PH Property

Real Estate Market, Mitchell Street Works and Christmas

Fri, 18 Nov 2011 01:50:00 GMT

Our Christmas tree is up and filled with lots of delicious candy canes so please bring the kids in – they’re sure to have fun taking one from the tree! There’s lots happening in Bendigo leading up to the festive season especially with the rumour going around town regarding the buses on Mitchell Street. I can tell you that there is a great compromise that has been discussed with local traders from The Bendigo Council and at long last we have a plan that in my opinion should happen sooner than later. Plans are available for your viewing at the Council offices.

The property market is still ticking along nicely however we do expect the open for inspections and sales to drop off a little as the festive season approaches. Rentals are still in high demand with two bedroom units and homes near the university and hospital precinct letting out very strongly.

I say don’t put off your search over Christmas, get in whilst things are still available!!

The team at PH join me in wishing everyone a joyous fun filled holy Christmas and fabulous new year and most importantly drive carefully!

OVER PRICED HOMES SITTING ON THE MARKET

Fri, 09 Sep 2011 02:26:00 GMT

This is an article from Real Estate Business written by Simon Parker. We have taken some of the story for this Blog, which is relevant to real estate in general, but very relevant to Bendigo. When we appraise a property we have the facts and figures to support the potential value we put on it. Properties that are listed for sale at a higher price generally stay on the market for an extensive amount of time. Most of them are then reduced to a realistic price...and sell.

Not all properties that stay for sale for some time are over-priced, there are many other factors to consider, however it is fair to say the majority of homes, particularly in areas where similar homes have sold will be over the odds and not meeting potential purchasers expectations.

“A lot of agents, particularly younger agents, don’t like giving vendors bad news. But good agents know the bad news is not their fault if they have marketed the property correctly.

“Agents need to honest and upfront with their clients and realise that it is not their fault that the vendor wants X [price], but the buyer wants Y.”

Mr Raine said while agents should choose their vendors wisely, he noted that the gap between vendors’ and buyers’ price expectations was beginning to narrow.

“In the last couple of years we have seen vendor and buyer expectations at odds, and it takes six to eight months for their expectations to meet,” he said.

“We are just starting to see this occur now as days on market have reduced considerably in the last six months. What this means is vendors are starting to meet the expectations of the market, and not the other way around.”

He said agents should be relying more on property and economic-based statistics, both local and international, to help quantify a property’s price.

Century 21 Australia general manager Paul Mylott told vendors in his most recent blog that, in uncertain markets, it’s particularly important that they choose an agent that “will be frank and honest with you.”

“I have no doubt that when pitching for your business, less credible agents will give you positive information regarding price expectations and the like, that may not necessarily be reflective of the true state of affairs.

“However, it could very well be what you want to hear, and thus it is tempting to believe them.

“Good agents will refrain from over-exaggerating the positive state of the market to obtain your listing. While you may not like to hear it at the time, receiving an honest assessment about market conditions from the beginning should help to make your selling process a lot easier to handle.

“As a vendor you will also need to trust your agent to guide you through the price reduction process; that is, if your property has not yet sold, lowering its price to a level that meets buyers’ expectations.

“Believe me, this won’t be an easy conversation for your agent to have with you, however a good agent will approach you respectfully and should display an understanding of your situation.

"They know you don’t want to hear that your expected price may not be attainable, and will attempt to deliver the disappointing news in a truthful way.”

Looking at investing real estate in Bendigo?

Wed, 06 Jul 2011 23:16:00 GMT

At PH PROPERTY we are more than happy to have a chat about looking for the right investment property for you, so make a call or send us an email to make an appointment!

There is no right or wrong way to invest in Bendigo – it depends on what you are looking for to suit your circumstances.
If you’re out of town you may be better to invest in something low maintenance/modern which does not require as much maintenance or care. If you are looking to develop later on you may want an older home on a larger block.
Others prefer location with a lesser rental return, but potentially higher capital growth.

Here are some pointers to keep in mind to hopefully help with your decision on purchasing a home in Bendigo for investment:

General advantages of owning an investment property:
• Generally all maintenance is tax deductible
• You can organise a quantity surveyor to depreciate certain items in the house
• You can set your property up to be geared positively or negatively
• Mid to long-term capital growth for great re-sale

An older property:
Pro’s:
• Generally better rental return
• Potential to renovate and on-sell later on with better capital growth
• Generally they let out well – particularly under the $300 per week mark
Con’s:
• Possibly more ongoing maintenance required
• Harder to claim depreciation on the building

A new property:
Pro’s:
• Easy maintenance
• Depreciation can be claimed on the building at 2.5%pa as a general rule (see your accountant)
• Other items such as carpets, stove, light fittings etc.. can be depreciated at a higher rate – this is can be organised through a Quantity Surveyor
Cons:
• Sometimes there is slightly less capital growth (depending on location of course)
• Not a lot of room for capital improvement (unless you extend)

What should I do before buying a property managed by an owner’s corporation?

Thu, 07 Jul 2011 00:32:00 GMT

Check the body corporate (owners corporation) prior to purchasing your townhouse, unit or apartment.
Before buying a property managed by an owner’s corporation, you should find out more about the owners corporation. You can get a copy of the owner’s corporation certificate or inspect the owner’s corporation register.

The owners corporation certificate is part of the vendors statement or section 32. It is the responsibility of the lot owner who is selling the property to ensure that the certificate is included by the section 32. You can also buy the certificate from the owner’s corporation. The certificate and register contain important information about the total fees, the allocation of lot liability and lot entitlement for the apartment or any legal liabilities. You should check:

- The cost of living in the owner’s corporation

- How well the owners corporation operates

- The information in the statement or section 32

- The information provided in the owners corporation certificate (which must be included in the vendors statement)

- The details contained in the plan of subdivision. You should check the boundaries of the lot and common property, the location of easements and whether the allocation of lot entitlements and liabilities is fair and reasonable

- The contents and conditions in the contract of sale

- The owner’s corporation register

- The matter contained in the owners corporations rules

- Any lease/licences of common property.

If you would like further information with regard to the owners corporation or need assistance in the matter please call our knowledgeable, friendly and experienced property managers on 54541999 or pop into the office at 38 Mitchell Street.