DON’T BE A LEMMING
Don’t be a lemming and do your homework before buying a property
When a market is as hot as it is right now, taking some steps to prepare yourself is vital in ensuring you make the right move. There is also an element of self-protection in being prepared by making sure the property is right for you, and you are not jumping because every other lemming is jumping too. While artificial, the market feeds on the psychology of the masses, which behave very much like a flock of Lorikeets bickering and chattering in the trees. Then it’s time to leave, and one of the ubiquitous parrots darts off, then another and another until you have this swirling mass of birds, following something or someone not knowing who or why – but just following. Ask yourself why you want to buy right now? I’d urge you to consider these questions before proceeding:
• is it the fear of missing out (FOMO)?
• is it a primal need for a family?
• is it financially the right time for you?
If the need to proceed remains, the next set of questions addresses your real estate knowledge. For many Australians, real estate will be their most significant acquisition. So, it is essential to take time to learn and understand about the asset you are about to acquire.
What is it you are looking for in a property?
1. Is it a home for your money, as the return you are getting
from the bank isn’t sufficient?
• Is it an investment for capital growth?
• Are you looking to get out of the rent cycle?
2. What can you learn from your advisors?
• Ask your accountant what the best structure for acquiring a property for you is?
• Is it a company, trust, superannuation or should the property be acquired in your name?
• What are your solicitor’s fees and capacity to react when you find a property? In a heated market, rapid response times from your legal advisers is extremely important.
3. What is your capacity to borrow?
• Ask your bank or building society about your borrowing capacity?
• What packages, interest-only, Principal and Interest, and other lending combinations do they offer?
• Why not seek out a mortgage broker to assist?
• If I use a non-bank lender, will I pay higher fees?
• How long will the loan approval process take?
• Is it worth getting a mortgage pre-approval?
• Ultimately how much can you borrow?
4. Know your price range by learning from the resources available?
• Use the real estate apps to tell you what things have sold for?
• Apps such as REA, Real commercial, Domain, Commercial real estate, RP Data are valuable resources.
• Visit auctions in preparation, know what they sound and feel like, register for the online versions (you do not have to bid, just watch)
• Learn the language and nuances agents and auctioneers use.
Making the move
It will help if you become your own real estate expert in the price range you can afford. Armed with this information, you should be ready to make a move.
• Why is it I want to buy now? CHECK
• What type of property DO I want to buy? CHECK
• Which type of structure or entity should I use to buy the property? CHECK
• How much can I afford to borrow? CHECK
• Have I become an expert in my price range? CHECK
Some say too much knowledge can stand in the road of a successful person. Knowledge can prevent you from making decisions by filling you with the what ifs that inhibit you from deciding. However, there is so much information available when it comes to real estate, so much you can learn quickly, and many trusted people willing to help. So, why not absorb a little of their collective knowledge?
In conclusion, when you are standing on the edge of the financial cliff and the other lemmings are blindly running past you, armed with information and data you can at least make a rational, well-considered decision before you jump – if you do indeed need to jump.
Metricon to open a state-of-the-art selection centre in Newcastle
Australia’s leading home builder, Metricon is set to bring next level design, style, and innovation to Newcastle, when their brand-new customer selection centre- Studio M opens later this year. In a move to further support the growth of its home building business throughout the Hunter Valley, Metricon Homes will be opening a second NSW state of the art showroom, with the lease signed and fit out underway, for a planned late 2021 opening. The 1000 sqm space located in Hamilton is currently undergoing an extensive build program with Cunsolo Architects working closely with Metricon, to develop a contemporary and interactive interiors and exteriors showroom. The amenity rich customer experience facility represents a significant investment in the Hunter region. The progressive customer selection centre, will enable Metricon to deliver a seamless customer service experience with great levels of personalisation and customisation of homes. The strategic location on Donald Street in Hamilton will prove to be a convenient access point for customers building in the burgeoning region. Patrick Eather, Metricon’s General Manager, NSW said, “the Hunter region is Metricon’s second largest market in NSW and this move cements our commitment to customers building new homes throughout the area. We are creating a world class environment which is focused on a highly personalised experience that allows customers building with Metricon, to step into the next generation of home building and customer service innovations right here in Newcastle. “The innovative Studio M is designed to be very interactive for the visitor, while showing a wide range of possibilities and examples of interior and exterior products.