Oliver Howells & Co | Legal & Conveyancing

Essential EOFY Tips for Investment Property Owners

Wed, 29 May 2024 04:57:00 GMT

Can you believe the end of the financial year (EOFY) is already here? If you’re an investment property owner, now is the time to take stock of your finances and make those strategic decisions for the next financial year.

In this post, we’ll give you valuable EOFY tips to help you maximise your returns and make informed decisions as an investment property owner.

Review Your Rental Income

If you haven’t already, take the time to evaluate your rental income. Does it align with the market rates for your area? Consider whether it’s appropriate to increase the rent for the upcoming year to reflect changes in the property market. Reviewing your rental income is crucial to ensure you maximise your returns and stay competitive in the market.

Depending on the type of rental agreement you have in place, there are restrictions on when and how often you can increase rent. For example, for agreements with a fixed term of 2 years or more, the rent can only be increased once in 12 months. If the agreement doesn’t specify a fixed term, or if the fixed term period of the tenancy agreement has ended, the same rule applies – rent can only be increased once in a 12-month period.

In addition, there are requirements on how you advise of rental increases. Be sure to check out fairtrading.nsw.gov.au for everything you need to know about increasing rent in your investment property in NSW.

Assess Property Expenses

Analyse your property expenses and identify areas where you can make savings. Review your insurance premiums, maintenance costs, property management fees, and other expenses associated with your investment property. Consider negotiating or shopping around with service providers or suppliers to obtain more favourable rates. By optimising your expenses, you can boost your overall returns.

Claim All Eligible Deductions

Familiarise yourself with the tax deductions you’re entitled to claim as an investment property owner. Expenses such as property insurance, property management fees, repairs, and maintenance costs are generally tax-deductible. Be careful, though; the ATO is particularly stringent when claiming for things that maintain the property verse something that improves it.

The Property Tax Specialists use the following example:

Fixing broken glass on a window is considered a repair. But, replacing the whole window frame is an improvement.

The Property Tax Specialists

Only the cost of repairing the broken glass is likely to be classified as ‘repairs and maintenance’.

We always recommend consulting with a qualified accountant or tax professional to ensure you claim all eligible deductions and maximise your tax benefits for your investment property.

Depreciation Schedule

Depreciation is one of the most significant tax deductions an investment property owner can claim yearly! Engage a quantity surveyor to prepare a depreciation schedule for your investment property. What’s a depreciation schedule? Glad you asked!

A rental property depreciation schedule is a report that clearly calculates and details the tax deductions a property investor can claim for the annual depreciation of their investment property (building and assets, not land).

Source: https://www.capitalclaims.com.au/what-is-depreciation-schedule

Exciting stuff, right?! Depreciation allows you to claim deductions for the wear and tear of your property’s assets, such as appliances, carpets, and fixtures. A depreciation schedule can help you maximise your tax benefits and improve your cash flow.

Capital Improvements

If you’re reading this post – you should have already considered undertaking any necessary capital improvements before the end of the financial year. If you’ve missed the boat – take note for next year!

This could include extensions or improvements to a building, major renovations of a room, adding a fence, and structural improvements like driveways or a retaining wall.

We found this super handy resource to determine the difference between repairs, maintenance or capital works when making an investment property owner claim.

Check it out on ato.gov.au

Upgrading your property can increase its value and potentially attract higher rental income. Additionally, capital improvements made before the end of the financial year can be claimed as tax deductions in the current year.

Scrutinise Your Loan Structure

Review your existing loan structure and assess whether it aligns with your current financial goals. Consider consulting with a mortgage broker to explore refinancing options, potentially securing a better interest rate or more suitable loan features. Evaluating your loan structure can help you save money and optimise your cash flow.

Maintain Accurate Records

This one is important! Make sure your financial records are up to date and organised. Keep records of all income and expenses related to your investment property, including rental income, bills, and maintenance receipts.

Records must include the following details:

Name of supplier
Amount of the expense
Nature of goods and services
Date the expense was incurred
Date of the document

Accurate and comprehensive records must be maintained for five years and are crucial for effective tax planning, and will streamline the preparation of your tax return.

Seek Professional Advice

If you’re unsure about any aspect of your investment property, seek professional advice. Accountants, financial advisors, and property experts will offer valuable insights tailored to your circumstances. Their expertise will help you make informed decisions about optimising your investment property strategy.

The end of the financial year is essential for investment property owners to evaluate their finances, look for ways to maximise returns and plan for the future. By reviewing rental income, assessing expenses, claiming eligible deductions, and seeking professional advice, you can maximise your investment property strategy and position yourself for success in the coming year. Stay proactive, organised, and informed to make the most of your investment property and secure a prosperous financial future.

Don’t forget – if you’re buying or selling an investment property in the Hunter Valley and surrounding area – we’re here to help! We can guide you through the process, and we’ll take care of all the ‘legal stuff’. And we’ve got a great extended network of accountants, financial advisors and other experts to tap into to help our clients on their investment property journey. Call us today on 02 4092 7676 !

7 Unexpected Factors That Can Impact Property Value

Thu, 02 May 2024 11:51:00 GMT

Property value is influenced by various factors, some of which may be unexpected. While location, size, and condition commonly affect property value, several lesser-known factors can have a significant impact. In this blog post, we’ll explore seven unexpected factors that can influence the value of a property.

Proximity to Public Transportation

While many people may consider proximity to public transportation as a convenience, there’s no doubt that it can impact property value.

Properties that are located near bus stops, train stations, or tram lines often command higher prices due to increased accessibility and convenience for commuters. Homes with easy access to public transportation attract buyers who rely on public transit for their daily commute, leading to increased demand and higher property values.

What’s also interesting is that according to realestate.com.au :

‘One Sydney study found property values within close proximity of new transport infrastructure rose in value as soon as construction began when compared with less connected neighbouring areas’.

School Quality

Perhaps this might surprise some of you, but people are known to move to a specific area to be zoned for a particular school! Believe us, it’s true!

The quality of nearby schools can significantly impact property value, even for buyers without school-aged children. Properties located within highly rated school catchment zones are often in high demand, leading to increased competition and higher prices. The crackdown on out-of-are enrolments contributes to this, as principals cannot accept out-of-area enrolments if they’re over or at their student population cap.

Families with children are willing to pay a premium to live in areas with top-rated schools, making properties in these zones more desirable and valuable.

Crime Rates

High crime rates in a neighbourhood can have a detrimental effect on property values and rental income – but it’s not always the case.

We can assume that potential buyers are often deterred by areas with high crime rates due to safety concerns, leading to decreased demand and lower property values. On the other hand, properties located in low-crime areas are perceived as safer and more desirable, resulting in higher property values. However, our research indicates that various factors, such as the type of crime and media attention, need to be considered.

For example, a 2014 study published by the University of Technology Sydney (which we admit is some time ago) found that murder caused a 4% decrease in the value of Sydney properties within close proximity to the crime scene. However, there was no effect on the rental market.

Another 2018 report by Infrastructure Victoria did seem to support the notion that crime rates affect property value – but only in regional markets and for crimes against people. It had no discernible effect in metro suburbs around Melbourne.

Environmental Hazards

Properties located near environmental hazards such as landfills, industrial sites, or polluted water sources can experience decreased property values.

In 2021, 9 News reported that ‘Residents in Sydney’s west claim they are struggling to sleep due to a foul odour coming from a nearby waste facility’. Yuck! Who would want to live there, right?

Potential health risks associated with environmental hazards can deter buyers and lead to lower demand for properties in affected areas. Additionally, environmental cleanup efforts or remediation costs may further impact property values in these locations.

Nearby Amenities

Location is one of the most significant factors for buyers, and properties in prime locations , such as those close to the city centre, beaches, or other amenities like schools, hospitals, and shopping centres, tend to have higher prices – especially if they’re within walking distance.

Living near amenities allows residents to easily access essential services and recreational activities, reducing travel time and enhancing convenience in their daily lives. For example, having a nearby park provides residents with green spaces for outdoor activities, exercise, and relaxation, promoting physical and mental well-being.

Similarly, access to restaurants and shopping centres allows residents to enjoy a diverse range of dining options and retail experiences without having to travel far from home.

Properties located near amenities are highly sought after and tend to have higher property values due to the desirable lifestyle they afford to residents.

Zoning Regulations

Zoning regulations can impact property values by dictating land use and development.

Properties in areas with strict zoning regulations may have limited development potential, leading to lower property values.

On the other hand, properties located in areas with favourable zoning regulations that allow for flexible land use and development opportunities may experience higher property values.

Searching for planning information about properties in NSW can be done online via NSW Planning Portal’s Spatial Viewer . Don’t forget -you’ll need the address of the property!

Economic Development

Economic development initiatives and infrastructure projects can positively impact property values.

Properties located in areas experiencing economic growth, such as new business developments or infrastructure improvements, may see an increase in demand and property values.

Buyers are attracted to areas with opportunities for employment and economic prosperity, leading to higher property values.

Unexpected Factors Influencing Property Value

The reality is that property value is influenced by many factors, some of which may be unexpected.

Understanding these factors can help homeowners and potential buyers make informed decisions about buying or selling property. By considering the seven unexpected factors discussed in this blog post, you can better understand the complexities of property valuation and consider making strategic decisions to maximise your property’s value.

If you’re navigating the complexities of buying or selling property in NSW and want expert guidance tailored to your needs and goals, contact us ! Our team are here to support you every step of the way.

DIY Open Home Styling Trends for 2024

Sun, 25 Feb 2024 21:18:00 GMT

In the world of real estate, first impressions matter. While staging is a fantastic way to boost your sale price, it’s not an option that’s always affordable for sellers. As we step into 2024, the DIY open home styling trend is growing, and it’s taking a bold turn, blending creativity, functionality, and a touch of personal flair.

Whether you’re a seasoned homeowner or a first-time seller, these open home styling trends will help you transform your space (and stay on budget!) into a show-stopping haven that potential buyers won’t be able to resist.

Sustainable Chic: Embrace Green Living

Sustainability is no longer a buzzword; it’s a way of life. As a seller, you can infuse eco-conscious elements into your open home by incorporating sustainable materials, recycled decor, and energy-efficient lighting.

Think bamboo furniture, recycled glass accents, and indoor plants to create a fresh and environmentally friendly atmosphere. Today’s buyers appreciate homes that look good and contribute to a greener future.

Vintage Revival: Timeless Charm with a Modern Twist

Nostalgia meets modernity in the vintage revival trend. If you’re trying to sell an older home (and let’s face it, there are quite a few across the Hunter Valley ), add a vintage vibe by mixing carefully chosen antiques and classic patterns with modern elements for a timeless look. Think of mid-century modern furniture, vintage rugs, and brass accents to transport buyers to a time when style was timeless.

Don’t forget to check out Hermitage Road Antiques in Pokolbin or Hunter Antiques in Newcastle. And your local Salvos Store , Vinnies or even friends and family could be hiding some unique styling pieces!

Artful Wallscapes: Make a Statement

Blank walls are a canvas waiting to be filled. Transform your space by creating artful wallscapes that tell a story. Think beyond traditional artwork and experiment with bold hangings, wall decals, or even a DIY gallery of your own photos. To stay on budget, see what deals you can get for wall art or framed artwork on Facebook marketplace.

A well-curated wallscape adds visual interest and sets your home apart in the buyer’s memory.

Tech-Integrated Spaces: Smart Homes, Smarter Styling

Welcome to the era of smart living. Integrate tech-savvy elements into your home to cater to the modern buyer.

Consider budget-friendly smart lighting and security systems like this Ring Doorbell from Bunnings that enhance your space’s functionality, improve security, showcase its potential for smart living, and increase the value of your property.

A tech-integrated home speaks volumes about its adaptability to contemporary lifestyles.

Cozy Retreats: Create Intimate Spaces

Creating cozy retreats within your home can be a game-changer in a world that’s always on the move. Designate intimate spaces for reading nooks, meditation corners, or coffee stations. Layer soft textures , incorporate warm lighting, and, where you can, emphasise your plush seating to make these retreats irresistible.

Want some ‘el-cheapo’ styling pieces? Don’t be afraid to visit your local Kmart ! You’ll find heaps of great ideas on Instagram for incorporating these budget-friendly styling pieces into your home, and buyers will appreciate the thought put into creating inviting niches within the home.

Biophilic Design: Nature Inside

First, let’s define Biophilic because if you’re like us – you’ve probably never heard the term! According to the Living Future Institute Australia:

When incorporating this into your open home styling, think of it as bringing the outdoors in! It’s a trend that continues gaining momentum in Australia and worldwide. Your starting point could be styling with more indoor plants, but to really embrace biophilic design, try incorporating natural materials, plants, and enhancing any large windows that blur the lines between indoor and outdoor spaces.

Create a connection with nature that resonates with buyers seeking a harmonious living environment.

DIY Art Installations: Unleash Your Creativity

Art doesn’t have to be confined to canvases. Channel your inner artist and create DIY art installations that become focal points in your home. Whether it’s a hand-painted mural, a trendy textured art piece, or a custom tapestry, these unique touches can set your home apart without costing you an arm and a leg. Keen to try your hand at textured art? Better Homes and Gardens has a quick and easy guide to help you.

Flex Spaces: Adaptable Living

Buyers are increasingly looking for homes that adapt to their evolving needs. Showcase the versatility of your space by creating flexible areas that can serve multiple purposes.

Are you ready to tackle DIY open home styling?

DIY open home styling is gaining popularity for several reasons including cost, flexibility and the abundance of online resources providing guidance and inspiration to homeowners.

In 2024, the DIY open home styling trends are all about embracing individuality, sustainability, and the evolving needs of modern living. By infusing your personality into these trends, you create a visually appealing space and connect with potential buyers on a deeper level. Remember, the key is to strike a balance between current trends and timeless elements that make your home universally appealing. Make use of the resources at your fingertips, have fun, but don’t go overboard!

Are you ready to sell your home and want to ensure your best interests are looked after? Call our team on 02 4092 7676 or contact us via our enquiry form for a no-obligation chat about how we’ll support your selling journey.

Estate Planning 101: Unlocking Peace of Mind and Securing Your Legacy

Sun, 28 Jan 2024 22:56:00 GMT

Life’s a bit like a rollercoaster. There are twists, turns and surprises around every corner – some expected, some not so much. That’s why we’re exploring the world of estate planning. In this post, we’re diving into why estate planning not only safeguards your assets but also paves the way for a legacy that goes beyond your own time. Right, let’s get into it.

Understanding Estate Planning: A Holistic Approach

Estate planning is more than a legal endeavour; it’s a holistic approach to securing your future and the futures of those you care about. At its core, estate planning involves creating a strategy to manage your assets during your lifetime and ensuring a seamless transfer of wealth to your chosen beneficiaries after you’re gone.

While it’s tempting to think of estate planning as a task for older generations or only the wealthy, the truth is that it’s a crucial step for anyone who wishes to exercise control over their assets and protect their loved ones.

The Pillars of Estate Planning NSW

1. Your Will

At the heart of any estate plan lies your last will —a legal document that outlines how you wish your assets to be distributed upon your passing. It not only designates beneficiaries for your property but also names guardians for minor children, if applicable.

A will can also include details on your funeral, make provisions for your pets and let you choose your preferred executor. If you don’t have a will, NSW intestacy law sets out who will inherit your estate – potentially leading to unintended consequences.

If you’re outside of NSW, find your state below for more information:

Dying without a will in Queensland

Dying without a will in Victoria

Dying without a will in ACT

Dying without a will in Tasmania

Dying without a will in South Australia

Dying without a will in Western Australia

Dying without a will in the Northern Territory

2. Power of Attorney

Estate planning extends beyond the distribution of assets and includes considerations for potential incapacitation. A power of attorney allows you to designate someone to make financial or legal decisions on your behalf if you cannot do so. This ensures that your wishes are respected, even in challenging circumstances.

In NSW, there are two types of attorneys. A general attorney is usually given for a specific period – for example, if you’re in hospital for a few weeks and want someone to manage your affairs.

On the other hand, an enduring attorney allows you to appoint a person(s) to manage your financial and legal decision on your behalf and continues even if you lose the ability to make the decision yourself.

3. Enduring Guardian

An enduring guardian is a person you appoint to make lifestyle, health and medical decisions for a time when you become unable to make decisions yourself. Importantly, they can’t make any decisions until you’re unable to and a doctor or specialist may be called upon if it’s uncertain whether your enduring guardian should commence.

Choosing your enduring guardian or whether you should appoint more than one person can be a difficult decision and there are a range of factors for you to consider.

It’s crucial that the person you choose:

Is a trusted person.
Is up for the task, and ready to step into the role.
Can make tough decisions, especially in emotional situations.
Truly grasps your needs, wishes, values, and beliefs.
Is easily reachable when decisions come knocking.
Understands that they won’t be paid —it’s about trust and commitment.

Our team will help you prepare your enduring guardianship document as part of your estate planning.

4. Trusts

Trusts are versatile tools in estate planning, offering a way to manage and distribute assets while providing benefits. The Law Society of NSW provides the following reasons why someone would choose to set up a trust:

To separate the owner of the asset (the beneficiary) and control over that asset (the trustee), for example. where the beneficiary is underage or suffers from a disability that affects their decision-making
To provide greater flexibility in tax planning
To protect assets from financial claims made against the beneficiary, and
To use as a business entity for investing (for example, to purchase real estate or a share portfolio) or trading.

Key Benefits of Estate Planning

1. Asset Protection

Estate planning shields your assets from potential legal challenges and creditors, preserving your wealth for the intended beneficiaries.

2. Family Harmony

Clear directives and distribution plans minimise the potential for family disputes. Estate planning fosters harmony by ensuring everyone knows your wishes and intentions.

3. Tax Efficiency

Strategic estate planning can minimise the tax burden on your estate, allowing more of your assets to be passed on to your beneficiaries. Estate planning can help minimise these taxes for your loved ones.

