Is it too late to invest if you haven’t started before hitting the big four-zero?
Not by a long stretch. Here is a step-by-step guide for anyone over 40 looking to get started in property investment to have a nest egg before retirement.

In 2012, the concepts outlined in the guide generally follow from the assumption that the would-be property investor owns their own home, and therefore has some level of equity available to help them get started in investment.

Step 1: Get the right mindset

It is most likely that you need at least 10 years to get a good outcome, and 15 is fantastic, then after 40 it becomes all about how much time you have and what your goal is. Most people won’t be able to rely on their superannuation as the only source of income to retire on.

Step 2: Establish your attitude to risk

Different investors have different appetites for risk and those risk profiles should be a major factor in deciding on an investment strategy. Your risk profile will determine:

• the loan-to-value ratio (LVR)
you’re prepared to use to invest

• the amount of debt you’re

comfortable with and

• the type of property you’re
prepared to buy.

Investors over 40 should be more inclined towards a lower-risk strategy, as they can’t really “start again” if they’re financially crippled. This means lower LVRs, lower borrowing and buying standard residential rather than riskier niche market properties.

Step 3: Set your goals

When do you want to retire? How much money do you think you’ll need to live off? These might be questions you’ve put off or ignored up until now, but before buying investment property it’s time to confront them. It’s all about goals –you need to determine how much money you’ll need in retirement and when retirement actually is. Many people will want to reduce working hours rather than ceasing working altogether which has a positive impact on your retirement funding. Investors need to think non-financially first. That is, what lifestyle they want, holidays, how much they want to work and so on. Then they can translate that into dollars.

Step 4: Select your property strategy

Once you know where you want to be in 10 or 15 years’ time, you need to map out a course to get you there. The first step is to get educated and the next step is to surround yourself with a good team – Get a good accountant, a good property solicitor, a good finance broker, as well as a good property agent and property manager. Investors may look to research and consider

different approaches to the property market, such as capital growth, negative gearing, positive cash flow, renovation, subdivision and small development. Other steps to take include checking your borrowing capacity and establishing how much equity you have available to use. According to the experts, as far as choosing an investment strategy goes, it’s best to keep things simple. The combination of leverage and high-growth property can’t be beaten in terms of supercharging a retirement strategy.

Step 5: Develop a retirement strategy

It’s important for later starters in property to consider how you might make the transition to retirement and fund your living expenses before they even start investing. This is because the ultimate plan may have an impact on the structures used to acquire
and hold property.

Step 6: Start implementing & tracking your plan

This is perhaps the most vital step of all, especially for those who haven’t taken action at an earlier age. Goals are vital but they’re worthless without the commitment to take action. As you invest, you’ll need to keep track of how you’re travelling along the path you mapped out at the beginning, and adjust your actions accordingly.

Step 7: Consider your risk management

Risk is one of the first factors to consider, but it’s also worth revisiting once you’ve started investing. Risk is simply the chance of your investments or strategy under-performing in terms of capital growth and/or income not meeting expectations and therefore not being able to meet retirement. When you don’t have much time, you can’t afford to

make mistakes. As such, investors need to sit down and identify all the things that can go wrong with their strategy and think about ways that they can reduce their risk. In planning for retirement, investors also need to factor in the possibility of ill health.

Step 8: Keep going

Some might find it hard to maintain motivation and keep rolling on with their investment plans, especially if they suffer some early setbacks. It’s a good idea to associate with other people who are doing similar things, as this can be “incredibly motivating and keeps you going during the rough times.

Want to know more on investing from 40+? Sign up and check out myljhooker for more tips.

1. Get the marketing right

So talked about that it seems like old news. Which is why it’s hard to believe there’s still plenty of properties out there that just don’t get it right.

Think the three Ps – presentation, pictures and prose.

P1: Unless you want to market the home as a renovators’ delight, it all starts with fixing up little niggles that could catch buyers’ eyes and stop them from falling in love with your home.

P2: When it comes to the pictures, always get a professional photographer to take them. There is a world of difference.

P3: Lastly the wording – you want to highlight the best points of the property but not offer so much information as to overwhelm. Save that for the brochures, or the property’s own website, which increasingly, we are seeing these days.

Videos are also being used but make sure they look professional. Badly done they’ll have the wrong effect.

2. If there’s a problem address it

Does your home have a tree close to the property, a steep driveway or a problem with strong westerly sun? Think about ways of addressing this before it becomes a problem for potential buyers.

You might not be able to change the driveway, but you can make sure the agent is well versed at parking on it, so they can confidently show potential buyers how it is done.

Or that gum tree close to the home, find out the process for removing it, and get some quotes on doing so. You don’t actually have to rip it out, but have the information on hand for home hunters who would prefer you did.

3. Pick the right agent

Don’t just go with someone you know, or who sold the neighbour’s house. Meet the agent, talk with them, attend some of their open homes and assess the way they do business.

Make sure you see at least three different agents to give you a good feel.

You want someone who will work hard at following up contacts and has a good manner with people while at the same time being a good negotiator who will also give you practical advice on what to do with your property in terms of its presentation.

4. Be sensible on price

It goes without saying you need to meet the market. Find out where the market is by looking at recent sales. And be honest about the state and attributes of your own property when trying to compare apples with apples.

Because many properties don’t sell for their advertised price, you’ll need to find out what they actually traded for. Your agent should be able to help you out with this.

5. Prepare for viewings at any time

Thanks to the variety of hours people work these days, you might get requests for viewing in the evening or outside of normal times. Within reason, you should try to have your home ready to show at a moment’s notice. That person who turns up at 7pm might just be the one who falls in love with your place.

6. Get all your documentation in place

The last thing you want is for a sale to fall through because you don’t have all the paperwork in place. Spend the time before you put the home on the market making sure you’ve got any required certification from the local council and any other relevant bodies.

7. Be flexible with your settlement times

This is not always possible but if you don’t have to move in a hurry – or indeed can get out a bit faster than usual – it is worth being flexible on settlement times. Buyers might want time to sell their house before moving into yours, or might be in desperate need of moving NOW.

What are your tips for sellers? Is there anything you did in selling your property that you felt really made a big difference?

Monday, 06 February 2012
Stacey Moseley

Sydney has outperformed the other major cities in this weekend’s auctions.

Auction figures released by Australian Property Monitors (APM) found, 71.6 per cent of the properties listed for auction in Sydney cleared over the weekend. This equates to a 22.6 per cent increase from the same time last year.

Whilst Melbourne and Brisbane both recorded increases from last year, with clearance rates of 65.5 per cent and 25 per cent respectively, Adelaide experienced a decrease with just 11 of the 20 properties up for auction selling, giving the city a 45.8 per cent clearance rate.

The most expensive property sold over the weekend was a three bedroom house in Burwood NSW, which went under the hammer for $1.17 million.
A three bedroom townhouse located in Campbelltown, NSW took the title of the weekend’s most affordable property, selling for $186,500.

In Victoria, auction figures released by the Real Estate Institiute of Victoria (REIV) showed there was a total of 112 auctions on the weekend, of which 65 sold and 47 were passed in, 28 of those on a vendor’s bid. This equated to an auction clearance rate of 58 per cent, just under the result recorded by APM.

“As volumes remain low these results are unlikely to be an accurate indication of the current state of the market. On this weekend last year there were 189 auctions and a clearance rate of 56 per cent,”REIV chief executive Enzo Raimondo said.

“Next weekend around 305 auctions are expected followed by 620 on the weekend of 18 and 19 February.”

Whilst Brisbane recorded a slight increase in clearance rates from last year the underperforming auction results continue with just 25 per cent of homes clearing. However, APM’s figures were at odds with the general outlook of independent auctioneering firm JA Auctioneers, which expects strong auction results for 2012 in South East Queensland.

Director Jason Andrew said vendors’ strong motivation to sell due to financial and personal pressures was a major pushing point.

“There’s no doubt at this point vendors need to remain realistic with their price expectations to entice buyers to act.”

How would you like to wipe $15,000 off your mortgage?

Just as we expected and aren’t we lucky???!!! It’s not often we receive the good news of rate cuts and, it could not of come at better time. At a time of giving I think it is fair to say “Thank You RBA”…

Although we cannot get too excited – we are still waiting for this FULL cut to be passed through all major banks.

Now, let me put things in perspective for you; since the rate cut on Melbourne Cup day at 0.25% and another December 6th rate cut of 0.25% the average mortgage holder – with a $300,000, 25-year mortgage – will save about $50-55 a month per rate cut. Therefore, you have just made an extra $100-$110 a month.

Retailers had been calling for a rate reduction to help bolster tepid sales heading in the final few weeks of 2011 – But don’t fall into the retail trap and think you are $100.00 richer per month to start splurging.

Helpful tip: the more you can put on your loan the better – So keep putting the same amount onto your loan as you were previously – Consider the $100.00 just a nice bonus!

Still don’t believe me? – Look at the interest calculators below:

On an interest rate cut of 0.25% over 25 years you will save $14,424.90 assuming the interest rate will stay the same. UNBELIEVABLE!

