Presales and Pre-Construction Washington DC Real Estate

Stop By Again & Show Your Friends:

UESDAY EVENING 3/12 6-8 PM - 2 Great Condos in Eckington Washington DC Listed Below:

ECKINGTON NEIGHBORHOOD HIGHLIGHTS:

- NY Red Line METRO 2 Blocks Away
- XM Radio & FedEx Hdqrts 1 Block Away
- New Federal Govt Center Nearly Complete at NY METRO
- Huge NoMa Development Plans/Shopping Nearby
- Giant, Safeway, Home Depot, Banking & More Nearby

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CAPITOL OVERLOOK II Eckington

223-227 R Street, NE - 6-8 PM
6 2-Level Townhouse Lofts - 2BR + Den or Lofts

223-227 R Street, NE
6 New Construction Duplex Loft Units w/Huge Contemporary Double Volume Living Spaces and a Townhouse Feel.

FEATURES:
- High Ceilings - 10'-20'
- Floor-to-Ceiling Window Bays
- Open Layouts w/Separate Lvg/Din Areas
- Recessed & Pendant Lighting
- Contemporary Kitchens w/Glass & Steel Detailing
- Luxe Tile Baths w/Vessel Sinks
- Walk-In & Built-In Closet Systems
- Speakers/Intercom Systems Throughout
- Full Size Washer/Dryers
- Private Balconies/Decks & Patios
- Garaged Parking Included

PRICING:
from $497,250 including Parking

Special Grand Opening Incentives!!!

DIRECTIONS: U Street to left on R Street, across N Capitol to 223 R Street, NE

-AND-

THE WINTHROP Eckington

1956 3rd Street, NE - Near NY METRO
Bright Smart Units w/Spacious Layouts, Outdoor Space & Tons of Light.

FEATURES:
- Stylish Bamboo Hardwood Floors
- European Maple Cabinetry
- Stainless Steel Appliances
- Granite Kitchen Counters & Bath Vanities
- Marble Baths w/Seperate Showers
- High Ceilings w/Recessed Lighting
- Patios & Outdoor Space (per plan)
- PARKING INCLUDED

- 1BRs from $199,900 - Parking Included
- 1BR+Dens from $294,900 - Patio & Parking Included
- 2BR/2BAs from $309,900 - Patio & Parking Included

***3% Closing Cost Credits***

DIRECTIONS: U Street to left on R Street, across N Capitol, Past Capitol Overlook II, Left on 3rd to 1956 on Left.

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See you there!

UrbanLand Company
Real Estate Brokerage
202.299.9223

There are more condominium developments and presales Washington DC condos listed here. For pre-construction Virginia real estate, press here.

No Real Estate Vacancy in Vietnam

From the Vietnam Economic Times for Feb 2007. Most serviced apartment complexes in Hanoi and Ho Chi Minh City are full and rents continue to rise, presenting an opportunity for real estate investors and developers. Linh San reports.

After announcing in late 2006 that it would acquire a 206 unit serviced residenced from the HOa Binh Co., Ltd. in Hanoi’s Cau Giay District, the Singapore based Ascott Group’s portfolio in Vietnam rose to 794 units in five properties of real estate. The acquisition of Somersat Hoa Binh was timely given the limited supply of good quality accommodation real estate in Hanoi.

“There is a shortage of internationally managed Grade A serviced apartments in Vietnam, especially in Hanoi, “Mr. Cameron Ong, Ascott’s Managing Director and CEO told Vietnam Economic Times. The average occupancy rate across Ascott’s Vietnam real estate properties is above 90 per cent, he said, while the real estate market average is about 85 per cent. “It is clear that there is potential for growth,” he believes.

Mr. Peter Dinning, Director of VinaCapital’s property investment real estate activities is of the same mind. “Our research suggests that almost all serviced apartment projects in Hanoi and HO Chi Minh City are full and rents continue to rise, with real estate projects such as Bitexco’s The Manor in Ho Chi Minh City now completed and attracting many international tenants,” he said. VinaCapital’s $205 million real estate investment fund Vinaland has invested in 14 real estate projects in Vietnam’s key population areas, including Hanoi, Ho Chi Minh City and Da Nang.

There are 46 buildings from Grade A to C in Ho Chi Minh City, according to Chesterton Petty Vietnam, including 2,425 international and local serviced real estate apartments for relase, with nearly half of these being two bedrooms apartments and approximately 1,0000 are villas in various districts. The 30 buildings from Grade A to C in Hanoi now have 98 per cent occupancy rates.

“In general, the serviced apartment markets real estate in both cities are performing very well,” said Mr. Brett Ashton, Deputy General Director of Chesterton Petty Vietnam. “Occupancies are near 100 per cent and rents are rising. Demand for real estate is coming from new expatriates entering Vietnam as well as some Vietnamese peple now renting.” He added that with so many real estate developers deciding to change to apartments for sale, few new serviced apartments will be coming on to the market in the next few years.

According to CB Richard Ellis, Hanoi’s serviced apartment real estate market will be bolstered by 520 new units in 2007, with projects such as Skyline Tower in Dang Dung Street, Elegant Suites in Ha Hoi Street, DMC Tan Long in Kim Ma Street, Atlanta in Hang Chuoi Street and Syrena in Xuan Dieu Street.

Skyline Serviced Apartments, overlooking Truc Bach Lake will be the latest serviced apartment real estate building to come online when it opens in January. Eighty eight much needed serviced apartments will be added to a sector that is almost fully occupied and in great demand. Due to the shortage of serviced apartment condominiums in the city and the relatively high price per square metre, CBRE has noticed a trend for expatriates to consider moving out to Ciputra International City, where furnished and unfurnished apartment condos and villas can be rented from $600 to $3,500 per month from local homeowners.

New real estate condo projects in Ho Chi Minh City include Indochina Park Tower in Nguyen Dinh Chieu Street, Pasteur Court in Pasteur Street, the Lancaster in Le Thanh Ton Street, Phuong Nam Swiss Attis Riverside in Saigon South, Times Square in Nguyen Hue Street and Kumho Plaza in Le Duan Street.

“The supply of luxury real estate residential units in Hanoi and Ho Chi Minh City has remained fairly static throughout 2006,” Mr. Martin Roumens, General Director of Chesterton Petty Vietnam said. “Notable additions include Elegant Suites in Hanoi, which was leased within four months of opening with only one or two units remaining.”

He noted further that real estate vacancy rates are slightly higher in Ho Chi Minh City than in Hanoi, which ahs very few condo units available, mainly due to the natural turnover of expats. “As the real estate property management company of the largest number of high-end units int eh country, we have seen demand continue to rise in 2006 and we expect this to continue in 2007. Hanoi will see a significant amount of new condominium supply this year, mainly in the West Lake area with Syrena Apartments leasing 171 apartment condos onto the market. We expect over 400 new units in total before the second quarter, which will have an impact on occupancy rates, but this will adjust with high demand so rentals will not be affected.”

Chesterton Petty predicts that serviced apartment condominiums rents in Ho Chi Minh City will remain stable until 2008 and thereafter will decrease as more apartment real estate developments are completed. Overall the company expects to see occupancy levels remain at around the 90 per cent mark.

Real estate investors have judged that the serviced real estate condo apartments in Veitnam is still in its infancy compared with other regional cities, and so has great potential. “The serviced apartment market in Vietnam is at a very early stage of development real estate with total stock of units being very small compared with cities such as Manila, Jakarta and Bangkok, and as a result rental levels of real estate are much higher than the other cities due to the limited supply but high demand,” said Mr. Dinning. “We expect this trend to continue for a number of years to come, making the real estate development of serviced apartments more profitable than in other regional cities.”

Mr. Ong from the Ascott Group agrees. “With GDP growth of 8.2 per cent in 2006, we see great opportunity here and Vietnam will continue to be a key real estate market for Ascott,” he said.

Other real estate investors are optimistic about serviced apartments in Vietnam. Recently, Lee and Co Development received a licence for a residential real estate and clean industrial complex on an area of 24.7 ha in Ho Chi Minh City’s District 7. The $76 milion real estate project involves two Vietnamese partners: Saigon Electric Construction and Investment and Khanh Gia. The real estate joint venture involves five high-rise apartment buildings with some 2,000 units, in addition to recreation, health and school facilities.

In mid December, Posco Construction and Engineering and its partner, the Vietnam Construction Import-Export Corporation (Vinaconex), received a licence to develop Bac An Khanh, a new urban centre in the northern province of Ha Tay. The real estate development project of $1.4 billion is epected to be the most modern in Vietnam and be developed through to 2020, with 7,600 apartment condominiums and houses and a 75 storey office block and other facilities.

Both CBRE and Chesterton Petty believe that Vietnam’s WTO entry have a positive impact on the serviced apartment sector. So do real estate investors. “With Vietnam joining the WTO, we expect it to experience continued growth in terms of FDI,” said Mr. Ong. “With more expatriates coming to Vietnam, we expect the hospitality industry to experience growth in tandem. In the short term we see occupancy and price in the hospitality industry soaring until a significant level of new supply in the real estate market eases the demand.”

“The signing of the TWO has an overall impact on real estate in Vietnam by providing more demand for property in every sector, whether that be industrial, commercial offices, retail or residential,” Mr. Dinning said. “This continuing rising demand stimulated by the WTO entry will allow serviced apartment real estate developers to increase in number and still provide a decent return on their investments.“

The Time Is Now

With FDI almost certainly continuing upwards, the shortages found in Vietnam`s real estate market offer a golden opportunity to foreign investors writes Le Cam Le.

More than at any other time in the past, Vietnam’s real etate market has become an attractive investment destination for foreign investors. In just the opening weeks of the new year, a wave of foreign direct real estate investments (FDI) has poured into not only major cities like Hanoi and Ho Chi Minh City but also to other areas not previously regarded as magnets for real estate investments.

