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When a person or an entity decides to buy a property (commercial or residential) there are some important and vital processes and steps that must be gone through. First and foremost, it is important to identify the right right property for purchase. To enable this to happen, buyers could take the help of various sources of information including TV and newspapers advertisements and of course the internet. Many prospective customers are comfortable taking the services of real estate agents when it comes to buying such properties. Once the property has been identified there are other service providers whose role becomes very important.
One such service provider whose role is very important and significant is that of the real estate appraiser or valuer. Unless he comes out with a valuation report, in most of the cases ownership transfer from one entity to another will not happen. This is because a valuation report is often referred to as the property bible and it contains a number of useful and highly relevant information.
Many persons are under the opinion that valuation reports contain only the fair market value of the property. This is only partially true because apart from this figure there are a number of other information that are also provided along with a valuation report. For example, a complete and comprehensive valuation report will contain a lot of subjective information. It will talk about the locality where the property is situated, how well connected it is with the main city or town centre. It will have a look at the infrastructure that is available in terms of transport, water, power, schools, colleges, hospitals, shopping malls, and entertainment facilities.
The valuation report is also important for any prospective buyer because it will also list out the market value of similar properties in the same area. All this and much more will without any doubt go a long way in helping the buyer take a decision that is based on facts and figures that are derived from various angles and various sources.
Those who have bought and sold real estate properties will certainly agree that the role of property valuers is very important and often considered as indispensable. Hence, as a prospective buyer one should have a reasonably good knowledge as to why their role is considered so very important and special.
First and foremost, a property valuer is the main person who helps the buyer to have a clear idea about the actual fair market value of a property that he or she is planning to buy. While the market certainly is a good indicator about the value of a property it cannot be considered as the bible. There could be wrong statements of fact or a sellers' cartel could be behind artificially trying to peg down the value of certain properties. Under such circumstances the buyer is well within his rights to take the help of a registered property valuer.
The property valuer has his own ways and means by which they come out with a valuation report. The market rates are just one input that is used. They also employ other tools and look for other important inputs and sources of information before actually valuing the piece of land, building or apartments. They use difference methods of valuation. While the market usually goes by the cost factor, good valuers often look at the revenues that such properties could generate over a period of time.
They also help the buyers by physically examining the property and also by taking inputs which are mostly subjective from the neighbourhood where the property is situated. This helps the buyers to have a clear idea about the quality of the neighbourhood where they are planning to buy such properties. The infrastructure development and other factors are also taken into account before submitting the valuation reports. Hence, there are a number of angles from which a property is valued. The main objective of any good property valuer is to serve the interests of his client and give an honest and fair assessment of the property that is being planned to be purchased by the buyer.
One of the biggest reasons for the growth in the real estate market is the demand that is originating from the retail segment. More than the commercial property market, it is the domestic real estate market that is driving the growth story as far as this country and it various important cities are concerned. So, if you are keen on investing in this period, the first job that you should do is to identify a good real estate valuer.
A good real estate valuer will certainly be a friend, philosopher and guide for all those retail customers willing to put in money in the real estate market. Apart from helping you to have a fix on the actual value of a property, they will also help you to scan the horizon from the medium and long term perspective. This is very important because even from an investment perspective, it is unlikely that you will make money in the short term by investing in lands, buildings and apartments. You have to learn to play the waiting game because that is what real estate investment is all about.
Where should I invest, how much should I invest and what is the amount that I should invest in real estate markets? These are some common questions that are best answered by the reports that valuation professionals offer you. It is not a simple report which talks about some figures. There is also a lot of subjective information that is available from a valuers report. He talks about the growth story in the neighbourhood, the amenities and facilities that are available as far as the customers are concerned.
Taking these above facts into account, there is little doubt that valuing a property thoroughly is the most important aspect for deciding whether to stay invested in the Australian real estate markets.
There are a number of reasons why it makes sense to take the opinion from a property valuer even though the real estate market might be on an upswing right now. When an expert opinion about the value of the property is taken from a valuer it helps in more ways than one. It plays a big role in reasonably estimating how the value of the property is likely to move over the short term, medium term and long term. It will also be useful in understanding the market sentiments better apart from getting to know how the other properties in the same neighborhood are priced.
This is because good and reputed property valuers do not merely go by the market price alone. They use a number of other tools and methods before coming out with the valuation report. For example, there are many valuers who use the revenue model when they are valuing a property. Through this method, they plot the expected revenues that could be generated either by renting or leasing the property or by savings effected by way of rent. This when plotted over a period of time would lead to an estimated value of the property over a period of time.
There are other valuers who would like to take the present market cost of the property and use it as a yardstick to find out how the property will be in terms of cost over a period of time. They will use several time-tested methods and tools to work out the cost of the property for a number of years. This will also help potential buyers to find out whether the time is ripe to get into the market or should they wait for the situation to improve further. Hence, given the above facts, there is every reason to believe that going by market sentiments alone when purchasing a property may not be the best way forward. One has to be factor other happenings too and this can be best understood by experienced and qualified real estate valuers and appraisers. As a customer you should identify a good valuer and leave the rest to him to ensure that you get good returns on your real estate buying.
While it has been proven beyond doubt that real estate agency business can help a person to become wealthy, the success ratios is quite low. Many people therefore are under the impression that real estate agency business is only for the very few privileged, lucky or fortunate. They also start blaming their luck and fate when they fail to achieved the desired levels of success. Success in many business requires hard work and learning to get up from failures and start moving forward again. The same applies to real estate agency business also. If one looks at the success stories of many achievers in the real estate agency business, you certainly would come across a number of stories of struggles, setbacks and moments of depression or even despondency.
Successful real estate agents are those who go beyond the normal call of duty to achieve high levels of success. They are always on the lookout for ways and means by which they can add value to their customers. When looking for such out of the box ideas, it would be pertinent to mention here that clubbing real estate and property valuation with real estate agency could yield very good results This is because whenever a customer approaches a real estate agent for buying or selling a property he would certainly need the services of a good and qualified real estate valuers or valuation company Melbourne. Instead of going out in search of these service providers, the customer would be more than happy to get the valuation done by the real estate himself provided he has the right credentials and experience in the subject matter.
However, for becoming a successful real estate agent plus valuer, it is important for such persons to qualify both as an agent and a real estate valuer. There are some combined courses which leads to an examination covering both the aspects of real estate business. If both the exams are cleared, the real estate agent would well and truly be able to handle both the jobs successfully. Apart from being convenient for the customer, the real estate agent would also be in a position to rope in new customers by offering such value additions.
The biggest myth that people have about real estate agents is that they never keep their time as far as appointments are concerned. While this might be true for a few agents, a majority of them who are serious about their business always value customer’s time and also their time. Hence, painting all the real estate agents with the same brush would not be the right thing to do.
Another common with that most of us have about real estate agents is that they are there to make a fast buck out of you. This may be right with some real estate agents. Yes, it is a fact that many real estate brokers are keen on just making a customer buy a property under any cost. However, this kind of approach is very short sighted and any professional real estate agent who has been in the business for many years would never take this route. They would rather be willing to play the waiting game. They know that real estate business is a long term game and short cuts basically can cut short their business within a very short period of time. Further, one should not forget that the real estate agents on many occasions double up as property valuers and the kind of help and assistance that they offer in this field is qutie immense.
There is another common myth is that real estate agents have all the wrong connections with property builders, government inspectors and other law enforcing agencies. While this might have been the case with a very few agents, it would not be right to say that all real estate agents could be in the same league. However it is a known fact that many successful and ethical real estate agents have good relationships with all stake holders in the real estate business and at times this relationship could be wrongly construed by opinion seekers and uninformed persons.
Lastly there is another wrong belief that real estate agents will not show you the best properties which they keep reserved for making a big kill at a future point in time. This again is a fallacious piece of information not based on facts but based on hearsay and opinions. At the end of the day, it is logical that sooner the real estate agent is able to complete a deal, the richer he becomes. Hence, in fine, while it may not be right to laugh away all such myths about real estate agents, they certainly need to be taken in with a pinch of salt.
The basic premise on which tenants are protected is without the all important Residential Tenancy Act. As per this act (which is separate in different parts of the country) the tenants and the landlords are free to decide on the rent that they decide to pay or receive. However, when it comes to reviewing or increasing the rent, there is Tribunal which if authorized to play a mediator's role as far as re-fixing the rents are concerned. Here again, it has to be borne in mind that there is no obligation on the part of the landlord or tenant to take the help of this Tribunal whenever rents are re-fixed. They come into the picture only when there is a dispute between the concerned parties.
However as far as Tasmania is concerned, the re-fixing of rents is decided by the respective Magistrates and not by the Tribunal as is prevalent in other states of Australia. Whenever there is a dispute in the re-fixing of rents, the tenant is free to approach either the Tribunal or the Magistrate by making a written representation. The Tribunal and Magistrate based on such written requests will conduct a study of the current rent being paid and what is proposed by the landlord. They will take into account the rents being charged in the neighborhood and then come out with a figure which then becomes binding both on the landlord and the tenant.
