PROPERTIES FOR PRIVATE SALE OR AUCTION, WHAT YOU NEED TO KNOW AS A BUYER!

When you are glued to relaestate.com looking for a property for sale and attending multiple house inspections, it’s good to know what you can expect from a property being for private sale versus it being up for auction.

It can be daunting, especially as a first home buyer, to step into the ring of property negotiations. We understand this so we have put together a few tips, and outlined some pros and cons to buying at auction and buying via a private sale to help you feel well equipped with information and be ready to make that dream property yours!

WHAT IS THE DIFFERENCE BETWEEN PRIVATE SALE AND AUCTION?

An auction is when prospective buyers come to bid on a property on a specified date and time, whereas with a private sale, there is no fixed time frame – the property is on the market until it sells.

PRIVATE SALE – WHAT TO EXPECT

There are quite a few pros to a Private Sale as a buyer. One of the main ones is it’s a less stressful environment, and there is less urgency than at an Auction. You have the freedom to negotiate with the Vendors via a Real Estate Agent without as much pressure on time.

Further pro’s to a private sale include;

Flexibility in terms, you can incorporate specific terms into your contract to suit your needs. This can include when a deposit should fall due or when settlement should be.
As a general rule, buyers will get a three day cooling off period from the date they sign the contract, so there is an option to opt out if you need to.
Private sales allow you to place conditions in the contract for your benefit, such as ‘subject to finance’ or ‘pest and building’ clauses.

There is a couple of con’s when it comes to private sales. There may not be immediate certainty that the property is yours until it goes unconditional. Also, you may be unaware of how much competition you have when making your offer, as you are just dealing directly with the Real Estate Agent.

AUCTION – THE PRO’S AND CON’S OF BUYING AT AUCTION

One of the pro’s to buying at auction is that you have certainty. When that hammer falls, it’s all yours! Not only that, but you know exactly who your competition is and how much interest there is at the Auction.

There are a few con’s or things to be aware of when bidding at an Auction;

Sense of urgency has to be the main one, it’s easy to get swept up in the emotion of an Auction, it can be an intense atmosphere.

The direct competition and pressure of the situation can make you go a bit further out of budget than you like, so be aware of this before you go into the situation and know how much you have to spend and when to let it go.

Further points to consider;

It is an unconditional purchase which means there is no cooling off period or conditions for your protection.
You will need a deposit on Auction day. Usually, Vendors will require a 10% deposit to be payable on the Auction date. This amount will, of course, vary according to the sale price.
Unknown Reserve, a ‘reserve’ refers to the lowest price the vendor is willing to sell for. It isn’t easy to know where the goal posts sit at an Auction.

The key here is not to get caught up in the environment of an Auction, to know what you can spend and have a plan to keep calm under pressure.

“Home sweet home. This is the place to find happiness. If one doesn’t find it here, one doesn’t find it anywhere.”

M.K. Soni

In summary, whether buying via private sale or auction, do your research, know your budget and what you really can afford, stay calm and have a plan! We wish you the best of luck and remember we are just a phone call away.

Click here to see the latest auction results Melbourne and if you need some tips on saving for a house deposit to buy that dream home, be sure to check out one of earlier blogs, How To Grow Your House Deposit.

The post Properties for Private Sale or Auction, What You Nee d To Know As A Buyer! appeared first on Future Finance Group .

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4 Tips For Finding That Perfect High Yield Property

By Kola Dev • March 19, 2025

Any property guru worth their salt will tell you that a dream property investment has nothing to do with a prestigious address or sleek amenities. The ultimate goal, is to find that perfect “high yield” property that will give you maximum returns for as little input as possible. Yield refers to the amount of cash a property produces as a percentage of its value and is calculated by the rental income you are receiving compared to the purchase price. There’s a lot more that goes into the calculations, which I’m happy to run you through, but to give you an idea on what to look for, I’ve put together some simple tips. 1. Do your research. There are plenty of stats out there that will give you the median rental yield for each suburb. This is a great place to start! 2. Look for dual income properties such as a house with a granny flat. You can potentially have two streams of rent coming in, meaning the chance for a higher rental yield significantly increases. 3. Have you thought about looking rurally? Country towns offer some great properties at a low price and because the cost of living is low, the rental yields tend to be higher. 4. Always think forward. Be on the lookout for up-and-coming areas and ask yourself if they’ll still be flourishing in five years time. At the end of the day, you need to be realistic. Just because a property has a high yield doesn’t mean it’s going to be a great investment. As a mortgage broker, I can talk you through your options for investment loans so you can see what your monthly outgoings might look like. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment.