Amberlamb, an independent online publication featuring expert overseas property investment research, advice and information, has assessed Vietnam’s two largest centres – Hanoi and HO Chi Minh City – as investment destinations of potential. Hanoi, Amberland wrote, has opportunities in the residential real estate and commercial rental markets and offers developers a chance to create anything from office and retail space to satellite towns to service Hanoi workers with affordable and desirable suburban condo properties. Ho Chi Minh City, meanwhile, has grown to become the largest centre in the country and accommodation issues are beginning to push real estate rental prices upwards.

A number of key factors have made real estate become more attractive in the eyes of foreign real estate investors. “As a direct consequence of the total absence of FDI in real estate for about ten years from 1995, Vietnam’s cities are now facing a chronic shortage of all types of space, including office and commercial accommodation,” said Mr. Rick Mayo Smith, Managing Director of Indochina Capital. “Office rentals have roughly doubled over the past five years and are now more or less on par with Singapore. Space shortages and inevitably, rental real estate increases look set to continue in the short term.”

This drives interest among foreign investors in developing sites – especially large plots close to the city centre where many perceive that rentals and values will continue to increase and remain consistently strong – and most insist on “owning” 100 per cent FIE licences of at least 50 years. However, the shortgage of suitable sites and the numerous legal obstacles have sufficiently deterred most from investing in real estate and so rentals have now climbed in both the main cities.

Described by Mr. May-Smith as the “Country of the Year” Vietnam’s official admission into the WTO makes it able to bring in higher levels of FDI. As the financial services sector better develops, more capital will be found for real estate investments in commercial real estate. “Because of the demand and supply imbalance and because office properties are the preferred real estate investment of many developers, we anticipate an enormous amount of new stock will come onto the market over the next 10 to 20 years,” said Mr. Mayo-Smith.

Therfore, while the domestic real estate market has become stagnant, many foreign investors see that now is the right time to develop real estate projects in Vietnam. Indochina Land with over 15 years of experience, is in a strong position to succeed. The company has financed and developed over $1 billion in real estate in the past and will build another $1 billion worth in the next five years.

In just a short period of time, more than 20 foreign invested projects real estate valued at hundreds of millions of dollars have flocked into Ho Chi Minh City. Those such as Saigon Sport City, invested by a Singaporean company and worth $130 million, the Taiwanese invested $428 million Saigon Happiness Square, and the Bonday Ben Thanh Tower belongs to Hong Kong real estate investors and worth $55 million. SP Setia, Malaysia’s biggest real estate group, came to Vietnam in October last year and is planning some major projects in the south of the country. Indochina Land has been a pioneer in Da Nang and has some key projects in this economic hub of the central region including Riverside Tower.

Real Estate: Rent or Buy your primary residence real estate?

An investor’s viewpoint on whether to buy or rent a property by Stuart Wemyss of API Magazine (Feb 2007). Which is better, renting your home or buying? It’s a topic that’s been discussed ad nauseam, but there are important considerations specific to real estate property investors which need to be considered.

I was recently asked for my views on the ‘rent versus buy’ question. I sat down and prepared a spreadsheet which compared the two options, like a typical accountant! There are some important assumptions used in this calculation including:

- I prepared the comparison over a five-year period. Holding a real estate property for less than five years isn’t generally viable, because of the large transactional costs such as stamp duty and selling costs.

- I assumed the real estate property mortgage interest rate was 7 per cent. According to the Reserve Bank of Australia, the standard variable rate over the past 10 years has fluctuated between 6 per cent and 8 per cent. Therefore, 7 per cent is the midpoint.

- The real estate buyer borrowed 80 per cent of the property’s purchase price to avoid the cost of mortgage insurance (therefore, they had a deposit of 20 per cent plus costs).

- The renter had to pay a rental yield of 3.6 per cent (therefore, the rent payable on the real estate home worth $400,000 is $14,400 per year, or $277 per week).

- The renter is able to earn an interest rate of 6 per cent on any savings deposited in a bank (i.e. the money they would have used as a deposit).

- The real estate renter saves the difference between the potential mortgage repayments (principal and interest) and the lower rental costs. For example, if the renter bought a $400,000 property, the monthly momrtgage repayments would be $2130. However, renting a $400,000 property real estate would cost $1215 a month. Therefore, I assumed that the renter saved $915 per month ($2130 less $1215). This is a really important assumption. More about this later.

The results

What my calculation revealed was that the key variable was capital growth, which is the amount of rate at which the real estate property’s value would increase. I worked out that if you’re buying a home and you expect the capital growth to exceed 6.4 per cent per annum (on average over a five year period), then you’ll be better off buying that home rather than renting it. Therefore, in my opinion, the key question to ask yourself if you’re thinking of buying real estate a home is what capital growth can I expect if I buy the type of property I want (i.e. house, apartment etc.) in the area I want to live in? If you think the average capital growth over the next five years will be less than 6.4 per cent per annum, then you’re better off renting in the same area and not buying real estate property.

I based my calculations on the assumption that the real estate buyer would borrow 80 per cent of the property’s value. However, if you need to borrow a higher percentage of the property’s value, say 95 per cent, then the capital growth rate needs to exceed 7.6 per cent for you to be better off buying real estate rather than renting a home.

The higher the purchase price, the higher the capital growth rate needs to be. I based my numbers on a purchase for $400,000. Howver, if you’re spending $800,000 on a property purchase, the capital growth rate needs to exceed 7.9 per cent for you to be better off buying. If you’re spending $1.2 million, the capital growth rate of the real estate property needs ot exceen 8.4 per cent and at $1.5 million, the rate needs to exceed 8.6 per cent.

Achieving capital graoth of real estate above 6.4 per cent to 8 per cent

Many people reading this article may think property prices will be pretty stable over the next few years. From that, they may deduce that they should rent and not buy. However, their opinions may have been incorrectly influenced by “average” property real estate price data and media hype. It’s important to understand that the property market is very fragmented.

While real estate property values overall remain steady, values in some suburbs will increase and values in other suburbs will decrease. In fact, certain streets within a suburb may outperform the suburb as a whole, and other streets will underperform the suburb. Therefore, condluing that “because property values are expected to be flat across the board it’s not a good time to buy property” is ill informed. You need to research the particular area where you’d like to live.

Monique Walkin, director of Wakelin Property Advisory, suggest real estate investors should aim to achieve long term average capital growth rate of 5 per cent to 8 per cent in excess of inflation. The inflation rate is currently around the 3 per cent mark. Therefore, Wakelin believes real estate purchasers should be able to achieve a nominal (long term) capital growth rate of 8 per cent to 11 per cent.

“Astute real estate purchasers should be able to generate strong capital growth by selecting a quality asset that exhibits scarcity value,” says Wakelin.

For more information, please visit apimagazine.com.au or read on to the next blog string for the second part of Rent or Buy Real Estate.

The Point at Mission Hills in San Diego

Hurry up as The Point Condominiums are now available for purchase in Central San Diego, California. Priced in the mid-three hundred thousand to upper four hundred thousand, these affordable Mission Hills Point Condos are a condo conversion property development by Boyd Smith.

According to the successful marketing real estate team at The Point at Mission Hills real estate development, these condominiums are all about location, living and lifestyle and are presented by SD City Homes. In terms of living, the Mission Hills area in San Diego CA is one of the quietest and most beautiful communities to live in regardless of whether you are looking to date, having a family or retiring. There is something for everyone at The Point at Mission Hills condominium residences including short drives to downtown San Diego, speciality boutique shopping, groceries, cafes, restaurants and of course theatres. The SD Point Condos provides the utmost in low maintenance and comfortable living spaces and they blend in elegantly with the surrounding community, making you part of a master-planned residential district that has everything going for it. With a slightly urban feel yet still a quiet and peaceful neighorhood, the Mission Hills Point Condominiums in San Diego California is part of the oldest and most prestigious community in all of the city with a dedicated and awesome address to go along with it too. Come see for yourself how The Point Condominiums can be your dream home in San Diego at an affordable cost.

The numbers

For more information about the San Diego Point at Mission Hills condos, please visit their marketing web site located online at the following URL: http://www.thepoint92103.com/site.html. The Point Condos are built by the real estate developers Boyd Smith and are located in central San Diego California at 836 West Pennsylvania, SD 92103. This San Diego real estate development will consist of three stories and offer just forty eight luxurious condominium units. The Point at Mission Hills SD California will contain only thirty one bedroom and one bath units as well as eighteen prestigious two bed room and 2 bath residences. The two cross streets include West Pennsylvania Avenue and Goldfinch Street. As mentioned above, the Mission Hills Point homes are actually condo conversion property that will offer condominiums between the sizes of seven hundred and fifty all the way to one thousand and fifty square footage, very large for urban San Diego condo properties currently in the market. IN addition, the price range for the Point Condos at Mission Hill in California will be between three hundred and forty nine thousand nine hundred USD to four hundred and ninety nine thousand, nine hundred dollars. This conversion real estate property at Mission Hill is actually now complete and available for purchase and immediate move in. The site plan for The Point can be downloaded from their web site at the following link: http://www.thepoint92103.com/images/siteplan.pdf.

Sales and other information about The Point San Diego

For any sales information and condo availability at the Mission Hills real estate properties, please contact them by telephone at 619.298.7688. The sales presentation centre is located on site at 836 West Pennsylvania Ave in San Diego, California. You can also email the sales manager at the Point at Mission Hills at magan@sdcityhomes.com. The office hours for the Mission Hills San Diego condo conversion is between 10am to 5pm Monday to Sunday. For a map of the area, please visit: http://www.thepoint92103.com/contact.html.

