Water leaks, gas heaters and stoves as well as everyday household cleaning agents can all pose serious health risks for those living within the home, as well as have long term implications for our planet. 

National Communications Manager, Stewart Bunn says there are some simple measures home owners can take to make their homes healthier and more environmentally friendly. 

“The construction and maintenance of our buildings, including homes, uses 40 per cent of the world’s energy and resources, and creates 33 per cent or more of greenhouse gases,” Stewart Bunn, said. 

“In fact, homes are some of the biggest offenders in terms of energy waste and greenhouse emissions.” 

According to Stewart Bunn, some easy and effective tips any home owner can implement include: 

Sprinklers:  install smart sprinkler systems such as drip irrigators that use less water than sprays and are run by a ‘smart’ sprinkler control. 

Roofs:  Paint roofs with a light-coloured, special-purpose coating designed to reflect heat, drastically reducing reliance on indoor cooling systems.  In addition, introduce solar energy panels to your roof to reduce energy bills. 

Windows and Doors:  Reduce energy needs by installing tall windows and skylights where possible, maximising natural daylight use. 

Appliances:  Endeavour to use only energy star rating appliances, which use far less energy than standard ones. 

Light Bulbs:  Energy saving light bulbs last up to eight times longer than ordinary bulbs – and when you consider how many lights bulbs there are in a home, the energy, and cost savings are plenty. 

Draught-proof Gaps:  Block cold air that passes around doors and windows with self-adhesive foam strips, rubber strips, brush strips and other types of weather strips. 

First National recently introduced an energy efficiency programme incorporating materials that help educate home owners on becoming more energy conscious. 

“We have developed some brochures and information on simple ways home owners can reduce energy consumption around their home,” Stewart Bunn, said.
“There’s an Energy Saving Guidebook which we have produced in conjunction with Archicentre, a booklet called Australian Native Plants for Your Back Yard produced with the assistance of Greening Australia and our website is full of tips, videos and information on becoming energy conscious.”

In today’s market, the question on every home seller’s lips is how to get the best price for their property – to auction, or not to auction?  Chief Executive of First National Real Estate, Ray Ellis, has some helpful advice that might make this difficult decision a little easier. 

“Selling your home can be emotionally stressful, but being well informed about the process and alternatives helps instil a sense of control” Ray Ellis, said. 

“What you should remember at all times is that property is a commodity, worth what a buyer is willing to pay for it. 

“Sometimes, it is better to go to auction to accurately determine market opinion, but in other cases it may be more appropriate to go through the private treaty sale process. Ideally, where there is likelihood that more than one buyer will be found in the marketing period, auction is the viable and preferable alternative.

“When there is a lot of housing stock available to choose from, then buyers have a broad range of choice as well as the power to keep prices down. 

“But, in most of Australia at the moment supply is well short of demand, and so sellers have the upper hand.  It depends very much on what is happening in your local area. 

“What an auction does is set a timeline by which interested parties must have completed their enquiries and arranged finance. It promoted decisiveness and allows the competitive nature of buyers to work in your interest. Also, it puts some surety into the process because a sale under the hammer on auction day is water-tight. 

“But with private treaty sales, there is a degree of risk.  Two parties could make offers for a property, but if the chosen party’s finances fall through after you’ve accepted their offer, you either have to go back to the second party in a potentially weaker position than previously, or you have to start the process again. 

“With auctions, when the bidding reaches your reserve, the property is sold unconditionally.” 

First National has successfully been selling through the auction process, posting record months in the first half of this year.  According to Ray Ellis, that’s a result that comes from a combination of having realistic, well informed vendors, effective, targeted promotion of the properties and an agent who understands the local area and auction process thoroughly. 

 “Auctions are good where a vendor is realistic and willing to accept what the market is willing to offer on the given day,” Ray Ellis said. 

“But private treaty sales, in the right circumstances, can prove lucrative too, especially in the today’s market at the top end. 

“This market has been moving more slowly in upper price ranges than the more affordable levels, so it may well be worth considering private sales in this situation.” 

