Don't Be Misled!

Normally we sow seeds to watch things grow, but each day we are brainwashed by advertising and marketing, and in some instances, we don’t even know that we have been brainwashed at all.  Now this isn't always a bad thing, but in some cases, it’s downright wrong!  And these are not the seeds that we want to see planted!

Where are we coming from you ask?  Well, of late we have been advised by a number of sellers that they have been contacted by individuals saying that they have a buyer for their home.  Well this is great news, and in addition, the buyer is willing to pay a lot more than the average!  Wow!  Paperwork is presented for signing to allow the transaction to proceed.  In this instance, a seller would need to sign an appointment for four days only (not 90 which locks them in).  This allows more than enough time for a contract to be signed. 

If you honestly do have a buyer – fantastic, but by chance (and this is common), there is no real buyer, then this is a case of ‘Seller Beware’!  Don’t just get caught up in the high price, ask for justification of the price and why.  Proceed with caution as once you have been told a specific price, the seed has been planted and you probably won’t get it out of your head.  Then when you do get a price with justification, disappointment sets in.  Get realistic, honest advice from the start and you’ll always know where you stand. 

We’re so excited to be moving into our own premises at 10 Second Avenue, Sandgate.  The renovations will be starting soon so watch this old cottage blossom back into its original style, with a twist!

State of Play

With interest rates at an all time low and major financial institutions following the lead of the Reserve Bank, now is a great time to borrow and purchase property.  All we need is more homes to sell!

Our local market has seen a trickle of properties coming onto the market with 175 currently listed for sale in 4017 (sourced www.realestate.com.au), a decline from March 2014 when we saw 401 and March 2013 with 477.  Every suburb has seen a similar decline but we all know that with every down market, there’s usually an buoyant   return.  We are seeing growth spurts and our local area is showing signs of improving.  Lets just hope it’s worth the wait!   

It’s interesting to see how some folk dive in head first without caution while others sit back and wait.  Confidence has a lot to do with this, as does finances and circumstances outside our control like elections and the weather.  We adapt to the changes presented to us and its no different with the property market. 

As with every industry, real estate is governed by legislation and strict guidelines.  There are specific rules covering the advice an agent can give.  Sellers need to be mindful of the information they receive from an agent and ensure that it is backed up by current and valid facts.  If it sounds too good to be true or you are in doubt, don’t just take it as truth, seek further information.  

Buyers can also be well prepared and armed with all kinds of information but forget the simplest of things.  Do your research but make sure you also make use of free services such as Brisbane City Council, which is a fantastic resource.  If in doubt call them and talk to a Town Planner.  We all have a role to play—seller, buyer and agent, and we’re all accountable for our words and actions.  Rather than jumping in head first, sitting back and taking a breath is the best place to be.

We’re excited to announce we’ll be moving into new premises soon—just a hop, skip and jump over the road to 10  Second Avenue.   Some renovations are required before we take up residence and this quaint cottage will be transformed into what we believe will be a showcase for Sandgate! But for now it’s business as usual— and if you need us, we’re still available to help you.  Just call! 

Time to Move!

Our thoughts go out to all those affected by last week’s floods.  This appears to be an ongoing event that we hope we don’t see again too soon.  Unfortunately, I think we will! 

Can you ever prepare for this type of thing?  It’s supposed to be a 1 in 100 year event or we’ve even heard it said 2,000 years!  I don’t know about you but really!  This has now happened at least four times in the last 2 years.  Why?  It’s been said that back in the 74 floods, our area didn’t flood, and yes, that is true.  However, that was over 40 years ago and so much has changed - building codes, demand on style like low-set bricks, lifestyles, etc.  All these changes contribute to the natural water flow and where all the water goes.  All we can say is ‘be prepared’ for the next flooding as it will come! 

We have just gone unconditional on our new premises at number 10 Second Avenue, Sandgate, and after some renovations, this quaint cottage will be our new home.  We will be taking up residence from 1July 2015 so watch and see what can be done to this little cottage.  