Interior and Exterior Features of the Properties

For any home buyer or tenant at the Point at Mission Hills condominium properties, you will be able to enjoy a huge list of different interior and exterior finishes and amenities not seen in other pre-construction or condo conversion properties in San Diego. The Point offers absolutely new and oversized windows to allow lots of light into your residence as well as secured property with a new intercom system. For health enthusiasts, there is a fitness center in addition to private lockers and secure underground parking for all residents. Also, the Point at Mission Hills in San Diego CA will also offer expansive decks, balconies and terraces in addition to professional landscaping throughout the community grounds and views of downtown San Diego and the ocean from select condo units. The San Diego Mission Hills Point Condominiums will offer interior features that include chrome hardware, designer paint (new), travertine tub, mirrored doors, plush carpets, tile flooring, maple wood cabinets, granite counter, stainless steel kitchen appliances, air conditioning as well as in suite washer and dryer. What more could you ask for in a condo conversion property such as the Point San Diego? The answer is: nothing!

Floorplans at the Point

The Mission Hills properties web site features four floorplans. The first two are one bed and one bath floor plans at The Point San Diego including Unit 106 which is approximately nine hundred square feet from $354,900 and with HOA fees of $160.00/month. Unit 102 is also a one and one at The Point at Mission Hills in California and features 775 sq ft and priced from $349,900 with fees of $166/month. The first two bedroom and two bathroom condo converted Point residence is Unit 101 at 950 sqft and is priced from $464,900 and has HOA fees of $185/month. The last floorplan online at The Point San Diego Mission Hills property website is Unit 107 and 110 with 1050 sq footage and pricing from $454,900 and fees of $197/month.

For more California real estate properties and San Diego condo projects, click here.

Cosy Warmth Without a Flue – Real Estate Condo Trends and Tips

An innovative new freestanding fireplace runs without a hard connection, is environmentally friendly and the ideal answer to those lacking a chimney to fuel the fire.

A Vancouver retailer is selling fireplaces for people who thought they couldn’t have one. Vancouver Gas Fireplaces is now selling the EcoSmart Fire, a high-quality free-standing fireplace that runs on ethanol without any connection, flue, chimney or gas line.

“The design is simple, portable, attractive, and doesn’t require installation,” says Robert Koby, president of Vancouver Gas Fireplaces. “We’re finding that condo dwellers are all over it.”

Conceived in Australia, the EcoSmart fire provides unprecedented flexibility – it fits just about anywhere. The EcoSmart Fireplace has a contemporary look that makes it suitable for apartments, houses, bars and restaurants.

“Some places were built without fireplaces or don’t have access to natural gas lines. Now the EcoSmart Fire provides the opportunity to have a fire feature,” says Koby.

Features of the EcoSmart Fire:

- It can be installed in a pre-existing fireplace site or be free-standing.
- It is environmentally friendly – fuelled by denatured ethanol, a renewable modern energy, it burns clean and is virtually maintenance free
- The EcoSmart fireplaces have no flue and require no hard connection
- the core of the EcoSmart fire is a metal box about 10 centimetres high and 30 centimetres square with a slot in the middle for the flame.
- the fuel reservoir is in the base of the metal box
- The core EcoSmart Fire can be installed in an attractive frame of fascia to suit the setting
- The EcoSmart Fire has been independently tested and has UL approval
- Units are compact and portable so ideal for apartments houses, bars, restaurants and offices
- The EcoSmart Fire can regulate the intensity of the flame and turn it on or off at any time.

The EcoSmart Fire is available at Vancouver Gas Fireplaces, www.vangasfireplaces.com, phone 604.732.3470.

Real Estate Affordability | Wages Not Keeping Up

House prices have grown more than twice as fast as wages over the past decade – making it harder to save a deposit and harder to pay off a loan. By Mark Armstrong and Fiona Marsden for the API Magazine February 2007 edition.

Housing affordability across Australia seems to worsen each year – yet real estate house prices in several Australian cities haven’t moved substantially since 2003. We crunched some numbers to find out why.

According to the Real Estate Institute of Australia, the national median house price in 1996 was $161,312. By 2001 it was $248,993 and by 2006, it had climbed to a whopping $407,538 – an average annual increase of almost 10 per cent.

A look at wage growth statistics tells a different story. Figures from the Australian Bureau of Statistics show that average annual earnings were $35,251 in 1996. By 2001, they were $43,555 and in 2006 they had risen to $54,668.

That’s an average annual increase of around 4.5 per cent – less than half the growth in real estate prices for the same period. Small wonder affordability is getting worse, even in major cities like Sydney and Melbourne where the last property boom finished in 2003.

The real estate affordability squeeze is hitting first homebuyers on two fronts. First, they have to put aside a higher proportion of their earnings to save a deposit. In 1996, someone on average weekly earnings needed to put aside 9 per cent of their income to save a 10 per cent deposit for a median priced home over a five-year period. By 2006, they had to put aside 15 per cent. Second, even if they do manage to enter the real estate market, homebuyers have to put a higher percentage of their earnings into loan repayments. In 1996, someone buying a median priced home had to devote 34 per cent of average earnings towards their real estate mortgage. In 2006, this figure has jumped to 47 per cent.

Moreover, these figures refer to the official cash rate set by the Reserve Bank. The retail rate set by lenders is generally 1 to 2 per cent higher, so the actual percentage of earnings going towards loan repayments would be much greater.

In this context, the prevailing real estate interest rate also plays a role. In 1996 when homeowners spent 34 per cent of average earnings on a median priced home, the cash rate was 7.5 per cent. In 2001, when the cash rate had fallen to 5 per cent, the percentage figure dropped to 29 per cent. Interestingly in November 2006 when the cash rate was 6.35 per cent, real estate homeowners had to devote a higher percentage of their earnings towards loan repayments than they did in 1996 when the cash rate was higher. Clearly, the slow increases in wages relative to house prices is now the most significant factor in determining real estate affordability in Australia.

In this environment, real estate markets that are out of sync with the national norm will start to experience major corrections in 2007. Perth and Darwin, where house prices have increased far more quickly than other cities in the past few years, will be in for along period of adjustment if the mining sector starts to come off the boil as industry pundits predict.

At the other end of the scale, newly real estate developed outer suburban areas that rely mainly on young homebuyers for their chief source of demand will also suffer the fallout from plummeting affordability. If would-be first homebuyers can’t save a deposit quicly enough to keep pace with prices, they’ll stay away and values in real estate will fall. With eight increases since 2002, we believe the current interest rate cycle is nearing the end and the Reserve Bank will reduce rates in 2007. If it doesn’t, a growing number of young Australians will have to downscale their home ownership dreams – or face the prospect of permanent tenancy.

Mark Armstrong is a director of Property Planning Australia(www.propertyplanning.com.au) Fiona Marsden is an experienced property writer.

Real Estate Renovation Rumbles

Written by Michaela Ryan for the API Magazine in Australia, Jan 2007

How can you renovate a real estate property and keep your relationship intact?

First a confession. I find renovating real estate properties stressful. Sometimes it makes me lash out at my husband when really, we’re but just doing our best to work through what seems like the world’s longest “to do” list. But apparently we’re not alone. A survey by AAMI in 2005 showed 58 per cent of people find their real estate renovation projects stressful. Thirty per cent find the renovation real estate projects to be a source of tension with the people they live with.

For information regarding why you should purchase pre-construction condos in Vancouver real estate versus buying old properties, click here.

So how can you minimise that tension? As a real estate property investor, this is important to address, because if one bad experience puts you off renovating for life, you could miss out on some great opportunities.

Katrina Spyrides, executive officer of the Conflict Resolution Services to the ACT, suggests that before real estate renos, couples should consider the problems they’re likely to face and discuss how they’ll deal with situations if they arise.

“If the couple is anticipating (various issues) then they can be on the same wavelength, rather than all of these dramas being a shock to them,” Spyrides says.

Possible Real Estate Reno Problems

1. Feeling exhausted
It can be exhausting working full-time and then coming home to do physical work on a renovation of a real estate investment property. It can also be mentally taxing to coordinate tradespeople.

2. Inequality of effort
Resentment can grow if one partner puts more time and effort into the real estate reno than the other.

3. Kids
“(Your kids) are at a school during the week and they want mom and dad’s attention if they’re being shipped off at the weekends then they might start acting up as well,” Spyrides says.

4. Lower quality of life in the short term
During a real estate property renovation, time and money can be scarce. your lifestyle accordingly suffers.

5. Disagreements about the details
How much to spend on a bench top? Which colour? Whether to bring in a tradesperson or do it yourself? There are plenty of little decisions that can potentially lead to disagreements between partners.

6. Living in mess
If you live in the house you’re renovating, there could be tools everywhere. And there will be rooms out of action for periods of time. comfort levels can suffer.

Coping Strategies of Renovation or Real Estate Property

1. The pre-reno discussion
Before your renovation project, it helps to talk about the issues we’ve just mentioned and how you might be able to (a) avoid them, and (b) deal with them if they arise. It’s also worth creating a ‘to do’ list (which will be a work in progress). Delegate all the tasks and establish a realistic timeline. Budget carefully for your investment property renovation project. Factor in a buffer for unexpected expenses – every reno has them!

2. Choose a good time to talk
Conversations can be counter-productive if you’re angry or tired. If you have a problem you need to discuss, Spyride says, “Set aside time when neither of you are tired and talk about it.”

3. Switch off
“Sometimes within a renovation of real estate property couples start to see each other as sub-contractors and every bit of their conversation is about the renovation. It’s about putting that line in and saying, “okay after eight o’clock we won’t talk about the renovation,” Spyride suggests.

4. Outsource
If the DIY jobs are causing too much stress, investigate the cost of outsourcing. If a tradesperson can complete the job within a day that would take you a couple of weekends to do, they might pay for themselves because you can tenant the property a week earlier.

5. Keep an eye on your tradies
Try to check on your tradies’ work every day if possible. It’s amazing what you discover when you drop in for a chat! If you pick mistakes up straight away, you can avoid big headaches down the track.

