Blog on Real Estate Tips for First Time Buyers

Preparing for the Real Estate Settlement Process

Mon, 05 Mar 2018 16:28:52 +0000

After a long and intense search for a property, negotiating pricing with the seller and finally reaching a deal, the settlement (or closing) process marks the end of a long journey. However, the settlement process should not be misconstrued as a simple and quick activity.

Settlement is often one of the most important steps in legally transferring the property ownership from the seller to the buyer. It's during this step that actual paperwork will be signed to cement the transaction and make it legally binding.

It's therefore important for you to prepare yourself for this important step. It's in your best interests to ensure that all the required processes are carried out correctly.

Step 1: Decide on the closing date

After negotiating and agreeing on a price with the seller, you will decide together on a date when the actual settlement will occur. You should propose a settlement date that is convenient for you and fits your financial timeline as well as your moving plans. When purchasing a home, the closing date that you select should take into consideration your mortgage processing time. You should ensure the mortgage clears by the time the transaction is being settled to avoid any delays and complications.

In addition, plan your settlement date to be around the time when you plan to move into your new home. This will enable you to minimise any additional costs that you would otherwise incur (such as extra rent or storage expenses).

Step 2: Prepare the necessary documents

Gathering the required paperwork is perhaps the most important part of settlement. There are many different documents you will need to have ready, such as the purchasing contract, mortgage documents, home appraisal reports and homeowners insurance documents.

Preparing all these documents can be quite time-consuming and stressful. It is often a good idea to work with a settlement agent to ensure that all the required paperwork is in place. Settlement agents will work on your behalf to gather and crosscheck the necessary legal documentation in preparation for closing.

Step 3: Prepare for closing costs

Unfortunately, the closing/settlement process is not free. There are several expenses that you will need to incur for property appraisal fees, paying your settlement agent, application expenses for various legal documents, and credit reports in connection with your mortgage. Preparing for these costs early will help you avoid any unpleasant surprises on the actual settlement day.

Contact a real estate agent to learn more about buying homes.

Selling a Property With Asbestos? Here's What You Need to Know

Fri, 02 Mar 2018 09:52:46 +0000

If you are selling an old property that was built before the 90s, there is a high chance that the building contains asbestos. Asbestos was used in building materials such as insulation, flooring and wall tiles, siding, door gaskets and roofing materials. Builders preferred it due to its impressive fire-resistant properties. Unfortunately, the government banned it because it was associated with respiratory complications, including mesothelioma and asbestosis. When you are selling a property that contains asbestos, it is critical that you take the following measures to avoid adverse legal implications after the sale.

Disclose the presence of asbestos

Do not close a sale without informing the buyer that the building has asbestos. In most cases, a building inspection would unearth the presence of the compound in building materials. However, this would put you in the spotlight if you hadn't informed the buyer. Let the buyer know that the house has asbestos as you disclose other issues about the property's structure. It will be up to the buyer to decide whether they will proceed with the sale or find another house. If they like the home, they can consider hiring asbestos services to take abatement steps to avoid the risk of exposure to the hazardous material.

Get professional advice

Asbestos is a dangerous material which can cause severe health complications. It is only fair that you consult with an expert before selling the property to an unknowing buyer. An asbestos expert will recommend whether to remove the asbestos or leave it undisturbed. If the fibres are still intact, the inspector can suggest that you leave them as they are. However, you would have to inform the buyer not to disturb the asbestos when carrying out remodelling or renovation projects. On the other hand, if the fibres are loose, it may be a good idea to remove the asbestos before selling the property.

Prepare for price negotiations

The presence of asbestos in your property could cause the price of the building to go down. If you sell without removing it, the buyer may ask for a lower price so that they can cover the cost of asbestos removal. Prepare for such changes in the sale price of your property and be open to negotiations. Remember, the thought of buying property that has asbestos will cause anxiety in most people. If you find a willing buyer, don't shy away from lowering the price a little.

Follow these tips when selling a property with asbestos. Seek professional advice before listing the property so that you can learn and weigh your options.

Why Retirement Apartments Are Better Than Conventional Homes

Tue, 27 Feb 2018 10:18:26 +0000

Are you retired and looking for a perfect place to spend the rest of your years? Do you have aged parents and are seeking an ideal residence for them? If you are faced with either of these situations, then you should consider getting a retirement apartment. Below are reasons why purchasing a retirement apartment is better than getting a conventional home.

