Fletchers Forum

Ask your questions for a Fletcher agent to answer below. Your question and the corresponding answer will be published once it is answered and approved.

1. Rating: +0

   

   What is average real estate commission/fee on rental properties in Melbourne's North

   Agents located in the northern suburbs of Melbourne tend to charge a management fee of 5.5%. However at this level they do not really do much for their management fee other than collect the rent and manage repairs re-actively.

   If you meet an agent who charges 7.7% for their monthly management fee and can demonstrate to you that they will look after your home in a highly professional manner offering substantially more service then I would recommend paying it!
   Andrew Patterson
   Company Property Manager

2. Rating: +2

   

   How much should i offer if the advertised price of a home is $590000-$650000? The house is in Mount Waverley and is 740sqm. The agent is going to accept an offer and compare it with other offers and will give it to the highest bidder. Thanks.

   Thank you for your email and good question about a potential purchase. There is no easy answer to this but the best advice I can give you is to make sure you have all of the information you can get before you proceed, e.g. try to find out how many buyers are interested (the agent may not reveal this) and look at recent local sales of similar properties in the area to compare. You have not mentioned what the method of sale is and your strategy would be dependent on this. Is it an auction, private sale, sale by negotiation or an expression of interest?

3. Rating: +1

   

   Our teenager wants us to turn our unused garage into a studio (without a bathroom and kitchen) so we would use our driveway for parking our cars. If we did this would we get out money back when we decided to sell?

   Your investment in the proposed renovation is highly relevant. The design is most important in that the cost could be kept down to say $10,000 then the chance of recouping the expense would increase. However, it is important to remember that some people prefer to park their cars under cover so perhaps you should consider the possibility of erecting a carport in your driveway.
   A well-finished and attractive studio would no doubt add value to your property and, even without a bathroom, it may prove very suitable for a teenager, although it would be prudent to seek council approval before proceeding.

4. Rating: +1

   

   Is there a problem if I deviate from the normal Heritage colour scheme that most of our neighbours have used?

   Period style homes look more appealing and are certainly worth more if they are decorated and painted in the colours indicative of their era. There is no reason for you not to be a little more adventurous, without going overboard. However, if you are going to sell your home it is best to appeal to the majority of purchasers by being a little conservative. Naturally, a contemporary style home should not be painted in period style colours and conversely it is not wise to paint a period style home in bright, contemporary style colours.
   Before undertaking the work, it would be wise to speak to a local, progressive real estate agent about your idea. They can enlighten you on current trends and maybe even provide you with a few addresses so that you can see how different colours look. Needless to say, a quality paint job is expensive so it is worth doing some careful research to avoid a disastrous result that could effect the return on your investment.

5. Rating: +0

   

   I have a large block of land that I am thinking of subdividing into 4 but I don't know where to start?

   Talk to your local real estate agent first for advice on what type of home is suitable and what is currently in demand. Local planning schemes must be checked to determine what is feasible and a title search must also be done to reveal any easements and restrictive covenants .

   A surveyor can help prepare the plan of subdivision and a town planner can help with planning issues through council. As well as a builder, you may need an architect or draftsperson to assist with the design. An application must then be made to your local council to register the plan of subdivision, which can be prepared by your legal representative. New titles will be issued once the plan is registered.

   It may also pay to approach your neighbours before proceeding to reveal any potential objections

6. Rating: +4

   

   I own a property in Balwyn North, it has 3 bed rooms and 1 bathroom and is located close to public transport a shopping strip. I am intersted in selling within a few months and I am wondering if this is the right time to sell?

   As a rough indication of house prices in Bawlyn North a property we recently sold -2/8 Heather Street, sold for $107,000 more than the reserve price when it went to auction.

7. Rating: +1

   

   I have just sold my property but would really like to take the drapes with me as they match my furnishings, what can I leave and what can I take?

