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  • 1. Your Guide to Renting, Buying, Selling, and Investing in Real Estate
  • 2. 0 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Introduction For most of us, real estate is our single biggest investment and main wealth creator. Whether you are selling the much loved family home, experiencing the excitement of buying your very first home, renting while you are saving for your first property or investing in property to build future wealth, the decisions you need to make and the challenges you face require considerable research and planning. To help you in the process LJ Hooker has sponsored this Guide as a helpful starting point for anyone considering undertaking a real estate transaction.
  • 3. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 0 Renting Property / page 04 This section contains handy tips for anyone who is considering or currently renting property as their first step on the property wealth ladder – the first step to owning their first home. Buying Better / page 06 In this section we cover the research steps required to find the right type of property for your needs, ways of financing your dream, the pitfalls of the home hunt, making an offer, the rules of buying at auction and the ultimate move to your new home. Successful Selling / page 12 Here we cover the selling process, from selecting a salesperson, establishing a sale price or auction reserve, presentation of your home for sale and the auction process. Intelligent Investing / page 16 For those looking to build wealth by investing in property we look at what makes a solid real estate investment, borrowing for your investment and how to maximise your returns through the services of a professional property manager. Throughout the Guide you will find handy tips and checklists plus a Glossary of Terms to help you cut through the terminology. Happy home hunting!
  • 4. 0 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Renting Property... For many people, renting property is their first real estate experience after moving from home, the first step along the road to acquiring property. Renting gives you the time you need to save the deposit for your first home and to get a feel of where you want to live. It is also an ideal time to build a relationship with your local agent regarding help in buying and financing your first property.
  • 5. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 0 Renting Property Finding a rental property Tenants obligations • Decide where you’d like to live • You will be required to sign a lease • Drive around or walk the area to be sure • Alert the agent in writing of any prior damage to the property before moving • Decide on how much rent you can afford in so you will not be held liable • Don’t forget other costs like water rates • Pay a rental bond and electricity • Pay the rent on time • Use online search services such as • Pay for any agreed outgoings such as water usage • Get to the paper early to plan your visits and calls to agents • Keep the property in good order • Check if pets are allowed • Provide access to the managing agent for agreed property inspections • Check connections such as phone and cable • Conform to local council regulations such as noise, garbage collection, etc • Check access to public transport Tenant entitlements What to do if there is a problem • Check details of the lease such as who pays water rates • Contact your property manager immediately • Check landlords obligation to make • Make sure you have all emergency essential repairs regarding plumbing, numbers handy for repairs and assistance electricity, water heater, etc • Know your neighbours as you may need • Check Department of Fair Trading their help web sites for helpful information • Make sure your bond is lodged with the appropriate rental bond board and you have a receipt
  • 6. 0 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Better Buying... Your home will probably be the most important and expensive purchase you will ever make. In this section we look at how to plan for, find and enjoy the home of your dreams.
  • 7. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 0 Better Buying The right property for you The two key questions to ask yourself • Consider if you are prepared to renovate; when considering a new home are if so, the worst house in the best street ‘where’ and ‘what’. Where do you want could be a good buy to live and what type of property do • Look for at least one special feature; you want to live in? The old real estate maybe it is a view, a large backyard, adage – ‘location, location, location’ – is a designer interior or original historical as important a concept today as it has features ever been. It is not only more enjoyable to live in a good area, but it will enhance • The Internet is a great place to start your property’s value and appeal when your research. Real estate sites the time comes to sell. such as offer on-line inspections with photos of properties So what makes a good location? and virtual tours • Cities, coastal or inner city areas • Make searching easier by leaving generally out perform other areas such details of what you are looking for on as outlying suburbs or regional areas and receive an instant • The combination of good urban planning email as soon as suitable properties and natural beauty also result in desirable become available locations • If you are looking for something different, • Consider growth areas with good access visit the Luxury and Lifestyle section to local facilities and avoid environmental of the which features problems such as areas with busy roads properties that embrace idyllic or unique or noisy factories nearby locations, magnificent landscapes, majestic interiors or special surrounds • Once you have decided on your location the next question is what to buy. Make a • Maps and information about facilities and list of what is important to you – number services in specific suburbs and regions of bedrooms, car access, size of land – is available on – a great but be prepared to compromise on help if you are moving to an area you some things don’t know well
