The first thing first home buyers should do when buying property

The first thing first home buyers should do when buying property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about the first thing first home buyers should do.

You want to buy your first property.

It’s an exciting time.

You don’t know where to start!

You see all these cool properties you want to buy.

Even possibly inspecting for weeks or months.

Eventually there’s one you love and you must buy it.

Suddenly.

You realise you have no finance!

You scramble to your mortgage broker or bank.

Only to find it could possibly take up to a few weeks to find out if you can get the funds you need.

You log back onto realestate or domain and see that annoying under contract sign in grey.

A very good lesson to learn now.

Always get your finance before you start.

It’s like going grocery shopping.

You walk through the aisles to find your favourite candy.

Only to realise once your at the counter, you have no money.

The first tip for first home buyers is to sort your finance out at the start of your search.

It’s pretty annoying missing out on quality confectionary.”

Savings in the bank versus buying a property

Savings in the bank versus buying a property

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about savings in the bank versus buying a property.

Who doesn’t like saving money.

Having some for a rainy day.

In the bank you typically earn interest.

I’ve found recently savings rates banks are offering are around 2%.

In property you typically earn rental income with returns around 3-5%, depending on the area.

The benefit of money in the bank is liquidity.

You can use the money whenever you want.

Though, the negative is obviously a much lower return.

The benefit with property is the leverage.

As most buyers borrow money.

Let’s say you put down 10% of the whole price.

For example.

A $500,000 property would need $50,000 as a deposit.

If you put this same money in the bank at 2% per year you will earn $1,000 per year.

This is what makes property really interesting.

As your asset is much larger as it’s using borrowing, the return at let’s say 3% would be $15,000.

This is purely because your asset base is 10 times what it would be in the bank.

Prices can go up and down in the property which is the other part of the equation.

When prices go up that’s a positive, and vice versa.

The other key difference with property, is it’s a physical asset.

You can change the way it looks and enhance it’s layout, decor and styling.

In turn adding value and potentially creating more equity.

It’s not everyday you can render your bank account.”

Why neighbouring properties can have such different values

Why neighbouring properties can have such different values

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about why neighbouring properties can have such different values.

Let’s assume you and your neighbour have the same land size.

We’re keeping at least one variable constant.

How about we change the slope or gradient?

That will have an affect on the value.

Think about building on sloping land, the cost can dramatically increase.

Also, would you rather have a level piece of land.

Or one where the soccer ball rolls down the yard?

The slope can really limit the number of buyers who want a specific property.

The house size can be different.

One might be single storey, the other a double storey.

More house size, generally means more expense as it will cost more to build that bigger house.

All those extra materials, labour and time.

How about the internal finishes?

A house that has been stylishly renovated from scratch with expensive finishes and detail.

Versus a house that hasn’t had a touch of paint in 40 years.

Which ones value will generally be greater?

A great layout can also create a difference.

Today, the bulk of the population generally wants open plan living.

A closed layout can once again reduce the number of buyers who want the property.

Extra luxuries like swimming pools, tennis courts, spas, gyms, saunas can also attract more buyers.

Who doesn’t want a nice swimming pool?

Even though properties can be next to each other.

This doesn’t always mean there values will be similar.”

How to know if the property is right for you

How to know if the property is right for you

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.

Today we’re going to talk about, how to know if the property is right for you.

The first is whether the property created an emotional connection.

Do you get excited when you think about the property.

Can you see yourself living there?

Is it somewhere you can entertain family and or friends?

Is the property quiet and peaceful or on a busy road?

Does the property have views of the bush or sea?

Has it been nicely designed and styled?

Is it generally a nice area to live in?

The second, is whether the property is practical.

Does it reduce or increase your daily travel time?

Is it easy to park in?

If you have a family is it near your families amenities such as schools, sport etc…?

Is shopping convenient?

Is the neighbourhood safe?

Would the area make for a good investment?

The third is the price.

Is the property more expensive or less expensive than similar properties?

Can you use all of the land or only some of the land?

Does the property need work or is it move in ready?

Is there competition for the property?

Is it a private treaty or auction campaign?

Is the property limited to a specific type of buyer?

Can the property be rented out if necessary?

Hopefully once you can answer these 3 key points.

You’ll know if you have a winning property or another one not quit right.”

How changes in value affect buyers, sellers, homeowners and investors

How changes in value affect buyers, sellers, homeowners and investors

Transcript
“Hello and welcome back to daily buying tips, I’m Dean Berman from Berman Buys.


Today we’re going to talk about how changes in value affect buyers, sellers, homeowners and investors.

We’ll on the surface this may seem relatively straight forward.

For buyers decreasing values are good as property becomes more affordable.

Increasing values are good for sellers, homeowners and investors as prices rise.

I think there’s more to it than that.

If you buy a property for a lower price than it was before.

Does this mean you had to sell for a lower price as well?

Not if your a first home buyer!

But besides first home buyers, doesn’t it just become relative.

i.e. if you sell in a rising market, you will most likely buy in a rising market i.e. it counterbalances itself.

i.e. make money on the sale, but lose money on the buy.

Where are homeowners and investors in all this?

If they don’t plan on selling anytime soon, then it doesn’t have a massive bearing.

Except if they are planning on purchasing more property in the market or using the collateral in the there houses for something.

Then it has a bearing as they will have less equity or collateral in a falling market, but they will likely be buying something that has also fallen.

It’s relative!

But if they aren’t planning on doing anything, then it basically becomes paper differences.

I think a question we always ask is?

Is it a good time to buy or sell or hold.

Maybe instead.

What are we planning to do?

i.e. if your holding onto the property for 10+ years, is very different to someone looking to renovate for profit in 6 months.

Maybe we need to work out our goals before we look at the market.”