You’re thinking about putting your home on the market. The place you worked so hard for. The house you raised your kids in. The home that holds so many memories. Chances are, it’s one of your most important assets and you’re wrestling with the emotion of pricing such a valuable commodity.
According to a recent survey, most sellers have unrealistic price expectations. The data showed 92% of agents believed that vendors price expectations are too high when selling. This was supported by the number of sellers (36%) who had expectations of up to $50,000 above the market price. In addition, 55% of agents agreed that the homeowner’s expectations are above market price expectations by $50,000 or more.
Here at Perspective, we know you love your house—that killer kitchen, the beautiful swimming pool and all those sentimental memories. But we also know what happens when you price a property too high.
Sales Consultant, Adrian Stroh, says the price of your property can make or break your success. “If you decide to price your home too high, it may take longer to sell. The longer it’s on the market, the more doubt you’ll create about whether there’s something wrong with your home. A high price can also help sell other properties around you in comparison—buyers may think they’re snapping up a bargain.”
So how do you set a reasonable price on something that has so much value to you? Adrian believes it’s all about doing your research and getting a second opinion. “I suggest visiting open homes, viewing current listings online, getting professional advice from a local real estate agent and listening to their feedback about your home,” he says.
Adrian takes us through the ways a professional agent can help you form realistic expectations about the worth of our homes.
Carly walks over to her mailbox. She’s nervous because it’s at the three months mark and she’s expecting that dreaded energy bill. She grabs the envelopes inside and soon becomes aware that the bill is staring back at her. Carly rips it open—just like a band-aid—and unfolds the paper quickly. Her heart races, stomach sinks, and the dismay overcomes her as she realises that it’s 15% more than her last home’s bill.
“As my husband and I built our dream home, we thought we’d live there for the rest of our lives. Our spacious 3 bedroom in Casey was designed exactly how we envisioned it.
As with any first house, effort and love was present and a lot of sentimental memories were created—from married life, to bringing our first child home.
Within a few years, it dawned on us that we faced a lifetime of large mortgage repayments, insurance, and utility bills.
It also started to feel like every spare minute of our free time was taken up by taking care of the house—cleaning, gardening, painting, renovating and household chores. Was this really our vision of life?
We began to ponder selling the dream home and moving into something smaller. But how could we with a 2-year-old? Would there be enough space or room for her to play? What would happen when she gets older and wants to play sports?
Today my husband, my 4-year-old daughter Sofie, and I live in a 2-bedroom apartment at ‘Infinity Towers’ in Gungahlin and we have never looked back.”
This is Cass Atkinson’s experience.
But how relevant is this to Canberra and people like her? We’ve seen a trend of young families looking to downsize to reduce their workload and enjoy their lives, just like retirees and empty nesters.
We spoke to Cass, and Will Honey, Principal at Independent Property Group Tuggeranong for their advice on downsizing with children.
Admit it, we’ve all been swept up in the cheer of the of the holiday season and made ambitious resolutions for the new year—from having a healthier lifestyle to improving your foreign language skills. It’s definitely a time of the year that inspires us to reflect and figure out ways to better ourslves.
Now that we’ve started a new financial year—hooray—it should also be a time to start your new financial year resolutions. In fact, it’s the perfect time to re-evaluate your finances and find ways to improve of your property investments ahead of your next tax return.
Here are four new financial year resolutions you might consider to take charge of your property investments and maximise their potential.
Exercise a healthier investment strategy:
Many mum and dad investors got into the game through life circumstances, and not a lot of thought was put into what type of investment strategy suited them best. Should they buy and hold? Be negatively geared? Positively geared? Is passive property development something they should look into?
The first step in reassessing your strategy is to determine if your current one is working for you. How do you know if it’s working? This all depends on which one you have chosen, but overall if you’re getting the desired return and see future growth, you’re moving in the right direction.
If you think your property can do better, chat with a financial planner about your circumstances and what options are out there for you. Also, speak to an agent who can look at your rental returns, the tax benefits you could be taking advantage of as well as the expenses associated with your property including asset management fees. An agent can also analyse and benchmark the performance of your strategy and provide possible alternate options. Continue reading
Working out whether to jump onto the property ladder or continue renting can be a confusing decision. Especially when housing affordability is such a huge issue in Australia.
Luckily, the ACT annual budget which was handed down earlier this year has changed the game for new home buyers—and heartbeats are racing. Continue reading