Recent news of the banks borrowing criteria may mean you have to make sure you are pre-approved first, before buying.

If you’re currently in the market for a new home or planning a purchase soon, the lenders are tightening up lending policies and applying more scrutiny to home loan applications.The banks have had their lending procedures examined very closely by the recent banking royal commission, and were shown to be coming up quite short when it came to verifying information that was being submitted by applicants around living expenses or current commitments. As a result, they have implemented policies and procedures to be more thorough in checking these details in the future.

Some of these changes will include applicants submitting household budgets. They are even looking as close as Netflix subscriptions and other monthly commitments. So now more than ever is a good time to prepare yourself and get an updated pre-approval in place.We are accredited with BankSA and can arrange an appointment with a mobile lender who can come and see your or meet at our office. Call us in 1300 723 615.

Marketing Strategy for Property Sales is Important

There are few assets larger than your home, so when it comes to selling it you need to treat it the way you would any other business transaction. Sure, a home comes with more memories and sentimental attachment, but the goal to ensure as many people have heard about your home is on the market as possible. As a guide most people will spend up to 1% of the properties value on marketing, with the average of about $3,000-$4,000.

There was once a time when your real estate agent would put an ad in the paper, hammer a signboard in your front yard, and then wait for the buyers to come. Today however, there are more marketing options available than ever before. This means it’s no longer enough to choose one or two marketing mediums and call it a day.

The internet has obviously come to play a very important role in how people buy and sell real estate, so a property listing on one of the main property websites is an essential ingredient in any property’s marketing campaign. But, since a fundamental characteristic of the internet is that it prioritises newness and with hundreds of new property advertisements going online every day, it’s easy for a single property advertisement to get lost fairly quickly. Thats why an agent takes numbers at the door. Not only for security reasons, but to stay n touch with these buyers until they buy. We also prepare the client to get ready to purchase, when they find the right home.

Not only that if people cannot find what they are looking for, they give up. Did you know 40% of buyers, buy in the same area? So the old letter box "Just Listed" method still brings in the buyers to your home.

Striking the right marketing mix

In addition to online advertising, your sales agent will also make other marketing suggestions, based on your property, current market trends, your budget, and the buyers you are seeking to attract.

Signboards: Are still an integral component of any marketing campaign, and most agents will insist on them. Signboards help to attract buyers that may not have originally considered buying in your area, while also attracting the attention of passive buyers, who may not have even considered buying until they saw your property for sale. They’re also very effective at cutting through the internet noise and attracting the attention of active buyers. Some agents will use SMS marketing on signboards to "push" information to the buyer, but also gain their contact number and set an appointment.

Newspaper advertisements: Display advertising in your local newspaper, although expensive, is still one of the most effective ways to market property today. It still attracts a certain buyer to open homes.

Social media: Social media companies like Facebook and Twitter have amassed boatloads of data in their years of existence, which you can use to your advantage by using either medium to advertise your property. So if you’re looking to target certain buyers, social media offers you a cost effective way to reach those people.

WeChat is a Chinese portal we advertise property on to attract mainland Chinese as well as local Chinese residents,students an Malaysia/Singapore clients.

Email marketing: Just as social media companies have amassed boatloads of data, so too have real estate agents. I’ve sold plenty of properties in the past by contacting my database of pre-qualified buyers, who’ve either expressed an interest in a particular type of property or who have missed out on a very similar one in the past. Email marketing is an effective way to put your home in front of active buyers, who are actively looking for a property just like yours. Open rates on database targeted emailing is still 25% and often higher. We can see which clients have clicked on an email and then call them to answer questions and set an appointment.

Postcards and brochures: This is another oldie, but it’s gold. Just like a newspaper is delivered straight to your prospective buyer’s door, thus eliminating the need for them to do anything, but open it and browse the property ads inside, postcards and brochures do the same. This time, however, you’ve got no other property vying for your potential buyer’s attention. We often door knock the area, personally hand them a invitation and invite them to the first open home. They may not buy, but often they know a friend or relative who would love to live on their street.

Marketing is something you should speak with your sales agent about in the very early stages of the sales process, as the successful sale of your property hinges on it. Do remember, though, that just because there are more marketing opportunities available to you, it doesn’t mean you should use all of them. Always work in consultation with your sales agent to select the right mix for your marketing campaign. They will know what has working before selling your type of property. This is why often a local agent is best, rather than relying on expensive full page newspaper advertising only to try and contact a new buyer.

Alternatively, for a confidential appraisal of your home, contact me so we can discuss your requirements in greater detail.

Take advantage of the governments new downsizing and Super law.

“Many Australian retirees find that they want a smaller home, or a home more suited to their empty-nest requirements. For some Australians, selling the family home can be great way to release built-up equity to pay for retirement living expenses or in-home support that will allow them to stay at home longer. Older Australians are the people targeted by the Government’s new policy (now law), which allows homeowners aged 65 years or over to downsize their family home and invest the surplus into their super account. Although downsizing and contributing to super is an interesting idea, there are definitely some benefits and dangers – together with a few unknowns – to consider before taking the plunge. From 1 July 2018, Australians aged 65 years or older will be able to make a non-concessional (after-tax) contribution into their super account of up to $300,000 from the sale proceeds of their family home if they have owned the property for at least 10 years. The legislated rules indicate that the property sold must be the person’s home (main residence and be eligible for the main residence exemption for capital gains tax). Couples will be able to contribute up to $300,000 each, giving a total contribution per couple of up to $600,000. Any super contributions made using the new downsizing rules are in addition to any voluntary contributions made under the existing non-concessional (after-tax) contributions cap.” Obviously you should seek financial advise before doing anything with Super. However we can come and give you an appraisal first to give you a guide, before selling your home. Call Brett Coombs - 0421 323 699 or for a free downsizing guide : email brett@fncoombs.com.au.

New tax depreciation rules for investment properties came into effect last year. Click on the following link for further information.

https://www.bmtqs.com.au/bmt-insider/new-depreciation-legislation-for-australian-property-investors/

December Quarter Market update.