Posts in category: Business

If you’re planning to put your property on the market, the importance of presentation cannot be overemphasised — and never more so than in the garden. 

An appealing outdoor zone and landscaped gardens can hugely increase the value of a home, which is why prospective sellers should start putting their green thumbs to good use now. 

This is why:

A tidy sum

An independent real estate agent survey estimated that more than 40 per cent of estate agents believe manicured lawns alone can boost your home’s value by up to 20 per cent.

Almost 90 per cent of potential buyers say a nicely presented lawn improves the look and feel of a property; 45 per cent confirm it adds lifestyle and relaxation appeal; and a safe playing area for the kids also rates strongly, at 42 per cent.     

Keeping up appearances

Rather than leaving it to the last minute, sellers can start tidying up their yard. 

This not only avoids an unnecessary bill for the maintenance man, but it also delivers a great deal of personal satisfaction in knowing you have made your mark in creating a better living environment. 

The cleaning and tidying process can be carried out over several weeks, removing the mess, stress, weeds and danger of physically overdoing the outdoor chores. 

Even if a major job must be undertaken, there is still plenty of time to organise family and friends to lend a hand in a working bee, and then kick up your heels and celebrate afterwards – social restrictions notwithstanding. 

Group effort gains maximum benefits

Better still, encourage your neighbours to do likewise and offer to help them in their endeavours. 

It’s obvious that all parties will benefit from any short-term arrangement. 

Come auction day, it will be easy to see why the natural beauty of your clutter-free garden has never looked so appealing. 

Outdoor rooms with a lifestyle view

The desire for outdoor/indoor living means most buyers view the garden as an extra room. 

If budget permits, the addition of an outdoor kitchen, gas-plumbed barbecue and entertainment zone can raise property values beyond expectations, especially if weatherproofed.

Visit gardening and hardware stores, view lifestyle publications and websites, and always shop around for ideas that match your budget. 

Your local real estate agent can also assist with indoor/outdoor tips — and advice on how to present your property for sale in the best possible light.

Homes built for the future encompass increasingly popular passive design principles. From green ratings and solar energy to orientation, insulation and glazing, constructing a certified passive-design property is not only an exercise in cost-cutting and energy efficiency, but it can also add resale value. 

Passive principles

Buildings built in accordance with the Passive House (Passivhaus, a concept developed for Germany’s cold climates to ensure the highest level of thermal comfort with minimal energy input) standard are said to be the most energy-efficient buildings worldwide — known to reduce energy consumption by up to 90 per cent.

Green Star ratings

A Green Star is the trusted mark of quality for the design, construction and operation of sustainable buildings. But what are its benefits?

Improved ventilation, including other indoor environmental standards, and low-toxic materials are the health-giving qualities. 

Green Star-certified buildings use 66 per cent less electricity and produce 62 per cent fewer greenhouse gas emissions than the average building. They also use 51 per cent less potable water than average buildings and recycle 96 per cent of their waste (compared with 58 per cent for the average new construction project). 

Passive design homes are well insulated, airtight and largely reliant on passive solar heating and cooling to minimise energy use. 

Orientation, spatial zoning, thermal mass, ventilation, insulation, shading and glazing are the seven core components of passive homes, creating a holistic approach to building design that results in improved energy performance. 

If not new, then improved

Although passive designs are most often applied to newly constructed buildings, passive design can also be used to refurbish existing buildings. To date, retrofitting passive house design features to older buildings has been successful in countries such as Austria, Germany and Switzerland, where cold winters denote the need for increased warmth and energy efficiency.

If building from the ground up isn’t possible, installing shades, movable shutters, glazed windows, better ventilation systems, insulation, north-facing windows and similar features can help enhance the building’s energy efficiency.

A brighter future 

A passively designed home could well be your gateway to achieving a cost-effective and comfortable lifestyle that benefits both the environment and property values.

Reverse mortgages are an increasingly popular way to boost the bank balance for those approaching their twilight years.

Aimed primarily at cash-strapped seniors who own their home – or a substantial portion of it – a reverse mortgage operates as it sounds.

The opposite of a standard loan and principal loan, a reverse mortgage allows property owners to borrow against the equity in their home for a more comfortable lifestyle.

Enabling people to live debt-free until the end of their lives, the equity release model is championed by the Retirement Income Review Report, commissioned by the Federal Government and tabled in November 2020.  

This recognised that most Australians have the majority of their assets tied up in the family home.

How it works

Borrowers are not required to make repayments or repay the loan in return for an agreed share of the future sale proceeds of their home. 

