Best Computer Software to Help Plan Your Retirement
Although many people realise and appreciate the value of planning for their retirement, few feel that they have the time and tools required to do so effectively. While many soon-to-be retirees have definitely worked hard throughout their working life, spent prudently, acquired investment properties and made voluntary contributions to top up their superannuation, less of these people immediately recognise the benefits that certain types of computer software can facilitate when it comes to planning retirement.
Will Tightening Money Markets Affect Your Borrowing Capacity?
For those people thinking of purchasing a property — be it an owner-occupied home or investment property — awareness of banks more prudently issuing home loans has created quite a lot of concern and apprehension. Following global financial trends and problems, Australian banks have become more strict and careful in providing loans, and because key consumer items, such as food, electricity and petrol have increased in price, banks are all the more aware of the escalated risk of consumers failing to make loan repayments.
What is the situation?
For some time, the big four banks in Australia were seen to have relaxed or softened conditions pertaining to various loan products as a result of being eager to secure home loan customers. Competition amongst loan providers was fierce and, as an outcome, many customers were approved for loans.
Managing an Ever Increasing Property Portfolio
When you own one or more investment properties, it is important to effectively manage your property portfolio and ensure the protection of your assets for the future. If a property portfolio is to be successfully managed, time and expertise are essential, as is a complete understanding of the types of tasks that need to be done.
Tasks involved in managing a portfolio of properties
Property investment is seen as a good, long-term way to enhance your financial position, but in order for your investment properties to enhance — rather than detract — from your financial position, careful and thorough management is required. Typical property management tasks include:
What to Look for When Buying a Property to Develop
The idea of property development can be exciting in itself. The thought of taking a property that is run down and dilapidated and changing it into something amazing seems fun and profitable, but those with experience know there is much more to successful property investment and property development.
Although you may not have a huge amount of experience, there are a number of things that every aspiring or actual property developer should look for and do. These include:
1: Researching the market
It can be a very good idea to establish contacts with real estate agents in the local area. By talking to them it is possible to gather local knowledge and insight into the types of properties and features that appeal to buyers, no matter whether you are looking for an investment property or a property in which to live.
How to Save Time Searching for Properties Using Technology
Most people are aware that the Internet and other technologies can offer great assistance when it comes to searching for properties. By taking full advantage of the capabilities of different searching technologies, buyers are better able to find properties that match their needs — no matter whether they are looking for a home in which to live, a property investment, or even a home or holiday house to rent.
How popular is the web for property searches?
In the United Kingdom, a reported 80 per cent of people searching for a property use the Internet as the starting point for their search; it can fairly safely be assumed that a similar percentage of buyers would also do so in Australia. In the UK, it is also estimated that approximately one per cent of all Internet traffic is related to property. Most of this traffic is the result of people hunting for a property, completing property searches using various portals and contacting real estate agents.
The Changing Nature of Retirement Destinations
In recent years, the retirement destinations most favoured in Australia have changed quite significantly. Whereas certain parts of Australia have long been acknowledged as dominant ‘retirement hotspots’, changes in society, the great appeal of natural and other amenities, and overall changes in the population have resulted in a spread and diversification of popular retirement destinations.
Historically popular retirement destinations
For many years, coastal resorts in northern New South Wales and Queensland have enjoyed incredible popularity as favoured retirement destinations of Australians and people from other parts of the world. Many features of these areas can be attributed to their popularity, including the value of securing property investments, the climate and weather, the services and activities on offer and, of course, their superb location and proximity to the beach.
Calculating Your Borrowing Power and Ability to Repay
When a person is interested in purchasing an investment property or expanding their property portfolio, having an accurate picture of their borrowing power and ability to make mortgage repayments is critical. This information will not only be relevant to the person, but it will also be sought by banks and other mortgage providers who have the responsibility of encouraging responsible lending.
It is no secret that since the Global Financial Crisis, banks and mortgage providers have become more stringent with their lending criteria. This has and continues to prove frustrating for those who find it difficult to source the finance necessary for property investment purchases. However, since the mid-Nineties, Australian mortgage providers have had to adhere to guidelines including the ‘Ability to Pay Test’, more commonly termed ‘serviceability’ — basically, a test that ascertains if a borrower can afford to repay a debt.
Keeping Track of Your Property Portfolio Value
While accruing more investment properties may be a positive step and an indicator of an increasingly healthy financial position, it is often the case that keeping track of the value of your property portfolio becomes all the more complex. In light of this, it can be wise and effective to invest in the tools and support necessary to effectively keep track of your property investments.
How can an investor effectively monitor and track their property portfolio?
An almost universal challenge for those who invest in real estate is that the greater the amount of property they buy, the more time, effort and yes, money, that needs to be devoted to monitoring, managing and optimising their portfolio in a successful manner.
Long Term Tenants or Higher Rents?
Every person with a property investment naturally wants their property to be as lucrative and profitable as possible. This means that the greater the rental income that can be achieved, the better. However, there is also great value in having long-term tenants reside in rental properties. When reliable, secure tenants take long-term leases, and landlords have the assurance of knowing they will be spared the inconvenience and cost of having their property untenanted for a period of time.
How to attract high quality tenants and good rental yield
After acquiring an investment property, landlords need to be proactive and vigilant to ensure they attract the best quality of tenant possible (and amongst other things, this means tenants that stay long term) and high rental income. Particularly when economic and other conditions are favourable for home buyers, landlords need to do all they can to ensure their rental properties appeal to tenants, and this appeal can include the rental price charged and features of the property.
Real Estate Institute of Australia Calls for Increased Housing Supply
The National Housing Supply Council’s State of Supply Report 2011 examined an issue so concerning it prompted the Real Estate Institute of Australia (REIA) to call for action on issues pertaining to housing supply in this country. Essentially, this report considered the incredible demand but significant shortfall in housing in Australia and the fact that the severity of the situation is escalating.
Why is there a lack of housing supply in Australia?
There are a number of constraints that have had and continue to have a negative impact on housing supply in this country. The constraints are widely known and include, but are not limited to:
