Frequently asked questions 2018-04-03T16:15:25+00:00

Frequently asked questions

 

Do I need a buyer’s agent or adviser? 2017-11-17T09:06:44+00:00

More of us are choosing independent associates without agenda to represent them in the property process. Professional advice helps you avoid the stumbling blocks you can encounter while buying, selling, or investing in property. The property market is brimming with opportunity and expert advice can give you the edge to get great returns.

Is now a good time to buy a property? 2017-11-17T09:10:07+00:00

It’s not when, but what you buy that’s important. Choosing when to buy is best based on your personal circumstances and financial stability. Property is a long-term plan, so be prepared to ride out the bumpy bits to come out on top. It’s difficult to pick the market, but smartly selected property will always be desirable.

What is the best time of year to sell? 2017-11-17T09:10:26+00:00

The premium time to sell is when the number of buyers is high compared to the number of properties for sale. The market tends to open up at the start of the year with pent-up demand over summer. Winter sees less competing listings, but not all properties present well at this time of year. If you’ve got a great garden, spring could be a smart time to sell, but you’ll have plenty of competition. A PropertyDuo associate can help create the best campaign schedule to maximise your sale result, regardless of the time of year.

What should l look for at a pre-settlement inspection? 2017-11-17T09:10:42+00:00

Check the property is in the same condition as when it was purchased. Test all appliances and light switches, ensure the hot water is working and make sure the power is connected for the final inspection. If something’s not up to scratch – notify your solicitor or conveyancing lawyer immediately after the inspection.

Is it better to buy at auction or private sale? 2017-11-17T09:11:01+00:00

This largely depends on location as some cities and suburbs seem to exclusively sell by auction, and others by private sale. Auctions offer transparency where you’re only paying one bid above the next would-be purchaser with no ‘cap’ on the end price. Private sales are trickier as you may be way above your next would-be purchaser but then, it may not keep going. For private sales, ask the agent what their offer process is as they differ. Make sure you know what the property’s worth and stick to your auction limit or offer price.

How much deposit do I need to purchase a property? 2017-11-17T09:11:18+00:00

This depends on your situation, the property you’re looking at, and if any government concessions apply. Generally speaking, you’ll need anywhere between 5%-20% of the purchase price. On top of that, allow around 5% for stamp duty, loan establishment fees, conveyancing and transfer registration. PropertyDuo will refer you to one of our trusted mortgage brokers if you haven’t got your finance pre-approval.

Is a two bedroom apartment a better investment than a one bedroom apartment? 2017-11-17T09:12:10+00:00

There’s a common misconception that one-bedroom apartments are less desirable investments than two-bedrooms. From a capital growth perspective, a well located one-bedroom apartment with a great floor plan, close to amenities and infrastructure will outperform an average two-bedroom apartment in a secondary location.

Should I invest in a house or an apartment? 2017-11-17T09:12:19+00:00

This depends on your budget, rental return wishes and how much maintenance you can commit to. There are pros and cons for both, but it depends on the location and underlying land value. Apartments tend to have higher rental returns than houses, which can help with cash flow and serviceability. More often than not, houses have more maintenance costs than apartments. A PropertyDuo associate can define which option is best suited to you.

Why should property investors use a professional management service? 2017-11-17T09:12:42+00:00

If landlords aren’t up-to-date with changes to legislation and industry standards, it can lead to potential liability and negligence claims. Because they don’t have the time to establish clear and detailed reporting systems, landlords can overlook potential issues, as well as opportunities that can impact their asset’s growth. PropertyDuo associates can help you select a suitable property manager for your investment property.

Why are property advisers increasingly popular? 2017-11-17T09:12:55+00:00

Real estate agents have vested interests, which is why buyers and vendors are increasingly turning to advocates to represent them. While the current market is full of opportunity, it’s difficult to know what properties will provide a good return, so more people are seeking advice.