Common Misconceptions About Estate Planning

1. Estate Planning is Only for the Wealthy

We call BS on this one! Estate planning is not exclusive to the wealthy. Regardless of wealth, everyone can benefit from having a plan to ensure their wishes are carried out and their loved ones are provided for.

2. Estate Planning is Only About Money

While financial considerations are a crucial aspect of estate planning, it also addresses personal, healthcare, and familial aspects. It’s a comprehensive strategy that encompasses all facets of your life.

3. Estate Planning is a One-Time Task

Life is fluid and your circumstances may change from time to time. Regular reviews and updates ensure that your plan remains aligned with your current circumstances, goals, and any changes in the legal landscape.

Navigating the Estate Planning Journey

We know that taking the first step on your estate planning journey is daunting, but with the right guidance, it becomes a straightforward and empowering process.

Here are steps to guide you:

1. Define Your Objectives

Grab a pen and paper (go on, do it!). Now, write down your goals and intentions. What legacy do you wish to leave? Who are the intended beneficiaries of your estate, and how would you like your assets distributed?

2. Take Inventory of Assets

Keep holding that pen and paper because, for this next step, you will create a comprehensive list of your assets, including properties , investments, business interests, and personal belongings. Remember, just because you don’t have millions doesn’t mean you have nothing worth preserving or providing to your loved ones. You should include cash, investments, vehicles, jewellery, artwork, furniture, and any other personal possessions of value . Understanding the full scope of your estate informs the planning process.

3. Identify Key Players

Designate individuals to play critical roles in your estate plan, such as the executor of your will, trustees for trusts, trusted people for powers of attorney and enduring guardians.

4. Get Professional Help

We know how overwhelming estate planning can be. No one really likes to chat about what happens when they pass. That’s why we recommend engaging the expertise of estate planning professionals, including solicitors, financial advisors, and tax experts. Their insights ensure that your plan aligns with legal requirements and maximises benefits.

5. Regularly Review and Update

Life doesn’t always go the way we plan, and circumstances change. Regularly review and update your estate plan to reflect changes in family dynamics, financial status, and relevant laws.

Ready to start estate planning?

Estate planning is not just about preserving wealth; it’s about securing peace of mind and crafting a legacy that extends beyond your lifetime.

By taking a proactive approach, you empower yourself to navigate life’s uncertainties confidently, leaving a lasting impact on future generations. Embrace the journey of estate planning—it’s a gift to yourself and your loved ones that transcends time.

Don’t forget, it’s best not to leave it until it’s too late – now is the time to get your affairs in order . Oliver Howells & Co. will help make estate planning a smooth process by ultimately guiding you and assisting you in the preparation of the key legal documents. Call our team today on 02 4092 7676 or book your Power Planning Session if you want certainty and peace of mind.

Starting Your Investment Property Journey in 2024

Mon, 18 Dec 2023 23:00:00 GMT

Investing in property can be a rewarding venture. As you move into the new year, there’s no better time to explore the opportunities that the investment property market has to offer. In this comprehensive guide, we’ll walk you through the essential steps to embark on a successful property investment journey in 2024.

Understand the Property Market

Before diving in, take the time to understand the current state of the property market in the area you’re looking to invest in.

You’ll want to research key trends, market performance, and regional variations. Consider factors like population growth, infrastructure development, and economic indicators. This knowledge lays the foundation for informed decision-making.

Suburbsfinder.com.au has a comprehensive guide to help you understand property market terms and what to look for, and it even includes some examples – be sure to check it out!

Set Clear Investment Goals

It’s important to define your investment goals early on. Here are some goals you might need to consider:

Are you looking for long-term capital growth, rental income, or a balance of both?
Do you want passive income to help you become financially independent?
Are you interested in multiple investment properties, a development project or a block of flats?

Remember – and you’ve probably heard this before – but set SMART goals.

Specific
Measurable
Achievable
Realistic
Timely

For example, instead of saying you want to ‘grow my investment property portfolio, try:

I will have added at least one property to my portfolio by 30 June 2024, which I will purchase at a price of at least 10% below the fair market value .

Establishing goals will give you a clear vision of what you want to achieve with property investment and guide your property selection and overall strategy. Here’s a template you might find useful: SMART Goal Template .

Budget and Financial Planning

Set a realistic budget for your property investment journey.

Consider not just the property’s purchase price but also additional costs like stamp duty, legal fees, and ongoing expenses such as maintenance and property management. We recommend chatting with a financial advisor who can help you determine whether you’re ready to invest in property and align your investment with your financial goals.

Explore Financing Options

Various financing options are available for property investors.

Investigate mortgage rates, loan terms, and eligibility criteria. Whether you opt for a traditional mortgage or explore government-backed schemes, understanding your financing options is crucial for making informed decisions.

Did you know: In NSW, if you have owned an interest in residential property since 1 July 2000 that has been solely used for investment purposes, you may be eligible for the First Home Owner (New Homes) Grant on another property.

Choose the Right Location

Location is a crucial factor in property investment success.

Consider factors like proximity to amenities, employment hubs, schools, and public transport.

‘A mediocre property in the right suburb will do far better in terms of capital gains and rental potential than a stunning home in a terrible location. You need to ask yourself what is prompting buyers to purchase here and, more importantly, what might increase demand in the future.’

Source: propertybuyer.com.au

Regional areas with growth potential or established suburbs with a track record of appreciation can offer diverse investment opportunities.

Property Types and Strategies

Explore different property types and investment strategies based on your goals.

From residential properties to commercial spaces, you have various options to consider.

Again, we recommend seeking professional advice to determine what strategy aligns with your financial capability, budget and goals. Whether you’re interested in buy and hold, renovating for profit, or diversifying with commercial investments, align your strategy with your long-term objectives.

Engage with Local Real Estate Professionals

Building a strong network of real estate professionals is invaluable.

Connect with local real estate agents, property managers, and financial advisors who specialise in the area that you’re looking to invest in. Their insights and expertise can provide valuable guidance, enhance your understanding of local dynamics, and allow you to learn about new properties before they hit the market.

Due Diligence

Thorough due diligence is crucial before making any property investment decisions.

Investigate property history, market trends, and potential risks. Also, it’s important to stay informed about zoning regulations, development plans, and any upcoming infrastructure projects that could impact property values. And don’t forget it’s important to inspect any property (and the surrounding neighbourhood) you’re considering purchasing. We think the below quote from Streamline Property Buyers sums it up nicely:

‘You simply cannot rely on images provided by a sales agent on a real estate listing to provide the full story.  An on-site inspection is a must for a thorough property due diligence process.  What you cannot see in listing photos is what the streetscape looks like, the quality of the adjoining homes, and any potential noise impact from nearby transport corridors, local industry, or even the neighbours themselves.’

Consider Tax Implications

Understand the tax implications of property investment by seeking professional advice.

You’ll need to be familiar with stamp duty rates, capital gains tax, and any available concessions or incentives for property investors. Seeking advice from a tax professional ensures you optimise your investment strategy within the legal framework.

Build a Diverse Portfolio

Diversification is a crucial principle in successful property investment.

Spread your investments across different types of properties and regions to mitigate risks and capitalise on diverse opportunities. Basically, not all your investments will perform the same. While an investment property in one market may be experiencing a downturn in growth, an investment in a different market could be rising in value.

Exactly how you diversify depends on your age, income, appetite for risk and other factors. A well-balanced portfolio can provide stability and resilience in varying market conditions.

A Thriving Investment Property Portfolio Awaits

As you enter the world of property investment in 2024, remember that success is built on knowledge, careful planning, and strategic decision-making.

With its dynamic opportunities and diverse landscapes, the real estate market offers investors the opportunity to create a thriving investment property portfolio.

Whether you’re a first-time investor or looking to expand your existing portfolio, the key lies in staying informed, setting clear goals, and leveraging the expertise of local professionals. By following these steps, you’ll be well on your way to unlocking the potential of property investment and building a prosperous financial future. Happy investing!

Ready to tip your toe in the Hunter Valley investment property market? We’re here to help! Engaging with a conveyancer early in the process is the key to understanding the process of purchasing an investment property and ensuring that your best interests are protected from the start. Call our team today on 02 4092 7676 for a free chat about how we can help.

7 Reasons to Get Your Affairs in Order in 2024

Sun, 03 Dec 2023 22:31:00 GMT

Can you believe that 2024 is almost here? Where on earth has 2023 gone? Like most people, you’ll probably start to focus on personal goals for the new year, like fitness and wellness. But what about your financial or legal goals? Getting your affairs in order is a great way to start the year proactively, providing peace of mind and ensuring you work towards a secure future. In this post, we’re exploring seven reasons to get your affairs in order for 2024.

1. Clarity for Your Loved Ones:

One of the most significant reasons to get your affairs in order is to provide clarity for your loved ones. No one likes to think or talk about what happens if they die, but it’s an important topic that you need to consider.

By organising your financial records, wills, and important documents, you make it easier for family members to understand your wishes and navigate the necessary legal processes in the event you become incapacitated or pass. While it’s tough to think about these things, it’s a thoughtful act that can alleviate so much stress for your family during difficult times. The Law Society of NSW has a great resource that covers the importance of a will .

2. Protecting Your Assets:

Organising your affairs is a proactive step in safeguarding your assets. This includes creating or updating your will, establishing trusts, and reviewing your insurance coverage where suitable. Most people have some idea about what they want to happen to their belongings or other assets. By taking these measures, you’re in control of how your assets are distributed, potentially minimise the impact of taxes, and provide financial protection for those you love.

3. Estate Planning for Wealth Preservation:

Estate planning goes beyond just creating a will; it’s the process of arranging your affairs now to ensure there is an efficient and effective distribution of your estate after your death. Estate planning involves a comprehensive strategy to preserve and manage your wealth during your lifetime and for the benefit of future generations. Whether setting up trusts, designating beneficiaries, or exploring investment options, effective estate planning ensures that your hard-earned assets continue to work for you and your family.

Crafting the right estate plan for your personal situation requires experienced estate planning lawyers . Here at Oliver Howells & Co., we actively listen to your desires, consider your financial situation, and provide legal guidance to tailor an estate plan specifically suited to your needs.

4. Preparing for the Unexpected:

Life is unpredictable, and unforeseen circumstances can arise. From accidents to sudden health issues, having your affairs in order prepares you and your family for the unexpected.

Consider establishing an enduring power of attorney and advance care directives to ensure that someone you trust can make financial and medical decisions on your behalf if you become incapacitated.

5. Streamlining Financial Management:

Getting your financial affairs in order involves more than just filing paperwork. It’s an opportunity to assess your financial goals, budget, and investments. Take the time to review your financial accounts, consolidate if necessary, and create a clear financial plan for the year ahead. If you’re not sure where to start, we recommend chatting with a financial advisor who can work with you to put in place strategies such as:

Paying off your home loan quicker
Saving money and growing your assets
Boosting your super balance with tax-effective strategies
Protecting your income
Building an investment portfolio
Giving your kids a head start and helping them secure their future.

Source: BT

This not only streamlines your financial management but also puts you on a path to achieving your financial objectives.

7. Peace of Mind for a Prosperous Year:

Perhaps the most valuable outcome of getting your affairs in order is the peace of mind it brings.

Knowing that your financial and legal matters are well-organised allows you to approach the year ahead confidently. You can focus on personal and professional growth without the looming concern of unaddressed financial or legal issues.

Taking Practical Steps for 2024

Now that we’ve explored reasons to get your affairs in order let’s discuss some practical steps you can take to kickstart the process for a prosperous 2024:

a. Conduct a Financial Checkup:

Review your financial accounts, investments, and budget. Identify areas that need adjustment and set clear financial goals for the year. If you’ve never had a budget, check out the moneysmart.gov.au Budget Planner.

b. Update Your Estate Plan:

If you already have an estate plan, review and update it. If you don’t, now is the time to consult with an estate planning lawyer to create one.

c. Organise Important Documents:

Gather essential documents such as wills, insurance policies, deeds, and advanced healthcare directives. Store them in a secure and easily accessible location.

d. Explore Tax Planning Opportunities:

Stay informed about any changes in tax laws and explore opportunities to optimise your tax strategy. Consult with a tax professional for personalised advice.

e. Communicate Your Wishes:

Discuss your financial and estate plans with your loved ones. Transparency about your intentions can prevent misunderstandings and conflicts in the future.

f. Invest in Professional Advice:

Consider seeking guidance from financial advisors, estate planning lawyers, and tax professionals. Their expertise can help you make informed decisions tailored to your specific circumstances.

g. Set Up Financial Safeguards:

Establish or update your enduring power of attorney, advanced healthcare directives, and any other legal documents necessary for unforeseen circumstances.

Getting your affairs in order for 2024 is not just a resolution.

Getting your affairs in order is a proactive step toward a secure and well-planned future. By comprehensively addressing your financial and legal matters, you empower yourself to navigate the year ahead with confidence, clarity, and peace of mind. So, let this be the year you take charge of your financial destiny and lay the foundation for a prosperous and worry-free future.

If you want support navigating any of the above, contact our friendly and experienced legal team at 02 4092 7676 or admin@oliverhowells.com.au . We offer free 15-minute consultations, and believe us when we say we don’t believe in ‘silly questions’. You’re in safe hands when you choose Howells & Co Legal & Conveyancing , and we’ll support you every step of the way.

Getting Your Home Ready for a Summer Sale: Ultimate Tips for Success

Thu, 26 Oct 2023 04:52:00 GMT

As the temperatures rise and the days grow longer, summer presents a fantastic opportunity to sell your home. With the sun shining, gardens in full bloom, and buyers eager to move during the school holidays, it’s a prime season for real estate deals. To make the most of this selling window, here is a guide on what to do when getting your home ready for a summer sale.

Boost Curb Appeal

First impressions matter. To captivate potential buyers from the moment they lay eyes on your property, make sure your home’s exterior shines.

Landscaping is the perfect place to start. It can be as simple as trimming the grass, adding fresh mulch or planting colourful flowers. Be sure to clean the exterior of your home, including windows and driveways, with a good pressure wash. If you really want to take it up a level, Home Beautiful has provided seven ways to create kerb appeal, including:

Reinstating or repainting any heritage architectural features, like archways or fretwork.
Adding a formal garden path to your front steps or door.
Instating a statement front gate painted with a bright pop of colour
Painting your home exterior white
Adding a stone feature wall
Having an updated and stylish front fence
Updating your roof

A welcoming exterior sets the stage for what’s inside.

Let the Light In

Summer is all about sunshine and warmth, so make the most of it when getting your home ready for a summer sale.

Open curtains and blinds to let natural light flood your space. And, although it sounds count-intuitive to have windows open and aircon on – do it! You want to make sure your potential buyers are kept cool and comfortable.

Consider light, airy curtains that complement your interior décor. Freedom stocks a beautiful range of affordable sheers in tab top, eyelet and s-fold curtains to suit any home. Oh, and don’t forget to clean your windows to show off a crystal-clear view!

Create an Inviting Atmosphere

Emphasise the season’s charm by updating your interior decor with summer in mind.

Light, breathable fabrics like linen and cotton can give your home a relaxed and airy feel. Add some pops of colour with summer-themed decor like throw pillows, artwork, and accessories. Vogue has a great range of summer decorating ideas, including tips on choosing summer colours and how to create a resort vibe.

Even if you can’t splurge on professional staging, small updates can make a world of difference. And don’t forget, fresh flowers in vases and bowls of citrus fruits can create a refreshing ambience.

Maintain Optimal Temperature

Keep your home comfortably cool, especially during open houses or private showings. When getting your home ready for a summer sale, consider setting the air conditioning a few degrees lower to provide a welcome respite from the summer heat.

If you have a patio or backyard, try to incorporate shade options like umbrellas or pergolas for outdoor comfort, and turn your outdoor and indoor fans on to increase airflow.

Clean and Declutter

We really can’t stress this point enough: a clean and clutter-free home is incredibly appealing to potential buyers. It’s a great way to prepare your home for a summer sale and shine a light on your home’s features.

Start with a deep clean of each room, including carpets, appliances, and windows. Get rid of items you don’t need and consider renting a storage unit for excessive clutter. Don’t forget to declutter your cupboards – especially your linen cupboard! Buyers will always open doors to check out storage spaces, and there’s nothing worse than opening a cupboard to find everything just stuffed in there, ready to jump out at you!

Tidy, organised spaces will make your home feel more inviting, more spacious, and more liveable.

Stage Your Home

Right off the bat, let us just say that not everyone can afford staging. But if you can, staging can significantly boost your home’s appeal and the sale price of your summer sale. In fact, according to realestate.com.au , for every dollar that you invest in styling your property, you make $3 in return when you sell. That sounds like a worthwhile investment to us!

If you’re in the Hunter Valley /Newcastle regions, we highly recommend Authentically Staged . But you can also check out these professional staging companies:

Get Staged Newcastle & Hunter

Plush Home

Newcastle Home Staging

Mode Hire

If you can’t stretch the budget for staging, try simply rearranging your furniture and refreshing décor to maximise the space and create a more inviting atmosphere. The goal is to help potential buyers envision themselves living in your home.

Enhance Outdoor Spaces

Summer is the perfect time to show off your outdoor areas. Make your patio, deck, or backyard an inviting and attractive space for relaxation and entertaining.

Don’t forget to give your outdoor furniture a good clean, add fresh cushions, and create an inviting and relaxing atmosphere with fresh potted plants and outdoor rugs.

Repair and Upgrade

Take care of any necessary repairs and upgrades before listing your home.

Leaky taps, creaky doors, and peeling paint should be addressed. In some cases, investing in small upgrades like updated light fixtures or door handles will give your home a face-lift and yield a significant return on investment. Want to DIY new door handles? Read ‘ How to Replace a Door Handle with Shannon Vos ’.

