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Thriving Australian Dream

Owning our own slice of the sunburnt country has traditionally been the Great Australia Dream. Whether it was a Holden Ute in the driveway or ice block smeared children around a pool, the Australian family has always been on the look out for the dream property to accommodate their 'needs'.

As Australian Dreamers revel in the juggle of careers, designer clothing and effervescent social lives, however, the traditional 'needs' are changing, with 'Low maintenance' taking over as the keyword of the future. Despite this change, several aspects remain the same and permeate our decision making. The security of owning our own land/house and living comfortably in retirement is still prevalent in our mind set, with the two being connected.

Recent changes in domestic and world economies have caused speculative commotion about prices of shares, stocks and property. With every commentator stating something slightly different from the next, the investor is left to his own devices to decipher and act on opportunities in the market.

The recent interest rate hikes and expectations of a further increase before December threaten to frighten some dreaming Aussies away from buying property. The dread of being incapable of repaying a depreciating property turning the Australian Dream into an idle and distant hope.

But have faith, budding property investors and dreamers! There is a property out there for every need, taste and budget! The key to finding a dream-fulfilling property at a fair price comes down to focus and perseverance according to John Roper of Australia Pacific Property Consultancy Services. John’s advice to potential home buyers is to concentrate on one particular geographical area of interest and limit research to that area.

"It's understandable that investors are anxious to find a good deal and therefore exert considerable time and energy on exploring various localities simultaneously. This results in the investors spreading themselves too thin and obtaining only a shallow understanding of each locale" says John.

There is no set recipe that one can follow in finding a realistic dream property, however there are a few simple steps that can be undertaken to ensure that we give ourselves the best chance of not missing a worthy deal when it arises, these are:-

1. Choose an area and create a niche
2. Talk to the Real Estate Agents from that area
3. Go to auctions in the area
4. Observe sales and construct sales schedules

Another tip given by John, is that once you have found that dream worthy castle, there are several aspects of the property that you should investigate prior to agreeing on a price.

The value of the property or its ability to fulfil your needs will be undoubtedly influenced by whether it is affected by any of the following factors:-

1. Caveats
2. Covenants
3. Easements
4. Heritage Listing
5. DCP and LEP restrictions

An Easement, for example, may prevent the building of additional structures on the property, whilst a heritage listing limits the extent to which a property can be developed, renovated or extended upon. These aspects of the property can only be discovered by doing title searches and referring to council documentation. Alternatively, a professional valuation of the potential property will highlight and explain any encumbrances on the property, as well as provide a succinct description of the value generating aspects of the property.

To avoid morphing your property dream into a nightmare, do your research and seek advice, as there are as many opportunities as pitfalls in the wider property market.
To find out more about property related encumbrances and restrictions or property valuation, contact John Roper from Australia Pacific on (02) 9223 9377.