Never Forget

Each year we stand to remember those that have fallen.  It’s a time of reflection to honour those that fought for our country, not just in one war, but all wars.  The ANZAC’s legacy to us. 

Here’s something to ponder - in 1914, the population of Australia was 5 million.  Of these, 416,809 people enlisted (57,705 Queenslanders) with a casualty rate of 64.8%.  Comparing these statistics to today – our current population is 23,794,573 and counting, just fewer than 2 million would have enlisted with around 1.3 million casualties.  Even though these figures are not to our liking, being able to acknowledge our ANZAC’s each year reminds us of a part of our history that we don’t want repeated, for us or future generations.

Somewhere along the line every one of us has been touched by the actions of past generations and what they gave up in order for us to benefit.  Taking a moment to put ourselves in their shoes and everything into perspective in today’s circumstances gives us the opportunity to show our gratitude and be thankful for the lives we live today. 

On Saturday in Australia, real estate agents are not able to make any transactions, and as such 2^nd Avenue Realty will not be holding any open homes and our office will be closed.  

Be Prepared

Arranging finances before you even look at buying property is far more practical than looking at homes that may be unaffordable.  There are so many companies offering a variety of good rates and options and all agents would highly recommend that if you can’t go through the process of having pre approval, at least talk to someone who can at give you an idea of affordability.

Once you have an idea of repayments, you can start looking.  But beware!  Some of us have a tendency to live outside our means so set a realistic budget that you can comfortably afford. 

Real estate agents are not financial advisers and as such are not qualified to give indications or financial advice.  Finance is, however, one of the many things that is required to buy property, and if you are prepared, life is a lot easier for all parties.

Once you've found your dream home, you’ll feel far more confident when putting an offer in writing.  Be prepared to negotiate and allow a bit of leverage so your budget doesn't blow out!  This advice also applies to those thinking of selling as somewhere along the line, you’ll be buying too!

Accountability

How accountable should we be?  Well, in everything we do, or in some cases don’t do, we should all be accountable for our actions!  We make so many decisions every day - about work, life, etc.  These decisions and actions can assist us achieve great successes, and give such joy it becomes infectious, while others are not so good and can lead to negativity.  Either way, they help build us into the people we are.

 

When it comes to property, home owners are accountable for the disclosure of information about any renovations, additions, building work, decks etc that has been done to their home.  Once the decision to sell has been made, the owners should gather all the evidence or supporting documentation they need to cover themselves should eg, plans, approvals etc.  They should inform their selling agent of this information and make it available for perusal to any potential buyer.  This is an open, honest and transparent transaction! 

If a seller decides not to disclosure such information to their selling agent, who do you think is accountable for the non-disclosure - the seller or the agent?  Unfortunately, the majority of buyers will always blame the agent!  This is an unfair assumption that is another issue altogether.  Whatever disclosure, or non‑disclosure, a seller decides to make – they should also be conscious of the future negative outcome their actions may have on a buyer.  No one would like to be left in an unpleasant situation. 

OMG!

Is this the turning point for property?  How long can prices continue to go up?  These are just some of the questions being asked.

In Sydney for instance, a small brick cottage on a medium size block recently sold for over $3m in Marrickville.  Now, it may take some time before our area ever catches up to Sydney prices, but really what are people thinking!  There are a lot of southerners living in our community and they would know and appreciate that the Marrickville equivalent in Brisbane would only achieve the mid $500K.  There is such an imbalance in the property market from state to state!

It would be a miracle for a small cottage in our local community to sell for over $3m, or it would have to have an oil field on it to achieve this price, but we can never say never!

But there is a bit of a lull in our local market at the moment with very few homes being listed for sale.  Buyers are eagerly waiting, but they will only wait for so long!

Obviously, from an agent’s point of view, property is still the best investment that anyone can make!  So, if you need any help or just ideas, please let us know!