Emphasise Energy Efficiency

Summer homebuyers often appreciate energy-efficient features. Ensure your real estate agent is well briefed on any energy-efficient appliances, windows, or insulation in your home – that way they can highlight them to potential buyers. You could even be prepared to share lower utility bills as a selling point.

Showcase Summer Amenities

If your home has unique summer amenities, like a pool , outdoor kitchen, or a beautiful garden, make sure they’re showcased in your marketing materials.

We always recommend using professional photos to highlight these features and emphasise how they can enhance a buyer’s summer lifestyle.

Set a Competitive Price

Work with your real estate agent to determine a competitive but attractive asking price. Consider recent sales in your neighbourhood, market conditions, and any unique selling points your home offers. A well-priced home is more likely to generate interest and get potential buyers through the front door.

Market Strategically

Your real estate agent should implement a marketing plan tailored to the summer season. Utilise online listings, social media, and print materials to showcase your home’s summer appeal. As we mentioned above, high-quality photography and even virtual tours for interstate or non-local buyers can be engaging and generate interest.

Be Flexible with Showings

With longer daylight hours and summer holidays, potential buyers may request showings at different times. Be flexible and accommodating to ensure you don’t miss out on any interested parties.

Highlight Local Amenities

Summer buyers often consider the neighbourhood’s amenities. Choosing a real estate agent who is local to your area will ensure that they’re better able to promote local parks, community events, and nearby attractions that make your area appealing during the summer months.

Suggestions for nearby cafes, vineyards, favourite ice cream spots, or outdoor activities can create a personal connection and highlight your neighbourhood’s charm.

Prepare for Quick Settlements

Summer buyers are often more motivated to move quickly, especially those with school-aged children. Be prepared for a speedy settlement process and have all necessary documents and information readily available.

Is your home ready for a summer sale?

Selling your home during summer can be very beneficial. Generally, the longer daylight hours and nicer weather make it easier and more pleasant for potential buyers to view and appreciate your home. By focusing on curb appeal, creating an inviting atmosphere, and effectively marketing your property, you can increase your chances of a successful and profitable summer sale.

Want to make your selling experience simpler? Talk to us before you put your property on the market! We’ll guide you through the process and be there at every step of the way. Call us today on 02 4092 7676 for your free consultation call, or get your free quote HERE.

To Buy or Build a House: Weighing the Pros and Cons

Wed, 27 Sep 2023 00:31:00 GMT

So, you’re finally ready to take that big step into homeownership, huh? Congratulations! It’s an exciting journey, and we’re here to help you navigate one of the biggest financial decisions you’ll make – do you buy or build a house?

We get it; it’s a tough call that can cause significant overwhelm! So, let’s dive into the pros and cons of each option to help you make an informed choice.

Buying a House – The Pros

Instant Gratification

One of the most significant advantages of buying an existing house is that you can move in right away. Well – almost! You’ll have to wait until settlement, but it’s quicker than waiting months (sometimes years) for construction to finish on a new build.

The cost and time to build a new home in Australia has increased significantly in the last few years. In fact, depending on the size and type of house being built, it can take 12 – 24 months to build a home in Australia.

Easier Process

Put simply, buying an existing home is generally a faster and easier process than building.

The construction process for a new home can be time-consuming – there’s plenty of paperwork, council approvals, multiple rounds of designs, inspections, and those dreaded weather delays. When buying an existing home, the process is much more straightforward and means you can be in your home within weeks – not months or years.

Location Options

When you buy an existing home, you have a wide range of neighbourhoods and areas to choose from. You can move into a well-established community with schools, parks, and amenities already in place.

Predictable Costs

You’ll know exactly what you’re paying for upfront. You won’t have surprise construction expenses or delays. The house is there, and the price is set. Of course, there are a range of upfront costs that must be factored in, like transfer duty. You can find out more in our article The Real Cost of Buying a Home in NSW .

Buying a House – The Cons

Limited Customisation

With an existing home, you’ll likely need to compromise on your dream features. For example, you may not get that dream butler’s pantry or media room. Renovations can also be costly and time-consuming, so you might have to live with the home’s existing design – at least for a while.

Potential Repairs

Older homes might come with hidden issues. Regardless of the age of the house, you could find yourself dealing with unexpected repairs and maintenance costs.

This could include repairing a leaking roof, replacing old wiring or redoing that back deck. And they might seem like minor issues, but the costs can definitely add up over time. Take a look at the five most common problems in older properties by Domain.

Less Energy Efficiency

Older homes might not be as energy efficient as newly constructed ones, which can result in higher utility bills and less money in your back pocket.

Building a House – The Pros

Build it Your Way

Building your own home means you get to design it just the way you want. It’s all up to you, from choosing the right builder to the floor plan and fixtures. Want that extra bedroom? Not a problem! Dream of a butler’s pantry or a big back deck? You can do it! The only thing potentially limiting is your budget.

Energy Efficiency

New construction homes are built with the latest energy-efficient materials and technologies, which can lead to substantial savings on your utility bills in the long run. New homes often have good insulation in the walls, ceilings and floors, and modern and efficient heating and cooling options.

An energy-efficient home is not only environmentally friendly but can offer healthier and cleaner living conditions for residents.

No Hidden Surprises

Since everything is brand new, you’re less likely to encounter unexpected repair costs early on. Plus, you’ll often have a builder’s warranty to cover any issues. This isn’t to say that you won’t have problems, but depending on what the issue is, it’s likely to be covered by the warranty.

Future-Proofing:

Building allows you to incorporate modern features and technologies that will make your home more appealing to potential buyers in the future, which can be a smart investment. For example, you can choose your façade and the layout of key rooms like kitchens and bathrooms.

Building a House – The Cons

Cost

Whether building a house is cheaper than buying depends on many factors – location, proximity to amenities, the size and type of house you’re building and whether you’re eligible for a first home concession. Building a home was generally considered cheaper until material costs increased, and in fact, as of April 2023, building is the cheapest option in only two Australian cities .

Time-Consuming

Construction takes time, often several months to a year or more. If you’re in a hurry to move into your new place, this might not be your best option.

Stress and Decision-Making

The process of building a home can be overwhelming. You’ll need to make countless decisions about every aspect of the house – from the layout to light fixtures and the colour of your carpet – it’s one decision after another.

Then, throw in some second-guessing and frustrations during the building process (like weather delays or extra costs associated with necessary upgrades); the process can be stressful for some.

Land Size and Availability

Finding suitable land can be challenging, depending on where you want to build. There’s no point denying it – newer estates tend to have smaller blocks. Gone are the days of the family-sized backyard! These days, you might find your options for larger living are limited, and you could compromise on location or pay a premium for the perfect spot or a larger block.

So, what’s the verdict? Will you buy or build a house?

Ultimately, the decision between buying and building comes down to your personal preferences, budget, and timeline.

Buy if:

You want to move in quickly and don’t want to wait for construction.
You need a more affordable option upfront.

You’re not too fussy about customisation and are open to making gradual updates over time.
You’ve found an existing house in your ideal neighbourhood .

Build if:

You have a clear vision of your dream home, and you want less compromises
You’re willing to invest time and effort to build your home.
Energy efficiency and modern amenities are a top priority for you.
You have the budget to cover buying land, building the house, landscaping and covering unexpected upgrades (like a slab upgrade or meeting bushfire requirements).
You’re patient and can handle the decision-making process that comes with building.

Remember, there’s no one-size-fits-all answer, and both options have merits. Take your time to weigh the pros and cons, consult with professionals, and, most importantly, trust your instincts. This is a significant milestone in your life, and whether you choose to buy or build, it’s a step toward creating a place you can call home.

Ultimately, it’s not just about buying or building; it’s about finding the place where you’ll create memories, build a life, and watch your dreams unfold. So, go out there, explore your options, and make the choice that feels right for you. And, when you’re ready, we’ll be here to help you navigate the buying process – from a free pre-purchase contract review to a 15-minute consultation that won’t cost a cent – contact us !

Happy house hunting!

9 Tips for Overcoming Buyer Fatigue When Buying a House

Mon, 04 Sep 2023 01:16:00 GMT

Buying your first home is an exciting milestone and marks a significant step towards your independence and financial stability. However, amidst the excitement lies a challenge many first-time buyers face: buyer fatigue. This phenomenon, often accompanied by stress, decision overload, and house hunter overwhelm, can make your property-purchasing journey feel like a nightmare. In this post, we’re diving into buyer fatigue, its causes, and, most importantly, how to conquer it to make a confident and informed decision when purchasing your first home.

Understanding Buyer Fatigue

Buyer fatigue is the mental and emotional exhaustion that results from prolonged and overwhelming decision-making during the property search process. As a first-home buyer, you’re bombarded with options, paperwork, decisions and information, which can leave you feeling mentally drained and unsure about your choices. This emotional and mental strain can stem from a range of factors. Let’s explore these now.

Causes of Buyer Fatigue

1. Information Overload

With an abundance of property listings, mortgage options, and legal intricacies, it’s easy to become overwhelmed by the sheer volume of information and choices you need to make. Not to mention the information you’re probably Googling at night or the endless advice your well-meaning friends and family offer you. Sometimes, it’s all just a bit much.

Information overload happens when you take in a large amount of information , and it’s simply too much for you to process. It can have the opposite effect of what you’re hoping to achieve. Rather than helping you move forward in your decision-making, the staggering volume of information may become paralysing and prevent you from moving forward.

2. Financial Stress

The financial commitment of purchasing a property is substantial. It’s one of the most significant financial decisions and investments you’ll make in life. The pressure to make a wise investment can lead to anxiety and uncertainty. Not only do first-home buyers have the stress associated with budgeting, saving a deposit and working out if they can meet their repayment requirements, the process of applying for a home loan isn’t straightforward.

Four years ago, St George Bank’s Home Buying Survey indicated that more than half of all first-home buyers feel stressed when applying for a home loan. Fifty-one per cent of home buyers commented that the process was stressful, and 42% described it as overwhelming. Although this data is somewhat outdated, we can only assume that with rising interest rates, combined with the increase in the cost of living, these statistics would still be relevant, if not higher.

3. FOMO (Fear of Missing Out)

Good old FOMO! The fear of not finding the perfect property can drive you to search continually. You’re probably spending late nights endlessly scrolling through realestate.com.au or domain.com.au , filling your weekdays and weekends with open home inspections – even for properties that don’t suit your needs or budget. You’re also probably on a first-name basis with most of the agents in your area.

Then consider this – Housing market FOMO transforms into FOMM – the Fear of Making a Mistake! Both can be crippling. Both can increase the feelings of stress and overwhelm when it comes to buying your first house.

4. Rejection and Competition

As a first home buyer, you are forgiven for thinking that buying your first house is as easy as saying, ‘I’ll take it’. Instead, facing multiple bidding wars or having rejected offers can lead to feelings of defeat, frustration and a sense of discouragement. Unfortunately, this is part and parcel of the real estate market. In fact, taking this rejection personally is one of the biggest mistakes buyers can make.

Whatever you do – don’t give up, and don’t waste too much of your energy wondering ‘why’. Instead, find a way to learn from the experience and apply this to your next attempt.

Overcoming Buyer Fatigue

Managing buyer fatigue isn’t something a first home buyer is likely to think about until you’re caught up bang smack in the middle of it. For some, you probably won’t even realise this is what you’re experiencing when the emotional and mental strain starts to raise its ugly head.

How do you overcome buyers fatigue? Well, it’s not always easy, but here are our top tips:

1. Set Realistic Expectations

Understand that your first home might not check all the boxes. Prioritise your “must-haves” and “nice-to-haves” to make the decision-making process more manageable. Kick FOMO up the butt, and instead focus on having clear criteria that can help you narrow down your search and reduce overwhelm.

And don’t forget – finding the right first home takes time. Be realistic when it comes to a timeline so you don’t feel rushed and frustrated along the way.

2. Create a Budget

Establish a clear budget that includes the property price and additional costs like stamp duty, legal fees, and potential renovations . This will help you narrow down your options and avoid properties that can stretch your finances.

3. Limit Open Home Inspections

While exploring your options is important, too many open home inspections can lead to confusion. Set a limit on the number of properties you’ll visit in a day and the week to prevent overwhelm.

In Australia, property expert, Todd Sloan , suggests that a first homebuyer should look at about 12 open homes because it helps you avoid over-searching or falling into “paralysis by analysis”.

4. Take Breaks

Give yourself permission to take breaks from the property search. Engage in activities that relax and rejuvenate you, allowing you to return to the process with a fresh perspective.

5. Lean on Professionals

Enlist the help of a reputable real estate agent, mortgage broker and conveyancer (that’s us!). They can guide you through the process , offer valuable insights, and alleviate some of the stress. This knowledge is also empowering. Talk to them, or do your own research, about the property market, mortgage options and the legal aspects of buying property. This will boost your confidence and reduce uncertainty.

6. Visualise Your Goals

When you start to feel like buyer fatigue is setting in – take a step back! Remind yourself of the bigger picture – the home you’re working towards. Visualisation can help reignite your excitement and motivation.

7. Practice Patience

Remember that old saying, ‘Rome wasn’t built in a day’? Well, neither is your first home search. Be patient with yourself and the process.

8. Engage with the Community

Connect with fellow first-home buyers and share experiences. Discussing challenges and successes can provide a sense of camaraderie and lessen the feeling of isolation. Look at Facebook for groups you can join, like First Home Buyers Bible Australia .

9. Celebrate Small Wins

Acknowledge and celebrate each step you take towards your property purchase, whether it’s narrowing down your options or getting pre-approved for a mortgage. These small wins can give you the confidence and motivation to keep pursuing your property purchase goal.

Can you conquer your buyer fatigue?

You sure can! Buyer fatigue is a common hurdle that many first-home buyers face. By understanding its causes and implementing practical strategies to combat it, you can navigate the property purchasing journey more confidently and clearly.

Remember, this is a significant investment in your future, and it’s natural to feel a mix of emotions. Stay focused on your goals, seek support when needed, and soon enough, you’ll celebrate the joy of unlocking the door to your home.

If you’re embarking on your first home journey – we’re here to help! Our team have worked with and supported hundreds of first-home buyers who have opened the door to their first home, and we’d love to support you. Call us today on 02 4092 7676 for your free consultation or to take advantage of our free pre-purchase contract review offer.

BUYING A STRATA PROPERTY: MUST-KNOW INFO YOU CAN’T AFFORD TO MISS

Mon, 31 Jul 2023 00:27:00 GMT

Strata properties are increasingly popular, offering a convenient and often more affordable housing option. There are more than 85,000 strata schemes in NSW, and around 50% of Greater Sydney will live in buildings with strata schemes by 2040 . However, before diving into the purchase of a strata property, it’s crucial to understand the legal framework, financial aspects, and potential challenges that may arise. This post explores the key things you need to know about buying a strata property in NSW.

Understanding Strata Title

Strata title is a system of property ownership where individuals own a portion of a property or building, known as a ‘lot,’ and share ownership of common areas such as external walls, driveways, stairways, and gardens.

You’ll own the inside of your individual property, but there can be small differences in what you own depending on the scheme. In most strata schemes, you’ll own:

Internal Walls
Lights
Curtains and Blinds
Carpets
Toilets and baths
Kitchen cupboards and benchtops

Each lot owner is also a member of the owners’ corporation, responsible for managing and maintaining the common property. It’s essential to understand the by-laws and strata scheme regulations in NSW , as they outline the rights and responsibilities of lot owners. Most people will get a copy of the relevant strata by-laws when they get a strata report or ask the real estate agent for a copy. Regardless, the by-laws must be included in the sale contract.

Strata Inspection Report

Before purchasing a strata property, obtaining a strata inspection report is highly recommended. A strata report can help you avoid issues that may not be apparent and save you problems or financial loss in the future.

The strata report is a full review of the Owners Corporation records. It includes details on things like:

Structural or building defects
Quarterly levies
Sinking fund forecasts
Planned or previous major works
Pet policies
Any outstanding debts or disputes
The overall financial health of the owner's corporation.

By thoroughly reviewing this report, you can make an informed decision about the property’s condition and the potential financial obligations you may incur. These reports can vary in cost (approximately $300 – $400), but they’re worth it!

Strata Levies and Capital Works Funds

Strata levies are regular payments made by lot owners to cover the cost of maintaining and managing the common areas and shared facilities. These levies contribute to the administration fund, which covers day-to-day expenses like gardening, cleaning, and general maintenance. Strata levies are set at the annual general meeting (AGM) and paid into ‘funds’. As an owner, you’ll be charged a yearly levy, and if you can’t pay it, the Owners Corporation can take legal action to recover the levies and any interest you owe.

Additionally, a portion of the levies goes into the capital works fund (previously referred to as a ‘sinking fund’) , used for long-term repairs and major renovations. This includes works such as:

Repair works to current common property
Painting or repainting common property
Renewing or replacing common property fittings, such as lobby carpet
Renewing or replacing personal property for the strata scheme, such as pool furniture.

By-laws and Strata Committee

By-laws are rules and regulations that govern the behaviour of lot owners and occupiers within a strata scheme. These by-laws may include guidelines on noise, pet ownership, parking, and the use of common areas. Always review the by-laws before purchasing a strata property to ensure they align with your lifestyle and preferences.

We also recommend that you understand the role and responsibilities of the strata committee (previously referred to as the ‘executive committee’). Lot owners elect the committee, which plays a significant role in managing the strata scheme and helping the owner’s corporation make decisions about the scheme.

You can expect that the strata committee will make decisions for things like :

spending for the day-to-day running of the scheme (e.g. hiring repairers, arranging insurance)
approving applications under a by-law of the scheme (e.g. approving renovation applications)
issuing a notice to comply with a by-law.

Understanding their responsibilities and how decisions are made within the owners’ corporation is important for a harmonious living environment.

