xElders Real Estate - Guide to Buying, Selling, Renting & Investing

Guide to Buying, Selling, Renting & Investing.

Selling your home.

Selling your home can be one of the most daunting emotional and financial experiences you’ll ever face. That’s why most Australians are choosing the security and knowledge of a professional real estate agent to guide them through the process. Once you’ve made that crucial decision to work with an agent to sell your home, what comes next?

What to look for in an Agent.

When choosing a real estate agent, the most important things to look for are trust, communication, experience, local knowledge, passion and reputation. Elders Real Estate knows this. We know just how important selling your home is, and we’re determined to make the process as simple and rewarding as we can. With over 170 years’ experience in real estate Australia-wide—rest assured, we know exactly how it’s done.

Trust Your real estate agent will be guiding you through some big decisions, so building a relationship based on trust is important. A good real estate agent is totally transparent and always listens to your ideas and concerns. When using an Elders Real Estate specialist, we’ll ensure you remain in complete control every step of the way.

Communication Good communication with all parties is essential when selling your home, and Elders Real Estate specialists are trained for this. We understand today’s real estate is a 24/7 service and communicating with you on a regular basis is our priority. In the early stages of designing your selling plan, we’ll work out the best times and modes of communicating with you to suit your needs and your schedule.

Experience Most Australians only sell a home once or twice in a lifetime. With all the rules, regulations, fees and charges that are involved, it’s hard to know where to begin and what’s next. Elders Real Estate specialists are fully qualified, experienced agents who’ll guide you

through the process as simply and easily as possible. We do all the hard work for you, and we’ll absolutely never mislead or pressure you into making decisions you don’t fully understand or aren’t comfortable with.

Local Knowledge Elders Real Estate specialists live and work in the communities they cover, so whatever’s going on or whatever buyers are expecting, we already know about it. We always study comparable homes sold, or currently listed, in your local area. And by closely networking with our 400 real estate offices across Australia, we stay on top of identifying potential buyers and monitoring interest rates, market confidence and the latest national and international trends.

Passion Passion is the difference between doing a job and doing a job well. At Elders, our agents aren’t selected on skill and expertise alone. We choose our real estate specialist for their enthusiasm and belief in the job, and we do this because our experience shows passion creates successful sales time and time again.

Reputation Elders is Australia’s most established real estate brand. We’ve worked hard to make sure we continue building on our unmatched reputation as a trusted, hardworking, honest brand, loyal to Australians for the past 170 years. And despite our competition, we continue to be the best in real estate—we have the sales to prove it.

Method of Sale.

After you’ve chosen an agent to work with, the next step is to decide how you’re going to sell your house. There are a number of ways to do this in Australia—private treaty, public auction or sale by tender/ expression of interest. Your agent will take you through the options and help you decide the best selling method for your home, based on your property’s style, location, current market conditions and how quickly you want to sell.

Private Treaty

Private treaty is the most common way to sell a home. This is where you and your Elders Real Estate specialist agree on an asking price for your home. Your home is then advertised for a period of time, or until it’s sold. Prospective buyers will submit an offer, which will be negotiated by us, on your behalf. A sales contract is signed, which has a small cooling-off period where both you and the buyer can withdraw from the contract. Selling your home by private treaty can take a little longer than other methods, but you’ll have more time to consider offers and negotiate for the highest possible price.

Public Auction

Auction is often used when a property has unique factors that could draw considerable public interest, or when you want to sell your home quickly. There are three opportunities to sell using this approach— before the auction, at auction, or immediately afterwards. The auction process involves choosing an auction date, time and place, setting a reserve price with your agent (the minimum you’re willing to sell for), and conducting a short, intensive marketing campaign to gain maximum exposure and interest. An auction environment is usually emotionally charged and encourages strong, competitive bidding. As no upper price limit is set, you sell to the highest bid on the day. If you don’t reach the reserve price on auction day, you can either decide to pass it in (not sell), alter the reserve price, or have our Elders Real Estate specialist negotiate further with buyers. Once a bid has been accepted, a cash unconditional contract is signed and a 10 percent deposit is made on the day. There is no cooling off period with auction sales. Selling your home by public auction encourages prospective buyers to act quickly and emotionally and can often gain extraordinary sales prices, reflecting the true market value of your home.

