10 Minute Renter Checklist

With increasingly quick open houses, we asked a leading professional – Suzanne Brown of RentWest – to devise a must-check list for prospective homes.

It’s no secret that renters are finding home viewings extremely difficult in their quest to find their perfect, long-term home. With a lot of pressure on vacancy rates (and property managers), it’s likely you will have 30 minutes (or sometimes less) to look through a property with 25 people or more. In fact, there are even reports of up to 40 people going through the one home viewing.

Rent.com.au surveyed renters earlier in the year (Renters Unite and Have Your Say, June 14–17) and discovered renters were finding it increasingly difficult to check the suitability of a home in the short time frame. They found that they were expected to check the suitability of a house within as little as 10 minutes before committing to a lease agreement. When you consider that more and more people are renting as a lifestyle choice and wanting their rental house to be a home for a long period of time, you can understand that this scenario is a little unsettling.

While choosing a home is a very personal decision and based on many different things, Rent.com.au asked leading property manager Suzanne Brown of RentWest to compile a list of must-checks to safeguard your decision. While you know the look and feel of a house that’s right for you, these questions will ensure those practical aspects that sometimes get overlooked in the rush of an open house.

1. SECURITY

Make sure from insurance point of view that there are deadlocks and window locks. In many cases, tenants move into a property and start to sort their insurance, then find they can’t get any cover because there are no deadlocks on windows and doors. Also look for or ask about an alarm system.

2. STORAGE

Is there enough internal and external storage? Also check robe space and linen storage. While such a basic need, this is one area that you can’t compromise on. It can be costly when you need to buy in your own storage, then there’s the hassle of selling it should you move into a new home with adequate storage.

3. CLEANLINESS

Remember that you are likely to be taking the property ‘as viewed’. Don’t assume that the junk in the rear sheds will be cleaned out, the dusting sorted and the weeding and leaves taken care of for your arrival. Ask.

4. HEATING & COOLING

Is there airconditioning? This is something we can often assume is standard, however that is not the case. Ensure you ask: is there airconditioning? Is it hot and cold? And is it in working order? It’s also a good idea to remember to look in the bedrooms and upstairs areas for airconditioning.

5. BEDROOMS

Also check the number of bedrooms and the size (measure up the room by stepping it out or take a tape measure). Mistakes can be made on info sheets and sometimes a room can be called a bedroom when it’s not really practical to be one, so double check.

6. TECH BITS

Double check the position of television antennas, foxtel outlets, telephone outlets and powerpoints. This may seem a little pedantic, but it’s these basic outlets and points that can cause unnecessary irritation.

7. KITCHEN & LAUNDRY

Is there a fridge or space for one? If a fridge alcove is built in to cabinetry, measure it up to ensure it fits your fridge. Same goes for the laundry: check if there is a washing machine and drier or if there is adequate space for yours.

8. ROLLER DOORS

Is it automatic or manual? This is actually a big issue. Ensure you ask the property manager to physically check how it operates, so there are no surprises when you move in.

9. LAWNS & GARDENS

Walk outside and look at the maintenance that will be required. Ask whether it is to be maintained by the tenant or whether there are any contributions or inclusions. Lawnmoving and gardening is usually specified in an advertisement, but it’s also wise to double check.

10. GAS vs ELECTRIC

This is a personal preference, but one that many people feel strongly about. So, if you are someone who loves to cook, ensure you check this one out.

For more useful tips and information please visit our facebook page

Cheaper to buy than rent in more suburbs

• Queensland highest with 147 suburbs cheaper to buy
• Adelaide has the most close to the city
• Victoria has just 17 suburbs/towns

SOFTER property prices are proving a boon to renters wanting to own their own homes with it now cheaper to buy than lease in a record 388 suburbs across the country.

The RP Data Buy vs Rent report analyses the different between monthly mortgage payments and monthly rental payments based on the median value of houses and units.

The data shows that there has been a 63 per cent increase in the number of suburbs where it is now cheaper to pay a mortgage than pay a landlord - only 238 suburbs fit the criteria back in August.

The analysis provides further evidence of just how soft property prices have become - the RP Data Hedonic Index for October released on Friday showed that nationally, property prices sank -1.4 per cent in October after four months of growth.

But for renters wanting to take the plunge, it is great news. For those prepared to pay an extra $50 a month more than their current rents and take a variable home loan, the number of suburbs on offer jumps even further to 1419 suburbs. 

