landlords' newsletter november 2012
DESCRIPTION
Landlords' Newsletter November 2012TRANSCRIPT
In this edition: How long will it take for your property to rent? Standing out from the crowd Make the most of your investment dollars Don’t Let Rain become a Drain… How to Prepare Your Drains for the Rainy Sea-son! 10 Tips for if Your Tax is Audited…
November 2012
Want to Know the Number One Tip for Getting the Best Deal with Your Home Loan? A Selection of Properties Recently Leased Quote Calendar of Events
Tis The Season To Be Selling (and Renting)...
Spring season is well and truly
here and and Summer abun-
dance hot on its heels, with sales
flowing through October that are
literally seeing us making sales
every day :) By contrast, the rent-
al market continues to be patchy
and days on the market are vary-
ing depending on the price range,
area and property. As we move
into the busiest season, our Jan-
uary to February period, we are
seeking instructions asap from all
owners with leases expiring be-
tween now and the end of Febru-
ary as to whether or not you
would like us to renew the lease
at that time (remembering that 2
months notice is needed if your
tenant is to vacate).
We will of course then make rec-
ommendations as to rental in-
creases that should be proposed
for the tenant if they would also
like to continue and extend their
lease.
We also have a special offer
available for any new manage-
ments signed up with us before
Christmas. If you list a property
with us we will pay for profession-
al photos and if you refer a friend
or family member we will give
both of you professional photos
for one of your properties and the
new management.
With Melbourne Cup coming up
next week we hope you back a
winner. Please note we will take
a few hours to enjoy and watch
the race that stops the nation.
We will of course will be hard at
work before and after the race
festivities.
Wishing you a month of wins and
success.
Christina
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
How long will it take for your property to rent? That of course depends on the time of the year so here are the latest statistics for October. BRISBANE STATISTICS The Market Source: rentfind.com.au
Brisbane, QLD September 2012 Annual Change
Median Weekly Rent - House $390 1.3%
Median Weekly Rent - Unit/Apartment
$370 2.8%
Days on Market (Avg) 24.5 1.0
Days Vacant (Avg) 14.1 2.1
Standing out from
the crowd
Every would-be tenant has expe-
rienced the dismay of visiting a
potential rental property only to
find it's in poor condition.
Most renters would be prepared
to pay a little bit more for a prop-
erty that is well cared for, attrac-
tive and has a good kitchen,
bathroom and plenty of storage.
Well-maintained rental properties
have obvious benefits for renters
but making sure your property
has rental appeal can have gains
for landlords, too.
RUN property CEO Rob Farmer
suggests making your investment
property as attractive as possible
to tenants is the best way to
boost rental income.
''The smartest property owners
know that they can spend a little
to earn a lot. Some landlords are
reluctant to spend money, but
they do not realise that approach
is a false economy if the property
does not lease quickly or does
not achieve the rental growth that
it could,'' Mr Farmer says.
Rebecca Ady, senior property
manager at Kliger Wood, says
many landlords look at a rental
property as cash flow and don't
realise they need to continue to
Colin and Natasha Hibberd have the knack for turning tired rental properties into fresh, attractive spaces. photo: Ken Irwin
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Real Institute of Victoria, Robert
Larocca, estimates there are
about 410,000 rental homes in
Melbourne. Vacancy rates are
going up, too, with the rate ex-
ceeding 3 per cent this year, the
highest since 2005.
''Conditions are now easier for
renters than they have been for
seven years,'' he says. ''If the va-
cancy rate falls below 3 per cent,
the balance is then in favour of
landlords and there are not
enough [rental properties] to go
around.''
Mr Larocca attributes the easing
of vacancy rates to a slowing of
the population growth rate and an
increase in building. ''If the pres-
sures on the market continue to
ease, the trend for vacancy rates
will continue to be up.''
An easing rental market gives
potential tenants more choice
and puts pressure on landlords.
Making your property more ap-
pealing to renters is key to suc-
cessful property investment, says
Mr Farmer, and it's also crucial
that landlords do their mainte-
nance on time.
''Delaying maintenance is often
counter-productive to achieving
rental growth,'' he says.
Rental appeal a matter of using
nous to achieve the best out-
come
Colin and Natasha Hibberd have
created a successful business
out of renovating rental proper-
ties. ''We focus on very tired, very
unloved properties and turn them
around quickly,'' says Mr Hib-
berd.
The couple's business, Hamley
Constructions, started out as a
property maintenance company
but has expanded to include
property makeovers and renova-
tions. It focuses on good-quality
renovations that can be turned
around quickly so the property is
not off the market too long.
''Often people have very grand
[renovation] ideas,'' says Mrs
Hibberd. ''But it's important to re-
member it's an investment prop-
erty,'' Mr Hibberd adds. ''You
want a good rental return and a
return on your [renovation] in-
vestment.''
invest in it.
''Many ma and pa landlords have
a problem in that they don't have
the cash to sink into the property.
My advice to them is to sell the
property and invest elsewhere.''
Ms Ady says landlords who don't
look after properties can also end
up at the Victorian Civil and Ad-
ministrative Tribunal. ''The basic
requirement from VCAT is that
properties need to be recarpeted
and repainted every seven years.
But you also need to make sure
that the kitchen and bathroom
are up to date.''
Renovating an older property can
improve its capital value and
rental returns. ''Even when va-
cancy rates are at record low lev-
els, tenants show a distinct lack
of interest in properties that are
tired, shabby or lacking in
presentation. The more people
who love your property, the more
will want to rent it, and increased
demand leads to higher rents and
fewer vacancies,'' says Mr
Farmer.
Communications manager at the
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
''I've been into thousands of rent-
al properties and I know what a
tenant expects,'' Mrs Hibberd
says. This generally includes a
clean bathroom with no mould, a
modern kitchen with decent appli-
ances, storage, and carpets and
paintwork in good condition.
The Hibberds say upgrading a
tired property can be a quick way
to increase rental return and en-
sure a property is rarely without
tenants. Their recent renovation
of a South Yarra studio apart-
ment included installing a new
kitchen, renovating the bathroom,
tweaking the layout to include
more storage and better flow and
repainting and recarpeting.
After a six-week renovation the
result was a fresh apartment,
with appeal for a professional
tenant and a weekly rent in-
crease for their client. Before the
renovation the rent was $200 a
week, afterwards it climbed to
$285. The cost to their client was
$32,000, not including loss of
rental income during the work.
Hodges sales agent Andrew
Boyce says he estimates the ren-
ovation has increased the market
value from about $230,000-
$240,000 up to $280,000-
$300,000. Mr Boyce suggests it's
likely the client would easily cov-
er the cost of the renovation in a
sale, even in today's uncertain
property market.
The Hibberds stress that renovat-
ing a rental property is different to
renovating your home. The aim is
to increase rental income and
make sure the money is well
spent. Their tips are:
Invest in good-quality, mid-
range Australian-made applianc-
es. Parts are easier to source
and cheaper to replace.
Aim for classic rather than on-
trend interior design.
Bathrooms need good venti-
lation, basic storage, towel rails
or hooks. Choose a clean and
simple look such as large white
tiles and glass shower screens.
Bathrooms must be properly
renovated if you want to avoid
future problems. Leaks and damp
will damage your property and
are costly to repair. Damage to
neighbouring properties can lead
to legal battles and further ex-
pense.
Low-maintenance gardens
are essential.
Avoid motorised blinds or car
doors. They break down and are
costly to repair.
Avoid built in appliances such
as coffee machines - if they
break they're the landlord's re-
sponsibility.
Source: news.domain.com.au April
1, 2012
Make the most of your
investment dollars
Why do some people struggle to
buy one investment property and
yet others manage to own five or
six? The answer isn't simply that
they have more money.
Investors who are creative in
their approach to financing and
who thoroughly research the im-
portant real estate indicators rou-
tinely achieve their goals faster
and with less hassle.