Sale by Tender/Expression

of Interest

The tender/expression of interest process requires prospective buyers to submit the highest price they’re willing to pay for your home (an offer), by a set date, with a price guideline given. Offers are kept confidential. You’re able to accept or reject offers at your will, or our Elders Real Estate specialist can negotiate further. Sale by tender/expression of interest is a more relaxed and controlled way of selling your home and is growing in popularity.

We understand how important selling your home is and we know exactly how to help you do it well. Call a local Elders Real Estate specialist in your area today for your free, no obligation quote.

Getting the right price.

Setting the sales price for your home is one of the hardest and most emotional decisions you’ll have to make. This is where our expertise can really help. We assist you in setting a realistic asking price after researching and considering comparative sales prices and competing properties in your area, potential buyers, current market demand and your home’s special features. Once potential buyers have been identified and market trends have been evaluated, we’ll design a marketing campaign specifically for your property.

Marketing your property.

The first 21-days are when you’ll get the most interest in your home. Your Elders Real Estate specialist will design a well-executed marketing plan to gain maximum exposure for your home during this period, and beyond if necessary. We’ll formulate a multimedia campaign to capture the attention of your home’s specific target market to find that perfect buyer. This includes signage, print adverts and editorials in local and national newspapers and high-profile magazine, direct mail, window displays, internet profiles and our extensive email database. Your home will be listed at eldersrealestate.com.au which is visited by on average, 1.6

million Australians a month. We also link your property details to our wide network of 400 offices throughout Australia. Your information will be loaded onto our innovative MyDesktop real estate system, which allows us to list your property on all the major real estate websites in Australia, like domain.com.au, realestate.com.au, realestateview.com.au and realtyonline.com. au, and keeps your property consistently at the top of search engine returns. The system also allows us to produce online brochures and floor plans to use on websites, where we can monitor interest in your property.

First impressions count

Now you’ve made all the big decisions, it’s time to get your home in order to increase interest and entice potential buyers. During our time in real estate, we’ve seen all the tricks and trends in the business come and go, so we know exactly what current buyers are looking for. Spending an extra few hundred dollars getting your home into prime condition could grow into thousands when you sell. Our real estate specialist will talk you through the process of seeing your home through the buyers’ eyes, and offer advice on how to add value to your home by showing it at full potential. Here are a few tips to get you started:

Outdoors

• Your front yard is often the first impression a buyer has, so you need to make sure that impression is a good one. Tidy your front yard by removing any toys, rubbish, leaves and weeds. Give your garden a mini-makeover by planting some attractive flowering perennials and mowing, edging and fertilising your lawn.

• Your back yard is just as important, so make sure you give it a good clean-up and remember to remove any evidence of your pets.

Indoors

• De-cluttering is the most important thing to do inside your home. Make sure all your bench/table surfaces are clear and remove unnecessary items from your floors to create the impression of spaciousness.

• Give your home a spring clean and open all curtains and blinds to let in the natural light and show off garden views.

• In the eyes of the buyer, the two rooms of most interest are the kitchen and bathroom. Make sure they’re sparkling clean and at their best. Remove electrical appliances, packaging and personal items. Clean your oven, cook top, fridge door and tidy inside your cupboard—(yes, people will peek inside your cupboard doors!). Make sure the toilet, shower and hand basin are spotless and smelling fresh—open windows, burn essential oils or use a gentle air freshener in bathroom areas to help.