Selling a home always carries some element of uncertainty – it is how you reduce, or mitigate, that uncertainty that is the key.  Some may suggest doing that by private sale, others will swear by auctions.  The best advice, though, is to get the best advice – talk to a real estate agent who knows the area and what is working well and what is not”.

First National Real Estate has some helpful advice for the increasing number of parents still providing the roof over the heads of their 25 plus year old children. 

Recent studies confirm that vastly higher rates of 25-29 year olds are still living at home, compared with previous generations.  Couple this with current rate hikes and housing affordability at an all time low, it seems the Australian dream of Gen Y owning their own home is becoming a myth. 

According to Stewart Bunn, National Communications Manager, parents of Generation Y should not despair – there are a number of ways they can responsibly help their children prepare to purchase their first property. “Buying a first home is a major financial hurdle and in an ideal world kids would handle it themselves, as previous generations did,” Bunn said. “But things are very different for today’s Gen Y and young families and they often need some assistance.” 

The first step is to seek the advice of a financial advisor who can establish a savings plan and budget to track expenses and identify areas they can cut back on expenditure. 

Parents can also use the services of the financial advisor if they are considering assisting their children with a loan or donation towards the ever-important deposit and up front costs of buying a home. “Parents themselves can offer advice to their children and help them do the essential research in relation to mortgage options.  Often, a mortgage broker who won’t charge for their advice is a good place to start considering what mortgage options are available to suit the individual’s financial situation,” Bunn said. “But one of the most important things parents can do is to keep things real for their children.” 

“Too often these days, Gen Y want to move into their own home that has the same mod-cons and appliances of their parent’s home -  something that took their parents 20 or 30 years of hard work to achieve and that’s just not realistic.” The purchase of a first home is an investment and should be viewed as such. 

“Getting onto the first rung of the property ladder represents an investment over the long term, so people should take their time and get it right,” Bunn said. 

“If they need to compromise initially, on location, or furnishings or even the amount of work to be done on the property to get it like they want it, then so be it.  Flexibility is the key to getting that first all important step right.” 

For parents who are letting their children stay at home to save for a deposit, they should consider charging a ‘nominal and affordable rent’ – which they can secret away into a savings account and present as a contribution towards moving out when the time comes. 

“This will assist children understand how important a budget can be and how the real world works, as well as help them get their deposit together, or use towards those upfront costs of purchasing a property such as conveyancing and legal fees, insurance, utility connections and council rates,” Bunn said. 

“The trick is not to let the children know what you are really doing with the rent money so they don’t rely on it.”

If you’re heading off soon for a well-deserved holiday, First National Real Estate recommends you plan some simple and cost effective security measures to make sure your home and property stay safe while you’re away. 

In Australia, around a quarter of a million households are victims of at least one break-in a year, according to the latest figures available from the Australian Bureau of Statistics, and even more are the target of an attempted break-in. 

“Many people leave their homes and often their cars unattended when they head off on their annual holidays and it can be a green light for burglars,” said Stewart Bunn, National Communications Manager. “It’s important to take as many precautions as you can to ensure you don’t return from your holiday to find you’re a victim of crime.” 

Home security tips from First National Real Estate include: 

Security alarm. If you have the time – and the budget – before you go away, install a burglar alarm. “This is still the best deterrent,” Bunn said. “For most burglars, an alarm simply makes your home too difficult to try and enter. Be sure to display notices about the alarm system prominently at doors and windows.” 

Lock all doors and windows.  “It sounds obvious, but people in a rush to head off can easily forget to close a window or secure a door,” Bunn said. If possible, fit deadlocks to main doors and windows, as again these are a major hurdle for a would-be burglar. 

Create a lived in look. While away, make sure your home still looks “lived in”. Leave a pair of shoes at the back door, water in the dog’s bowl and hang some towels on the washing line. Make sure a trusted neighbour or family member collects mail and regularly adjusts curtains and blinds. “If possible, ask a friend or neighbour to regularly park in your driveway or outside your home, to suggest activity,” Bunn said. 

