Australian Investment Property Market

The total value of the property market in Australia has increased dramatically in recent years, after a brief pause in growth in 2008 caused by the world wide Global Financial Crisis. Year on year since June 2013, the average price of housing in Sydney has increased by fifteen point four per cent, with the average property prices in Melbourne not being far behind in terms of year on year growth at nine point four per cent, data shows. This growth is being primarily led by an increase in levels of property investment, rather than factors such as population growth. Australians have had a historical love affair with investing in property, with levels of investment in real estate here greatly exceeding the international average. With the Global Financial Crisis denting international confidence in stock markets and complex financial products, investors throughout the world are discovering a similar love for real estate investment. Australian real estate in particular, due to Australia’s comparative economic strength and relative political and economic stability, is becoming a favourite for international investors, many of whom are purchasing Australian real estate investments through buyers agents, who help them navigate the differing legal and property market context of the Australian real estate market.

Although a buyer agent real estate agency may be particularly ideal for an investor purchasing property from overseas, a buyer real estate agent is ideal for many types of buyers. A buyer specialist real estate agent essentially acts as the buyers advocate in Melbourne, because, unlike a traditional real estate agency model, the real estate agent is only representing the interests of the buyer, not of the vendor or another party. It is important to ensure, however, that you are dealing with a genuine buyer agent. Some real estate agencies will advertiser themselves as a buyer agency while actually conducting activities for vendors, either under the same name or in a related business. It is also worth checking if your real estate agent is a member of the relevant state or territory real estate association: for example, in South Australia, REISA, the Real Estate Institute of South Australia.

If you do acquire a real estate investment, then a property management firm can possibly be the ideal solution for the ongoing management of your investment. A property management in Middle Park acts as the liaison between a land lord and tenants, handling such things as renting out the property, maintenance requests, and the like. For investors who live away from the location of their investment, or who simply live a busy life, a property manager can save much time and hassle. Please do not make any investment decision on the basis of this general interest article. This is not professional advice, and should not be considered a substitute for such. Obtain your own independent advice prior to making any financial decision.

4 ways Granny Flats can add value to your home

Let’s start off by establishing something; granny flats are no longer just for your granny. They can be teenage flats, adult children flats, home offices or just about anything. So how can a granny flat add value to your home, read on to find out.

1. Dual occupancy. A granny flat is generally detached from the main dwelling (main house). This makes it perfect for a dual occupancy. This basically means that you can live in the main house and rent out the granny flat to an outside tenant. Depending on location and size you could earn anywhere between two and four hundred dollars a week on rent from granny flats. As the flats are usually fully self-contained it is an easy way to add to your regular income. It is however, not for everyone. Some homeowners may not like the lost privacy.

2. Home office space. For those that may not like the idea of renting to tenants a home office is another way that granny flats can add value. Professionals such as hairdressers, massager therapists, chiropractors or counsellors could use the space as an office. This is a great option as the practitioner is not required to find a room to run their practice from and it not required to pay weekly rent. The flat is also separate from the main house so there remains an element of work and home separation.

3. Can increase seeling price. The addition of a granny flat can often mean that it is acceptable to ask a little more when selling than just a single dwelling. When people are looking to buy houses they can see the potential investment and the potential income (see previous two points) and are more than happy to fork out a little bit of extra cash. A granny flat becomes an asset, like a swimming pool or large garage, so it is hard to over capitalise for homeowners. In most cases when selling, you will earn money on the investment made by installing a granny flat. For more information about this article, you can ask the experts in this weblink regarding this topic.

4. Cheap to install. A high range granny flat can cost around $60,000 which when you think about renovations to homes, doesn’t go that far. So putting a granny flat in can be a great way to maximise the value of your home without spending too much cash. For about the same price a new kitchen you can earn money back on the investment. For example a $60,000 granny flat generally can be rented at a price of $240 per week. This means that in less than one year you will be making profit on the granny flat (it will have essentially paid for itself). And, that is something a kitchen renovation can’t do and something that people looking to buy houses understand and are willing to pay a little extra for.