firstnational
on the homefront October 2010
Renovations that add the most value to your home prior to a sale If you're considering shifting to a new home in the near future, it’s possible a renovation could help you attract more buyer interest and ultimately a faster selling price for an existing house or unit. So, if you feel your home is looking tired and in need of a facelift, the chances are buyers will too. But before taking a hammer to a wall or firing up the circular saw, it is worth considering the renovations that will deliver the best bang for your buck. Some experts suggest a kitchen or bathroom renovation add the greatest value to a property, while an entertaining deck and open-plan living spaces are also big winners when it comes to attracting the interest of potential buyers. However renovating a kitchen or bathroom doesn’t come cheap. Property website realestate.com.au estimates that a kitchen renovation can cost anywhere from a few thousand dollars, right up to $30,000 plus. No matter the size of the
job, a brand new kitchen usually requires re-tiling, new cabinetry, and replacement sinks and tap ware, for starters. If money is tight, a kitchen renovation might be out of the question. But don’t despair! There are other steps that can spruce up a home, such as removing the ageing Axminster carpet or the florid wallpaper. New door handles and ceiling lights can also help achieve a more contemporary look, while a lick of paint never goes astray. If the removal of the shagpile leaves behind floorboards, this is a bonus – if not, a floating wood floor, which starts around $20 per square metre, is a popular way to modernise an older home. Brave souls might even try installing the floating floor to save on professional labour costs. Street appeal is also important, because first impressions count. Indeed, many buyers make up their mind about a
property the first time they see it. So, if the budget allows it, improving a home’s exterior is a worthwhile step. Prospective buyers will look for a healthy lawn, attractive landscaping, trimmed trees and freshly painted walls and gutters. No matter what the size of your renovation budget, there are always ways to freshen your home for sale. If you are uncertain about the best options, speak to us today.
Burnie 111 - 113 Wilson Street, Burnie TAS 7320 Phone 03 6431 4544
ON THE HOMEFRONT | October 2010
e cost of making your home more secure Owning a home isn’t all beer and skittles with mortgage repayments, home repairs, council rates and other charges a regular drain on finances. Then there is the issue of security. Queensland Police report that residential burglary is the most frequently reported crime, with amateur crooks seizing easy opportunities, such as an open door or window, to commit a break and enter.
Fixed or variable rate home loans – the pros and cons There is little doubt a mortgage is a major financial commitment and a significant part of home ownership. At the same time, it’s important to understand there are broadly two categories of mortgages – fixed and variable rate home loans – and choosing the right option can save you money long term. A fixed rate mortgage offers set loan repayments irrespective of interest rate fluctuations, which is comforting with many pundits tipping a pre-Christmas interest rate rise. Fixed rate loans are for a set term, usually between six months and 10 years – with the majority one, three or five years. However while fixed rate loans can provide security, they’re not exactly flexible. For example, many won’t allow you to make additional repayments which can be useful in shaving years off the term of the loan and interest repayments. Variable rate home loans, on the other hand, are the most popular type of mortgages in Australia. This is because they are considered more flexible, and may include features such as the ability to make extra repayments and/or allow homeowners to redraw funds for emergencies. The downside of a variable loan is that, generally speaking, they are linked to official interest rates. So, when the Reserve Bank increases interest rates, your lender will usually follow suit – and in some cases will increase rates over and above the RBA’s increase.
Beware of underinsurance! But it’s possible to minimise the security concerns and keep the bad guys at bay by investing in a security door. Hinged security doors starts from $390 for a diamond grille, and $490 for a cast aluminium door. A triple lock, which provides two additional locks, will set you back just $90 more. But before you hand over the cash, check the door meets Australian Standard AS 5039-2003, otherwise all you’ll be keeping out are the flies. Standards Australia can provide copies of the standard for $130 - which might be one of the best investments you ever make. Also consider exterior sensor lights, which react to movement around the perimeter of your property and are available from Bunnings for around $20 each (plus electrician’s fee). It’s a pretty minimal charge to help secure your home against prospective burglars.
Underinsurance is a trap that many homeowners fall into, and it occurs when the level of cover doesn’t insure the full cost of potential losses or damage to a home, or the impact on the people living under its roof. The consequences of underinsurance were most graphically displayed in the fall out from the 2003 Canberra bushfires, which destroyed 488 homes. In response to the disaster, the Australian Investments and Securities Commission (ASIC) produced a report titled ‘Getting home insurance right’ (released in 2005), which showed that between 27% and 40% of those Canberra homeowners affected by the fires were underinsured. As a result, some homeowners were forced to borrow more money to cover rebuilding costs.
Win $25,000 of home furnishings with First National Throughout October, First National Burnie is offering the chance for one lucky individual or family to update their home with $25,000 worth of brand new furniture and energy efficient appliances. First National Real Estate adopted an energy efficiency stance in 2009, issuing its national network of offices with an Energy Efficiency Kit to assist its agents to reduce energy consumption in their offices and their customers’ homes. To enter the competition, visit burniefirstnational.com.au and follow the links to the Super Massive $25,000 Giveaway. Just answer a couple of simple questions and submit your entry form to be in the running for the $25,000 voucher.
However, they could have averted disaster with a few simple steps, including a room-by-room inventory of belongings. This enables homeowners to calculate the costs of brand new replacements. Once armed with this information, contact your insurer to confirm you have the right level of cover based on the replacement cost of all your belongings. It might mean a higher premium, but it’s better than being caught short. Follow us on
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