Dispute Resolution and Mediation

Living in a strata scheme means sharing decision-making and common spaces with other owners, sometimes leading to disputes. Common issues related to parking, noise, pets, rubbish, smoking or vaping, and breaking other by-laws can arise in a strata property. While in most cases, having a courteous and friendly conversation with the other owner/s will resolve the issue, sometimes it escalates and requires further intervention. That’s why it’s important to be aware of the dispute resolution processes available in NSW.

If chatting with the other owner doesn’t work, there is a free mediation service offered by NSW Fair Trading. You can easily apply for this strata mediation service online . As a last resort, the NSW Civil and Administrative Tribunal (NCAT) provides a platform for mediation and resolution of strata-related conflicts. However, costs can vary, and you should research the possible tribunal fees .

Understanding your rights, obligations, and dispute-resolution mechanisms can help mitigate potential conflicts and ensure a harmonious living environment.

Strata properties can be an excellent investment opportunity

Buying a strata property in New South Wales can be an excellent investment opportunity, offering convenience and a sense of community. And strata properties don’t just exist in big cities; you’ll find many strata scheme properties right here in the Hunter Valley . However, you should be well-informed before making a purchase decision. Understanding the legal framework, financial obligations, and potential challenges associated with strata ownership is essential for a smooth and rewarding lifestyle.

By conducting thorough inspections, reviewing strata reports, and familiarising yourself with the by-laws and dispute resolution mechanisms, you can make an informed decision and enjoy the benefits of owning a strata property in NSW.

Need help to determine if a strata property is suitable for you? Or are you unsure about the strata scheme by-laws or requirements? We’re only a phone call away, and you can take advantage of our free 15-minute consultation. Call our team on 02 4092 7676 or email us at admin@howellslegal.com.au today.

Buying and Selling at the Same Time – A Guide for Homeowners

Wed, 31 May 2023 05:17:00 GMT

Buying and selling at the same time can be an exciting yet daunting experience for homeowners. Balancing the logistics, your finances, and getting the timing right requires careful planning and informed decision-making. In this guide, we explore key considerations to help you successfully navigate the process of selling your current property while buying a new one at the same time.

What is a simultaneous property transaction?

If you’re trying to buy and sell property at the same time by getting the settlement dates as close together as possible – you’re aiming for a simultaneous settlement. Your goal is to settle on the sale of your current home and purchase your new home on the same day.

But before we go further, let’s be clear about one thing – when it comes to buying and selling at the same time – it’s not easy.

There are many moving parts, and these transactions require careful planning, coordination and professional guidance. In fact, according to realestate.com.au , the reality is that settlement on the same day rarely happens.

You’ll need a team of experienced real estate agents, brokers or bankers and an experienced conveyancer/lawyer who can help you navigate the process effectively while at the same time minimising any potential risks. And, whilst you may not achieve a same-day settlement, you still have options to help you minimise the time between buying and selling or selling and buying.

The benefits of buying and selling a house at the same time

Although buying and selling at the same time carries some risks, there are benefits for homeowners who embark on a simultaneous property transaction. When carried out successfully, this can include:

Not having to pay rent while waiting to buy your next home
Not paying a mortgage on two properties at the same time
Moving out of your old house straight into your new one.
Reduced moving costs

How does buying and selling at the same time work?

The critical consideration for simultaneous property transactions is whether you buy or sell first. The approach you select depends on various factors, including your current equity position, the type of loan you’re eligible for, and your specific requirements and preferences.

The HomeLoan Experts recommend that you ask yourself the following questions:

Will it be easy to sell my home quickly?
How long will it take for me to find a new home?
Can my family help me out financially, if need be?
Do I have enough equity to consider a bridging loan?
Do I have a high enough income to consider owning both at the same time without a bridging loan?

The financial aspects of buying and selling at the same time require careful attention and will ultimately determine your approach.

Start by assessing your current property’s equity and determining your affordability for the new purchase. Don’t forget to factor in additional costs such as transfer duty , legal fees, and moving expenses. We recommend you chat with a financial advisor who can help you evaluate your financial situation and explore potential strategies suitable for your individual needs.

Selling your old home first

This is where you will sell your current home before you buy your new home.

The biggest thing to consider when taking this approach is that you’ll likely need to rent temporarily or couch surf with family and friends until you find a new house. This can be tricky for families who need extra room, so crashing with other people isn’t an option. You’ll likely need to find a rental near your workplace and schools, plus moving twice is also inconvenient and costly. Finally, let’s face it, finding a rental in the current market isn’t always smooth sailing.

In the REINSW Vacancy Rate Survey Results for April 2023 , the residential vacancy rate in the Hunter region was only 1.9%. This means that of all the residential rentals available across this region, only 1.9% is not occupied.

Should you still decide to sell your current home first, the major advantage is having the proceeds from your sale readily available in your account to purchase your next home. And who knows, maybe you can negotiate with the new owner to rent back the property until you settle on your new home.

Buying your new home first

Buying a home while still owning your current one isn’t an option for many people. In this approach, you’ll likely pay two mortgages if you settle on the purchase before selling your current home. There’s also a chance that you may not be approved for your new loan because your debt-to-income ratio will be higher with an existing mortgage.

In saying that, buying before selling is an excellent option for higher-income earners with significant equity in their current property. Buying immediately means you’ll avoid moving twice and having to wear the rental costs for temporary accommodation.

Other approaches to consider when buying and selling at the same time

Extended settlement period

An extended settlement period can increase your chances of achieving a simultaneous settlement.

With this approach, both parties must be flexible and open to increasing the settlement period as a condition of sale.

For example, if you sell first, you could include a settlement period of 3-4 months in the sale contract giving you additional time to find and purchase your next home. On the other hand, if you buy first, you will make your offer to the vendor subject to an extended settlement period.

As you can see, both situations require flexibility and finding the party to agree to an extended settlement period may be tricky.

Buy first with a “subject to completion of sale” condition

Another option if you can’t afford to purchase a new home before selling your current one is to make your offer “subject to the completion of sale”. This means that the purchase of your new home is subject to the completion of the sale of your existing home.

Again, this approach can reduce the stress and costs of moving twice because you’ll move straight from your current home into your new one.

The greatest disadvantage is that this offer rarely appeals to vendors, especially when other buyers make offers without conditions. One way you may overcome this is by making a more significant offer. The vendor may be more willing to wait around for your home to sell if it means more cash in their pocket.

Using a bridging loan

A bridging loan is a short-term loan that can help you finance the purchase of your new property while you sell your current one. In this approach, you’ll need funds to ‘bridge’ the gap between receiving the funds from selling your existing home and buying your new one.

With this approach, be aware that you’ll need to pay your existing mortgage AND the repayments on the bridging finance at the same time. Your lender will assess your ability to make these repayments as well as take into account your current home equity, whether the bridging finance will be with or without End Debt, and evidence that your existing home has been sold (i.e. you’ll need to provide a copy of the sale contract.

Get the right help early!

Timing is crucial when undertaking simultaneous property transactions. Work closely with your real estate agent to ensure smooth negotiations and ensure you have plans in place in case of unexpected delays or challenges.

Always (always!) engage a solicitor or conveyancer early – before you list your current home for sale and definitely before you make an offer to purchase the new one. As conveyancers, we ensure that all legal obligations are met and guide you through the intricacies of the selling and buying process. We’re here to protect your interests and help you avoid any legal pitfalls.

Want to know the best bit? We offer a free 15-minute consultation and up to two contract reviews to help answer all your questions and to make sure you’re protected. Call us today on 02 4092 7676 or get in touch via our contact form .

Building Your First Home: 6 Tips for Choosing the Right Builder

Sun, 30 Apr 2023 02:31:00 GMT

Building your first home is an exciting journey that can be both challenging and rewarding. From choosing your block of land, finalising your design and then surviving the construction process, every step gets you closer to turning that key.

It can be a real rollercoaster ride, and the process can be overwhelming for a first home builder. But, with some patience, preparation, and the right builder by your side, your dream of moving into your first home can become a reality.

This post shares six tips for choosing the right builder for your first home build.

Let’s get started!

1. Understand the key stages of building your first home

Understanding the key stages of building a home is essential. Building involves a significant investment of both your time and money, and knowing what to expect at each stage can help you make informed decisions, avoid delays and budget effectively.

In Australia, once you’ve chosen your builder and signed your contract, there are generally six key stages of building a home :

Base Stage
Frame Stage
Lockup/Enclosed Stage
Fixing and Fit-Off
Practical Completion Inspection (PCI)
Handover and Maintenance

Understanding how your first build will progress will help you feel more confident as you navigate your build journey and know what to expect at each stage.

2. Do your research and check credentials

The first step to choosing the right builder is to do your research.

Look for builders in your local area and read reviews online at sites like Product Review or their Google Business Profile.

Look at the star rating but dig deeper and read the context of the review. Some builders collect reviews early on when homeowners are excited about their design and making their colour selections. They’re more likely to leave a glowing review when they’ve just walked out of the colour studio rather than at the end of a lengthy build journey.

You’ll also find Facebook groups dedicated to people who are building with certain builders. If you feel inclined, read up on their experiences and ask questions. Some will have a good build journey; others won’t. Consider this and balance it with your own research when making your final decision.

Don’t forget to check if the builder is licensed and registered with the relevant authorities. In Australia, builders must be registered with the state or territory building authority to carry out any building work. This registration ensures the builder meets minimum standards. If you’re in NSW, you can check their credentials at Verify.Licence .

3. Check the builder’s experience and display homes

Most bigger builders have display homes where you can check the quality of their work. And, if you’re using a smaller builder who doesn’t, there’s no harm in asking them to walk you through one of their completed or nearly completed homes.

Look at the attention to detail, the use of materials, and the overall finish of the homes. You’ll get a good idea of the builder’s capabilities and what you can expect from them.

When it comes to display homes , be mindful that these are often heavily ‘done up’. What we mean by this is that the builder tends to include all the upgrades that generally wouldn’t be included in their standard homes.

For example, a standard inclusion in your building contract is 20mm stone bench tops and 2,500mm ceilings. But. the display home features 40mm stone and 3,000mm ceilings. These upgrades are designed to WOW you – and WOW you they do!

Always ask what’s included and isn’t included as standard inclusions when visiting the display homes.

4. Consider communication

Effective communication is essential in any building project. Choose a builder who communicates effectively and is easy to work with.

During the initial consultation, pay attention to how the builder communicates with you.

Do they listen to your needs and concerns?
Do they explain the building process?
Do they answer your questions clearly?

A good builder will communicate effectively throughout the project, providing updates and seeking your input when necessary. Be mindful that for some builders, the person who sells you the build package may not be the person you’re communicating with during the design and construction phase.

Always clarify the process and who you’ll be dealing with. Again, research is essential, so refer to the reviews and talk to others who have built with them.

5. The cost of building your first home

Cost is a HUGE factor for first home builders, and it’s easy to get confused about what’s included, what’s not included, interim costs and what other costs can crop up that you weren’t expecting.

Choose a builder who provides a detailed and transparent quote. The quote should include all the costs involved in the project, including materials, labour, and any additional charges. Be wary of builders who provide vague quotes or do not provide a breakdown of costs.

Don’t be fooled by clever marketing campaigns advertising the ‘base price’. This price can vary significantly from the final build cost.

The base price is the standard build cost and often doesn’t include any upgrades. For example, the base price for some builders includes old-fashioned batten lights in all rooms. You’ll likely pay to upgrade to LED lights throughout the home. It also doesn’t consider any additional costs required to upgrade your slab if your land is classified as needing it. Slab upgrades and site costs can cost thousands, which can hurt when you weren’t expecting it.

Don’t be surprised if your final build cost is around $100-$200k or more than the base price.

6. Always read your build contract

Like – always! We can’t emphasise this enough.

Residential building work worth over $20,000 in NSW requires an extensive home building contract. And, while we know that sifting through every page can seem like a waste of time, it’s so important. You’ll understand what’s included, what’s not included, applicable warranties, the contract price (and warnings if the price is subject to change), timeframes (like how long they have to start on site), a progress payment schedule, termination clauses, and so much more.

Only sign the contract once you have read it or sought individual advice from a professional to ensure that your rights are covered.

If you’re local to the Hunter Valley region , we recommend chatting with Kerri-Ann from Carnelian Projects. Kerri-Ann’s Tender Health Checks take the stress out of signing on the dotted line by helping you uncover terms and exclusions that might disguise potential extra costs throughout your build – like additional piering, soil removal or bushfire requirements. Contact Kerri-Ann on 0402 107 194 or sales@carnelianprojects.com.au

Are you ready to say ‘yes’ to building your first home?

If you follow the tips above, you’re on the right track! It’s fair to say that most build journeys aren’t perfect – at least not in our experience. But, it will be so much easier if you do your research, understand the process and choose a reputable builder who communicates regularly and is transparent regarding their costs. And, when it’s all said and done, it will all feel worth it when you walk through the front door of your brand new home.

And remember, we’re here to help. If you’ve got questions about anything in this post or the conveyancing process , chat with us on 02 4092 7676 or email us at admin@howellslegal.com.au

Real Estate Wise Up: Breaking Down Property Industry Jargon

Thu, 30 Mar 2023 04:42:00 GMT

The property industry is full of technical terms and jargon, making it difficult for people new to the industry to understand. Whether you’re dipping your toe in as a first home buyer, considering real estate investment, or just someone interested in the property market, it’s important to be familiar with some of the most common industry terms and their meanings.

In this blog post, we’re breaking down property industry jargon so you’ll feel confident navigating your property journey.

Property Appraisal

A property appraisal is an assessment of the value of a property in the current market. A licensed real estate agent typically conducts appraisals, which are used to determine the fair market value of a property. This value is important when buying or selling a property, as it can influence the price that is negotiated.

According to local agent finder , an appraisal takes into account a range of considerations, such as:

The size of your property
The floor plan
The property’s condition, such as street appeal, structure and features
The local area and location, including access to essential amenities like schools, shopping and public transport
School zone boundaries
Current local property market conditions and recent sales data
Wider real estate market trends
The time of year you’re looking to sell your property, and
The current economic environment, including interest rates.

Most real estate agents offer free property appraisals.

Equity

Equity is the difference between the value of your property and the amount you still owe on your home loan. Many homeowners borrow against the equity to buy additional investment properties, undertake renovations or achieve other goals. Here’s an example of how equity works:

Joan’s home is valued at $750,000.

We subtract the current home loan balance from the total value to calculate the equity. Her home loan is $400,000, which means she has equity of $350,000.

Banks are generally ok to lend up to 80% of the value of your home – referred to as useable equity. In the example above, 80% of $750,000 is $600,000, so the usable equity is $200,000.

We recommend talking to your bank or broker about whether you can utilise equity for your goals.

Loan-to-value ratio (LVR)

The loan-to-value ratio is important because it can impact borrowing capacity. LVR is the amount you’re borrowing, represented as a percentage of the value of the property you’re buying. It’s calculated by dividing the mortgage amount by the property’s appraised value.

For example, if the property you’ve got eyes on is priced at $600,000 and you need to borrow $350,000, the loan-to-value ratio is 58%. Here’s how to calculate it:

($350,000 loan divided by $600,000 property value) x 100 = 58% LVR.

It’s essential to note LVR plays a significant role when determining if your home loan application is approved. The lower your LVR is the less risk for your lender. If your loan-to-value ratio is over 80% of the property value, your loan is a high risk, and you may need Lender’s Mortgage Insurance.

Lenders Mortgage Insurance

There’s no point going further until we break down Lender’s Mortgage Insurance (LMI). In the point above, we mentioned how a LVR above 80% presents a high risk to your lender. And many first-home buyers who haven’t been able to save a greater than 20% deposit find themselves in this situation. But don’t despair – it doesn’t necessarily mean your dream home is years away.

According to the Insurance Council Australia:

Lenders Mortgage Insurance (LMI) is insurance that a lender takes out to insure itself against the risk of not recovering the outstanding loan balance if you, the borrower, are unable to meet your loan payments and the property is sold for less than the outstanding loan balance.

While LMI protects your lender should you default on your home loan, ultimately, you’ll have to bear the insurance cost. You won’t have to arrange the LMI yourself; they’ll do it for you. The insurance cost depends on how much you borrow, who your lender is and the size of the deposit you can contribute.

Principal

The principal is the amount of money borrowed in a mortgage. It doesn’t include interest or any other fees associated with the loan itself.

In most cases, you’ll make home loan repayments of both principal and interest. So, you’ll be paying the part you borrowed plus any interest you owe over the life of the loan.

In some circumstances, like when you’re building a home, you’ll borrow money against a construction loan; you may only need to pay interest (not principal) until your loan is fully drawn down (all payments have been made to your builder). At this point, your loan will likely change over to a principal and interest loan.

Amortisation Period

Oh, this one’s a goody! Try saying it as fast three times – it’s a real tongue twister!

Now, what is it? Basically, it’s the length of time it would take to pay off your mortgage in full. The timeframe is based on an estimate of the interest rate for your current term.

If you want to calculate the balance that will be owed on your home loan after a certain period of time, try this amortisation calculator from Mortgage Choice

Transfer Duty (previously Stamp Duty in NSW)

If you’re buying a property, you’ll want to factor in the cost of transfer duty .

Transfer duty is a tax on the value of the property you buy. In NSW, the tax is collected for the state government by Revenue NSW and must be paid by the buyer within three months of the purchase.

The amount you pay for transfer duty will depend on the market value of the property you’re buying. The higher the value, the more transfer duty you must pay. Some exemptions exist, and you may also be eligible for transfer duty concessions as a first home buyer in NSW under the First Home Buyers Assistance Scheme.

Certificate of Title

A Certificate of Title is a legal document proving property ownership. The title shows a title reference, name(s) of registered owners and any registered dealings, such as any mortgage details over a property.
Don’t expect to get an actual paper-based certificate in NSW. As of the 11th of October 2021, paper Certificates of Title were abolished, and a new land titles system was introduced in NSW to move away from paper-based processes.

