December 2012
Maximise your rental returns! The storm season has started and we are trying to prepare all our properties as best we can! If there is anything that you would like us to do to yours, for example have the gutters cleaned to be better prepared for the season etc. please let us know. And along with storms come Christmas chaos - yep the silly season is almost upon us and in preparation we will give the team a well deserved rest
a lease renewal for you. As this will be our last newsletter before Christmas we wish to thank you for your continued support and, as ever, we will continually seek to maximise your rental returns! between Christmas and New Year. The office will close Christmas Eve and reopen on the 2nd January and we will do our end of month disbursement then. Helen will be taking a few extra days with her family and will return the 7th January.
Wishing you a joyous Holiday Season and a most prosperous and Healthy New Year. Christina
A quick reminder if we haven't yet received your instructions for leases expiring between now and the end of March to please let us know whether you would like us to negotiate In this edition: How long will it take for your property to rent? Tenancy Law under review in Queensland
Stop Thief! How to Secure Your Home When on Holiday… 8 Financially Fatal Mistakes Property Investors Can Make…
Thinking of a new Loo?
A Selection of Properties Recently Leased
Does your insurance cover Drug/Meth Lab clean ups?
Quote
Paying Off Your Own Property Can Be Cheaper than Renting…
Calendar of Events
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 November. For RE/MAX Profile, our average days vacant were 6.8
BRISBANE STATISTICS The Market
Brisbane, QLD
November 2012
Annual Change
Median Weekly Rent - House
$390
0.0%
Median Weekly Rent - Unit/ Apartment
$375
4.2%
Days on Market (Avg)
24.5
0.1
Days Vacant (Avg)
14.5
0.1
Source: rentfind.com.au
A Discussion Paper outlines a number of issues identified by the RTA during its ongoing monitoring of the Act in the areas of:
Tenancy Law under review in Queensland The RTA is conducting a targeted review of the Residential Tenancies and Rooming Accommodation Act 2008 (the Act) to ensure it is meeting its objectives of fairly balancing stakeholder interests as well as removing legislative barriers to improved service delivery.
Balancing stakeholder interests
Streamlining service delivery, and
Reducing red tape.
Options have been developed against each issue to stimulate discussion within the sector and are not necessarily proposals for change.
Some of the legislative matters being reviewed include;
Time frames for notice to leave without grounds (currently 2 months’ notice for a lessor and 2 weeks for a tenant)
Mandatory building and pest inspections prior to letting of property
The RTA is calling for submissions on the issues and options raised in the Discussion Paper.
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Allowing lessors to pass on total water consumption charges where premises have individual water meters
Abolish without grounds provisions for lessor’s to end tenancies and only allow for certain reasons for tenancies to be ended
There are many other matters that are part of the review.
To review the paper, visit www.rta.qld.gov.au or speak with our Property Management Department. Submissions are due to the RTA by the 2nd January 2013. The above information has been supplied by Stacey Holt – Director of Real Estate Excellence for Real Estate Excellence Members www.realestateexcellence.com.au
For more info, you can call the Plumbing Industry Council on 1800 264 585 or go to this link. Conditions apply on Combined drains. Source: Clearline Plumbing Services Pty Ltd,
This includes: 1.
Installing additional toilets, showers and sinks.
2.
Plumbing on your Kitchen and bathroom or laundry.
3.
Installing or replacing existing some hot water heaters including electric, gas, solar or heat pump hot water units.
Thinking of any of the above or wanting to move some plumbing within your home? Please call or send an email: clearline@bigpond.com
For customers on their mailing list, it is likely that they would give you a free quote . So get in quick if you want anything done before Christmas, Call them now! Gary Carson P: 0419555004 F: 07 3511 7708 E: clearline@bigpond.com
Thinking of a new Loo? We are happy to tell you that Queensland’s new plumbing laws now allows for some plumbing work to be done in an existing home without an expensive permit . (saving up to $1600 in fees)
Does your insurance cover Drug/Meth Lab clean ups? There are landlord insurance policies that are now covering meth lab clean ups. Now is the time to check your policy! Landlord insurance is relatively cheap and something we recommend for all our landlords as it can cover you for so many unfortunate situations. We have been lucky to date and have had no drug labs in our properties but we've certainly heard of plenty so best to make sure you are covered for security and peace of mind.
Website:
www.clearlineplumbing.com.au Address: 86 Arthur Tce, Red Hill Qld 4059 OR VISIT THEIR SISTER COMPANY www.works4us.com.au
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Lawless pointed out that although the measure didn't consider other costs of ownership, "it is a good starting point for further investigations into whether or not a potential purchaser should consider buying within a specific suburb."