Set timers. Timers are available from hardware stores and allow you to switch your TV or radio on at various times during the day and some lights on at night. “Tune your radio to a talkback station so there’s the sound of many different voices,” Bunn said. “If someone is snooping around, it will make it harder for them to know if someone is inside the house.”  

Sensor lights. These are anther inexpensive deterrent that are useful throughout the year. Install them at all external doorways.

Secure the shed and garage. Put away and secure items like ladders, tools and gardening implements as these can assist in forced entry and make sure the garage is locked. Store away any valuable outdoor items, such as bicycles and the barbecue. 

Turn down the phone. An endlessly ringing phone can be a give-away that there’s no-one home. Turn down the volume, and make sure the voice message gives no clue that you’ve gone on holidays.    

Spare keys. These should be left only with a trusted family member, friend or neighbour. “Don’t keep them under a flower pot or a door mat,” Bunn said. “A burglar will easily find them.”  

“Our 550 offices around Australasia have helped people buy or sell thousands of homes around the country this year,” Bunn said. “We’d like to think that by taking some simple precautions, all homes will stay safe during the summer holiday season.”

By REIQ

Buying a home is often a once or twice in a lifetime expense and, apart from the obvious cost of the property, the buyer may incur other associated costs.

Buyers of real estate may incur costs including stamp duty payable to the State Government, conveyancing costs and other legal fees, building and pest inspection reports, a valuation report, and costs payable to a financial institution. Buyers who terminate a contract under the five-business day cooling off provision may also have to pay a cost to the seller.

The REIQ suggests the following when budgeting the costs of buying real estate.

1. Price of the property

You are able to put in an offer on a property that is less than the advertised price. The real estate agent then presents the offer to the seller and they will either accept or reject the offer. The price that the buyer and seller agree upon is countersigned on the contract of sale.

1. Borrowing costs

When borrowing money from a financial institution, buyers are likely to encounter costs such as the loan establishment fee and mortgagee insurance (if borrowing more than a nominated percentage of the property’s value).

Buyers will also need to budget for ongoing fees and interest repayments on top of the loan amount borrowed. Fees will vary between financial institutions and buyers should shop around for the loan that best suits their needs. All financial institutions must now publish a comparison rate for their loans which takes into account all fees and charges and any introductory loan rates.

It is a good idea to obtain pre-approval (or at least have an idea of how much the bank with lend you) for a loan before starting the search for your dream home.

1. Valuation report

An independent valuation report on a property can be of assistance to the buyer to indicate a property’s current market value. Sometimes the seller will obtain this for the buyer at his or her own cost. In Queensland, contact the Australian Property Institute by phoning                07 3832 3139         for the names of licensed valuers.

1. Transfer (Stamp) Duty

Stamp duty is a tax imposed on written documents that record or affect certain types of financial or legal transactions.

Stamp duty is chargeable on documents or statements if they are either:

• Signed or executed in Queensland; or
• Signed or executed outside Queensland but relating to property situated in Queensland or to some act, matter or thing to be done in Queensland.

State Government charges the buyer stamp duty when they purchase a property – the percentage scale will vary according to the amount of the sale price and whether or not the buyer intends to live in the property or rent it out to tenants as an investment. Depending on the nature of the transaction, certain concessions and exemptions are available.

Your solicitor will obtain the appropriate rate. The buyer pays the solicitor the amount payable who then arranges payment to the Government authority.

The State Government introduced legislation in 2008 to ease the financial burden of stamp duty on first home buyers.

Under the legislation:

• From 1 September 2008, first home buyers pay no stamp duty on:

a home valued up to $500,000

• First home buyers also pay no stamp duty on a vacant block of land up to $150,000.

For the current transfer duties schedule or for more detailed information, visit the website
for the State Government’s Office of State Revenue website at www.osr.qld.gov.au.

Alternatively, you may first wish to refer to Buying Real Property in Queensland which addresses specific provisions under the Act.

