How to Research What Tenants Want

One tip you'll frequently hear from real estate professionals is to "handle your home like a company." After all, you'll want to maximise the return on investment (ROI) on your investment property, just like you would in a business.

But how does this actually seem in use?

Tenants are your clients if your investment property is your company. And as simple as it may seem, it's crucial to customise your items so that they meet the wants of your clients. The only way to profit from your investment is to purchase a property that tenants desire to live in.

Questions to consider

Modern finishes and cutting-edge dishwashers aren't the only considerations when purchasing a rental home with the needs of your tenants in mind. Instead, consider the aspects of the home that cannot be altered by a straightforward remodelling. It is prohibitively expensive to convert an apartment into a house or add two bathrooms.

Because of this, it's crucial to think about what tenants want in a home even before purchasing an investment property. To learn what tenants in the neighbourhood are looking for, you'll need to ask the correct questions. Think about items like:

• Are houses, townhouses, apartments, or units easier to rent out?
• Are families, students, singles, or couples the majority of those who rent in the area?
• How many bathrooms or bedrooms do they require, at the very least?
• Do people prefer parking on the street, or do they prefer garages?

You may be contemplating: "Okay, now that you've told me what to ask, I can proceed. But how can I go about locating the solutions?"

Real Wealth Australia’s checklist: how to find out what tenants want

Speak with at least 5 or 6 property managers in order to acquire information that is relevant to the neighbourhood.

Local property managers can provide you with significant insight into the types of homes that rent more quickly based on their firsthand interactions with local tenants.

You can use this checklist as a guide to help you ask the local property managers the questions you need to know.

You can make sure you're purchasing the best possible property for the market by using this checklist every time you're thinking about a new property.

Remember, it's important to take into account more factors than just a property's development potential or location in a hotspot. To learn what tenants want in a home, speak with a few different property managers in the region. If your study is thorough, you'll be able to make a confident decision about your next investment property acquisition.

How to Find the Right Mortgage Broker for You

"Get a superb house loan" should surely be on your list of things to do when looking for an investment property.

But frequently, because there are so many possibilities, this is a time-consuming, exhausting activity that can be very frustrating. Investment property owners are frequently at a loss for what to do with the wide range of lenders, mortgage products, and interest rates available.

There are many "excellent" house loans available, but the lending standards of the various institutions and the interest rates of the various loans vary. What's best for your neighbour Joanne might not be the best choice for you, so to speak.

So how can you pick the best choice for your circumstances?

Contact us today at (03) 9998 1940 or team@klearpicture.com.au for a consultation!

Although you may sort through the options on your own, many investors decide to enlist a mortgage broker's assistance.

Thank you for visiting our brief introduction to the world of mortgage brokers. You will be provided with the resources you need in a few minutes to find a broker who will help you reach your investment objectives. With these resources at your disposal, you'll be fully informed before giving anyone the go-ahead.

The benefits of using a mortgage broker

An expert mortgage broker will be familiar with the details of various loans from various lenders. They will have dealt with a variety of property owners, from first-time homebuyers to seasoned real estate investors, and will have identified the appropriate loans for each case.

Simply said, a knowledgeable mortgage broker can use their financial magic to help you obtain the best deal for your unique circumstances. As a result, they will:

• Assist you in identifying your needs and objectives
• Work with you to determine what loans you can afford.
• To protect your credit file report, make sure you comply with the requirements for the loans you are applying for (CFR)
• Manage the loan application process from beginning to end.

Before locking them in, you must make the effort to select the ideal broker. Why?

The secret to future-proofing your finances is to choose a mortgage broker who will take the time to comprehend your condition, objectives, and ambitions. An expert who makes the effort will suggest financing solutions that will grow with you.

"If you don't find the correct broker, you can get a mortgage package that isn't flexible enough for your needs or doesn't really fit them. They might not enquire sufficiently about your objectives or long-term plans.

"We frequently encounter [this issue]. When clients arrive at our office with a product that another broker gave them, I wonder, "Why on earth have you got that stuff?" They are therefore pressured to refinance because the product has restricted their capacity to expand.