• Bedrooms should be neat and tidy. Make the beds with fresh sheets and clean bedspreads/quilt covers and plump-up the pillows. Putting personal items away will create more space and always remember to tidy inside walk-in-robes and cupboards.

• Lounge and entertaining areas should be neat and tidy, with all unnecessary items put out of sight. Carefully display any interesting photos, books or ornaments to add warmth and interest, without creating clutter.

• Wash your windows and remove cobwebs under verandas, carports and around windows.

• Check all hidden areas where a buyer might look. Things like flaking paint on eaves, posts and window sills might need to be touched-up. Check if your front door needs painting or cleaning.

• Make sure your boundary fences and gates are in good condition. A quick repaint or repair job could make the world of difference.

• Fix any annoying little faults you’ve been putting off, like broken light bulbs, missing drawer handles, broken toilet roll holders/towel rails and dripping taps.

• To create a welcoming atmosphere on open day, make sure the temperature of the house is comfortable—if it’s a hot day, turn on the air conditioning, it it’s a cool day, turn up the heat. Place some beautiful flower arrangements strategically through your home; introduce some homely and appealing odours like freshly baked bread or brewing coffee; and create a pleasant mood by playing some relaxing music softly in the background.

• Make sure you and your pets leave the house during open inspection. Not only is it a nerve-wracking experience for you, it can also be off-putting and uncomfortable for potential buyers. Your Elders Real Estate specialist will ensure everything runs smoothly and your home is well respected during your absence.

We understand how important selling your home is and we know exactly how to help you do it well. Call a local Elders Real Estate specialist in your area today for your free, no obligation quote.

For more information about Elders Real Estate, visit: eldersrealestate.com.au

Buying your dream home.

Have you ever considered that most of life’s memories are easily traced back to the home you were living in at the time? It’s not surprising then that buying a home is regarded as one of the most significant and exciting lifetime decisions we make. We know these decisions can sometimes be complex and confusing, and that’s why we’ve done all the hard thinking for you. We want you to focus on all the important areas that will make your buying experience satisfying and memorable for years to come.

Setting your finances.

The very first thing you’ll need to do when buying a home is to establish your finances. Think about how much you’re willing to spend, how much you can afford to borrow from mortgage lenders and how much you can put towards the deposit.

Home Loans

The two most common loans taken out by Australian home buyers are variable rate loans and fixed rate loans. There are a number of additional loan structures available to suit different situations, such as introductory rate/honeymoon loans, construction loans, professional packages, low-doc loans, bridging loans, split loans, reverse mortgages and line of credit/equity line loans. Your mortgage lender will take you through the features and advantages of all options to help you make the right choice for your individual circumstances.

Mortgage lenders generally loan three and a half times your gross annual income, depending on your existing deposit amount and your current financial obligations. When setting a safe borrowing limit with your lender/broker, remember to factor in additional costs like legal fees, stamp duty and removal costs.

Deposit

Lending institutions will loan up to 80 percent of the property’s value, so you’ll need to contribute around 20 percent for the deposit. It’s possible, however, to borrow more if you take out mortgage insurance to protect the lender if you default on your repayments.

Make a wish list

Once you’ve safely set your financial limit, you can start thinking about what you want from your home. The best way to do this is to develop a wish list. This is a great process for identifying, discussing and prioritising your needs and wants—it’s also handy to help you resist any temptation and sales pressure you might experience when out house hunting. Of course, your wish list will be influenced by your budget and your current lifestyle and needs. But don’t just focus on today—put some thought into your future lifestyle and needs as well. It will help if you ask yourself the following questions:

• What type of house do I want—a freestanding house with a garden, an apartment or a townhouse?

• How close to public transport, shops and services do I want to be?

• How many bedrooms and bathrooms do I want?

• Do I plan on extending or renovating sometime?

• What do I expect from local schools, recreational areas and neighbours?

• Do I want a big or small yard/a pool?

• What are my predicted needs in the future?

• Do I want to build my own home?

• What type of surrounds will make me happy?