See, it really is a great Christmas present, and maybe a great time to buy!
Economists had been split almost evenly between those forecasting a rate cut or a rate pause. Financial markets, though, had tipped the central bank would again cut rates as the global economic outlook dims.
The dollar sank after the rate cut as the Australian currency lost some of its appeal. It sank more than half a US cent to fall below $US1.02.

The Reserve Bank board is not due to meet again to set interest rates until February 7 next year. Could we get lucky again?

If you are looking for properties within Dee Why to Mona Vale or would like any real estate advice, do not hesitate to contact LJ Hooker Narrabeen now. Always happy to help!

(Lets find out who will have the best rate and with what bank? Comment on the post and help out your fellow Australians!)
Posted by LJ Hooker Narrabeen at 22:09
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Labels: Author: Hayley Johnston

Mark Armstrong
December 4, 2011

The property market will be drawing a collective sigh of relief as the year comes to a close.

As we look back on how the market performed in 2011, we may well see an overall correction of up to 10 per cent – a significant drop for the property market but a fraction of the sharemarket correction of 2008.

As we gaze into the crystal ball and wonder what 2012 has in store for home owners and property investors, there are a few indicators that suggest we are entering calmer waters.

With Europe in crisis, the US economy anaemic and China cooling, interest rates are on the way down. Experts predict the Reserve Bank will cut rates on Tuesday by 25 basis points and there will be a further reduction of up to 100 basis points throughout 2012.
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Falling interest rates instantly increase affordability and entice people back to the market. Buyers rushed back in 2001 and 2009 mainly due to falling interest rates. The main difference next year is that it is unlikely to come packaged with increased first home buyer incentives.

Property is a great Australian pastime and this continues to be the case.

Web statistics show that, although competition for property was soft in 2011, web browsing continues to be very high. Nielsen’s online analysis of real estate portals suggests more than 3 million Australians search for property each month. That means about 15 per cent of the population is actively looking at property at any onetime.

This activity flows on to the physical market, with many agents reporting high numbers at inspections for good quality homes. Despite the level of interest, many people believe that 2011 has not been the right time to buy.

This means first home buyers and investors have stayed out of the property market. The effect is increased demand for rental property and a lowering of supply. As a result, we are likely to see rental yields lift next year.

According to the Reserve Bank, household savings rates are at their highest levels since the mid-1980s. They have been moving up since the mid-2000s, reaching 10.5 per cent of disposable income in the June quarter.

Many borrowers have been making substantial excess principal repayments in recent years and this will increase their equity and cash flow positions.

For many people, myself included, money begins to burn a hole in our pockets. The people who have been saving and have job stability – which is 95 per cent of the population – will start to realise the sky is not falling and will begin to make a move.

All markets are cyclical and often the greatest period of growth comes directly after the biggest falls.

I think when we look back on 2012 in years to come these factors will likely result in a bounce in median values, and the market will be back to where it started before 2011 hit.

Mark Armstrong is an independent property analyst and creator of propertytycoon.com.au, Australia’s first online auction tipping competition.

Our homes are more than a just a roof over our heads, they are warm safe havens for ourselves, our family and our friends.

Nobody wants their home to become a statistic when it comes to counting injuries to children.
Studies have shown that over 67 per cent of children’s injuries occur and around the home, and many of the injuries are preventable.
Making your home is as safe as possible will go a long way to ensuring any child will be protected from avoidable harm.
If you have children living in or visiting your home this summer, consider Kidsafe’s Top Five Tips:
1. Driveway safety
Before entering your home, take note of the property’s surroundings. Is the property in close proximity to a busy road? Is the driveway gated or does it have restricted access to the road? Children, particularly those four years of age and under, are naturally inquisitive and like to explore. Consider where your car will be parked also – small children can often not be seen when reversing a car. Restricted access to roads and driveways can help prevent major injuries from occurring.
2. Fittings
Take note of the fittings within your property. Slippery floor surfaces, electric safety switches, curtain and blind cords, types of window settings and smoke alarms are all important elements. Are door handles positioned out of reach of young children? By actively inspecting fittings, you can ensure you are fully aware of what

needs to be fixed or attended to before an accident occurs.
3. Home Layout
There are different hazards to look out for depending on the layout of your property. Is the property single or double storey? Are there any split levels or stairs, inside or outside the property? If a property has stairs, ensure there are adequate balustrades that meet Australian Standards and check to see if gates can be installed. Is the laundry located away or restricted from living and play areas? Taking note of the layout of your home will help you plan out and eliminate future problems.
4. Outdoors
Inspecting the outside area of your current or prospective home is just as crucial as inspecting the inside. Is there a pool? If so, ensure it meets Australian regulations with a fully enclosed fence and self closing, self latching gate. Check that access from the front to the backyard is restricted. Are there are any other exits i.e. side lanes or gates? Is there a garage or shed to store tools, chemicals etc away from children? Many injuries occur outdoors while children play, so spotting hazards early on is crucial.
5. Take the Kidsafe Home Safety Checklist
You can download it at www.kidsafe.com.au. The Kidsafe’s Home Safety Checklist and Online Safety Demonstration Property are great tools to ensure your current and future homes are child safe.
Information courtesy of Kidsafe