Real Wealth Australia founder Helen Collier-Kogtevs

How to find the right mortgage broker

There are a few things you should ask potential mortgage brokers to ensure that they are looking out for your best interests. Think about items like:

• Do they have any prior experience dealing with investors that own real estate?
• What particular expertise do they have?
• Are their payment methods and commissions made known to you?

Before making a decision, it's important to speak with at least three different mortgage brokers. If they turn out to be all duds, the remedy is straightforward: speak with more brokers until you discover one in whom you have confidence.

Finding a broker who is also an investor like you is the final but possibly most crucial piece of advice.

The reason for this is that they'll know which lender to pair you with so that you can expand your portfolio. They are aware of it since they have experienced the difficulties themselves. You gain knowledge through your experiences, and you want to use the expertise of that expert.

Helen Collier-Kogtevs, Founder of Real Wealth Australia

What is a buyer's agent, and do I need one?

Using a buyer's agent is a choice that is worth thinking about whether you're searching for a home or an investment property. One of the most expensive and stressful life experiences that many of us will go through is buying a home, but expert assistance can lessen the strain.

Finding the ideal home can be a full-time job. Finding the appropriate neighbourhood, conducting online research, and speaking with numerous agents—are exhausting! it's A buyers agent can do a lot of the legwork for you if it all seems like it would be too much work.

What exactly is a buyer’s agent??

The antithesis of a real estate agent is a buyer's agent. A buyer's agent is there to assist you in buying a house, whereas a real estate agent's role is to sell you a property. An effective buyer's agent

• Have a thorough understanding of the real estate market in the area where you want to make a purchase
• Can offer suggestions on price and prospective expansion
• Possesses strong connections with other agencies and is thus given early access to off-market listings and other properties.
• Regularly communicates with relevant property shortlists
• Can you help remove the emotion of buying a home?
• I'll set up building inspection reports and other inspections.
• I will place a bid for you at a sale
• She is a skilled negotiator and will assist you in lowering the asking price for the home.

What does a buyer’s agent cost?

A buyer's agent might range widely in price. Others have a set rate, while some charge a percentage of the price of the home.

Many agents will also establish that cost when working on a percentage. You can haggle with the agent to set the charge at the $1 million rates, for instance, if you're looking for a $1 million house but are willing to spend up to $1.25 million. When buying a lower-value home, the flat charge appears to start at roughly $10,000, and for high-value properties, it varies from agent to agent.

A buyer's agent will typically demand an engagement fee before beginning their work, with the remaining balance due after the property has been bought. This fee, which can account for up to 50% of the overall price, is non-refundable. Therefore, be aware that you will need to pay money upfront.

A few things to consider

Verify the Real Estate Buyers Agents Association of Australia membership of any buyer's agent you are considering hiring (REBAA). To ensure that clients receive the greatest results, this industry group has tight rules that members must follow.

It is crucial to find a buyer's agent who is objective. To see if the agency also sells the property, start by looking at their website. Ask the realtor directly if they receive any commissions for the sale of any properties. Finally, carefully read your contract, being sure to look for any provisions referring to commissions from other parties.

All of us have busy lives that include working long hours, socialising, raising children, educating ourselves, and attempting to maintain our physical and mental health. A buyer's agent can be the appropriate choice for you if you lack the time to find the ideal property. Do your research and hire the most qualified buyer's agent possible.

What are the top ways to avoid making costly investor mistakes?

Australians have long had a passion for real estate, but all too frequently they forget the basics in the thrill of expanding their portfolio and end up paying the price.

Here are four strategies to steer clear of costly errors:

1. Secure funding first

Banks have been under pressure from regulators and the Hayne Royal Commission to improve their lending standards. This has led to higher interest-only rates, higher rates on investment properties, and in some cases, much lower borrowing ability.

Lenders are now checking income and expense statements against bank data rather than relying just on the clients' statements. It's getting harder for people who previously overstated their actual living costs to get more money.

