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Apr 12, 2024
Mistakes First Home Buyers Make (And How To Avoid Them)
If you're considering buying your first home, congratulations! This is an exciting time in your life. However, it's important to avoid making common mistakes that can end up costing you time and money. In this blog post, Caine Real Estate explores five of the most common first homebuyers' mistakes and how to avoid them. So read on and learn what you need to do to make the process as smooth and stress-free as possible! Not Getting Pre-Approval Before Your Search The first mistake that many first home buyers make is looking for a home loan before they get pre-approval. Getting pre-approval from a lender is an important first step because it will give you an idea of how much money you'll be able to borrow. This can help you narrow down your search to homes that are within your budget. Without pre-approval, you could end up falling in love with a house that's out of your price range. It's not uncommon for buyers to put down a deposit on a home only to find out later that they can't get financing for the rest of the purchase price. Don't let this happen to you! Get pre-approval before you start your search, and you'll be in a much better position to buy the home of your dreams. Not Having Enough In Your Savings Another mistake that first home buyers often make is not having enough in savings. When you're buying a home, there are a lot of upfront costs that you'll need to pay, such as the deposit, stamp duty, and legal fees. If you don't have enough money saved up to cover these costs, you may need to get a loan or finance the purchase with your credit card. This can end up costing you a lot of money in interest and fees, so it's important to make sure you have enough in savings before you start looking for a home. Aim to have at a bare minimum ten percent of the purchase price saved up, and you'll be in good shape. Skipping Pest and Building Inspections Pest and building inspections are important when purchasing an older established property. These inspections are relevant because they can help you identify any problems with the property before you buy it. If there are any major issues, you may be able to negotiate a lower purchase price or get the seller to fix the problems before you buy. Many first homebuyers skip these inspections because they're eager to finalise the purchase and move into their new home. However, this is a mistake that can end up costing you a lot of money down the road. Don't skip these inspections - they could save you from making a costly mistake. Lodging Your First Home Owner's Grant Application Incorrectly If you're eligible for the first home buyer's grant, make sure you lodge your application correctly! The first home owner's grant is a government initiative that provides a financial boost to first home buyers. In order to receive the grant, you'll need to meet certain criteria and lodge your application correctly. If you don't lodge your application correctly, you could miss out on receiving the grant. This is money that can help you with your purchase, so make sure you do it right! Not Assessing the Neighbourhood When you're buying a home, it's important to assess the neighbourhood before you make your purchase. You'll want to make sure that the neighbourhood is safe, has good schools, and is close to amenities. First homebuyers often skip this step because they're eager to find a home and move in. This could mean you're in a neighbourhood that doesn't have the amenities you need. Perhaps the schools aren't what you're looking for, or it doesn't offer the lifestyle you seek. The surroundings of your home are often just as important as the home itself. Buying your first home is an exciting time, but it's also important to be aware of the potential mistakes you could make. By following this guide, you'll be in a much better position to avoid them! Get pre-approval, have enough in savings, don't skip pest and building inspections, make sure you correctly lodge your First Home Owner's Grant Application, and assess the neighbourhood before you buy. Do all of this, and you'll be on your way to a smooth home-buying experience.
Apr 5, 2024
Land Tax is Here
Recent updates in the property investment landscape highlight a noticeable shift, as Victoria, along with other states, has begun issuing new land tax notices. While this move signals an adjustment in land tax receipts, it's crucial to view it within the broader context of the booming property market in Victoria. Despite the adjustments in land taxes, the property market in Victoria continues to offer substantial growth opportunities. Over recent years, house values have seen a significant increase of nearly 45%, outpacing the adjustments in land taxes and rental incomes, which have grown by around 30%. This growth indicates a resilient and expanding market, underscoring the potential for property investments to yield robust returns. Land tax, a state-imposed levy based on the value of land holdings, is designed with a marginal rate system. This approach aims to maintain a fair and equitable tax distribution, with the majority of primary residences exempt from this tax. For property investors, the costs associated with land tax are partially offset by income tax deductions, ensuring that the federal government assists in subsidising part of the expense. In response to the need for fiscal adjustments post-COVID, Victoria has introduced a temporary adjustment to the land tax threshold. This change is part of a broader Debt Repayment Plan, aiming to stabilise the state's economy and ensure long-term prosperity. Despite these adjustments, Victoria remains an attractive destination for property investment, with the state's vibrant market dynamics and long-term growth prospects. It's also worth noting that the majority of property investors, including many first-time 'mum and dad' investors, continue to navigate the market successfully. While the new tax measures introduce considerations for investors, the potential for capital growth and rental income remains strong, particularly for those with strategic investments and diversified portfolios. For investors concerned about the land tax adjustments, get in touch with one of the CRE sales team members to talk about how you navigate the changed tax settings best. As Victoria and other states look towards recovery and growth, the property sector is poised to play a key role. The adjustments to land tax are part of broader economic measures aimed at ensuring stability and prosperity for all stakeholders. For prospective and current investors, the Victorian property market continues to offer compelling growth opportunities, underscoring the state's appeal as a prime location for investment. Written by Elli Blanco
Mar 1, 2024
First Home Buyers Loans On the Rise, The Time is Now!