  • 8. 0 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Better Buying What to look for in a property When you’re thinking of buying, your • If big changes are needed to make the • Is there any risk of flooding or erosion? requirements will vary depending on property comfortable, then it’s a good • How much maintenance work will you your personal circumstances and on idea to know the costs before you make need to do – or pay someone else to do? the sort of property you wish to buy. an offer You may be looking for a family home, • Are you likely to be bothered by nearby • Is the house and land suitable for your a “sea change” property or a holiday farming or orchard work? stage in life – are there too many stairs, is home. Once you have found the the garden too steep? • Are there any industries in the area that property of your dreams, you may could affect you? want to pause for a while and reflect Then think about the detail: before making an offer or signing on • Will you still have easy access to your the dotted line. • Does the house have enough bedrooms? family, friends, work and recreation? Consider the following checklist: • Are you happy with the garden – or • What will be the long term impact of its potential? • Before you decide on anything do you corrosive sea air? have your loan approved? • Will you have good access to the facilities you need such as schools, • Will you enjoy living in the neighbourhood? doctor, medical centres and shops? Tips for buying • Are there enough bathrooms? off the Internet • Is the house sound? If you have any doubts at all, hire building and pest • Is there enough garage space? Is the Always confirm property details with inspectors to check – this can be garage accessible from inside the house? the salesperson arranged by visiting • Will you have problems with traffic If you cannot view the property ask • Is it in an area likely to hold resale value or noise? a friend to visit it on your behalf and or benefit from capital growth? ask the salesperson to send additional • Is the kitchen serviceable? photos and details on the property and • Are there any long-term costs or issues • Is it safe for your family, eg children, the neighbourhood such as body corporate fees, jointly the elderly or disabled? Research the local area – transport, owned driveways? • Is it suitable for pets? shops, schools etc. – check out the • What type of Title is the property? Is it Locality Guides on Torrens Title, Company Title, Strata Title, • Are you happy with the building’s security? Ensure you have full pest and building or some other? Ask your solicitor to inspections carried out by qualified advise on the Title • Check under the house – is it dry? inspectors – this can be arranged by • Does the entire house, including visiting • Is the block well drained? alterations, have the required If negotiating by email, make sure Council permits? For “sea and tree change” properties everyone involved has your email or holiday properties: • Is it built for the climate? Is it insulated? address – you don’t want an offer Will it be warm in winter, cool in summer? Many of these questions will be the lost in cyberspace! same as above but if you are buying in • Have you asked your local council a rural or coastal area, you may wish to about planning issues like the possibility consider other practical issues, such as: of any big developments planned or construction of new roads nearby? • Is there a good water supply?
  • 9. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 0 Better Buying Financing your dream • How much you can afford? As a rule of thumb, mortgage lenders will normally lend about three and a half times your gross taxable income. The figure will vary depending on your living expenses and other debts. However, this figure combined with your deposit will give you a good idea of your safe limit • Confirm your limit with your loan consultant or a lender before you start looking at properties • How much deposit will you need? Most lenders will lend up to 80% of the value of a property. If you need to borrow more than this you may be required to take out mortgage insurance, which insures the lender against a borrower defaulting, however, remember the borrower is still liable for all the money owing to the lender plus costs associated with defaulting • When looking for the loan that will suit you best, it’s always wise to seek professional assistance. LJ Hooker Financial Will your mortgage Services can provide professional advice really work for you? on the mortgage that best meets your needs…for more information and other Today, there are hundreds of different • Saves you the inconvenience and helpful advice visit mortgages on offer but how do you confusion of shopping around know which one is best for you • In addition to the deposit you will need • Help with property investment finance – which one best suits your individual funds for legal costs, stamp duty and circumstances, now and in the future? • Help with bridging and low doc loans incidentals such as the costs associated LJ Hooker Financial Services can find • Pre-approved finance and pre- with moving house the loan that’s right for you! qualification to indicate your • Australia’s first online moving service, • LJ Hooker Financial Services can take borrowing ability LJ Hooker Move, makes planning, you through a wide range of mortgage • Professional loan presentation to costing and arranging your move options and help select the one that’s prospective lenders easy…it’s all there on right for you • Meet at a time and place convenient • Arranging connection of essential • If you already have a property loan for you services such as gas, electricity, LJ Hooker Financial Services can telephone and cable…LJ Hooker compare your loan with other lenders To arrange an obligation free consultation Connect can do all this for you free to check your existing lender is at no cost to you please visit of charge via providing you with the best on offer or contact your local LJ Hooker office.