Paying Off Your Own Property Can Be Cheaper than Renting‌ Australia has 238 suburbs or towns where the mortgage repayment is lower than the median rent, based on a principal and interest loan on a variable mortgage rate, RP Data has claimed. The researcher has just launched its annual 'Buy versus Rent' study for 2012, reporting the difference between the cost of paying rent and paying a mortgage across each suburb or town around the country. Using an interest only loan, the list expanded to 1,320 suburbs/ towns. RP Data research director Tim Lawless said the results boded well for first homebuyers returning to the market. "We may see consumers returning to the property market as they realise in some suburbs [buying] may actually be cheaper than renting," he said. Lawless added that other factors support more buyers coming into
the market. "With lower mortgage rates, tight rental markets resulting in some rental increases and lower home values, many buyers may see now as a good time to either re-enter the market or buy their first home," he said. By state, Queensland had the most markets where it is cheaper to buy than rent, dominated by regional towns, which accounted for 68 of the state's 84 markets that made the list. New South Wales property markets also featured heavily on the list, with 54 markets showing cheaper mortgage payments than median rents - 22 were in Sydney, the remainder in the regional parts of the state. Melbourne recorded just two markets where a property is now cheaper to buy than rent. Adelaide had 20 and Canberra had only one. The majority of Western Australia markets on the list were in the state's regional areas, which enjoyed the lion's share of locations where buying is cheaper.
Source : Life @ Home (2 October 2012)
Stop Thief! How to Secure Your Home When on Holiday‌ Many Australians pack up the car, the kids and the presents and go somewhere during the holiday season, if only to visit relatives or go to the beach for Christmas Day. Whether you go away for a day, a week or month, it is important to know that your home will be safe and secure these holidays. There are some easy measures you can take to ensure you return home to your house just the way you left it. One of the most basic is to turn the telephone and answering machine volume down when you go out so burglars can't hear that no one's home. Leaving
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
the television or radio on with the curtains drawn, on the other hand, will make them think someone could be there.
local post office stop delivery until you get back. You'll also want to cancel any other regular deliveries such as newspapers.
Garden sheds or garages often present thieves with the tools they need to break in to your home. A ladder left lying around the garden not only gives thieves something they can sell, it also hands them a tool to break into your home. So make sure your shed or garage is locked with a case-hardened padlock or high grade chain when not in use. This will also help to secure items such as lawn mowers, bicycles, surf boards or garden mulchers.
Tell relatives or neighbours when you'll be back and let them know where you can be reached in an emergency.
Overgrown branches, thick bushes, large trees and high fences all provide thieves with the perfect cover from the street, and give them all the time they need to open a door lock or window. To help protect your home, clear the line of sight from the street to doors and windows. Even better, have a monitored security system installed and make sure all members of your household know how to use it. Sensor lights on the outside of
your house can work as a deterrent. Sensor lights are activated when something moves across their path, so anyone who is considering breaking in to your home should be discouraged by the possibility of exposure. When installing the lights, make sure they are not so sensitive that the family pet will set them off. Put deadbolt locks on outside doors and make sure all door hinges are on the inside. Lock all entry points every night and whenever you are away from home. If in the heat of the summer you like to have the house open, wire mesh security screens on doors and windows will allow breezes to flow through your home while still maintaining a level of security. Thieves have been known to blatantly enter through an unlocked door while the occupants are in another part of the house.
Items such as digital cameras, televisions or stereo systems should be engraved with their unique serial number. Keep a record of all serial numbers in a secure location, preferably outside your home (e.g. a bank security deposit box). If you have a lot of valuable jewellery, consider locking it in a bank security deposit box, or at a minimum, take a photo of each valuable item with a description and ask your solicitor to keep a copy of this information for you. Neighbourhood Watch has an interactive checklist on their website called Virtual House, which has been designed to help you assess the safety and security of your home all year round, whether you're home or away on holidays.