Unsurprisingly, across the capital cities, it is typically apartment style housing where it is more affordable to purchase than commit to the dead money or a rental due to lower property prices.

Queensland offers the majority of suburbs and towns with 147 locations where it is cheaper to buy than rent, although most are located in regional areas including Mackay, the Darling Downs, Gold Coast and Sunshine Coast. Brisbane accounts for 42 suburbs, most of which are located in Logan and Ipswich.

New South Wales has the second highest number of options with 88 suburbs across the state where a mortgage is cheaper than renting. Units in Enmore and Rushcutters Bay are among the surprises. Those wanting to buy a unit in Enmore with an interest only loan based on 5.9 per cent, would pay $691 less a month than the current median rent, according to the estimates by RP Data.

The national research director of RP Data, Tim Lawless said the combination of soft property prices and discounted mortgage rates had combined with high rents and low rental vacancies to cause many renters to make the switch.

"In some suburbs buying may actually be cheaper than renting, especially where we are seeing evidence of tight rental markets resulting in rental increases," Mr Lawless said.

"For many renters, now may be a good time to either re-enter the market or buy their first home."

Victoria supported just 17 suburbs where it is now cheaper to buy than rent, although only three of these were close to the Melbourne CBD. The rest were in country towns including Mildura, Bendigo and around the Wimmera.

In South Australia and Western Australia, there were 48 and 44 suburbs and towns respectively, while in Tasmania and the Northern Territory there were 30 and 11. South Australia boasted a 31 suburbs out of the 48 that were located within Adelaide.

The analysis did not consider the potential for capital gains or other costs of ownership, such as stamp duty or strata title fees for units, but Mr Lawless said it offered a good starting point for renters wanting to take the leap.

The Buy vs Rent report can be downloaded free at www.myrp.com.au/buyorrent

Read more: http://www.news.com.au/realestate/buying/cheaper-to-buy-than-rent-in-more-suburbs/story-fndban6l-1226510420832#ixzz2BJib1IeZ

A few tips from REIQ on how to price your home correctly!

Everyone knows how much their home is worth. Don’t they?

  

It’s the conversation that can strike fear into the heart of even the most experienced real estate agent. A person’s home is often their absolute pride and joy. Often it has been home to wonderful family memories or the blood, sweat and tears that were poured into those stunning renovations. Then you throw the ever-discerning buyer into the mix. They have hunted the open-home trail for months, researched their preferred suburbs and compared homes upon homes. Ultimately, it is these people who will determine what your home is really worth.

 

So when it comes time for an agent to have the price-setting conversation with a seller, the reality of the market conditions can come as, well, a rude shock. It is often the case that the seller is sporting a lovely pair of rose-coloured glasses. What is a castle in their eyes could be – for lack of a better term – a shack in the eyes of the buyer.

 

When deciding how to price your property, there is often a disparity between what the seller expects and what the market is offering.

 

Here are a few key tips to help you through the price-setting process;

• Setting a realistic price will ensure you obtain your asking price and also conclude the sale promptly;
• Sellers who set a too high price on their homes can seriously damage their prospects for a quick sale;
• Facts and figures show that an overpriced property discourages serious buyers. When it remains on the market too long it redirects interest to more realistically-priced properties;
• Emotional attachment and pricey renovations often drive sellers to push the price up – and understandably so. However, unfortunately the state of the property market won’t always reflect personal circumstances; and
• Do your homework! Be sure to research the property market in your area and seek the opinion of a professional from a REIQ accredited agency;

A good start is an appraisal – an inspection to estimate the sale price of a property. An agent will appraise your property at no charge if you request them to do so.

 

This is not a ‘pluck a figure from the air’ kind of appraisal. Under the Property Agents and Motor Dealers Act, if you request the agent to provide a market appraisal on your home, the agent will provide a comparative market analysis (CMA) or written statement for your property.

 

The criterion for a CMA is comparing three properties of similar standard and style sold within a five-kilometre radius in the last six months. If an agent is not able to provide a CMA due to lack of comparable sales within your area, they must supply you with a written statement outlining how they arrived at the suggested market price of your home.

 

From the CMA or written statement, and taking into account the current property market, sellers will have formed a foundation from which to set a realistic selling price for the home.

 

In any market conditions, establishing a realistic price when selling your home is important, however, it is even more important when there are more sellers than buyers in the marketplace. After all, being an educated seller – sans rose-coloured glasses – can make the selling process much more efficient for all involved.