Property Management Update March 2015
Darwin & Perth By contrast, the vacancy rate has jumped in Darwin and Perth from January 2014, reflecting the impact of the commodities downturn on rental demand in those cities.
Rental vacancies fall in major population centres
Figures released by SQM Research have revealed the number of residential vacancies fell nationally in January 2015, with a vacancy rate of 2.3% posted nationally, based on 69,847 vacancies. This is down from 2.6% in December when vacancies hit 77,000. Falls were recorded in all capitals cities, following an influx of renters who were securing accommodation to start the New Year. Melbourne, Brisbane, Canberra & Sydney
students sought accommodation after the summer break. Hobart Over the year to January 31, Hobart recorded the biggest yearly decline in its vacancy rate, reflecting a stronger economy, which has been boosted by tourism and a lower Australian dollar. Hobart’s vacancy rate fell to 1.3%, down from 1.4% in December, based on 357 vacancies, and down from 1.6% a year earlier. Canberra, Melbourne
Throughout January, vacancy rates fell the most in the big population centres of Melbourne, Brisbane, Canberra and Sydney as workers and
Modest annual falls were posted in Canberra, Melbourne & Adelaide.
Darwin recorded the highest yearly increase in its vacancy rate, climbing by 1.8 percentage points from a year earlier based on a total of 905 vacancies. Perth’s vacancy rate was 2.6% in January 2015, up 0.7 percentage points from a year earlier. Vacancy rates in Darwin and Perth will likely continue to rise in 2015 as the mining sector continues to contract given falling commodity prices and the sluggish global growth we are seeing. That has caused a big contraction in employment in the mining and resource-related sectors, particularly in temporary/contract jobs. The jobless rate will likely keep rising in Western Australia and the Northern
Territory, and therefore in Perth and Darwin. Adelaide Adelaide has seen a slight rise - 1.6%. Source: SQM Research
Pain & Gain Corelogic RP Data's January Pain & Gain report confirmed regional WA has surpassed QLD for the quarter as the region to record the highest proportion of loss sales. Regional WA recorded 22.5% of all resales at a loss whereas regional QLD recorded 22%. Analyst, Cameron Kusher says the weakness of the two regions reflects recent underperformance in the coastal markets linked to the mining and resources sector. Unit dwellings in within lifestyle markets are showing the largest share of loss making resales. Sydney recorded just 2.6% in the same period; Perth 6%, Melbourne 6.5%, regional Victoria & Adelaide both 9%.
3 Columbia St, Paralowie This stunning sandstone fronted family home offers an extensive list of sought after features
4 large bedrooms - all with robes main with ensuite bathroom formal & casual entertaining area ducted evap air conditioning gas heating under cover entertaining area in ground swimming pool double width lock up garage easy care gardens $385 per week $2310 bond
Landlords should consider how they would manage mortgage repayments in the event of their income halting.
Top 2014/15 insurance claims Loss of rent is a landlord's biggest risk and it accounts for more than 50% of all insurance claims. One of the real estate industry's major landlord insurers has released figures for the 2014/15 financial year showing loss of rent and malicious damage by tenants were two major causes of claims. First National Real Estate recommends that all landlords take out a Landlord Insurance policy to protect themselves from loss of income and damage. If a tenant falls behind in rent payments, recovery of those arrears can be a long and costly process.
Malicious damage such as stained or ruined carpets, holes in walls, or intentional damage to appliances can leave landlords with substantial clean up bills and replacement costs. Water and storm damage, legal liability claims and theft were also amongst the other notable claims in 2014/15. It's vital that your landlord insurance policy specifically covers you for such events. Check your existing policy to ensure it includes malicious and accidental damage, loss of rental income as well as legal liability. Your standard building and contents policy won't generally cover a landlord for many of these types of risks. Ask your First National Real Estate property manager for more information if you are unsure about your policy or don't have one.
Recently Leased
MAGILL 13 Patola St 2 bed 1 bath 1 car $310 pw PARAFIELD GARDENS 4 Piper St 3 bed 1 bath 2 car $285 pw PARALOWIE 6 Coogee Ave 3 bed 1 bath 1 car $270 pw SALISBURY 2/109 Winzor St 2 bed 1 bath 1 car $260 pw SALISBURY EAST 24 Barrington Cres 3 bed 1 bath 1 car $275 pw
Do you have another investment property we don’t manage? Ask us why you should consolidate your portfolio with Taylor’s First National.