   This is a very important question as when you sell a property you should be clear from the outset about what comes with the property and what does not. The usual chattels are fixed floor coverings, drapes, blinds, light fittings and fixtures such as a dishwasher. If you want to take some special drapes with you, you should either swap them before you start the marketing, or, if you wish to leave them for display purposes, specify clearly in any marketing material that they will not stay.

8. Rating: +1

   

   I want to replace my fence but I am unsure how to go about it as I suspect my neighbour will not agree?

   The way you approach your neighbour is important. Don't take the attitude of

9. Rating: +0

   

   What does the term tenants in common mean?

   Tenants in Common is a form of ownership that means the parties included have an undivided possession of a property so that no one has exclusive rights to it. If one person dies, his or her share passes not to the survivors but to his/her devisee who then becomes tenant in common with the survivor/s.

   The other form of ownership is joint tenancy which means if the person dies the property goes to the other party and can only be disposed of by the will of the last surviving owner.

10. Rating: +1

    

    Do you think it is a good idea to buy something with a friend as I can't afford to buy on my own and I am scared that if I wait it will never happen?

    It is certainly a wise move to get into the real estate market while you can. If you can arrange to purchase something with a friend or relative it is a good idea, providing you ensure that there is a legal agreement drawn up to cover you if something goes wrong. Whilst you or your friend may be in a good position to do this now, it is important to consider a contingency in case either party is unable to pay their share of the mortgage in the future. This would minimise the suffering if you were forced to sell as things can sometimes get rather nasty between parties.

11. Rating: +1

    

    I see reports in the newspapers that tell us about that our house is worth much more than last year. How accurate are these reports and how do they work out these figures that the call median values?

    Pricing has always been a contentious and emotional issue. A property is only worth what someone is willing to pay at the time it is for sale and what an owner is willing to accept.

    The Real Estate Institute of Victoria provide the media with reports on median prices for an area that are based on sales results gathered over a certain period (usually a quarter). The

12. Rating: +0

    

    There is a similar house to mine for sale in my street, would you suggest waiting until this house is sold, before putting my house on the market? or is there any advantages in having 2 similar properties on the market at the same time?

    There is no problem putting your property on the market at the same time as another in the street as no 2 houses are exactly the same so people will probably like one or the other for different reasons. You may as well take advantage of the exposure that the other property will attract to the street but clearly to be of real benefit the homes would have to be in a similar price bracket.

13. Rating: +0

    

    I would like to see a web site comparing the pros and cons of cash buying versus renting and investing, for a period of 3-5 years. Just treat it quantitatively. In other words, what do you recommend if we look at the market in Wagga? You see, I don't to live in WW long-term, just 3-5 years. There is a property I am looking at valued at $420K: the rent for an equivalent property would be $450-$500 per week, in my opinion. If in doubt, please contact me again.

    Dear Peter,

    Thank you for your question regarding the rule of thumb that some people quote, i.e.

14. Rating: +2

    

    I have heard estate agents tell me their rule of thumb, i.e. 'properties double in value every ten years'. This corresponds to a yearly increase of just over 7%. Obviously, this depends on what you buy and where, doesn't it? My specific question to you is "Does this apply if you buy a good property in Tatton, Wagga Wagga?" In some places, the housing market is almost flat, with little if any appreciation in property values over time. Of course in the capital cities some properties are falling in value (albeit from a very high level), so the rule of thumb quoted above needs some qualification, methinks. Please comment. best wishes, Peter

    Dear Peter,

    Thank you for your question regarding the rule of thumb that some people quote, i.e.

15. Rating: +0

    

    wondering if there is a commission percentage in Victoria which real estate agents have to adhere to?

    Thanks for your question regarding commission percentages in Victoria. Since deregulation commission fees are negotiable in Victoria. As a general rule, they would average between 1% to 4% although you must remember that with any service, you do get what you pay for, and that is not to say that the biggest are the best either. Be careful of those agents that quickly drop the commission simply to win your business.