In most of the cases, the rent cannot be increased more than once a year though some very special exceptions are available. The notice period for vacating or renewing agreements varies from state to state. It could be anything between a few weeks to a month. Last but not the least, deposit is something that is also controlled by the local rental and real estate laws. This again varies from place to place and could be anywhere between 2 weeks to 4 weeks depending on the state.
If one goes by the latest real estate figures there is no denying the fact that the overall real estate prices in Australia especially in the main cities of the country have been showing a steady increase when the total year is taken into consideration. There could have been a few aberrations but for which it has been moving in the northward direction. While this may be good news for real estate promoters, builders and real estate agents, it is no very sure whether it really means good for the thousands of small retail home buyers and sellers. When these large sections of the real estate market are kept out of the growth story, it is likely that it may not augur very well for the overall growth and well being of the real estate industry. To correct this situation a number of actions may need to be taken.
First and foremost, it is important to ensure that the growth in the real estate is more uniform and across the board instead of being driven only by a few rich and wealthy individuals and conglomerates. This can be done by a number of ways and means. The small retail real estate customer should be offered some incentives which will make him feel that it makes to sense to buy homes. The returns should be good over a period of time and the onus is on the government to take steps to assure this.
Rental occupancy levels also needs to go up especially in big cities if the growth story in the real estate market is to continue. This can happen only when there is some meaning for the tenants to occupy the number of vacant houses. It also boils down to better livelihood opportunities for such persons. This is not something that is going to happen overnight. It is bound to take time and effort and calls for concerted efforts over a period of time. While there is nothing wrong in giving special incentives to foreign property buyers, it is doubtful whether this step alone will play a contributory role in helping the real estate growth over the past few months and perhaps even years.
There have been scores of customers who even in 2013 have invested quite heavily in real estate purchases in and around the major cities of Australia. The tendency however has been to invest in individual homes outside the main cities instead of going in for apartments in the thick of urban cities of Australia. The main reason for this is perhaps the quality of life that one gets from the suburban areas of the main cities and towns. While this may not be exactly to the liking of young children, parents find it a good move from various points of view.
However, the question is who are these buyers and how they are able to spend thousands of dollars when the other economic indicators do not in any ways subscribe to such high cost real estate purchases? The answer could lie elsewhere but not inside the country. Given the relaxed real estate buying and selling norms for foreigners, it is being noticed that most of the buyers are from countries outside Australia. Almost all of them are extremely rich business tycoons who are finding out ways and means to park their excess money. For such people these suburban properties in and around the big cities of Australia provides a perfect opportunity. Nonetheless, it would also be right to mention here that there are a few local buyers too who have stayed invested in such costly but highly potential real estate properties. These locale use services of someone like certified property valuers in Sydney, NSW to get best deals out of nowhere.
But when one looks at the ordinary Australian times certainly have been tough for him. Buying a property is becoming almost a pipe-dream given the astronomical prices at which they are being sold. What was reasonably affordable even a few years ago has now gone out of the roof. The reason for such high increases according to experts is pure and simple speculation and there are no strong fundamentals to it. Such growth in property prices that are driven merely by speculations is not bound to last long. So there is lot of substance in what people predict as far as the real estate prices in Australia are concerned. Unless the growth of the real estate is driven by strong fundamentals it is something that will hit a roadblock in a none too distant future.
There is no doubt that when one looks back at the real estate business in Australia, quite a few stunning stories of success are there for all to see. This has certainly motivated many budding real estate players to enter into the market. The moot question that is being asked by many of us is whether there is space for so many new players in the real estate market or most of them are headed for failure. Let us try and find the answers for the same over the next few lines.
First and foremost, irrespective of the state of the market, one has to understand that real estate agent's business is not easy and it takes time and lot of effort to succeed. Patience and perseverance is the name of the game and only those who are ready for the long haul are likely to succeed in this business. This having been said, there is no doubt that given the growth story of real estate market in our country over the past two three years, there are a number of reasons to believe that there will more number of buyers and sellers entering into the market.
While some could be repeat buyers and sellers, there could be a number of new buyers too who would like to test the water in the real estate market. Hence, there is nothing wrong for even new players to enter into the market. But the learning curve could be long and gradual and hence real estate agents must be prepared to play and wait and watch game.
It is also very important for budding real estate agents to have a thorough knowledge of the local and also national market. The events taking place in the international market could also impact the real estate market in your neighborhood. Hence it is expected that as a budding real estate agent, you are always in touch with the latest sources of information. Being in touch with the internet is something that should be practiced on a daily basis. Further, networking with people and having an ear to the ground is also very important for real estate to succeed both in the medium term and long term.