Certainly, there are lots of Real Estate market changes, and with investors offloading their properties the time for first homeowners is here! There's been a significant increase in first-home buyer activity over the past months, based on the latest data from the Australian Bureau of Statistics. There were a total of 9,491 owner-occupier first-home buyer mortgages issued across Australia in December 2023, which was 12.9% higher than the year before. The are lots of options and incentives for those who are trying to get into their first home, we have; Victorian Homebuyer Fund the Victorian Government will use the Victorian Homebuyer Fund to make a financial contribution to the purchase price in exchange for an equivalent share in the property. For example, if you have a 5%* deposit together, the Victorian Government will provide a contribution of up to 25%. That means that you’ll only apply for a mortgage equal to 70% of the value. First Home Owner Grant A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home. Your first new home can be a house, townhouse, apartment, unit or similar. A new home can be a home that has been substantially renovated, or a home built to replace demolished premises. Stamp Duty Waiver Both the duty exemption and the 50% duty reduction are available to first-home buyers when they purchase a new or established property in Victoria with a dutiable value of up to $600,000. The duty concession applies where the dutiable value is more than $600,000 but not more than $750,000. Vacant land can also attract the exemption or concession if you are buying it to build your home. First Home Guarantee The First Home Guarantee (FHBG) is part of the Home Guarantee Scheme (HGS), an Australian Government initiative. It is administered by Housing Australia on behalf of the Australian Government. Under the FHBG, part of an eligible home buyer’s home loan from a Participating Lender is guaranteed by Housing Australia. This enables an eligible home buyer to buy a home with as little as 5% deposit without paying Lenders Mortgage Insurance. For the FHBG, any Guarantee of a home loan is for up to a maximum amount of 15% of the value of the property (as assessed by the Participating Lender). This Guarantee is not a cash payment or a deposit for a home loan. First Home Super Saver Scheme (FHSS) The FHSS scheme allows you to save money for your first home in your super fund. The scheme allows you to make voluntary contributions (both before-tax concessional and after-tax non-concessional) into your super fund to save for your first home. If you meet the eligibility requirements, you can have these voluntary contributions released, up to a limit, (along with associated earnings) to help you purchase your first home. Taking this into consideration and now knowing that we might start seeing some interest rate reductions coming in the next couple of months, the perfect time to buy your first home is now. Make sure you contact your broker or financial advisor to find out what grants and benefits you can take advantage of. If you have any questions or want to know more about market conditions specific to your desired area, reach out to your trusted Real Estate Agent for more information. Written by Elli Blanco
Feb 23, 2024
Easter Escapes
With Easter just around the corner, it's time to start planning your perfect holiday escape. Whether you're craving a beachside retreat, a cultural adventure, or an outdoor exploration, there's a destination waiting to fulfill your every desire. Here are a few unforgettable places to consider for your Easter holiday getaway: Santorini, Greece: Transport yourself to the stunning shores of Santorini for a Mediterranean holiday like no other. With its iconic white-washed buildings, crystal-clear waters, and breathtaking sunsets, this Greek island paradise offers the perfect blend of relaxation and romance. Kyoto, Japan: Immerse yourself in the rich history and vibrant culture of Kyoto, Japan's ancient capital. From cherry blossom-lined streets to serene temples and traditional tea houses, Kyoto is a feast for the senses and a must-visit destination for any traveler seeking beauty and tranquility. Banff National Park, Canada: For nature enthusiasts and adventure seekers, Banff National Park in the Canadian Rockies is the ultimate