But they can still opt to repay the loan – even if it’s the interest component only – as they may have done in the past.

The amount borrowed will vary according to the lenders’ requirements and the individual property value.

An applicant’s age can also be integral when calculating the loan-to-value ratio (LVR) permitted in a reverse mortgage scenario.    

Together with a lump-sum payment or series of regular instalments, homeowners remain the legal owners on the title and retain the right to live in the home or rent or sell whenever they decide. 

The funds provided from a reverse mortgage are typically used to cover expenses later in life, such as medical or aged-care requirements, to top up the retirement fund, or simply to leave something for their children and grandchildren. 

Fortunately, reverse mortgages are governed by the National Consumer Credit Protection Act to avoid borrowers owing the lender more than the value of the home.

Seek advice before signing

The financial flexibility that a reverse mortgage provides can be overwhelmingly positive, but it’s equally important to be wary of the downsides.

The interest rates charged are usually higher than a standard variable loan and some include ongoing fees that attract compound interest for the entirety of the loan. These may include establishment fees, monthly or annual fees and discharge fees.

In effect, the cumulative total of the fees increases the amount owing as your home equity decreases. 

But to offset this, any appreciation in property values belongs to the borrower. 

In some cases, heirs cannot inherit the property until the reverse mortgage is settled.

Drawing a lump sum can also affect eligibility for an aged pension, so it pays to read the small print in the terms and conditions, and always seek advice from your licensed financial advisor, before signing on the dotted line.

The extended lockdown periods of COVID restrict many employees to their inner sanctums: i.e. the home base.

This comes as a welcome relief to some, who relish the avoidance of a crowded commute or being confined to an uninspiring office environment.

But for those who prefer to work from a structured place of employment, the work-from-home concept can have its distractions and pressures.

A practical but inspirational home workspace – one that enables you to be both productive and creative – is the solution. 

Be inspired to create an office that will help you slip out of domestic life and into the creative zone without even leaving the building.

Introduce plants to help ideas thrive

Our best ideas often come when we’re away from our desks and outside enjoying nature. So why not harness this phenomenon by bringing some of the beauty of nature into your workspace? 

Houseplants not only brighten up a room but also provide oxygen for increased brainpower. 

If you’re not a natural botanist, fear not. You don’t have to take on anything too large or intimidating. A coterie of cacti will thrive quite happily with minimal attention.

Choose a room with a view

A spectacular vista is an inspiration in itself. Nothing motivates productivity like a dramatic view.

In the absence of huge windows framing natural beauty, a snug position from which to observe life and indulge in a blue-sky outlook more than suffices.

A pretty backyard garden can be just as pleasant to look at, or even some flower-filled window boxes.

Employ excellent storage

Filing and organising your work is important, but it doesn’t need to be done in the traditional way. If you have the wall space, install a set of bespoke shelves with exposed spaces to sequester different projects. 

Storage pieces built from natural materials and hues also add shine. The result will be more visually appealing than a filing cabinet and yet remain easily accessible.

Map out open-plan zones

You may need your room to fulfil a number of different functions, such as an admin centre, meeting hub and brainstorming station. Consider all of these needs in your design so that you can incorporate clear zones in your space. 

The simple act of moving from work desk to meeting table – even if you only have room for a compact space to reconvene – will help shift the mood from functional to collaborative. 

Steer clear of strictly office furniture

Don’t be restricted by traditional office furniture. An ergo-dynamic chair, spacious desk, appropriate lighting and organic wood office accessories fit into your utilitarian work mode, but also enhance your home environment.  

Remind yourself of your mission

Surround yourself with some visual props – be it an inspirational quote, object imbued with meaning or a painting – for those days when you might be tempted to forget what it is you actually go to work for. 

Look away from the wall

A desk that faces into the room rather than staring at a blank wall provides a fresh perspective when you’re searching for inspiration.

Most desks are set against a wall to maximise space (and potentially conceal wiring). However, if you can find a way to rearrange these elements, switching around your aspect allows you to enjoy the benefits of broadening your horizon.

Illuminate your work areas

Keep your focus tight and on point with well-planned lighting. Pools of light from different fittings can make for an energised space — with an emphasis on clarity. A mixture of standard lamps, desk lamps and ceiling lights will work wonders for your creativity and productivity levels.

Damage to your property caused by flash flooding and rain-related issues is a mood dampener, whether you own, rent or invest.

Depending on your state and regional location, the rainy season can have a significant effect on many properties throughout the year. 

Whatever the weather, insurance companies and real estate agents strongly advise thorough preparation for all the elements. 

Property owners should be aware and prepared for problem areas that are damage-prone. 

Model renters can also assist with simple maintenance chores. This ensures increased comfort levels, stress and enhances the traditional rental property arrangements. 

It never rains, but it pours

Be guided by predicted weather patterns in your zone or region.

In the northeast of Australia, the tropical rainy season runs from November to April. The wettest months are typically March and April and it’s not uncommon to receive rainfall of 300mm in a single day.

In New Zealand, the wettest period is May to August (with average rainfall predictions of 11 to 13 days per month). However, even in summer, it rains for seven to eight days per month, except in February. 

The experts suggest you start your preparation plan at least four months before the relevant rainy seasons.

Following these helpful hints ensures you will stand your property in good stead.     

Top tips for averting rainfall damage

• Clean out your gutters and downpipes. If you are unsure how to do so properly, or unable, schedule an appointment to have it done. This will ensure that downpipe water is routed to where it’s intended. 
• While you or a professional are conducting roof cleaning areas, you are also advised to check any skylights to address potential leaks. Sealants and repairs to minor damage will assist in stemming worsening leaks or flooding. 
• Inspect weatherstripping on your doors and windows. Leaking water can lead to mould, wood rot and untold expense. 
• At ground level, clear debris from your street grates so that water flows away from your property and into stormwater drains. 
• Protect your outdoor furniture, barbecues, tools, firewood and all items that are permanently stored outside. Your teak or jarrah table may need to be resealed. You would also be wise to invest in a waterproof barbecue cover and storage bench for stowing outdoor cushions away from the rain. A weighted-down tarpaulin usually works well for keeping firewood dry. 
• Prepare for flooding in the most vulnerable areas of your home. For example, if your garage or basement has flooded in the past, make sure you remove any valuable items and store others off the floor. This can be achieved by installing shelving or creating raised platforms. 
• Check your insurance coverage. It’s important for your investment purposes and peace of mind to know exactly what’s covered, in any event. 

Rich, fertile and attractive land is a desirable commodity in Australia and New Zealand. 

Regulators and developers in both countries have seen the light with the formation of the Australia-New Zealand Partnership for Development Co-operation in the Pacific. 

The partnership seeks to address economic, social and sustainable measures to address regional housing and build a secure, equitable and prosperous Pacific region. 

The main objectives

As outlined in the partnership agreement, Australia and New Zealand have complementary approaches to development in the Pacific, with a focus on results, mutual accountability and the alignment of development resources with individual country priorities.

Australia and New Zealand will use this partnership to deepen its development cooperation, enabling the organisation to assist Pacific island countries to achieve broad-based economic growth and create and maintain sustainable livelihoods.

In short supply?

Reported land shortages pose the greatest challenge in maintaining these development goals.

As is widely known and expressed in a federal government report, there is a broad consensus that more new dwellings need to be built to improve housing affordability in Australia. There is some conjecture, however, as to whether limited or artificially constrained land supply has been the main driver of higher house prices, and whether the main solution is to release more land.

Australia’s capitals — with the exception of Canberra — all have the geographic constraint of coastline; many are also restricted by mountains, river systems and national parks. 

There are significant greenfield options on the fringes of the capitals, which state and local governments could access. Is the solution to housing affordability simply to build more houses in these areas? Building smartly and sustainably appears to hold the key.

From an industrial perspective, recent reports in New Zealand highlight a need for suitably zoned land. 

In Auckland, the country’s largest city, this shortage has been exacerbated by the reluctance of the Auckland Regional Council to extend the Metropolitan Urban Limit (MUL) to open up new greenfield areas for business and industrial development, particularly in the South Auckland. 

An imbalance between supply and demand is also pushing land prices beyond the means of many developers. 

The solution

Regional growth corridors are experiencing record housing sales, despite dwindling land stock — calling for a long-term liveability, affordability, lifestyle and supply outlook.

Experts suggest that these land and housing issues can only be solved by focusing on building smaller homes; prioritising affordability rather than luxury developments; addressing social housing and rent control; and limiting land speculation.

Crucially, others suggest the need for grassroots involvement. This includes governments buying land and real estate to ensure that adequate regulation and development processes are maintained, and higher taxes should be imposed on returns from real estate investment to level the playing field.  

Time-poor investors still seek to be information-rich, especially when it comes to their property portfolio.

In the increasingly competitive real estate market, many canny buyers are looking to gain an advantage by working smart, not hard. 

Instead of attending the weekly inspections and witnessing the cut and thrust of auctions, they are turning to buyer’s advocates or buyer’s agents, also known as professional house hunters, to seal their deals.

Their function

Evolving from the deregulation of estate agency services, buyer’s advocates and, to a lesser degree, vendor’s advocates are proving increasingly popular as a cost-efficient method of speeding up the buying-and-selling process. They also provide keen professional insights and can gain early access to potential purchase opportunities.

How they operate

Buyers simply nominate a suburb or area, budget and any particulars (brick, Victorian, three bedrooms, etc.) about the property they wish to buy. 

They negotiate a fee, which may be a percentage success fee (such as two per cent of the sale price), a fee for service, or a combination of both. And the advocate is left to do the rest.

The advantage is that advocates are not emotionally involved in any property and can act in an impartial capacity, which takes the pressure off when bidding at an auction or negotiating on price.

Benefits of using buyer’s agents

They can provide significant financial benefits in the purchase or lease of properties, can eliminate time-wasting, and can provide professional advice and a choice of properties that match the purchaser’s needs.

Their modus operandi is to counteract the very system that they employed previously when they worked as real estate agents. 

In effect, they use the agent’s training against them for the benefit of the buyer.

When time is not on your side, buyer’s advocates can be a vital component to keep control in the buyer’s favour.

Where to find a buyer’s advocate

It’s important to look for a buyer’s agent or advocate who is a certified buyer’s agent or accredited buyer representative. ABR agents hold qualifications that have met certain criteria and passed an exam administered by the Real Estate Buyer’s Agent Council. There are national associations for exclusive buyer’s agents in Australia and New Zealand, which provide local contacts.  

What to ask

You should first inquire about their experience as a buyer’s agent and seek referrals to previous clients. Do they own property? How many successful purchases have they made as a buyer’s agent and, importantly, what value has their advocacy given to the investor? 

Finding out if they are a dual buyer’s agent and real estate agent will eliminate potential conflict of interest.

When inquiring about their fee structure, it’s also mandatory to discover if they hold professional indemnity cover. 

This is a legal requirement designed to safeguard the investor in the event of wrongdoing, whether inadvertent or otherwise. Read all contracts carefully before committing.

It’s a fact of life that indoor air pollutants, such as dust, pet hair and mould, can create havoc with wellbeing.

And that’s without factoring in the influence of household chemicals when skin irritations, hypersensitivity and neurotoxic symptoms begin to surface.

The CSIRO estimates that poor air quality inside our homes is a costly burden (as much as $12 billion annually) on family health and livelihood, the economy and the environment. 

But there are many ways you can protect yourself and your family, especially when we tend to spend so much time indoors. 

Keeping your home clean helps to reduce the accumulation of dust, mould, hair/animal dander and other irritants. Ensuring that you vacuum regularly, including curtains, wash bed linen and drapes frequently, and declutter weekly is essential.    

To control sources of indoor pollution, experts such as Vornado Australia recommend:

Reduce toxins and irritants released into the air

The first step is to reduce or eliminate the use of cleaners and solvents indoors, and replacing them with natural alternatives. Also, ensure your heaters and stoves are serviced regularly to reduce their emissions.

Ventilate your home properly to move fresh air

Inadequate ventilation — meaning little air is circulated — is the largest contributing factor to indoor air pollution. 

In basic terms, this means smoke, dust, heat, metals, humidity and carbon dioxide builds up in tightly sealed spaces.

Where possible, create cross-ventilation by opening windows at either end of your home.

Coupled with using effective exhaust fans in kitchens and bathrooms, also consider deploying an air circulator and air purifier to eliminate allergens and pollutants from the air.

It’s important to change air filters in forced-air heating systems to remove dust and other airborne irritants. You should also have the ducts cleaned regularly to help maintain a fresh air flow.

Maintain a healthy level of humidity

Moisture problems can lead to indoor mould growth, which is a common problem in new homes.

Dust mites and mould thrive on moisture. 

Indoors, a humidity level of between 30 per cent and 50 per cent is ideal to keep mites, mould and allergens under control. 

Using a dehumidifier in damp areas to offset mould also helps to maintain the healthiest air quality in your home.

So you’ve finally found the perfect property. Everyone agrees; even the dog likes it!

If you’ve done your homework, all you need to do now is finalise the details, because otherwise, your dream home may turn out to be for someone else.

Before getting too entrenched in the house hunt, it pays to understand how much you can borrow and how much you’ll have to spend to buy the house. That way you won’t get caught short when you settle.

With this objective in mind, financial planners recommend that potential loan applicants need to be prepared for all potential costs. Here are some of the key things to keep in mind. 

How much can you borrow?

When a lender assesses your loan, they will look at a number of lending criteria, including: 

• Income: Is your income full time or part time? Have you earned consistent income for a consistent number of years? Do you earn dividends from shares or managed funds? Are you on a pension? 

• Commitments: Such as credit card debt, personal loans or other property loans. 

• Living expenses: Such as food, electricity, rates, etc. 

• Deposit: How much deposit do you have saved? Is the deposit from genuine savings or a gift? 

• Property price: How much you can borrow will be affected by the property’s value. 

• Credit history: Your previous credit history will be assessed by a lender and could well decide whether they lend to you.

How much will it cost?

It’s crucial that loan applicants consider the following lender fees: 

• Loan application fee or establishment fee: Charged for the work a lender does on your loan application. Depending on the amount you borrow, Savings.com.au suggests this cost can vary from $150 to $700. 

• Valuation fee: If the lender’s credit assessment includes a property valuation, there’s a charge of between $100 and $300. 

• Mortgage discharge fee: This is when the lender charges for its time to lodge the discharge of mortgage to the titles office. The cost can range from $150 to $400.

• Lenders Mortgage Insurance (LMI): When you borrow more than 75 per cent of the property value, some lenders may insure your loan against loss. It’s a one-off fee of around 0.80 to 1.80 per cent of the loan amount — and may be refundable if the loan is paid out early.

Government fees and other charges 

• Stamp duties: Stamp duty is payable on both the registration of the mortgage and the transfer of land. 

• Titles office: The relevant state titles office may charge a fee for the registration of the mortgage and the transfer of land on the certificate of title.

Other costs

• Conveyancing fees: When you buy or sell a property you normally engage a specialist to look after the transaction, this may be a solicitor or a conveyancing agent. Open Agent suggests that conveyancing fees cost between $400 and $1,400. 

• Other disbursements: Costs such as title search fees, Environmental Protection Authority reports, general adjustments and other fees may also be incurred. 

• Building insurance: Most lenders will need a certificate of currency for your building insurance.

Using a checklist is a great way to be prepared for any potential costs and bring you closer to your next property purchase. 

Selling your home or investment in spring is certain to attract keen buyer interest and vendor competition. But this ever-promising selling season also ensures your property is presented at its blooming best.

Expert opinion points to the longer, warmer days of spring not only boosting local foot traffic in the best-dressed houses for sale, but equally suggesting an increase in potential offers. 

Although serious home buyers are prepared to brave any weather, with pundits primarily favouring strong autumn sales, springtime traditionally attracts an increase in highly marketable stock. This offers widespread appeal in a stock-depleted market — for buyers and sellers.   

Short supply fuelling record price hikes

National house prices are rising at their fastest rate in more than 32 years, according to CoreLogic. Listings can’t keep up with FOMO (fear of missing out) demand and analysts predict no slowdown in the immediate future. 

It’s a seemingly fraught scenario that bodes well for vendors selling in spring. Despite the widespread affordability crisis, housing stock increases, which are anticipated for most regions and capital cities, are expected to boost buyer confidence.

Top tips for creating winning results

Vendors with deeper pockets may choose to invest in professional landscaping and refurbishment prior to open for inspections. 

However, property owners can achieve an overall impression of a streamlined interior and exterior finish — with minimum outlay and moderate effort.

• Complete all minor repair projects. Making sure that everything is fixed and in smooth working order will translate to capital results at sale time.

• Adopt a neutral tone when repainting walls, floors and ceilings, but make sure to splash out on vibrancy when it comes to creating a warm welcome at your front door.

• Contemporise fixtures and fittings, such as lighting, bathroom mirrors, taps and cabinet ware, to suit your interior style. Cosmetic makeovers are not only affordable, but also add visual appeal — given the extensive product and services range on offer from local suppliers.    

• Pay attention to detail when decluttering and spring cleaning. Less is not only more, but also creates the illusion of extra space when potential buyers come knocking.   

• If your décor is not up to standard, consider renting furniture and artwork for home staging effect with the wow factor.  

Follow the advice of your agent. They will knowledgeably guide you about the right listing price for your property and location. It is also in their best interest and yours to provide trusted tips and guidelines — plus contact points for reputable home makeover service providers — when preparing and presenting your property in sparkling form.