Spruce up your property after the holidays

After the holidays it can be difficult to be motivated to do anything around the house. It can

sometimes be hard enough just being back at work! However, spending some time sprucing up your 

home after the holidays can provide a sense of accomplishment, and allow you to begin the year 

with a fresh outlook.

 

Below are three tips to help you change the feel of you place – with minimal effort.

 

Help your grass with some Nitrogen: If your grass got trampled by parties over the holiday season, 

chances are it’s looking like it could be in need of a little bit of love. Now is a great time to help it 

recover, and there are several options for bringing it back into full health. Grass responds really well 

to Nitrogen based fertilisers. This is because nitrogen is an important part of the photosynthesis 

process. It will also have an impact within a couple of days – particularly with the warm weather and 

if you ensure it’s hydrated – meaning your grass should really take off. This will help to make it look a 

deeper green, and also more lush.

 

Bring some outside inside: Maybe you’ve had to make room for extra people at your house over the 

Christmas period, and so moved your pots outside. Or, maybe you’ve never had many pots inside in 

the first place. However, potted plants can be a great way to change up the feel of your home. There 

are so many options these days, and interesting foliage makes for great impact. Have a look at some 

plants like a Fiddle leaf fig (Ficus lyrata), Maidenhair Fern (Adiantum spp.), or a Zanzibar gem 

(Zamioculcas zamiifolia). These plants can help bring life to any interior.

 

Change up your layout: The period following the holidays can be a great time to change the 

furniture layout in your home. It can be as simple as changing the orientation of the furniture in your 

lounge room, or you could even look at reconsidering the layout of every room! You could even 

consider rethinking the positioning of artwork on the walls, or possibly even bringing in some new 

pieces. Draw up a rough plan of your rooms, and think about how a new layout could work. It might 

appear so different that you could feel like you have new furniture. And don’t forget the old adage – 

a change is as good as a holiday!


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 21/01/2015 at 10:28 AM | Categories:

Tips for Buyers in 2015

With the arrival of a new year, many Australians may have resolved to finally enter the property market in 2015, or increase an existing property portfolio. 

This could be driven by the recent few years of strong performance recorded by property as an asset class. December CoreLogic RP Data statistics demonstrated that home values across the combined capital cities achieved a year-on-year increase of 8.5 per cent by the conclusion of 2014. This was just down from the 9.8 per cent achieved during 2013. 

Certain areas recorded even higher growth levels, such as Sydney with its 13.2 per cent year-on-year increase achieved by the end of 2014. This growth exceeded the predictions of many pundits, who may also have been surprised to hear of the unexpectedly high growth levels in several rural and regional areas. This demonstrates that the market can sometimes move in unexpected ways. 

Heading into 2015, none of us can really predict what the year ahead will bring. We can't say for sure whether interest rates will rise, fall or stay the same. Nor can we predict with any true accuracy the 'hotspots' which will provide the greatest capital gains, or the highest rental yields. Regulatory requirements may sharpen or become more lax, and economic activity abroad may see numbers of foreign investors increase - or drop - as a response. 

I believe it will be an interesting year to watch unfold, and below are my tips for buyers heading in 2015. 

 

1. PUT ON THE BREAKS 

We entered 2014 off the back of the 'sellers' market' of 2013, in which vendors could easily find a buyer willing and ready to meet their, at times, fairly high prices. This is still occurring to some degree in certain market 'hotspots' where a shortage of listings continues to drive upward pressure on pricing. 

However, I believe there are still many areas now where this frantic demand is cooling off, and the power in the negotiation is beginning to tip in the direction of buyers. For this reason, I would suggest buyers take their time when attending open for inspections, or when considering their different options. Be committed to looking at a number of different properties, instead of rushing to purchase at the first available opportunity. Take your time. Then come back with the price you believe the property is worth - not the price being pushed on you by the seller - and stick to your guns, or walk away. 

 

2. BUT DON'T BE TRAPPED BY ANALYSIS PARALYSIS 

I would never advise anyone to rush into a purchase without having done some thorough research. However, I've also witnessed prospective buyers become trapped by what is often referred to as 'analysis paralysis'. This occurs when someone overthinks, or over-analyses, a situation to such a degree that an action or outcome is prevented from ever actually occurring. 

