Monthly Archives: November 2010

Are you a first-home buyer or an investor? One of your first questions will probably be whether it is better to buy a house or a unit.

Buying a house has some obvious advantages – they are generally bigger, and if you’re concerned with investment return over the long term then a house will usually have a better long term average growth rate than a comparable unit. On the downside, houses cost more to buy and they involve a lot more work to maintain; most units won’t have much of a yard – but you can guarantee that your lawn will be much larger in a freestanding property!

If you’re more focused on convenience and don’t have the time to maintain a property then consider units, apartments, and townhouses. These properties are generally found closer to amenities, are easy to maintain and a lot of maintenance (in communal areas) is taken care of by strata fees. Units are also generally cheaper than houses, but still offer a high rental yield.

One potential downside of unit living is your inability to choose or keep a safe distance from noisy neighbours – you may feel assured when you move in, but your nice, quiet neighbour could just as easily move out!

Unlike a lot of property decisions, there is a major emotional dimension to choosing a house or a unit. If you need your space, and you need to feel like the King of your castle then living in a studio apartment with a shared laundry isn’t for you. If, on the other hand, you like having people close by and don’t consider yourself a homebody then a unit could be a great way to take your first step onto the property ladder without breaking the bank.

In my experience, the buyers that I meet end up buying the home for the future they’re planning; if you’re a young couple looking to start a family, then a home that you can renovate or expand probably won’t come in the shape of a unit of villa. If, however, you’re a couple of young professionals with buzzing careers and no family plans then a unit could be the perfect solution.

One last piece of advice: Once you know what sort of house you want, speak to your realtor about areas that have growth in that property type. Or, if you have a dream suburb, ask them how you can find the home you want in the price range you can afford.

I have plenty of experience finding buyers of all stripes their dream homes; stop into the office or give us a call and we’ll get the ball rolling!

Trying to cut down on our carbon footprints is something that a lot of us have on our minds. So what can we do to try and help the environment and also help ourselves?

Well, Armidale has a great climate for putting in some plants and growing our own food. Whether it’s a veggie patch or a few fruit trees, our mild summers make the New England’s heart an ideal place to cultivate seasonal favourites like lettuce and tomatoes.

Think about it, not only are you getting fresh healthy produce, but you are saving on all that energy and fuel that is needed to transport your groceries from around the country or even the other side of the world.

Growing your own food is also much more convenient – imagine if you only had to walk to your back garden each time you needed a new lettuce or some tomatoes for your salad. Obviously most modern families don’t have the time or space to grow a lot, but even growing some chillies in a pot on your patio can make a difference to everyday cooking.

If you are interested putting together a vegetable garden of your very own I found some tips to get you started. Getting advice in person from a local gardener is always best, so visit your local hardware store or nursery this weekend, I’m sure they’ll be able to point you in the right direction.

Hello again from the entire team at Professionals Armidale!

This week I would like to talk about the advice some buyers receive from well meaning friends, financial advisors and legal representatives.

Not all deals are good ones and advice is important however some advice may not be neutral or in your best interests. I recently caught up with an old client of mine who told me two stories from when she was looking to buy some several years ago.

The first case was advice she received from her finance broker. The broker told her not to buy a property because ‘it is too much’ (in his opinion)… so she didn’t buy…

On the second occasion she found a house and the ‘pest report came back in a negative way’ (not to fear though, as she was told for $10,000 the problem could be fixed)… so she walked away from the deal also.

She then went on to tell me that she regretted me not buying the first one because it recently sold for $100,000 more than before and she said “that advice cost me $100,000”.

She continued on to then tell me that the other property was purchased by someone she knew… and guess what, the pest report was fine… the only difference was that this pest company didn’t also sell a $10,000 system… and some real estate agents have a bad name for ripping people off! That property has increased in value now by $85,000.

I’m not saying to not take on advice however do what you want, and get several opinions and remember human nature is to say ‘NO’.

Real estate over time goes up in value and really it is going to be YOUR home!!! And if you love your home, it doesn’t matter what anyone else thinks, it is your castle.