playground. Explore towering mountains, turquoise lakes, and vast wilderness areas while hiking, skiing, or simply taking in the breathtaking scenery. Amalfi Coast, Italy: Indulge in la dolce vita along the stunning Amalfi Coast, where charming coastal villages cling to rugged cliffs overlooking the azure waters of the Mediterranean. Enjoy leisurely strolls, delectable cuisine, and breathtaking views at every turn. Maui, Hawaii: Escape to paradise on the island of Maui, where palm-fringed beaches, lush rainforests, and volcanic landscapes await. Whether you're snorkeling with sea turtles, driving the scenic Road to Hana, or watching the sunrise from the summit of Haleakalā, Maui offers endless opportunities for adventure and relaxation. Cape Town, South Africa: Experience the beauty and diversity of Cape Town, where majestic mountains meet pristine beaches and vibrant city life. Explore iconic landmarks like Table Mountain and Robben Island, indulge in world-class cuisine, and embark on unforgettable wildlife safaris in nearby national parks. Queenstown, New Zealand: Thrill-seekers will find their paradise in Queenstown, New Zealand's adventure capital. From bungee jumping and skydiving to jet boating and skiing, Queenstown offers an adrenaline-fueled escape amidst breathtaking alpine scenery. Whichever destination you choose for your Easter holiday getaway, may it be filled with joy, relaxation, and unforgettable memories. Happy travels! P.s. If you take 4 days annual leave 2nd-5th April you can actually get a 10 day break from Friday 29th March to Sunday 7th April!
Nov 17, 2023
A Tale of Two Sales Campaigns
We recently had the privilege of managing the sale of two properties, A and B, both nestled in the same location and bearing striking similarities. However, the variation in their sales campaigns highlights the difference in how strategic decisions can affect the outcome. Property A: A Transformative Journey When the owners of Property A expressed their intention to sell, we embarked on a comprehensive evaluation of its condition. Despite having a renter and furnished lease, the property, dating back to its 2005 origins was in its original state. After careful consideration and consultation, the owner opted to vacate the property. This decision paved the way for a transformative process, including painting, new carpet installation, and strategic staging. The property was then listed on major real estate websites like Domain and REA. The results were impressive - a successful campaign that culminated in a sale above the asking price within just two weeks of launching. The proactive approach to presentation and accessibility proved instrumental in attracting potential buyers. Property B: Lessons Learned On the flip side, Property B, also occupied by a renter, opted to proceed with the sale with the renter still in place. This decision, while financially practical, presents challenges. The renter, though tidy, had configured one bedroom as a home office. Prospective buyers struggled to envision it as a bedroom, often referring to it as a studio. This limitation, connected with access issues, and the actual tenancy length, impacted the property's market appeal. After a period on the market with lukewarm interest, a decision was made to serve the renter a notice to vacate. Subsequent improvements, including painting and carpet replacement, were undertaken to enhance the property's overall presentation. Navigating the Tenancy Dilemma We acknowledge the financial implications of keeping a property empty and understand why some owners opt to sell with a renter in place. However, this decision can present challenges ranging from cleanliness and presentation to access issues. In certain cases, the tenancy agreement itself can shape the success or failure of a sales campaign. Property owners must recognize the potential impact on the sales price, as a poorly presented property may signal desperation, attracting lower-than-desired offers. If you find yourself at the crossroads of deciding whether to sell with or without a renter, consider seeking advice from our team. Our insights will prove invaluable in tailoring a strategy that aligns with your specific circumstances, ensuring a successful and lucrative sale. Written by Elli Blanco
Nov 3, 2023
Have you heard of Passive House?
