SELLING POINTERS

If you are planning to sell a property, here are some useful tips.

Be sure to promote your property. Make sure you invest sufficient funds to allow your agent to do their job properly. Keeping your property a secret will hinder your chances of success.

Plan to use your funds to promote your property. Do not rely on agent-paid advertising. Skimping on advertising monies may come back to haunt you in the form of a lower selling price.

Let your agent tell you the best mix of newspaper, proper signage, internet, window cards, open inspections etc. A co-ordinated mix of strategies works best and your agent has all the experience of their other properties.

Maintain flexibility. Do not stick to your guns unnecessarily. If your marketing strategy is not working, then chance tack in one or more areas.

It is extra important to realise that an early offer in your sales campaign that's reasonable will often prove to be your best offer. Plus if you are buying then it will enable you to move more quickly to buy back into the same market, so you can also get a similar fair price.

You must also stay in tune with the market. While you cannot control it, you can at least follow it. Properties that are priced right always sell no matter what the market conditions happen to be.

If you have a question about real estate, or would like assistance in locating a property feel free to phone me.

Noel Thompson, Principal Professionals Logan Lifestyles at either:

• Waterford 3299 7733
• Browns Plains 3800 4000
• Springwood 3808 5544

http://www.llr.com.au

THERE ARE FOUR REAL ESTATE PROFIT DRIVERS

There are 4 ways to make money out of property investment:

• PASSIVE APPRECIATION: This occurs when you purchase a well-positioned property with a good location and it increases in value along with the general property market over time. History has shown that good properties in Australia double in value every 7-10 years. Hence property is best viewed as a long-term investment.

• ACTIVE APPRECIATION: This happens when you take an action to increase the property's value. Maybe you add a granny flat or redevelop it in some way.

• RENTAL RETURN: This is the most common source of return on investment, since it provides cash flow. But it is important not to place too much emphasis on rentals, remembering your overall investment return.

• TAX BENEFITS: Property is probably the best investment for tax benefits due to negative gearing and depreciation allowances.

It is important to keep all four of the income producing qualities in mind when investing in property. One reason is that well located residential properties have inherently high growth rates. This means that the rental returns are always going to be low yielding on this type of property.

Real estate investment should be viewed as a long term investment for this very reason, but, at the same time, it is one of the most secure.

If you have a real estate need or question, feel free to call me:

Noel Thompson, Principal Professionals Logan Lifestyles at either:

• Waterford 3299 7733
• Browns Plains 3800 4000
• Springwood 3808 5544

http://www.llr.com.au

THE FEDERAL FIRST HOME OWNER GRANT

All first home buyers should keep in mind the Federal Government's $14,000 grant, it will substantially defray legal costs or, alternatively, can help compose the deposit.

To qualify you must be an Australian citizen or permanent resident who is buying or building your first home. If you have a spouse or defacto, they must also be a first home buyer as well or you will not qualify.

The other main requirement is that it be your principal place of residence and at least one of the applicants must occupy the residence for the first 12 months.

If you apply and are accepted, the grant will be electronically transferred directly to the nominated bank, credit union or building society when:

1. The buyer becomes entitled to possession of the home under a contract to purchase (usually at settlement)
2. If the first home buyer is building their home and the building is ready for occupation as a place of residency.

In the case of the second option, most lenders are authorised by the State Government to administer the scheme on their behalf and can organise earlier disbursements.

Some lenders will accept the grant as part or even all of the deposit, but many will want to see an additional 5% or genuine savings as a deposit.

In any event, the Federal assistance is most welcome and every State has some additional assistance as well.

If you have any questions about real estate or would like assistance in locationg a property feel free to phone me:

Noel Thompson, Principal Professionals Logan Lifestyles at either:

• Waterford 3299 7733
• Browns Plains 3800 4000
• Springwood 3808 5544

http://www.llr.com.au

Should your First Purchase be an Investment Property?

If you are wondering whether your first property venture should be an investment property or a home, I suggest you start with your own home.

To get started, you may have to buy into a less expensive suburb or area, but at least you can get a hold on the property ladder. The government will assist you with the Federal First Home owners grant and often enough a State Grant as well.

If your home need a bit of work done, that is fine because you can bring up the value. The same if you are buying into an up and coming area that is a bit less expensive.

After a year or two you will find your property will most likely have grown in value. Plus you will have been making steady payments which will lower the amount owed. So your equity in the home can be a springboard for funding your first investment property. (Equity is the amount of home you own outright less the mortgage.)

When you get around to purchasing your first investment property it will be easier than paying off your home loan, because, if you set up the financing and ownership correctly both the tenant and the tax man will assist you in making your mortgage payments. The tenant's contribution will be their rent and the tax man will help through depreciation tax benefits.

If you have a question about real estate, or would like assistance in locating a property, feel free to phone me, Noel Thompson Principal Professionals Logan Lifestyles at either Waterford 3900 7733 or Browns Plains 3800 4000 or Springwood 3808 5544

http://www.llr.com.au