7 Quick Ways to Upgrade Your Home

By Kola Dev • March 19, 2025

The continuing boom in property prices has tempted many homeowners to invest in renovations to maximise the value and then put their home straight on to the market. There’s no doubt you stand a better chance of enjoying a great return on your investment if you modernise your home. Properties that enjoy a mix of the traditional and the contemporary are in big demand among today’s buyers and nothing ticks the boxes more than a brand new kitchen or bathroom. Two increasingly popular features at the moment are a dedicated home office and a design that connects the indoors with a garden or entertaining area. But renovation projects of this size can become expensive. If your budget doesn’t allow for large-scale upgrades, there are plenty of ways to enhance the value of your home at little cost. Here’s a seven-point guide to upgrade your home. 1. Break out the brushes It’s amazing how a fresh coat of paint will improve a property. Don’t focus only on the walls but attend to the skirting boards, ceilings and architraves. Select neutral colours as these make rooms feel bigger. 2. Go green Small-scale improvements to your gardens work wonders. Focus on the front yard as this creates an all-important first impression. 3. That’s entertainment If your property lacks an area to entertain, this is a great low-cost project to enhance your property’s desirability. Consider adding a deck or a barbeque area. 4. Floor ’em A mixture of different floor types can make a home feel bitsy while a home with consistent flooring creates a great sense of flow. Replacing the floor can be a painful project but you’ll be amazed how much bigger your home feels. 5. Say it with storage You can never have too much storage. A bedroom without built-in robes is just asking for clothes on the floor. Think about storage in bedrooms, bathrooms, kitchen and laundry and looks at ways to create clever storage solutions in nooks and under the stairs. 6. Kitchen upgrades If yours is a little tired, don’t worry – you don’t have to rip it out and spend big dollars. Consider replacing only the doors, drawers and handles. You’ll achieve a transformation at the lowest possible cost and it will feel like new. 7. Unbeatable bathroom Like the kitchen, this can be an expensive renovation. You can avoid replacing tiles by using a professional company to spray-paint them. This treatment can also be applied to sinks, baths and showers. New tapware and shower screens complete the refresh for a fraction of the cost of ripping and replacing. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment. *This article is provided for general information only and does not take into account the specific needs, objectives or circumstances of the reader. Before acting on any information, you should consider whether it is appropriate for your personal circumstances, carry out your own research and seek professional advice.

7 Tips for Organising Your Finances Before You Buy A Home

By Kola Dev • March 13, 2025

There are many tips for buying a property, but there’s one essential element that no one can avoid - getting your finances in great shape before you start. Knowing what you can afford is a critical element of finding your first home or the next one that takes you higher up the property ladder. The most successful buyers begin their search with their finances in order and a pre-approval letter from their bank or lender. They know their budget and tailor their efforts accordingly. There’s no greater waste of time than visiting properties that are beyond your price range. Using a mortgage broker can help you shortcut the hours of research through various banking products and good brokers have detailed market knowledge and can offer an array of products. We can suggest the loans most suitable to your circumstances and assist you with paperwork, and review your credit history. We can also help you understand any grants or tax exemptions from state and federal governments that you may be eligible for. Below are a few tips for securing the finance that will help you find your dream home. 1. Clarify your finances If you’re a homeowner, you’ll need to obtain a valuation on your current property and provide proof of current earnings. A first-time buyer will ideally have 10% of the purchase price as a deposit to get the best interest rate and conditions for their first loan but the more the better. Money for legal fees, property inspections and taxes need to be set aside, too. Make sure your tax returns are up to date to prove your earnings. It will make life easier. 2. Low barrier to entry You can obtain a conventional loan with as little as 5% of its total as your deposit. Some government-backed loans do not require a deposit. 3. It pays to save The more you save, the less you borrow. And that means lower your monthly repayments for you over the term of the loan. 4. Go for a grant First-home buyers should research the current grants from various levels of government that are designed to encourage them into the market. 5. Credit crunch You’ll need a good credit history to be attractive to lenders. Check yours out by using companies such as Experian and Equifax. If your track record is not the best, we can discuss ways to address this. If errors appear in your credit history, dispute them immediately. 6. Find the right loan You can save thousands of dollars by choosing the right mortgage product for your situation. It pays to shop around and make a note of not just the interest rate but the fees that come with it and other services that may be offered. As your mortgage broker, we can guide you through this process. 7. Be pre-approved A written undertaking from your lender will help you focus on what you can afford, as well as signal to a prospective seller and their agent that you’re not kicking tyres. Watch out for lenders who will only “pre-qualify” you, as this represents only an estimate of what you can afford and does not offer any guarantees of intention to lend. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment.