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Story via @REIWA

 

14 September 2016
Author: Samantha Jones

Renovating a house is not for the fainthearted. It can be time consuming, effort intensive and often expensive, so it’s important to know what you’re getting into.

Before kick starting a renovation project, make sure you’ve addressed these questions.

1. What exactly do you plan to renovate?

This question sounds easy enough, but you might be surprised at the ripple effect renovating one room can have on the home.

You want any improvements you make to be seamless and fit in with the design of the original home. Modernising one area, like a kitchen or bathroom, may look out of place if it doesn’t blend well with the rest of the home.

You will also need to determine how involved the renovations will be. Are you planning a small upgrade to one or two rooms, or something more extensive like an extension? You’ll need to establish a rough timeline of how long the project will take and whether or not you can reside in the home for the entire duration. If not, you’ll need to figure out where you will stay during this time.

2. What is your budget for this project?

Establishing a budget from the outset and working to it is key. How much money are you willing (and able) to spend on this renovation? Does this money cover your wish list or do you need to readjust your expectations?

Over exerting yourself financially is risky. Be realistic and work to your budget. You can always stagger the project and get to some of the less crucial items on your list later down the track.

3. Will your renovations add value?

Improving a property’s capital value is often a driving factor behind the decision to renovate. If your plan is to renovate so you can sell your house at a better price, then you need to be strategic about what features and additions you choose.

A REIWA buyer’s agent can help you identify what renovations should be carried out. They will carry out due diligence on your behalf so you don’t overcapitalise and help ensure your renovations fit in well with the neighbourhood, street and original design of the home.

As well as being able to determine the end value and research sought after features in your area, they’ll also contact your local council on your behalf to make sure your renovations adhere to local regulations.

On the flipside, if you plan to live in the home long-term and your primary motivation is to improve your personal living experience then you have more freedom to make changes that suit your unique preferences.

4. Will you engage a professional or is this a DIY project?

Whether or not you engage a professional designer and builder to oversee this project is likely to depend on the size and scale of the renovation.

If it’s a small improvement, you might feel comfortable completing the project yourself, however if it’s a big job it’s probably smarter to use the services of a professional like a buyer’s agent to ensure the best people are on the job.

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Via @REIWA

19 September 2016
Author: REIWA President Hayden Groves

New apartment complexes are popping up all over Perth which has led to more West Aussies opting to purchase an apartment off the plan before or during construction.

What is an ‘off the plan’ purchase?

Off the plan refers to property purchases that take place before the property is completed and/or the Certificate of Title has been issued.

A deposit is paid by the buyer and settlement occurs when the apartment complex is completed, which could be several months or years later.

If you’re considering making an off the plan purchase, it’s very important that you’re aware of the commitment and that you read the contract to know exactly what you’re buying and what your rights and responsibilities are.

How does buying off the plan differ to a regular property purchase?

Buying off the plan is quite a different process to buying an existing house and the contracts are often lengthy, complex legal documents.

If the property is an apartment then you’ll be buying a strata titled lot and the developer has probably drafted a set of strata by-laws, so make sure you read and understand what these by-laws are.

Before making an offer, check to see if it can be subject to finance approval. This may not be possible because a lender can’t make a lending offer that lasts for an extended period, but it can’t hurt to ask.

If you fail to meet settlement, the sellers may have the right to cancel your contract and re-list the property for sale. If the apartment resells for less than what was agreed in your contract, then you may be exposed to the possibility of being sued for any shortfall.

Bear in mind that if the development has not yet commenced construction, there is no guarantee of it starting as the developer will often need to achieve a significant number of pre-sales in order to proceed. Therefore, it’s wise to enquire about any clauses in the contract that permit the seller to withdraw if their sales targets aren’t met.

Benefits of buying off the plan

Off the plan sales can be a great opportunity to buy into an exclusive development in a location you want to live in. Plus, it can provide an extended period of time to plan your transition with ample time to sell an existing home. As a buyer, you may also get the opportunity to choose from a range of finishes for tiling, floor coverings and cabinetry.

When buying off the plan, be sure to ask the real estate agent lots of questions, gain an understanding of the timeline to completion and ensure you read and understand the contract and by-laws.

Couple buying a house with a real estate agent

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via @The West Australian

Real Estate Institute of WA President Hayden Groves said the mining downturn had had a big impact.

Four years ago 1500 people a week were moving to WA, that’s now dropped to just 150 a week.

Across Perth in the past year, the median house price has fallen by 4.8 per cent.

Since the peak in 2014, the reduction is more like a 6 per cent.

In Melbourne, prices have increased by 8.2 per cent in the past 12 months.

The list of Perth’s cheapest suburbs is dominated by the south – three suburbs now have a median price of $300,000 or less.

View the Video and more of this story here.