true, it probably is.  The reward may be there, but so might the risk.  The longer you can hold your property, the better you will do in the long-term.  I say the long term because property moves in cycles, and in the short-term, many people can and do lose money.  The long-term view evens out these bumps in price and ensures growth over a long period.  

Base your choice on numbers and evidence, not emotion

Many investors base their choice of investment property on what they personally like, ignoring the fact that they will not be living there: someone else will be.  Every investor must consider the factors that mane a property and an area attractive to tenants, so that they can be sure of a rental return and ongoing growth in the value of the property.  The area might be great, but the property is on the main road and plagued with mould from rising damp.  Bad move.  Or it might be a fantastic property but miles away from schools, shops, transport, work and so on.  Again, bad move.  The ideal rental property is in an area of high demand, where people like to live, and of course it needs to be an awesome home that people will love to live in.  That's how you minimise rental vacancy and maximise the value of your home over time.

Use your own agent: a buyer's agent

Successful property investing requires a separation from logic and emotion; from facts and fiction; and of course a thorough knowledge of the market.  A smart property investor has their own agent to represent their interests and help them to make wise decisions that are based on on data, evidence and property fundamentals.  A buyer's agent knows where the areas are that have the best property fundamentals for growth and low rental vacancy.

Capital growth is king

Some investors focus on rental yield, that is, a property that returns them a profit every week.  Generally, the homes that have a high rental return have a low capital growth, that is, they tend not to go up in value very much over time.  Conversely, the properties that tend to appreciate more in value over time tend to not return a profit to the owner every week - in fact, they cost money each week.  Which is better?  Generally speaking, the low yield / high growth properties return more over the long-term than the high yield / low growth homes.  Capital growth is what helps people build wealth through property.

Buy with selling in mind, but don't sell

Sounds odd?  Let me explain.  At any point in time, there are roughly 35%-33% people renting (depending on the area you're looking at), and the remaining majority are owner-occupiers.  So, while the home you are buying now as an investment is intended for tenants and should appeal to tenants, also buy with a mindset that in time (preferably a very long time!) you may wish to sell, and if you, do, most likely, your purchaser will be an owner-occupier.  When you buy, consider who the next purchaser might be, and ensure that your property could appeal to an owner-occupier and a tenant.

Melissa Maimann is a Licenced real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

Under-Quoting: Still Alive and Well

A while back, important new legislation came into effect banning the practice of under-quoting.  Under-quoting occurs when a real estate agent quotes the price of the home (price guide) much lower than what the home is actually worth, to make it appealing to a larger audience.  For example, a property that is most likely going to sell for $1,000,000 might be priced guided at $800,000.  This tends to draw in people who cannot afford the home, who then spend time, money and emotions on evaluating the home, ordering reports, having the contract reviewed by their conveyancer, and of course attending the auction (the more at the auction, generally the higher the selling price as more people gives the perception of more interest in the property and drives prices higher).  When the property eventually sells for a lot more than $800,000, of course there are many disappointed would-be purchasers.  NSW Fair Trading ruled out this practice, yet new data suggests that this practice is still alive and well in the most in-demand areas of Sydney: The Inner West, Northern Beaches.

When inspectors visited 37 real estate agents in the Inner West, 27 were found to be non-compliant and 19 were fined for under-quoting offences.  In the Northern Beaches, 12 of the 17 offices were fined, with seven being for under-quoting. 

Buyers who are represented by their own buyer's agent are less likely to fall victim to under-quoting because the agent that is representing the buyer knows the market, the homes, the agents and the likely sale prices of the homes that are of interest.  Their clients can be protected from under-quoting by the provision of high-quality information on properties that enables buyers to make savvy purchase choices.

Melissa Maimann is a Licenced real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

Property Investing. Are you game?

Property is one of the best forms of investments, so they say.  Many people aspire to invest in property, and many achieve this aim.  But is it all it's cracked up to be?  Here are some home truths.

