No matter how many updates you do to the interior of your home to improve its value, they will one day fall out of repair. With kids, animals, and the bash and crash of everyday life, the wear and tear is significant. 

But by investing in the outdoors, you can make an immediate impact and create an atmosphere that will continue to thrive for years. That’s creating value that keeps growing and most buyers will appreciate it.

When people see a nicely maintained garden ready and waiting for them, they may feel more eager to move in and pay more for the convenience. Who wants to pay money for a neglected patch of dirt and weeds and then have to tackle it soon after moving in?

People get a homey sense of ‘welcome’ when a new property looks inviting and prepared. An unkempt lawn or garden, however, can lower the value of your home drastically.

Giving your property a little TLC and sprucing it up with some landscaping is a wise investment that can increase your property’s value and boost your chances of selling.

But some prospective buyers may actually be turned away by a fancy-looking garden. Not everyone has the kind of time or knowledge it takes to maintain an extensive spread of trees and flowers. They probably won’t want to inherit the responsibility of keeping up with high-maintenance landscaping by purchasing your home.

Healthy-looking greenery is important and a few decorative plantings of flowers for a pop of colour are also a good idea. But you want the potential buyer to imagine him or herself living there and creating the home of their dreams. Too much landscaping can distract and, unfortunately, prevent some people from doing just that.

There’s no need to go overboard and break the bank with your landscaping. For the purpose of making your home more attractive for sale, aim for a clean but blank canvas.

Which changes you make to your landscaping will depend a lot on the size and character of your property and the demographic you want to sell to.

For example, a large backyard securely fenced in on all sides would be perfect for a family with young children. Retirees may enjoy a small yet attractive collection of plantings around a solid and safe deck that’s easy to access right outside the back door.

You should consult a landscaping expert to find out which upgrades will suit your home’s layout the best.

A few universally-appreciated features include:

– A well-built shed for storing gardening and sports equipment

– Good quality paving on driveways and walkways

– Sufficient outdoor lighting

– Fresh lawn, especially in front of the house

Here are a few small things you can do to get started on boosting the aesthetics of your home before showing it to a prospective buyer:

– Tidy up. A clean and clutter-free yard is the most attractive

– Thoroughly remove weeds

– Make sure the driveway and walkways are clear and tidy

– Do minor necessary repairs to any outbuildings or garden fixtures

– Mow the grass

The first step in the sales process is to get your finance sorted! Emnon will help you secure the best possible loan deal and handle the process from start to finish. Contact us for a free no obligations chat about your situation.

Dom Cassisi, Managing Director

Driveway

This may seem like such an obvious feature, but details such as a driveway are often not included in the build itself. If you want a driveway, that will probably cost you extra. Otherwise, you’ll just have to do without one until you can afford it after the house is built.

Flooring

Your new home will automatically have concrete floors, but there’s no guarantee you’ll have them finished the way you want. Talk with your builder for a quote on the flooring finish you would like.

Making Changes Along the Way

Changing your mind part-way through the project will cost you a pretty penny. Your quote and contract are based on a specific calculation of the cost and labour required to build your house. Any modifications will result in changes to those expenses, as well.

Legal and Other Fees

Taxes, local building regulations, Lender’s Mortgage Insurance, interest repayments, stamp duty, conveyancer fees and more are all in addition to the cost to build a house. Of course, a good mortgage broker will help you work through this.

Soil and Contour Tests

These two tests are to evaluate the quality of your land before planning to build the house. It costs money to have the surveys conducted and the cost of building your home may also go up if the land is difficult to work with (i.e., very rocky, steep slopes etc.).

Site Costs

You can’t forget about the cost to connect utilities such as gas, water, electricity and a sewer system to your home. You may have other site costs if there are trees to be removed from your property or a retaining well is needed. Building in an area prone to bushfires or flooding can incur other costs for properly preparing the site.

Fluctuating Quote Amounts

You may try to get quotes from more than one builder before deciding who to select for building your home. If you’re sitting on a quote while waiting to find a better deal, keep in mind that the price probably won’t stay the same.