Custom amenities

Retirement apartments are built to specifically cater for the needs of the aged. As such, their physical capabilities are taken into consideration during the design and construction phases. An example is the construction of the entrance to each apartment. Most conventional apartments have several steps that one has to climb before they can get into the building. However, such a feature is unsuitable for the aged since some of them use wheelchairs. In retirement apartments, there are ramps that you can use to facilitate easier movement. Additionally, all the fittings and the fixtures in the house are placed strategically so that the tenants can access them. The switches of most houses are placed between four and six feet from the ground, which can be challenging to reach for most aged people. The retirement apartments, therefore, offer a comfortable living environment for them, since everything is accessible.

Better social company

Residential areas usually consist of people from different backgrounds, ages and careers. As such, they can be quite noisy, and this is not an appropriate environment for an aged person. Imagine wanting to take a nap in the afternoon, only for the person living next door to start playing some music on full blast. These issues cannot arise when you decide to live in a retirement apartment where all tenants are aged and want peace. Interacting with other elderly people can also be better than having to deal with restless young people.

Care services

There are very few residential estates that offer medical care services to their residents. It is therefore almost impossible to get a healthcare facility on the premises. If you are aged, this can be an inconvenience since many older people require regular care. Most are also on medication that have to be taken and refilled regularly. This factor is often taken into consideration during the development of retirement apartments. Apart from having a central medical care facility in the residential complex, there are nursing stations in each building. This ensures that the residents can easily access medical care services.

4 Benefits of Living in Gated Communities Instead of Single Housing Units

Fri, 23 Feb 2018 10:14:15 +0000

When selecting a home for rent, you can find it difficult to decide whether you should live in a gated community or a single housing unit. Below are some of the benefits that you will enjoy when you choose to live in a gated community instead of single housing units.

Social amenities

Gated communities have numerous social amenities for residents. Some of these include retail stores, parks, playgrounds, clubhouses and daycare facilities. These ensure that the guests are comfortable and can access any service that they need without leaving the gated community. If you decide to live in a single housing unit, you will have to locate each of these amenities independently and this can be costly if the house is some distance from the nearest town.

Reduced maintenance costs

When you decide to rent or purchase a single housing unit, you will be responsible for all the maintenance costs. This is in addition to the amount that you will have to spend on utilities such as electricity and water. However, most of the maintenance costs are shared across the tenants living in a gated community. In most cases, there is usually a maintenance crew whose only duty is to ensure that all the houses and the compound within the gated community are always in perfect condition.

An ideal social environment to bring up kids

Gated communities provide an ideal environment to bring up your children. This is because they are secure and also provide an opportunity for children to interact with their age mates, which helps in their development.

Compliance with regulatory requirements

There are regulatory requirements that determine which type of houses should be constructed in particular areas and the type of materials that should be used. When a landlord is building a single unit, some of these factors can be ignored, especially when they cannot be easily noticed. However, construction of gated communities requires a significant investment and the developers will make sure they comply with all regulatory requirements. This is to protect their investments and prevent inconveniences that can arise when the authorities conduct an investigation and find some conditions have not been fulfilled.

Additional factors that you can take into consideration include your budget and the location of the housing units. The best approach, therefore, involves getting an experienced housing agent who will take time to listen to what you need before presenting you with the available options.

Home Inspections You Should Have Done Before a Purchase

Wed, 21 Feb 2018 16:56:04 +0000

Before you purchase a home, no matter its age or overall condition, you'll want to put it through a number of building inspections. Some general inspections, such as for the roof and the home's plumbing pipes, might be required by your mortgage lender, but there are other inspections that can still tell you if the home is a good value, or if you'll be looking at major repairs in the near future. Note a few suggestions on home inspections to have done before a purchase, and why they can be so important.

Heating and air conditioning

A standard home inspection might note if the furnace and air conditioner are functional, but an inspector may not actually examine those appliances thoroughly. An appliance inspection can check if an internal exchange is cracked or if the bearings of the motors are worn and failing, for example. If the furnace or air conditioner of a home are more than a few years old, it can be worth having them inspected inside and out, to note needed repairs.

