PROPERTY MANAGEMENT

NEWS  

 

November-December 2014

CHRISTMAS OFFICE CLOSURES

Maryanne Birch Real Estate office will be closed from 5pm Tuesday 23rd December 2014

and will re-open for normal trading on Monday 5 January

2015. Emergency Staff are on call during the Holiday Break.

Routine Notices and End of Month Statements will be

dispersed as usual.

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To  Our  Loyal  Clients,  Friends  and   Followers   of   MBRE,   I  would   like   to   take   this  opportunity   to   say   a   special  thank   you   for   a   wonderful  and  hugely  successful  year  at  MBRE.  

In   this   (last)   Newsletter   for  2014,   I   would   like   to   recap  on  some  of  the  high  and  low  lights  of  2014.  

We   began   the   year   with   a  Logo   birthday   –   a   re-­‐invention   of   our   original  Logo   giving   our   signage   a  modern   face-­‐lift.    While   the  entire   new   badging   changes  will   not   be   fully   in   effect  until   mid   2015,   we   have  received   rave   feedback   to  date.  

The   Sales   Market   has  rebounded   with   buyer  confidence   levels   which   we  have   not   seen   since   2008   –  thanks   mainly   to   sustained  low   interest   rates  throughout  the  entire  year.  

Property   Management     -­‐  Amazing   Team,   Amazing  Results!!!    

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I   would   like   to   take   the  Opportunity   to   Personally  Thank   our   MBRE   Property  Management   team   for   a  truly  mammoth  year!!!!!    

Never   mind   the   usual  challenges   in   Property  Management    –  we  have  just  encountered   the   worst  rental  downturn  ever  seen  in  our   otherwise   very   robust  rental   market.     With  unprecedented   vacancy  periods   testing   everyone’s  reserves,   our   rental   team  battened   down   and   showed  a   professional   grit   that   I   am  truly   proud   of.   Instead   of  bowing  to  the  pressure,  they  used  this  challenge  to  review  our   systems,   streamline   our  procedures, introduce   new  programs   and   in   so   doing  have   smashed   our   vacancy  list   to   an   almost   ‘normal’  level.    

Freak   storms   and   a   city   in  lockdown   for   the   G20   have  all  been  taken  in  their  stride.  

Regular   In   House   and  External   training   has   been  

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formally   introduced   within  the   past   6   months,   which  has   not   only   taken   the   role  of   mentoring   recruits   to   a  new   level,   but   also  reinvigorated   the   senior  team   members   to   take   on  new  roles  and  qualifications.    

The   biggest   change   to   our  industry   legislation   starts  today   with   the   introduction  of  the  Property  Occupations  Act   2014   which   will  supersede   the   PAMD     Act  (Property  Agents  and  Motor  Dealers  Act).    

Although   most   of   the  changes   have   been   brought  about   to   streamline   and  simplify  our  practices,   there  will   also   be   the   need   to  become   familiar   with   the  new   rules   and  documentation.   Our  commitment   to   compliance  will   be   ongoing   in   this  transitional  stage.  

We   wish   to   all   for   a   Merry  Christmas  and  a  Happy  New  Year   from   all   the   Team   at  MBRE.    

Property  Of  The  Month  –  Position  of  the  Decade!!!    http://www.maryannebirch.com.au/1878025/    

Every  once   in  a  while  we  come  across   a   truly  unique  property.  This  may  be  a   remarkable  architectural  or  historic   feature,  but  sometimes  it  is  just  a  ONE  OFF,  very  special  position.  

28  Pine  Street  holds  this  crown.  Perched  on  the  very  edge  of  a  hill,  it  not  only  owns  a  city  view  to  die  for,  you  can  rotate  180  degrees  and   see   everything   in   other   directions   too.   It’s   2   level   modern  design,  embraces  the  ultimate   lifestyle  package    -­‐  Views,   climate  control,   convenience   entertainment   and   comfort   –   and   its  FREEHOLD!!!     Make   your   Downsize   an   Upgrade.   This   prestige  package  will  hold  it’s  own  in  any  decade.  Buy  and  move  in  –  you’ll  be  there  for  life  –  or  rent  it  out  and  reap  capital  gain  benefits  that  will  outstrip  its  competition.  

 

 

Sales  In  Your  Area  For   our   Property   Owners,   we   have  attached,   with   your   Statement   a  current   “Sales   in   Your   Area”   report  featuring   recent  sales  close   to  your  investment  property  within  the   last  6  months.    These   reports   are   not   refined   by  category,   they   are  simply   an   across  the   board   RP   Data   report   of   all  sales.     There   has   been   growth   in  sale   prices   in   most   inner   Brisbane  suburbs   both   in   house   and   unit  sales,   and   this   applies   to   both   the  entry  level  and  prestige  ends  of  the  market.  This   is   mainly   attributable   to   the  sustained   record   –   low   interest  rates   offering   ongoing   affordability  to   both   first   home   buyers   and  investors.  

End  of  Year  Wrap  Up  

Worst  Storm  in  30  Years  Hits  Brisbane  

Our  unseasonably  hot  dry  November  ended  on  Thursday   27   November,   when   a   storm   cell  swept  a  path  of  devastation  through  Brisbane.  Those   unaffected   couldn’t   believe   that   this  event  occurred  on  their  doorstep.  While  roofs  were   literally   ripped   off   buildings   in   some  suburbs,   hardly   a   drop   of   rain   was   felt   a   few  streets  away.    

Violent  winds,  a  month’s  worth  of  rainfall,  and  tennis   balls   sized   hail   caused   chaos   through  the  city  last  Thursday  afternoon.  Its  aftermath  will   keep   insurance   companies   and   associates  busy   for   many   many   months   –   dealing   with  hail   peppered   cars,   broken   windows,   flash  flooding   and   other   associated   repairs   that  follow  an  event  like  this.    

The  entire  MBRE  car   fleet  now  resembles  golf  balls  with  their  distinctive  cratered  effect   that  only  hail  can  cause.    

Special   thanks   to   our   Property   Management  Team  who   quickly   adapted   to   their   overnight  Emergency   Service   roles   –   these   ranged   from  evacuating   tenants   from   condemned   unit  blocks   to   arranging   tree   loppers   to   clear  driveways,   arranging   repairs   to   multiple  broken   windows,   flooding   events   and   much  more  in  between.      

Many   contractors   are   working   hugely  extended  hours  to  bring  essential  services  back  on,   and   it   will   be   some   time   for   order   to   be  restored   for   some,   but   a   good   thing   is   that  there  was  not  reported  loss  of  life.  

Changes  to  Legislation  and  Keeping  Up  with  Compliance  Another  change  in  legislation  is  upon  us  as  of  01  January  2015.    

ALL  NEW  blinds   installed  as  of  01   January  2015   require  the  cords  and  chains   to  be  fixed  with  cleats  to  the  wall  at  the  correct  height  out  of  the  reach  of  children  and  all  must   carry   warning   tags/labels.   With   pre-­‐existing   blinds   and   curtains   it   is   not  mandatory   however   it   is   strongly   recommended   as   best   practice   that   the   same  occur.  

In   order   to   comply   with   this   legislation   we   are   pleased   to   announce   we   have  managed  to  negotiate  2  tailor  made  annual  packages  for  our   landlords  with  Smoke  Alarm  Solutions,  one   includes  corded  blinds  and  the  other  does  not.  We   feel  these  plans   represent   exceptional   value,   are   far   easier   to   administer   and   remove   any  liability  from  yourselves  should  a  disaster  arise.  

The  2  packages  available  are  as  follows:    $109  per  year  includes  Check  and  test  all  smoke  alarms  Replace  any  faulty/damaged  or  missing  alarms  Install  any  alarms  required  to  pass  compliance  Check  safety  switch  Unlimited  visits  throughout  the  year  

As   a   further   value   add,   landlords   with   4   or   more   properties   will   receive   a   $10  discount  on  each  policy.  

When   your   next   inspections   are   due,   we   will   be   in   contact   to   confirm   your  instructions  so  we  may  be  compliant  ready  come  the  start  of  the  New  Year  

$129  per  year  includes  Check  and  test  all  smoke  alarms  Replace  any  faulty/damaged  or  missing  alarms  Install  any  alarms  required  to  pass  compliance  –  at  cost  Check  corded  blinds  and  curtains  and  make  compliant  as  required  (regardless  of  the  number)  Check  safety  switch  

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The   growth   in   investors   using   self-­‐managed   superfunds   (SMSF)   to   make  property   purchases   has   been   nothing  short   of   explosive   over   recent   years.  While   there   are   no   current   statistics  available,   already   in   2013   SMSF’s   held  approximately   $70   billion   of   real  property.   And   most   recently,   the  regional   director   of   accountancy   firm  H&R   Block,   Frank   Bass,   told   SMSF  Advisor  that  he  believes  the  ATO  will  be  targeting  SMSF  investors  in  2014/15.  

There  are  four  simple  rules  governing  a  property  purchased  via  an  SMSF.  Firstly,  the   property   must   meet   the   “sole  purpose”   test   –   namely   it   must   be  acquired   solely   for   the   purpose   of  providing   retirement   benefits   to   fund  member/s.   Secondly,   it   must   not   be  acquired  from  a  related  party  of  a  fund  member.  Thirdly,  it  must  not  be  lived  in  by  a  fund  member  or  a  related  party  to  any   of   the   fund  members   and   lastly,   it  must   not  be   rented   by   a   fund  member  or  related  party.    

The   only   exception   to   these   rules  

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applied   to business   owners,  who  may   be  able   to   purchase   their   business   premises  through   a   SMSF   and   have   their   business  as   the   tenant.   In   this   case,   the   member  will  need  to  prove  they  are  paying  market  rent   for   the   property,   including   a  written  lease   and   supporting   letter   from   a   local  real   estate   agent   who   is   knowledgeable  about  the  area.    

Bass  says  there  are  several  common  traps  SMSF   investors   need   to   avoid.   The  main  area   is   mixing   up   SMSF   and   personal  finances.   The   rental   income   related   to   a  property   held   in   an   SMSF   must   be   kept  separate   and   expenses   must   be   covered  by  the  fund  itself.  Another  area  to  note  is  that   if   a   property   is   acquired   under   a  Limited   Recourse   Borrowing  Arrangement,   the   SMSF   is   required   to  hold   the   same   property,  which  may   limit  any   work   the   landlord   could   do   on   the  property   outside   of   normal   repairs   and  maintenance  to  increase  it’s  value.    

As   always,   landlords   are   advised   to   seek  professional   advice   around   all   legal   and  investment  issue.    

Self  Managed  Super  Funds  (SMSF)  

Treat  Yourself  -­‐  Its  Christmas  Sometimes  we   come   across   the   craziest   and  most   creative   features   when   inspecting   a  home.     No   we   are   not   talking   about   a  waterfall   feature,   or   a   colourful   tile  splashback;   we   are   talking   about   inspiring,  extravagant   and   obscenely   priced   home  additions  that  make  you  green  with  envy.  

For  the  wine  buff    -­‐  check  out  this  cool  wine  cellar  trap  door.  The  most  dizzying  combo  of  alcohol  and  stairs  ever  designed.