Articles:
Real Estate Investing: Top Tips
Real estate investing is one of the most popular topics on Google searches and for good reason. With the potential to generate passive income and wealth, real estate investing can provide significant financial benefits. However, it can also be an intimidating and complex endeavour. To help would-be real estate investors maximize their chances of success, here are some of the most important tips to consider before investing in real estate.
Real estate investing is one of the most popular topics on Google searches, and for good reason. With the potential to generate passive income and wealth, real estate investing can provide significant financial benefits. However, it can also be an intimidating and complex endeavour. To help would-be real estate investors maximize their chances of success, here are some of the most important tips to consider before investing in real estate.
1. Research the Market and Location: Before investing in real estate, it is essential to research the local market and the area’s economic and demographic trends. Analyze factors such as population growth, job opportunities, and school districts. Also, research potential neighbourhoods and consider factors such as crime rates, access to transportation, and proximity to amenities.
2. Understand Your Financing Options: Real estate investors should understand their financing options before investing. Different types of financing, such as traditional mortgages, bridge loans, and hard money loans, can provide different benefits, so it is important to understand the pros and cons of each.
3. Evaluate Property Condition and Maintenance Costs: Before investing in real estate, it is important to evaluate the condition and maintenance costs of potential properties. Take the time to inspect the property, consider the age and condition of major components, and estimate the costs of repairs and ongoing maintenance.
4. Analyze the Potential Returns: Real estate investors should always analyze potential returns before making an investment. Consider factors such as the expected rental income, potential appreciation, and tax benefits. Also, consider the costs of acquiring and holding the property, such as closing costs, real estate taxes, and insurance.
5. Prepare a Plan: Before investing in real estate, it is important to have a plan and be prepared for the expected and unexpected costs associated with the investment. Estimate the costs of repairs and maintenance, consider the potential rental income and plan for the taxes, insurance, and other expenses associated with holding the property.
Real estate investing can be a great way to generate passive income and build wealth, but it is important to understand the complexities associated with it. By taking the time to research the local market, understand financing options, evaluate property condition and maintenance costs, analyze potential returns, and prepare a plan, real estate investors can maximize their chances of success.
Important things when building a house
Some of the top 6 tips for when you are looking to build your house.
1. Understand Your Budget: Before you start building your new home, it’s important to understand what you can afford. Research pricing in your area and create a budget that you can stick to.
2. Select a Builder: It’s a good idea to interview multiple builders to find the right one for you. Make sure you ask questions regarding their experience, pricing, and materials they use.
3. Choose a Floor Plan: As you’re deciding on a builder, you’ll also need to decide on a floor plan. Consider the size of your family, your lifestyle, and the amount of space you need.
4. Consider Energy Efficiency: New houses built today are designed to be more energy efficient. Look for features such as insulation, windows, and energy-efficient appliances that can help reduce your energy costs.
5. Choose Finishes: Once the basic structure of your new house is complete, it’s time to choose your finishes. This includes things like lighting, flooring, countertops, cabinets, and paint colours.
6. Prepare for Inspections: Throughout the building process, your local government will require several inspections. It’s important that these inspections are completed and passed before you can move into your new home.
The Current Australian Property Market
The Australian property market is continuing to experience a period of growth and stability, despite the global economic uncertainty and the impact of the coronavirus pandemic.
The Australian property market is continuing to experience a period of growth and stability, despite the global economic uncertainty and the impact of the coronavirus pandemic.
Recent figures from CoreLogic show that median house prices have risen by 2.6 percent over the past 12 months, with prices in Sydney increasing by 3.2 percent, Melbourne by 3.1 percent, and Brisbane by 1.4 percent.
The growth in the market is being attributed to a number of factors, including low interest rates, a rise in population, and government stimulus measures.
Low interest rates have made it easier for borrowers to access finance, and have also encouraged investors to buy property. There has been a surge in foreign investment, with Chinese investors being particularly active in the market.
The population of Australia is also growing, with the current population at 25 million. This is driving up demand for housing, as more people look to buy property.