These days we have some many great sources of property market statistics that it can even become addictive to pore over every possible metric, speculating as to the best, or worst, time to make a move. However, as enormously informative as these sources are, they still only demonstrate historical trends which have already occurred - not those anticipated to transpire. 

If you are truly considering entering the market, I would certainly recommend self-education on the historical trends of different locations and property types. But at some point it may be time to put down the research and begin to consider taking action. 

 

3. RENT WITH YOUR HEART, BUY WITH YOUR HEAD 

Speaking of trends, an interesting trend I witnessed in 2014 was an elevated level of interest in areas outside of the capital cities, such as Nowra in New South Wales and Queensland's Gold Coast. This leads me to believe that prospective first home buyers who feel property prices are currently too high to enter the market may not be considering all of their options. It's important to live in an area which is convenient for whichever lifestyle suits you best - whether this means access to a particular university, an abundance of local parks in a quiet neighbourhood, or a raging night life just down the road. However, it may not always be possible to purchase in these areas. 

This is why I always recommend buying in an area you can afford, and renting where you wish to live. It's my opinion that there's no point waiting until you can finally afford to buy your dream house, if doing so means losing the potential capital gains you could have been making through another property. Using this technique could help you to enter the property market in a way which works for your particular budget, while allowing you to live in a location which works for your chosen lifestyle. 

 

4. LEAVE YOUR EMOTIONS AT THE DOOR 

Buying a home can often be an enormously emotional undertaking. Considering where to lay down your roots, raise a family, or simply begin your journey as a property investor can all be highly personal concerns. This is then heightened by the high, and long-term, nature of the financial costs involved. 
However, buyers who enter into a home-buying negotiation with an objective mindset may avoid a number of emotional traps, such as bidding too high at auction for that 'perfect' 3-bedder with the cute picket fence, or signing up for a snazzy property which is way out of their price range. By committing to remain strictly impartial and sticking to a set of pre-defined parameters, it's my belief that buyers will secure the most favourable outcome. 
So look around, take your time, but don't be afraid to make your move when the time is right. By following the above tips I believe buyers may be positioning themselves in a way which sets them up for the greatest chances of property-buying success in 2015. 

 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 14/01/2015 at 12:51 PM | Categories:

3 ways to get more hours of the day

Most of us have wished we could achieve more in a day at one point or other. Somehow being able to magically increase the number of hours in a day would be one way of fixing this. However, an increase in productivity during the day could effectively achieve the same result – and is actually achievable.

Below are three tactics which may assist in achieving just that.

SLEEP MORE

While this point may appear counterintuitive, ensuring you’re getting an adequate amount of sleep can increase productivity in a number of ways. By getting your regular 8 hours, functions which help you remain focussed may improve, such as memory and stress management as an example. Being able to stay on top of all the bits and pieces you need to remember, while managing to keep stress levels in check, can be great rewards for making sure you prioritise getting enough sleep each night. By rearranging your schedule a little and sacrificing some time in front of the screen, or trying to get away from the office on time most nights, that extra hour or so of sleep may become possible.

COMMIT TO EXERCISE

Exercising 30 minutes a day, five days a week can sometimes seem like a hefty commitment. However, the benefits of these three hours of activity each week can really outweigh the effort involved. Exercise can develop cognitive ability through increased blood-flow to the brain, while research has also shown that there is a clear correlation between physical activity and mental health. Furthermore, increased physical activity, such as cardio and weight training, can even decrease your chance of physical illness and assist in lifting energy levels generally. This means less days lost to sickness or fatigue, and more spent being productive and active. For these reasons it can be well worth the effort to look at your options for exercise, and try to implement a plan to make it happen.