6. One step at a time
If you keep thinking about how much there is to be done, it can feel overwhelming. Sometimes you need to keep your focus on the next task or two in your real estate property renovation project in order to keep stress levels under control.

7. Just deal with it
“not all problems can be resolved. But they can be managed,” says Spyride. “It doesn’t mean that you have to have a bed of roses at the end of the day. Sometimes things will just be the way they are and there is not resolution. It’s probably just about working through them until they subside.”

Take heart – the real estate renovation won’t last forever!

For more real estate renovation tips and pre-construction condo purchasing opportunities, please click on this URL.

Real Estate: Adding Value and Subtracting Value

Taken from the Australian Property Investor Magazine January 2007 edition ‘From Little Things Big Things Grow’ article.

Intense competition between bank lenders means you don’t have to feel the full pinch of recent interest rate rises. There are at least nine techniques you can use to secure a lower rate on real estate investment interest rates. By Matthew Liddy for the API Magazine January 2007 edition.

1. Just Ask

Securing a lower rate can be as simple as asking if you’re getting the best deal, says mortgage broker Glen Spratt. If your total borrowings are greater than $250,000, there’s a good chance you can get a discount off the standard variable rate.

“The discounts are generally tiered,” says Spratt, director of Mortgageport. “The bigger the loan, the larger the discount. Generally speaking on any loan these days over $250,000 you can negotiate a discount of anywhere from 0.5 per cent off the bank’s standard interest variable rate. I’ve seen discounts as high as 1.2 per cent.”

The real estate loans attracting discounts at the upper end of that range would total well over $1 million, he adds. Usually these discounts come under the guise of a professional package, which will roll in other services, such as free transaction banking accounts, gold credit cards and real estate mortgage facilities such as offset accounts. For the home borrowing package, borrowers pay an annual fee in the order of $300 to $400. Despite this approach of giving with one hand and taking with the other, Spratt says real estate borrowers can save thousands of dollars a year.

“If you’ve got a $500,000 loan and you’re getting a 0.7 per cent discount that’s $3500 a year. If they’re charging you $300 in fees, you’re still $3200 a year better off.”

David Johnston of Real Estate Property Planning Australia says a few lenders will even negotiate on the package’s annual fee as well as the interest rate.

If you don’t like the look of the professional packages, don’t despair.

CANNEX mortgage expert Harry Senlitonga says that’s not the end of the negotiation. “With the lender’s discretion, they may offer you a special deal, especially if you borrow above $500,000,” he advises.

2. Shop Around

If your bank lender doesn’t appear too keen to negotiate, look elsewhere. Competitors may be more willing to win your business. Watch out for the extra costs associated with refinancing, though there are ways to beat those as well. For instance, some real estate mortgage brokers will pay the costs associated with switching loans in certain circumstances. Or just use the better offer as a negotiating tool, suggests Johnston.

“If you prefer to stay with your existing bank real estate lender, but just want to try to get a sharper interest rate, you can just talk to your existing lender and say, ‘here’s this offer over here and you’re only giving me this – can you match that?”

3. Consolidate Your Loans

Since interest rate discounts are largely determined by your total borrowings, shifting all your loans to one bank lender could help. “The more facilities or more borrowings you have with them, the more negotiating power you have,” says Johnston.

“If it’s someone who might have loans spread across two or three different bank lenders, by bringing all those loans together with one lender, it’ll certainly allow them to negotiate more fiercely with the bank mortgage lender to get the best interest rate for themselves.”

4. Establish a Line of Credit

Borrowers who are comfortable with doing so can essentially beat the banks at their own game by setting up a line of credit.

A line of credit is a type of personal overdraft, explains Johnston. In the bank lender’s eyes, even if you don’t use the money, your total borrowing facilities are at a higher level. “Even if you don’t plan to use it in the future, you can set it up (and it) can help you to get onto a better professional package and negotiate better real estate mortgage interest rates,” Johnston reveals.

He says a line of credit, or LOC as it’s commonly known, doesn’t necessarily involve higher fees either, since many professional packages allow for a number of different borrowing facilities.

5. Fix your Rates

A lot of borrowers have switched their bank mortgage loans to fixed-rate products in recent months, Spratt says. “There are mortgage real estate products available today where the fixed rates have a lot of flexibility, such as having an offset account attached to a fixed rate loan,” he says. “Three-year fixed rates now are lower than even the discounted variable rates and when you can have something like a 100 per cent offset account attached to it, it still gives a client the flexibility of making additional payments to the bank loan.”

However, Senlitonga notes there’s no guarantee you’ll save money on a fixed rate since you’ll be tied to it even if the variabl rates come down. Johnston adds that bank mortgage lenders aren’t as negotiable on their advertised fixed mortgage rates as they are on their variable mortgage rates. “most lenders with fixed rates, you can negotiate a discount but it’s more around 0.15 per cent or 0.25 per cent at the higher end,” he says.

6. Accept Fewer Features

Johnston says real estate borrowers who don’t qualify for a professional package could opt for a discounted variable mortgage rate. “The discounted variable loans are the ones that don’t have quite as many bells and whistles, so they don’t have the 100 per cent offset account but they give you a lower interest rate,“ he explains.

The difference between standard variable and discounted variable rates is often around the 0.7 per cent mark. Senlitonga says a recent CANNEX study found more than 60 per cent of offset accounts had a balance of less than $5000, meaning real estate borrowers were paying to have access to a feature they weren’t really using.

However, Spratt, warns real estate mortgage borrowers to think twice before giving up certain extras, such as redraw facilities. “(It) can have consequences that might not be apparent now but may come to a head down the track,” he says.

7. Try a Non-Bank Lender

Non bank real estate lenders can often help borrowers save, Spratt says. “My experience is you can get the same sort of discounts you’d get from the real estate mortgage banks but you don’t generally have to pay the ongoing fee that y ou’d pay with the bank,” he explains.

“You might get the equivalent of a 0.5 to 0.7 per cent discount off the standard variable mortgage rate but you the ndon’t have to pay the $300 a year fee.” Senlitonga warns, however, that simply switching to a certain type of bank lender won’t guarantee you get the best loan. He says it’s important to match the right product ot an individual borrower’s needs.

8. Go Online

Bank lenders with online only products often offer good interest rates, though borrowers will sacrifice any loan extras and access to in-branch real estate services, Johnston says. He says online bank loans for real estate investments are probably the best suited to borrowers who have a good understanding of the mortgage real estate industry and who only need straightforward loans.

“They’re probably not set up for more complex loan structures for people with a number of investment real estate properties etc.,” he says.

9. Use a Broker

If you don’t feel comfortable negotiating with various real estate lenders, a mortgage broker can do this for you – usually at no cost to you. In addition, mortgage broker’s inside knowledge and access to 30-plus lenders can help secure a discount for your real estate investment.

“Mortgage real estate brokers are often able to fins epical deals or special offers that aren’t generally published to the real estate market,” Spratt says.

Johnston adds, “A good broker can shop around on your behalf and can know which lenders are offering the best pricing at a particular time. That’s something that is constantly evolving and moving and changing.

Using your home equity as leverage

Part 2 of the ‘Take Control: How Home Equity puts you in the driver’s seat’ article from the December issues of the Australian Property Investor magazine written by Monique Wakelin.

Many Australians and North Americans have something of a mental block when it comes to using the home equity in their own home as leverage to buy real estate investment property. They feel a little jittery about perceived risks to their primary source of security and shelter.

But most people who buy an investment real estate property already have a home an duse the leverage factor because it’s a ready-made “deposit”. This enables the home owner to “re-borrow” part of the equity of the home. These borrowings become a small part of a loan that’s paid back at the applicable rate, along with any other funds borrowed for the investment real estate property.

The basic principle is that home equity is the happy by-product of the initial deposit the owner put in, any principal that has been paid off and any capital gains the home has achieved.

The main benefits of using home equity to buy investment property are:

The Ability To Borrow
Up to 100% of the purchase price of the investment property plus costs. The investment property will remain the primary source of collateral for the lender, as they will generally finance 90 to 95 per cent of the value against that investment real estate property. The notion of “putting the home on the line” doesn’t apply under these circumstances.

There’s No Need To Own
Your home outright or sell it to access enough home equity for an investment real estate purchase. Wise use of this equity can put you into the wealth-creating assets much more quickly than if you wait until you own it outright.

While this strategy increases your mortgage on the home, a wisely chosen investment property will provide enough compounding growth to outstrip the cost of servicing the debt. The golden rule is for the real estate investor to focus on the quality of the asset they’ll own and not merely on what they owe the bank!

Smart investors in real estate and property categorise property borrowings in two ways: as productive debt and non-productive debt. Productive debt is used to purchase real estate assets that will grow in capital value and help contribute to financial independence. Non-productive debt is for consumable items that don’t increase in value or provide income – including cars, holidays and clothes. Non-productive debt attracts higher rates of interest as it’s usually sourced through credit cards or unsecured personal loans.

The residential property investor in real estate is using productive, tax-effective debt to make money through capital growth.

Details about home equity loans and more are found at this condominium resource website for condo owners.

Fountain View Condominiums in South Lyon Michigan

The builder for this particular Michigan real estate property development in West Metro is Neumann Homes who have put together a great selection of condominium homes at Fountain View properties.

Located at 1004 Fountain View Court in South Lyon, the Fountain View condo residences and townhomes is a new real estate development that will provide spacious living spaces in the serene, safe and quiet neighbourhood in South Lyon MI near Detroit. Within walking distance to local shopping, restaurants and of course, the impressive array of schools for children, the Fountain View residence condominiums in Michigan is located on Pontiac Trail and 9 Mile Road. For various availability of floor plans and home sites, please contact iNest today for a one percent off deal for purchasing through them at Fountain View homes.