Preparing for Auction Day: A Home Buyer’s Guide

Mon, 27 Feb 2023 04:16:00 GMT

You’ve found the house of your dreams and can imagine living inside those walls. But it’s for sale by auction, and suddenly, you feel overwhelmed by the process. How does an auction even work? How will you bid on auction day? Can someone else bid for you? Many people find auction day to be daunting, fast-paced and overwhelming. But don’t worry; you’re not alone! In this post, we’ll help you familiarise yourself with a property auction and share tips on preparing and bidding for your dream home.

What is a property auction?

An auction is a public sale where potential buyers gather to bid for the property. Auctioneers licensed by the relevant state body will conduct the auction – giving all parties peace of mind that they will act honestly when conducting the sale.

On the day of the auction, the sellers (vendors) must set a reserve price, the minimum sale price they’re willing to accept . The price is kept confidential between the vendor and auctioneer – so, as a buyer, you won’t know the reserve price. Once the price has been met or exceeded the reserve price and there are no more bids, the auctioneer announces that the property is sold to the highest bidder, and the hammer falls.

Many sellers choose auctions over private treaty sales because they’re quicker. When you’ve got a property in high demand, the competitiveness and determination of the buyers to win may help sellers fetch a higher price.

However, auctions can be stressful, and there’s never a guarantee that the sellers will meet the reserve price or sell for a higher price than if they were to sell via private treaty .

Now that you know what an auction is, let’s get you ready to bid!

Start with your finances

There is no cooling-off period in NSW if you buy a property at auction. This means that if you’re the highest bidder on the day, you cannot back out as soon as that hammer falls.

That’s why you must ensure your finances are in order before you head to auction day.

Here’s what you’ll need:

Your deposit (generally 10 – 20% of the purchase price) ready to go
Your written home loan approval from your lender. We recommend ensuring that your approval is either ‘unconditional’ or is a ‘pre-approval’ with conditions capable of being met shortly after the auction day.

Don’t forget to tell your bank or broker you intend to bid at the auction so they can guide you appropriately.

Buying property without the above is risky business. If the property is sold to you on auction day and you can’t pay, your deposit will be forfeited to the vendor.

Contact your solicitor or conveyancer

A solicitor or conveyancer is a professional who deals with the legal side of buying and selling property. Many people make the mistake of engaging their conveyancer after they’ve made an offer and the sale contract is exchanged. This is too late! Imagine buying a property with restrictions like an easement preventing you from building your dream pool!

Instead, the earlier you contact your conveyancer, the better! They’ll undertake all the necessary title and property searches and conduct a pre-purchase review of the sale contract to ensure there are no nasty surprises if you’re the lucky buyer on the day.

Inspect the property

You should attend as many inspections of the property as possible before it is sold at auction. If you’re buying interstate, we recommend seeking the help of a family member or friend to inspect it on your behalf. Better yet, consider using a buyer’s agent who can help you in several ways, including inspecting the property and even bidding for you at the auction.

A buyer’s agent must hold a real estate agent’s license in the relevant state or have a Certificate of Registration, which allows them to work under the direction of a licensed agent. To help you determine if you should engage the services of a buyers agent, we recommend checking out Using a real estate agent to buy property on the NSW Fair Trading website. Here you’ll find a list of services they provide, the benefits of using a buyer’s agent and the questions you should ask to choose the right agent for you and your circumstances.

Organise building and pest

Just because you’re buying a property at auction doesn’t mean you should skip a building and pest inspection. It’s quite the opposite. Remember, there’s no backing out if you’re the highest bidder. You’ll want to ensure the property is in good condition without termites.

Whenever possible, get this independent building and pest inspection completed before auction day to ensure you’re protected and understand the condition of the property you’ll be bidding on.

A combined building, pest, and electrical inspection in the Hunter Valley will, on average, cost you between $460-$900, depending on the property size. But it’s worth it!

Familiarise yourself with the auction process

Going to a house auction can be intimidating and overwhelming. Be prepared for what’s to come by understanding how auction day will unfold.

Here’s a general rundown of what you can expect on auction day:

A final inspection of the property
Register with the auctioneer
The auctioneer gives their opening address relating to the auction process and any specifications regarding the property
Bidding starts
The property is announced as ‘on the market’ once the reserve price set by the vendors has passed
Bidding continues until it slows or comes to an end, in which case the auctioneer will confirm the most recent bid by shouting, ‘Going once…..twice, three times’
The auctioneer will drop the hammer and yell ‘sold!’ then confirm the successful buyer
The property is sold! The sale is then finalised between the buyer and the real estate agent.

The best way to feel more confident at your auction is to attend auctions prior. You’ll come to see how it all unfolds and familiarise yourself with what auction jargon like ‘reserve’ and ‘vendor bid’ means.

Register to bid

Different rules in each state and territory apply for registering to bid at an auction. In NSW, you must provide identification, including a driver’s licence and a letter of authority if you’re bidding on behalf of someone else. Check the rules for your state or territory by asking the agent or your solicitor/conveyancer.

Registration generally starts 30 mins before the auction at the auction rooms or property. But you can also register with the selling agent before the auction – like when you inspect the property. If you do pre-register, make sure to take proof of identity on the day.

The agent will collect your name, address and ID number in the Bidders Record and give you your bidders number. You’ll need to display this number when you bid.

If you arrive at an auction late and bidding has already started, you’ll need to quickly find an agent and register or show your ID if you’ve pre-registered. You cannot bid until you have a bidders number.

For more information on the auction or bidding process, visit the Fair Trading NSW website .

Know your price limit

Knowing your price limit will help you stay calm during the auction process.

The excitement and adrenaline can cause some bidders to get carried away with bidding, so knowing that you have a maximum bid amount will put things into perspective and keep you on track. If borrowing money from a lender, you’ll have a clear idea of how much you can spend. However, LJ Hooker recommends that you:

Play your cards close to your chest

You may be tempted to tell other bidders what your limit is or how you plan on playing the auction, but this is a huge mistake. These things should be kept close to your chest, as they can give away crucial information about yourself and your goal. You don’t want others to know when you’ll need to stop bidding because they may use that information to outbid you. Imagine losing your dream home because they outbid you by $1000!

Consider using a buyer’s agent

We’ve already mentioned buyer’s agents – but it’s worth bringing this up again.

A buyer’s agent can help you find a property and then guide you through the process of purchasing it. A good buyer’s agent will be familiar with your local areas and know which ones will likely be more affordable or suit your needs. They also have access to listings that may not be available online, so they can ensure that nothing slips through the cracks.

A simple google search will help you find buyer’s agents in your local area or the area you wish to buy in.

Being prepared can make it easier for you – so get ready now!

Preparing for auction day can be a lot of work, but it will be worth it. We hope these insights into what it’s like to be a buyer at auction help you feel more confident and ready to bid for your dream home.

And remember, if you’re looking to buy a property at auction, engage a conveyancer earlier. Here at Howells & Co Legal & Conveyancing , we want to ensure everything goes smoothly before and on the auction day. Call us on 02 4092 7676 for your free 15-minute consultation and fixed-fee quote .

Savvy Ways to Save Money When Moving House

Thu, 26 Jan 2023 20:54:00 GMT

Whether you’ve just bought or sold your house, moving is not a cheap experience. And it doesn’t matter if you’re moving because of job transfers, family changes or other circumstances; finding the money to pay for everything that comes with the move can be stressful. Did you know that some things won’t cost you a cent and could save money when moving house? Here are our top tips for saving money when moving house.

Create a moving budget

It can be easy to overlook the costs involved in moving house, but it’s essential that you consider them before you start packing. The last thing you want is to get into debt because of a move.

As soon as you know, you’re moving home; it’s time to get that pen and paper (or spreadsheet if you’re the techy kind) out. Do your research and jot down all the costs involved in a move. These include:

Removalists or other moving home services
Truck, trailer or van hire (don’t forget fuel or bond)
Transferring utilities
Cleaning services (especially if you’re currently renting)
Moving materials (boxes, tape, bubble wrap or packing paper)
Any new furniture or appliances you’ll need
Storage costs (if required)
Temporary accommodation (if required)
Food (takeaway or restocking the pantry.

Once you have everything listed, you’re in an excellent position to determine what it will cost and where to look for savings.

Sell things you don’t need before you move home

Before you move, getting rid of the things you don’t need anymore is a good idea. Now is the perfect time to start purging if your house is full of stuff you no longer need or use. Don’t throw anything away immediately. Instead, put all your “to sell” items in boxes or bags and label them with a price before listing them online on sites like Gumtree , eBay or Facebook Marketplace . You will get little money if you just throw stuff out!

Hold a garage sale! People will pay between $1-$10 for old books depending on their condition and popularity level; plus, tons of other things like toys and electronics can easily be sold.

Ask for a helping hand

Moving companies generally charge you a fee for packing your belongings. Where you can, ask friends and family to help with this task, it’s a great way to save money!

If you don’t have anyone who can or is available to help out, there are plenty of other options available online that can save you money when moving house. Facebook Marketplace or your local online groups are great ways for people in your community to get rid of unwanted items like cardboard boxes and packing materials – ready for you to snap up and use at little to no cost!

Don’t forget cleaning! Hiring a cleaning service is an easy (and, let’s face it, tempting) way to get your house spick and span before the move date – but it comes with a price. Save money by cleaning the house yourself and let your friends and family know how much you’d appreciate their help.

Find cheap alternatives

Removalists can be expensive, but there are other options out there. Get your Google on and explore smaller companies in your local area or put your feelers out to any friends and family with utes, trailers or trucks. While you’re at it, ask them to help you pack, load/unload. A little bit of bribery goes a long way, so don’t forget to offer food and refreshments.

Other alternatives to removalists are van and trailer companies like Move Yourself or U-Haul . These companies use local service stations for pick up and drop off, which means you could pick up your hire vehicle close to your current home and drop it off near where you’re moving. Booking the type and size you need is generally straightforward and done online in advance, or inside the service station at a dedicated kiosk. And, if you’re all out of friends and family to help, try Airtasker!

Don’t resort to takeaway

Anyone who has ever moved home will tell you it’s exhausting! You’ll have little time on your hands, and you’ll quickly feel tired. Have a pre-prepared snack box ready to go. Pack a range of healthy snack options (and a couple of treats!) to give you energy and a boost when needed.

If you want to save the bucks, especially in that first week, don’t resort to takeaway – that’s no way to save money when moving house. Start by cooking your first night’s meal in advance. Make sure you’ve labelled a box with your main cooking pots, pans and utensils, so they’re easily accessible in those first few days.

Don’t go overboard with the meals; stick to easy recipes that don’t need a fully stocked pantry – try soups, casseroles, basic homemade pizzas, pasta and good old toasties! You might find some quick recipes in Taste’s 101 extremely lazy dinners for when you’re out of ideas.

Cut the costs and enjoy your move

Moving to a new house is an exciting time, but it can also be expensive. With these tips, you can cut down on some of the costs and settle into your new home without breaking the bank.

Want more useful tips like these? Check out our other blog posts ! We post something new monthly, so don’t forget to add us to your bookmarks bar. Or if you’re thinking about selling or buying a home, get in touch with our team – we offer no obligation, fixed fee quotes with no hidden and costly surprises (another savvy way to save money!). Get your quote today !

4 Ways Technology and Electronic Conveyancing Make It Easier for Buyers and Sellers

Wed, 21 Dec 2022 10:11:00 GMT

Buying or selling a home is one of the biggest financial decisions you’ll ever make. Thanks to all the paperwork and legal requirements, it’s also one of the most stressful. Fortunately, technology and electronic conveyancing make buying and selling houses easier.

Skip the paper

Using technology to buy or sell a house can save time and money. You’ll avoid the hassle of paperwork, printing and scanning, and ducking to the post office to send a fax. In most cases, there’s no need for paper-based documents – everything happens online. Documents are easily locatable and accessible by all parties, and it’s significantly more beneficial to our environment.

From engaging your real estate agent and applying for your home loan to identity checks and completing settlement, technology is making buying and selling quicker and easier.

Digital signatures

Digital signatures are legally binding electronic signatures, and they’re used in many aspects of our daily lives. In real estate, digital signatures are added to binding contracts and agreements, like contracts for sale, agency agreements and residential tenancy agreements.

In a nutshell: digital signatures do what physical signatures do—they serve as an assurance that the person signing the document is who they say they are. However, it is important to note that a digital signature differs from an electronic signature.

“A digital signature is a type of electronic signature, however it’s much more sophisticated and secure,” Toby Blyth, Partner at law firm Colin Biggers and Paisley, said. “Whereas an electronic signature can be as simple as using your finger to sign your name on a tablet or iPad, a digital signature has special encryption to ensure that signatures are legitimate and documents are not altered after being signed.

Source: Real Estate Institute of NSW

At Oliver & Co., we use Secure Exchange , DocuSign , and other systems that have digital signatures built into them, making it a safe, secure and faster experience for our clients.

Buying or selling a home with electronic conveyancing

Having to deal with paperwork is enough to make any buyer or seller anxious. And if you add in the stress of buying or selling a home, it can be downright overwhelming. Luckily, technology has made this process simpler and more efficient.

Electronic conveyancing is one of the most significant innovations in real estate technology today—and it makes your life easier by cutting down on time, costs and paperwork. It also makes things faster for everyone involved because it’s done remotely from anywhere in the world using a secure portal that gives buyers and sellers access to all relevant information about their transaction at any time during the process.

Electronic conveyancing or e-conveyancing allows the seller, buyer, respective agents, banks and legal representatives to exchange documents electronically. When it comes to settlement day, it also means that there’s no need for all parties to come together in person. All the required documents are sent over the internet, so there is no need for hard copies of anything to be signed. This saves time and money because the parties don’t have to print, sign and scan documents, use courier services or wait at a fax machine to send over signatures. Electronic settlements also help reduce errors from being made on paper documents, which can result in title problems later on in your home ownership journey.

How electronic conveyancing works

E-Conveyancing for buying or selling a home is conducted using an online platform like PEXA or Sympli Australia .
The platform creates a virtual workspace or room that your lawyers, conveyancer and bank representative will access as part of the settlement process.
Within the workspace, all parties can prepare, sign and lodge documents for registration with the state land registry or title office.
As a buyer or seller, you won’t have direct access to the platform, but you will need to authorise your lawyer or conveyancer to access it (and sign documents) on your behalf.
Once all documents are signed, the purchase price balance is paid, and the settlement money will is disbursed.

The benefits of electronic settlement

It saves time and is convenient because all documents are handled online instead of having them physically signed by hand and returned to the relevant party.
There are faster turnaround times because it removes many of the manual processes previously undertaken, including reducing the time needed to sign and return documents.
It helps prevent errors from happening due to miscommunication between buyers and sellers.
Buyers and sellers can choose from a greater range of lawyers and conveyancers, like those that work outside their local area or remotely.

Paper settlements can take weeks with many manual steps involved. Electronic conveyancing means less stress for buyers and sellers – and we all know how important that is when you’re keen to settle into your new home!

Stay up-to-date with apps

The development of apps for the real estate process is exciting. You’re familiar with the realestate.com.au or domain.com.au apps to search for property listings, look for open homes or track your property’s estimated value. There are also bank and broker apps to help you lodge documents for financial preapproval and loan applications. But, if there’s one app we’re happy to talk about, it’s a conveyancing app. And we’re more than a little excited to share this as we launch our own Oliver & Co. Conveyancing App.

The conveyancing process is complex, with many moving parts, parties and complicated legal requirements. It’s little wonder that in the past, buyers and sellers have felt left out of the process or not sure of the steps involved. But conveyancing apps can change all that by making the process smoother and more accessible while at the same time ensuring you’re up-to-date and in the loop at every step of the process.

The Oliver & Co. Conveyancing app is easily downloaded from your App Store or Google Play store. Once you’ve requested us to act for you, you’ll receive access to the app and all the benefits that go with it, like:

Digital ID verification
Real-time updates
The ability to track your matter and follow along as key milestones are reached
SMS, email and push notifications, so you never miss a message
In-app chat with our friendly team.

The conveyancing app means you can say goodbye to playing phone tag or waiting for emails to land in your inbox. Instead, you can open your app and instantly know where you’re at in the conveyancing process.

Making your life and move easier

Buying and selling a house can be a stressful and overwhelming experience, but it can be made easier with technology. By using digital signatures on contracts, you can sign them at any time, from anywhere and not have to worry about finding someone to witness your signature in person. It also means no more paper copies of documents sitting around for days or weeks between each party involved. Electronic conveyancing is safe, secure and convenient to use, with the bonus of ensuring accurate records are maintained. If you’d like to know more about how we use technology to make your buying and selling journey less stressful and more enjoyable, give our friendly team a call on 02 4092 7676 to book your free 15-minute phone consultation . We’d love to hear from you.

5 Ways to Emotionally Prepare for Selling Your House

Tue, 29 Nov 2022 00:36:00 GMT

Buying and selling property is one of life’s greatest stresses. When you’re emotionally invested in selling your house, it only increases the pressure.

As conveyancers, we witness this stress in our clients every week, and we’ve talked to hundreds, if not thousands, of homeowners about the emotions that come with selling their homes.

We want to help you prepare for selling your house with five ways you can keep your emotions in check:

Setting reasonable expectations
Choosing your support crew
Not taking low offers or criticism personally
Focusing on the positives of your next move
Being patient and staying positive

Let’s dive in and find out more.

Setting Reasonable Expectations

When selling your house, it’s important to set realistic expectations. The property market is unpredictable, and it’s common for sellers to price their property too high or expect too much from buyers.