For more information about stamp duty, go to the Office of State Revenue website or phone                07 3227 8733         or 1300 301 342.

1. Land tax

The Office of State Revenue (OSR) collects land tax in Queensland and administers the Land Tax Act 1915. Land tax is levied by the Queensland Government on freehold land owned in Queensland as at midnight on 30 June each year.

For land tax purposes “land” includes vacant land, land that is built upon, building unit plans, group title plans, time shares and home unit companies.

Land tax is payable by the owner of any interest in freehold land in Queensland if the aggregate value of all land interests exceeds the relevant threshold.

There are various classes of taxpayers including residents (natural persons who ordinarily reside in Australia), absentees (natural persons who do not ordinarily reside in Australia), companies (includes clubs, associations etc.) and trustees (includes trustees of deceased persons’ estates).

Depending on the use of the land, certain deductions may be available to reduce the taxable value of the unimproved land. Land tax is not payable on land used by the owner solely as their principal place of residence if a deduction has been claimed on the relevant form and allowed.

To see the the current land tax schedule or for more detailed information, visit the website for the State Government’s Office of State Revenue.

1. Legal costs and searches

The REIQ strongly encourages buyers to seek independent legal advice before signing a Contract for Sale.

Issues that need to be understood by the buyer are: the appropriateness of accepting or waiving the five-business day cooling off period, seeking assistance with understanding the State Government forms, the Selling Agent’s Disclosure to the Buyer Statement (Form 27b) and the REIQ Contract of Sale. It is recommended that the buyer seek legal advice relating to these forms.

After a buyer has signed the appropriate forms and the Contract of Sale, they are advised to undertake certain searches. These include a Title search verifying the ownership of the property, a local government building report on the legality of existing structures on the property, and a local government search on the zoning of the property indicating any restrictions on the property and encumbrances on the property easements.

Solicitor’s fees are negotiable. It is advisable to compare the fees being charged by a few different solicitors. Good referrals and past experience is valuable when choosing your legal representative.

It is possible for a buyer to undertake these activities on their own, however, the REIQ strongly recommends using qualified solicitors for conveyancing. Contact the Queensland Law Society for further details about how to contact a qualified solicitor: www.qls.com.au

1. Building and pest inspection reports

Buyers can make their Contract of Sale conditional on the basis of a satisfactory building and pest inspection report from a licensed professional. See the Building Services Authority website www.bsa.qld.gov.au for more information.

The cost of these can vary but it is required under Queensland law that the inspector must be licensed by the Building Services Authority.

1. Termination of a Contract under the five-business day cooling-off provision

If a buyer terminates a Contract of Sale at any time during the stipulated 5-business day period, they will have to pay the seller 0.25% of the property price on the Contract. There is no additional GST payable on this amount.

If the buyer has elected to waive the cooling off period provision they will not incur any cost and consequently cannot terminate a Contract.

The REIQ has put together a comprehensive outline on the methods available to sell your property.

Please view below and decide which method you are most comfortable with.

1. Sole or exclusive agency

The Real Estate Institute of Queensland (REIQ) recommends sellers use the exclusive agency method to sell residential property as it is the most effective.

The REIQ recommends the exclusive agency method, where the sale of the property is in the hands of only one party, over an open listing, where the seller lists their property with a number of real estate agents.

An exclusive agency is advantageous to the seller as the appointed agent will be dedicated to selling the property. This saves the seller the confusion of having to liaise with more than one agent.

Furthermore, this method will save the seller the time and money involved in advertising and marketing costs when a number of agents are trying to sell the property.

Under the Property Agents and Motor Dealers Act (PAMD) 2000, a seller can only appoint an agent under this arrangement for up to 60 calendar days. During those 60 days the seller may decide not to renew the appointment if the property has not sold.

The seller can agree to make a further appointment up to 60 days, but the renewal cannot be made earlier than 14 days before the term expires.

Under any selling arrangement using a real estate agent, the seller and agent must sign a PAMD Form 22a – Appointment of Real Estate Agent (Sales and Purchases) in order to legally set the terms of the selling agreement.