A brief overview of the Fountain View Michigan Detroit Condos

The condo residences at the Detroit Fountain View real estate property is now available either through Internest or thorugh the real estate developer Neumann Homes. The actual property development at Fountain View is close to Detroit in a small district of South Lyon Michigan where you will find condominium suites between two and three bed rooms in addition to either 2 or 2.5 bathrooms per home. The square footage of the Fountain View Detroit condominiums will range between one thousand four hundred and eighty six square feet to one thousand six hundred and sixty sq ft in living size. With unbelievable floor plans still available for your condo home and a price range for Fountain View Detroit condos between one hundred and sixty nine thousand nine hundred and ninety dollars to one hundred and seventy seven thousand, nine hundred and ninety USD, this is a great family real estate investment for anyone looking to get into the market as a home buyer or real estate investor in Michigan.

The Neumann Homes Fountain View condominium residences are reachable at their address at

1004 Fountain View Court in South Lyon 48178-1568 and you can learn more about this real estate property at the following web address: http://www.internest.com/tadianhomes/tadianhomes14524.asp?source=nco~g=5~t=mi.

Some things never change when it comes to real estate investment opportunities, selling your home, mortgage financing and more.

No matter how much things change in the real estate world, there are at least four rules you can count on, writes Tim O’Dwyer for the Australian Property Investor magazine. Although we clearly live in a rapidly changing world, as a conveyancing solicitor I’ve long recognised and remarked on the “Immutable Laws of Real Estate”.

They’re not really laws but are certainly seemingly unchangeable rules of conduct. Or maybe they’re just ever-present facts of real estate life. There used to be three. Now there are probably four.

1. Real Estate agents move quickly
You can’t really blame them for this. Selling real estate successfully for seller clients is mostly all about timing. So real estate agents, by nature or training or experience, know they should move quickly in response to buyer’s enquiries. More significantly, agents usually move like greased lightning when it comes to sealing deals. In those parts of Australia where real estate agents are permitted by law to prepare sales contracts, sellers and buyers alike often find themselves under more than a little real estate agent pressure to sign up to binding contracts super-fast. Real estate agents seem to believe that if they hesitate in this regard, they’ll lose sales and miss out on commissions.

2. Solicitors move slowly
Or so it seems. Rather, we try to act cautiously. We’re primarily concerned for our clients’ interests and these are often best served by our not rushing in. Hence we usually take our time – to carefully read real estate contracts, check documents and consider the many troublesome issues that can often arise in even the most apparently simple conveyancing transaction. But we often do need to move quickly, especially when it comes to ensuring seller’s documentation is ready for settlement or critical searches are sent and received for real estate home buyers. Why? Because often we find our clients have already signed contracts, usually under speedy agent influence, with dangerously short time limits.

3. People change their minds
This is one of the prime reasons for the first two rules. Real estate agents invariably, and understandably, want consumers locked into legally enforceable contracts before they have time for second thoughts. Competent conveyancing solicitors know from experience how they must always be prepared for their own clients and the other parties getting cold feet and wanting out of apparently done deals. Sometimes when people do change their minds, solicitors have to become “contract killers” on behalf of their cold-footed clients.

4. Holidays happen
We all know that all sorts of things can happen to cause problems and put real estate sales at risk when you’re buying or selling but, for some strange reason, an awful lot of buyers and sellers seem to go on holidays after they’ve entered into serious contracts. They then return home only a week or so before settlement is due. Solicitors by and large have learned to cope with this but, gosh, it can often make things trickier, such as getting essential real estate legal documents prepared, signed and sent where they have to go on time.

The moral
Anyhow, the moral of this story is obviously not to sign anything without first getting sound, independent legal advice and possibly an independent valuation – no matter whether you’re buying or selling real estate. You simply must not let yourself by rushed. Try to be as certain as you can before you commit yourself and, if possible, try to keep your holiday arrangements flexible. After all, your solicitors should be just a quick protective phone call away – except when they’re on holidays. Then you’ll have to hope a legal locum is in place.

Tim O’Dwyer is a Queensland solicitor. Email: todwyer@westnet.com.au

Preparing your condo or real estate property for an earthquake and other condominium apartment tips

Originally published in the January 19 – February 02, 2007 Home Renters Guide in Vancouver, Canada by www.homebase.ca.

You can’t prevent an earthquake, but you can be prepared to avoid injury and be prepared to minimize the damage to your home. Go through your home, imagining what could happen to each part of it if it were shaken violently. For those living in a condo or apartment building, you may experience more sway and less vibration than in a single-storey building.

Work with your building or strata corporation manager to help quake-proof your home. Seek advice from professionals (insurance, engineers, and architects) if you are unsure what to do.

Previous earthquakes have proven that these items need attention:

- Tie down your water heater and other appliances that could break gas or water lines if they topple
- Secure top-heavy furniture like shelving units and armoires to prevent tipping. Keep heavy items on lower shelves.
- Fix mirrors and other hanging objects so they won’t fall off hooks.
- Located beds away from chimneys, windows, heavy pictures etc. Closed curtains will help keep broken window glass off nearby occupied beds.
- Put anti-skid pads (eg. Velcro) under TVs, VCRs, computers, and small appliances.
- Store valuable documents and special small keep sakes in a fire-resistant place.
- Keep sturdy shoes and outdoor clothing handy.
- Use child-proof or safety latches on cupboards to stop contents from spilling out.

Real Estate Apartment Safety

1. Never leave your apartment real estate property door unlocked, even while taking out the trash. You may find someone waiting inside when you get back!

2. If required to give the super-intendent a key to your real estate apartment or condo for emergency use, seal it in an envelope and sign your name across the flap with your signature overlapping onto the body of the envelope. This will deter against tampering. Periodically ask to see the envelope.

3. Make an effort to meet your neighbours. Learn to look out for each other’s interests. Know who “belongs.”

4. Don’t get on an elevator with a stranger. In an elevator, stand beside the control panel to have direct access to the alarm button.

5. Never isolate yourself in a basement laundry room. If possible, arrange to do laundry with a neighbour.

6. Never open your door to a stranger. Utility company employees can slip their IDs under the door. If in doubt, look up the company, telephone number yourself (don’t rely on a number they give you), and call to verify the information.

7. Do not prop outside doors open for any reason. If you find one propped open, close and secure it.

8. Use only your first initial on your doorbell and mailbox, and in the phone book for your real estate apartment address.

9. Immediately report any real estate building security problems to the super-intendent. Follow up to be sure the problem is corrected.

10. When your real estate apartment is unoccupied for a long period of time, leave a radio or television playing to give the impression that somebody is home.

Important tips for apartment condo finding

1. Get yourself in a gung-ho apartment condominium search frame of mind. You will be making dozens of phone calls and leaving many messages. If your messages aren’t returned the next day, you should call again, of course doing so with the utmost tact. If you don’t have a local phone number, get one. Apartment condos unlimited rents out very inexpensive voice mail boxes.

2. Keep your chequebook with you. When you see an apartment condo which looks good to you, you are going to have to decide and act upon it quickly. Good places do not stay on the real estate market long! People constantly lose good places due to indecision.

3. Collect all of your rental information before you visit your first vacancy.

4. Have a credit report with you and give yourself an edge over the next guy. Landlords will be impressed by your organization and preparedness. As well, you’ll save money by not having to shell out for each and every landlord who requires one.

5. Dress and groom as though you are going to a job interview. In many respects it is the same. Landlords for apartment condominiums of really good condo units usually have to pick of several applicants. They are looking for:

- Someone both able and responsible enough to pay rent on time.
- People who will treat them and their real estate property with care and respect.
- Quiet tenants who will not be disturbing to other tenants and neighbours.

6. Always keep your appointments and always show up on time. No-shows are a major source of frustration for building managers and condo landlords.

7. Don’t get discouraged! Finding a great real estate condominium apartment is not easy, but it is well worth the effort. Keep your chin up, get back on the phone and remember to always sound cheerful!

This is courtesy of www.homestore.com.

It’s time to pack up for your first apartment condo.

Here’s a helpful list of 10+ items to pack last and keep handy when you move to your new condo home … they’re things you’ll need to get to first and frequently.

1. Extension cords, batteries. Everything’s electric these days it seems. Computers, CD players, your Walkman, all those little gizmos you just can’t seem to live without. So it just makes sense to keep that extension cord or pack of new batteries right on top and within easy reach.

2. Tools. We’re talking hammers and screwdrivers, nails and screws, scotch tape, duct tape and especially, a tape measure.

3. A bottle opener and glasses. Thirst always seems to come first, particularly if you have to lug that stuff by yourself. Dehydration is a sneaky beast, so be prepared.

4. Snack, pizza and fast food coupons. You’re going to work up a hunger so think about treating yourself to a quick bite or a night out at Mickey D’s.

5. Address book or PDA. Keep those important telephone numbers handy.

6. Cell phone or regular telephone with plug – put these within easy reach. There’s always potential for an emergency.

7. Sufficient cash. Duh … but if you’re opening a new bank account you may have to wait for your first cheque to clear. Traveler’s cheques wouldn’t hurt either.

8. A copy of your real estate lease and personal ID such as a driver’s license. A speaking of banking, if you’re starting a new chequing account (or applying for utilities service) you’ll need proof of your new address too.

9. Cleaning materials. Especially paper towers – accidents do happen.

10. Light bulbs, a small lamp (perhaps a flashlight). It may be dark when you finally move in.

11. Alarm clock. You don’t want to miss your first day at school, right?

12. Box cutter. Don’t pack this puppy at all! It’s the first thing you’ll need to open your packages.

You can visit the following condo websites for more information about US and Canadian condo real estate development properties that are either under construction or during the planning and design stage.

Going behind the scenes for lenders on real estate property

Published in the API Magazine – December 2006 issue on Pages 75 – 76. Most borrowers like the reassurance of having detailed knowledge of their lending institution and its financial reputation. Taking one step back, you first need to determine your level of understanding of the business of money exchange. There’s a significant difference in the risks associated with borrowing and investing and the information you should be aware of in each case.

