How to select a Good Property Developer?
Are you looking for the right property developer? The most responsible and credible property developers have definite construction calendars, and have the solid financial muscle to complete their projects within a few years. They are always ready to declare their plans to the public, usually outlining the number of units sold, the amount of money they will be infusing into the area, and what can be expected at each phase of development. In this article, we try and look at some of the key points to keep in mind when selecting the right property developer.
Good Negotiation Skills
Getting a real estate project off the plan isn’t simple at all. The property developers are becoming more open to price negotiations. While a property developer does not need to have intimate knowledge of all aspects of the development process, he must have a good understanding of the economy, property markets, the town planning process, building construction and finance, then only he can make a good negotiation.
A Big Vision
A good property developer is the first to spot the best areas, commonly in the top cities. They are not afraid to make their projects different from others, even if this means the risk of unpopularity. They are always ready for taking risks. The residential units are part of a bigger lifestyle hub that includes recreational, commercial and business districts. Some of the developers specialize in what most people would consider the worst possible locations, when in fact they are great locations for developing property, making tons of profits.
Ability to lead the team
A property developer must motivate and manage the creation and eventually the recreation of the spaces in which we live, work and play. Good developers assemble a highly talented team of people and skillfully lead them to develop a profitable outcome, which means they need to be proactive and make things happen.
Care for the Clients
A good developer will also be honest and if there are delays in the process, they are prompt and candid in informing their clients. For them, their investors are more than just a means to make money. They also offer alternative solutions to common living issues such as maintenance and security.
If you’d like to get some individual advices, please feel free to contact your trusted financial advisor at Carter Property Enterprises.
Things to Know – When Buying Off the Plan
Buying property off the plan can prove to be a profitable investment, but it’s important to be aware of the pitfalls that can come with purchasing a property before it has been built. Buying ‘off the plan’ simply means buying a property that hasn’t been built yet. It can be a more flexible and affordable option compared to buying existing property, with a number of benefits for both home owners and property investors. Let’s see things to be consider when buying off the plan
The Contract
Purchasers should have their legal representative review the contract carefully to understand exactly what they are buying. Typically the buyer will pay a deposit to secure the property with the balance payable upon settlement, after the building has been completed, and the certificate of occupancy has been issued. Purchasers are alerted 2 – 4 weeks prior to ensure they have their finances in order to settle on time. Extended delays in settling the contract can have costs applied to the purchaser.
The Best Price
The first properties released usually go for the cheapest, because the developers need fast early sales. Once they meet their financial requirements, they often up the purchase price on the remaining properties to make up for time & to increase their profits.
Off the Plan Purchase
An off the plan purchase means you can lock in the ownership of a property, without having to settle for an extended period of time. It may be one or two years before settlement, so capital growth can often make your initial deposit more valuable in the meantime. The risk here is that the value may decrease in this time, so it is important to be sure about the area, not just the property.
Government Incentives
New properties are all the rage at the moment, as far as state and territory governments are concerned. Most provide stamp duty concessions for brand new properties, as they attempt to stimulate their economies through construction. First Home Owners Grants (FHOG) are available to purchases of new properties meeting the government requirements.
Tax Benefits
If the new property is being purchased for investment purposes the tax benefits can be far greater than those compared with an established property. The tax incentives can only be claimed once the property has been settled and you will need to commission a quantity surveyor to complete a depreciation schedule.
If you’d like to get some individual advice, please feel free to contact your trusted financial adviser at Carter Property Enterprises.
Is buying off-the-plan Apartments a good investment?
Nowadays buying off-the-plan properties has become more common. There is no doubt that buying off-the-plan can have significant financial gains for a buyer. In Australia, real estate investment can help the investor enjoy tax depreciation benefits, government incentives and the ‘newness’ of a brand new property without paying the market premium that can occur in the established market. This article provides you the key benefits as to why buying off the plan can be more beneficial in the short and longer term.
Stamp Duty Saving
Are you concerned about the massive stamp duty levy on a property purchase? The biggest reasons for buying off-the-plan property is for the potentially for huge stamp duty savings. You pay only a fraction of the full stamp duty. This will you help you to save thousands of dollars on your purchase and be able to enter the market with less cash up front.
Financial Benefits
When buying off the plan, you get the chance to pick the best apartments. Some states are encouraging the purchase of off the plan property and they have put in place special incentives for First Home Buyers and Investors to take advantage of when buying off the plan. Also, when you buy off the plan, you lock in your price and if the property market grows in value, then your property gains in value, you don’t have to pay any more, you get the benefit of the capital gain.