2. Auction

Selling by auction is also an exclusive agency agreement and is therefore also subject to the 60-calendar day agreement period. The auction process requires the seller to pay the agent to arrange effective marketing and advertising plans to maximise exposure of the property and the auction date to potential buyers.

Under the auction system, the seller agrees to pay commission to the listing agent if the property sells before the date of the auction, at the auction or in an agreed period after the auction.

The same conditions that apply to the auction process will also apply to the tender process.

There are many advantages to selling a property at public auction, in particular:

An auction is a three-pronged marketing push. The vendor has the opportunity to sell their property before auction, on the day of auction, or in the event the property is passed in, directly after auction.

There is an ability to set a reserve price and a settlement date to suit the seller.

As the reserve price is not disclosed it gives the seller a chance to test the market.

A written marketing plan with pre-agreed appointment times enables the sellers to arrange their lives during the lead up period.

The auction process by its very nature creates a sense of urgency; buyers have a definite time frame in which they must act. Buyers see the purchasers as competition rather than the seller. Auctions create a competitive environment.

With sale by auction in Queensland, all contracts are unconditional and no cooling-off period applies.

Auctioneer:
The first step in selecting the right person to conduct the auction is to consider who has the most to gain.

Choose someone with local knowledge of the area with the support of an agency that is keen to make a sale.

Auctioneers today are highly trained in their field having attended courses and sat written and practical professional examinations with the REIQ. Furthermore they hold current registration under the Land Agents Act.

When your auctioneer is a member of the REIQ you have the additional benefit of dealing with an auctioneer who is bound by the high ethical standards of the Institute as well of their profession.

Agreement:
Legislation requires that a written agreement must be signed between the seller and the auctioneer. In this, the auctioneer will require an exclusive agency for a specified period, which cannot exceed 60 days but by mutual agreement can be renewed.

Promotion:
This is considered by many to be the key to a successful auction by creating interest. There is a legal obligation to clearly explain to the seller where and how monies will be spent and show examples of the advertising mix. At this stage the seller’s input is very important to help identify the probable market.

Arriving at a reserve price:
It is the sellers right to set the reserve price, below which the auctioneer is not permitted to sell. Consult with your agent when setting the reserve price, as they will be familiar with recent sales of similar property in the area. Remember to be realistic when making your appraisal, bearing in mind supply and demand in the area as well as other general market considerations.

Selling before the day of the auction:
It is not uncommon for interested buyers to make offers on properties prior to auction day. Some will be on fishing expeditions of course, to try and find out the reserve. However, most will be genuine, in such cases the agent will discuss the offer with the seller, and a decision can be made to either consider the offer, or continue with the auction as planned.

It is not unheard of for the seller to sell the property prior to going to auction. In this case the agent will generally – on the seller’s instructions – invite all potential buyers to also make an offer. The seller then accepts the most appropriate offer and contracts are signed prior to the auction date.

Auction day:
On auction day, buyers will be held to the conditions of sale by public auction. In the course of conducting an auction there are a number of possible outcomes:

Should the highest bidder reach or exceed the reserve price – the property is sold and the auctioneer will conclude a binding contract between the buyer and seller. The auctioneer may sign the contract on behalf of either or both parties if instructed to do so.

In the event that the highest bid falls short of the reserve price the auctioneer will usually ask for the seller’s instructions before passing the property in. This means the seller has the opportunity to accept the last bid, by placing the property “on the market” so that it may definitely be sold “under the hammer”. This factor often creates more excitement, which can encourage further bidding, and a better price may be achieved.

It can be that the highest bid does not reach the reserve price and the property is passed in – the highest bidder is generally informed of the reserve price and may be given the initial opportunity to buy. Failing this, the property is placed on the market for sale by private treaty, at which time anyone may negotiate with the sole agent.