A quote may have a limit of how long it’s good for, like a month or 45 days. After that, it will need to be re-quoted due to changes in the cost of building materials. Stay alert for any potential changes in your quoted price before you sign the contract.

Prime Costs

There are some projects for which the final cost can’t be accurately estimated. You may be required to pay out an extra allowance for a job, just in case. If it’s not done or is completed under budget, you’ll get the funds credited back to you.

However, the opposite is also possible. You may wind up having to pay out a little more over the course of the project to get something done, such as the benchtop finish.

Talk It Out

At the end of the day, clear communication with your builder will likely make the biggest difference. You want to know exactly which services and features are included in the quoted price and which you should expect to pay extra for.

Sit down with your builder to review a list of absolutely everything you’d like to have done. Find out right from the start how much the extra services will cost so that you can avoid any unpleasant hidden fees.

Good organisation, careful planning and clear communication will help you get your house built while sticking to your budget.

Getting the right loan is absolutely crucial. Emnon will find you the best possible deal, and handle the process from start to finish. Contact us for a no obligations discussion about your building plans.

Dom Cassisi, Managing Director

One of the most important things to do before downsizing is make sure you’re emotionally and mentally prepared.

You may be ready to downsize if:

– You’re comfortable leaving the home that has years of memories attached to it

– You’re tired out from trying to clean and maintain a large house

– You’re on the brink of retirement

– All of your children have left home

– You are using less of the existing space, furniture, clothes and appliances you own

Next, you need to evaluate whether you are financially ready to downsize.

Downsizing isn’t always about going cheap. ‘Smaller’ may not equal less money. There is usually still considerable expense associated with selling your current property and buying and moving into a newer, even if smaller, one.

Take some time to sit down and carefully figure out what you can afford. Don’t just look at the upfront cost of moving into a new house or apartment – you also need to consider the running costs of living long-term in your new place.

How will your retirement nest egg be affected by living in a high-maintenance apartment? Will you need to buy any new appliances or furniture to fit the new place? Could your health later require you to purchase any special equipment to get around your new home comfortably?

Give a lot of thought to such questions to determine your readiness to downsize.

Now that you’re ready to begin downsizing, you should start by first downsizing what you already have in your home. This will give you an idea of what kind of new place to search for.

Pack up surplus clothing, books, movies, kitchen utensils, appliances and so on. Leave them in easy-to-access boxes in your current home. See how often you need to retrieve something from the boxes over the course of a couple months. If you end up not touching one of the boxes at all, then that’s likely stuff you can easily part with.

Practice living in less space by locking up spare bedrooms and lounges for a week or two at a time. If you’re comfortable and content living in the reduced space, then you’ll know that you can do with less rooms in your new apartment or home.

Measure the furniture you currently have so that you can figure out what can come with you when you go and what will have to be sold.

Advertise a sale right out of your garage or yard, or sell your stuff on Gumtree, to get rid of items that you won’t need in your new home. Don’t expect to get much for them, but the extra cash will come in handy.

Scope out the surroundings of a potential new living space. You have to love the environment as much as you love the residence. Is it important to be closer to fine dining, entertainment, hospitals, public transportation and other facilities? Or do you want a place that’s quiet and set far away from busy town living? Get to know the surrounding area before you decide to downsize and move there.

Most importantly, start your downsizing process early. You may even want to start simplifying your life long before you even have concrete plans to downsize. This will help make the process go smoothly and feel less overwhelming.

When downsizing, it’s important to get your finance right. Emnon will help you secure the best possible loan deal. Contact us for a free, no obligations chat about your situation.