Mortgage Shopping
There’s a lot more involved in selecting a mortgage than merely enquiring about interest rate and product flexibilities. Past articles have covered the intricacies of these topics, but how important is it to understand your real estate lender’s business?

A real estate lender’s reputation is an important criterion you should consider when taking out a loan for a real estate investment property. If you’re using a broker, they’ll usually have an opinion on the real estate lender. This opinion will often cover such things as credit policy, processing efficiency and in some cases, effectiveness in resolving disputes.

Particularly in the case of a real estate lender, you know nothing about, a little research is needed on your part to determine how long the lender has been in business for real estate investment lending and their ability to provide a consistent product.

Ask about the interest rate offered. Is it a special rate or a standard rate? This is more relevant when you’re considering a fixed rate product. There are some real estate lenders who may have a special rate advertised at the time you’re looking for a loan on your property but this rate may change significantly afterwards. It may well be a good deal to start with but when the fixed rate period is over, it may be a different matter.

Variable rate interest for real estate properties isn’t totally reliable either. Most institutions move their variable rate in line with the Reserve Bank cash rate. However, it’s not a rule that’s set in concrete and your bank lender can certainly change the interest rate, even when there’s no official cash rate adjustment. Ask about their policy on this. Is the variable interest loan written with a specific margin to reference rate (such as a standard variable) or is it unlinked?

Service: Mild, Medium or Hot?
In many cases service is a major factor when shopping for the right loan. Matching your needs with a big institution practices can be relatively easy.

With an unknown lender, however, you simply need to be a little more inquisitive. Is the service they provide perfect? Before you make up your mind, look outside the square.

Ask yourself, will they continue to provide good service after the sale, or will it grind to a halt once you sign on the dotted line? And does the company employ enough people to answer your queries in the future? A small company previously unknown to you is not necessarily to be dismissed, particularly if it meets your loan criteria.

Investing: a different kettle of fish
Many of us invest cash in the forms of term deposits, online accounts, cash management trusts, shares or managed funds. Here, the fundamental rule of investing is king – risk-return equation.

It’s usually easy to see the trade-off between the interest rate paid and the company’s financial background, especially on term deposit and debenture products. You’ll quite often see a 3 or 4 per cent gap on interest rate paid on term deposits by major banks and debenture products from small investment companies.

When considering putting your hard-earned cash into an investment company, you need to be more astute about the institution and its financial reputation. Ask yourself about the company’s ability to pay interest promised, as well as the principal when needed by you.

The newspapers may report the current cash rate of 6.25 per cent (at the time of writing), yet your company can offer an attractive 9 or 10 per cent. You should expect a higher level of risk associated with this type of investment.

It may be that your money is invested into mezzanine funds which banks are unwilling to lend against. In the unfortunate event of the investment company going belly-up, you must realise that banks have first claim against the assets, with you, as a private investor, coming in on the secondary level.

Security versus Reputation
As we can see, different assessments are required when you’re investing your cash and borrowing some funds for your property. Most mortgage originators securitise their loans so most of their assets are transferable if the real estate lender goes out of business for whatever reason. They’ll simply sell off their loan portfolio to another lender or investor (such as an insurance company or mortgage trust) or secure their portfolio as a mortgage-backed security (MBS).

MBS is an asset-backed security whose cash flows are backed by the principal and interest payment of a set of mortgages. These payments are typically made monthly over the lifetime of the underlying loans.

When your loan is administered by a new lender, they may reconsider the products structure and may offer you a new product as a substitute for your current product. This can become a hassle for you if there are significant changes in pricing and flexibilities of the new product offered. However, the mortgage lending arena in Australia is highly regulated, with many areas of legislation ensuring the rights of the consumer are met.

As an overall, when we look at security versus reputation, we clearly see that major banks offer both. Even though you may not be sure about a lender’s security, you can’t afford not to research the lending institution’s reputation.

Santee Village Downtown Los Angeles

A new horizon is opening up in the LA real estate market at what is now know as the Santee Village Historic Loft residences and condominium apartments. A wonderfully planned and designed real estate property in the heart of downtown LA, the Santee Village lofts and homes are now accepting priority registrations.

There are a number of things home buyers look for when selecting a perfect home for their family and for themselves. In many ways, especially in the city of Los Angeles, California, the location and urban amenities on site and off site are of utmost importance. Safety, security and affordability also rank very highly from the perspective of prospective home buyers. This is whey the Santee Village historic lofts and residence apartments in downtown Los Angeles have a key advantage over other LA pre-construction loft condo property developments. Not only is the Santee Village Textile Building Lofts and The Santee condominiums conveniently located in one of the most exciting and revived LA districts of all time, but they are also functional and affordable for all. New construction, fine finishes and low maintenance living in this urban city are all available at the Santee Village LA loft residences at the Textile Building as well as the Santee Condo tower apartment residences. Currently, it is known that there will be two buildings that will be ready next year at the Santee Village in downtown Los Angeles which include the Textile Building as well as the Santee Condominium residences in this historic avenue of boutique shops, retail, residential communities and entertainment.

More about the Textile Building and Santee Historic Lofts in the Santee Village

The initial pricing guide has these luxurious historic loft style residences set for the three hundred thousand US dollar range. An LA real estate property development by MJW Investments in collaboration with the Phoenix Realty Group, the sales and marketing web site for the Santee Village Textile Building and Santee residences are produced by Macy + Associates. True loft living at the Los Angeles Santee Loft residences and Textile buildings are available for purchase soon at an average size of eight hundred and seventy five spacious square feet with modern amenities, fine finishes and the most luxurious appointments interior. An urban village community with landscaped promenade, market and retail space, sidewalk cafes and restaurants and more will line up along the streets around your private loft home at the Santee Village Los Angeles real estate property development and Textile Building lofts. The neighbourhood that surrounds you at the Santee Village historic lofts and residences at the Textile building in Santee Alley, the Flower Mart, Fashion District and Staples Center. With rooftop pool, basketball, barbeque and golf areas for recreational fun, the Santee Village LA historic loft residence community is a great place to enjoy life and have fun with family and friends. The Textile Building at Santee Village lofts will be of great design and construction throughout both the exterior building and interior finishes. A new way of living life downtown Los Angeles real estate properties are now available at the Santee Village Textile Building and Santee historic loft residences, so why wait to register?

Final comments about the LA Santee Village lofts

For more information and real estate property construction updates to the Textile Building and Santee loft style residence properties, please join the priority list today online at their marketing and sales website santeevillage.com/contact/InterestList.aspx. The interest list for the Santee Village historic lofts and apartments are filling up quickly. In addition, you can contact a sales representative for the Textile Building and Los Angeles Santee Lofts real estate properties at 213-624-1640 or sales@santeevillage.com. The physical location of the Santee LA Village lofts and residences is located at 716 South Los Angeles Street in Suite D in California 90014. You can view a Google map with directions online. In addition, the sales and marketing team for the Santee Village in downtown LA California suggests that you pre-qualify for your mortgage first before visiting the presentation center for purchase. There is a downloadable PDF application for pre-qualification online at santeevillage.com/contact/prequalify.htm through the preferred lender for Santee Village LA which is Countrywide Home Loans.

Arboretum View Seattle Homes

An already completed Seattle real estate development property at Arboretum View is now available for home purchasers and renters. If you would like more information about the Arboretum View Homes in Seattle WA, please read below for more details and updates on available unit residences.

As Seattle braces for the new condominium boom that has seen an explosion in the real estate market in the United States, the Arboretum View Homes and residence condominiums are a different sort of real estate development property in Seattle WA that is fit for families, retired couples and people looking for something other than a starter home. On the market right now in Seattle WA is the Arboretum View Homes and residential community that will feature one and two bedroom homes in an ideal location in the Emerald City along the Pacific Northwest. Ideally situated in the Madison district of Seattle Washington, the Arboretum View residence homes and Seattle real estate properties will have some of the best construction and design work that you will see in homes in the market today. Already completed, these one and two bed room home residences at Arboretum View Seattle apartments properties are priced between an affordable mid two hundred thousand to the mid four hundred thousand us dollar range. The physical address of the Seattle Arboretum View Homes is at 2512 East Madison Street in Seattle WA 98112. You can visit the Williams Marketing Group web site for more detailed directions and a map on how to reach the Arboretum View Seattle homes development community.

More about the Seattle WA Arboretum View condominium style homes

With immediate occupancy available for all homes and residences at this Seattle real estate property, home buyers and renters will be able to take note of a great long and short term investment in real estate in Washington Sate. The sales office for the Arboretum View Seattle home residences will be open between the hours of eleven to five on Saturday through to Thursday every week. In addition, the community development sales manager for the Seattle Arboretum View residence condominium apartment homes is Aaron and he can be reached at 206.325.5605 and their sales office fax number is 206.325.5604. For a great virtual tour of the Arboretum View condominium style family homes, please visit the following URL web site circlepix.com/tour.htm?id=452260&refurl=williamsmarketing.com where you can view the property details, slideshow image gallery, virtual images, Seattle real estate listing details, printable brochures and to download the VR tour. To contact a sales agent that can help you with your purchase decision for the Seattle Arboretum View homes and residences, please visit the following website to submit your enquiry: williamsmarketing.com/comm_arboretumview/contactagent.html.

