31 October 1998
VITA PALESTRANT looks at online house-hunting
There's something peaceful and private about house hunting on the Internet. While it isn't the complete answer, it may save you some time and effort by helping you locate a property for sale or rent in your preferred area and price range.
You can also surf the Net to obtain information on mortgages and interest rates, do calculations on home loan simulators to see what you can afford, or you can apply for a home loan online.
But for now, don't throw away your traditional sources of information. Real estate agents still have some way to go to get their act together as they have done in the US, where agents link their listings via one site to make it convenient for people to do their research.
"At the moment it's a challenge," says John McGrath, managing director of McGrath Partners. "Agents don't pool their listings so you need to access a number of Web sites to get information."
Online renting is another challenge, he says, as rental properties move quickly and listings need to be regularly updated. "For an agency to do it properly you need an IT person doing the update daily otherwise it puts credibility at stake."
His agency plans to provide an email service whereby house hunters can specify what they're after and once something comes in that fits the criteria receive an email response.
Virtual tours of all listed properties are also in the pipeline to help people select properties worth inspecting.
"We see this as a method for people to get their weekends back," he says. "They can do a virtual tour rather than have to get into their car and see the property."
McGrath predicts massive changes over the next five years, with agents at the cutting edge providing a one-stop shop for all your needs.
"This is the tip of the iceberg. In addition to property you will be able to get finance, insurance, removalists and renovators. Everyone's looking for convenience in real time, the Internet is a very important tool."
Virtual technology is especially useful, says Grant Simpson, director of project marketing at Century 21, if you want to buy a property off the plan. "It brings to life a property not yet built. It gives you an idea of each room's size, the finishings and textures. It's like walking through someone's home."
Although there's a lot of hype about what you can do on the Internet, such as online auctions where legal problems present a major barrier, for now consumers will have to make do with more mundane activities like information gathering. Even then there are limits.
Stephen Francis, president of the Real Estate Institute of NSW, points out not all agents and their listings are on the Net.
"It's purely an alternative to buying the newspaper. It gives the buyer or renter another opportunity to do research."
Francis says the three major players that agents subscribe to are: www.realnet.com.au; www.property.com.au and www.rpdata.com.au.
PROPERTY PRICES
You can get some idea of current property prices online. The Home Price Guide compiled by Australian Property Monitors on www.apm.com.au offers a useful start.
Managing editor Tony Shanon says the Web site can help you in three ways: it gives a recent history of auction results in Sydney and Melbourne, a postcode snapshot of price movements in the postcode area of your choice and compares it with the surrounding area.
The snapshot section includes information on the area's facilities and amenities, gives local council information and demographics. But if you want details of all the houses and units sold in your area for the last 12 months by address and sales price you have to buy the guide which you can do online. The cost is $39.95 for one postcode or $25 each for more than one.
Shanon says savvy consumers put independent price information on a par with building inspections and pest inspections when it comes to buying a property.
SHOPPING FOR FINANCE
Your Mortgage Magazine, on www.yourmortgage.com.au, offers valuable tips. Managing editor Gregan McMahon says the site can help you work out how much you can sensibly borrow and how to avoid pitfalls.
It will walk you through all the hidden costs of purchasing a property and borrowing money, which can add a further 5 per cent to the total amount required. It will assist you work out things like stamp duty and mortgage insurance. In a lively and useful way, the site provides home loan interest rates and shows you 24 ways to reduce your mortgage, save money and pay off the loan sooner.
McMahon says the Net is handy for making your first inquiries when buying a home, but after that you need to make contact with the companies you are interested in to ask the hard questions.
"The Internet is a great research tool. It will help you find the property you are interested in rather than the property you are going to buy."
Financial institutions provide information on their home loan products online. But Andrew Willink, managing director of interest rate monitor Cannex, feels it is not provided in an easy format that allows you to compare the virtues of one type of loan with another.
For independent interest rate comparisons tap into www.cannex.com.au. It compares 160 lenders and gives all fees and charges as well as the annual average percentage rate. It is an excellent reference for anyone shopping for finance.
Although many lenders will allow you to apply for a mortgage online, Tim Jones - deputy managing director of AMP Banking - says most people are reluctant to give their financial details on the Net. "They are not quite sure of it yet and are using it mainly for information gathering."
But CBA's Bryan Fitzgerald says the bank receives about 60 online applications a week.
"People are looking for convenience. It's easier to fill in the application at home where you have all your details and information at your fingertips. We're very happy with the uptake."
The last word goes to Willink, who warns people not to part with their financial details lightly. "You really have to be careful that the institution has credibility and is known to you."