on the homefrontfirstnational

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Burnie

October 2010

If you're considering shifting to a newhome in the near future, it’s possible arenovation could help you attract morebuyer interest and ultimately a fasterselling price for an existing house or unit.

So, if you feel your home is looking tiredand in need of a facelift, the chances arebuyers will too.

But before taking a hammer to a wall orfiring up the circular saw, it is worthconsidering the renovations that willdeliver the best bang for your buck.

Some experts suggest a kitchen orbathroom renovation add the greatestvalue to a property, while an entertainingdeck and open-plan living spaces are alsobig winners when it comes to attractingthe interest of potential buyers.

However renovating a kitchen orbathroom doesn’t come cheap. Propertywebsite realestate.com.au estimates thata kitchen renovation can cost anywherefrom a few thousand dollars, right up to$30,000 plus. No matter the size of the

job, a brand new kitchen usuallyrequires re-tiling, new cabinetry,and replacement sinks and tapware, for starters.

If money is tight, a kitchenrenovation might be out of thequestion. But don’t despair!There are other steps that canspruce up a home, such asremoving the ageing Axminstercarpet or the florid wallpaper.New door handles and ceilinglights can also help achieve amore contemporary look, while alick of paint never goes astray.

If the removal of the shagpile leavesbehind floorboards, this is a bonus – ifnot, a floating wood floor, which startsaround $20 per square metre, is a popularway to modernise an older home. Bravesouls might even try installing the floatingfloor to save on professional labour costs.

Street appeal is also important, becausefirst impressions count. Indeed, manybuyers make up their mind about a

property the first time they see it. So, ifthe budget allows it, improving a home’sexterior is a worthwhile step.

Prospective buyers will look for a healthylawn, attractive landscaping, trimmed treesand freshly painted walls and gutters.

No matter what the size of your renovationbudget, there are always ways to freshenyour home for sale. If you are uncertainabout the best options, speak to us today.

Renovations that add the most value to yourhome prior to a sale

Important note: Clients should not rely solely on the content of this newsletter. All endeavours are made to ensure the content is currentand accurate however, we make no representations or warranties as to the accuracy, reliability, completeness, or currency of the content.Readers should seek their own independent professional advice before making decisions.

ON THE HOMEFRONT |

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�e cost ofmaking yourhome moresecureOwning a home isn’t all beerand skittles with mortgagerepayments, home repairs,council rates and othercharges a regular drain onfinances. Then there is theissue of security. QueenslandPolice report that residentialburglary is the most frequentlyreported crime, with amateurcrooks seizing easyopportunities, such as anopen door or window, tocommit a break and enter.

But it’s possible to minimisethe security concerns andkeep the bad guys at bay byinvesting in a security door.Hinged security doors startsfrom $390 for a diamond grille,and $490 for a cast aluminiumdoor. A triple lock, whichprovides two additional locks,will set you back just $90more. But before you handover the cash, check the doormeets Australian Standard AS5039-2003, otherwise all you’llbe keeping out are the flies.Standards Australia canprovide copies of the standardfor $130 - which might be oneof the best investments youever make.

Also consider exterior sensorlights, which react tomovement around theperimeter of your property andare available from Bunningsfor around $20 each (pluselectrician’s fee). It’s a prettyminimal charge to help secureyour home againstprospective burglars.

There is little doubt a mortgage is a major financial commitmentand a significant part of home ownership. At the same time, it’simportant to understand there are broadly two categories ofmortgages – fixed and variable rate home loans – and choosingthe right option can save you money long term.

A fixed rate mortgage offers set loan repayments irrespectiveof interest rate fluctuations, which is comforting with manypundits tipping a pre-Christmas interest rate rise. Fixed rateloans are for a set term, usually between six months and 10years – with the majority one, three or five years.

However while fixed rate loans can provide security, they’renot exactly flexible. For example, many won’t allow you tomake additional repayments which can be useful in shavingyears off the term of the loan and interest repayments.

Variable rate home loans, on the other hand, are the mostpopular type of mortgages in Australia. This is because theyare considered more flexible, and may include features suchas the ability to make extra repayments and/or allowhomeowners to redraw funds for emergencies. The downsideof a variable loan is that, generally speaking, they are linked toofficial interest rates. So, when the Reserve Bank increasesinterest rates, your lender will usually follow suit – and in somecases will increase rates over and above the RBA’s increase.

Beware of underinsurance!Underinsurance is a trap that many homeowners fall into, andit occurs when the level of cover doesn’t insure the full cost ofpotential losses or damage to a home, or the impact on thepeople living under its roof.

The consequences ofunderinsurance were mostgraphically displayed in thefall out from the 2003Canberra bushfires, whichdestroyed 488 homes.

In response to the disaster,the Australian Investmentsand Securities Commission(ASIC) produced a reporttitled ‘Getting homeinsurance right’ (released in2005), which showed thatbetween 27% and 40% ofthose Canberra home-owners affected by the fireswere underinsured. As a result, some homeowners wereforced to borrow more money to cover rebuilding costs.

However, they could have averted disaster with a few simplesteps, including a room-by-room inventory of belongings. Thisenables homeowners to calculate the costs of brand newreplacements. Once armed with this information, contact yourinsurer to confirm you have the right level of cover based onthe replacement cost of all your belongings. It might mean ahigher premium, but it’s better than being caught short.

Fixed or variable rate homeloans – the pros and cons

Win $25,000 of homefurnishings with First NationalThroughout October, FirstNational Burnie is offering thechance for one lucky individualor family to update their homewith $25,000 worth of brandnew furniture and energyefficient appliances.

First National Real Estateadopted an energy efficiencystance in 2009, issuing itsnational network of offices withan Energy Efficiency Kit toassist its agents to reduceenergy consumption in theiroffices and their customers’homes.

To enter the competition, visitburniefirstnational.com.au andfollow the links to the SuperMassive $25,000 Giveaway.Just answer a couple of simplequestions and submit your entryform to be in the running for the$25,000 voucher.

October 2010