The Home Types and Features at Arboretum Seattle Properties

For more details about the interior and exterior features and finishes provided by this Seattle WA real estate property by Williams Marketing Group, please visit their web page at williamsmarketing.com/comm_arboretumview/comm_arboretumview.html for a listing of features. Firstly, the location within the Madison area district community of Seattle makes the Arboretum View homes ideally situated close to the Lake Washington area, Arboretum Park and Trader Joes as well as with very close access to major freeways such as SR 520 as well as I-5. The interior features of the homes at Arboretum View Seattle WA will include tiled or hardwood kitchen flooring depending on the condominium residence unit you choose as well as washer and dryers in every unit. The Seattle Arboretum View Homes will also feature an elevator, secure access parking, kitchen cabinetry that is high-end and full height, granite tiled counters, painting and closet organizers for the oversized storage area. For more information about the current condominium boom and condo residence market in Seattle Washington, Williams Marketing has clipped a newspaper article on this latest craze in the real estate market here: williamsmarketing.com/media_news/CondoBoomJustStartingExpertsSay.pdf.

Floorplans at the Seattle Arboretum View Homes and Properties

There are numerous floor plan layouts available at this property including Floorplan 101 condominiums at Arboretum View Seattle which a one bedroom and one bathroom condo unit with a pantry, kitchen, large deck and entry way with storage area and laundry room. The Seattle Arboretum View Condominium Homes will also feature floor plans 602 is a luxurious condo home that includes two beds, two baths, a kitchen pantry, living room, large wrap around deck in addition to a smaller deck off the master bedroom. There are actually seventeen different floor plan layouts offered at the Seattle Arboretum View condominium homes and you can download PDFs of all these configurations online at the following web site address: williamsmarketing.com/comm_arboretumview/floorplans.html. Get on it today as the Arboretum View condo homes and residences are selling quickly in this hot Seattle real estate market in Washington State.

If you are interested in reading more about other Seattle real estate and pre-construction condos in Washington State, please click here.

Condominiums Carleton of Mercer Island

This Seattle real estate development on Mercer Island is one of the first and most exciting properties that offer condominium residences and condo homes. A residential community like no other on Mercer Island, the Carleton Condominium residences features one and two bedroom homes.

You can read more about other Seattle pre-construction condo projects and tower residence apartments here.

As of December 2006, the Carleton Condo homes of Mercer Island, Seattle are ninety percent sold! As one of the hottest and most exciting new real estate developments in all of Washington State, the Mercer Island Carleton Condominiums are located in the center of the business district on this beautiful island. Featuring both 1 and 2 bed room condo residence apartment homes, the Carleton of Mercer Island will only offer sixty condo units to lucky home buyers, of which only ten percent are still available to the general public for purchase. In addition, right now, the real estate developers of the Carleton Condominiums of Mercer Island Seattle will provide special real estate purchase incentives for those who purchase soon. One of these great incentives at the Mercer Island Carleton residence real estate properties in Seattle WA include the development team paying the first four month of your mortgage principle and interest. You will need to speak with a sales agent at the Carleton of Mercer Island Seattle condominiums property development for more details about this once in a lifetime opportunity.

About the Carleton Condos of Mercer Island in Seattle WA

The physical location of the Mercer Island Carleton real estate properties is at 2760 76th Avenue SE on the island in WA, just a boat ride away from central Seattle downtown. Right now, the sales and presentation center for the Mercer Island condominiums at Carleton home residences are open Monday through Wednesday between the hours of twelve noon and five pm in addition to weekends (both Saturday and Sunday) between eleven in the morning until five pm at night. The sales manager for the residential community at Carleton Seattle condominiums on Mercer WA is Anita and you may contact her by telephone at 206.236.5911 for more details about the buyer bonus in addition to available units. At 90% sold already, you will need to act quickly to purchase a home here. The real estate developer and owner of the Carleton Condominiums of Mercer Island is Robert Hardy. For more information about the condominium real estate market in Seattle and Mercer Island, you can download a PDF from the Williams Marketing website with a recent article from a local newspaper: williamsmarketing.com/media_news/CondoBoomJustStartingExpertsSay.pdf. To contact a Williams sales representative for the Mercer Island Carleton Seattle real estate properties, please use this inquiry form online williamsmarketing.com/comm_carltonofmercerisland/contactagent.html. For Mapquest directions and a map to this real estate development on Mercer, please visit the following web address: mapquest.com/maps/map.adp?country=US&addtohistory=&formtype=address&searchtype=address&cat=&address=2760%2076th%20Ave%20Se&city=Mercer%20Island&state=WA&zipcode=98040%2d2760.

The Interior Features and Amenities at Mercer Island’s newest community

At Carleton Condominiums and residence homes, residents can enjoy interior features in their one and two bedroom homes such as large decks and patios with views, wood burning fire places in addition to updated interior designs and modern amenities such as plank siding and large storage units. All residents at the Mercer Island Carleton condo residences will also have secure parking in addition to being located in one of the most convenient and beautiful islands in the Pacific Northwest. Mercer Island has quickly grown into a great urban community with active lifestyles and the Carleton condominiums Seattle real estate development is a perfect example of how urban conveniences meets country living. Just minutes away from downtown Bellevue and Seattle along I-90, the Carleton of Mercer Island condominium homes and residence apartments are close to everything you will do and see while living here.

Floor Plans at the Mercer Island condo community

There are four advertised condominium layouts at Carleton of Mercer Island development. The first is a 2 bed and 2 bath unit covering condominium number 209, 309, 310, 506, 507, 603, 604, 702 and 703 and consists of a large kitchen, separate living and dining rooms in addition to a laundry room and an outdoor deck. Condominiun Unit 308 at the Mercer Island Carleton condo homes is another 2 and 2 with a similar layout as above, but with an additional entry hallway space with storage closet. For Units 103, 203, 303, 511, 512, 608, 609, 706 and 707 at the Carleton of Mercer Island real estate development, there is also a large deck in between each bedroom in addition to a kitchen, dining and living room that are all separate. Units 505 and 602 at the Carleton Mercer Island condominiums have an entry that sweeps right into the living space and balcony and the bedrooms are located on the far side of the unit. Lastly, condo units 510 and 607 at the Seattle Mercer Island Carleton condos is also a 2 bdr and 2 bth unit with expansive dining and living spaces and a deck.

Squamish Real Estate for 2007

Are you in the market to purchase some recreational real estate in Squamish, or a real estate investment opportunity in time for the Whistler-Vancouver 2010 Olympic Games? If so, check out the following Squamish condominium real estate developments either in pre-construction or under development already.

More information about Squamish real estate and West Vancouver properties are available online at this link.

Amble Path
A better life in the heart of nature and the wilderness is what Squamish Amble Path real estate properties will provide you and your family. Amblepath is about first rate living in SQuamish BC which features eight different family home styles and designs for you as a home buyer can choose from.

Arbour Woods
Already sold out, the Arbour Woods Squamish real estate development featured thirty six unit duplex apartments with three bedroom homes around sixteen hundred square feet. Real stone exterior in addition to stainless steel appliances and open concept floor plans were the distinct features of Squamish Arbour Woods real estate properties.

Bracken Arms Estates
Life in the great outdoors with all the comforts of home is what Bracken Arms Estates in Squamish can provide you. The Bracken Arms Estates are located in Squamish British Columbia and offer twenty eight home sites that start from $249,900 and public sales only started in November 25th, 2006.

Edgewater
The Squamish Edgewater real estate properties featured home sites and townhome plans for real estate investors and home buyers in the Squamish to Whistler corridor. Featuring a great location with an amazing natural setting amongst old growth forests, water and mountains, the Edgewater Squamish properties sold out very quickly.

Ravens Plateau
The Squamish Ravens Plateau at Garibaldi provides craftsman homes offering style, comfort, security and elegance with full size lots and only five percent down required. Squamish’s premier residential community, there are still some real estate properties for sale at University Height’s Ravens Plateau at Garibaldi, so visit their presentation centre today for more information.

Redpoint Living
One of the newest real estate developments and master planned communities in Squamish, BC is the Redpoint Living properties located near rock climbing, central amenities, biking, hiking, beach walking and kite surfing. With townhomes and condominium real estate residences on sale right now, visit the Redpoint Squamish presentation centre today. A Kingswood Properties Ltd. With Sotheby’s International Realty, SQuamish Redpoint condominiums and townhomes are hot.

River’s Walk
SQuamish’s newest real estate community consists of fifty eight luxury townhomes at River’s Walk that is centrally located with glacier and forest views. Over 2,000 square foot homes and real estate properties with garages and basements are available at the River’s Walk Squamish properties with even your personal workspace or added living space.

Rockcliff at Eaglewind
A rare luxurious apartment homes real estate development in the heart of Squamish is coming to the Rockcliff at Eaglewind, the next epic landmark in Squamish near Whistler, BC. With one and two bedroom homes starting from $229,900, there will be eighty contemporary apartment homes available at the Rockcliff at Eaglewind. For other two and three bedroom townhomes and homes opportunities in Squamish, please visit the Talon at Eaglewind.

Skye
The first release of homes in this master planned innovative community of townhomes and classic apartments was sold out very quickly. Called the Skye Squamish, these steel and concrete apartments are some of the finest designed and built condo apartments in this town. Check out phase 2 for other real estate opportunities.

Soleil
Soleil is the second phase in this Squamish master-planned community of classic town homes and condominium apartment units that will feature one hundred and sixty two apartments and only sixty four townhome residences. A striking new collection of West Coast architecture and design just thirty minutes fro Whistler and forty five minutes from downtown Vancouver, now is the time to purchase a real estate property at Soleil Squamish. Call 604.904.2240 for details and the presentation centre for Soleil Squamish is on 121 Lonsdale Avenue in North Vancouver.

Seascapes
Designed for the most discerning tastes, every one of these spacious West Vancouver townhomes enjoys a spectacular view of Howe Sound. Inside, natural materials – granite, ledgestone, hardwood and more – reflect the majestic West Coast setting. Seascapes starting from $769,900 for 2,350 square foot townhomes near Squamish.

Talon at Eaglewind
The first phase development of luxury apartment condo homes in Squamish have been completed and have made way for Phase 2 called Rockcliff (please look above for details). Featuring great finishes and features as well as community amenities, Squamish Talon at Eaglewind will be ready for move-in this year.