  • 10. 10 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Better Buying The home hunt International Customer Now you have set your priorities – you Referral Network know where you want to buy and you LJ Hooker can make it easy to find have negotiated your mortgage – now the right home for you through our it’s time to start the search. International Customer Referral • A good starting place is the local Network of over 00 offices across newspaper or main newspaper Australia, New Zealand, Indonesia, supplement China, Papua New Guinea, Fiji and India working harder for you. • Major Internet sites including (Australia’s leading agent web site) and One call can put you in contact with the make it easier to LJ Hooker office in your chosen area, as find the right property well as providing local maps and lots of other helpful information. • Other key sources of information are local real estate agents and it’s wise to Call 100 1 1. visit some offices in the areas you have chosen to check out the window displays and talk to the agents Making an offer • By checking the newspapers, web sites When you have found your dream home and agency windows you will determine and all the checks are complete and if the type of property you are looking for acceptable, it is time to make an offer in your chosen area is affordable or not even if the property is going to auction. in your price range. If prices are too high If you choose to wait until auction you may have to lower your expectations day, be aware someone else may or consider another area make a pre-auction offer that could • Once you are ready, be prepared to look be accepted. at a lot of different properties. It may take • When making an offer you will find time to find what you want dealing through an agent is the easiest • If you are serious about a property make approach. It takes much of the emotion sure you go back a number of times – at out of the transaction for both you and different times of the day and night the vendor is designed to save • When you have found what you want • If you have done your research you will your valuable time. Once you register it is time to get expert advice. Have the know how much you can afford to offer on you will receive contracts checked by your solicitor or and what is a fair and reasonable price regular emails of available rental settlement agent and make sure the pest for the property properties or properties for sale and building inspections are undertaken (this matching your criteria as soon as they • You may be tempted to make a very low can be arranged by visiting are placed on our website! offer in an attempt to grab a bargain but If there is a problem these checks will help others may also be making offers and if How do I join? you make an informed decision about these are higher you could miss out the property All you have to do is visit • If you really want the property make and click on – we simply • Once you find your dream home don’t sure your offer is realistic and in line with ask for your email address and you create wait or you may miss out! current market value your own password. We do the rest.
  • 11. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 11 Better Buying Buying at auction Moving in Attending an auction can be daunting can bid, knowing the Auctioneer will only Once the sale has settled (is complete) it experience for first time bidders. A good have a maximum of one bid on behalf of is time to move in and the key with any tip is to attend some local auctions prior the vendor and if used, will be declared as move is the removalist. to the one you will be bidding at to get a a bid on behalf of the vendor at the time • When selecting a removalist get at least feel for the process. it is made three quotes and remember the cheapest • An auction may be held in an Auction • Bids may come from people representing is not always the best Room or on site at the property buyers who are not present. This is • Check how many people will be allocated allowed providing the auctioneer has • In some states when you attend the to your move – the more the better been advised auction you will need to register with the • To ease the stress of moving you can auctioneer, giving your name, address • Buyers can speed up the tempo of plan, get quotes, cost and arrange it all and telephone number. You will be an auction by making big jumps in through LJ Hooker Move – Australia’s required to show proof of identity such their bidding – say from $250,000 to first online moving service at as a driver’s licence, passport or credit $280,000 in one bid – or slow down the card, but be assured your information is auction by bidding in small increments • Connecting essential services such protected by privacy laws as electricity, gas, water, phone and • Steady, firm and unemotional bidding is cable services can also be arranged • Once you have registered you will be often the best tactic – set your limit and via through LJ Hooker issued with an identification number that stick to it Connect you must display when bidding • Once bidding reaches the reserve price • Ensure your move is adequately insured • Only registered bidders or their and the property is to be sold, the – check if your own insurance policy representatives will have the opportunity highest bidder will be the buyer gives removal coverage and select to buy at auction in these States. • If you are the highest bidder, you must a removal company with full Legislation in all States in relation to be ready to pay the 10% deposit and comprehensive insurance bidding at auction is under review, so if you are then legally bound to buy you have any queries you should discuss • When packing, make sure you mark the property the process with your agent boxes clearly with the rooms they will • If you default you risk losing the be going to • The auctioneer will present each 10% deposit property for sale then invite bids • Give the removalists a copy of your new from the audience • If the reserve price is not reached there home’s floor plan so they are aware of is still an advantage in being the highest which room is which • LJ Hooker has adopted a total “People bidder, as you will then have first right of Friendly” Auction process which means • A move is a great opportunity to clear negotiation with the vendor all buyers bidding at auctions conducted out things you no longer use or need. by an Accredited LJ Hooker Auctioneer A garage sale is a good idea, or donate your unwanted possessions to a charity • On moving day you may consider having Tips for buying at auction your smaller children cared for as the change in routine can be unnerving for them Before bidding at auction make sure you Don’t bid for any property unless you attend two or three other auctions to get have obtained and accepted all legal, • It’s important to make your young a feel for process pest and building inspection reports children feel at ease quickly, so set up their rooms first Set your price range so your heart won’t Don’t be afraid to bid aggressively for rule your head at bidding time the property – you want to eliminate • Once you have settled in it is a good idea other potential buyers to make yourself known to your neighbours Take some support with you to the and begin enjoying your new home auction, preferably someone with a Expect the unexpected – prices at strong head to stop you bidding beyond auction can shoot up very quickly • Remember to redirect your mail through your range Australia Post before you move
  • 12. 1 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Successful Selling... When you decide to sell your home you will have to deal with a combination of emotion and hard financial decisions. The following information will help you balance both and align them with market reality.
  • 13. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 1 Successful Selling Selecting the right agent Your personalised • Using a qualified local agent to sell your marketing plan home is the first step towards obtaining In today’s competitive market merely • Make homebuyers’ faces light up the result you desire…the best price in placing a sign at the front of your home – natural light is best, so open curtains to the shortest possible time and a photo in an office window is not let in the light and the view. Make sure • A professional agent can give you an enough to ensure the best buyer is found. all your electric light bulbs are working accurate picture of the state of the market, • Professional agents like LJ Hooker offer • Clean out and clean up – clean out which will help you price your property specialised multi-faceted marketing all your clutter, less clutter gives the realistically. They can advise you on the programs to capture buyer interest from impression of more room best way to sell your home and will develop across the road, across the country and a detailed marketing plan for your property • Pets may inhibit buyers – when you across the world have an open home ensure carpets • Your agent should not only understand • The most effective marketing plans and furnishings are free of pet hair the property market, they also need to utilises a combination of proven and smells – take your pets for a walk understand people – as Sir Leslie Hooker marketing tools including signage, local while buyers inspect your home always said, “Real estate is not about advertising, direct mail, Internet listing, houses, it is about people” and window displays to maximise the opportunity of attracting the right buyer • Ask your agent what they think will most for your property Tips for choosing attract a buyer to your property your agent • Seek their advice on improvements you could make to increase the chances of a Preparing to sell Does the salesperson have a proven successful sale – particularly making your track record? Taking a little time to prepare your home more environmentally friendly Does the salesperson work for a home for sale can make a significant • Using the right agent means you have a difference to the sale price. Following reputable trusted agency? partner in the selling process, someone are a few tips on preparing your home Do you have a good rapport with with the local knowledge and expertise for sale with many more at the salesperson? to make the selling experience an easier • Your first step is to walk outside – how one for you Does the salesperson have a good does the outside of your home present? knowledge of the local market? If a buyer drives by will they stop and Setting the sale price take a second look? Is the written material professionally • Check the roof and guttering and prepare prepared? Be careful not to choose your agent based only on the selling price they your garden so it will look its best for the Does the salesperson/Agency have quote – you may be sorely disappointed. first open home the support of a large professional • Purchasing a home is very much an • Clean houses make a tidy sum – you and trusted network? emotional decision, hence opinions need to remember that once your Does the Agency have the ability on price will vary home is on the market you are living to present your home to a wide in a showroom marketplace using an international • A professional agent will use a systematic approach to determining a price, • Ensure it is always immaculately clean referral service and a proven factoring in prices of local homes that for open homes – one unmade bed can web site? have recently sold, houses that are unmake a sale Will the salesperson provide currently for sale, the state of the market • Your home’s two best selling points – the on-going communication of the and their own knowledge of buyers kitchen and bathroom are the two rooms sale’s progress? expectations in the market place that buyers look at the most closely. Do you feel you will be able to work • The question you should ask a prospective Ensure they look their best closely with the salesperson and that agent is not “how much can I get for my he/she will do their best for you? house” but “what will you do to get the best price for my property?” Is the salesperson well presented?
