For the majority of home owners or investors the days of 100% borrowings to purchase property are over. In fact they were never really there in the first place for investors just a select few home buyers with really strong incomes who worked in professions that the banks regarded as unemployment proof. I think we all now know that is not the case...

This reminded me of the increasing number of people I meet, particularly since the GFC, who are trying to play catch-up. Many have been burnt by the stock market however the majority have either ignored the idea of saving or have simply taken the ‘she’ll be right’ attitude to money for too long. Instead of setting a measured amount of savings aside each month for the last 20 years, they now find themselves in their late forties or early fifties and realise that they have 10 – 15 years left to achieve what they want financially in the time that really takes 20 – 30 years...

While the properties that were discussed in the article were at the upper end of the market, having 170 properties with a valuation discrepancy of more than $5 million is extraordinary particularly when these valuations were based on the un-improved land value alone. Imagine how far out they would have been if they took into consideration the homes on the land as well?..

Sales agents know they shouldn’t do this and that they are setting themselves up for quite a bit of work in regards to a price education process with the vendor, starting the week after the property goes on the market. They do it anyway because they know most (not all) vendors have an over inflated expectation of their own home’s value or are greedy and telling them a figure they want to hear increases their chances of getting the listing over a sales agent that will tell them the truth...

To listen to the full interview click here. (It’s a large audio file so it may take a minute to download to enable you to listen to it).

A recent article I was reading by Mortgage Choice provided tips on how to pay off your mortgage sooner. It included a range of important information from budget setting to reviewing your home loan. One example explained that by reducing your weekday coffee spend from $4 a day to $4 every second day adds up to a saving of $40 a month… and if you put that saving onto your mortgage you could take 2 years off your loan and $31,000 off your interest bill*...

Click here to listen.

Click here to listen

If you’re going to renovate then the first decision to be made is if you are going to manage this process yourself or engage a project manager. If you decide to go it alone rather than hiring an experienced project manager then you need to make sure you’re prepared. Here are a few tips to make sure you start the project with a realistic outlook…

But the big thing that stood out to me was that after all their hard work the post renovation valuations barely increased relative to the work that was done and once you factor in the cost of labour and materials they lost money. This is a great example of how easy it is to overcapitalise even when you’re supposed to know what you’re doing. Renovating is not just about making the property look good it’s about adding significant value to the bottom line or, I have to say, why bother?...

Buyers agents tell us that they are getting enquiries from buyers motivated by the recent spate of TV Renovation Shows. Unfortunately they have an unrealistic view about renovating and making a profit. We get a good grounded view from two buyers agents who tell it as it is. Click here to listen to interview or read the transcript below.

Full transcript:

Kevin Turner: You’ve heard us in the show talk about Buyers Agents from time to time. There’s a buyer’s agent in Sydney by the name of Patrick Bright who is a good friend of mine, we’ve had him on the show a number of times he’s written many, many books and is very knowledgeable about the market.  His company is EPS Property Search and I was taken by a comment he made the other day about shows on television may be misleading people about the cost of renovations.  He joins me...

Renovating residential investment property is a great way of building wealth quickly. It’s a relatively low risk strategy if executed correctly and will allow you to manufacture capital value and increase rental returns without relying solely on market conditions.

Back in 1999 a friend of mine wanted to sell a house his parents left him when they passed away. Since he knew that I knew a bit about real estate he asked for my help. The house had been neglected for 18 months and was in very poor condition. A few local real estate agents gave him valuations between $320,000 and $340,000...

Make no mistake, the majority of people with a property currently on the market have a strong desire to sell their property by Christmas. With less than a month to go it’s very likely they are of the mindset to accept a little less and in some cases a lot less then they may have a few weeks ago just so they have closure going into the new year - particularly if they have purchased elsewhere already...

You don’t have to be a rocket scientist to understand that relaxing the FIRB laws was always going to increase demand and apply pressure on prices to rise for the limited stock that is available already. After realising the consequences of its decision the Federal Government has announced more changes – some reverting back to the previous policy position while others are new...

With just over seven weeks to go until the deadline, first home buyers are likely to come out of the woodwork as they try to beat the cut-off and save a little cash. Investors would be wise to tread cautiously in this climate to ensure they don’t get caught up in an emotional bidding war...