Thunderbird Creek
A once in a lifetime masterplanned community in Squamish featuring single family homes and in the heart of nature, the Thunderbird Creek in the Highlands Squamish real estate properties are on sale and have been finalists for two 2006 Georgie Awards including best single family detached home and for Technical Innovation. The Thunderbird Creek Squamish in the Highlands showhome and presentation centre is still open at 1019 Condor Place.

University Heights
An ideally located community in the University Highlands comes the highest standard and green technology Squamish real estate development project by the name of University Heights. The presentation centre is now open and features single detached family houses with driveways and rear lanes in addition to townhomes with private street access.

You can also find out more about Whistler real estate and property listings online by clicking on this link.

Perth Real Estate Prices Close in on Sydney and Small Real Estate Developers in Australia

Property prices in Perth are within reach of eclipsing Sydney as the country’s most expensive, median price data for the September quarter of 2006 shows. Originally published in the Australian Property Investor December 2006 edition on Page 18.

Perth House Prices climbed 39 per cent to $491,587 over the year to September, while Sydney house prices were flat at $520,253 according to composition adjusted medians released by Australian Property Monitors (APM). Unit prices in Perth were up 44 per cent at $341,730, whereas Sydney unit prices dropped 4 per cent to $351,922.

Michael McNamara from APM said the margin between Sydney and Perth house prices was now only 5.5 per cent, just three years ago, Perth prices were half those in Sydney.

“It is interesting to observe that if Perth continues to outperform eastern capitals by the same proportions, then it will soon surpass Sydney for the title of most expensive median house price in the country,” McNamara said. However, he said 39 per cent annual growth was “clearly unsustainable” and tipped that the Perth market would peak in the December quarter this year.

Darwin’s explosive growth also continued in the year to September, with its median house price surpassing Melbourne and Brisbane to make it the fourth most expensive city for houses. In the September quarter itself, growth in Darwin was slowing but still relatively strong. House prices were up 5 per cent over the three months and unit prices climbed 4 per cent.

McNamara tipped that Darwin, like Perth, should peak in the December quarter. “For these markets, much depends on commodity prices as property prices correlate strongly with the commodities index,” he said.

Price growth along the eastern seaboard was virtually non-existent in the September quarter for both houses and units, a fact McNamara puts down to interest rates. “Early this calendar year, property markets in Sydney, Melbourne and Brisbane showed positive signs, leading us to believe that moderate quarterly growth in median prices would be expected throughout 2006,” he said. However, interest rates rises this year have seen buyers in the markets retreat to a more cautious position.

“Eastern seaboard capital cities are now experiencing a stabilisation phase in their property cycles and we predict that trend will continue for the next 12 to 18 months.”

On a different note, Adelaide rentals are in hot demand. Adelaide’s Hills district has put up the ‘no vacancy’ sign, recording a nil vacancy rate in September. The vacancy rate across the city as a whole remained at 1.6 per cent, Real Estate Institute of South Australia figures showed. That is under the national benchmark of 2 per cent. The Hills region, from Crafers to Nairne, recorded a zero vacancy rate, while the western suburbs had the highest proportion of rentals available at 2 per cent.

Small real estate developers and home developments

Tips and inside knowledge from the Dec ’06 issue of the Australian Property Investor magazine.

Inside Knowledge about small real estate developers
Small developers should always allow themselves a little bit of breathing space with their financing, Tom Riley says, because prices tend to change over the course of a job. He says the contract price for his real estate project grew by about 5 per cent over the 12 months it took to complete. However, thanks to the years he’s spent working in the building industry the price rise didn’t come as a nasty surprise to Tom.

“The real estate contract grew just under $20,000 over the 12 months,” he says. “I was anticipating that there’d be the rise and it wasn’t outside the parameters of what I thought it might be.” Other small developers should be aware that the home prices they’re quoted might change as well, he says. “I hear people say, “we’ve got a fixed price contract’ and they probably have, but there’s always a rise and fall clause in there – and it’s usually a rise.”

As a result it’s not the best idea to spend the maximum amount you can access right from the outset. “You need to be in a position where you’ve got a little bit of extra money to play with.” Tom says he doesn’t blame his real estate builder for the rise, as material costs climbed over the 12 month period and so did the charges for real estate sub-contractors.

Tom’s small real estate development tips
1. Not everyone wants to live on the edge. Have a workable back-up plan in case things go pear-shaped.
2. Running your real estate proposal past the council before you buy can save a lot of anguish later on.
3. Put everything in writing. Even things you think are obvious can be misinterpreted by real estate builders, and you may have to make costly compromises later on.
4. Don’t be afraid to ask questions. Some real estate developers think everyone else is stupid anyway, so you might as well ask if you don’t know.
5. Don’t over capitalise for the area you’re building in. There’s no future in building $500,000 townhouses in a suburb where the media price is under $200,000.
6. Do the sums, then do them again, then halve the potential profit and halve it again. If you can live with the result, do it. If you’re young enough, do it anyways – time will fix most mistakes. Real estate property investment can be forgiving if you can wait long enough.

Bricks and Mortar Real Estate Investment Tips

Welcome to another instalment of Bricks & Mortar, where our panel of experts answers real estate property investment questions from API readers. Published in the December Australian Property Investor real estate magazine.

When to sell real estate?

Question: My husband and I are both working at the moment, however, I’m going to be starting 12 months’ maternity leave in January. We think we might need to sell one of our investment real estate properties (we have six) to help ease the financial load during this time. My question is, from a CGT perspective, would we be better off selling the property while we’re both earning an income or should we do it when I’m at home with the baby? The property is in both our names, 50/50.

Answer: Congratulations on your pregnancy. I hope everything goes smoothly for you. From a CGT perspective, it’s best to wait and sign the contracts in a financial year where you have a lower income so that any gains made on the sale of a property are added to a lower base income and not a higher base income. By the way, and for what it’s worth, another option instead of selling an investment real estate property is to use a line of credit (LOC) to help with the cash flow. This LOC will mean that your debt will increase over this time but twhere the funds are used to pay for property-related expenses and mortgage repayments, the interest should still be tax deductible.

This real estate investment strategy enables people to keep their properties at times like this instead of triggering the enormous costs of selling and seeing their portfolio decrease, and allos them to keep all future gains in real estate value on the properties in question.

Dale Gatherum-Goss

Can I claim the interest on a real estate investment property

Question: I have an investment property in real estate with about $68,000 left on the loan. Long story short, the interest I currently incur isn’t deductible against income against the property. If I were to “refinance” this real estate property loan as part of opening a new loan which I require for the explicit purposes of buying another investment property, will the interest earned on the sum total of the loan (i.e. the $68,000 plus the amount of the new property) now be deductible against income from the new and/or both properties?

Answer: No unfortunately the Tax Office follows the money in cases like this to see the purpose of the new home loan and how the funds were used. So, any new house loan would be apportioned between tax-deductible debt and non-tax-deductible debt I’m afraid.

Dale Gatherum-Goss

Is it too late to invest in real estate?

Question: I am a 53 year old nurse who works full-time and I’m concerned my superannuation won’t provide me with enough money to enjoy my retirement years. I currently earn $55,000 per annum and have almost paid off my home which is worth about $300,000. My question is, is it too late for me to invest in real estate or property to help secure my financial future? If it isn’t too late, what should my real estate strategy be going forward?

Answer: No, it’s not too late. Yours is a common scenario where an individual realises that relying on superannuation alone isn’t going to deliver the retirement lifestyle they were hoping for. Provided you are five to ten years away from retirement, you can still capitalise on your income and home equity in your existing real estate property to build wealth.

To maximise that wealth creation through real estate property investment at this point in your life will require a very unemotional and businesslike approach in order to maximise your capital gains. Your selection of the right real estate property asset is crucial and you should be concentrating on only one area – the high-growth inner urban areas 2 to 12 km from a major CBD – where scarcity value, high demand and low supply will underpin your real estate investment. By focusing your property strategy on capital growth you will build and control home equity. And it’s controlling equity that’s the key to attaining financial independence.

Don’t be daunted by the higher prices in these areas. One very well chosen, more modest real estate asset – such as an apartment – can outperform the wider marketplace and inflation, not to mention larger, lower growth properties in middle to outer suburbs. Seek independent financial advice on the best loan package for your circumstances.

Next, seek truly independent real estate property investment advice to ensure you do get the maximum capital gain and good, long-term rental income. These two advisory areas should be kept separate. Don’t waste any time before seeking the appropriate advice. Steer totally clear of any “get rich quick” property real estate investment schemes. Many people seeking to rapidly top up inadequate superannuation have been tempted by these to their financial detriment.

The safest way to invest in this real estate asset class ist o take an unemotional, longer-term very well advised view.

Monique Wakelin

Real Estate Valuation discrepancy

Question: Why is there such a big difference between a real estate agent’s appraisal and a valuer’s valuation of a property or home, particularly when it’s for the bank? I had an agent give me an assessment of the value of my home before getting my loan but the bank valuer said it was worth a lot less.

Answer: It probably comes down to a question of the instructions and motivations of the valuer and the real estate agent. The valuer is instructed by the lenders to provide a realistic assessment of the real estate market value of the property as they find it on the day of inspection. They can’t take into account future improvements or presentation issues you may attend to if you were to place it on the real estate market. The lenders simply want to know a “safe” amount they should use as security, so in the unlikely event they have to take over the property, they’re covered.

The real estate agent’s appraisal isn’t bound by these instructions. Often the reason for providing a free appraisal is as a marketing tool to try to gain your favour and ultimately a listing. Therefore, it’s in their best interests to be “bullish” about their opinion of the market value so that you’re more positive and inclined to list it with them. Remember that real estate valuers are totally independent and have no vested interest in your real estate property or home.

Phil Grahame