The government has also implemented a number of stimulus measures to help stimulate the economy, such as the HomeBuilder grant scheme. This scheme provides grants of up to $25,000 for eligible first home buyers to build or purchase a new home.
Overall, the Australian property market is in a strong position. Prices are rising, and the market is expected to remain stable in the near future. However, it is important to remember that the market is always subject to change, and buyers should always ensure that they are making an informed decision.
Skilled Trades in Australia
The skilled trade landscape in Australia is rapidly evolving, as the current labour market is becoming increasingly competitive due to a surge in the demand for skilled workers. This has created a unique opportunity for those who possess the right skills and knowledge to take advantage of the current labour market, and reap the benefits of the associated financial and career growth.
The skilled trade landscape in Australia is rapidly evolving, as the current labour market is becoming increasingly competitive due to a surge in the demand for skilled workers. This has created a unique opportunity for those who possess the right skills and knowledge to take advantage of the current labour market, and reap the benefits of the associated financial and career growth.
The Australian economy is highly reliant on the skilled trades, with a large number of job openings for those with the necessary qualifications and expertise. This is especially true in the construction, manufacturing, and engineering sectors, as demand for these skills is growing rapidly. In particular, the building and construction industry is experiencing a particularly high demand for skilled tradespeople. This is due to the rapid growth of the sector, with a record number of jobs being created.
In addition, the demand for skilled tradespeople is also being driven by the technological advancements and automation revolution. As technology continues to improve, the need for skilled tradespeople to perform complex tasks is increasing. This is particularly true in the areas of engineering, automation, and robotics, where highly skilled workers are in high demand.
The Australian government is also taking steps to address the shortage of skilled tradespeople in the country. This includes the implementation of a range of initiatives and policies designed to promote the recruitment and training of skilled tradespeople. These initiatives include the introduction of apprenticeship and traineeship programs, as well as the provision of financial incentives to employers who hire and train apprentices.
Overall, the skilled trade landscape in Australia is rapidly changing, presenting a range of opportunities for those with the right qualifications and expertise. Those who have the necessary skills and knowledge can take advantage of the current labour market and benefit from the associated financial and career growth. With the right approach and dedication, these individuals can make a successful career out of their chosen trade.
Jobs in Construction
Construction jobs are becoming increasingly more popular as the need for infrastructure and housing continues to rise. With a wide variety of jobs available, there is something for everyone looking for a job in the construction industry. From the skilled trades workers to the administrative staff, construction jobs offer competitive wages and the opportunity for career growth.
Construction jobs are becoming increasingly more popular as the need for infrastructure and housing continues to rise. With a wide variety of jobs available, there is something for everyone looking for a job in the construction industry. From the skilled trades workers to the administrative staff, construction jobs offer competitive wages and the opportunity for career growth.
The most common construction jobs are in the trades. Plumbers, electricians, carpenters, masons, and welders all play a vital role in the construction process. They are responsible for installing, repairing, and maintaining the building’s systems and structures. With the increasing demand for new development, these trades are in high demand, meaning there is plenty of work for those interested in the field.
Other construction jobs include project managers, estimators, and engineers. Project managers help coordinate the various teams involved in the project, while estimators are responsible for predicting the cost of the job. Engineers are in charge of designing the project and ensuring that it meets all safety regulations.
Construction jobs also include administrative staff. Office managers, accountants, and HR staff are all needed to keep the project running smoothly. Administrative staff are responsible for managing the finances, hiring contractors, and keeping the project on track.
The Worst Part of Buying a Brand New House
Buying a new house can be far riskier than anticipated. Many people think buying a brand new home is much better than either building a new house or purchasing an older house. This can be true but can also come with its own challenges.
Buying a new house can be far riskier than anticipated. Many people think buying a brand new home is much better than either building a new house or purchasing an older house. This can be true but can also come with its own challenges.
There are many stories of new home buyers having issues with various parts of their house which are only discovered after a few months of living in the home. These can be things like leaking taps or roofs.