Chimney

As with the heating and air conditioning, a standard home inspection might check the exterior of the chimney for cracks, but a chimney inspector can check the inside of the brick for damage, soot build-up, and the like. It's also good to have the flue tested to ensure it's working and that smoke is leaving the chimney properly.

Soil stability

If you're buying a home on a hilly lot, or if the area is prone to sinkholes, it's good to have a soil stability test done. This can note if a nearby hill might be ready to crumble and create any type of landslide, or if the soil is overly moist and sinking in any area. Moist soil can lead to damage to a home's foundation as the home itself shifts with the soil, so testing that soil before a purchase can tell you if you would need to stabilise it with lime, clay, or another solution.

Tree inspection

Decaying trees can be a hazard; branches can fall and take power lines with them, and cause damage to anything on which they land, including the home, the garage, and even your car! Trees can also be a host to termites that might eventually make their way to your home. If there are any large and mature trees on the lot of the home you're considering purchasing, it can be good to have them inspected by an arborist, to check their overall health and for any pest infestation.

What to Look for When Buying Your First Home

Thu, 15 Feb 2018 11:23:44 +0000

Human nature being what it is, it's easy to fall in love with a material object simply due to its outward appearance. For example, you may drive past a potential new home and be smitten by its outstanding curb appeal. However, you've really got to dig deeper and certainly not judge this particular book by its cover. What do you need to be on the lookout for, when you're in the market to buy a property?

Bugs!

In Australia, termites will probably be on the top of any list. You may never have come across these particular bugs before, but their names should strike terror into your heart. Despite their diminutive size, they can invade a home in huge numbers and literally eat away supporting beams, studs, joists and everything else wooden. They can virtually destroy a house in the worst-case scenario, so make sure that you treat them as public enemy number one during property inspections.

Roof Line

Next, have a good look at the roof, as this can be a source of major trouble. How old is the cladding? If it's not that old and your roof is still leaking, it could be an issue with the timber frame itself.

Ceilings and Walls

You can also look for issues along ceilings and walls and pay attention to larger cracks. Certainly, some of these will occur in the normal course of time, but if you can see a pattern of cracks, possibly accompanied by an uneven floor or ceiling, then you need to look into this more.

Listening Carefully

If your potential new home has more than one floor, listen carefully as you walk up the stairs. If you can hear any creaking, especially as you get to the next level, this could indicate an issue with the supporting joists and may have something to do with those termites, again.

Mould and Rot

Be on the lookout for rot in the timber floors or uprights. Often, insufficient ventilation can cause water to sit in place rather than evaporate, and when this happens, mould leads to deterioration.

Windows and Doors

Open each window and door in the building systematically and make sure that they close easily without any obvious issue. Sometimes, the ground underneath the home may shift, affecting the foundation, and while some movement can be expected, major issues need further investigation.

Don't Be Fooled

It's important to look very closely, even though outwardly the home may seem to be perfectly kept, well painted and in good condition. Make sure that you bring in an expert home inspector before you even think about making an offer on that "dream" home.

How to Make Sure That You Get the Right Type of Manager When You Expand Your Property Portfolio

Wed, 14 Feb 2018 11:23:02 +0000

If you're a growing real estate investor, then you may already have a very diversified portfolio. You may be looking to expand even further though by adding a multi-family unit, such as a block of flats. In this case, however, you have some additional issues to consider, including a fairly complex management structure. Before you go ahead with this type of acquisition, what type of manager do you need to take the strain?

Crucial Choice

Effective strata management is very important for a multifamily development, as the needs of many different parties have to be catered for, in addition to the management of the common areas. The strata manager needs to have a number of different skills and character traits and you need to choose carefully.

Integrity

Firstly, ensure that they are always impartial and have complete integrity. They must treat everybody impartially and with fairness, while always having the interests of the owner's corporation at heart.

Knowledgeable

It's best to find someone who has previous knowledge when working in this type of situation. It can certainly help if they have a good understanding of property law, accounting and a general understanding of building construction principles. The best manager is an all-rounder who may have several different career paths, especially when those include a variety of different commercial engagements.

Educated

Strata managers need to have appropriate licensing in order to be certified. There are a variety of different training courses available in this field and these can augment the basic qualifications needed for an effective management position.

