Is 2022 the Perfect Time to Buy a House?

11/02/2021 Clive Elliott Homebuyer Tips, Perth Real Estate

As the world continues to shift, so do housing market trends. The real estate trends are shaped by different factors depending on the situation every year. If you’ve been wondering if waiting until 2022 is the perfect time to buy a house or just take advantage of the current low rates, read these predictions as well as some tips to help you prepare as you navigate the market.

Property Market 2022 Predictions

1. Rise of commercial spaces

As lots of companies continue to shift to hybrid/remote work due to the effects of the pandemic, the need for smaller office spaces is in high demand. Fulfillment centre spaces for e-commerce have also been increasing for small and big retailers to service their consumers. Multifamily units, both newly built and renovated, have also become popular for families and the working class on a mortgage or rental basis.

2. Technology continues to play a role in the buying process

The current generation of home buyers entering the property market makes use of technology to assess their choices, review, and research on suburbs, and communicate with agents. Being visible online and social media is the best way to buy or sell a house and connect with a tech-savvy generation.

3. Competition remains fierce, but it’s slowly calming down

Due to the pandemic, housing inventory has become limited with sellers withdrawing their listing. Due to the limitations, prices have soared and bidding wars became aggressive, which may intimidate first-time home buyers. However, as of August 2021, the bidding wars are beginning to drop, making the market a bit easier to break into for all kinds of home buyers for the months to come.

4. Welcoming suburban living

From urban living to suburban living, lots of home buyers have been slowly considering the charm of peace and quiet the suburbs bring from the hustle and bustle of city living. As lots of companies switch to long-term remote work, people can now choose to live outside the centre at a much more affordable price and just commute when necessary. This shift to living the suburban dream leads to lower prices for both suburban and urban housing units.

4 Tips for Home Buyers in 2022

1. Prepare for mortgage requirements

Housing markets are competitive and homebuyers must stay on top of the requirements and changes, especially when applying for a loan. Depending on the mortgage type, improving credit score, settling debts, and having a stable or increased income are a must for starters.

2. Maximize online resources and technology

Utilize virtual tours and appointments to save time and effort while researching neighbourhoods and houses. Social media has also made it possible to easily connect home buyers and sellers, making it easy to compare offers and avoid getting trapped between bidding wars.

3. Prepare a budget for housing and other expenses

Upon shortlisting neighbourhoods and houses to choose from, setting a budget is the next step. Have a budget for housing expenses to be used for maintaining or improving roofing, HVAC systems, and design (i.e. heating, ventilation, and air). Don’t forget to also have a budget for personal expenses, such as family needs and health concerns. After having a budget for housing and personal needs, make room for property taxes and homeowner’s insurance.

4. Save beyond the expected costs

When it comes to buying a house, savings are the first to be easily depleted. It’s important to save beyond the expected costs and the down payment so you can be financially secure even when the unexpected happens. After setting a budget, make sure to have a healthy amount of savings enough to cover at least six months of bills and essentials.

Make 2022 the Year to Welcome Your New Home

It’s never too late to buy your dream home. With these predictions and tips, let 2022 be the year you achieve your goals as a home buyer.

For more assistance, get a free consultation from the buyer’s agents at Buying Perth Real Estate. These experts have vast experience in real estate and they can definitely help you find the best property options. Contact Clive at clive@buyingperthrealestate.com or give us a call at (08) 6215 0200 or 0412 926 190.

How to Build a Property Portfolio

07/01/2021 Clive Elliott Investment Tips

If you are a property owner thinking about diversifying your investments, you are probably wondering where to start when building a property portfolio. Depending on your personal goals, financial situation, and risk appetite, it’s actually not that difficult to start acquiring and managing more properties when you know the right steps.

What’s a Property Portfolio?

A property portfolio is a compilation of investment properties owned by either an individual, trust, or a company. Managing a property portfolio comes with many benefits as well as many risks that need to be managed.

The Benefits of Building a Property Portfolio

It gives you a diverse income stream – Building a property portfolio can help give you multiple sources of income aside from your work, business, and other investments.
You can gain more equity – By acquiring more property, you can gain more equity in the long run.
You can increase rental profits – Over time you can increase rent on several of your properties that when combined can be a big amount.
Lessens risks – Having a diverse property portfolio in different areas can lessen risks of losing money.