Time
While settlement can be up to 2 years away, you will get some breathing time to take care of the investment, or to organize to move house if you intend to be an owner-occupier. Also this is positive as it gives you time to save for a larger deposit which helps to reduce the amount of finance you will need to borrow. If the property market grows in value, then you have also made some good equity growth.
Tax advantages
If the property is being purchased for investment purposes, the buyer may be able to claim depreciation on their tax for items including fixtures and fittings. It is recommended that buyers seek advice from trusted property consultants to find out more. This helps reduce your taxable income on an ongoing basis, getting you more tax back & in affect reducing the cost of holding the property and allows you to build a larger portfolio.
If you’d like to get some individual advice, please feel free to contact your trusted financial adviser at Carter Property Enterprises.
How to Choose the Right Property for Investment in Melbourne
Melbourne’s property market has been typified by strong population growth, with almost 90,000 people moving into the city every year. Melbourne’s inner city core has a population of around 29,450 people, a figure that is expected to double to approximately 59,900 over the next 20 years. Properties close to the city’s and in bayside suburbs close to water will increase in value more quickly than other properties and suburbs. The demand for property is higher in these regions, as there is no land available for release, but the areas remain close to employment or desired locations. Let us see how to choose property investment in Melbourne.
Buy a Property – Close to amenities
When choosing/buying property it is important to look for lifestyle choices in and around the property. Look at the walking distance from the property to all methods of public transport, schools, park lands, shops, cafes, walking tracks, tree cover, bodies of water being beach, rivers, creeks. Proximity to the CBD and employment clusters should also be considered when choosing a property. Many new developments have cafes, restaurants and gyms within the building and these are proving to be extremely popular. Property purchasers that are currently in the market are choosing lifestyle over land content.
Buy a Property – Outperforms the Averages focusing on future demand
In an area that has a long, proven history of strong capital growth is one that is likely to continue to outperform the averages and this is largely because of the demographics in the area. These suburbs tend to be those where a large number of owner occupiers desire to live in the area, because of lifestyle choices. Always look for suburbs where wages is increasing above average. This translates to being an area where locals are able to and prepared to pay a premium price to live there, putting a financial floor under your investment property. The end result for property investors is that the inner and middle ring suburbs will out-perform the averages for suburbs located further from the city.
Buy a Property – Take Advantage of Investment Advice
There is so much information available about various properties investing trends, strategies and market information that it can be overwhelming knowing where or how to get started. If you are new to property investing, or a seasoned landlord with many years of experience, the team at Carter Property Enterprises will help formulate an investment strategy with a shared goal to acquire your next property.
For more information talk to our professionals at Carter Property Enterprises.
How to become a Successful Real Estate Investor?
Do you want to get ahead in real estate investment? Nowadays, many investors want to add real estate to their investment portfolios, but they don’t understand the complex nuances of real estate investing or how to begin the process. Real estate investing is substantially different from investing in stocks, bonds, and CDs, and it can seem overwhelming to brand-new investors. Here are some tips to become a successful real estate investor.
Learn Constantly
As we know, the real estate investing is a thriving industry that has potential to generate income and make individual life rewarding. When done correctly, real estate investing is one of the safest and best long-term wealth-building tools in the world. Similar to any professional in their field, being in the know with all the latest trends, news and findings in the real estate industry is a must. Also, be aware of the market cycle of the economy, as every kind of business is sensitive to the economy where it stands.
Build a network
Always keep in mind that real estate involves a great deal of networking. A good communication skill is necessary for a successful investor. So keeping up with your fellow real estate investors can be highly beneficial to you. You can often pick up helpful advice about your local market from them. Moreover, you can learn a lot by simply listening to what other investors have gone through. So it is important for one to establish strong networking relationships to these entities for better understanding.
Be a Leader
Want to be a leader in the real estate investment industry? Talk to your team and discuss different methods of achieving and setting new goals. Although it would be easy to take advantage of this situation, most successful real estate investors, maintain high ethical standards. However, the best investors are team leaders who are always inspecting their team’s work and who have strong expectations of which their team is highly aware.
Above all, try to be financially active. Make sure that you take the time to seriously go through it yourself so that you have a better picture of what you are going through financially. This way,you might be able to find out which areas in your business you can improve on and invest more time and capital in. Always remember that like anything else, the harder you work and the more effort you put into your real estate investment business, the greater your ultimate reward will become over time.
Talk to our professionals at Carter Property Enterprises for more information today!
Things to know about Property Development.
Real estate development, or property development, is a multifaceted business, encompassing activities that range from the renovation and re-lease of existing buildings to the purchase of raw land and the sale of improved land or parcels to others.Many real estate investors are keen to step up to the next level and get involved in property development. Let’s look at these in detail.
What is property development?
