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.”

Why some renovations make money and some don’t

Why some renovation projects make money and some don’t

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

Today were going to talk about why some renovation projects make money and some don’t.

There’s a variety of factors which I believe causes a renovation project to add value.

Possibly the most important factor, is what you pay for the property at the start.

If you spend well above what the property is worth, then it will be harder in my opinion to make money from the renovation within a short timeframe.

You’ll be trying to re-trace your steps.

Only to find it’s really hard to skimp on the quality as it will usually show in the end.

The second factor is time.

The longer a property is usually held, the easier it is too make money from a renovation due to time and likely market movements.

Think about it, if you had bought a property in 1995 for $500,000 and now it’s worth $1.5m, a renovation project is the cherry on top.

Paying too much for the materials and labour can damage your profit potential.

It’s very easy to get caught up emotionally in a renovation.

Remember to stay objective and realise if you are just trying to make some money, what you spend counts.

It’s a different story if you plan to occupy the property.

The final factor I believe has a bearing on how profitable a renovation is, is the uniqueness of the renovation itself.

If the property is like every other one, then it’s not that different and catching.

But when the renovation is exciting and makes the space enjoyable to live in.

Then that can truly add value.

Pisa in Italy is very famous for one thing a leaning tower.

How can you make your renovation unique?”

Rentvesting and first home buyers

Rentvesting and first home buyers

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

Today were going to talk about why ‘rentvesting’ can help first home buyers.

For those who have never heard of the term rentvesting.

Don’t be alarmed.

It simply means you continue to rent, while you invest in property.

You may think how is that even possible?

How can you afford to pay rent and a mortgage at the same time?

It is actually possible.

This strategy is ideally suited for those renting in prime locations, but can’t afford to buy in that same location.

So instead of waiting 5 or 10 years to buy.

You start to build a portfolio in the meantime, whilst you continue to rent where you like.

I’ll give some brief numbers for simple understanding.

Let’s say you pay $400 per week in rent.

Assuming no vacancy, an investment property costing $500,000 will likely cost you about $100-$150 per week to hold.

Therefore you would need a minimum of $500-$550 per week to rent and invest.

This doesn’t take into account living expenses such as food, travel etc…

On top of that you would need the deposit (usually 10-20% of the purchase price) and stamp duty to purchase the investment.

One of the key benefits of this idea is you buy in locations which will likely outperform where you live.

At the same time you diversify your future investments, taking advantage of differing growth cycles.

Then when your ready to purchase your own place to live in.

You can either sell some or all of the investments.

Or hold onto them and borrow against their value.

Either way, it maybe a great idea for those wanting to keep your lifestyle, whilst getting onto the property ladder for the first time.”