Choosing your location

After setting your budget and developing a wish list, you’re in a good position to choose the ideal location that realistically matches your wants and needs. Whether you prefer to live in a coastal area, the metro outskirts, or if inner-city living appeals to you, choosing the right location for now, and for the future, is important.

Remember that your home is an investment. Not only will you expect your home to adapt to your needs over time, you’ll want it to hold its value— and ideally, increase in value. So it’s a good idea to put some thought and research into analysts’ forecasts of up-and-coming locations and predicted real estate boom areas.

Understanding the market

Once you’ve agreed what you want from a home and where you want to live, it’s time to get to know the market. This will involve researching real estate websites and newspapers to follow current property prices in various areas and brush-up on the latest real estate analysis. It’s also useful to establish good relationships with real estate agents to stay up-to-date with market trends. No matter what type of property you’re after or where you want to live, drop in to an Elders Real Estate office and one of our specialists will happily discuss your requirements, enter them into our computer system, and match you with any suitable homes that come on to the market. We’ll also let you know pricing trends in your favourite areas and where they’re likely to go in the near future.

Finding the right one

Finding the perfect home may take some time and commitment. Start by checking out real estate pages in newspapers and on websites, like thehomepage.com.au and homehound.com.au. Visit window displays at real estate offices in the area and call on agents regularly to let them know you’re still on the hunt.

Be prepared to look at many different homes in your search, so set aside plenty of time for drive-by and open inspections. This hands-on approach will help you refine your wish list and reconfirm the elements of a home that are important to you. You’ll find that visiting a wide range of houses will help to identify things that you don’t want, which can be a great help narrowing down your ‘perfect’ home.

When you find the home you’ve been looking for, it’s time to get serious. Visit the property and surrounding areas at different times of the day to monitor traffic noises, on-street parking and any other external disturbances. You’ll get a good feel for the street if you talk to neighbours and shopkeepers. Drive around and visit the local parks and schools and check out surrounding roads and public transport. Contact the local council to find out if there are any future developments in the pipeline or if there are any building restrictions in place.

Legal advice

When you’ve reached the business end of the process, you’ll need to call on the experts. You’ll want a solicitor, conveyancer or settlement agent to look over the contract of sale and carryout the settlement process of the property. They’ll also arrange for a building and pest inspection to report any current or potential problems, hazards or concerns. The settlement time frame is negotiable, but it normally takes between two and six weeks.

Conveyancing Conveyancing is the legal process of transferring the property from one party to another. You can use a solicitor, conveyancer, settlement agent, or you can do it yourself with a DIY conveyancing kit. The conveyancing process is quite complex and the person responsible will take care of things like:

• Offering independent advice on your contract of sale

• Calculating all rates and taxes

• Checking for outstanding charges in relation to encumbrances or easements

• Strata title searches and reports

• Preparing transfer documents

• Liaising with the real estate agent on your behalf

• Preparing and organising deposit payments, mortgage agreements and payments of any outstanding amounts to the council, water company and emergency services.

• Any other tax or legal areas that need to be dealt with.

Inspections Your conveyancer can also arrange building, pest and strata inspections on your behalf. A building inspection will ascertain the condition of the building and any potential problems. A pest inspection ideally looks for the evidence of termite activity, and any other relevant pest invasions. A strata inspection is necessary when purchasing an apartment or townhouse that’s managed by a body corporate. The strata inspection will make you aware of financial obligations towards common areas and will also provide information on the property’s history.

Making an offer

How the property you want to purchase is being sold will determine how you go about making an offer.

Private Treaty

If you’re serious about purchasing the property, you’ll already have an idea of a realistic, current market value-based offer. Offers are made through the vendor’s real estate agent, who then takes your offer to the vendor. The agent will usually work through a negotiation process until an agreed price has been reached between you and the vendor. A contract of sale is signed by both parties, referred to as exchanging contracts, and you will then be required to pay a 10 percent deposit. The deposit is held in an interest bearing account until settlement— with any accumulated interest being divided between you and the vendor.