It is the continual reconfiguration of the built environment to meet society’s needs. Somebody must motivate and manage the creation and eventually the recreation of the spaces in which we live, work and play. The need for development is constant because of our massive population growth and the changing tastes of how we want to live. Developers are the coordinators of the activities, converting ideas on paper into real property. Real estate development is different from construction, although many developers also construct. Developers buy lands, finance real estate deals, build or have builders build projects, create, imagine, control and orchestrate the process of development from the beginning to end.
What makes a good property developer?
Successful property developers aren’t born and they’re definitely not created overnight. Their success comes from a combination of attitude, experience, education, instinct and the lessons learned from both victories and failures. Property development is an extremely creative process. Successful property developers are a bit like movie producers. They take a project from the conception of an idea in somebody’s mind through the design and process the approval phase, financing, construction, marketing and then eventually the leasing or sale of the project.
Characteristics of a Developer
Developer assembles a highly talented team of people and skill-fully led them to develop a profitable outcome, which means they need to be proactive and make things happen. They must also be creative, flexible and adaptive to take their project through this maze. Developers need to work hard, have patience, remain focused and have a burning determination to succeed. While the process of property development can be a lot of fun, it is not without some pain and considerable risk. Developers follow a sequence of steps from the moment they first conceive a project to the time and they complete the physical construction and begin ongoing asset management.
Who can become a property developer?
The big development projects are usually constructed by large corporations, many of the medium density developments in the suburbs of the capital city are run by part time property developers who have a “real” full time job. Some are in property related industries such as builders, architects or estate agents, but many are “ordinary” successful property investors who are now looking at development to fast track their wealth.
If you are looking for Melbourne’s property specialists, talk to us at Carter Property Enterprises.
3 Reasons Why You Should use a Property Consultant!
Why do people choose a real estate consultant when purchasing a property to occupy, or invest in? What can a client expect when opting for a property consultant? If you are serious about making the right decisions regarding your investments, it is wise to seek out the help of an experienced real estate consultant. In this article, we check out a few reasons why you should engage a real estate consultant before making an investment.
Experience, Knowledge & Market Research
Real estate consultants have several years of investment experience in the real estate industry.They know what to look for and what to ask, they’ve seen it all before. Also, they can identify when things are too good to be true, when to hold and when to fold. They will pursue the negotiations on your behalf and get you the best buying/selling price than any other party can offer. A property consultant will perform due diligence on government infrastructure spending,look at trends within the housing markets. Moreover, they know the market and the locality. If you are buying a property, they can help you choose the right property at the right price. And if you’re selling, they’ll know the prevalent rates, how much your investment is worth, and how you can better capitalize on it.
Legal Clarity & Taxation Rules
If you are buying a property or selling one, there are a number of legal issues you will have to consider. A real estate consultant will have better clarity on legal requirements, and help you comply with them all. A good property consultant can not only find a property matching your specific requirements, with the addition of information on tax minimization & investment benefits.
Stress Reducer
A property consultant is ready to hear you out, answer your queries, and clarify all your doubts.They can help you save a substantial amount of time. They will help you tremendously by being the one person you can turn to who can help you with exactly what you need. It is important to make your needs and specific requirements clear to your property consultant. Apart from all that, a property consultant will have more experience in finding a property based on a group of specific requirements than the average person. So having an expert manage the busy work of buying a property is a blessing and a stress relief.
The right real estate consultant can help you boost your financial prosperity to the next level. If you’d like to get an individual review, please feel free to contact your trusted property management specialist at Carter Property Enterprises.
Things to Know before making a Property Investment
Buying an investment property in Australia is one of the best ways to invest, which helps in increasing your wealth and securing your financial future. You need to keep in mind that how effectively you manage your investment will determine whether or not the investment helps you reach your financial goals. In this article, we try and look at things you should know before you make a property investment.
Choose the Right Property
Property investment is one of the best ways to financial growth. Choosing a property that is more likely to increase in value is the most important decision you will make, so buying at the right price is absolutely critical. Be careful purchasing real estate in an area that you are not familiar with, unless you have a property consultant that can assist in educating you, to actually know the area, and reasons to consider it. Good Property Consultants, some Lenders and mortgage brokers have valuable data on different locations and property developments. You should try and access this information to avoid picking the wrong investment property.
Know the Market
Look for properties in that area where there is potential for capital gains. Property experts regularly provide tips on up and coming suburbs. Also, you can access a lot of information on the internet. Things like planned development can affect the future value of a property. A planned bypass near to your property may mean traffic will be reduced and this may increase the value of your property quicker than expected, or improved infrastructure could see the area become more attractive and as a result increase in value.