DEDICATE TO YOUR DIET

It may seem at first glance that eating takeaway on the go would be the best way of improving productivity, due to the time saved not needing to cook. However, this may not necessarily be the case. Ensuring you’re eating a healthy, balanced diet and fuelling up properly for each day can improve productivity as it can assist in decreasing the chance of weight- and other diet-related issues. Studies have demonstrated that eating a wide variety of healthy foods can even assist in improving happiness levels, creativity and engagement for some. This is why putting a small amount of work into eating right can lead to large gains in productivity, and in this regard planning is the key. Planning when, what and where you will eat at the beginning of the day (or week) will ensure you’re not tempted to turn to fast food.


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 18/12/2014 at 12:00 AM | Categories:

Bathroom storage guide

Create order from the chaos with a bathroom storage makeover.

Messy benchtops, cluttered drawers and damp towels on the floor are not only unhygienic, but they do little to calm a tired mind. Here are our tips to get you started.

Depending on your bathroom's size and layout, a practical storage layout might include built-in cupboards, floating shelves, a mobile trolley with shelves, and a medley of small storage including baskets and canisters. If space is at a premium, look to maximise all storage opportunities with recessed alcoves alongside the bath or shower, and clever additions such as wall hooks and rails.

 

GETTING STARTED

 

Clear the clutter

The first step to organised storage is a thorough declutter; clear drawers and shelves of cosmetics past their use-by date, throw out shampoos and soaps you no longer use, and find new homes for anything not strictly bathroom-related so that you can see exactly what you need to store.

 

Consider what you need to store

As the bathroom is a moist and steamy spot it's not always the best place to store spare towels and linen, so consider moving these to a cupboard elsewhere. Bathroom necessities generally include towels, grooming products, spare toilet rolls and kids' bath toys.

 

Store essential items within easy reach

Soap, shampoo and everyday grooming products should be stored within arms' reach of where you use them, such as a shelf beside the bath or shower or drawers beneath the sink. Items used less frequently can be stored on the upper and lower points of cupboards and shelves.

 

Consider built-ins

Cupboards and shelves that are designed to fit your bathroom specifications generally make the best use of space as they can be designed to go from floor to ceiling and fit into awkward spots. A mixture of open and closed built-in storage allows you to keep unsightly things such as cleaning products hidden behind closed doors and the more attractive ones out on display.

 

Keep tabs on belongings

In a shared bathroom make sure everyone knows what belongs to them by colour-coding toothbrushes and sewing different coloured tags on towels.

 

Consider maintenance

Glass shelves are easy to keep clean and won't visually clutter up the bathroom. Avoid over-filling shelves - plenty of light and space around display items will enhance the sense of space and calm in a bathroom.

 

Don't forget ventilation

Keep the bathroom fresh and hygienic by allowing moist air to escape through louvred windows or a ceiling or wall exhaust fan.

 

TOP TIPS

 

- If you're short on space, look around for hidden storage opportunities - consider installing tall cabinets beside the sink, hooks or rails on the back of the bathroom door, and a storage recess beneath a built-in bath or inside the bath hob.

- In a small bathroom look for furniture that double-duties, such as a sink with a cupboard beneath it, a vanity with built-in towel rail, or a storage stool.

- Keep storage furniture, such as vanities and shelves, off the floor by wall-mounting it to maximise the floor space in a tiny bathroom.

- Mobile storage, such as a trolley on castor with a couple of shelves, provides a handy spot for everyday essentials, and can be shifted away when not in use.

- A heated, wall-mounted towel rail is practical and stylish, plus it will dry towels quickly and cut back on laundry time.

- Narrow alcoves alongside the bath or shower are a handy spot for shampoos and soap, and won't clutter up your bathroom.

- Woven baskets for bathroom paraphernalia will add texture and natural appeal to a plain bathroom.

- If you're tired of the family flinging damp towels onto the floor, invest in a sturdy lidded laundry box for dirty towels.

 

COMMON PITFALLS

 

Wasted storage opportunities

Keep mess off the floor by seeking out hidden storage potential - consider an over-toilet storage rack, a corner cupboard for awkward corners, and a mirror fronted vanity cupboard with recessed shelves, all of which will boost your storage without sacrificing floor space.

 

Oversized storage

Overly-deep shelves and cupboards are difficult to organise and waste precious floor space, which only makes a bathroom feel smaller than it really is. Measure the items you need to store, and consider taking storage higher and wider to maximise floor space. For a streamlined look, set cupboards and alcoves deep into the wall cavity.