With Australia’s aging population, the demand for group tours and holidays has never been higher. Armidale is no exception, which is why it’s exciting to hear that there is a not-for-profit company coming to town to discuss the educational adventures to be had in Europe for people over 45.

Get down to NERAM next Monday where Odyssey Travel will open your eyes to the many enlightening journeys on offer for 2011. The presentations are free, without obligation, and complimentary afternoon tea will be served.

Since Armidale is a hub for education in the region, I expect that there will be lots of interest for the intellectual set.

To register for the seminar, you can email them directly or call 1300 888 225.

Investors tend to look at units, villas and other strata controlled properties as financially secure because they don’t require as much maintenance as houses. Don’t go thinking, however, that these types of dwellings don’t come with their own challenges! Here are some of my top tips.

Location, as always, is king. You have to make sure that the area has a high rental population and good returns for investors. Suburbs near each other may fluctuate in rental prices, so it’s best to ensure you’re in the area that people can afford, yet that also has reasonable returns. If you’re thinking of buying out of Armidale then city, coastal and suburban are all popular places to invest in apartments.

The type of property is also something you need to look at closely – if there are a lot of families renting in the area, a single bedroom or studio may not be popular and may be on the market longer. If there are a lot of single professionals, then that type of property would be snapped up in no time. Newer apartments generally appeal to younger renters, but any aged property that is well maintained and presents well should attract quality tenants. New properties also have higher depreciation which can benefit investors at tax time, but you should weigh up whether this is going to be more beneficial than purchasing an older (usually cheaper) property.

What facilities does the apartment complex offer? Complexes with resident and visitor parking, BBQ, pool and gym facilities and that are close to local shops and amenities always add value and appeal.

Make sure you’re aware of the applicable strata or body corporate costs and sinking funds. These are annual costs that you should build into your budget. Newer apartment complexes may have lower sinking funds because the likelihood of maintenance is lower than in older buildings, but they may have higher strata or body corporate fees, so make sure you have all of the figures before committing to anything.

If you’d like some more tips on making your investment, please leave me a comment or contact me.

To receive our FREE report “18 ways to determine how much your Armidale property should rent for” email us: armidalepropertyinvestor@professionals.com.au and we will email the REPORT to you ABSOLUTLEY FREE!!”

Hello again from everyone at Professionals Armidale.

This week I want to address an issue that is of great concern to me… that is the issue of property values whether it be a sale value or in this case especially, a rental value.

Picture this, 2 identical properties side by side.. Property ‘A’ is rented for $300 per week whilst property ‘B’ is rented at $160 per week, and has been since 2001.

The owner of property ‘A’ talks to the owner of property ‘B’ and the subject of rents arises, mainly because owner ‘B’ is thinking of selling because they really need an extra $100 per week in rent, which the managing agent says is ‘unachievable’.. the agent also happened to be good friends with the tenant…

This story doesn't have a happy ending…

However, it made me think… Just how many landlords are getting a second rate service because their agents do not do rent reviews on a regular basis, and are costing them hundred of dollars each week??

Please do not give your greatest asset to a person to look after who has never been a landlord themselves… Believe me, they do not care… How can they?? They have never been in your shoes… it’s just a job to them…nothing more!

The same goes for sale properties, how can you give someone they keys to your home and have thousands of dollars at stake, when the person you have given them to has never bought or sold???

Think Real Estate, think Professionals

Armidale’s Dumaresq shire is calling for more women to join Local Government and get involved with the community. I wholeheartedly agree and encourage women of all ages to put up their hand and have their say in the running of our local government.

The only current female representation, Councillor Dorothy Robinson, has thrown her support behind the call, saying that more ideas like her cycle hazard website could be generated if more women who wanted a healthy, sustainable community joined council.

Some of the most prominent political figures in Australia today are women, with both our Prime Minister and Governor General being women. Participation in local council is a great place to start a long and successful political career.

