Gary J Smith Property Management Newsletter - March 2020

Property Management Newsletter

RLA 150557

March 2020

What Owners Need to do to Successfully Sell Their Property in 2020.

It was a tale of two housing markets in 2019. For vendors, the first half was a lesson in low stock levels, long campaigns and disappointing sale prices, but the second half delivered some lucky vendors record-breaking results.

If the more positive outlook has encouraged you to put your property on the market in 2020, here’s what you should know – and what you can do.

Market forecast

Declutter and depersonalise

On the heels of a significant rebound in the Sydney and Melbourne markets in the second half of 2019, it is expected that vendor confidence will pick up. With interest rate cuts and the expectation that the Reserve Bank will cut rates even further in 2020 rising vendor confidence should see an influx of listings in 2020. The market is starting to pick up in south-east Queensland and after five years of price falls, Perth property might see some growth.The Adelaide market remains steady, and prices in Hobart are stabilising after a prolonged boom.

Properties that are too personalised or have unique features are often harder for buyers to connect with. Items like family photos, furniture pieces or paint colours can subconsciously tell a buyer that it is still the vendor’s home and make it harder to sell. The property needs to be as neutral as possible to appeal to the widest possible audience.

What are buyers looking for?

Topping wish lists are good school zones, proximity to transport, home security features and home offices. An increasing number of buyers are seeking single-storey homes and smaller block sizes to reduce time spent on garden maintenance. Fewer people want to renovate due to the large increase in building costs, so renovated properties are proving a desirable option. Low-maintenance, move-inready homes in good locations will appeal the most.

Presentation is key With many buyers conducting their first inspection online via property portals, it’s more important than ever to nail the presentation. More and more people are finding themselves too busy to worry about minor renovations and alterations, and would rather buy a property that’s all done and looking sharp.

Clean and prep First impressions count so stand out the front of your house and see how it measures up. When it comes time to put your house on the market, it has to be immaculate. That means dusting in places not on your usual cleaning schedule, cleaning windows and tidying inside appliances and wardrobes, and ensuring outside presentation is spot on. After the cleaning and decluttering is complete, consider engaging a stylist.

Talk to agents Start talking to local agents to determine who will manage your campaign when you’re ready to list. Look for “the best local agents” with the best reputation – a great listener, superb communicator, passionate, committed, hard-working, good problem solver and knowledgeable and experienced in the local market.

Information sourced domain.com.au

Renters By Choice — Tenants Turning Their Back On Home Ownership The private rental sector has expanded at more than twice the rate of the increase in Australian households in the last two decades.

This increasingly diverse form of tenure now houses about one in four of us.

Australia’s lightly regulated private rental sector means the insecurity of tenants is a key factor as to why most Australians aspire to own their home. However, despite this insecurity, research suggests an increase in people choosing to rent for a long time — 10 years or more — accounts for a small part of the growth in private renters.

Much of this growth is attributable to middle and high-income tenants. Especially in Melbourne and Sydney, high housing prices mean saving for a deposit takes much longer than in the 1990s.

In the meantime these households are renting for a long time.

34

Properties Leased

2,548

Property Enquiries

17

Their main reasons were: • • •

30 Day Snapshot

renting is more affordable than owning there are fewer worries and liabilities renting is more flexible than owning

Average Days on the Market

Heard of the term Rentvestor? Many Aussies are tenants and landlords.

Although probably only a small proportion of people choose to rent long-term, this option is gaining ground.

Young, well-paid professionals in particular see the flexibility of private renting as attractive.

An estimated one-in-eight private renters are “rentvestors” who rent where they want to live and buy elsewhere where they can afford, to get a foothold in the housing market.

NSW Tenancy Reforms Turn Up The Heat For Landlords & Tenants

74

Open Inspections

1,018

Prospective Tenants Through

NSW Residential Tenancy Act and Regulations were updated and passed through parliament unopposed on 19 December, 2019.

The new laws proposed by the State Government Innovation and Better Regulation office begin on 23 March, 2020, and were aimed at providing an improved residential tenancy system. So, what’s in the NSW reforms? Some of the bigger changes include: • • • • • •

$403

Average Rent Per Week

Landlords must obtain tenants’ prior written consent to publish photographs or video recordings of premises.

Tenants may make minor alterations, fixtures, additions and renovations with the landlord’s 3 1 3 consent, but the landlord cannot unreasonably withhold.

Repairs and replacements of hardwired smoke alarms must be carried out by an authorised electrician within two working days Tenants may give a termination notice if they enter into an agreement by misleading statements that are proven to be concealing certain facts Victims of domestic violence will be able to terminate their tenancy and leave the landlord to deal with the perpetrator and any damages New tenancy agreements and pre-tenancy checklists that are longer than ever before

If you haven’t already noticed, rental reforms are occurring right around the country. Our three largest cities have now had their tenancies laws placed under the microscope with Victoria passing theirs in 2018 and Queensland about to. One of the inclusions in Victoria’s changes has made it easier for renters to own pets (landlords will have to apply to the Tribunal to refuse), this new law starts on 2nd March 2020.

2A Jacob Street, Marion

More states are on the way to reform and all are aligned and on par with similar visions – that is, to give more power and certainty to the tenants. We believe it’s only a matter of time until South Australia will also take a similar approach. $360 per week | Rented after first open Information sourced eliteagent.com.au

Gary J Smith Real Estate Property Management 403 Marion Road, Plympton SA | (08) 8297 9323 Note: The articles contained within this newsletter are intended as information and opinions only and readers should not rely solely on its content. Whilst every endeavor is made to ensure the content is current and accurate, readers should always seek their own independent professional advice before making decisions. If your property is listed or managed by another agent, please disregard this communication. | RLA 150557