In Australia, we’re coming off a period where we saw unprecedented sale prices for property. Referred to by some as the ‘Covid Price Boom ’, the pandemic saw sellers achieve record-breaking prices, with some homeowners making a median profit gain of $270,000 as overwhelming demand supercharged the market.
Whether or not the ‘boom’ is over is a hotly debated topic, and according to the latest CoreLogic data, most cities and regions are falling or remaining relatively flat. But, we recognise that for some sellers, you might feel regret or disappointment for not selling during COVID, and this is a perfectly human reaction. Experience these feelings, but don’t dwell. Instead, research, talk to your agent, and evaluate your circumstances. And don’t forget, we’re all buying and selling in the same market. This means getting into your next home or even upsizing might be more achievable in today’s market.

Choosing Your Support Crew When Selling Your House

As with anything in life, selling your home is easier when you’ve got the right people supporting you. When selling your home, you’ll need to rely on people you trust – like your real estate agent and conveyancer.

Do your research – look at reviews, ask for recommendations and pick up the phone to talk to them yourself
Go for people who know and understand your local market
Put them to the test by asking them lots of questions
Trust your gut – you must feel comfortable and confident with your choice and know they’ve got your back.

Don’t forget your family and friends! Selling is emotional. You might have grown up in the house or raised your children there, so it can be difficult to let go. Lean on a close family member or friend to help you work through those emotions. Ask them to help you remain rational as you navigate the sale process.

Not Taking Low Offers or Criticism Personally

It’s hard not to take low offers or criticism personally when you’re selling your house. You’ve likely experienced and celebrated milestones under that roof, raised a family, and you’ve poured your heart and soul into making it ‘yours’. The walls are filled with happy memories, and everything there is…well, you.

Buyers don’t carry that emotion. They’re looking to negotiate the best purchase price possible, and unfortunately, at times, that means you’ll get offers that are so low they feel offensive. You might also experience sellers who don’t like your style and can’t see past, or aren’t interested in, the work involved in making it their own. That’s ok! What’s important here is that you don’t take it personally.

Lowball offers are frustrating, but they can still turn into a sale. Stay cool, calm and collected. Remember, you’re in control and don’t have to accept any offer you don’t want to.

Focusing on the Positives of Your Next Move

It’s hard to let go of a home or a place you’ve lived in for a long time. We get it! But if you’re feeling emotional about selling your house and moving on, try keeping your mind focused on the positives of your next move.

You might be excited to have more space and less clutter, or you’re excited to move to a new area. Whatever it is, think about what excites you most about your upcoming move. Even if it’s not something tangible like a new home—maybe it’s just the idea of having more time to spend with friends and family. It doesn’t matter what it is; just keep that positive thought in mind when things start to feel overwhelming.

Being Patient and Kind To Yourself

Sometimes, selling a house can feel like you’re grieving. You might feel sad about leaving the place you’ve called home for years and the memories you’ve made there. But it’s important to take care of yourself during this time. Reminisce in each room and remember all the wonderful times you’ve had in that space. It could be as simple as remembering the first time you moved in or even just the first time one of your pets or children did something funny there.

Try journaling or writing down some of your favourite moments or memories from living there. Or, treat yourself to something you love doing (a massage or a new haircut, perhaps?). This will help you relax and ease some of the pain associated with selling a house. Be patient and kind to yourself – selling isn’t easy.

Selling your house? It’s time to start something new!

Selling your house is hard and emotional, but consider it your chance to start over and create something new. That’s not to say you’re starting over from scratch; selling your home is just another step forward. Honour the memories you’ve made but try your best to remove the emotion from selling your home so you can negotiate with a clear head and get the best outcome for your sale.

We hope you’ve found these tips for selling your home useful. If you are in the process of selling or getting ready to sell, we’d love to support your journey. We gladly take the time to know and understand our client’s needs, so we can remove some of the stress and overwhelm from selling your home.

Call us on 02 4092 7676 or email us at admin@howellslegal.com.au for your free 15-minute consultation. You can also request a free conveyancing quote online.

We look forward to chatting with you.

Breast Cancer Awareness Month: Our Stories

Thu, 20 Oct 2022 00:00:00 GMT

October is Breast Cancer Awareness Month, a cause we hold dear to our hearts. Here’s why:

For the month of October, we’re raising awareness and funds for the National Breast Cancer Foundation and both Kendall and Kelly have generously agreed to share their stories.

Kendall

I was doing a routine breast exam and noticed a small lump in my left breast. This was a couple of days before Christmas, and I couldn’t bring myself to say anything because I wanted everyone to have a nice Christmas.

After Christmas, I made an appointment with my Doctor, and she sent me for a mammogram and ultrasound. I had to wait a week before I would get in. The technician started the ultrasound on my left breast. She found the lump I felt. I was looking at the screen and saw it as well. She then proceeded to finish doing the rest of the breast. I was still looking at the screen, and I saw it just as she did, there was another one. At this stage, I felt like I was going to be sick. She progressed further and again there was another one. By this stage, I felt like I was going to pass out.

The technician finished the ultrasound, and I knew things weren’t good. She got the doctor to come in and talk to me about having biopsies.

I made an appointment to have the biopsies done. Because there were three lesions, I had to have 3 appointments which meant a lot of juggling and waiting about a week again. I felt numb.

With the biopsies done, and again found myself waiting for the report to come in.

I went to the doctor to get the results. Two out of my three umps were malignant (one stage 1 and the other stage 2) – they had caught it early. I then went into fight mode.

Ok, what do we have to do next?
Will I have to have a mastectomy?
Will I have to have Chemo?
Will I have to have Radiation?

I had to see a surgeon, so I made the first available appointment I could get. I went to the surgeon who advised me that I didn’t need a mastectomy but would need to have both of the tumours surgically removed. I also had to go and have dye injected into my breast to see which lymph nodes may be affected. Two lymph nodes could be affected so I would have to have those removed as well.

Finally, it was time for surgery. There were a couple of complications, and the surgery took longer than expected. My surgeon said that everything went well, that they were able to remove the lumps with good margins, and also they were able to remove the lymph nodes.

I got the results a week later.

Cancer had moved into one of my lymph nodes; luckily it was only a microscopic amount. The other lymph was clear, and all cancer had been removed from the rest of my breast.

Next, I was off to see an Oncologist. It was decided that with my other health issues chemotherapy would be detrimental to me, so I started radiation. It was every day, Monday to Friday for 4 weeks at the Mater hospital in Waratah, a 45-minute drive each way. I went to work in the morning and left at either 2 pm-3 pm to drive to radiation. I am lucky to have some wonderful friends who would drive me down and back so that I wasn’t too tired

Everything was going well with the radiation until the third week when I started to get burns under my arm. I had to have a couple of weeks off work due to the burns, and I nearly had to be hospitalised. As a result, it was decided to finish my radiation early.

I have now been cancer free for over 18 months and have got the all-clear at my 12-month mammogram and ultrasound. During all of this, I decided that I would get DNA testing done as there is breast cancer in the family. I come back showing that I have the ATM gene .

Kelly

I went for my usual 2-year mammogram on the breast-scanning bus. Shortly after, I received a call letting me know I had to attend the Breast Cancer Clinic in Newcastle as they had found an abnormality.

I went for the scan and then had a biopsy the same day and was advised that I had stage 2 breast cancer.

It was all a shock to me as I had no inclination that there was anything wrong, I felt no lumps, and there was no noticeable change in my breast.

I was then booked in to see a surgeon and had surgery to remove the two lumps they found and then had a course of radiation.

I am still recovering from it all and to tell the truth; I am still a bit dumbfounded about it all as I had no idea there was anything wrong.

How You Can Help

Check Your Breasts

First and foremost, check your breasts. That goes for all you men as well! In Australia, around 1 in 600 men are diagnosed with breast cancer in their lifetime .

Raise Breast Cancer Awareness

Talk to your girlfriends, your work colleagues, and your family about breast cancer and the importance of regular breast checks. Set a calendar reminder to check your breasts every month. You should look/feel for any changes in breast tissue, like:

changes in size
feeling a palpable lump
dimpling or puckering of the breast
inversion of the nipple
redness or scaliness of the breast skin
redness or scaliness of the nipple/areola area, or
discharge of secretions from the nipple.

Make a Donation

A donation of any size – counts! Your generosity helps with prevention, detection, new and improved treatments, and helping breast cancer survivors maintain a positive quality of life. Make your donation today . You can also make a donation to the McGrath Foundation to help Breast Care Nurses provide free support to patients and their families experiencing breast cancer.

How To Budget For Your First Home In 5 Simple Steps

Mon, 26 Sep 2022 03:00:00 GMT

With interest rates and the cost of living soaring, saving for your first home can be challenging. But, if you’re determined to buy, we’re determined to help you get into your first home sooner. Here’s how to budget for your first home in 5 simple steps.

1. Prioritise Your Spending

Firstly, prioritise your spending. Cut back on unnecessary expenses such as takeaways and alcohol. You don’t have to give it up (if you don’t want to), but limiting your weekly or monthly spending can yield big results for your bank account.

It also helps to set a budget for yourself for non-essential expenses and give more thought to your weekly food shop. Canstar reported that the price of food rose by 4.3 % in the year to March 2022.

They go on to give the following tips to help you save money on groceries:

Make a weekly meal plan
Make meals from scratch
Avoid recipes that need special ingredients
Always make extras
Stick to your shopping list – always!
Use what’s in your pantry, fridge and freezer to avoid buying extras
Be wary of product placement
Consider supermarket rewards programs ( Flybuys , Everyday Rewards etc.).
Familiarise yourself with prices
Look for discounts and bargains (who doesn’t love a bargain?!)
Keep your eyes peeled for end-of-day reductions
Buy ugly food ( Odd Bunch at Woolworths or I’m Perfect at coles)
Shop beyond the big supermarkets
Don’t be too brand loyal

Don’t forget to factor in the cost of insurance, utilities and maintenance when prioritising your cash.

2. Take Control of Your Debt

In our early days, we often don’t think twice about how debt can impact our chances of being first home buyers – until it’s too late. It’s easy to forget or fall behind on loan repayments, but a bad credit score can be your make-it-or-break-it moment when buying a house.

Grab all your statements and start by calculating how much debt you have. Knowing this will make it much easier to factor repayments into your budget, and having a goal can be a big motivator.

Stop paying unnecessary extensions or interest only on your monthly credit cards and loans, and instead focus on paying them off as quickly as possible. Research the different types of credit cards, loans and interest rates, and take advantage of incentives from lenders. Your aim is to pay off your most expensive debt first.

If you’re in real financial trouble, the National Debt Helpline website can be a big help, or you can even take advantage of their financial counselling service by calling 1800 007 007 or using their Live Chat feature.

3. Cut down on Unnecessary Luxuries

Again, we’re using the word ‘cut down’, not ‘give up’ because for many people, giving up ALL those little luxuries can be demotivating and increase your chances of not achieving your savings goals. If you tend to overspend on things you don’t need, reducing your spending here can help you save for your first home faster.

Work out how much money you spend each month on:

Takeaway and eating out
Entertainment and activities
Streaming services
Buy now, pay later purchases
Fashion items such as clothing, footwear and accessories
Gifts for friends and family
Mobile phone data
Subscriptions

Next, consider how much of this you ‘really need’. Do you really need to buy that new handbag? Do you really need Netflix , Binge , Disney+ and Prime Video ? Can you get away with fewer options or use the free streaming services? Instead of going out for Taco Tuesday each week, can you make Tacos at home (here are 21 taco recipes to get you started)?

4. Make a Plan to Budget for Your First Home

What’s that old saying?

If you fail to plan, you are planning to fail – Benjamin Franklin.

How many times have you heard that one? But, when saving a deposit for your first home – make a plan! You’ll need to work out how much money you’ll need to buy a home, and don’t forget to factor in other costs like stamp duty and conveyancing fees .

Next, start a savings and expenditure spreadsheet and determine how much you need to save each month to achieve your first home savings goal. Moneysmart.gov.au have a brilliant and FREE budget planner that you can use to work out where your money is going. Simply input the information you’ve already gathered from steps 1 – 3 above. Then, play around with what your budget would look like if you were to cut costs. From there, you’ll have a better idea of how much money you can afford to save each month towards your first house deposit.

Finally, draw up a plan of action, pop it somewhere visible and stick to it.

5. Don’t Panic

It’s never too late to start saving money, and it’s normal to feel stressed or overwhelmed when you’re just starting. On average, first-home buyer couples in Australia take 4.6 years to save a 20% deposit , and it’s important to recognise that it won’t be the same for everyone.

Remember – help is available for first-time buyers! Check out the following first-home buyer schemes to see if you’re eligible:

Own your first home sooner.

Don’t worry; there’s no one right way to budget for your first home deposit. The key is to do the best you can and watch what you spend. After all, saving money is all about the little things—buying generic brands, cutting costs on luxuries and buying in bulk are also excellent budgeting strategies. The sooner you save up, the sooner you’ll be able to get into your own place—and the sooner you can say goodbye to the ups and downs of renting.

And, when you’re ready, we’re here to help. Our friendly team will work with you from the moment you decide to save for your first home, until you walk through your front door. We’ll help you navigate the steps involved in buying your first home, providing expert advice along the way and handling all your conveyancing needs.

If you’re unsure where to start, book your free 15-minute consultation today by calling 02 4092 7676 , emailing us at admin@oliverandcoconveyancing or starting a free quote online today .

The Real Cost of Buying a Home in NSW

Mon, 29 Aug 2022 06:54:00 GMT

Buying a home is one of the biggest investments you’ll ever make. And, the truth is, unlike buying a piece of clothing from your favourite store, the price on the tag isn’t what you’ll end up paying.

In this post, we’re uncovering the real cost of buying a home. You’ll find out about the upfront, hidden and ongoing costs you’ll need to budget for – now!

Upfront Costs of Buying a Home

Home Loan Deposit

In NSW, lenders usually expect home buyers to have a deposit of between 5 – 10% of the purchase price. Although, a 20% home loan deposit is more desirable as it reduces the risk to the bank and helps you avoid paying costly lenders mortgage insurance (more on that later).

If you’re a first-time home-buyer, check out the financial assistance available under the NSW and federal government first home buyers schemes . The truth is, the bigger the deposit you can contribute, the better!

Example: In Cessnock, the average home is around $580,000, so you’ll likely require a deposit of between $29,000 and $116,000.

Transfer Duty (previously Stamp Duty)

You must pay transfer duty in NSW if you’re buying:

A home (including a holiday home)
Vaccant land or farming property
An investment property
A business where the sale includes land
Commercial or industrial properties

You must also pay transfer duty when you acquire land, or an interest in land , without buying it.

This includes the following situations:

A declaration of trust
A gift
A transaction effecting a change in the beneficial property ownership.

The amount you pay for transfer duty depends on the market value of the property you’re buying. The higher the value, the more transfer duty you’ll be required to pay. Some exemptions exist, and you may also be eligible for transfer duty concessions as a first home buyer in NSW under the First Home Buyers Assistance Scheme .

Example: You purchase an existing home in Kurri Kurri for $620,000. Without considering any exemptions or concessions, you’ll likely pay a transfer duty of $22,990.

TIP: Use the Revenue NSW Calculators, Transfer of land or business calculator to work out your transfer duty costs.

Legal and Conveyance Fees

Buying a house is a complex transaction.

Between the title searches, reviewing the contract of sale, calculating settlement adjustments, and ensuring that you comply with the legal requirements of the transaction – a conveyancer or solicitor helps make the process go as smoothly as possible.

Deciding if you’re going to engage a solicitor or licensed conveyancer depends on the complexity of the transaction, whether other legal matters are involved, your budget and the state you’re buying in.

Generally, licensed conveyancers are less expensive, specialise in buying and selling property and offer a professional conveyancing service.

Example: The average conveyancing fees in NSW are between $1000 and $2,500. Some conveyancers may also charge disbursements on top of the fee. Here at Oliver & Co. Conveyancing, we generally don’t do this, and we offer free fixed-fee conveyancing quotes , so you always know your costs upfront.

Mortgage Registration

A mortgage registration fee registers the physical property as the security on a home loan. The fee is payable at settlement and varies in each matter.

Example: The cost of this fee varies across Australian states and territories, but in NSW, you’re looking at a mortgage registration fee of approximately $155.

Home Loan Fees

Everywhere you turn, there are account keeping fees, transaction fees, out-of-network ATM charges and early account closing fees. Home loans are not exempt from fees, but there are ways to reduce the blow to your budget.

Home loan fees are broadly broken down into four categories:

Fees paid at settlements
Fees that may apply for the duration of your home loan
Fees for home loan features (like adding offset accounts)
Fees for repaying your loan early, switching loan products or refinancing.

Your choice of lender determines the fees charged, so it pays to do your research and shop around for the best deal. Don’t feel you’ve got to stay with your current bank if another lender offers special promotions. For example, some lenders in the past have offered cashback deals or bonus credit card points just for making the switch.

Example: As mentioned, it’s difficult to calculate what your home loan fees will be as they vary across lenders. According to Canstar, in 2021, the average upfront home loan fees included : application fees of $504; valuation fees of $366; legal fees of $316; and settlement fees of $225. Average ongoing fees included annual package fees of $366 and monthly fees of $9. On average, to discharge a loan, the cost was $316 but could be as high as $895.

As you can see, it all adds up.

Inspection Fees

Unexpected issues that crop up after you’ve bought your dream home are a buyer’s worst nightmare. Imagine finding out a few weeks after you move in that the roof is faulty or there’s water damage you couldn’t see. Rectifying these issues is an extra expense that you didn’t budget for. That’s why paying for pre-purchase inspections on the property is essential.

Building and pest inspections by licensed contractors are a must! Inspectors can see through any cosmetic touch-ups covering issues and identify any nasty and costly pest infestations.

If you’re buying a unit, duplex or townhouse that is part of a strata scheme, you should get a strata inspection report . These cover the physical internal and external building inspections, consider waterproofing and assess whether the building adheres to fire rules and insurance requirements.

Example: There is no flat rate fee for pre-purchase building and pest inspections in NSW, so shop around. In the Hunter Valley region, you can expect the following prices:

From $399 for an individual building, pest or electrical inspection
Between $460 to $900 for a combined building, pest and electrical inspection (depending on the size of your house).