Tips for a successful auction

• Work out the appropriate advertising budget to ensure your property is widely advertised taking into account the identified market.
• Make sure the property is well presented because a potential buyer’s first impressions are crucial to a successful sale.
• Your agent will require that the contract and the accompanying statutory searches be available well in advance of your marketing campaign. Confer with your agent about this matter as they should be able to provide a tick list to help.
• Allow the agent to arrange as many inspections with prospective buyers as possible – it all creates interest. At a local level this could have a significant effect on the turnout on the day.
• For most, the spectacle will be the main draw as well as the eventual selling price so confidentiality is of the upmost importance. The REIQ suggests that you do not disclose or discuss your reserve price with anyone except your agent/auctioneer.
• Advertising material should only refer to the general area of price, not the reserve price.
• A sale by public auction is arguably one of the most exciting, effective and rewarding methods of buying and selling real property.

The REIQ has produced a Bidder’s Guide for residental property in Queensland, which seeks de-mystify and simplify the auction process and provide clarification on the roles and responsibilities of auctioneers and bidders.

3. Open Listing

An open listing is where the seller lists their property with a number of real estate agents in the local area.

Under an open listing agreement, each agent can sell the property individually or work with another agent to sell the property.

Only the agent that introduces the buyer to the property will receive the commission from the seller.

However, the REIQ recommends using the exclusive agency method to sell your property the most effectively.

Outlined below is an article published in the Australian on June 15, 2009

THE nation’s sluggish housing market may not be in the doldrums for too much longer, with industry forecasts suggesting a sharp rise in property prices over the next three years.

House prices in Sydney, Melbourne and Adelaide are expected to lead the way, with each market tipped to grow by up to 19per cent by 2012, according to new research by economic analysts BIS Shrapnel.

Even Brisbane’s slow market is set to rebound, as overseas and interstate migration are forecast to push prices up 16 per cent over the next three years.

The positive outlook was reinforced by the weekend’s auction clearance rates, which hit 52-week highs in Sydney, Melbourne and Brisbane.

However, the national housing rebound won’t be immediate. The BIS Shrapnel research suggests much of the price growth will come in the 2011-2012 financial year as the economy recovers and unemployment falls.

“From here, the recovery in housing demand is expected to broaden and deepen,” according to BIS Shrapnel senior project manager Angie Zigomanis.

“By the end of 2009, strong turnover of the most affordable properties will be flowing through into the bulk of households positioned towards the middle of the market, as people who have sold their existing dwellings to first-home buyers upgrade to their next home.

“Housing affordability in both Sydney and Melbourne is at its best for 10 years.”

Sydney agent Ric Serrao from Raine and Horne, said the recovery was across the board. “As agents we’re all thinking, ‘What the hell just happened?’ It just went bang. The investors are bouncing back, buyers who were sitting on their hands are attending inspections.”

Sydney’s weekend’s auction clearance rate spiked 10 percentage points from the previous weekend to 74 per cent, 29 points higher than the same weekend in 2008. Melbourne’s clearance rate was 81 per cent, up 13 points on the previous weekend and 23 points higher than last year.

The clearance rate in Brisbane exceeded 50 per cent for the first time this year. At 68 per cent, it was 21 points higher than the previous weekend and 40 points higher than last year.

This appears to be the year of consolidation. While some will need to carefully massage their existing portfolios others can take advantage of any discount opportunities that may come their way.

Opportunities will present themselves where there is:

1. Population growth
2. Infrastructure growth
3. Employment growth

As our baby boomers continue to mature and their Gen X and Y kids start entering the real estate purchasing market, there will be a change in the style of property being sought.

With the above in mind it’s best to stick close to the city. Suburbs that’ll perform best in 2009 would include:

• New Farm
• Paddington
• Auchenflower
• Kelvin Grove
• Greenslopes
• Woolloongabba

If you’re in the first home market and are looking for something more affordable but not too far from the city, consider Acacia Ridge. With improving infrastructure, solid employment opportunities and located just 12 klm from the CBD, Acacia Ridge could very well be Brisbane’s best real estate performing suburb in 2009.