Private treaty sales include a small cooling off period which allows the purchaser to withdraw from the contract if necessary, with the deposit refunded. Once the cooling off period has passed, your solicitor, conveyancer or settlement agent proceeds with the settlement process. This involves organising the final payment, exchanging the title and transfer documents and handing over the keys. Once this process is complete, the property is legally yours.

Auction

The process of making an offer when a property is selling by auction is slightly different. Many properties going to auction do sell prior to auction date, so if you’re serious about purchasing the property, it can be a good idea to make an offer through the real estate agent beforehand.

If you’re planning to bid at the auction, you must provide identification and register with the real estate agent. You’ll then be issued with a bidder’s number. You can attend the auction and bid yourself, or you can have someone bid for you, as long as they can supply your written approval on the day. Often potential purchasers not attending auctions will bid over the phone through a representative at the auction.

After welcoming the crowd and summarising the property’s features, the auctioneer will inform bidders of the increments to bid in, and then asks for an opening bid. It’s common for the opening bid to come from the vendor. You can bid verbally or non-verbally at any time, but you must display your bidding

number each time.

As the vendor has already set an undisclosed reserve price before the auction, if the price is not reached, the property will be passed in, which means it has not been sold. A private negotiation process can begin with the highest bidder having the first opportunity to negotiate a purchase price through the real estate agent.

If during the auction the reserve price is reached, or surpassed, the highest bidder automatically secures the purchase of the property. The successful bidder is then required to pay a 10 percent deposit, on the day, in the form of payment stated by the real estate agent prior to auction. It’s recommended that you insure the property at this point. There’s no cooling off period with auction sales. That means if you renege on the contract of sale, you’ll lose your deposit and may be sued for breach of contract and will be liable for associated costs.

As with sales by private treaty, your solicitor, conveyancer or settlement agent will then take care of the conveyancing and settlement process until the property is legally handed over to you.

Buying a home can be a complicated process full of rules and regulations the average home buyer isn’t familiar with. We’ll do all the hard work for you, leaving you time to focus on making the purchase of your home one of life’s great experiences. Call a local Elders Real Estate specialist in your area today to find out how we can help you buy the home of your dreams.

For more information about Elders Real Estate, visit: eldersrealestate.com.au

We have developed a checklist to assist you with preparing your home for sale. Please use the following codes:

FOOTPATH

Weed/mow nature strip

GATE

Hinges work

Paint quality

Catches work

LETTERBOX

Paint

Straighten

Numerals

FRONT FENCE

Cracks/structural

Paint

Remove

DRIVEWAY

Remove oil stains

Fix cracks

New gravel

Weed

FRONT GARDEN

Mow lawn

Edge flower beds

Wood chip cover ups

Colour/add flowers

Overhanging trees

Remove pet evidence

FRONT VERANDAH

Replace cracked tiles

Paint

Clean windows

Repair flyscreens

Tubs and flowers

ROOF

Cracked/missing tiles

Paint

Straighten TV aerial

Smoking chimneys

GUTTERING

Attached

Paint

Paint facia boards

Clear out gutters

GARAGE

Door opens easily

Paint

Tidy & clear

Lights work

Oil stains

FRONT DOOR

Painted

New door mat

Screen door condition

HALLWAY

100W globes

Paint

Clean carpet

Floor polish

Carpet runner

Smell

Fresh flowers

Table for flowers/ brochures

Pictures on walls

LOUNGE

Music-leave player

Coffee table-books/mags

100W globes

Lampshades

Smell

Fresh flowers

Clean carpet

Pictures

Fireplace lit

Clean windows

Repair screens

Repair blinds

Clean curtains

A well presented home will not only stand out from the crowd and encourage more inspections, it can ensure a higher sale price.