Australia is witnessing a surge in sustainable construction practices, and leading the charge is C Street Projects with their groundbreaking development, Echo, in Hawthorn. Echo promises not just a modern luxury but also a commitment to a sustainable, energy-efficient future for its residents. At its core is the internationally acclaimed concept of Passive House construction, a game-changer in energy-efficient building. So what is Passive House? Originating in Germany, Passive House construction is gaining global recognition for its energy-saving potential. Now, Australia is embracing this approach, and C Street Projects is at the forefront with their Echo development. Passive Houses set a new standard for Australian construction, showcasing the synergy between luxury living and environmental responsibility. Here are some of the key features: Energy Efficiency: The design significantly reduces energy consumption through insulation, airtight building envelopes, and energy recovery ventilation. Superior Comfort: Residents enjoy consistent indoor comfort year-round with minimised temperature fluctuations and excellent air quality. Sustainability: Eco-friendly materials and energy-efficient systems minimise the project's carbon footprint. Financial Savings: The design leads to cost savings on energy bills, making it an appealing financial choice for residents. As the popularity of Passive House construction grows in Australia, we can expect more projects like Echo to transform our cities. These developments offer both luxurious living and sustainability, improving residents' quality of life and contributing to a greener, more energy-efficient future. If you're curious to experience the Echo project firsthand, don’t hesitate to contact me to arrange a tour and see the future of sustainable living for yourself. Written by Peter Hannon Partner & Auctioneer
Nov 2, 2023
WINNERS ARE GRINNERS
We are thrilled to announce that Caine Real Estate has been honoured as the winner of the Medium Residential Agency of the Year at the Real Estate Institute of Victoria’s (REIV) 2023 Annual Awards for Excellence. The award ceremony took place last night at the Crown Palladium, with a stunning turnout of over 700 attendees from across the industry. An Unforgettable Evening Hosted by the renowned Australian radio announcer and television personality Myf Warhurst, the event was a true celebration of the finest talents and achievements in Victoria’s real estate sector. Jacob Caine, our CEO and the current President of the REIV, had the privilege of giving the opening address and presenting two awards during the evening. Recognition Across the Board Our successes didn't stop there. We are immensely proud that our Operations Manager, Rachel Boggs, was a finalist in the Operational Leadership Award category. Property Manager Ashleigh Sumpter also made waves as a finalist in the Achievement Award category. A Team Effort We want to extend our heartfelt congratulations to every member of our extraordinary team. This recognition is a testament to our collective dedication, hard work, and unwavering commitment to delivering exceptional service to our clients. Looking Forward Winning the Medium Residential Agency of the Year award is an incredible milestone for us, but we're not resting on our laurels. We are committed to continuing our journey towards excellence and innovation in the real estate industry. Thank you to the REIV for this remarkable honour and to all our staff, clients, and partners who make our successes possible. Written by: Toby Campbell Partner & Auctioneer
Sep 25, 2023
Why We Can Expect Slower Rent Growth in 2024
Why We Can Expect Slower Rent Growth in 2024 Rent growth has been on a steady climb for 35 months nationally, reaching an all-time high in July. There has, however, been a noticeable easing in rent increases over the past four months. “Days vacant” and rental enquiry levels have normalised, even decreased in some areas, and application numbers have declined since the July peak. So, what does 2024 hold for the rental market? Three Factors to Watch Interest Rate Changes: Most of the major banks are predicting a decline in the cash rate in 2024. Lower interest rates often stimulate investment in housing, increasing the supply of rental properties and consequently easing rent growth. Slowing Income Growth: Throughout the pandemic, income growth surged due to fiscal stimulus and tight labour market conditions. As income growth slows, renters may reconsider their housing choices, possibly opting for shared accommodations. This could redistribute demand and contribute to slowed rent growth. We are seeing this trend regularly, groups of three, four and five renters applying for properties that have historically rented to couples or colleagues/friends. The same number of renters remain in the market as a segment, however, they’re applying for fewer properties. Rental Affordability: Rent costs have reached an alarming 30.8% of national income as of March 2023. The stretched affordability limits how much further rents can rise before renters make significant changes, like moving to more affordable areas. The Broader Impact Several market indicators point to an impending slowdown in rent growth. Cities like Canberra are already seeing a decline in rents, and other areas like Hobart and Melbourne may soon follow suit. This is further supported by internal migration trends; renters are moving to more affordable areas, thus reducing demand in pricier markets. The Need for Reform While the expected slowdown in rent growth is noteworthy, it's not a cure-all for rental affordability challenges. Ambitious initiatives, like the Federal Government aiming to build 1.2 million homes over the next five years, can go a long way in making rents more manageable. As we’ve discussed in this blog previously - supply is fundamentally the most significant factor in this issue. The Victorian State Government released its “Long-term Housing Plan” this week, which included a raft of initiatives designed to ease the pressures on housing. We welcome many of these proposals - it is, for the most part, a positive and meaningful policy set. That is, however, contingent on the delivery of the promised outcomes. This is a policy area that, at both the Federal and State level, governments have disappointed the Australian people in recent decades Let’s hope this time it is different.