Due to the fact that it is a brand new house that has never been lived in and no one has made full use of the house, which means that any errors on the builder’s part have yet to come to fruition.
Worst-case scenarios can mean buyers having to temporarily move out in order for the builder to fix their mistake. Or perhaps they may even have to pay out of their own pocket for repairs if the warranty has expired.
Some ways to minimise your risk:
Make sure the builder is creditable
Confirm the warranty and what it covers.
Confirm all building and certification forms are complete.
Remember there are also many positives to buying a brand new home. These are just a couple of the cons to keep in mind when making your decision.
Queensland Buying and Developing land
The Queensland Government has residential and industrial for sale. This is part of the Economic Development Queensland is offering. Managed by the Queensland Government’s Specialist Property Unit.
The Queensland Government has residential and industrial for sale. This is part of the Economic Development Queensland is offering. Managed by the Queensland Government’s Specialist Property Unit.
The offering is for a variety of uses and ranges in size to meet the needs of buyers. This includes, “industrial estates for sale and lease to help retain existing industry and attract new business investment, well planned, affordable residential communities that deliver quality urban design and amenities and mixed use urban renewal precincts, including commercial, education and innovation precincts” as stated on the Queensland Government’s website.
As of December 2022, the featured industrial estates are:
Bohle Industrial Estate - Townsville
Gladstone State Development Area - Aldoga
South Mackay Industrial Estate - Mackay
The current residential projects are:
Carseldine Village - Brisbane Northside
Songbird - Brisbane South-West
The Village - Townsville
Woodlands Andergrove - Mackay
and the commercial land for sale is available in:
Brisbane Northshore
Lumina - Gold Coast Heath and Knowledge Precinct
Using this information can be beneficial if you are considering residential, commercial and/or industrial land as we can use the information as an indicator of potential interest and growth in these areas and assume that these areas will steadily appreciate due to their developments.
Cheapest real estate in Australia
Even as we have seen sky-rocketing property prices across Australia making the market seem impossible to get into for first-time home buyers and investors, there are still areas that can be considered “affordable”. Here are some of the cheapest areas across Australia:
Even as we have seen sky-rocketing property prices across Australia making the market seem impossible to get into for first-time home buyers and investors, there are still areas that can be considered “affordable”. Here are some of the cheapest areas across Australia:
Elizabeth - South Australia
Median house price of $209 000 to $260 000 across Elizabeth North, South, Downs, Grove and Park.
Daroven Park - South Australia
Median house price of $220 000
Russel Island - Queensland
Median house price of $255 000
Smithfield Plains - South Australia
Median house price of $260 000
Smithfield - South Australia
Median house price of $265 000
Toogoolawah - Queensland
Median house price of $270 000
Laidley - Queensland
Median house price of $271 500
Medina - Western Australia
Median house price of $275 000
Elizabeth - South Australia
Median house price of $277 750
Elizabeth East - South Australia
Median house price of $280 000
Armadale - Western Australia
Median house price of $280 000
Albion - Victoria
Median house price of $285 500
(Source; realestate.com.au 2022)
Want to buy land?
If you are interested in purchasing land there are a few things to consider before you make the purchase.
Whether you are looking for land to build your dream house on or perhaps looking for commercial or agricultural land, you should always do in-depth research before making your final decision.
If you are interested in purchasing land there are a few things to consider before you make the purchase.
Whether you are looking for land to build your dream house on or perhaps looking for commercial or agricultural land, you should always do in-depth research before making your final decision.
Here are some of the general considerations:
Location
Location, location and location. In any area of real estate, the location is one of the most vital parts. Always look for the best areas to purchase in. Keep an eye out for schools, shops and future infrastructure developments. It is much easier to change your house than to change the location it is in. The location is certainly one of the most important aspects of the investment. Try to avoid flood zones and bushfire areas.
Check the zoning
The zoning defines the type of development allowed on the property. For example; if you want to build a house on your plot, you need to make sure the plot is zoned correctly. Certain areas may be zoned differently for things such as build heights. Cities will have buildings with multiple storeys while rural areas may only be allowed 2 or 3 storey dwellings.