1. Property markets go through cycles. They rise and fall.

Properties generally rise in value over time, doubling in value roughly every 10 years (a complete property cycle), but within that property cycle, it is normal for the property's value to stabilise - or even decline - for a period of time.  No property goes up all the time.  An astute investor knows this and is willing and prepared to hold tight through the peaks and troughs.  Property investing is a long-term strategy: all investors should aim to hold for at least one full property cycle.  This tends to be the safest and less risky approach to property investing, although there are other strategies that work very well for some buyers.

2. Go with the (downward) flow

Sometimes, properties in great areas go down in value: it's just what the market does sometimes.  Recognise the opportunity and buy!  That great property will soon rise in value, and you've scored yourself a great home for less than what you might have paid at any otehr time.

3. No-one can ever predict what the market will do

Why are we all hooked on reading the latest market predictions?  It's always fascinated me!  No-one has a crystal ball.  No-one knows.  Take the time to learn solid property fundamentals: what drives growth, what features are attractive to people - study those well and make savvy decisions. 

4.  The most successful property investment is the most boring one.

A great investment property is boring.  Nothing really happens.  Some maintenance work, tenants come, tenants go, rent comes in, the property goes up over the long-term ... it's boring.  If it's any more exciting than this, maybe it's not the best investment.  Property is a set-and-forget investment option.

5. Be careful who you take your advice from

Data is easy to manipulate.  Experts may not be so expert.  And of course, no-one knows what is around the corner.  Educate yourself, but ensure that the people you surround yourself with and the avenues you seek for advice are worthy of your attention and consideration.  Property investment advice is an unregulated industry, and anyone can be a real estate expert.

6. Let debt be your friend

Many people don't understand the difference between good debt and bad debt.  bad debt is that debt that we take on to secure a depreciating asset.  A car is a depreciating asset.  Don't take on debt to buy a car.

A property is an appreciating asset.  That is a good debt to take on, because over time you will pay off the debt that you owe and end up with an asset that is worth substantially more than what you paid when you bought it.  All homes go up over the course of a 30-year mortgage.  Your car probably won't be around in 30 years' time.

Melissa Maimann is a licenced Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

Landlord Mistakes

Many landlords make some genuine mistakes when they are renting their homes out.  Landlords provide an essential service (housing) to renters, and as with all services, the consumers of that service (renters) have rights - and landlords, responsibilities.  These are mostly geared around the landlord's responsibility to provide a safe environment for their tenant, to respect their privacy and to tend to repairs promptly.  For tenants, it's important to always pay the rent on time, look after the property and report any repairs / maintenance immediately.

Some common mistakes that landlords make:

1. Rushing to accept a tenant without insisting on proper screening

It is very difficult to evict tenants.  As tempting as it may seem to accept the first person who applies, it's important that thorough checks are carried out, both by the agent and by the landlord.  Poor screening could mean ending up with a tenant who doesn't pay their rent, damages the property and won't leave. 

2. Delaying repairs and failing to maintain the property in good condition

All this does is increase costs for the landlord in the longer-term.  Repairs that are left become more expensive as time goes by, and a property that is not maintained in good condition will not achieve the best possible rental return.  As well as this, failure by the landlord to carry out necessary repairs and maintenance is grounds for the tenant to issue a termination notice.

3. Discrimination

It's illegal for landlords to discriminate against a group of tenants, for example due to ethnicity, sexual preference, religion, marital status, children and so on.  Application approvals need to be on the relative strength of the application in relation to the other applications that are received.  The main things that the landlord should look for in applications is the tenant's demonstrated ability to pay the rent and their demonstrated ability to look after the property. 

4. Scrimping on landlord insurance

I am genuinely shocked that some landlords don't have landlord insurance, assuming that because there's a bond, they are safe.  In many instances, the damage / loss of rent from a tenant far exceeds the amount of the bond that has been paid, and this is where landlord insurance comes into play.  But, not all insurance is created equally.  It's important to look through the fine print and work out what is covered, what's not covered, and what amounts the insurance will pay out for each item.  There's a big different between only 6 weeks cover for loss of rent, vs 52 weeks.  Shop around and compare your options.  But whatever you do, get insurance!

Melissa Maimann is a licenced Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

Now or Never?

As always in the property market, multiple (often conflicting) views abound.  Is this a good time to buy in Sydney?  Should investors purchase, sell or hold?  Is it a good time to buy a home to live in? 