  • 14. 1 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Successful Selling Method of sale Promotion is vital Generally speaking there are two When you first list your property for • The deposit is held on your behalf in the most common methods of sale used sale, your agent will discuss a marketing agency’s Trust Account for residential property; private treaty plan with you. The campaign will target • Prior to settlement the property remains whereby a property is marketed with a different sections of the market – from your responsibility, so it is important to price and sale by auction – marketing the potential buyer in the same street to ensure you maintain your home insurance without a price (legislation in some people on the other side of the world. during this period states requires the agent to provide a • The agent will do their background work price estimate or range when taking a • Once the contract is signed the process including taking quality photos, taking property to auction). of transfer can begin. You may use the other salespeople to inspect the property, services of a solicitor or conveyancing • Private treaty sales can inhibit competitive and contacting their database of company such as LJ Hooker forces by only attracting buyers from one possible buyers Conveyancing in NSW or a settlement specific price range • Marketing tools can include a sign in agent such as LJ Hooker Settlements • With Private Treaty, when a price is front of the property, a sign in the real in WA to handle the transfer on your quoted it is more often the case that the estate agency’s window, newspaper behalf – you can contact either through price is negotiated downwards and magazine advertising, and of course promotion through Australia’s No.1 agent • Auctions can often produce a better • As part of the transfer process, website – result in less time because the auction arrangements will be made for the process is designed to source more • When selling by auction, the auction date balance of the purchase price to be paid buyers and identify the most is usually set three to four weeks ahead as directed by you to your bank account genuine buyers and the property will be marketed heavily or to any party or account you nominate for those few weeks • Settlement day is the date when the • At auction sellers can be confident the true market value of their home • On auction day, all potential buyers balance of monies owing less costs is established gather in one place. If they can’t be there are paid, keys are handed over and the in person they’re in phone contact with property then becomes the responsibility • The auction method is designed to someone representing them of the purchaser produce faster results because people who are genuinely interested in the home • Check with your agent to ensure all know they must make their move quickly possible potential buyers will be present to buy it, whether at auction or prior at the auction so you be can confident of the opportunity to achieve the best Rewards for selling • Auctions negate the frustration of indecision or protracted bargaining possible price for your property through LJ Hooker When you list and sell your property* • Auction can achieve the best price for a home as buyers bid up from the It’s sold! – Now what? exclusively through any LJ Hooker office, you can earn either: opening bid • When you sell at auction there is normally 20,000 Qantas • The winning bidder must be able no cooling off period – the contracts are Frequent Flyer points or to sign the contract and pay the signed and the deposit paid on the day deposit immediately 20,000 Visa Reward Points or • A 10% deposit is normally paid by the • Of all the selling methods auction has Buyer/s with the balance due on the *Conditions Apply so talk to your LJ Hooker Agent the shortest settlement time agreed settlement date
  • 15. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 1 Successful Selling The auctioneer’s job We’ve all seen the drama of an auction on TV – the auctioneer with his quick- fire speech, waving hands, pointing finger. But what does he actually do? • Essentially, his role is to control a public negotiation process where potential buyers are all competing to buy a property • The auctioneer has to make sure the process takes place in an orderly and legal manner • While there is often an element of showmanship in the role, with humorous asides and jokes, the Auctioneer must always conduct himself professionally • He will encourage bidders to go higher but at the end of the day, each bidder decides how much they are prepared to pay and the seller decides whether they’re prepared to sell at that price • All bids must be acknowledged and recorded, often by assistants, so there are no misunderstandings over who has bought the property and for how much • A good auctioneer can read body language and create an atmosphere of fun and entertainment to take the pressure off a very serious process • They know how to prevent disputes and how to handle any problems that can occasionally occur
  • 16. 1 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Intelligent Investing... A balanced investment portfolio should always include property. Choosing the right investment property gives you the potential for income and future capital gain to increase your person wealth.