Terrain
The soil and surrounding terrain of the land you are looking at is another thing to keep in mind. Whatever you are looking to do with your land the terrain can affect a lot. If you want to build and the plot is filled with trees, getting rid of them comes at an additional cost.
Does it have utilities
Make sure that the land has the required utilities available. Water, power, gas internet and sewage will eventually be needed so if they aren’t available initially there will be additional costs at some point, which should be considered before purchasing.
Shape
The shape of the property can determine what can and can’t be built. This can result in you having to change plans and potentially cause additional costs. Square/rectangular shaped lots seem to be appealing, so if you are looking for an investment or think you might sell in the future take this into account.
Road access
Rural land may have no or very low-quality access to major roads. This obviously is more of a risk and will require you to have the necessary means of getting to the property.
Rent or Buy Calculator
This is a common question Aussies have. While once owning a home was the Australian dream, it seems to now be less appealing.
Is it cheaper to rent or buy?
This is a common question Aussies have. While once owning a home was the Australian dream, it seems to now be less appealing.
As the cost of buying a house has sky-rocketed with wages not increasing at nearly the same pace Aussies are finding it harder and harder to afford a home. However, this isn’t the only reason, as remote work is becoming more popular so is the flexibility of one’s living location.
The younger generation seems to enjoy moving around. With this in mind renting would seem like the obvious choice. It is easier to pack up and go, you’re not tied to a long-term mortgage and they can often rent a better home than they could buy.
Nonetheless, it is still commonplace to eventually settle in and make the purchase of a home. People often value instead building equity in a home than “paying down someone else’s mortgage”. There are many benefits to owning a home and equity is the most popular one.
Now there is no right or wrong answer to the question of buying or renting and everyone’s situation is unique. The New York Times has a great calculator that you can use to run the numbers and see which option is the most cost-effective for you.
You can see the calculator here - RENT OR BUY CALCULATOR
Is it a good time to buy?
With the rise in interest rates and the decreasing prices we are seeing across the Australian property market, home buyers are left wondering if now is a good time to buy a home.
With the rise in interest rates and the decreasing prices we are seeing across the Australian property market, home buyers are left wondering if now is a good time to buy a home.
Interest rates increasing also might lessen one’s interest in purchasing a property in the current market. Interest rates have a relatively slow trickle-through rate into the actual price of property. This can mean that there are still further decreases to come. Meaning that a little bit of patience may come in handy if you are looking to get a discount on a home you are looking to buy.
Property, however, should be viewed in the long term and you should always remember the adage “it is not about timing the market, it is about time in the market”.
It is a unique time and you must not panic but rather use this time to do your own research and aim to make the best decision based on your own situation. Make sure not to rush into anything as an appealing price you see today might be even better in a couple of months.
Economic uncertainty and the cost of living having skyrocketed, it is important to keep in mind your cash flow and make sure you are not going to be putting yourself under financial strain.
If you are wanting to buy a home then you should definitely prioritise your time on finding a great quality home in a great location rather than aiming to time the bottom of the market.
Construction Industry Collapse
Throughout this year we have seen the collapse of many construction companies both large and small. This continues to be the norm going forward. This news leaves people interested in building rather unsettled.
Throughout this year we have seen the collapse of many construction companies both large and small. This continues to be the norm going forward. This news leaves people interested in building rather unsettled.
While it seems to be occurring more across the residential construction industry the commercial side is seeing some of this too. We have seen the closure of some very large well-known developers.
It is understood that these companies have struggled with cash flow issues due to material increases and project delays. In addition to this, the labour market has been difficult and companies have had to increase wages to appeal to skilled workers in order to complete project demand.
Companies that have been locked into fixed-price contracts with clients have had to absorb these unexpected cost increases for as long as they can. But unfortunately, this can not last forever which has resulted in what we have been seeing with all these liquidations across the industry.