Personality

The most effective strata managers have a very pleasant personality that allows them to get on with all different types of people. Having said that, they should always be fair but firm in their dealings and gain the respect of everybody involved, from inspectors to contractors and from owners to tenants.

Proactivity

Finally, ensure that the strata manager that you engage to handle your affairs is proactive and able to get things done without constant reference to your office. This doesn't mean that they should have a completely free hand, necessarily, but that you can trust them to help you make the most of your considerable investment here.

Choosing Carefully

When you have a great team at your side, you should be able to take on the purchase of a multiunit property without fear, to add a significant extra level to your portfolio.

Preparing your belongings for storage

Mon, 12 Feb 2018 15:34:31 +0000

When you think of moving house, you often imagine simply packing everything up at one end and taking it immediately to the new home. However, every move is different, and this type of single journey isn't always possible. When there's a gap between moving dates, or where there's simply too much to fit in the new location, a self-storage unit can be invaluable. Before you store your things in one of these secure spaces, you'll want to make a few simple preparations.

Pack securely

Start your packing well in advance of your move, beginning with items you don't use every day such as books or out-of-season clothing. Be sure not to overload your boxes; a box completely filled with dense items like books may be in danger of splitting or be too heavy to lift easily. Instead, put down a base layer of heavier items such as books and fill the remaining space either with packing material or with lighter items like clothes or bedding. Fill the box as completely as you can and close it securely with packing tape.

Simplify

Boxes are simple enough to move, but larger items like tables, desks and bookcases can be more of a challenge. Before putting them into storage, disassemble them to make them easier to move. Remove drawers and shelves; if possible, separate table and desk legs. Make sure you keep screws, shelf supports and any other spare pieces in clearly labelled bags; you don't want to lose them. Protect vulnerable surfaces like tabletops by wrapping them in furniture blankets; your house removals firm should be able to provide these for you. If you don't have furniture blankets, you can use old bedding. Secure it by wrapping it in stretchy plastic film. Be sure to take your tools with you when you move into your self storage unit, as you may find it convenient to reassemble bookcases or shelves to make storage easier.

Label clearly

You'll need to know what's in your boxes, both for retrieving items you need from storage and for when you move them out. Label each box clearly in permanent marker. Think about how you're going to stack or store your boxes; there's no point writing a box's contents on the lid if it's going to be in a stack, and there's no point in labeling only the short end if the long end will be the visible one. Keep a spare marker in your storage unit in case you need to update a box's description.

Staging Your Home for a Successful Property Sale

Mon, 05 Feb 2018 13:35:16 +0000

The prospect of selling your home and embarking on a new chapter of your life can be quite exhilarating. The excitement that comes with this feeling is also what makes most potential sellers optimistic about the market price that their property will fetch. Not many people actually go into a property sale assuming that they will take a loss, particularly if they have taken pains to ensure that the residence is as tiptop as possible. Nonetheless, you may put measures in place to ensure that your home is functional but I it not aesthetically appealing, you will find it difficult to land a buyer. Not to mention, the added risk of your sale price not being matched. Here are tips that can come in handy in staging your home for a successful property sale.

Declutter your furniture pieces

When it comes to decluttering a residence for a potential sale, homeowners tend to focus on eliminating personal belonging that gives the space a character of its own. Although decluttering critical when attempting to present a blank slate to potential buyers, it is not the only form of decluttering that you should undertake. When clearing up your space for staging, you should also remove any pieces of furniture that do not add to the functionality of the area such as extra chairs, ottomans, children's furniture and whatever else you can think of that would not necessarily appeal to your potential buyers. Keep in mind that the entire reason for personal staging it to help buyers see the home as their own rather than visualise it as yours.

Paint the interiors neutral

Another tip that most people overlook when staging the home is repainting the residence. Some homeowners will assume that it is better off leaving the walls with their chosen colour scheme so that potential buyers will have the chance to repaint the property with their preferred colour selection. It may seem that repainting the home will cause the potential for double work being done, but you it is advisable to embark on this project to give potential buyers room to envision their style. If you have a focal wall or have unique colour choices for your interiors, you would be better off with having the entire home painted in a neutral palette that allows your buyers' creativity to run amok. Moreover, a fresh coat of paint would also go a long way in camouflaging minor imperfections such as cracks in walls, discolouration and so on.