Much like the long awaited Summer months we are predicting a rise in temperature for the real estate market. We are experiencing a steady incline of buyer & seller behaviour in the current market and predict the month leading up to Summer will get pretty HOT.

When you speak with your local market on a daily basis you do notice trends forming within your area. At LJ Hooker Narrabeen our contact with the local area is constant and we have experienced the local anticipation coming into the warmer months.

“Many people are looking at the options in the market in the lead up to the Summer break and are using their time to hunt for the right property – Which could be yours!” said Geoff Amaral, Principal at LJ Hooker Narrabeen.

It goes without saying that the more people who look at a property, the greater chance of selling it and the best chance of selling your property for sale is to present it in the best light. Give your property the edge over the competition with good presentation and some great styling options.

Remember: It is the first impression that counts and may influence a prospective buyer’s decision to come into your home.

Be objective and take a look at your property from a buyer’s perspective. Aim to make your home inviting – make it bright and cheerful, in keeping with the season. A buyer wants to imagine what their furniture will look like in your space, allow them to visualise by presenting the S P A C E with minimal furniture.

Here are some of our hot tips to help make your home a Summer sensation:
* Check that your home looks attractive from the street and front entrance, tidy & clean
* Arrange some fresh flowers in a prominent place
* Let natural light into rooms
* Clean windows & curtains
* Make sure there is air flow and a good temperature via fans or air conditioning.
* Wash walls to make the property look clean & bright
* Present some great storage space with clean cupboards
* Clean up after your pets
* Sweep paths & patios & remove any spider webs
* Make your garden look its best! Remove rubbish from the garden, weed & prune shrubs & trees
* Make any necessary repairs; fly screens, light bulbs etc
* Make sure kitchens & bathrooms are sparkling clean

Remember: People want to buy a dream and LJ Hooker Narrabeen; your local agent is here to help!

If you would like an opinion of value or any advice on making the most out of your property please do not hesitate to call or email.
0438261600 gmatterson.narrabeen@ljh.com.au

One of the big lessons Australians have taken home after the finale of The Block is that there’s a real art to selling property at auction and getting a good price without losing the crowd.

So what can you do to get your property off the auction block without too many headaches?

To start with, you should probably determine if you should sell at auction at all.

The benefits of selling at auction can include:

Getting the property sold fast
A transparent sale process
The market price being determined by the bidders.

The drawbacks of selling at auction can include:

The fast pace making it harder for potential buyers to make well-considered decisions
Limits the number of potential buyers to only those with prearranged finances
Risk of selling for less than you’d hoped for, or not at all, depending on the mood of the crowd.

Seek out an agent with a good track record of selling at auction. Their experience should serve you well. A good place to start is by searching for an RP Powered Professional in your local area.

Have a short but powerful marketing campaign. Your agent will be able to take you through this process fully, but auctions need a good marketing campaign to generate the maximum amount of buyer interest on the day. Don’t let the campaign drag on for too long though, as maintaining this level of enthusiasm in the market can be challenging (and sometimes expensive).

Seek out a good auctioneer. Experience counts. Attend a few auctions beforehand if possible, not only to get a feel for the process, but to see the auctioneers in action – how do they react to low or high interest properties? Challenges? Unexpected twists?

The reserve price, or the minimum bid you are willing to accept, is often the key to an auction’s success. It is imperative that you know the true value of the property at the time it goes to auction. The best way to do this is to seek a valuation of the property as close to the auction day as possible. Once you’ve gotten a good idea of the value of your property (the myrpdata.home value tracker or other valuation solutions can be helpful here), you can choose whether you want to set a lower or higher reserve price.

A lower reserve is handy if you want a quick sale, and bidders sometimes come out of the woodwork once they know a reserve has been met and a property is ‘on the market’ to drive a final selling price up. The risk is that you may sell your property for less than you ultimately wanted if you don’t get enthusiastic bidding after the low reserve price is met.
A higher reserve reduces the chances of selling for too little, but could discourage bidders if it is not met quickly at the auction.