 

Boring storage

Add drama to your bathroom space by introducing unexpected storage pieces, such as a beautiful armoire, a painted vanity or an industrial-style shop fitting. Always ensure any wooden furniture is properly sealed to prevent water damage.

 

Disorganised drawers

Create order inside drawers and cupboards with drawer inserts, pull-out shelves and corner carousels that bring items right out.

 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 16/12/2014 at 11:10 AM | Categories:

How to: save money on tradies

Good tradespeople are worth their weight in gold. When renovating an expert tradie can truly make all the difference in coming in or above budget.

For tradies, time is money and if you're not working on a fixed price quote, then every hour trades spend on site, you're being charged. Below are four tips you can do to help save time for your tradies and in turn save money. While they may seem small, over a large job these little things really add up.

 

1. AVOID THE SET UP & PACK UP

When tradespeople start and finish work there's a substantial amount of setting up and packing up that needs to get done. In some cases, if the worksite is not deemed secure, tradies will have to unpack their tools from their truck daily.

One great way to save on this one-hour task is to provide your tradesfolk with a locked space on site that they can securely store their tools in. This could be an unused room, lawn locker or garage.

Give them a key so that they know their tools are safe when they are off site.

 

2. CLEAN THE SITE

A dirty site slows work down. It also costs money. Paying your tradie to clean is hardly where you want to be investing your budget.

Pitch in and get active. Simply picking up rubbish and sweeping every few days can make a world of difference to the pace of work, efficiency and safety.

 

3. BE THE SITE PA

The more time your tradies spend on the phone, the less time they are on the tools. So let your tradie know you are able to do some of the legwork for them, for example pick up supplies, arrange deliveries or check stock availability.

There are obviously many things your tradies won't be able to delegate to you, but you'll be amazed how many little jobs you can take off their hands (and how grateful they often are).

 

4. GET DIRTY

There are a lot of jobs during a home improvement project that can be done by even the most unskilled renovator, like digging holes and moving dirt. So role up those sleeves and give it a go.

Obviously it's essential to listen to your tradies and work within the workplace health and safety boundaries (which they will be able to guide you on), but in most cases you will find your team will welcome the extra help.

 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 12/12/2014 at 12:15 PM | Categories:

Preparing your pool for summer - 5 simple steps

It's been a long and cold winter, but with summer fast approaching, its time we consider preparing our pools for summer.

There are five simple steps to consider with preparing your pools and now would be a good time to get on top of them.

 

1. If you use a solid cover over your pool, first drain off the water, but ensure that it doesn't run off into the pool. Sweep the cover and clean it. If you want to remove stains from the cover, BioGaurd Stow Away is a great option. Once the cover is clean, store it in a dry place that's free of debris and a place protected from sun and weather damage.

 

2. Next, fill your pool. Your pool needs to be filled to the middle of the skimmer opening for it to properly circulate.

 

3. Once the pool is filled, check the Pump, Skimmer Basket and Filter. You need to make sure all the equipment is clean and in working order. Start the circulation system and remove debris from the pool. The filter is a very important part of your pool's maintenance program. If the system is not working, the products you add will not be able to perform their job either.

 

4. Once the filter is clean and in working order, you should circulate the water for 24 to 48 hours before taking a water sample. To take a sample, use a clean plastic container and scoop about a litre of water at around elbow-depth from your pool and take it to your local pool shop for thorough testing.

 

These steps are a good way to keep your pool preparation up to date and only need to be thoroughly followed before and after each swimming season.

 

5. Lastly ensure all pool fencing is in good, safe working order.

 

Happy swimming and don't forget the sunscreen.

 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 08/12/2014 at 9:29 AM | Categories:

Spare a thought for clients over Christmas.

Christmas and New Year are customarily very busy times for real estate agents, as settlements are sought to be finalised and any lingering negotiations or deals are sought to be closed before the holiday season begins. It can be important not to forget that client relationships still need to be maintained during this time, however, which can be done easily through simply letting them know how they might stay in touch during the silly season.