These prices are starting points and vary on the area that you live in.

Removalist Costs

You can save big dollars by DIY moving – but most people don’t want the hassle and headaches that come with it. The cost of moving homes varies depending on a range of factors – like how much you’ve got to move, where you’re moving to, whether you’re going to pack your boxes, and the availability of access to your new property (i.e. parking or if there are stairs).

Example: Expect a removalist cost from $300 – $3,500 – depending on the service you use and your specific circumstances. If you’re moving interstate, the prices may be higher. Many removalists have calculators on their websites that you can use to estimate your costs. And, if you’re moving around the Hunter Valley region, check out Doug Kirk Removals or consider a service like Muval .

Utility Connections

Nothing will be worse than rocking up on moving day to discover you didn’t organise your power or water connections. The process can take several weeks, so as soon as you know your move-in day – get this one sorted and off your ‘to-do’ list.

Example: Depending on where you’re located in NSW, the costs for connections will be set by the electricity, gas and water providers you choose. On average, electricity and gas connections cost between $45 to $110 each. In terms of water connections, these are set by your area’s water authority and there are generally no additional connection fees for change of ownership unless water has been cut off.

The Hidden Costs of Buying a home

Settlement Adjustments

Adjustments refer to the ‘splitting of costs’ between buyers and sellers for certain costs associated with a property. The process ensures that neither the buyer nor seller are paying for costs when they didn’t own the property. For example, if the seller has paid land charges for a time when the buyer will own the property, then the buyer reimburses the seller their share by adding it to the purchase price.

As a buyer, factor in extra costs for adjustments. In most cases, these are paid by the buyer in favour of the seller.
Example: You buy a property halfway through the year where the annual rates cost $1,200. The vendor owned the property for 183 days, and you will own it for 182 days. We assume that the rates have already been paid, so you’ll need to pay your portion, approximately $598.

Duty Interest

We mentioned your requirement to pay transfer (or stamp) duty earlier in this article. You must pay duty within three months of the exchange of contracts or by settlement, whichever is earlier. For the most part, your conveyancer or solicitor will handle the transfer. But be aware that if you don’t pay your transfer duty on time, the NSW government will charge you interest on the amount you owe, and you may also be charged additional penalties .

Example: The r ate of interest or penalty charged will vary depending on the circumstances of the tax default. It’s best to avoid this situation.

Lenders Mortgage Insurance

According to the Insurance Council of Australia, Lenders Mortgage Insurance (LMI) is:

LMI is where the size of your deposit really matters because it’s calculated based on how much you can contribute to the purchase price. This one-off, non-refundable and non-transferrable premium is an additional cost added to your home loan. It’s also a cost often overlooked by homebuyers.

Example: You purchase a home worth $620,000, and a lender would typically require you to have a 20% deposit, or $124,000. But, you’re only able to contribute $62,000.

You need to take out LMI for the bank to lend you the $558,000 required to purchase the property.

Using the Home Loan Experts LMI calculator , the extra amount added to your loan for LMI would be around $14,500. A couple of things to note, if you’re a first home buyer, you may not need to pay LMI if you qualify for financial support under one of the NSW government’s first home buyer initiatives.

Ongoing Costs of Buying a Home

All the financial ‘fun’ of buying a new home doesn’t stop after settlement. Here are a few ongoing costs to keep in mind, especially if this is your first home:

Annual mortgage and account keeping fees
Quarterly rates, electricity, gas and water bills
Home, building and contents insurance
Strata or body corporate fees (if applicable)
Annual pest inspections and treatments
General home maintenance
Unplanned expenses for breakages and repairs
Renovations or remodelling (where required).

Be prepared for the real cost of buying a home

It’s easy to get wrapped up in the excitement of buying a home – especially if this is your first time. It will likely come as a surprise that the purchase price for a property is just the starting point. It pays to be aware of all the upfront, hidden and ongoing costs of buying a home, so you’re not caught out and risk not being able to make an offer on your dream home.

We recommend doing your research, using online calculators and breaking it down into a simple budget. Of course, if you’re time-poor or unsure what to look for – let us help. We can help you uncover the real cost of buying a home in NSW.

As experienced conveyancers, we specialise in all types of property conveyance and frequently help our clients understand the costs involved with buying and selling a property. The best part is we offer a free 15-minute consultation with plenty of time to ask us questions. Just call our friendly team on 02 4092 7676.

Explore Our Top 9 Hunter Valley Suburbs for Home Buyers

Mon, 25 Jul 2022 02:13:00 GMT

The Hunter Valley is one of the most beautiful places in Australia, with lots to offer tourists and locals alike. If you want to plant your feet in a family-friendly area with lots to see and do, the Hunter Valley won’t disappoint.

This post explores our top 9 Hunter Valley suburbs for home buyers.

Cessnock

Where else would we start other than the home of Oliver & Co. Conveyancing itself, Cessnock?

As the largest town within the Hunter Valley region and home to over 63,000 residents, Cessnock ensures that everything you need is at your doorstep. From local wineries and tourist attractions to popular shopping outlets like the Cessnock Village , you’ll find most of the conveniences of a larger town coupled with that good old country charm.

There is a range of schooling options available within Cessnock or neighbouring suburbs, including the following public and private schools:

Cessnock Public School

Cessnock East Public School

Cessnock West Public School

St Patricks Primary School

Nulkaba Public School

Cessnock High School

Mount View High School.

For families with younger children, you’ll also find a range of daycare options to ensure you find the centre that’s just right for you.

In Cessnock, a four-bedroom home will likely set you back on average $610,000 compared to Newcastle’s much larger price tags. If renting is your thing, expect to pay around $500 a week for a four-bedder.

What we love about Cessnock

It’s a thriving community, the locals are welcoming, and it’s central to everything in the Hunter Valley. Sip on your favourite coffee at Quick Bites Cafe or enjoy delicious Thai food at Blue Thai .

Bellbird

Bellbird and Bellbird Heights are thought to be named after a colony of bellbirds that were so loud bullockies could not hear their bullock bells.

With access to all the benefits of Cessnock and just a short seven-minute drive southwest, you’ll find Bellbird worth a look. If having a local watering hole with tasty pub grub and ice cold drinks is essential, look no further than the Bellbird Hotel . Established in 1914, this new ‘old’ pub features a range of dining options, happy hours, live entertainment and maybe a few ghosts. According to hotel staff , strange things happen during the night, like blankets pulled off guests, the sound of footsteps running across the room and bottles randomly thrown across the room. Don’t believe us? Visit them and ask for yourself.

Kids will love Carmichael Park’s popular BMX track, shaded playground and picnic facilities. The Bellbird Park State School is centrally located within walking distance of many local families. Home prices for a four-bedroom home in Bellbird are slightly higher than Cessnock, at $652,500, with rentals asking around $550 per week.
Bellbird is a growing hub with plans for a future town centre as part of the Mount View Grange development. Road improvements will improve access to Pokolbin and Mount View High School. You’ll find a new doctor’s surgery opening just this year (taking new patients) and a 24/7 Cold Rock Ice Creamery ready to satisfy your sugary cravings day or night.

What we love about Bellbird

Definitely, the Bellbird Hotel! The chicken schnitzel is drool-worthy, and the $10 lunches are an absolute bargain!

Nulkaba

Only five minutes north of Cessnock, you’ll find the sprawling suburb of Nulkaba, which is home to the Hunter Valley Zoo , Monarchs in the Hunter , Ernest Hill Wines , Hanging Tree Wines and plenty more beautiful wineries to explore. This is one of the more prestigious suburbs in the Hunter Valley, and it’s here you’ll start to feel like you’re living in and experiencing wine country.

A search on realestate.com.au for homes in Nulkaba shows a mix of opportunities for new builds and existing family estates on larger parcels of land. A short car trip up the road will find Crowne Plaza and Hunter Valley Golf for all you golf enthusiasts.

This area offers plenty of accommodation options for visiting family and friends. There is also easy access to a range of schools in Nulkaba and across the greater Cessnock LGA, as well as fun activities like the popular Nulkaba Park Run , held every Saturday at St Phillip’s Christian College.

Out of the nine suburbs we’re covering in this post, Nulkaba is the most expensive in terms of property prices. The average house price in Nulkaba is a commanding $1.2 million, which is a staggering 114.3% growth over 12 months. We couldn’t find your average rental prices on either of the big real estate websites, and a quick search for a rental property in the area returned zero results (as of 18/07/2022). We believe this is indicative of the larger homes and estates within the area that are generally owner-occupied and not rentals.

What we love about Nulkaba

The wineries and a trip to The Mighty for a few sneaky Foghorn Brewery samples or even a tour! Whether you’re keen to get on board a wine tour, explore the cellar doors by car, or you’re looking to settle down on a sprawling estate in wine country – Nulkaba has it all.

Aberdare

South-east of Cessnock, you’ll find the charming village of Aberdare. Like Bellbird, Aberdare is a small centrally-located suburb just 15 minutes from beautiful Hunter Valley wine country, 45 minutes to Newcastle and only two hours to the hustle and bustle of Sydney. It’s in Aberdare that you’ll find Cessnock Public School and High School, as well as Aberdare Preschool.

Image Source: Jasmine Cottage, Aberdare – Airbnb

If you’ve got guests visiting but not enough room at home, you don’t have to look far for suitable accommodation. Check out what’s available through Airbnb , including the quaint Hamptons Style, Jasmine Cottage or ManiCottage @ Hunter Valley .
If a drive around Aberdare makes you curious, you’ll find the property market on par with Bellbird. Average house prices for a four-bedroom in Aberdare are $645,000 , but if it’s a smaller-sized rental you’re looking for, a two-bedder is likely to cost you $330 per week.

What we love about Aberdare

A drive through Aberdare never disappoints. We love the tastefully restored charming cottages that add character to the streets. Renovators can also discover the perfect property to add their touch too.

Abermain

Take a 10-minute drive north-east of Cessnock, and you’ll come across Abermain. You’ll find pockets of peace and quiet here with less hustle, but it’s far from a sleepy town. Residents and tourists alike love frequenting the new local small batch brewery by Abermain Brewing Company , located in the Abermain Hotel .
You’ll have access to Cessnock on your left, or Kurri Kurri on your right, for a variety of larger retail stores like Bunnings , Coles and your usual big-name takeaways. There are local schools and childcare options, and the Kurri Kurri Hospital is only a 7-minute car ride away. The new Stockland Greenhills shopping centre is only a hop skip and a jump down the expressway.

The average home in Abermain sells for $545,000 , a 45.3% growth in the last 12 months. Rentals are a little cheaper here, averaging around $395 per week.

What we love about Abermain

Ridgy Didge Pies ! With over 30 varieties of beef, chicken, vegetable and gluten-free pies, you’re guaranteed to find something to tickle your taste buds.

Kurri Kurri

Just along the road from Abermain, you’ll find Kurri Kurri – a town named in 1902 by District Surveyor T. Smith , who believed it meant “hurry along” in the language of the local Awabakal Aboriginal people.

As an up-and-coming area of greater Cessnock, there are many reasons why Kurri Kurri is an ideal choice for homebuyers. It’s close to the M15 Hunter Expressway and has centrally located schools, a range of local shopping options and that relaxed, family-friendly feel.

Kurri Kurri is known for its big Kookaburra and internationally famous murals. The annual Kurri Kurri Nostalgia Festival sees the township transformed into a bygone 50’s and 60’s era with retro markets, dancing, free entertainment, fashion parades, and more. Local families look forward to this well-known event rolling around each year, and you can’t miss out on the Mullet Fest either!

According to domain.com.au , a family-sized four-bedroom home takes on average 31 days to sell with a median price of $675,000. 65% of residents in this area are owners, with 38% being families. On average, rentals for the same-sized home cost $495 per week.

Image Source: Trip Advisor

What we love about Kurri Kurri

Locals take great pride in their suburb and even have an IloveKurriKurri Facebook page! There’s a wonderful community spirit here with lots of local activity and only a short drive to other significant areas within the Hunter Valley region.

Rutherford

What we love about Rutherford

The Braddie (ak a The Bradford Hotel) is a favourite within the Hunter Valley region. Parents can enjoy all the usual pub classics or choose a delicious pizza. While enjoying the live entertainment, the little ones will have plenty of fun in the wild jungle outdoor playground. And yes, they do kid’s parties! Claiming to turn your next night out from ‘meh’ to ‘hell yeah!’, Dullboys is also a popular choice.

In Rutherford, you’ll find homemaker centres Home + Life Rutherford and Rutherford Homemaker Centre with the likes of Spotlight , Harvey Norman, BCF, Pillow Talk, Amart, Fantastic Furniture, Baby Bunting and Officeworks. There are also good local employment opportunities in the light industrial area.

East Maitland

We’ve already mentioned the Green Hills Shopping Centre, which you’ll find down the road from Rutherford in East Maitland. This area of the Hunter Valley has a lot going for it, especially if you’re an architecture buff or appreciate modern contemporary homes or those beautiful heritage properties. East Maitland is well placed between the Hunter Valley wineries and only a 35-minute drive to the Newcastle beaches, which is perfect for those hot summer days.

According to local Stephen Durrheim , East Maitland is a ‘booming town and a fantastic place to live’. Obviously, Cessnock is our favourite Hunter Valley Town, but if we had to choose a plan B, we’d agree with Stephen. You’ll find both the East Maitland Railway Station and the heritage-listed Victoria Street Station , offering an easier commute option to Maitland or Newcastle. There’s also no shortage of educational opportunities with several schools in East Maitland like East Maitland Public School , Maitland Grossmann High School , St Josephs Primary School and Maitland High School . Of course, Maitland is only a hop, skip and a jump away, so you’ve got a whole range of schools to choose from

Four-bedroom homes in East Maitland fetch around $770,000 and rent for about $580. The increase in pricing from the previous suburbs is no surprise given the extra infrastructure, facilities and closer proximity to Newcastle.

What we love about East Maitland

The Green Hills Shopping Centre is a perfect day out for Cessnock locals. Catch a movie, shop until you drop or chat over a coffee at popular cafes. If dining is a favourite past-time, Dukes Restaurant and Bar has a self-proclaimed menu that strikes the perfect balance between simplicity and sophistication.

Cameron Park

If you’re not looking for a country vibe and prefer living closer to the big smoke, check out Cameron Park. This modern area is sought-after by families, which is no surprise given the choices regarding schooling, amenities and health facilities. A big bonus is that you’ve got the Hunter Valley wineries in one direction and the other, a 30-minute drive to popular Nobby’s Beach or Newcastle Beach.

If getting outdoors with the family is a favourite activity, kiddies will love exploring the all-inclusive park at the Pasterfield Sports Centre , bike paths, BMX track, walking trails and outdoor exercise equipment.
It’s no surprise that property prices in this popular area are generally higher than what you’ll find in most regional areas of the Hunter Valley. An average three-bedder in Cameron Park will set you back around $767,000, while your average four-bedroom home is closer to $885,000 . Rentals are also considerably more expensive, with a median rental price of $610 per week.

What we love about Cameron Park

Beaches are on your doorstep! Pack the kids and a picnic, and within 30 mins, you could be sitting on the beach destressing after a hectic week. Residents love how family-friendly and modern this suburb is, with streets lined with safe footpaths, plenty of recreational activities and reputable schools.

Work, live and play in the Hunter Valley, NSW

Hunter Valley is a popular choice for home buyers who enjoy the best of both worlds. Everything you need is on your doorstep, from visiting the beaches around Lake Macquarie and Newcastle to the picturesque countryside and wine region. Housing is generally affordable, traffic is not too intense, and there are plenty of activities to keep people and families entertained.

If you’re thinking about finding your next home in the Hunter Valley, we’d love to hear from you. Working with a conveyancer from the moment you start househunting ensures you understand the home buying process and makes your journey as smooth as possible. As Cessnock and Hunter Valley locals, there’s no one better to talk to for all the local insights.
Book your free 15-minute consultation by calling 02 4092 7676 or fill out our online conveyancing quote form . It’s that easy!

Interest Rate Rise: What it means for homeowners

Mon, 16 May 2022 05:47:00 GMT

Worried about interest rate rises? You’re not alone. The Reserve Bank’s announcement on 03 May 2022 to increase the cash rate target has most homeowners on edge. When the cash rate rises, unfortunately, home loan interest rates also rise. But what does all this mean? In this post, we’ll explore what an interest rate rise means for homeowners. You’ll learn:

what a cash rate is,
what interest rates are and why they change,
why interest rates are rising in Australia,
what this means for your home loan repayments
if an interest rate rise will impact property prices,
how you can prepare for an interest rate rise

Now we understand that this post might be a little, shall we say ‘dry’? But, it’s important! So grab a cuppa, and let’s dive in

What is a cash rate?

The cash rate is the interest rate that a bank pays to lend funds from other banks in the money market on an overnight basis to meet their daily cash needs. As the central bank for Australia, The Reserve Bank is the primary decision-maker when it comes to Australian monetary policy, with a duty to contribute to the stability of the currency, full employment, and the economic prosperity and welfare of the Australian people.

Meeting on the first Tuesday of every month (except January), the RBA considers various factors (like employment rates, economic growth and inflation) to decide whether the official cash rate should change. The recent decision to increase the official cash rate by 25 basis points was the first time in 10 years that the RBA decided on an increase.

What are interest rates, and why do they change?

Now that you know about cash rates, you’re probably wondering what they’ve got to do with interest rates. Decisions to increase, decrease or hold (leave ‘as is’) cash rates have flow-on effects on other areas of the economy, including the interest rates set by banks for their variable loan products.

Interest is what a bank charges when they lend you money for products like credit cards, personal loans and home loans. The lower the interest rate, the less interest you’ll pay over the life of the loan for lending the money. The interest rate set by the bank is influenced by the cash rate set by the RBA.