Negative gearing no perk for the rich says CEO Ray Ellis
Suggestions that negative gearing is a perk for the rich are misguided and, if eliminated in the next budget, the most vulnerable in our communities could soon see unaffordable rental prices. The great Australian dream is to own your own home and it is important we remember just about every Australian begins his or her journey to property ownership as a tenant in a rental property. Australia has one of the fastest growing populations in the OECD so keeping rents affordable depends entirely on maintaining an adequate supply of rental properties. This can only be done if Australians continue invest in properties they
are prepared to rent to others. The main thing that keeps that attractive is negative gearing. Current taxation arrangements offer Australians the opportunity to invest in real estate as a way of saving for independence in retirement. However, with the average property investor owning just one rental property and having an income no higher than $80,000, suggestions that the rich are exploiting negative gearing are an exaggeration. If negative gearing were removed in an environment of the lowest interest rates since the 1950s, Australians would be unlikely to continue to invest in rental properties
at current rates. They would seek better returns elsewhere and, with population growth near record highs, the supply of rental properties would fall short of demand, thereby forcing up rents. This would place unacceptable pressure on the most vulnerable citizens in our community. It would also lengthen the amount of time it takes for first home buyers who are renting to save a deposit to buy their first home.
Currently, the rate at which rents are rising is slowing down. In fact, rents had an annual growth rate averaging 1.8 per cent in 2014, which means they were rising more slowly than inflation in 2014. If negative gearing were dropped, that situation could change rapidly. Negative gearing plays a vital role in balancing supply against the demand for rental properties and this helps keep housing affordable for everybody.
The true cost of your mortgage
A $500,000 mortgage can cost over $1 million in repayments over a 30-year term, based on an average variable interest rate of 5.5%. Mortgage brokers recommend that borrowers consider the total cost of their loan before committing.
There's a huge range of loan products available throughout Australia so it's vital borrowers consider their options carefully and seek independent financial advice. Visit First National Real Estate's national website for a range of financial
calculators that will help you work out your borrowing power, the effect of extra payments, and how long it will take you to
repay a loan with a range of variables. We put you first.
Property Management Taylor’s First National manages one of the largest Property Management Portfolios throughout the North and North Eastern suburbs of Adelaide. We employ full time Property Managers, a Maintenance Co-ordinator, a Property Inspector, an Accounts Manager, a Sales Investment Consultant, plus administration staff and a full team of Maintenance Contractors to ensure all properties are managed in a professional manner. Our fully computerised and online banking system allows us to monitor where rents are paid to at the push of a button, hence ensuring landlords investments are returning their maximum potential. We are firm believers in the value of Real Estate as long term investment and through our guidance, many of our landlords are now multiple property holders. Whether you are investing in Real Estate for the first time, or are an experienced investor, we can assist you in building a rental portfolio and creating wealth through property investment. Why not PHONE US TODAY and speak to one of our property management team.
Are You Looking To Expand Your Investment Portfolio? Below is a selection of some of our properties currently on the market.
To view all of our properties, visit our website at www.taylorsrealestate.net.au
ANDREWS FARM 43 President Ave Offering an Easy Family Lifestyle This home is located in the middle of a thriving, developing community proud of its schools, parklands and amenities, offering an easy family lifestyle. Featuring separate lounge, gas kitchen, family room, split system air conditioning, three bedrooms, bathroom, outdoor entertaining verandah, roller shutters, well maintained backyard, carport, r/door, tool shed all situated on a corner allotment.
$249,000
Tim Schwarz 0448 884 599
SALISBURY EAST 4/3 Jessica St Homette Style Living At It’s Best!
$209,950
This very appealing 2 bedroom homette is located close to all amenities and is situated in a small well spaced out group of 6. Comprising of 2 good size bedrooms, formal sitting/lounge room with a/c, neat kitchen with gas freestanding stove and adjoining meals, neat bathroom, separate toilet, laundry, lock up garage with roller door has direct internal access plus an additional access door, private backyard, and additional area for parking extra cars.
Jakub Ratajczak 0448 114 454