Here are some steps that you need to take and figure out so you can start building your property portfolio:

Tips on Building a Property Portfolio

1. Define your investment strategy

Keep in mind that there is not one correct strategy when building a property portfolio. What is effective for one investor, might not be effective for another investor. So before anything else, you must define your investment strategy.

As I mentioned, there are many different ways to build your property portfolio and one thing you need to make sure is that you maximize profits while minimizing your risks. Are you planning to earn through capital growth or rental returns? Do you think a buy-and-sell strategy will fit your goals? Or is short-term leasing like renting out your house for Airbnbs popular in your area? Take your time to research your options to know which investment strategy fits your goals.

2. Use your property’s equity

You can speed up your property growth by leveraging the equity you have in your current properties. Your bank can help you determine how much your current property is worth and how much equity is in it. Once you have enough equity in your property, you can use that as a deposit for your investment property purchase by borrowing against it.

Saving deposits can take a long time. By tapping the current wealth of your property portfolio, you can add more properties.

3. Choose the right properties

Choose the right property to invest in. Whether you choose to focus on high rental returns or capital growth, you must make sure that the property is worth investing in. The main thing to consider when choosing a property is the location, location, location. As they say, location is everything. It will define how fast your capital will grow in a number of years or how in-demand your property will be for rentals.

Hire an experienced buyer’s agent in your area to have an expert that will help you scan the market and give you vital insights. Aside from their knowledge and skills, buyer’s agents have an extensive network and can help you find good property deals that you likely wouldn’t be able to find on your own. Buyer’s agents can also negotiate for you and can possibly help you save thousands of dollars.

With these steps, you’ll be on the right track to building your property portfolio. The journey to becoming a property investor might not be easy, but equipped with the right tools and the right mindset, it will definitely be much easier. Set realistic goals, always research, manage your risks, and seek help from experts so that you can achieve being a successful property investor.

Get a free consultation from the buyer’s agents at Buying Perth Real Estate to help you get started on building your property portfolio. Contact Clive at clive@buyingperthrealestate.com or give us a call at (08) 6215 0200 or 0412 926 190.

5 Tips for Moving with Children

07/01/2021 Clive Elliott Homebuyer Tips

Buyers purchase a new home because of various reasons. It can be because of work, a better community, or upgrading to a bigger home. Whatever the reason is, moving takes a lot of effort and needs a lot of preparation. It is more manageable if you are moving alone but moving with children is a different story. Moving with children can be extra challenging especially if they are at the age when they are very playful and keep running around the house. With careful organization and early preparation, you’ll be able to achieve a less hassle moving process. If you are planning to move to a new home but are worried because of how it can affect your children, here are 5 tips for moving with children:

1. Pack up while they’re asleep or at school.

Packing can be challenging if you have children at home. Imagine sorting items to put in designated boxes while your kid messes it up and picks up things out of the box repeatedly. It will be a never-ending task. It will be extra difficult when you start packing their toys. You won’t be able to declutter or throw away items because once they see it, everything will suddenly become their favourite toy – even those that they haven’t played with for months.

Declutter and pack while they aren’t around. You can also ask your relatives or friends to help you with babysitting your children while you accomplish your moving preparations. Also, since you will start packing your items weeks (or months) before the day of moving in, opt for packing your children’s toys last. This is because your children will definitely look for those toys until your last day in your current home. Allocate a separate box for all toys to make it easier to sort.

2. Use colour-coded packaging tape.

When packing items, it is always wise to sort items according to certain categories. Some homeowners prefer sorting items per type, per owner, or depending on the area of the house in which it belongs. Regardless of how you want to do it, to make things more organized, use color-coded packaging tape to label your boxes. Labelling it using a simple marker will do but color-coded tapes will be more appealing if you have little children as helpers.

This organization method will be useful when your children insist on helping you pack. Using colourful tapes or cute stickers is a child-friendly method to train them how to sort items. You can assign one colour per category. For instance, you can use blue to label your son’s belongings, yellow for your items, green for your partner’s, and red for items from your kitchen.

3. Host a “see you soon” party.

One way to help your children cope with leaving your old community is by hosting a “see you soon” party. If your child has a lot of friends in your neighbourhood, it can be hard for him/her to leave. Give your child a chance to say goodbye to his friends by hosting a “see you soon” party with friends and neighbours. Exchange contact information with them and take a lot of photos. You can also talk to the parents of your child’s friends and plan a possible get-together or visit once in a while. Make the “see you soon” party memorable for your child so he will leave with a happy memory.