Established vs New
Purchasing established property that is not in peak condition is an opportunity to improve the value of the property by fixing the place up can also increase your returns for both capital growth and rental income, however it can provide challenges surrounding renovation issues,planning limitations and your budgetted costs getting out of control.
Buying New property & property off the plan can limit the management, provide 3 – 12 months defect mitigation and 6 – 7 year building insurance, so you won’t find that the hot water service or fence need replacing when you haven’t planned it in your budget. From an investment perspective, the depreciation benefits to your tax position can be so beneficial that the ongoing cost of your investment can put money back in your pocket sooner rather than just if you sell.
Find the RIGHT Property Manager
A property manager is usually a licensed real estate agent that is a professional in their field and their job is to keep things in order for you and your tenant. They can manage your tenants and get the best possible rental return from your property. The property manager will also help you find the right tenant, conduct reference checks and make sure the tenants pay their rent on time. The good news is that the cost you pay for your property consultant is usually a percentage of the rent paid, is deducted from the rent and is tax deductible.
If you’d like to get some individual advice, please feel free to contact your trusted property management specialist at Carter Property Enterprises.
4 Golden Rules of Investing in Property
An investment property has many benefits and if chosen carefully can provide you solid financial returns. There are many investment alternatives like stocks, bonds and cash etc.But property investment is one of the safest and easiest options. You will get a steady capital growth as well as regular monthly rental returns. Unlike other investment, you will get a full control over your property investment. Following are the four golden rules for investing in property.
Do more Research
So, are you planning for property investment? Before you go ahead and invest, you will need to do a lot of background research to make a good decision. Know the market well and understand the growth of the market. Smart investors never invest in anything they don’t understand. They buy a property below its intrinsic value, in an area having long term capital growth and then add value creating some extra capital growth.
Know Location
Always do research about the location. Evaluate your investment property’s access to freeways and public transports. Also search that if the area is good for new investments. Property markets always behave cyclically. Each boom sets us up for the next downturn; similarly each downturn paved the way for the next boom, as it has over the last year.
Do the Calculations
Always take time to understand the financial impact of purchasing a particular property. Before making an investment you should have the knowledge about the tax implication of stamp duty on the property, capital gains tax purposes etc.Tax laws on property investments are very complex. So ask some financial advices from experts. They offer an end to end service, which includes the necessary step of putting tenants in your property!
Understand where the Risk Really Lies
Many investors strongly believe that, in property investment there is a direct relationship between risk and reward. If higher the reward, more the risk must be. But that is not true. Property investments have less risk than investing in shares and mutual funds. You can make your investment journey safer by educating yourself and developing a level of financial fluency.
Still have doubts? Go and meet with your trusted financial advisor at Carter Property Enterprises to make sure that the property fits your investment goals.
Tips for First Time Home Buyers
Buying a home for the first time is a challenge for many. You may have a dream of owning the hottest apartment in the area, admired by one and all. However, getting it right is a major challenge. The real estate industry in Australia is a booming one. So, if you want to buy a property, you have to move quickly, make the right choices and get the best deals. Otherwise, you may end up paying more than you bargained for. Here are some factors what you should be aware of, before buying a new home in Australia.
Make a Financial Plan
Before starting your search for your dream home, you need to make a good financial source. Most of the people opt for a mortgage. Think twice before choosing this step. When you apply for mortgages, lenders will check whether you can afford repayment and if you can able to make repayments properly. As part of this process, you will need to show evidence to prove your income. Apart from this monthly payment, you need to pay mortgage arrangement and valuation fees, solicitor’s fee, survey cost, removal cost, building insurance, initial furnishing and decorating costs etc. For more information on mortgages and repayment plans, it is best you talk to our consultant Ash Carter.
Make Proper Selection
Take the advantages of all the available options for searching homes in the market. If you find something matching your requirements, go for it. Do your research on the neighborhood, ease of access, facilities and the market value of real estate in your area of choice. Make an offer possibly without affecting the seller. Many people think that if they start with very low price, they will end up with a better price on the house. But actually it ends up in a negotiation war. So negotiate for a fair market value.
Go for a Home Inspection
Owing a home is your long term goal. If you feel the apartment you have selected is the right one for you, take the time to go for an inspection. Get the assistance of a trained professional to check for the quality, safety and overall conditions of your new home. If you are not entirely happy with the condition of your home, you can request the seller to make necessary arrangements for repair.
Move In
Everything is ok? Your inspection didn’t reveal any significant problems? It’s the time to close the agreement. Let your property management concern know you are ready to move in to your dream home and let the professionals draw up the necessary paper work for you to sign and maintain.
If you are serious about purchasing or renting out apartments in Melbourne, talk to our professionals at Carter Property Enterprises today!