The main takeaway? Make sure you have pre-approval in place before submitting an offer on a house because getting financing is harder than it used to be.

2. Factor in rate rises

Since July 2016, the RBA has not changed the benchmark cash rate. However, we notice that interest-only home loan rates are increasing. Why? The cost of funding for Australian banks, who borrow their lending funds from the global market, is increased as a result of rising interest rates globally. Although this tendency has been going on for a while, banks are now beginning to pass the cost on to clients, often raising interest rates by 0.17 per cent.

Although this might not seem like a big difference, what if interest rates increase by another 3%? A stress test should be taken into account when thinking about getting a mortgage to determine whether you could still make your payments if interest rates rose.

"Buying a home for you and your family to live in should be viewed through a completely different lens than buying an investment property."

3. Take the emotion out of it

A entirely different set of considerations should be made when purchasing a home for you and your family as opposed to an investment property. People purchase homes far too frequently in familiar neighbourhoods rather than those with the greatest development potential or highest returns. Like any other investment, investment properties need to be carefully examined, taking into account both the dangers and the potential return.

Are you having trouble making the best decision? Think about hiring an experienced buyer's agent. They not only keep a close eye on economic and real estate trends, but they also frequently have access to homes that have not yet been offered publicly.

4. Get the proper structure in place

It's crucial to get the loan's structure correct from the beginning. Here are a few things to think about:

Tax implications

If your partner has a lesser salary than you, it can make more sense to buy the home in their name because it will lessen the amount of income tax that must be paid.

Loan structure

Consider the effects carefully before taking out interest-only loans without a reserve or borrowing beyond your limit. In the event that your circumstances change, interest rates increase, or your loan is converted to a principle-and-interest arrangement at the lender's request, each of these possibilities may place you under unneeded pressure.

Alternative loan structures, such having a business own your asset, can be something else to think about. You may use your house as collateral for the loan, or you could use other, more liquid assets, like shares. It's possible that you can reduce your interest rate and therefore save money.

The lender

When a borrower decides to finance their whole portfolio of properties, they may discover that many of their properties are cross-securitized through a single financial institution. In this scenario, the lender assumes security over all of the investor's assets, and in the event of a default, the lender is free to sell any item it sees fit. Want to stay out of this dangerous scenario? One strategy is to use various lenders to finance each property.

Make sure you are not taking unwarranted risks if you want to expand your real estate holdings. Examine every choice you have in a calm, logical manner. And if you think you need a second opinion, don't be afraid to speak with your financial advisor. A brief discussion could prevent headaches now and could save you thousands of dollars down the road.

Summary

Tenants are your clients if your investment property is your company. The only way to profit from your investment is to purchase a property that tenants desire to live in. To learn what tenants in the neighbourhood are looking for, you'll need to ask the correct questions. Investment property owners are frequently at a loss for what to do with the wide range of lenders, mortgage products, and interest rates available. An expert mortgage broker will be familiar with the details of various loans from various lenders.

They can help you identify your needs and objectives and determine what loans you can afford. The secret to future-proofing your finances is to choose a mortgage broker who will take the time to comprehend your condition, objectives, and ambitions. Using a buyer's agent can do a lot of the legwork for you if it all seems like too much work. A buyer's agent is the antithesis of a real estate agent. They are there to assist you in buying a house, rather than sell you a property.

Some agents charge a percentage of the price of the home, while others have a set fee for their services. Banks have been under pressure from regulators and the Hayne Royal Commission to improve their lending standards. This has led to higher interest-only rates, higher rates on investment properties, and much lower borrowing ability. Make sure you have pre-approval in place before submitting an offer on a house. People purchase homes far too frequently in familiar neighbourhoods rather than those with the greatest development potential or highest returns.

Investment properties need to be carefully examined, taking into account both the dangers and the potential return. Hiring an experienced buyer's agent can help you make the best decision. Many properties are cross-securitized through a single financial institution. One strategy is to use various lenders to finance each property. Alternative loan structures, such as having a business own your asset, can be something else to think about. It's possible that you can reduce your interest rate and therefore save money.