Hopefully, the increase in interest rates will slow construction demand and will decrease the number of construction companies unable to meet payment demands to creditors. We are already seeing a decrease in the number of building approvals across Australia which is a positive sign for the industry.
This is an alarming situation combined with still a relatively high interest in consumers looking to build means new home builders need to be very cautious of who they choose as their builder. See here for some of the things to look out for when choosing a builder - What to look for when hiring a builder.
Build Costs
The design presented by your design professional will likely be above the initial scope hoped for. When conceiving a building project, you, the client, will want to put all of your wishlist items in and the designer will respond accordingly. It is then priced accordingly. A typical architectural build generally starts at…
Design Costs
You may opt for an architect, skilled building designer or interior designer to translate your project desires. The charge for their services is likely to be 5 to 10% of the approximate build price, determined by their own pricing structure.
Building Costs
It is likely the design presented by your design professional will be above the initial scope hoped for. When conceiving a building project, you, the client, will want to put all of your wishlist items in and the designer will respond accordingly. It is then priced accordingly. A typical architectural build generally starts at $3500 per square metre.
Have building costs gone up?
Whilst building costs have always fluctuated with rise and fall, the last few years have really highlighted the globalisation of supply markets and led to a sharp increase. While we are not economists, we sense that the increase seems to be settling in, so price increases will quickly become the new normal.
None of these forces seems to have dulled people’s desires to build and the innovative nature of the building industry means there are ways to overcome any type of challenge.
A note on off-form concrete
A current popular choice for truly distinct homes, while it costs more it also gives back through great longevity and a luxury tactility that can’t be replicated. A rough starting idea of the cost is $5500m2 (some could be up to $7000m2).
Cost of getting out-of-ground
These costs refer to site establishment, foundational costs, planning costs, permits, etc. They can range from 10 to 20% of the overall price.
Prelims
These are a fixed rate and are very similar to the oncosts in a business. It includes supervision, costs of running the site, site establishment, scaffolding, toilet hire etc and usually will come in at 10-15%.
Please note these prices vary based on location. As mentioned these prices will and maybe even have changed due to the pace material costs are changing. So please take this as an informative, rough estimate you can use to gauge a very broad idea of the cost of building.
What to look out for when hiring for a builder
Your relationship with a builder needs to be taken seriously. This is often a long-term commitment with a person and or company offering a service that in many cases that has a direct impact on your life - in the case they are building the house you will be living in.
Your relationship with a builder needs to be taken seriously. This is often a long-term commitment with a person and or company offering a service that in many cases that has a direct impact on your life - in the case they are building the house you will be living in.
Australia is fortunate to have many great builders throughout its’ many states. But for every great builder, there is one or more not-so-great builders.
There are simple characteristics to look for such as - they build similar homes to what you are wanting to build. They build in the area or are located close by (this means they know the area, they know subbies that work in the area and they can get materials to the area).
Here are a few things that you may not have thought to look for in a builder but are equally as important and can help determine the quality of the builder:
Experience
This seems obvious but can often be overlooked. Don’t just look at how many years a builder has been in business, this is important but is only the tip of the iceberg. You want to look at the previous builds they have completed. Were the clients happy? How long did it take? Was it completed within the time frame? Was it within budget? These questions will obviously be best answered by previous clients. There is no harm in asking the builder for references before engaging them for a project.
Communication
Does the builder communicate regularly? If you are looking to get a price from a builder this is a good time to see how they communicate. Are they answering any questions you may have? Do they respond in a reasonable time frame? In addition to these, you are going to want to make sure the builder is asking you questions too. You want to gauge their interest and commitment to your project.
Team
Now the bigger the team size doesn’t necessarily mean the better the builder. Many builders have a very small team and this is beneficial as it decreases their overheads and most likely means they take on fewer projects which means they will be more focused on your project. Some builders may not even have an office. Once again, this is not a bad thing necessarily. These are just factors that need to be considered. If they have no office, find out why. They may be having cash flow issues which is a major concern or perhaps they find there is no need to have an office as they can simply work from home.