4. Create a memory board.

Your children will definitely miss your old home and neighbourhood. To lessen their longing, make sure to take a lot of photos of your current home and the areas in your community. Take photos of your children with their neighbourhood friends. Use photos from your “see you soon” party. Compile it and create a memory board or a scrapbook. Ask your children to create it with you. This is another way to make your children feel less anxious about leaving. Bring it to your new home and give them time to adjust to their new community. Your children will be sad to leave their friends and might show strong emotions about it. So be patient and help them adjust.

5. Visit the neighbourhood before your move date.

Before your move-in date, make sure to do a site visit. This is important not only when moving with children but is an essential part of the whole moving process. Bring the children with you when you visit the new house. Let them know what to expect. Spend a day exploring your new neighbourhood. Give them things that they can be excited about. By familiarizing them with their new environment, you’re helping them get ready with the adjustment and lessen their anxiety.

Give your children and yourself time to adjust

Moving to a new area can be a bit stressful to your children and even to yourself. Your daily routine will change, you’ll need to adjust to the new home, you need to find a new grocery store, you need to help your children adjust and be comfortable with their new environment – there’s just a lot that needs to be done! Don’t be too harsh on yourself and always remember that it takes time to completely feel settled and comfortable in your new home.

With all these tips, there’s no need to worry about moving with children. Early preparation is the key. To further lessen your worries and most importantly take the burden of house hunting off of your shoulders, do not hesitate to seek help from the experts at Buying Perth Real Estate. The experienced buyer’s agents are professionals who can help you find the home that’s perfect for you and your family. Just let them know what you and your children need and they will provide you with the best recommendations.

For a free consultation, email us at clive@buyingperthrealestate.com or give us a call at (08) 6215 0200 or 0412 926 190.

5 Benefits of Having a Pre-approved Loan

06/18/2021 Clive Elliott Homebuyer Tips

The first and probably the most important step in the home buying process is obtaining a letter of pre-approval from your lender. A mortgage pre-approval means securing a commitment with your lender. It means that your loan application has been pre-qualified and they will provide you with the financing of the property. Even if you ask your buyer’s agent, they will probably recommend you to get pre-approved early. Having a pre-approved loan has a lot of benefits that can make your home buying journey easier.

Here are five benefits of having a pre-approved loan:

1. It will help you plan your finances ahead.

By having a pre-approved mortgage, you’ll be able to know how much money you can borrow. Buyers should understand that lenders do not have unlimited funds that they can provide to anyone who applies. The amount of money that borrowers can borrow would depend on their income, credit score, debt-to-income ratio, and more.

Once you’ve determined how much money you can borrow, you’ll be able to plan your finances ahead. This is important as this will let you know the price range of the property that you can afford. When it comes to home buying, financial planning is a critical step. It will determine the type of property and the payment terms that are right for your budget.

2. You’ll have more time to look at the right homes.

Since you have set your budget based on your pre-approved mortgage, you’ll be able to determine the price range of the properties that you should look for. Inform your buyer’s agent about this so they can provide you with the best option and recommendations. By knowing what you should look for and with the help of your buyer’s agent, you can avoid looking at properties that are beyond your budget. This will save you from all the hassle. It will give you more time to assess and evaluate the properties that you can actually afford and easily narrow down your options.

3. Sellers will look at you as a serious buyer.

If you have a pre-approved loan when looking for a house and when making an offer to a seller, they will consider you as a serious buyer. This is because buyers need to go through a certain process for them to obtain a loan pre-approval. Hence, taking this extra effort would give sellers the impression that you are serious about the purchase. Having pre-approval gives sellers the confidence that you are backed by a mortgage company. They are assured knowing that you are capable of financing the property.

4. You’ll be able to give a strong offer and have negotiating power.

In most cases, having a letter of pre-approval provides the buyer an advantage when making an offer. Aside from being able to give a strong offer, you’ll be more confident to negotiate with the seller. Your letter of pre-approval is proof that you are a serious buyer. Even if you present an offer that is lower than the listing price, sellers will more likely accept your offer than a buyer with a higher offer price but without a letter of pre-approval. Since you have been pre-approved by a lending company, they know that you are more likely to push through with the final settlement.