DINING ROOM

Set dining table

Fresh flowers

100W globes

Lampshades

Paint

Clean carpet

Pictures

Clean curtains

Clean windows

Repair screens

Repair blinds

BEDROOMS

Beds made

Remove posters/stickers

Remove junk (top of robes)

Blue tack on walls

Clean windows

100W globes

Clean curtains

Clean carpets

Lampshades

Paint

AIR CONDITIONING

Clean air filter

No rust

BATHROOM & ENSUITE

Clean exhaust fan

Shower screen

Fresh towels

Fresh soap

Paint

Smell

Clean windows

Remove mould

Fresh flowers

KITCHEN

Clear bench tops

Leaky/dripping taps

Broken knobs/tiles

Brew coffee (smell)

Tidy cupboards/shelves

Clean exhaust fan

Wash/paint walls

100W globes

Clean windows

LAUNDRY

Tiles broken/chipped

Remove mould

Paint

Leaky/dripping taps

Clean windows

Repair screens

POOL

Fenced

Clean

Clean filter

BACK GARDEN

Pets out

Clothes hoist

No washing

Privacy screen

Level paving

Fence structure

Fence paint

Mow lawns

Bark/woodchips cover-up

Renting your home

Traditionally, many Australians opt to rent their homes. In fact, over two million households across the country live in rental properties. For some, renting a home can be the launch pad to independence. For others, it’s the first step onto the property ladder. For many people though, it’s the preferred option for a flexible, short-term living arrangement, or the ideal solution to free-up funds for other financial commitments. Whatever the reason, millions of Australians continue to rent the homes they live in. By following our handy guide, we can help you avoid any pitfalls along the way so you can get the very most out of your rental experience.

Finding your rental

Throughout most parts of Australia, rental properties are in high demand. That means you’ll have to thoroughly research the rental market to find the property you’re after. And once you have, you must be prepared to act quickly. Regularly scour real estate websites, newspapers and visit real estate offices to find out what rental properties are available. Elders Real Estate has an extensive rental port folio, and with our Australia-wide network, we are fully equipped to help you find a house, townhouse or apartment that’s right for you, anywhere in Australia.

Once you’ve decided where you want to live, what you need from your home and how much you can afford, an Elders Real Estate specialist can help you every step of the way to securing your rental home.

Location Finding the right area to live is much the same as if you were looking to buy. You’ll need to consider what type of surrounds will make you happy—do you want to live close to the coast, in a rural setting surrounded by nature, or in the heart of the city? Ask yourself how close you care to be from shops and services, public transport conveniences, local schools and parks and your workplace. Once you’ve narrowed down your options, visit the area at several times during the day to see if you can pick up on any traffic problems, noise disturbances or anything else that might concern you. Talk to some locals and ask what they like about living in the area.

Home Make a wish list of all the things you need from a home. How many bedrooms and bathrooms will you need? Do you need a secure shed/garage? Is there enough off-street parking? Is the

yard fenced? Can you have pets? Does the house have adequate heating and cooling? Remember, landlords will make repairs to maintain the condition of the house, but it’s highly unlikely they’ll renovate to suit your requirements—so be sure about what you need upfront.

Finances Before entering into a legal rental agreement, you should spend some time working out a realistic budget. Not only will you need to pay your rent, you’ll want to put aside money for long-term savings, while also factoring in smaller on-going expenses, such as electricity, gas, insurance, groceries, car and travel expenses and other general living expenses. Never sign a rental agreement until you’ve fully considered how much you can actually afford.

After you’ve found the home you want to rent and have been for an inspection, you’ll need to submit a tenancy application form to the real estate agent. The form asks for information about all people who’ll be living in the home, evidence of your past rental history, your past and current employment and proof of income. If you’ve rented or owned a property before, it’s helpful to have suitable references to support your application. You’ll also be expected to pay a holding deposit with your application. As interest in rental homes is highly competitive, if the property is right for you, it’s a good idea to get in quickly and submit your application form and your holding deposit on the day of inspection. If your application is unsuccessful, your deposit will always be fully refunded.

