Real Estate News


First home buyer options - Which is right for you?


One of the primary reasons Australians choose to move is better housing. Who doesn’t enjoy living in a beautiful home that meets your individual taste and needs?Your first home should meet both your practical and psychological needs and in order to accomplish that, you might need to renovate, buy further afield or perhaps build from scratch. So, a dilemma arises for the Australian first-time buyer: what option is the best one? Renovating, buying something that’s move-in ready or building?We’ve outlined the pros and cons associated with each option below to help determine what would work best for you.Renovating-ProsTo start with, if you choose to get a home that requires improvements, this means that it will be more affordable than a similar home that already looks excellent in the same location. That is to say, if you’re eager to get a house but your budget is limited, this option might be better suited for you. Moving forward as you invest money in your home by...


How to calculate your borrowing power


One of the most important factors in your home ownership journey is the amount of money you can – or should borrow. You want to borrow enough that you can purchase the right property for your needs, yet you don’t want to end up out of your depth in debt. Most lenders rely on their own variation of a basic formula to calculate your borrowing power. They look at six elements of your financial situation – gross income, tax, existing commitments, new commitments, living expenses and buffer – to calculate your monthly surplus. This formula gives a good overview of your level of financial security, and tells lenders how much you are able to pay back each month. If you assess yourself based on a similar formula, you can have a realistic idea of how much you can borrow and whether you need to save and prepare a little more first. So how do all these elements combine to assess your borrowing power?Gross incomeThe lender will look at all your sources of income to calculat...


Increase your cash flow by claiming depreciation


The owners of any investment property that generates an income are eligible to claim significant taxation benefits. Of all the tax deductions available to property investors, depreciation is the most often missed. According to Bradley Beer, the Chief Executive Officer of BMT Tax Depreciation, a staggering 80 per cent of property investors fail to take advantage of property depreciation and therefore miss out on thousands of dollars in their pockets. “On average, most property investors can claim between $5,000 and $10,000 in deductions in the first year for a residential investment property. By simply requesting a tax depreciation schedule from a specialist Quantity Surveyor, an investor may be able to turn a negative cash flow investment into a positively geared asset,” said Mr Beer. So what is depreciation, and how much of a difference can claiming it make to an investors available cash flow? Depreciation is a non-cash deduction that The Australian Taxation Office...


How to choose between renting or selling your previous family home


If you’re choosing whether to sell or lease your prior home, it’s likely that you’re in a good position.To be in this scenario, you have probably secured another home, and have the financial capability and stress tolerance to cope with becoming a landlord. Or perhaps you aim to rope in help from a property manager.There is no solid answer for whether you should rent or sell your previous home. It depends on your personal circumstances, which means you have to size up the financial outcomes and implications. The biggest drawcard with leasing is the potential to build personal family wealth through cash flow and equity.There are some key factors that will help you to decide whether retaining the previous home is the right choice. Start by researching the rental potential in terms of both income and level of demand within your suburb. It is important to consider whether the income you gain from leasing that property will cover the expenses. Determining whether the inve...


Top 4 cosy winter home reno trends


With winter well and truly here, you’re probably thinking about how to make your home as cosy as possible. Well, there are a few key home renovation trends to help make your home a winter haven. Read on to find out more!1. A steam shower.A steam shower is the ultimate ‘it’ bathroom addition at the moment. With a focus on wellness and a rising trend in home spas, a steam shower is a luxurious bathroom addition and one that will definitely keep you warm and cosy this winter.To install a steam shower anywhere in your home, Saniflo’s Sanifloor can make this possible. Sanifloor is a grey water pump with the ability to pump water three metres vertically or up to 30 metres horizontally back to the sewerage mains, opening up the possible locations for your new, luxurious steamy home addition.Sanifloor can even be installed below the sewerage level, making this shower addition possible where conventional plumbing will not work, giving you complete design flexibility. Usi...


Will it pay off? How to know if it's worth spending your money on a home renovation


Dinner-party conversations can be dominated by a common theme: the discussion of new builds that leaves the comparatively simple idea of an extension or alteration on the sidelines.The dinner invitation normally stems from the couple who have just built their new home and they want to show it off.The mere thought of building from scratch, or a move, is too much to cope with for some. For those who have outgrown their home, the solution tends to be steered towards an extension, enticed by maximising every square metre to provide a large family home and, of course, the hope of boosting the profit when eventually sold.Residents in NSW have certainly embraced major alterations to their homes, pumping almost $2.902 billion into the economy during 2017 based on ABS Construction Work Done figures (seasonally adjusted). The value includes structural alterations, extensions, additions and conversions to existing homes.The value of alterations completed last year is a slide from 2016 at just o...