According to Mortgage Choice , when the cash rate is low, interest rates on your mortgage will feel more affordable because you’re paying less interest each month on your borrowed money. However, when the cash rate increases, banks’ interest rates follow, and the cost of borrowing money is more expensive. Likewise, a decrease in interest rates often leads to a rush of people buying a property because home loans are seemingly cheaper. The opposite is true when an interest rate rise occurs.

Are interest rates rising in Australia?

Interest rates are influenced by the behaviour of the cash rate – this part, we already know. But, it’s important to acknowledge that the announcement made by the RBA was to increase the ‘cash rate target’ to 35 basis points (an increase of 25 basis or percentage points). Banks will take this into account when considering whether to increase interest rates. Still, they also consider several other factors when deciding to increase interest rates , such as the competitive environment, funding costs and customer feedback.

In saying this, since the announcement to increase the cash rate target was made, the big four banks ( CBA , NAB , Westpac , and ANZ ), as well as some smaller banks, have stated that they will be passing full the RBA’s increase in the cash rate ‘in full – it may have already happened. You can expect the variable interest rate on your home loan to increase by the same 25 percentage points that the RBA applied to the official cash rate target. What does this mean for you? If your interest rate is currently 4%, you can expect it to rise by 25 percentage points to 4.25%

How will an interest rate rise affect my mortgage repayments?

This depends on your bank, the type of home loan product you have, how much you borrowed, and the amount you’re currently repaying. If you’ve chosen a fixed interest rate for your home loan (or a portion of it), the interest rate will remain unchanged for that fixed period, and so will your repayments (unless you opt to pay more etc.). However, homeowners with variable interest rates are likely to notice an increase in their repayments in line with their bank’s decision. According to 9news.com.au , where a bank has passed on the rate hike in full, the average borrower with a $500,000 loan and 25 years remaining will see their repayments rise by $65 a month. Someone with a $1 million loan will see their repayments rise by $130.

Do interest rate rises affect the property market?

Yes. As interest rates rise, borrowing capacity and higher mortgage repayments weigh heavily on home buyers , and its likely buyer demand for property will reduce.

Realestate.com.au indicate that typically when interest rates have risen in Australia, property prices have also risen . Yet as we clawed our way through the COVID pandemic, some national home prices experienced increases by up to 35% – a rate that would be difficult to sustain even without rising interest rates. And, we’ve already started to see signs of the market slowing.

Mark Bainey, chief executive of Sydney-based property developer Capio Property Group, indicated just after the RBA announcement that ‘Buyer inquiry levels are down 50 per cent at the moment, so demand has essentially collapsed,” he said. Prices are remaining steady, but inquiries are always the best indicator of where prices are going. If inquiries are going down, then prices are going in the same direction. We’re prepared for it, but I think the outlook for the market is quite dire.”

Increased interest rates can understandably spook many home buyers, but if we’re looking on the bright side, it also means less competition and where there’s less competition, you’ll likely see reduced property prices.

How can you prepare for an interest rate rise?

Interest rates are rising; there’s no denying it. Follow these tips to help lessen the impact it may have on your bank account:

Calculate how an interest rate rise will impact your home loan. If you’re not sure, talk to your bank or mortgage broker
Review your budget – can you cut costs, or can you afford to make extra repayments now to lessen the impact of rate rises down the track? One option is to calculate what your repayments would be if your rate increased by one percentage point and start paying that amount if you can [ Canstar.com.au ].
Talk to your bank or mortgage broker about other home loan products or options – like locking in a fixed rate for all or a portion of your mortgage now.
Consider shopping around for a better deal – some banks even off cashback for switching your accounts to them! It pays to do your research.

The final word on interest rate rises

The rise and fall of interest rates is nothing new, but some homeowners may not have previously experienced higher interest rates. They will no doubt also impact many first home buyers. It’s important to understand your options and know what the likely impact is going to be on your circumstances. And, if you’re looking to get a foot in the property market sooner rather than later, we’d love to hear from you. Our experienced team of conveyancers are here to help you achieve your property goals. Get in touch with us on 02 4092 7676 , or get your free conveyancing quote online today

What to check at an open house inspection

Thu, 21 Apr 2022 05:37:00 GMT

If you’re searching for your first home, you’ll quickly realise how important open house inspections are. As a first-time buyer, weekends will likely feel like an endless effort to coordinate and drive between inspections searching for the ‘the one’. Buying your first or next home is an exciting but daunting time. It’s easy to get swept up in the moment and let the lighting, stunning view, or crystal clear pool water influence your decision to make an offer. But if you’re serious about making the right decision, you’ll need to look harder. Use this guide so you know exactly what to check at an open house inspection.

Walls and Ceilings

The walls and ceilings of a house are often overlooked by buyers at open home inspections. Still, they can give critical insights into the property’s foundations. As you walk from room to room, look up and down the walls, at cornices and skirting boards, behind curtains, and corners. While cracks aren’t always a sign of something sinister and can be cosmetic, large cracks (larger than 5mm) can indicate a structural problem . Any foundation or structural issues can be costly down the track.

While you hunt for cracks, keep your eyes peeled for mould or signs of water damage. Specifically, look for discolouration of surfaces, rotting, musty odours, condensation, warped ceilings or floors and visible mould. Water damage can have severe impacts on the structural integrity of your home and your health .

Cupboards and drawers

Homebuyers can feel uncomfortable opening cupboards and drawers in someone else’s house. The key is to remember that an open house inspection is not an open invitation to snoop. Real estate agents generally advise sellers on the areas that potential buyers are most likely to look to help them protect their belongings and privacy. But, it’s totally ok to check that doors and drawers are in good working order. More importantly, be on the lookout for any water damage or leaking sinks and taps in the kitchen, bathrooms and laundry.

Functionality, floor plan and storage

Prospective home buyers rarely have longer than 30 minutes to inspect a property . Make the most of what little time you have to ensure the house is a good fit for your lifestyle. Check that the kitchen and bathrooms have functional layouts. If you have young kids, are there ways to prevent them from getting into areas where little ones can hurt themselves? Does the floor plan work for you? Do you want the main bedroom at the front or at the rear of the property? Do you need a separate area for a home office or an activity area for kids? Will the alfresco area get the full brunt of the afternoon sun while you’re trying to chill? Are there enough cupboards for linen and general storage? Think about your property must-haves and whether the house lives up to your needs.

Working appliances, lights and running water

Dishwashers and ovens are generally included in the sale of a property. A quick inspection will give you hints about whether they’re working the way they should. Open up the dishwasher and check for smells, oil or broken cleaning arms. Look at the flooring beneath the dishwasher for any water stains or potential leaks. Next, check the oven. Does it turn on? Does the fan work? Are the seals in good order? If either of these appliances doesn’t work, talk to the real estate agent.

Pest control and termite inspections

No one likes little critters running around in their new house or finding out that the house has issues with termites. Building and pest inspections occur after you’ve made an offer that was accepted. But, an open house can give you an early hint as to whether the home has been maintained for pests and termites. You may not be able to visibly see termites or the damage they cause, but if the house has an infestation, it can be very costly. In Australia, the average cost for initial eradication and prevention of termites is $4000 to $5,500 , including a follow-up inspection at 12 months. If the home has had regular pest and termite inspections, the provider often adds a treatment sticker on the inside of the cupboard door under the sink or in the meter box outside. Ask the real estate agent when the last inspection was if it’s not there.

Windows and doors

As you move throughout the home on open inspection day, check that windows and doors are easy to open and shut. Cast your eyes around the door frame – are there any cracks or damage? If windows and doors are hard to open, feel jammed, or the frames have large cracks, there could be structural issues. For those security-conscious buyers (aren’t we all?), it’s also a good idea to ensure that all windows and external doors are lockable and have security screens.

Gutters and drainage

During the open house, head outside, walk around the home and check that the gutters and external pipes appear in good order. Cracks, holes or signs of rust can indicate leaking, which can cause damage to the exterior of the home and the foundations .

You’ll also want to inspect the yard for adequate drainage. Besides impacting your new lawn, if the yard doesn’t have sufficient gully drains or water pools outside the house, you could be faced with foundational issues. Be on the lookout for standing water or water stains close to the home as a sign of poor drainage. In most cases, poor drainage can be improved with changes to landscaping or rerouting water with new drains and pipes.

Neighbours and neighbourhood

While you’re outside, check out the houses on either side and to the rear of the property. Also, look up and down the street. Are the yards neat and tidy? Are there lots of cars parked in front yards or on the road? Are there dogs barking? Your neighbours will have a big impact on your day-to-day life so take note of your surroundings.

What about crime? First-time or experienced buyers are often unaware that they can access crime information for their new neighbourhood. The NSW Bureau of Crime Statistics and Research provides free access to Crime Maps , an interactive online tool providing easy access to information on crimes committed within NSW. Simply enter your postcode and use the filters to determine the types of crimes committed within the area. Be mindful that every neighbourhood will have some level of crime.

General damage and neglect

Other than the items mentioned above, look for any general damage or neglect. Are door handles or taps loose? Are exterior gates working, and are gutters clean? Is the flooring in good condition, or are there stains or water damage? Are showers clean, or is there missing or mouldy silicone? Note any issues you may need to chat to the real estate agent about.

Download our FREE Open House Inspection Checklist and be prepared for your next inspection!

Are you prepared for open house inspections?

Open house inspections are your golden opportunity to feel whether the house has been well maintained and cared for. The age of the house is likely to impact the number of issues that may arise but remember, not all problems are significant. If you decide to make an offer, ensure that the contract of sale is subject to a professional Building and Pest Inspection. If you’re not sure how to make this kind of offer for your property purchase, let our experienced and friendly team help. Request your free quote today or call our office on 02 4092 7676 .

7 Steps To Buying a Home

Mon, 28 Mar 2022 04:14:00 GMT

The first steps to buying a home can be an exciting yet daunting time in your life. It’s one of those big moments that you’ll never forget, and it’s easy to feel overwhelmed when you start thinking about budgets, deposits, mortgages, interest rates, locations, and the list goes on. The good news is that once you wrap your head around the process of buying a home, you’ll feel more confident taking those first (and second) steps towards property ownership.

As conveyancers, we know this process inside out, so let us walk you through it. We’re going to cover:

Working out your budget
Searching for your first home
Engaging a conveyancer or lawyer
Making an offer
Exchanging contracts
Arranging inspections and due diligence
Settlement and moving in

Step 1 – Work out your budget

Don’t worry; budgeting doesn’t have to be doom and gloom. The first step for buying a home is knowing how much you can afford to borrow and how much you can afford to repay on your loan either weekly, fortnightly or monthly. A big factor here is also how much deposit you can contribute to the purchase, as this will impact the size of the loan you need to buy your house.

There are handy resources online that can help you with this step. Here are just a few:

Online Budget Planner

Savings Calculator

Home Loan Calculators

Home Loan Repayment Calculators

Start with your monthly net income, and then work out your monthly expenses. Subtract your monthly expenses from your monthly net income, and what’s left is how much you have to contribute to home loan repayments each month.

Don’t forget that you can always talk to your bank or a mortgage broker. Getting pre-approval on your home loan will put you in an excellent position for buying a home.

Step 2 – Search for your home

With a firm understanding of your budget, searching for your home is the next step towards buying a home.

You’ve got a few big things to take into consideration with this step, like:

whether you want to buy an existing home, a new home or build a home
the locations you’d like to consider looking for a home in
researching those locations for things like transport, shops and schools

To get an idea of your preferred suburbs’ average prices, check out the local real estate guide in the paper or on realestate.com.au and domain.com.au . You’ll get a good feel for whether you can afford to live in the areas you’d like and what kind of house your hard-earned dollars can buy.

Step 3 – Engage a conveyancer or lawyer

Before you start getting too serious and certainly before you pull the trigger and make an offer on a house, engage the services of a conveyancer or lawyer to guide you on the first steps of buying a home. Conveyancing is the legal process of buying and selling land. And many first home buyers make the mistake of waiting until they’ve exchanged contracts before they realise they need a conveyancer. You’re about to make one of the most important financial decisions of your life, so it’s wise to involve them early in the process.

A conveyancer will support your first steps to buying a house by:

Helping you research property and certificate of title
Preparing documentation and answering any questions you have
Checking for easements and other information you’ll need to know about the house
Talking to you about your deposit and when you’re ready, popping it in a trust account
Representing your best interests with the real estate agent and vendor
Calculating stamp duty (where required) and other rates and taxes
Walking you through any first home buyer government grants
Conducting property settlement on your behalf and helping you get your keys!

There’s a lot to take on board when you’re buying a house, especially if it’s your first, so don’t be afraid to ring a few conveyancers and ‘interview’ them, so you’re confident you’ve got the right fit.

Step 4 – Make an offer

You’ve found the one! The location is perfect, the purchase price is within your budget, and it’s time to make an offer. You can negotiate on the asking price but be wary of being inflexible or going too low. The last thing you want is to be outbid because you’ve lowballed on a property worth more.

And if negotiating makes you feel queasy, don’t be afraid to ask for help from more experienced family members or friends.

To make an offer, you’ll need to put it in writing. This will be done via the contract of sale, an email or through an expression of interest process.

Don’t be too disheartened if you miss out on the first property you put an offer on – it’s a tough market with lots of buyers often competing for the same home. And, if you’re got any questions about making an offer or what conditions should be included in the contract of sale – speak to your conveyancer or lawyer as quickly as you can.

Step 5 – Exchanging contracts

Congratulations – your offer was accepted! You’re only a few steps away from walking through the front door of your first home. There will be two copies of the sale contract – one for the buyer and one for the seller. Each party signs one copy before the two are swapped or “exchanged”. It’s becoming more and more common for this part of the process to be handled electronically using a platform like DocuSign .

Before you sign the contract, and if you haven’t already, consider engaging a conveyancer or lawyer to be confident your best interests are protected. For example, they’ll help you negotiate a ‘conditional contract’ that includes certain protections around finance approvals, what’s included with the property and what happens if the building or pest inspection returns something unexpected. They’ll also assist with coordinating your deposit and advise you on the next steps.

Step 6 – Organise inspections and do due diligence

It’s the buyer’s responsibility to organise and pay for pre-purchase building and pest inspections . In some cases, you’ll find companies that can undertake both inspections or your conveyancer or lawyer may be able to provide recommendations for inspectors in your local area. These inspections assess the overall condition of the property, looking for any structural or safety hazards and evidence of any pest infestations. There is a time limit for carrying out the inspections. Should anything unexpected turn up, speak to your conveyancer or lawyer regarding your options for having the seller address the issue before settlement or withdrawing from the sale if your contract is ‘subject to a building and pest inspection’.

Your conveyancer or lawyer completes additional due diligence on the property by undertaking the searches required to check the property title, survey plans and rates. They’ll also be chatting to your lender about finance and negotiating on your behalf should you require any additional time for your finance approval to come through.

Step 7 – Final inspection, settlement and move in!

You’re almost there! In the week leading up to your settlement day, organise a final inspection. It’s your last chance to check that the state of the property hasn’t changed in terms of any new damage, that it’s reasonably clean and tidy, and that the agreed inclusions have been left at the property. Your conveyancer or lawyer will talk to you regarding the settlement process, including settlement figures, and organise and attend settlement on your behalf. Like exchanging contracts, electronic settlement is now the usual approach for conveyancing. In fact, Deloitte Australia claimed that by 2022 the conveyancing industry would have moved to 100% e-conveyancing. Put simply – it’s more cost-effective, easier to use, and everything happens online.

Now here’s the moment you’ve been waiting for – settlement is complete. You’ll be told that the keys are ready for your collection when the property is officially yours.

Congratulations again! Whether it’s your first home or your third, buying a home can be a stressful and emotional time. But, it’s all worth it.

We’ve given you an overview of the first steps for buying a home, but nothing can replace the confidence you’ll feel when you’ve got the right conveyancer. If you’ve got any questions regarding the buying process or you’re ready to get started in the property market, we’d love to help. We’re proud to offer personalised and expert advice every step of the way and invite you to call our team on 02 4092 7676 or start your free conveyancing quote online .

What does a conveyancer do?

Sun, 09 May 2021 20:21:00 GMT

If you’re on the verge of buying or selling a property, you’ve probably been asking yourself this question – What does a conveyancer do? At Oliver & Co. Conveyancing we pride ourselves on going above and beyond for our clients. We’re particularly committed to ensuring that our processes are transparent and educational so you feel (and know) that you’re in safe hands.

In this post you’ll learn:

What conveyancing is
What a conveyancer does
How a conveyancer helps sellers
How a conveyancer helps buyers

What is conveyancing?

Conveyancing is the transfer of a land title from one person or entity to another.

The process is complex and it is highly recommended that you use a professional when buying or selling a property.

For the sake of a relatively small fee, ensuring that you have dotted all the i’s and crossed all the t’s, you can rest assured that you are protected in the transaction.

What is a conveyancer?

A conveyancer is a licensed professional who specialises in buying and selling property.

It is recommended that you engage a conveyancer whenever you’re:

Buy ing or selling property
Subdividing land
Updating a title (i.e registering a death)
Registering, changing or removing as easement.

What does a conveyancer do for the seller?

A conveyancer for the seller will:

Prepare the contract for sale
Represent you in the contractual dealings with the buyer
Ensure that you receive your sale proceeds
Liaise with your bank to discharge your mortgage
Settle the property – act on your behalf and advise when settlement has taken place.

What does a conveyancer do for the buyer?

A conveyancer for the buyer will:

Prepare, clarify and lodge legal documents
Research the property and its certificate of title
Calculate rates adjustments and stamp duty
Liaise with your financier
Represent you in the contractual dealings with the seller
Ensure that you receive good title on your land
Settle the property – act on your behalf and advise when settlement has taken place.

If you’d like more information on the conveyancing process or you’d like a free FIXED FEE quote please get in touch with our friendly team.