Your rental application

If your application is successful and you’ve decided to go ahead, our Elders Real Estate specialist will ask you to sign a tenancy or lease agreement and pay a bond.

Tenancy agreement, bond & property condition report

Tenancy Agreement

A residential tenancy agreement, or lease, is a legally binding contract between a landlord and a tenant. Most tenancy agreements are for a fixed term of either six months or a year, although this can be negotiable in some instances. By law, the contract should include information outlining the rights and duties of the landlord, tenant and the agent; the dates the agreement starts and ends; the rental amount and how and when it will be paid; extra costs, such as excess water use; and any other special terms. If you’re unsure of anything in the agreement, our fully trained real estate specialists will help guide you through this process, and we’ll make sure you have a complete understanding of your rental rights and obligations.

Bond

A rental bond covers the landlord if the residential tenancy agreement has been breached in some way. The bond cannot be more than one calendar month’s rent and cannot be increased during your tenancy. The bond is paid before occupancy and is held by the independent Residential Tenancies Bond Authority (RTBA) until your lease expires. If there has been no breach of the agreement, your bond will be fully refunded.

Property Condition Report

Once you’ve signed a tenancy agreement and paid the bond, our Elders Real Estate specialist will prepare a property condition report, noting the general condition of the property before you move in. The report gives you the opportunity to identify, report or dispute any existing damage to the property within three days of moving in, to help avoid any disputes once your lease is over.

tenancy

Home maintenance and inspections

Maintenance From time to time your rental home will need some maintenance. If you contact us, we’ll make it a priority to have the situation assessed and the problem fixed quickly, so you can get on with living in the comfort of your home. If you plan to fix the problem yourself, always contact us first so we can obtain appropriate approval from the landlord.

Inspections Our Elders Real Estate specialist will conduct periodic inspections on the home to touch base and make sure everything’s going along smoothly. As we highly respect our tenants’ privacy, we’ll always contact you well in advance of the inspection.

Your Investment Loan

• Thoroughly read your tenancy agreement, and always ask an Elders Real Estate specialist about anything you don’t fully understand before you sign.

• Always keep copies of agreements, reports, correspondence and ALL payment receipts.

• Arrange to have utilities connected and billed to your name.

• Get written permission if you plan to sub-let or assign the tenancy agreement to someone else.

• Put all request to the real estate agent/landlord in writing.

• Make sure you pay your rent on time and keep your property clean and tidy to a reasonable standard.

• Ask for permission to install fixtures or when performing any maintenance or alterations to the property.

• Conform to the laws and obligations in your local council area.

For some people, finding the right rental home can be a frustrating experience. Call a local Elders Real Estate specialist in your area today to find out how we can help you with your home rental solution.

For more information about Elders Real Estate, visit: eldersrealestate.com.au

Your guide to investing

Purchasing property is recognised as one of the most sound investment decisions you can make. Whether you invest in residential, holiday rental, commercial or industrial properties, the return on investment can be quite appealing when it comes to potential capital growth, a regular income and valuable tax benefits.

Many people turn towards residential properties when adding to their investment portfolios but are often unsure how to proceed. This useful guide will help you understand the criteria of a good investment property, and what steps you’ll need to take to get started.

Work out your investment strategy

Many people like to start an investment port folio, or balance an existing one, with the safety of a residential, commercial, industrial, or holiday rental property. But before you can start looking for a property to buy, you’ll need to work out exactly what you want to gain from your investment. This will form the basis of your investment strategy. Decide if you’re after a quick capital gain; a steady, regular rental income; or a calculated tax break. Once you’ve worked out what you want from your investment, you’ll be able to identify the best property type for you.

