home valuation Archives - Page 2

How Well Placed Is the Housing Sector?

house constructionIn the view of Peter Kouilzos, 2014 is beautifully interspersed with buying opportunities. In an article for the website realestate.com.au he asserts that the investors would love how 2014 shapes up and least because of a super growth in prices. It is just that so many factors are expected to combine well to make it a happy-hunting time for property investors.
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Modernist Designs Get Their Due

modernist designsModernist symbols like glass and steel can be procured cheaply by manufacturers and the fact that they lend to the needs of uncluttered spaces and purposeful designing makes modernism a much liked concept today. In an article for the website realestate.com.au, Holly Jones talks about how we have come to prefer clean and purposeful furniture placement, easy-on-the-eye illusion of space, and uncluttered look in our homes. All of these add to the level of sophistication.

The modernist idea also borrows heavily from the minimalist look- where anything not completely required is left out. Jones is right in her evaluation that this trend may be a direct result of the success of open plan living.

You can read the original article here.

How do you measure Modernist against Bohemian against Traditional?

Pool Fights with Extra Bedroom for Top Honours

swimming poolI remember commenting on a Michael Yardney article which talked about the distinct tastes of Sydneysiders and Melburnians when it comes to choosing home features for themselves. Real estate constructors have been served well with the knowledge that “public transport access” and “shops in the vicinity” mattered more to Melburnians whereas ‘traffic’ mattered a lot for Sydneysiders.

Of course, the teeming multitudes of both the cities put “neighbourhood safety” right at the top in their wish list. In another article that works along the same lines, Holly Jones, writing for the website realestate.com.au, talks about what features on the property wish-list of Aussies in general.
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Baby Boomers Might Change Investors’ Stance on Ground Floor Units

baby boomerTake one look at the number of ground floor properties sold as against the non-ground floor properties. Take one look at the difference in purchase prices via the comparable sales report. Take one look at their rental rates. I bet you will find a stark difference. Ground floor units have not been perceived as a desirable purchase historically and this has its own sound reasons.
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Is Your Bargain Home Worth the Bargain?

fixer-upperIn my years of plying the buyer’s agent’s trade, I have come across many wonderful people who bought an apparently wonderful fixer-upper only to be duped non-so-wonderfully. On the contrary, I have also seen some of the bargain deals turning into renovators’ delight.
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Why You Would Look At Median House Prices

median house pricesIt is any investor’s dream to buy in an area which has historically registered smart capital growth. Add to this the time-tested principles of buying in a fast-developing neighbourhood and moving in sync with shifting paradigms- proximity to urban location, cafe culture, among other things. This said, the importance of researching median prices cannot be overestimated. After all, it gives you a rather precise idea of how property is priced for the given area.
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How Do Most Home Buyers Evaluate Homes?

energy efficient homesI read an interesting piece on the website realestateview.com.au. I will go on to say that most of the findings the article talks about is  in sync with my expectations. The article is about the aspirations of buyers when they are searching for a home.
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How Banks Perform Property Valuation

property valuationIt is a bank’s job to lend money but it is also their job to hold the sanctity of the prime lending institution. Banks fulfil both these requirements to the tee- they never shy away from forwarding home loans but at the same time conduct their own home valuations to judge the strength of the collateral. This brings us to a crux question? What standards of property valuation do banks use or in other words how do banks value properties?
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“Walkable” neighbourhoods are more sought after

1341556_hungry_birdIn times when Australians are opting for the inner-city experience over the idyllic life of the suburbia and choosing balconies instead of backyards, ‘Walkability’ has certainly become a prime criteria for selecting homes. Michael Yardney for the Property Update asserts that homes closer to amenities, transport and healthcare facilities will be among the more sought after.
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Inflation-adjusted home value is the true indicator of growth

1421405_old_houseWhile the nominal or non-inflation adjusted home value will give you a rough idea of growth, the true picture is only reflected once you take inflation into account and adjust home values against it. Cameron Kusher for The Property Observer says that this is the ‘Real’ home value- a significant insight for those investing in the property market.

For instance, prices over the capital cities showed a cumulative hike of 2.8% over the first quarter of 2013, yet in real terms, the growth should only be considered 2.4% (little below) as there was a hike in Consumer Price Index by 0.4% too.

Over the last 17 years, calculating upto the March 2013 quarter, home value has increased roughly 3.4 times whereas the real value has increased only 2.2 times. This then is the effect of inflation, something that cannot certainly be ignored. Kusher smartly illustrates the falls in home values across the capital cities (including both the cases in his argument: inflation-adjusted home values and the non-inflation adjusted ones).

Home value spurts in recent future will keep very close to inflation; may be a notch higher due to  the low cash rate environment prevailing now.

You can read the full article here.

Do you know the difference between your real and nominal home value?