Read Part 1: Should I downsize? The pros and cons

– Dom Cassisi, Managing Director

Pros:

– There is less to maintain in a smaller space

– A smaller space should mean there are fewer items in the home to maintain

– You’ll save the time and money you would have spent maintaining a larger place

Cons:

– Not all smaller spaces are cheap to maintain. Some apartments come with expensive required maintenance

– You may be losing a favourite hobby, such as gardening, if you downsize and give up all that yard space

– By renting a smaller space, you’ll forfeit some control over the condition and appearance of the property

Pros:

– For those looking for an exciting lifestyle change, typically downsizing puts you into a more cosmopolitan environment where you’d likely be surrounded by more people and greater opportunity for social activities

– Downsizing could put you closer to important facilities like hospitals and grocery stores

Cons:

– Downsizing to a smaller area could land you in a highly developed space with little privacy

– It may hit you a little too late that you don’t enjoy the surrounding environment as much as you thought you would

– You’ll have to get familiar with a new area including local public transportation and places to shop and do business

Pros:

– With less space comes less to maintenance costs

– Spend less on utilities such as heating, cooling, power and water in a smaller residence

– The money you save by downsizing can be invested in things like shares, super or another property

– You may be able to sell items (like a lawnmower, televisions etc.) that won’t be needed

Cons:

– Selling your current home to buy a new one will incur plenty of legal and government fees, not just the buy and sell price

– Other ‘smaller’ costs add up – removalists, minor renovations/fit out requirements, furniture and decor updates etc.

– Purchasing an apartment may come with a required maintenance criteria, compelling you to spend more than you would if maintaining your own home

– Even if you expect lower maintenance costs, you’ll have higher upfront costs just to get resettled in a new area

Pros:

– Downsizing may provide the opportunity to move closer to family, enabling the family to spend more time together and much greater convenience

– Downsizing can free up finances to support other family members with school/university fees, a first home or other need

Cons:

– Relocating could put you further away from the family and friends you now spend the most time with

– Living in a smaller place may make maintaining relationships with other family members in the home more challenging

– Not everyone in your household may be onboard with the plan to downsize

– Lack of entertaining space

– You may regret leaving your current home if it’s filled with happy memories

It’s clear that there’s no black-and-white answer. It will be entirely up to you to weigh the pros and cons and determine what’s important to you.

Something one person may feel is a benefit of downsizing may not sound good to you, and another feature others believe is a negative might actually be a plus for you.

As we’ve mentioned, it’s a big financial decision. Weigh up your financial situation with the experienced team at Emnon, who can help you get the best possible loan deal. Contact us for a free no obligations chat.

How do you know if you’re ready to downsize? And where do you start? Read Part 2.

– Dom Cassisi, Managing Director

It’s important to think about the season in which you’ll sell your home or property. Some property experts claim that spring is the best time to sell. While your home may have a lot of fresh appeal to everyone who’s out and about after a long winter, spring isn’t always the hottest time to sell.

The autumn months actually tend to be the most popular for buying a home. This may have something to do with the fact that people spend the summer planning, perhaps making and kicking off New Year’s resolutions, and by autumn they’re ready to go.

You may have an advantage by selling in a less popular season like winter, however. There will be fewer sellers putting homes on the market so your property will have less competition. Those who are home-shopping in the winter are more likely to spot your property.

Whichever season you sell in, the important thing is to enhance and market your home accordingly.

What is the temperature and weather like? What events will be going on?

Decorate your home with colours to complement the season. Use cooler tones in hot months and warmer ones in cold months. Heat or cool your property so that it’s comfortable on days when prospective buyers come to visit.

Have some professional photos taken of your home with plenty of natural lighting. Market your home attractively so that it has appeal no matter the season. Your real estate agent should provide a lot of support and advice about this.

Above all, ensure that your home and surrounding grounds are clean, tidy and up-to-date with repairs.

A lot depends on your individual circumstances. You should feel neither rushed to sell right now nor pressured to put off the sale just because of the season.

The best time to sell your home is when you can be prepared to do so. Marketing a property takes some time and effort. If you’re busy switching jobs or with some other major event, then selling your home may only add to your stress.

Make a decision about when to sell that’s in line with your financial and emotional health. If necessary, consider renting for a while until you are definitely ready to sell.

