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Home owners and buyers are once again feeling the pinch to keep their dreams of home ownership alive as housing affordability returns to the property market agenda.  But, First National Bribie Island First National Principal, Lyn Petrohilos says it’s a matter of rethinking options and developing creative strategies.

Impending future rate rises, along with tightening lending conditions and increasing mortgage stress concerns have started to take their toll on home buyers’ ability to own their own home.  According to Lyn, home buyers need to take action on an individual level to tear down the wall of housing affordability in any way they can.

Recent research has found a decline in the number of home loans with a high loan-to-value ratio (LVR) of 95 per cent or above.  LVR refers to the amount of money borrowed for a property, compared to what the property is worth.

Lyn says while lending criteria has toughened in recent months, there are still lenders willing to negotiate a better deal around a number of factors such as fees or rates or the actual LVR itself.

“Lending institutions need to be willing to negotiate and be a little more flexible,” Lyn said.  “And there are plenty of lenders out there who are willing to do just that, if home buyers are willing to shop around a little and do a bit of homework themselves.  It’s up to the individual to take matters into their own hands and ask.

“But they need to have the facts that support their case as well.”

Some key tips for overcoming housing affordability concerns include:

• Time your purchase for when there is a lull in the market, such as Winter, when the market generally slows and lower demand can potentially tip the balance in favour of buyers.

• Calculate what you can afford to spend, factoring in any interest rate increases, probably 2 per cent higher than current levels.  Match this to your list of preferred suburbs and concentrate on properties that are genuinely within your range.

• Be flexible and adjust expectations as required.  You may dream of buying a home in a particular area, but consider a smaller home, or even a unit or apartment, with a view to upgrading later.  Alternatively, consider an area a suburb or two removed from your where you would like to live.

• Start a disciplined saving strategy immediately.  Set realistic savings goals and set up an achievable budget for household expenditure.

Lyn also had some sage advice for home owners currently experiencing mortgage stress.

“Home owners can consider extending the life of the mortgage,” Lyn said.

“In recent years, all the focus has been on how quickly a family can pay back the mortgage and then move another rung up the ladder.

“Obviously, that is the most desirable situation, but times are changing and it may be more useful to focus instead on how to get into the market in a way that is financially manageable.

“But whatever they do, they should seek the services of a qualified, reputable and trustworthy financial advisor.”

Welcome to our monthly informative feature articles highlighting the latest trends & updates pertaining to the Real Estate industry....

With around two-thirds of Australian households owning a pet, there are plenty of tenants out there looking for pet-friendly accommodation – a tough ask, but one that Schrags Bribie Island First National says can be overcome by being responsible.

“Landlords aren’t out to rid the world of pets, they just want to know that you are a responsible pet owner that will respect their concerns, and their property,” Lyn Petrohilos, Schrags Bribie Island First National, said.

“Responsible pet owners make excellent long-term tenants and tend to abide by the housing rules, because they know it can be difficult to find animal-friendly accommodation elsewhere and want to avoid the difficulty of having to look for it.

“So, they will go to greater lengths to look after the property and keep their landlords happy.”

According to Lyn there are a few tips pet owning tenants can keep in mind to show a prospective landlord their properties will be in safe hands.

·         Be a good neighbour.  Provide your pet with plenty of attention and exercise, so that its physical and social needs are being met.  By doing so, you will cut down on nuisance barking, one of the most common complaints of neighbours.  Clean up after your pet, preventing not just a messy smelly yard, but also a serious health issue.  Consider enrolling in obedience training and grooming.  Nothing says ‘responsible’ to a landlord and neighbour better than a well-behaved well-groomed pet.

·         Honesty.  Do not try to sneak your pet into a ‘no pets allowed’ property and do not misrepresent your pet’s breed.  Some pet friendly properties restrict certain breeds or have weight limits or restrict the number of pets allowed.  If you are not completely honest with your landlord and get caught, this just makes landlords more hesitant to rent to pet owners.  Remember, this may not just be your landlord’s rules, some municipalities have Breed Specific Legislation or Pet Limit Laws. Check with the local Council.

·         Show goodwill.  Write up a Sample Contract to present to your potential landlord stating that you agree to abide by all of the property rules including cleaning up after your pet, keeping your pet secure and supervised at all times, ensuring your pet is friendly and approachable to neighbours and to keep your pet  vaccinated and free of fleas, ticks and parasites.  If it is not in your rental agreement, offer your landlord a pet deposit to make it perfectly clear that you are responsible for any damage to the property caused buy your pet.  This will not only make a lasting impression, but show your landlord that you are serious about renting and that you will care for the property.

Landlords should also keeping in mind that a well-managed, pet-friendly rental offer can help improve their returns, broaden the pool of prospective tenants and also promote a sense of tenant safety and security.

“Responsible pet owners make excellent tenants because caring for pets takes as much, or more, effort and responsibility as caring for where we live,” Lyn said.

“What’s important for the landlord is to have a clear set of guidelines on keeping pets on the property.”

Other investors prefer to find a quicker path to real estate riches through one of the following ways.

Buy and Flip

Flipping means selling the property you just bought for a higher price as soon (or in some cases before) you take title on the property. While flipping allows you to make money fast in a hot market (or on a property you purchased well below market value), you may need to pay capital gains (talk to your tax advisor).

Buy and Scrape

Scraping is tearing down an existing home and building a new home. To capitalize on this idea look for areas where home prices are rising, vacant lots are few, and there’s an inventory of older homes. While there are many permits you need to obtain, scraping can be a very lucrative process.

Buy and Split

Just as you can buy one lot and split into two, you can also buy one house and subdivide into two homes right down the middle, or buy a larger house and develop each floor into several apartments. Another variation is to buy a house with a large lot, subdivide the lot, rent out the house, and sell off the land.

Smart real estate investors look at existing properties with new uses in mind (and they check into all building and zoning regulations).