  • 17. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 1 Intelligent Investing What makes a solid real estate investment? • To maximise your return on an investment • Homes close to schools, shopping • Research is the key and the Internet is property, choose wisely centres, and public transport, or located a good starting point in fashionable suburbs, tend to be • Give yourself some time to watch market • Organisations, such as LJ Hooker more desirable and may command cycles and movements in property values Financial Services will search the higher rents before putting yourself in the hands of market to find the right loan for you the experts • When buying for investment, view • Whatever loan you choose, you need properties with regard to their potential • Most people choose residential property to consider the tax implications such as for capital growth and their attractiveness investment ahead of other kinds of minimising your tax through negative to tenants property because they are familiar with it gearing. Where the cost of holding the and feel comfortable investing in it • Focus on areas with a good track record property, including the interest charges of capital growth. Capital growth tends to on the loan, exceeds the income it • However, it may also be worthwhile run hand in hand with good infrastructure produces is tax deductible against your considering a commercial or industrial other assessable income property investment. This is a specialist • Look for streetscapes that are area and advice should be sought from a architecturally consistent rather than a • Property tax depreciation is available specialist commercial agent mix ‘n’ match of styles to any property owner who obtains assessable income by way of rent or • The secret to regular investment income operates a business from a property. is a property that is highly sought after Borrowing for A tax depreciation schedule can be by tenants so choose an investment your investment arranged via property with a view to tenants’ wants Finding the right loan for your • Always discuss your borrowing and and needs investment is just as important as potential investment strategies with • Classic style properties of quality finding the right property. There are your accountant or financial advisor construction generally hold their many options open to you. Whether before proceeding appeal longer you want an investment for negative • Consider costs associated with loan gearing, capital growth or retirement • Properties with security features such as application fees, mortgage insurance, income, loans are available to satisfy door and window screens, alarms and solicitor or conveyancer fees as well a both your long and short term lock up garages are very popular pre-purchase inspection reports and investment strategies. Stamp Duty • Off-street car parking is a bonus, • Your loan may have fixed or variable particularly in inner city areas interest rates, it may be interest only or • In hotter climates there is a high demand principal plus interest Rewarding landlords for air conditioning • You may include a credit facility to allow Earn 10,000 Qantas Frequent Flyer you to draw on the money points* when you appoint LJ Hooker • While the aesthetic appeal of a home can affect the rental value and vacancy rate, • If you have equity in your current home as your exclusive Property the location of the property will also affect you may wish to use this to borrow Management Agent. its profitability against for your investment property *Conditions do apply so please confirm with your chosen LJ Hooker Agent
  • 18. 1 / Your Guide to Renting, Buying, Selling, and Investing in Real Estate Intelligent Investing Professional property management Once you have invested in a property • Inspect all major maintenance work Insurance protection it is important you maintain both the authorised, prior to payment property and the relationship with It is essential you have adequate insurance • Pay property accounts and statutory for your investment property that covers your tenant. You may choose to do charges as directed, including water contents, public liability, loss of rent and this yourself or appoint a professional rates, council rates, body corporate fees, tenant damage. Your LJ Hooker Property Property Investment Manager who will: insurances, caretakers, maintenance Investment Manager can provide advice on • Advertise the property to prospective contractors, etc all your investment property insurance needs. tenants in an efficient manner to minimise • Prepare applications and serve notice property vacancy to the Tenant and the Residential • Personally interview and reference check Tenancy Tribunal or Small Claims Court all prospective tenants in compliance with relevant legislation Customer for life and/or the Tenancy Agreement When you appoint LJ Hooker to sell • Provide effective follow-up of any your property you can rest assured your rental arrears • If necessary, provide representation satisfaction is guaranteed because of our at the Residential Tenancies Tribunal • Undertake rental reviews and Tenancy commitment to live up to our promise / Small Claims Court Agreement renewals that when it comes to real estate, nobody • Advise you in writing of the approaching does it better. With LJ Hooker you are • Have all Tenancy Agreements in writing, end of a lease and vacating tenants not forgotten after your property is sold incorporating all the terms and conditions because you will become a valued member of the Tenancy • Inspect the property at the end of of our ‘Customer for Life’ program which each Tenancy and arrange finalisation • Lodge the rental bond with the is designed to maintain contact with you of the Bond appropriate agency on matters relating to real estate, special • Advise you of relevant market and offers and wealth creation. This is our way • Have the tenant sign a written report on legislation changes of saying ‘Thank You’ for the trust you have the condition of the property prior placed with us and another good reason to tenancy • Advise you on property insurance matters for you to say • Provide a monthly statement with If you appoint a professional Property ‘Thank you Mr Hooker!’ rental monies Investment Manager such as LJ Hooker you will be asked to enter into an • Notify you about necessary and agreement that covers the agency’s preventative maintenance fees, timing of reporting and inspections, • Conduct a routine inspection of the payments, expenditure on maintenance Recognising A1 tenants premises every six months and provide and repairs and rent reviews. With a a written report after 12 months (unless professional Property Investment Manager The LJ Hooker A1 Tenant Card a report is required after the six monthly like LJ Hooker in place you can confidently Programme is our way of recognizing and inspection) hand over many of the worries associated keeping quality tenants and is proof that with being a landlord. You can trust them these tenants take good care of rental • Have a team of maintenance contractors property and pay their rent on time. It’s to keep your investment running on a on immediate notice another way LJ Hooker gives landlords business-like basis to realise the best returns available, with the least hassle. peace of mind knowing their investment is being looked after.
  • 19. Your Guide to Renting, Buying, Selling, and Investing in Real Estate / 1 Glossary of terms This glossary has been compiled to Deposit – Normally 10% of the purchase Passed In – A property will be passed in help explain some of the more common price, which is paid by the buyer into at Auction if it does not meet the set terms used in the real estate industry the Agent’s Trust Account at the time of Reserve Price. in Australia. For a complete Glossary of exchanging contracts. Reserve Price – The minimum price Terms featuring other Industry language, Exchange of Contracts – When signed the seller has specified they will accept please visit copies of the Contract of Sale are at Auction. Agent – A representative of an agency physically swapped between the seller Settlement – A date is set for completion authorised to act on behalf of others in the and purchaser. of the sale. At this point the balance of the sale, purchase, letting or management of Gazumping – Where the seller agrees purchase price is paid and ownership of real property. to the sale of the property but before the the property transfers from the seller to Auction – A public sale where the property Contract of Sale is signed the property is the purchaser. is sold to the highest bidder – on the sold to another buyer. Stamp Duty – A state government tax provision that the reserve price for the Highest Bidder – The person who posts on financial transactions. In the sale of real property has been met or exceeded. the highest bid at an Auction will purchase estate it is calculated according to the sale Bond – Upon signing a Tenancy the property provided the reserve price has value. It also applies to the mortgage value. Agreement, a tenant must lodge a bond been met or passed, or failing that has the Strata Title – The system of Title that (usually the equivalent of four weeks rent) first right to negotiate with the Vendor when applies to units, apartments and some with the Rental Bond Board or equivalent the property is passed in. town houses. It applies to the subdivision legislative body. of air space rather than land – you own Interest – The amount of money charged Capital Gain – The monetary gain you part of the building, and a share in the land by a lender on the amount borrowed. obtain when an asset is sold for a higher as part of the Body Corporate. price than originally paid for it. Investment Property – Property Torrens Title System – The system of purchased for the purpose of earning an Certificate of Title – A document Title administration that applies to most income and capital gain. identifying the ownership of land. It shows land in Australia. the dimensions of the land, the owner, and Lease – A document that grants a person/s Transfer – A document registered at whether there are any mortgages or other tenancy of a property. A specified period the Land Titles Office and noted on the encumbrances. It is held by the lender as and terms and conditions apply. Certificate of Title, which, when registered, security for a loan. Mortgage – A legal document containing verifies change of ownership of a property. Contract of Sale – A legal document that the terms and conditions of funding the Vendor – The party who offers a property sets out all the terms and conditions the mortgage on the property and secured for sale. seller and purchaser have agreed on. over the property. Yield – The income gained from a Conveyance – The legal process involved Mortgagee – the person or institution property. The yield is usually expressed in transferring the ownership of property. lending money on a property. as a percentage of the value or cost of Company Title – a title of ownership Mortgagor – person or entity liable for the investment. more commonly associated with older borrowing and repaying the money and the apartment buildings. interest to the lender.