Piles of mail, newsletters and junk mail are a sure sign that a house is not occupied. So if you're planning to go away, either have your mail picked up by a trusted neighbour or have the
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Built in conjunction with RACV and Lockwood, the Virtual House comes in three parts. One is a simple checklist of home security basics, while another provides a comprehensive room-by-room tour, with safety advice for every part of your home including the front and back gardens. The third section suggests ways to protect your home, such as having monitored home alarm systems, window and door locks and adequate insurance cover. Source : Quartile Property Network
8 Financially Fatal Mistakes Property Investors Can Make… Property investing may be simple, but it’s not easy. And that’s not a play on words. When you look at the statistics and see that most investors never get past their second property, you realise that most who get into real estate won’t achieve the financial freedom they were looking for. While it’s possible to make good money in property, it will be more of an uphill battle in the current
slow real estate markets. However, avoiding some classic mistakes will help keep you on the right track. So let’s look at them. 1. A plan? I’ll just go ahead and buy something Deciding you’re going to be a property investor is more complex than just buying a property. Approaching investing without a well thought through strategy that fits in with your long-term wealth creation goals and financial situation is a fool’s journey. You would never take off in your car without knowing where you intend to go and how you plan to get there. As a property investor you should map out where you want to be in five, 10 and 15 years’ time, then construct a detailed plan to take you there. 2. I can do it all myself! All successful property investors build a great team around themselves. I often say that if you’re the smartest person on your team, you’re in trouble. However, you can’t blindly hand over financial control to your finance broker, accountant or solicitor. It’s your responsibility to gain knowledge about the property investment business and become financially smarter – what I call financially fluent. This will teach you the right questions to ask your advisors.
3. Research? Who needs it I’ve met investors who researched the purchase of their new car more carefully than their investment property.
Many buy their investment close to where they live, where they holiday or where they want to retire. They make emotional purchases in locations that are in their comfort zone. The due diligence that goes into purchasing an investment must be more rigorous than that. As an investor, there are only three good reasons to “fall in love” with a property: it fits your investment strategy and goals; the numbers work; and it has upside potential. Never let your emotions drive your investment decision; that’s what homebuyers do, not people looking to create wealth with real estate.
4. Losing sight of the big picture Sure, property is a long-term investment and the costs of buying and selling are considerable, but that doesn't mean you should fall into the trap of not regularly re-
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
big deal that will make them overnight millionaires. Trust me, these doesn’t exist! Warren Buffett wisely said: “Wealth is the transfer of money from the impatient to the patient.” viewing your property portfolio. Do you own the type of properties that will allow you to take advantage of the next property cycle? Remember, over the next few years some properties will strongly outperform others. If you own secondary properties or real estate in areas that are unlikely to benefit from strong capital growth, it may be worth selling up and replacing them with the type of property that will help you develop long-term financial independence. When was the last time you checked to make sure you were getting the best rents or that your mortgage was appropriate for the current times? Maybe it's time to refinance against your increased equity and use the funds to buy more properties?
5. I’m going to buy a property and make millions! If you are like me, you get regular emails promising you instant real estate riches. These pander to those investors who are really speculators looking for that one
Successful investment is about patience and time. It can take two to three property cycles to build a sufficiently large asset base to allow you to fire your boss. 6. I’m looking for a bargain! Sure you make your money when you buy your property, but you set yourself up for property investment success by buying the right property, not a cheap property. 7. A lick of paint and I’ll make a killing!
Popular TV shows like The Block have created a new generation of “want to be” renovators and developers. I’m all for adding value through renovations; but you can’t buy a property, do minimal work and then sell it at a profit, because stamp duty, buying and selling
costs and tax eat away at your profits. On the other hand, buy, renovate and hold in the long term is a great investment strategy. 8. Risks? Bah-humbug! Bring on the rewards! Some investors don't understand the risks associated with property investment and therefore don't manage them correctly. Strategic investors don't only buy properties; they buy time by having financial buffers in place to not only cover their negative gearing, but to see them through the down times like we have experienced in the last few years. Another way smart property investors protect their assets is to buy them in the correct ownership structures to legally minimise their tax and protect their assets. Most wealthy property investors own nothing in their own names, but control their assets through companies or trusts. The reality is that if investing in real estate were easy, everybody would be successful at it. Fortunately, many of the struggles that investors endure can be avoided with proper education, planning and due diligence. Written By: Michael Yardney Source : Property Update (17 August 2012)
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
A Selection of Properties Recently Leased
Quote “Success is not final, failure is not fatal: it is the courage to continue that counts.”
Newmarket House $540p.w.
-- Winston Churchill
3 bed, 1 bath, 1 car accommodation
Calendar of Events
Auchenflower House $575 p.w. 3 bed, 2 bath, 0 car accommodation
17 December Mid Month Accounting 24 December—1 January OFFICE CLOSED
Spring Hill House $850 p.w.
2 January End of Month Accounting
3 bed, 2 bath, 2 car accommodation
RE/MAX Profile Real Estate www.profilerealestate.com.au www.propertyrentalsbrisbane.com
141 Boundary Road Bardon QLD 4065 PO Box 388, Paddington, 4064
TEL 07 3510 5221 TEL 07 3510 5227
FAX 07 3876 5544 Nikki profilerentals@remax.com.au Helen helenbryan@remax.com.au Marcia profilerentals2@remax.com.au
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.