Clients, including vendors, buyers, landlords and tenants, will appreciate you taking the time to let them know your plans and whereabouts over the festive season, and whether or not you will be contactable. This information is handy as it will direct them to suitable contacts should they have any issues arise during this time, for instance a water leakage in a rental property. A benefit of remaining contactable during this period is that it will help to ensure that the Century 21 brand remains prominent in the minds of customers. It’s also a small gesture which might increase the possibility that they will consider your services for their future real estate activities, as it can be enormously irritating needing the help of someone only to find that they have gone AWOL for several weeks.

Below are a few other simple, yet effective ways of staying in touch with clients over the holiday season that you may wish to explore.

Christmas cards: Agents who personally write and sign cards that contain a small personal message, such as a congratulations on the purchase of a new home, can set themselves apart from their competitors. Such cards are well-received by clients as they demonstrate an element of personalisation, and treating as client as an individual with unique needs. While you’re at it, why not use Christmas cards as an opportunity to provide clients with the best contact details for you over the holidays also, so that they can get in touch with you should any needs arise.

Be involved: The very nature of real estate involves contact and relationships with a diverse range of clients. This can mean that, as an agent, you are invited to many social events as the end of the year draws near. Rather than looking towards these functions as time-consuming obligations as we can sometimes be tempted to do, why not instead adjust your mindset and think of them as a fun investment into your current client relationships, and an opportunity to develop new client relations leading into the New Year. It could be worse than working with a glass of champagne and a canapé in your hand!

Automate your email: As the clock strikes 5pm on your last working day for the year, it is important to remember to switch on your out-of-officer automated email reply. That way, clients will be immediately notified of the reason behind your lack of reply outside of the designated dates and secondly (again) how to contact you in emergency situations.

These small initiatives will not only assist in maintaining client relations, but should help to ensure that you are able to have a relaxing holiday, where you can totally switch off, as you will have successfully ‘taken care of business’ prior to stepping out of the office on Christmas Eve.


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 02/12/2014 at 12:00 AM | Categories:

6 tips to find an undervalued suburb

All it takes to find the next area that's set to boom is a bit of elbow grease and these six essential tips:

 

1. BE OPEN TO SEARCHING INTERSTATE

Chances are that the most appropriate suburb to invest for finding growth potential is not within a 10km radius of your home. In fact, looking outside your local area and buying sight unseen can actually be an advantage, because it forces you to look more at the growth drivers and statistics as opposed to trivial and emotional things, like whether or not you like the look of a bathroom. If you are still nervous about venturing into the unknown, the services of a buyer's agent might be your best bet.

 

2. LOOK FOR THE VISIBLE WARNING SIGNS

Look closely and you might realise that a working-class suburb is starting to show signs of accommodating for a wealthier demographic. Some of the tell-tale signs that gentrification is underway and property prices should adjust in a positive manner accordingly include:

- New cafes are starting up in the high street

- Low density development activity - such as developers purchasing house blocks and building 2-3 townhouses on a site

- Renovation projects underway on old houses

- Introduction of 'disposable income' shops

- 'Phasing out' of lower-rent service provider shops  (such as local accounting firms, dry cleaners, etc.) to make way for galleries, boutiques, cafes and bars

- Increased numbers of prep children in an annual intake.

 

3. STUDY SUPPLY AND DEMAND

It's very important to look for a low vacancy rate so you are more likely to find a tenant for the property. In addition to studying your Investment Property, also speaking to multiple local real estate agents for up-to-the-minute vacancy rates is a wise move. Other stats which indicate supply and demand include the typical number of days a property is on the market for before it is sold, the amount stock on market, the auction clearance rates, the renter-to-home-owner ratio and the internet search scores.

 

4. RESEARCH FUTURE INFRASTRUCTURE GROWTH

New or improved roads, rail or bus links are all examples of transport infrastructure which can add tremendous value to a suburb. Moreover, if a government is planning this kind of development it is a good sign that they are anticipating a strong population increase in the area, which is a giveaway that property prices will rise too.