Remember to consider where your property is located. If you’re right on the coast with great views of the beach, then you might do well marketing your property during summer when everyone is dreaming of their beachside home.

Is your house warm? Well-lit with lots of windows? Cool and breezy? Think about which time of year will highlight your home’s strong points.

Some people underestimate the impact of finance on the timing of buying and selling property, as well as the time it can take to deal with the banks.

If you’re going it alone, you’ll need to monitor the loan market to determine the best time sell, buy and potentially review your own mortgage to understand whether you’re getting the best possible deal.

Then there’s the back and forth with the bank, and the extensive paperwork.

Of course, mortgage brokers like Emnon handle this process for you (and no cost to you).

When should you sell your home? The bottom line is it depends on a range of factors.

The best time for you to sell depends primarily upon your personal circumstances. Next, there are steps you can take to boost your chances of selling your home anytime you decide to market it.

Getting the best possible finance and mortgage deal is one of the most important steps in the process. With no out of pocket cost to you, Emnon takes the stress of organising your loan out of your hands and ensures you get the best possible deal for your needs.

Contact us for a no obligations discussion about your needs.

– Dom Cassisi, Managing Director

Are you starting from the ground up? 

It’s easy to pass on purchasing an ‘eyesore’ of a property. But do try to look beyond any cosmetic flaws and easy repairs to see the true potential in a property. The better the deal, the more potential there is for seeing a large return.

Before you jump on that ideal property, you need to have a decent understanding of the local market. If you’re looking to sell after renovating, who in the market is likely to buy? If you want to rent it out, make sure that there is a high demand for rental properties in the area.

If the market for a property you already own isn’t doing much, then now may not be the best time to renovate.

It’s disappointing, to put it mildly, to have your renovation plans halted midway because of a regulation violation. Make sure you know exactly what is and isn’t allowed before you start demolishing or extending anything on the property. Of course, you also don’t want to put yourself at personal risk.

Get to know what sort of people will be shopping in the market that includes your property. Families, university students, and older people all have very different needs. Keep these needs in mind when determining what changes you make to the property.

Seniors, for example, may prefer a very simple and compact layout while large families want lots of space with multiple bedrooms and bathrooms.

Not everyone will feel the same way about the colour scheme you love!

Stick to very clean and neutral yet warm tones when painting. Allow for lots of natural light. Opt for polished wood floors over ornate carpets. Keep the grounds simply and neatly maintained.

This will help potential renters or buyers to see the property’s true character and appeal without being turned off by decoration they may find distasteful.

Always look for ways to improve and enhance without breaking your budget. Can you transform an existing laundry into a bathroom? Change out a window for another door? Put up an extra wall to divide one large bedroom into two? Try to anticipate features that will make the property more convenient and safe for potential renters and then make changes accordingly.

Having a budget is absolutely critical when it comes to renovating. Even when you think you have plenty of funds, you’d be unpleasantly surprised at how many unexpected costs pop up. Maintain a tight budget with the goal of eventually seeing a return of twice or even three times as much as you spent.

Set aside a budget of emergency funds for some of those unplanned issues that arise.

Talk with those in the area who have recently completed a renovation of their own. Get suggestions for reliable tradesmen and features that increase property value in the current market. Ask about lessons learned and mistakes made in their renovating process.

You want to have your development applications approved and your plans and budget set in stone before you get started. Having to make changes along the way can be costly!

Look for a bargain wherever possible. Shop both in person and online. Offer cash and ask about deals and discounts. See how many small jobs you can do yourself.

A word of caution is in order, however. Don’t try to do too many DIY projects. Some tasks may not be safe if you don’t have the experience. Additionally, if you don’t do it right the first time, you may end up spending more down the line to make repairs.

Renovating your property for rent or sale can be an exciting and rewarding venture. But you need to be sure you’re in the right spot financially before you begin.

Looking to fund your next property or renovation project? Contact Emnon for a free, no obligations discussion, and make sure you get the possible finance deal from the thousands of loan products on offer.

– Dom Cassisi, Managing Director

Renting out unused space is great way to supplement your income. You might use the funds to pay off your mortgage faster, afford a new property or take your family on a holiday. Whatever the purpose, renting out is a very flexible way to get more out of what you have.

When you rent out to strangers, you get the chance to meet some very interesting individuals from a variety of backgrounds. Who knows what adventures your new connections could lead to?

Depending on how often you rent out a space and at what rate, you may see a return of several thousand dollars per annum. How could you not consider renting out an unused room, apartment or home?

Earning a few extra dollars may sound as simple as putting up a property listing on Airbnb. But there’s actually a lot more to it than that.

Here are a few things you’ll need to keep in mind.

– You must be legally able to rent or sub-let if you are already living in a rental property.

– You will owe tax. You must report your earnings when you file.

– Renting on a home you later sell will likely incur capital gains tax.

– You might need extra insurance. Most peer-to-peer rental services offer some kind of insurance but you shouldn’t rely on that alone.

– There will be both start-up costs to prepare the rental and continuing costs to maintain it.

– You must make the time to maintain and market your rental space. It can be like taking on a part-time job.

There are quite a few factors to consider before you go ahead and dive into offering a bed-and-breakfast-like rental space. It’s good to get some financial advice before you do so.

After ensuring it’s legally okay, you’ll want to look into sprucing up your rental space. This includes not just a thorough cleaning, but installing cable, wifi, appliances, new bedding and possibly furniture, security systems or locks and even a laminated file of house rules.

Once your property is guest-ready, it’s time to advertise. You may want to branch out and market your property on more than one website to increase the odds of someone choosing your space. Don’t underestimate the importance of high quality, professional photos.

How much you charge will have a lot to do with your location, what attractions and conveniences are nearby and what amenities you can offer.

Keep a careful collection of all receipts and records pertaining to your property’s income and upkeep costs. These will come in handy when it comes time to report your income for tax purposes.

For more smart money tips as well as finance and mortgage services, contact the expert team at Emnon.

– Dom Cassisi, Managing Director

Most franchises work by licensing out the right to use a company’s trademark, the right to run a business as an extension of a larger corporation.  

Franchisees pay royalties to the franchisor as a fee for the right to operate. Some support for the facility comes from corporate and the franchisee must operate the business according to the corporation’s strategy.

But McDonald’s started doing things a little differently almost from the beginning.

The company started franchising in 1956 with a clear vision of using property to accrue wealth, not just burger sales. Ever since then, the method has remained virtually unchanged.

McDonald’s purchases property and finances it with long-term fixed rates. In turn, the company leases the property to franchisees at a considerable markup, basically renting out their own properties to run their own business.

The sale of all those burgers and fries by the franchisee-operated restaurants goes towards rent of the property.

This rent is paid in addition to royalties and other fees such as for advertising. Keep in mind, however, that the royalties are rather negligible compared to other franchising methods.

McDonald’s doesn’t need to charge exorbitant fees for others to sell burgers under their Golden Arches. All their income comes from rent.

As prices inflate, so does the amount paid in rent to corporate while corporate’s fixed payments on a property stay the same.

The result is a long-term reliable positive cash flow.

An average of 20% of income from sales goes to rent. Lease clauses often stipulate a minimum amount so that there is always something coming in. Even when sales slow down, that rental income remains constant.

It also works out well that the franchisees bear all the operating costs. Corporate doesn’t feel any of that bite.

In fact, company-run McDonald’s restaurants bring in a lot in sales, but around 85% of that income goes right back into the operating costs. So it makes sense to have thousands of other franchisee locations taking care of their own expenses and sending back to corporate a portion of profits in rent.

With some 36,000 locations around the world and only a handful of them being directly owned and operated by corporate, McDonald’s is essentially running a 30,000+ unit apartment complex.

And their classic burgers simply help their tenants to afford the rent.

There are a few good takeaway points from Macca’s methods.

Diversifying reduces financial risk

McDonald’s is both a real estate giant and a fast-food tycoon. They franchise a popular brand, sell a beloved product and earn rental income all in one package deal.

Investing in rental property is great additional income

So what if burgers don’t sell very well for a time? Or competition increases? That rent money is still pouring in.

Take advantage of tax advantages

Their property depreciates (but technically it doesn’t) and they take advantage of that.

Mickey Dee’s is a United States-based company in which the country’s tax laws allow depreciation tax breaks to apply to property despite the fact that real estate usually grows in value over time. No one knows for sure exactly how much this may have saved McDonald’s but one can guess it’s quite a bit!

To learn more about how you can break into property investment and explore your finance options, contact Emnon.

– Dom Cassisi, Managing Director

Some people find they can manage their various debts by compiling them into one loan.

Benefits of doing this include:

– Convenient

– Less paperwork

– Easier to anticipate expenses and budget accordingly

– Lower monthly interest rate

Sound good to you?

It’s worth looking into but you have to carefully consider whether debt consolidation is right for your circumstances. Rolling all your debts into this package could mean you have to forfeit some benefits you currently enjoy.

There’s also the temptation to keep using your credit cards and accumulate more debt after clearing them into the one loan. To make a success of this method, you need to be committed to reducing unnecessary expenses.

An experienced finance broker can help you weigh up the options.

Swapping out your current loan for a new one could result in lower interest rates. The downside is that your new plan may have you locked into making payments for a longer period of time, resulting in more money lost to interest rates. There could also be hidden fees associated with switching your loan. Of course, a finance broker helps you avoid any traps.

There’s absolutely no shame in simply selling off a property you have trouble making payments on. It’s understandable that you may be fighting to make your dream home a reality. But keep your options open and be realistic.

Selling and beginning anew could help you clear your debt, pad your bank account and set you off on the right track to trying again.

Be extremely cautious of deals that sound too good to be true.

They probably are.

There are lots of agencies claiming that they can reduce your debt no matter how much you owe. They make promises that you’ll get to keep your property.

They might even charge you astronomical amounts for some services that you could get for free.

Keep in mind that it will take time and commitment on your part to work your way out of debt. There is no magical overnight cure. Accept this fact, don’t panic, and seek professional help that will provide solutions tailored to your needs.

An expert in debt and mortgage will uncover debt elimination options you didn’t even know existed.

Don’t let crushing debt crush your dreams for the year ahead. Emnon has the help you need to get on top of your debt this year and stay there. Contact us as soon as possible to set up a consultation.

– Dom Cassisi, Managing Director

Refinancing this year could be your ticket to some lower interest rates.

One perk of refinancing is that you could get the option to choose a fixed rate loan. This is a great protection in the event that rates shoot up over the course of time. But you could also shoot yourself in the foot by having to pay that fixed amount even when rates drop.

There are pros and cons though so be sure to talk to an expert mortgage broker.

As long as your loan isn’t fixed, look into the possibility of making over-payments on your loan.

By doing so you can:

– Shorten your loan term

– Keep your rate a bit lower even if the rates rise all over the country

– Save money

For example, you could start paying the equivalent of a higher rate now. You’ll be getting ahead now and if the rate really does go up that much, it won’t be such a blow to your bank account.

Some loan structures let you link another account to your mortgage. You get to keep using the account as normal, but when it comes time to pay out interest, the amount in your bank offsets the total you need to pay interest on.

For example, a $50,000 dollar loan would be offset by the $5,000 you may have in your bank. The interest on $45,000 is less than that on $50,000.

Before you snatch up the first plump loan that’s put on the table before you, make sure you’re ready to handle all associated costs. This includes expenses that will surely come if interest rates rise.

Even if you qualify for a large loan, remember that the less you borrow, the less you’ll have to pay interest on. Save up as large of a deposit as possible before you choose a loan.

Crunch some numbers, get professional advice and stay open to flexible loan options, like split loans.

If so, there’s no need to let anxiety hinder your financial goals for this year. Contact our team at Emnon and prepare and stay ahead of the interest rate game.

– Dom Cassisi, Managing Director