On a recent trip to the Chinese mainland the writer had a unique opportunity to find out what 20% of the world thinks of us.
Going to Hong Kong has, for Australians, been something akin to going to Bali; we have known them as popular places to go discount shopping but they have not seemed like parts of mainstream Asia. Bali is as different to Indonesia as Hong Kong is to China. For me the task was to find out more about mainland China.
Chinese people from Hong Kong have been a part of the life of Adelaide since ‘almost forever’ but Chinese coming from the mainland in any significant numbers have been a comparatively recent phenomena yet they and China in general are having an increasingly significant effect on us. I was keen to understand how Adelaide real estate fits into a larger world market with the goal of selling Adelaide properties in China.
WHY DO WE WANT CHINESE BUYING HERE?
Before I left in March 2015 some people asked, “Why do we want Chinese coming here to buy our homes because they will only inflate prices and push locals out of the market.” Continue reading
Many who invest in property make a conscious decision to buy an established property with a tenant in place as the easiest way to enter the market. Everything is already set up with a tenant and Property Manager humming away nicely … or so they think.
They will check out the house but not the tenancy or the Property Manager.
They will probably get a building and pest inspection done and if the reports look fine they will quickly proceed to settlement and simply take over the position of landlord from day one. The money rolls in immediately. What could be easier? Continue reading
This might sound like a backward statement but the fact is if you want to create wealth more quickly you should rent the place you live in and rent out the place you own.
But how do you do it effectively?
Because of the way negative gearing tax laws work, if you own a house and rent it to tenants then all of the expenses associated with that property become tax deductible whereas we all know that virtually nothing is tax deductible for the home you live in. Continue reading
Saul Eslake is the chief economist from Bank of America Merrill Lynch and he believes that negative gearing contributes more to a potential housing bubble than Chinese property investment. Continue reading
New home buyers struggle to afford to get into the real estate market so they either continue to live home with parents for longer or compromise on their dreams by buying inadequate cheap properties.
It’s all about having the deposit to satisfy a lenders requirements and having the income to service what can become a crippling debt. Continue reading
Buying just any property to rent out can be a hit and miss affair. You need to be well informed and have a targeted approach as to what you should buy.
You need to research all the variables thoroughly.
Most people who buy an investment property buy within 7kms of where they live. That is not a high recommendation because obviously they all can’t be right about the best place to invest. It’s not just a matter of investing in an area you are familiar with but where your dollars will get the best return.
The fact is that most people buy where they feel most comfortable or in the areas they know best but if you want to take property analysis to the next level then you need to look outside of these narrow constraints.
What should you buy?
- Established home on a large block
- Any home with a good rent return
- City apartment for international students
- Quality home within 10km of the CBD
- Outer suburb allotment with potential for future subdivision
- Inner suburb allotment with potential to knock down and rebuild?
On the face of it there is certain wisdom in selling your own property to save money on agent’s commission but there are many pitfalls that few will tell you about.
Twice now, I have sold my own home and I believe it was only a fool’s luck that got me a good result.
The first property I owned was a 2 bedroom unit in a tacky group of 6 in St Marys, South Australia that cost me $38,500. Then some years later I was getting married so I needed something bigger. I had 2 agents come to give me an appraisal but then decided it would be so easy to sell it myself. So I put it on the market for ‘Offers over $48,000’, if I remember rightly.
IF YOU ARE SELLING YOUR HOME YOU NEED IT TO STAND OUT FROM THE REST
You need creativity when listing a property for sale but don’t forget the fundamentals. Recent data reveals 86% of visitors to real estate websites will ignore properties without an address; and 91% will ignore properties without a price.
1: THE CREATIVITY
Have you ever read a property advertisement that really gets you so hooked you start working out your finances even when it’s way out of your price range?
It’s all about working a creative text that grabs the attention of your audience and highlights your property. For something to be memorable, it has to stand out from the rest.
Real estate is a very competitive industry, so the agent you choose has to differentiate themselves from its competitors or make your property stand out in some way. That initial first impression is so important. If the picture is appealing, and the headline creates intrigue, the listing is a winner.
The photo posted here shows our sales agent Vincent Woodall outside the front of 27 Erebus Circuit Morphett Vale with the vendor holding a ‘For Sale’ sign. It is so simple yet so different. When was the last time you saw a photo of a house for sale with anyone standing out the front?
But we believe this has been responsible for such a high number of hits in such a short time and accounts for getting so many people through the door and 2 written offers after the first weekend.
2: THE FUNDAMENTALS
Recent data from a www.realestate.com.au study suggests that a property listing that gets the most clicks is more about the core information it contains, like estimated price and the image. Where buyers are scrolling through properties at a quick rate you need to make the pictures of the property pop out. It doesn’t matter how great and catchy the headline is, if the image beside it looks dull and dreary, viewer attention will slide right on to the next one.
And the following statistics might be a wake up call to some:
91% of browsers will ignore listings without a price estimate. Many buyers will only search properties within a price range.
86% of online visitors will ignore a listing without an address. They want to know how close the property is to amenities, transport, family, friends and work. Many buyers will also check the address on Google Earth to assess its street appeal and the quality of the houses around it!
Enlist the aid of a sales agent who can make the difference. Ring us on (08) 8186 2777
Many of our vendors often ask “should I pay good money to furnish my house or sell it empty?”
Almost without exception the furnished home will sell before the unfurnished one.
Only a small percentage of buyers will be able to imagine what an empty home would look like if it were fully furnished. Usually the buyer will only see problems with an empty house instead of the positive images that a well-furnished home will bring.
The main bug bare for most sellers-is the expense. Continue reading
That might sound like a good idea, however what they should be doing is identifying the profile of the person who will most likely become your buyer.
There is little point repairing cracks in a brick wall when you have a 60 year old beach shack on a large esplanade block that is only going to be bought by a developer who will knock it done. That is a very obvious example but there are many lessons to be learnt from identifying the profile of your buyer and matching it to how you should market the property.
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