There are several well-known
ways to increase a property port-
folio. You can take out an interest
-only loan, buy with partners as
Owning an investment property is not out of reach, it simply requires an astute approach. Photo: AFR
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
''tenants in common'' or tap into
your home equity.
All of which help free up cash
flow, enabling you to make more
substantial contributions to a
principal place of residence or to
access cash flow for other invest-
ments. Coupled with buying in-
vestment properties in the right
place at the right time, these tac-
tics have reaped financial re-
wards for many people.
But savvy investors take their
strategies to the next level. Let's
look at some of the less-
traditional approaches to more
profitable property investing.
Varying your income tax
If you're negatively geared, a
good way to improve immediate
cash flow is to ask your account-
ant to submit an income tax vari-
ation form to your payroll office.
This reduces the tax rate charged
on your wages by estimating your
total end-of-financial-year tax po-
sition in advance. Rather than
receiving a lump sum tax refund,
you receive money evenly
throughout the year.
Line of credit with a global lim-
it
This is a line of credit home loan
with a ''global'' or ''umbrella'' limit
and several sub-accounts. It
gives you maximum access to
your equity to optimise your in-
vestment opportunities. The loan
can be operated with multiple ac-
counts under one global limit.
Mortgage Choice spokeswoman
Belinda Williamson says line of
credit accounts can be attached
to a credit card. ''If you earn a
decent income, using a credit
card for expenses should mean
that most of your income stays in
the loan until the credit card pay-
ment is due, which helps to re-
duce the loan balance.''
Targeting distressed vendors
Successful investors don't ap-
praise the properties on the mar-
ket in an area, they try to work
out why they are for sale. Paul
Osborne, of the buyer's advocate
firm Secret Agent, says it's a
smart move to understand
household indebtedness in spe-
cific areas to snare a bargain.
He says many households are
managing to service only the in-
terest repayments, not the princi-
pal amount, of their home loans.
As a consequence, the best buy-
ing opportunities tend to be in
suburbs that have high propor-
tions of household debt.
A secondary dwelling as an
investment
Building second dwellings, such
as granny flats, on the land held
by either an owner-occupied or
an investment property has be-
come a growing trend. These
dwellings can generate extra
rental income and increase the
property's future value.
They also provide depreciation
benefits and must be council-
approved. Lending criteria for
secondary dwellings varies from
lender to lender and it's smart to
monitor how such additions in an
area have shifted property val-
ues.
Choose a loan tailored to your
needs
Depending on your finances, life-
style and investment portfolio,
there are a range of property
loans to consider. Ms Williamson
recommends checking the health
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
of your home loan at least once a
year.
''You should make sure that your
loans not only meet your current
needs but also take your future
needs into consideration,'' she
says. ''Make sure that you are
managing your loan, rather than
letting it manage you.'' Always be
aware that new products are en-
tering the competitive housing
finance market constantly.
Source: news.domain.com.au March
17, 2012
any blockages, breakages or
hazards that may cause prob-
lems when you experience high
rain fall. A CCTV drain camera
can not only see the leaking, bro-
ken or blocked drains, but also
location and depth. This will save
time and money on any repairs!
Dispose of waste properly
When substances, such as fats,
oils and objects other than waste
water, are flushed down the drain
they cause major problems. You
can help prevent drains and sew-
ers becoming blocked or dam-
aged by using drain sieves and
locating a rubbish bin convenient-
ly near the toilet, bathroom and
kitchen sinks for the disposal of
all debris. It's also a good idea to
keep the bathroom and toilet
doors closed when possible as
a deterrent to small children and
their toys.
Use a licenced Plumber for all
new drains
A licensed plumber is required to
complete all sanitation, water
supply and drainage work. The
importance of this is that storm-
water drainage and sewer pipes
systems are seperate and can
cause serious pollution and
health risk if mixed up. This could
also result in prosecution if sew-
age is disposed of in stormwater
drains or if rainwater incorrectly
connected to sewer pipes leads
to sewage overflow. Plumbers
are also aware of local utility and
council requirements for new
connections and other plumbing
work.
Cleaning of drains and gutters
You can help prevent blocked
drains by regularly cleaning out
your gutters and down pipes of
leaves, twigs and debris. This will
prevent debris being washed into
the drains when the summer rain
starts to fall.
Plant vegetation away from
drains and sewer pipes
It's a good idea to keep vegeta-
tion away from drains and sew-
ers wherever possible and plant
new trees at least 3m away. Con-
versely, when installing new
drains or sewer pipes try to keep
them at least 3m from estab-
lished trees. You can consult
your local nursery for advice
about suitable trees and bushes
to plant.
Take care with backyard land-
scaping and construction
Don’t Let Rain become a
Drain… How to Prepare
Your Drains for the Rainy
Season!
Damaged or blocked drains, sew-
age pipes or stormwater drainage
can quickly become hazardous in
wet weather. Below are some
practical suggestions to help you
prevent the rainy season from
spoiling your holiday season:
Drain and sewer pipe survey-
ing
Using state of the art equipment,
a quality plumber will survey your
drainage system to help identify
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Be careful when completing any
backyard work that you don't
damage any drains or sewer
pipes by digging or the weight of
heavy machinery. It's a good idea
to take advantage of the Dial be-
fore you Dig referral service to
identify the location of any under-
ground sewer pipes or drains that
could be damaged. A ruptured
sewerage pipe could cost you in
fines and repairs, and result in
serious health issues to your
family.
Source : Neil T Fallon
ATO straight away and limit
the damage
Keep your receipts and
have them all in order and
ready for the tax office
Make sure you have a de-
preciation schedule from a
quantity surveyor if you are
claiming depreciation for
rental properties
Have a 13-week log book
for car deductions
Seek professional advice
from a tax lawyer/
accountant who has experi-
ence in dealing with ATO
tax audits
Get everything prepared in
advance – bank state-
ments, records, invoices
and receipts
Be honest, and explain an-
ything relevant in as timely
a fashion as possible
Don’t sign anything until
you fully understand the
document, and agree with
the conclusions that it has
come to
• If necessary, seek a payment
plan or a retraction of penalties
Source : Your Investment Property
(17 July 2012)
10 Tips for if Your Tax is
Audited…
What do you do if the ATO
comes knocking to make sure
that all of your property invest-
ment deductions are genuine?
Don't panic, Your Investment
Property offers 10 bite-sized tips
to get you through the audit pro-
cess.
Don’t freak out. You are
innocent until proven guilty
If you have done the wrong
thing then fess up to the
Want to Know the Number
One Tip for Getting the Best
Deal with Your Home Loan?
How do you know which lender is
offering the best deal for your
home loan? There are so many
different interest rates and deals
available.
In order to make it easier for con-
sumers to work out the true cost
of a mortgage, all lenders must
disclose a benchmark compari-
son rate in their advertising of
home loans and personal loans.
Designed to reflect the total an-
nual borrowing cost, it wraps up
all the interest payments and
fees, showing them in a single
percentage figure. For instance,
a bank's advertised interest rate
may be 5.49 per cent, but its
comparison rate 6.75 per cent.
Source : Quartile Property Network
(2 August 2012)
15 November Mid Month Accounting 03 December End of Month Accounting
A Selection of Properties Recently Leased
Arana Hills House $420p.w.
3 bed, 1 bath, 1 car accommodation
Quote
"Those who bring sunshine into the lives of others can-
not keep it from them-selves."
-- James M. Barrie
Coorparoo Townhouse $500 p.w.
2 bed, 2 bath, 1 car accommodation
RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5221 FAX 07 3876 5544
www.profilerealestate.com.au Bardon QLD 4065 TEL 07 3510 5227 Nikki [email protected]
www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen [email protected]
Marcia [email protected]
Errors & Omissions: These details have been prepared by us on information we have obtained and while we trust it to be correct, is not guaranteed by us and you should rely on your own enquiries.
Brisbane City House $560 p.w.
3 bed, 1 bath, 2 car accommodation
Calendar of Events