What’s the cost

The cost of an investment property involves more than just the property’s purchase price. There are always ongoing costs that you’ll need to factor in when deciding if the potential profit outweighs any risks and costs along the way. These include stamp duty, inspection fees and conveyancing costs, mortgage repayments and loan fees, insurance costs, property repairs and maintenance, council and water rates, government charges, strata fees, management costs and any unexpected vacant periods.

Research the market and choose the location

The next thing you’ll need to do is research the property market to know what areas have provided good capital growth and where the most secure rental incomes are coming from. You’ll want to know more about current and projected population growth and any future developments in various areas. By visiting one of our 400 offices across Australia, an Elders Real Estate specialist can help you identify the locations that best fit your criteria.

The right property

After you’ve worked out your investment strategy and chosen your ideal location, you need to have an idea what type of tenant you’d like to attract. Bear in mind, you’ll want a regular rental income with as few vacancies as possible. Do you plan on targeting families, university students, professional couples or holiday makers? At this point, you’ll need to start thinking from a specific tenant’s perspective and consider what features will attract them. Many features will appeal to all groups, such as good home security, off-street parking and good proximity to shops. However, families are more likely to be looking for space, multiple bedrooms, being close to schools and parks and having a big back yard and secure boundary fencing. In contrast, a professional couple might be more

interested in apartments and townhouses in fashionable suburbs, modern household features and being close to good cafes and restaurants. Knowing who you prefer to attract will help you decide what type of investment property to purchase. It’s also a good idea to look at the property’s history. If it’s been rented before, check out the tenant record to see if there are any rentals concerns or unexplained vacant periods.

Your investment loan

As with traditional home loans, there are many investment loans available to suit specific needs. The two most common loans taken out by Australian home buyers are variable rate loans and fixed rate loans. However, interest only and line of credit loans prove to be the most popular choices for investment properties. The type of loan you choose will be based on your financial situation and your investment goals. Your accountant or financial advisor will help you work out the benefits of investing for capital growth, negative gearing, tax deductions or a steady retirement income, and they’ll direct you to a loan that suits your needs.

Capital Growth You will not be affected by the capital growth of your investment until you sell your property. If the sale price is greater than the purchase price, it’ll be subject to capital gains tax (CGT) and could affect your income tax considerably.

Negative Gearing Negative gearing occurs when the annual income you receive from your investment property (rent), does not exceed the annual costs of your interest repayments and maintenance costs. You’re then able to deduct your property costs from your gross income, reducing your annual income tax.

Tax Deductions While your investment property is being rented, you’re able to deduct property expenses from your gross income. These costs can include repairs and maintenance, council rates and government charges, advertising costs, agent management fees and interest repayments and loan fees.

Purchasing your property

Once you’ve worked out your investment strategy, chosen the investment property that has rental appeal and worked out your finances, you’ll be ready to make an offer. How your property is being sold— whether by private treaty or public auction—will determine how you go about making an offer. Please refer to the ‘Buying Your Dream Home’ section in this guide to find out more about the steps involved in purchasing your new property.

Property management

Good property management could be the difference between a good investment and a bad one. Using an experienced property management service will keep your investment profitable while allowing you more time to focus on the important things in life. At Elders, we’ll shop for the best possible tenant for your investment property, manage rental payments, reports and reviews, conduct comprehensive inspections and organise property repairs and maintenance through licensed and insured tradespeople. We’ll provide annual detailed financial statements for you and your accountant showing exactly how your investment is working for you in the current market. Whatever property management involves, we do it.

No matter what type of investment property you’re after, Elders Real Estate can help you get the very best return on your investment. Leading in real estate for over 170 years, our experienced specialists can help you from the purchase stage right through to your property’s day-to-day management. And since we already manage over 60,000 properties Australia-wide, we know exactly how to maximise income for our investors. Call a local Elders Real Estate specialist in your area today to see how we can help turn your investment dream into your investment reality.

For more information about Elders Real Estate visit eldersrealestate.com.au