    It is common to charge a higher commission for a lower priced property as the same amount of work goes into a sale regardless of how much the property is worth. It is also important not to base your appointment on the rate of commission alone but to take into consideration other factors such as how many buyers will your appointed agent reach (what areas they cover) as well as their reputation, knowledge and, of course, that you feel comfortable with them.

16. Rating: +0

    

    my elderly mother owns her own home but wants to live with us as she is finding it difficult to mannage, we have talked about a granny flat but would prefer not to go down that path.while we own our home it is very small.(housing 3 adults and a small child) we have thought of selling both houses and buying something big enough for all of us but dont know how to go about it. any sugestions?

    This is a lifestyle choice that can only be made by you. It depends upon if you want your mother in your home where you can keep a very close eye on her or if you want her to have some sort of independence, in which case you could either build a granny flat or try to find a home that includes some sort of self-contained quarters (not always easy to find).

    The best place to start is to approach a good local real estate agent to ask for an idea of how much both yours and your mother’s would fetch (it also pays for you to monitor what properties are selling for nearby). You might like to consider using your Mum’s property and moving in there if it is larger. You should also do some research into what is type of homes are currently available that would suit and how much you would need to spend. Bear in mind that Stamp Duty in Victoria when purchasing is high, so you would need to factor this into your purchase price.

    Should you chose to add a granny flat to your home you would need to be careful about the type of flat and also you would need to seek permission from your local authority. Some of these buildings do not add much to the value of your property so you may not recoup your initial investment.

17. Rating: +0

    

    i have about $85000 want to invest in property. I am thinking of borrowing about $25000 to buy a block in Marysville (with all the ,oney being put back into the town) or a basic house somewhere like Morwell, to rent out. it is a five year plan. Do you think this is advisable, or can you suggest something better Thanks Fiona

    Thank you for your enquiry. Investing in property is certainly a great idea although you will appreciate that we are not in a position to provide you with personal financial advice. Before starting to look, I suggest that you talk to your financial advisor or accountant in relation to how much you can borrow comfortably based on your personal income and outgoings and how much you should spend.

    The old adage of ‘position, position, position’ still applies. Having said that, you may have personal considerations, e.g. you may eventually intend to live in the home or you may want to be near it so that you can maintain it, etc. You may be aiming for capital gain, for your superannuation, or you may prefer to enjoy the rental income? There are so many variables to consider. Taking into consideration your comment “with all the money being put back into the town” it does sound like you have some sort of attachment to Marysville, which is certainly a beautiful part of Victoria.

    No-one can tell you what will happen in the future, and for $100,000 you will not be able to purchase close to Melbourne. Morwell could be okay but you cannot expect the capital growth you would get in suburbs closer to Melbourne with good infrastructure which will always be in demand and be more likely to appreciate in value in the short term.

18. Rating: +0

    

    Good Afternoon , I saw a program on a while ago mentioning that Fletchers were involved in buying USA properties . Are they setting up a buying service for the general public to deal with ? Thankyou Robert

    Thank you for your enquiry but we have nothing to do with selling USA property. Tim Fletcher has been asked about this topic on radio as a commentator many times and he has warned people to be very wary. The only way he would ever buy property overseas is if he was there and had a good understanding of the market.

19. Rating: +0

    

    Att Belinda Anderson You auctioned a flat in Dene Av, Malvern East, and it went for about 100K more than a similar flat at 240-242 Waverley Rd, Malvern East sold for at the same time. The Waverley Rd flat was fully renovated but on this main road. Is the location that much difference in price? thanks Brad

    Hi Brad,

    Thank you for your question. Belinda has advised that there were several factors which resulted in the higher price for Dene Avenue.

    She is more than happy to discuss this at length with you - her contact number is 0413 811 991 and her e-mail is belinda.anderson@fletchers.net.au if you would like to provide a contact number for her to reach you on.