There are some of the many questions I am asked each day.  My thoughts?

I believe this is one of the very best times to be buying in Sydney.  And if you currently own your home or investment - don't sell.

Why is it one of the best times to buy?

Property prices have softened in many areas of Sydney.  Most areas have experienced a decline in prices for both houses and units, and at best, other areas have remained stable.  The point is that for the first time in many years, prices have not gone up.  It is clearly a buyer's market: properties are taking slightly longer to sell, auction clearance rates have declined, prices have come down in many areas and vendors are needing to turn their attention to the desires of vendors if they wish to sell.

Interest rates remain low, however in coming months we may see a rise in rates, and certainly over coming years, we will see a rise in rates.

Low rates combined with softened property prices combine to make this the best time for buyers to purchase.  We have most definitely reached the peak of the last property cycle and are now at the bottom of the next cycle - and although prices could still drop further, once the trough has been reached, from there, the prices will increase.  Now is definitely the best time to buy!

Melissa Maimann is a Licenced real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.

Short-term letting reforms: What the changes mean for you

New short-term letting regulations are set to commence.  What do they mean for investors (hosts) and guests?

If the property owner lives in the property, they may use a room/s in their home for short-term letting 365 days a year without submitting a development application to Council.  They may also allow their entire home to be let short-term while they are away on holidays.  However, if the property is not the host's principal place of residence and the home is located within the Greater Sydney area, the host will be limited to renting out the home for a maximum of 180 days each year, and under strict regulation that is designed to ensure that hosts / investors can continue to gain from the economic benefits of short-term letting, while protecting neighbours from anti-social behaviour such as noise, disturbance and damage to common property.

What will the changes look like?

1. Owners corporations may adopt a Special By-Law with a 75 per cent majority vote to prevent property owners who do not live in their unit from short-term letting their property. In other words, with a 75% majority vote, an entire unit block can prevent all owners from short-term letting their units: now and in the future. The cost of making and changing a Special By-Law means that once set, a Special By-Law is not likely to be changed in the near future. The presence - or absence - of such a By-Law may impact property prices in that block (positively or negatively, depending on the mix of owners, long-term tenants and short-term tenants).

2. Properties where the owner does not live in the property may only be available for short-term letting 180 days of the year (Greater Sydney area). If the owner lives in the home, there is no limit on short-term letting.

3. A mandatory code of conduct will be established for both hosts and guests to address impacts on neighbours such as noise, disturbance and effects on common property and shared spaces. A two-strike policy will be introduced, where if hosts or guests seriously breach the code twice within a two-year period, they will be banned for five years and placed on an exclusion register. This would mean that online platforms and agents will not be permitted to offer services to any person (or dwelling) that is listed on the exclusion register. A complaints register will be established and complaints will be assessed by independent adjudicators who will be required to make decisions on evidence and after giving both complainants and respondents a chance to put forward their case.

Impacts

The majority of properties are owner-occupied, and it's owner-occupiers that drive up property prices.  It's reasonable to believe that owner-occupiers will be attracted to properties that do not allow short-term letting; this may result in lower demand for properties that allow short-term letting and hence devalue those homes; alternatively, if fewer homes allow short-term letting, the investor demand for such properties may increase. 

Investors who wish to let their properties on a short-term basis may need to consider leasing the property long-term on a 6-month lease in quiet times and transferring to short-term letting for the busy period.  However, most tenants these days do not like 6-month leases: the trend is towards long-term leases, so investors may need to discount the rent to get a 6-month lease.

Higher rates for short-term letting: the reforms are likely to impact on supply of short-term accommodation, particularly as some owners corporations act to rule it out in their blocks.  The impact may be diminishing supply of short-term accommodation and hence an increase in rates.  This could be a positive move to restore balance to the long-term rental market.

Melissa Maimann is a Licenced real Estate Agent and Buyer's Agent in Sydney. She assists home owners and investors alike with an affordable service that empowers you to make smart purchase decisions. Melissa's service is fast, efficient and accurate. If you need a hand with your next purchase, don't hesitate to make contact.