Meanwhile, I encourage you to get along to the temporary café being run by local TAFE students. “Café T” offers both full 2-course service as well as bargain fast food options on a Wednesday. It gives students the opportunity to experience working in a real-life setting, and it gives the rest of us a chance to enjoy a delicious two-course meal for only $15! What a steal!

I’m proud to live in a community that does so much work for a variety of good causes, and next weekends wine night at the Railway Hotel in support of East Timorese educational facilities is set to be a fun and worthwhile event!

Aleita is a small town in the mountainous climbs of East Timor, and the group organising the event hopes to raise the $10,000 needed to build a new school. When you think about how much money we spend on educational facilities in the region it seems like a small contribution to make for a huge difference to children’s lives.

Armidale has always been a place that places a priority on educational excellence with our university and independent schools setting a high standard for the region. It’s great to see that we’re putting our focus on learning for those less advantaged than us.

There will be wine talks, dinner and an auction of wines courtesy of Gourmet Traveller magazine.

Tickets are just $40 and can be purchased by calling Tony at Trax on 6772-3109. If you can’t make it on the night and would like to make a donation, ring Jane McCowen on 6775-8348

Hello from everyone at Professionals Armidale, This past week has been an historic week – not only did we see Americain win the 150th Melbourne cup we also saw the RBA raise interest rates buy 25 basis points (or a quarter of a percent) and one of the major banks followed on with this rise by giving their customers an increase of 0.45% which has angered many consumers and commentators….. Which bank????

Interest rates were always going to increase however many thought this would happen in October, because it didn’t everyone expected that the RBA would keep rates on hold this month especially considering that inflation and the economy is doing nicely. What does all this mean for the real estate market? Not a lot to be honest, the market is strong in Armidale and with these “interest rate” pressures that are dominating the news it only makes regional NSW a more appealing alternative.

The RBA my also give everyone a nice Christmas present by raising rates again which most economists predicted earlier in the year. After this, we should see the same levels for some time.

The interest rate situation isn’t a bad thing for Armidale I really think Armidale will benefit from the latest rise or rises; the Sydney market for instance is still very strong with many international buyers fuelling the market to new heights. Many families are simply being squeezed out of the market and Armidale is proving a very good alternative the tree change is stronger than ever and will only continue.

Another important factor to remember is that vacancy rates in Sydney are around 1% on rental homes with increases in rent being seen of up to 60% in some cases, Armidale’s vacancy rate is currently around 2% and the has seen very strong increases in rent also it simply all comes back to supply and demand and Armidale is very much in demand!!!

HSC exams began on October 14, and while you may be busy fretting for your son or daughter’s wellbeing during this stressful time, I thought I’d take a moment to talk about the part they are probably more excited about – the end of school and the increasingly popular ‘schoolies’ week.

Whilst I have my doubts about the large-scale celebrations that get underway on the Gold Coast each year, they are undoubtedly a popular option. Accommodation quality varies wildly, so be sure that you know not only where your child is staying, but the quality of the management and nearby amenities.

Safety is a priority when attending a large schoolies event – talk to you child about having enough mobile phone credit and access to emergency funds. Ensure that they have their Medicare card and Private Health details where applicable – while it’s highly unlikely that the worst will occur, it’s better to be safe than sorry.

Would you prefer your teenager to stay close to home or do you have a tighter budget? There are lots of things that can be done in the local area that don’t cost the earth. Of course, they might not be so interested in your suggestions, but it’s worth a try.

Camping with immediate friends (and a supervising adult) is a fun alternative to clubbing for outdoorsy teens. Pack up the car, pick a campsite and get away from it all. Or, choose a smaller town closer to home. Lots of Armidale kids choose Byron Bay for their short break, but Valla Beach and Coffs Harbours are closer to Armidale and offer a relaxed beach atmosphere.

An important thing to remember, no matter how nervous you may be is that this once-in-a-lifetime experience will be something you child could be adamant about and it’s generally healthy for young graduates to let off steam to celebrate their achievements. Our role as adults in the community is to help kids through these milestones sensibly and safely.

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