  • 20. The LJ Hooker difference How can we help you? • LJ Hooker is Australia’s best known, Your local LJ Hooker office is committed most trusted, most often chosen real to looking after you throughout the estate company1 real estate cycle – from beginning to end and beyond – with a wide range • LJ Hooker sells a property every of helpful real estate related services 3.8 minutes2 under the banner of ServicePlus which • LJ Hooker rents a property every are designed to smooth your selling or 2 minutes3 buying process. • is Australia’s No.1 • LJ Hooker Market Estimates provided Agent website4 to prospective Vendors obligation FREE from any LJ Hooker office • Over 700 offices across Australia, New • LJ Hooker Professional Property Zealand, Indonesia, China, Papua New Management Services designed to Guinea, Fiji, India, United Arab Emirates, maximise the return on your investment Vanuatu and Vietnam ready to work available through your local LJ Hooker Office harder for you • LJ Hooker Financial Services can • Access LJ Hooker’s International Referral find the property loan that’s right for Service with just one phone call your needs from the hundreds of loans • LJ Hooker’s Customer Service on offer through their extensive leading Centre provides all the local lender panel and they can also assist with information you need mortgage protection insurance • LJ Hooker’s exclusive signboard • LJ Hooker Conveyancing (NSW VIC) range guarantees your property can look after all your conveyancing high buyer visibility requirements – exclusive to the service is Settlement Tracker that keeps you updated • Earn Qantas Frequent Flyer points, ANZ on the progress of your settlement 24/7 Rewards Visa or Business One points automatically by SMS/email when you list and sell through LJ Hooker4 • LJ Hooker Settlements (WA ) can look • Earn Qantas Frequent Flyer points4 for after all your conveyancing requirements each new residential property when you – exclusive to the service is Settlement appoint LJ Hooker as your Property Tracker that lets you access the progress Management Agent of your settlement 24/7 and automatically • Earn Qantas Frequent Flyer points4 when keeps you updated by SMS/email you exclusively list and sell, or lease your throughout the process Commercial or Industrial property with • Home, Contents Motor Insurance LJ Hooker Commercial available through our insurance partners • LJ Hooker Financial Services will find the who can protect your valuable assets with property loan that’s right for you a range of specific insurance packages • LJ Hooker Connect is convenient a • LJ Hooker is the National Sponsor of one call FREE service to arrange the Cystic Fibrosis Australia – raising money disconnection or connection of essential to help find a cure for this life threatening utilities including water, gas, electricity as genetic condition well as the Internet and PayTV • LJ Hooker is actively involved in the • LJ Hooker Move is Australia’s first FREE communities we serve online moving solution that makes it easy • The LJ Hooker After Sales Service to compare removal service providers programme monitors your level of and fully cost and plan your relocation satisfaction in dealing with LJ Hooker • The Property Inspection Brokers can and ensures you become a valued provide a range of pest and building Customer for Life inspection services through their Australia-wide network of fully licensed These are just some of the reasons and accredited inspectors why, every day, so many people like you throughout Australia are happy to • BMT ASSOC is our preferred supplier say...“Thank you Mr. Hooker!” of Tax Depreciation Schedules for property investors to assist them to claim the maximum tax deductions relating to their property investments 1 Newspoll National Brand Track 1998-2007 2 Australasian Sales 12 months to end August 2007 Please take a moment to consider which 3 Australasian Lettings 12 months to end August 2007 of these services would make life easier 4 Nielsen Net Ratings 5 Conditions Apply for you then discuss the service you are interested in with your local LJ Hooker Agent or visit
  • 21. Your Guide to Renting, Buying, Selling, and Investing in Real Estate © 2008 Hooker Corporation Limited 0808 LC448