If bidding stalls or doesn’t reach the price level you were hoping for, you may get the opportunity to submit a vendor bid. If an auction begins and no-one is bidding, this can be a good way to get the crowd rolling. The same risks are associated with high and low vendor bids as with reserve prices, and you should always seek the guidance of your agent or auctioneer before the auction commences to ensure you properly understand the risks associated with these tactics.

It’s often a good idea to attend a few auctions to get a feel for the process and determine if it is the best method of selling for you. Discuss the matter with your local RP Powered Professional, and make a decision that best suits your situation.

Do you do your research before you pick an agent to represent the sale of your home?
Do you scrutinise over what the agents fees are or the agents track record? Too often we hear agents being generalised as on par with used car sales men and politicians but are we all slathering dishonest behaviour and in it for the quick bucks? The truth is, there are a handful of agents out there that will sweet talk their way through a sale but for the most part we are just honest, hard workers.

Choosing a real estate agent to sell your property can be a difficult decision and one that many people are not used to. There are so many agents in the business, each well-versed in presenting the benefits of their services, so how do you choose?

STEP – BY – STEP – GUIDE:
1. Chose an agent with expert area knowledge – thorough understanding of local trends and market characteristics (who will most probably have a large database of local and outsider buyers).
2. Interview 2-3 agents – Who shows the most positive enthusiasm? Who is a Licensed Real Estate Agent? (80% of agents only have their certificate of registration).
3. Who listens to your needs and provides you with a suitable marketing plan to suit you and your property?Your agent should let you know exactly how much is allocated to your advertising budget and a justification for why this is needed. Real estate agents should always be happy to go through any material with you patiently and happily take the time to answer any questions you may have.
4. The means and frequency by which an agent will report any progress to you is important and should be discussed during the initial interview.
5. The negotiation style of your real estate agent is very important to consider and will be on display during your initial interview. Prospective sellers should pay attention to the way an agent negotiates their commission for selling your home. Those agents who lower their commission quickly and without much debate should be approached with caution – they may be willing to sacrifice your property’s sale price just as easily??? Be aware of agents willing to take care of advertising. The cost of advertising burden to an agent could leave the agent selling your property quickly and not at your premium price.
6. Look out for customer testimonials or references. This leaves you with assurance locals in the area have worked with the agent and gives you a better understanding of what properties he/she has sold before. Keep your eyes peeled for references to the agents honesty, availability,negotiation skills and trustworthiness.

Finally, I think that first instincts definitely count in the real estate agent selection process. You will be working with this person closely so choose wisely. You will be welcoming your agent into your home, and trust them with a highly valued asset. If you are comfortable with the agent, you will have the best chance of a smooth selling process.

Do some background research and attend some agents open houses (if you like what you see then approach the agent)!

If you would like any assistance with your home or questions on the property market give us a call or email. 02 9913 3300
narrabeen@ljh.com.au
Posted by LJ Hooker Narrabeen at 15:45 0 comments

Clean up

Keeping your home spotless for inspections is essential. If buyers think you skimped on cleaning your home, they will question how well you have maintained it overall. Kitchens and bathrooms are key here so clean the grout between the tiles, remove debris in drains, remove stains from bench tops and don’t forget to clean inside the cupboards – buyers will be looking!
Lighten up

If your kitchen or hallway seems dark, compensate for the lack of light by using a light colour scheme. This will also help to make small spaces seem larger. Light doesn’t have to mean white – try a cream or dusty beige. If a room is in real need of natural light it may be worthwhile installing a skylight – these are particularly successful in a dark hallway.
Storage Sells

Most buyers will have storage space high on their wish list, so if your home lacks this commodity, you might consider adding built in wardrobes, a hall cupboard or even a window seat with box storage. Keeping the interiors simple will reduce the cost. If adding storage is not feasible then at least clear out the clutter and organise your items using simple storage solutions, to give the impression of space and a streamlined interior.
Everything in proportion

Small rooms can be cosy or just plain small! If your living space is small you need to maximise what you have to appeal to today’s buyers. Minimise the amount and size of your furniture. If you have low ceilings keep the furniture below waist height. On the other hand, if you are looking to sell an open plan loft space, large pieces are needed to make the space look liveable and in proportion.
De-peronalise

Buyers need to be able to visualise living in your home, which can be very hard if they are faced with a home full of family photos, figurine collections or exotic art work. When showing buyers your home, remove these types of very personal items. If this leaves your home a little bare replace with a new more generic, focal point.