How do I choose a buyer’s agent or associate? 2017-11-17T09:13:22+00:00

Before engaging a buyer’s advocate or property associate you should ensure they:

  • hold a fully certified Real Estate Agents licence;
  • are independent;
  • don’t work with developers or real estate agents on a commission basis, so you know there is no vested interest; and
  • have access to a team of researchers and data, and you know they are making informed decisions on your behalf.
How much does it cost to engage a buyers advocate? 2017-11-17T09:13:39+00:00

Initial discussions are generally free. If you decide to engage a buyer’s advocate, some may have a one-off administration fee covering an audit of your lifestyle needs, financial position and investment goals. If the buyer purchases a property identified and negotiated by the buyer’s advocate, a percentage commission of the purchase price is payable to the buyer’s advocate. If a buyer already has a property in mind, to purchase the commission on the properties purchase price is typically much less and is simply payable to the advocate to inspect, evaluate and negotiate the property purchase.

What is a property associate? 2017-11-17T09:13:48+00:00

Typically, they’re a qualified and experienced professional who works with property buyers, owners and investors as a buyer’s advocate and/or a vendor’s advocate. Offering strategic property investment advice, they also review investors’ property portfolios to advise on ways to improve performance.

What is an investment-grade property? 2017-11-17T09:13:54+00:00

Less than 10% of all residential properties outperform market growth rate in most conditions which means not all of them will make a great investment. When the market is on the up, only a few properties lead the pack, and when it slows, it’s these properties that hold their value. As capital value grows over time, so will the owner’s equity, along with the rental dollar return these properties provide.

How do I find an investment-grade property? 2017-11-17T09:14:11+00:00

Our process is to continuously review the market, then survey properties for sale (on and off-market) using a selection technique that considers location, property type and property attributes. Properties under analysis are then subjected to an Investment Fundamentals Test to ensure they demonstrate a history of investment performance. The final step for remaining properties is a peer review, involving an inspection of the property and discussion by our team of PropertyDuo associates.

Is it ok to buy a property without a car space? 2017-11-17T09:14:21+00:00

Buying an apartment without a designated parking spot reduces its future sale and rental marketability and therefore its growth potential. We strongly recommend a car park on Title when purchasing an investment property. Check the car space to make sure it’s accessible and large enough to fit a car. For houses, check the availability of parking in the area and whether there’s permit or restricted parking.

When should I insure a property once purchased? 2017-11-17T09:16:46+00:00

It’s important to insure a home as soon as you sign on the dotted line – you can do this even if you’re not the registered proprietor. An important risk minimisation strategy, this allows you to protect the asset prior to settlement. You should also secure landlord insurance before tenants occupy the property.

I’m looking at purchasing a house, should I get a building inspection? 2017-11-17T09:16:40+00:00

A building and pest inspection is strongly recommended and will set you back between $500 and $700 plus GST, depending on the property. Getting information about existing damage and potential upcoming/unforeseen works will save you money and heartbreak. Book a building inspection a few days after the auction, once you’ve had the contract of sale and section 32 reviewed by your solicitor.

If I purchase a property at auction is there a cooling off period? 2017-11-17T09:16:33+00:00

In Victoria, there’s no cooling off period if you purchase a property at a publicly advertised auction. Section 31 of the Sale of Land Act 1962 states that a 3-day cooling off period doesn’t apply if ‘you bought the property at or within 3 clear business days before or after a publicly advertised auction.’

Should I invest in residential or commercial property? 2017-11-17T09:16:26+00:00

Investing in residential property provides strong capital growth prospects, however, not all properties perform the same, so selection is crucial. Decisive drivers of capital growth include demand, location of property in relation amenities, location of apartment in development, functionality of floor plan and level of renovation.

Residential yields (annual rent as a percentage of property value) range between 3% to 4%, depending on the property type and location. Commercial property such as warehouses, shops and offices, generally provide stronger yields but lower capital growth prospects. Tenants of these assets generally pay the building outgoings which assist in keeping net yields at a higher level. Commercial property yields (annual rent as a percentage of property value) range between 4% to 7.5% depending on the asset.

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