5. It will let you have a faster closing period.

Since you have already accomplished various requirements during the pre-approval process, your lender should already have the information they need to finalise your loan. Should they need more information, it won’t take too much time to accomplish them. Having pre-approval will help speed the entire lending process. With this, you’ll be able to close the deal on time and enjoy your new home sooner. This would be convenient for buyers who need to move in immediately.

A letter of pre-approval isn’t just a simple piece of paper. It is proof of your mortgage company’s commitment to help you with the financing that you need to purchase a home. This piece of paper will give you a buyer’s advantage and make your buying journey easier.

There are more benefits of having a pre-approved loan. If you need help with buying a home or if you have questions about your mortgage loan application, ask the experts from Buying Perth Real Estate. They are experienced buyer’s agents with vast experience in real estate. Their knowledge and skills will make your home buying experience a breeze.

For a free consultation, email us at clive@buyingperthrealestate.com or give us a call at (08) 6215 0200 or 0412 926 190.

5 Things to Consider When Buying A Foreclosed Property

06/13/2021 Clive Elliott Homebuyer Tips, Investment Tips

If you are an aspiring homeowner or property investor who has a limited budget, you have probably considered looking for foreclosed properties. Foreclosed properties, also known as repossessed homes, are properties that have been seized by the bank because the previous homeowner failed to complete their monthly payments.

Many times, you can get foreclosed properties at a cheaper price than regular property listings. You can even find many great deals that might surprise you. However, you must still be careful when looking for foreclosed properties as you might chance a house that’s full of structural damage and hidden issues.

So before you buy a foreclosed property, here are some things you need to consider:

1. Determine your purpose

When looking for foreclosed properties, the first thing you should decide on is what you want to do with it. Are you buying it to live in it? Or are you planning to buy the property for investment purposes?

Knowing your purpose will help you know where to look and what to look for. You and your buyer’s agent will be able to do proper market research and will be able to eliminate choices that don’t fit your qualifications. It’s easy to fall in love once you see a good deal, even if it doesn’t have the features you need or it’s not in the ideal location.

2. Home inspection and title search

Once you spot a foreclosed property that’s ideal for you, consider conducting a thorough home inspection and title search. Many foreclosed homes have been neglected or abandoned by their owners, some even for years. While you can expect that it won’t be in its top shape, checking for foundational cracks, problems with pipes and roofs, and other structural and wiring issues can help you determine if it’s worth the price.

Since most foreclosed properties are sold on an “as is, where is” basis, you’ll get a chance to be prepared on how much you’ll need to to budget on repairs once you buy the house.

3. Learn Property’s History

Do your research and learn about the property’s history. Once a property is acquired by a bank, there is little chance that they’ll know the history of the property including any repairs and maintenance done in the past. The banks will not always reveal this information to the buyer. An experienced buyer’s agent knows how to find this info.

To learn the history of a property, you can try to look at any public records available and ask around the neighborhood. Your buyer’s agent can also help you with the background check because of their extensive network and connections. With a limited source of information, what’s important is to know some background on the previous owners, why the house was abandoned, and if there was anything that happened before that you should worry about.

4. Apply for a mortgage lender

Make sure that a mortgage lender has your back when buying a foreclosed property, especially if you are planning to get it through a property auction. Banks are often in a hurry to sell foreclosed properties off, so you don’t want to risk losing a property that you’ve been eyeing.

Check your finances and apply for a mortgage first, before you make any commitments to buy a property. With money and paper on hand, this will help you secure the property without any problems.

5. Think about extra costs

Buying a foreclosed property might seem cheap, but you need to consider the costs of all the repairs and maintenance needed. Some houses need more work than others and sometimes it’s all about finding a good deal. When calculating your budget, always think about the extra costs you need to spend to get the property in top shape.

Buying a foreclosed property definitely has its pros and cons. Once you find a great deal, you can definitely turn that abandoned house into your dream home or a great source of income.

A buyer’s agent has the expertise to help you find a great deal. With their years of knowledge and experience, you won’t have to worry about houses with red flags or hidden problems. Buyer’s agents will definitely help you from the start of your home buying journey until you close the transaction.

Contact Buying Perth Real Estate for a smooth and hassle-free home buying process at (08) 6215 0200 or 0412 926 190 and get a free consultation from us.

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