It is also an indication that medical and education facilities, shopping precincts and employment hubs will also have to grow accordingly.

All of the proposed future spends are available online, through the appropriate council websites. It's also a good idea to keep a watch out for planning alerts, local community news, streetscape changes and new development starts.

And aside from upgrades and additions, it's important to consider intangible drivers which add value, such as scenic views of water, trees or a city.

 

5. CONSIDER THE DEMOGRAPHIC

If the population's median age is decreasing, while the population itself and the average household income is increasing, this is a solid indication that growth is on the way. For the most recent reliable stats, check out www.abs.gov.au.

Another giveaway that the numbers of young professionals are on the up is if the local bars, cafes and restaurants are becoming more upmarket.

 

6. MONITOR MEDIAN PRICES AND GROWTH RATES

This is where the ripple effect comes in. The best way to go about finding one is to first identify expensive suburbs that have recently experienced a surge in growth in the last 12 months. This is often happening within 10km from the CBD or towards the coastline and could be occurring due new transport infrastructure or perhaps the emergence of a new caf culture.

The next step is to find the cheaper immediate neighbours which have not had their growth spurt yet. Also monitor the next group of neighbours because the ripple can often go further than the adjoining suburbs.

Then compare the growth and price of the premium suburb with its neighbours. Put simply, the greater the difference, the greater the potential. Generally a good rule is that if there's more than a 10% difference in prices than the cheaper suburb should have some ground to gain.

Just keep in mind that the neighbours with the most similarities to the source of growth are the ones most likely to get a higher share of the ripple. Also, check that whatever it is that's fuelling the price rise would also suit the demographic of the cheaper suburb.

Therefore, identifying the chief growth driver(s) is crucial to your success in riding the ripple effect.

 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 26/11/2014 at 4:06 PM | Categories:

How to buy the right beach house

There's one Australian tradition guaranteed to stand the test of time - the annual summer pilgrimage where Mum, Dad, the dog and 2.3 kids pile into the car and head for their favourite coastal spot.

After a week relaxing on your favourite beach, the idea of buying your own little piece of seaside paradise can prove very tempting.

You tell yourself it may prove to be a good investment too - and it can be, if you stick to the beach house buying guidelines!

 

FIND THE RIGHT LOCATION

 

The best performing beachside locations are within 2.5 hours drive of a major metropolitan area, particularly those with access to a major highway.

Look for small seaside towns in a region with a multi-faceted local economy, which provides a strong local rental market all year round.

Don't be tempted by areas with a lot of high rise development and fly in visitors. These locations can have large numbers of new units added to a small market in a short period of time which makes these properties vulnerable during a downturn.

 

PICK THE RIGHT BEACH

 

The right location needs the right beach to ensure it is a popular destination for all sorts of visitors.

Long swept beaches with clean breaking surf are always popular, but even better is a location which also has a protected swimming area for smaller children.

Prime beachside areas play host to a number of different past times, like surfing, sailing, scuba diving and boating, which attract high income visitors at different times of the year.

Don't forget night-time either - seaside towns with a smattering of good restaurants and at least one decent late night watering hole are favoured by families with grown up children and holidaying groups of young adults.

The further south you travel, the more important it is to ensure your beach spot is close to winter activities like craft markets, wineries and national parks.

 

PICK THE RIGHT PROPERTY

 

The best results for properties in seaside towns tend to be from houses, not apartments, especially properties about the same size as a standard suburban house.

Tiny beach huts and sprawling mansions often perform quite badly during cyclical downturns.

Start your search around the middle of the local price range and zero in on a 3 bedroom houses around ten minutes walk away from the township.

The best properties will be in a relatively quiet bush setting and have a generous balcony or outdoor entertaining area and plenty of storage for boats and water sports equipment in a lock up garage.

And of course it should be close to a favoured beach - no more than 20 minutes walk.

Once you've found a likely candidate, I'd recommend searching through back copies of the local newspaper, paying particular attention to past events like flooding or bush fires.

 

HAVE THE RIGHT TIME FRAME IN MIND

 

Properties in coastal resort towns usually have greater price volatility and lower capital growth than those in capital city markets.

If you invest your hard earned money into a seaside property, you may have to be quite patient to see good results, as anyone trying to sell a beach house during the GFC can testify.

But a smart buy in the right location can pay good long term dividends to the shrewd purchaser.

 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 19/11/2014 at 12:45 PM | Categories:

9 steps to getting started in property investment

Admit it, you've been thinking about investing in property.

You've read the books, magazines and reports. You've been religiously checking real estate websites for properties.

Yet when push comes to shove, you get stopped.

You're not alone. In fact less than 6% of Australians or roughly 1.3 million own an investment property, even though property is a national past-time for us.

This is not surprising. A lot of people get overwhelmed by the process and quit before they even begin.

Reality is, property investing is pretty simple. There are no complicated steps you need to do and the concept is also easy to understand.

So here are nine steps to starting a property portfolio on a solid ground, without losing your mind.

 

1. CHECK YOUR FINANCES

This can be as simple as listing all your assets, including incomes and work out your expenses.

This will give you an idea how much cash you have available to invest. Don't immediately assume that you can't afford to invest. As long as you have a stable and reasonably good paying job with solid employment history, you won't have a problem getting a loan.

 

2. GET A PRE-APPROVAL

You can get pre-approval through your lender directly or through your trusted mortgage broker. Going through a broker before applying for a pre-approval can be beneficial if you're not sure you're financially ready to invest.

Applying for multiple pre-approvals is not a good idea. Each time you apply, the lender will check your credit record. If there are multiple inquiries, this sends a red flag to the lender and may refuse your application.

Top tips:

- Find out if you qualify for a loan

- Check your credit rating

- Consider reducing your debt or credit card limit

 

3. SET YOUR GOALS

What are you looking to achieve? What does success look like to you? Property investors generally invest in property to secure their financial future or to be free to do what they want, when they want it.

In order for you to achieve your goals, you must first articulate what your goals are. More importantly, you need to set a deadline as to when you want to achieve these. Then you can work backwards.

For example, if you're looking to replace your income and retire on your investments within 10 years, you can start by creating a 10-year plan, broken down further to 5-yearly, yearly, bi-annual all the way down to weekly timeline. This way you don't get overwhelmed by the enormity of the task.

 

4. UNDERSTAND YOUR ATTITUDE TO RISK

Your risk profile will dictate your strategy. What sort of risk can you tolerate?

Getting an understanding of your own attitude to risk will help you create a strategy that reflects this.

 

5. START BUDGETING

It's not sexy. It's not even remotely interesting. But budgeting is the only way to ensure you're able to balance your income and expenses. It allows you to see where you've been spending your money and helps you to plan for bigger expenses down the line.

There's good budgeting software available, such as this budget planner and this spreadsheet tool.

Make sure to set this up even before you start looking for a property.

 

6. CREATE A PURCHASE PLAN

How does an ideal purchase plan look like? It's simple. It should facilitate your goals of growing your portfolio to a point where it's producing the growth or income you're aiming for. It should serve as a structure for you to stay in the game.

Here is an example of a purchase plan you can follow:

- Define your strategy

- Set up your criteria

- Do your research

- Cull your list

- Get appraisal

- Do your due diligence

- Make and offer and negotiate

 

7. BE INFORMED

Use the tools available to you to make an informed decision. Knowing the market can be key to making the right investment choice.

Visit realestate.com.au/invest from some valuable insights.

 

8. STAY FOCUSED

Make sure you stay focused. Investing in property is a business choice, not an emotional one.

- Get clear about what you want to achieve

- Set a date as to when you want to achieve this goal

- Identify milestones you need to do to get to your goals

 

9. DON'T GIVE UP

It's easy to get overwhelmed when you're starting something new and as massive as property investing.

But don't give up. Just imagine in 10 years, if you buy the right properties this year, you could be sitting back, feeling happy, secure and even proud that you bought properties that more than doubled their values while your peers and everyone else wishes they'd bought back in the day.

How good would that feel?

 


0 comments | Posted by Reality Bytes - Real Estate Training Blog on 12/11/2014 at 9:27 AM | Categories: