to Central Coast Property Investor Welcome
by McLachlan Partners
As we kick off another exciting year in property, it's clear that investor confidence remains strong across the Central Coast With rental demand continuing to surge, strategic upgrades and smart leasing decisions are proving more important than ever.
In this issue, we dive into practical insights to help you stay ahead - whether you're preparing for EOFY tax advantages, refining your tenant selection strategy, or weighing up potential upgrades to boost rental yield. We also explore the common myths surrounding property investing and highlight key characteristics of suburbs set for growth
Our featured property this quarter showcases the kind of low-maintenance, high-appeal investment opportunities that continue to perform well in today’s market. Plus, don’t miss our list of top mistakes to avoid when selling especially useful if you're considering a shift in your portfolio
At McLachlan Partners, our century-long commitment to property excellence is stronger than ever. Our team is here to help you navigate the complexities of ownership with confidence, clarity, and care
HEAD OF PROPERTY MANAGEMENT
Considering a sale? Scan the QR code to contact our sales team for an up-to-date market appraisal.
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McLachlan Partners
TENANT SELECTION: THE 30/70 RULE
LEGAL JARGON: DUTY OF CARE
COMMON FACTORS: BARGAIN AND BOOM SUBURBS
TOP FIVE PROPERTY UPGRADES
EOFY PREPARATION
INVESTOR MYTHS
MISTAKES TO AVOID WHEN SELLING
RECENTLY LEASED
(E&OE) Please note that all information herein is gathered from sources we, McLachlan Partners believe to be reliable. Computer images, photos, plans, drawings, maps etc are indicative only. McLachlan Partners cannot guarantee its accuracy and any interested person/s should rely on their own enquiries. You should not act solely based on the material contained in this newsletter. The information and statements herein are general comments only and do not constitute or convey advice per se. Seek independent professional advice before making any decision or acting.
Featured Featured Investment Investment
Coastal Top Floor Apartment Living 11/29-33 Gosford Avenue, The Entrance
2 Bed | 2 Bath | 1 Car | Rental Return: ~$600 per week FOR SALE | Guide: $650,000 - $700,000
Top floor unit in quiet, solid complex just 1 8km from Ocean Baths and beaches
Sunny open-plan living with floating floors, sea breezes, and brand new bedroom carpets.
Stylish kitchen with great storage, internal laundry, and built-ins; ensuite off main bedroom
Includes 98m² internal space, 17m² balcony, 8m² storage room, and 17m² car space.
Extra ground floor storage room perfect for beach gear, fishing rods, or weekend essentials.
Well-built complex with maintained gardens, low strata; ideal investment or downsizer option
Walk to The Entrance shops, cafés, beaches, baths and waterfront – prime coastal lifestyle.
Jayden Laugwitz
0422 191 275
jayden@mclachlanpartners.com.au
All they need to do is mention to us that you referred them, and after the first month of rental, we’ll send you an e-gift card.
Terms & Conditions:
This offer is redeemable by existing landlord clients of McLachlan Partners only. The gift card will be delivered via email after the first month of occupied rental. The person you refer must confirm that you referred them to McLachlan Partners for our property management services. The person you refer will receive the first month of management fee for free. This means that no commission percentage will be charged on rent collected for that month. Normal charges will resume following the first month of services. This offer is subject to change at any time.
Tenant Selection: Shortlisting with the 30/70 Rule
When processing an application for a rental property, we are often asked, "What do we take into consideration when assessing a tenant's suitability?"
This process can include several different factors, such as:
• Ability to maintain the property in a clean and tidy condition
• Stability of employment
• Previous record of tenancies – 6 months Vs 3 years
• Number of tenants to reside in the property
• National tenant database reference checks for previous history of breaches, defaults and outstanding debts
• Supporting documentation to validate the application, including employment, previous rental, personal or other references, bank statements, proof of prior residency, ID verification
• Ability to maintain regular rental payments
To fast-track the tenant selection process, the first step we apply is the 30/70 rule to shortlist the applicants, like banks approving home loan borrowing capacities, where they generally apply 70% of a household income to living expenses and 30% to repayments. *
For example: The total net tenant household income is $2,800 per week 30% of the net income (or affordable weekly rent) is $840 per week
As a managing agent, it is our ‘Duty of Care’ to submit short-listed applications to owners for their approval – by providing detailed information on the best possible tenant, who can afford to pay the best possible rent
Choosing the right tenant from the outset is also important to reduce and avoid any unnecessary ongoing tenancy breaches and disputes
*There is always an exception to the rule, taking into consideration varying living expenses & the current socioeconomic climate.
Legal Jargon: Duty of Care
There is no disputing that property management has become a serious business Owning an investment property requires landlords to comply with legislation requirements and have a strong focus towards 'Duty of Care’ during the management process
So, what does ‘Duty of Care’ mean?
Duty: A moral or legal obligation/responsibility Care: Protection, looking after
Therefore, as an owner, you have a legal obligation and responsibility to protect and look after the tenant - the same as we do as a managing agent.
Failure to deliver a strong focus on ‘Duty of Care’ can result in costly compensation claims should a tenant be injured
It is essential to ensure that a rental property is safe and fit for the tenant to reside in
Our agency is constantly working towards protecting your investment dollar by adopting a high standard of 'Duty of Care' to the Tenant and you as the Property Owner
Common Factors: Bargain & Boom Suburbs
The astute property investor always wants to find a bargain & boom suburb to increase their short or long-term wealth.
Bargains are often found by reading and understanding the market, researching the future infrastructure of an area, and monitoring what has been happening in surrounding suburbs.
While it is not always possible to find that bargain property, some tell-tale signs can help.
Most bargain and boom suburbs include a wide range of amenities, such as shopping centres, restaurants, schools, parks, sporting facilities, and hospitals.
Investors can also find bargain and boom suburbs in areas that are transitioning from industrial to residential and are undergoing a process called 'Gentrification', which normally sees a growth of cafes and lifestyle-type shops emerging.
Bargain and boom suburbs:
• Are on or near good transport routes
• Either beachside suburbs or easy access to the beach
• Have a range of housing styles, and
• Adjoin areas where prices have grown more strongly
If you require assistance appraising a new property or would like to increase your investment portfolio, we are here to support and assist you.
Top Five Property Upgrades
For property investors, small but smart upgrades can make a big difference in attracting quality tenants.
While major renovations can be costly, several affordable improvements can instantly enhance a property’s appeal and potentially justify a fair market rent increase if smart choices are made.
Followingareourtopfivepropertyupgrades:
1.Freshpaintforamodernlook
A simple coat of paint can transform a property, making it feel clean, fresh, and inviting. Neutral colours work best as they appeal to a broader range of tenants, making spaces look brighter and more spacious. Touching up walls, skirting boards, and even the front door can create a great first impression.
2.Upgradefixtures andlighting
Old, outdated fixtures can make a property feel tired. Swapping out old tapware, cabinet handles, and light switches for modern alternatives is a quick and inexpensive way to add value Good lighting is also essential LED downlights or stylish pendant lights in living areas can create a more attractive and energyefficient home
3.Airconditioningandheating
Climate control is a must-have for tenants, especially in areas with extreme temperatures Installing a splitsystem air conditioner can significantly increase tenant demand If the property already has air conditioning, servicing the unit before re-letting can assist with long-term preservation
4.Kitchenandbathroomrefresh
A full renovation isn’t always necessary, but simple updates to kitchens and bathrooms can make a huge impact. Replacing benchtops, updating splashbacks, or installing new cupboard doors can modernise a kitchen without breaking the budget. In bathrooms, swapping old shower screens, regrouting tiles, or adding a new vanity can give a fresh, clean look that tenants love.
5.Outdoorappealandlow-maintenancegardens
Outdoor space is a major selling point for tenants, especially in family-friendly areas. A tidy, lowmaintenance garden with fresh mulch, easy-care plants, and a well-maintained lawn adds instant appeal. Creating an inviting outdoor area with a deck, patio, or fire pit can significantly boost rental value if space allows.
Investors can increase their property's rental appeal without overspending by focusing on cost-effective upgrades
A well-maintained home attracts quality tenants, reduces vacancies, and maximises rental returns, which are all crucial factors in smart property investing
Be One Step Ahead: EOFY is Fast Approaching
Astheendofthefinancialyear(EOFY)fastapproaches, property investors have a valuable opportunity to maximise tax benefits and set themselves up for financial success. Strategic planning now can be the difference between a well-optimised tax return and missedopportunities.
One smartest move an investor can make before June 30 is to address property maintenance. Many expenses related to repairs and the upkeep of an investment property can be claimed as immediate deductions, reducing taxable income for the current financial year. However, not acting in a timely manner can impact investors as demand for tradespeople surges leading up to the EOFY. A shortage of available professionals can lead to delays, potentially pushing claimable expenses into the next financial year, resultinginmissingoutontimelydeductions
Beyond maintenance, the EOFY is the perfect time to reviewdepreciationschedules
Investor Myths
• Higher rent always = higher profits: Setting rent too high can lead to longer vacancies and tenant turnover It is better to price the rent competitively to attract and retain reliable tenants, creating a steady cashflow
• Negative gearing is the best strategy: While negative gearing can reduce tax liabilities, relying on it alone isn’t always wise. Positive cash flow properties can provide steady income and long-term financial stability.
• Once you have a tenant, you can forget about the property: Regular inspections and maintenance are essential to ensure the property remains in good condition and prevent minor issues becoming costly repairs.
• Landlord insurance is optional: Home insurance doesn’t cover rental- related risks like tenant damage or rent defaults. However, landlord insurance providescrucialfinancialprotection.
Many investors are unaware that wear and tear on their investment properties can be claimed over time, significantly reducing taxable income. If a depreciation schedule has not been updated recently, consulting a quantity surveyor can help ensure every eligible deductionisclaimed.
Additionally, reviewing loan structures and interest payments before June 30 is crucial. Investors may consider making extra repayments on deductible loans to maximise interest deductions or refinancing to a more tax-efficient set-up. With interest rates fluctuating, EOFY presents an opportunity to reassess financing strategies that align with long-term investmentgoals.
A proactive approach to tax planning can also include prepaying expenses, such as insurance, rates, or professional fees, if you need to reduce your taxable income
• If you own property, banks will always lend you more money: Lenders assess income, debt, and market conditions before approving loans Simply owningapropertydoesnotguaranteeaccesstomore finance
• Buying the cheapest property is the best investment: Location, tenant demand, and potential for capital growth are far more important than just buyingcheap.
• Renovation = Significantly higher rent: Upgrades can justify a rent increase, however, there’s a limit to whattenantswillpay.
• Real estate is a set-and-forget investment: To be successful requires ongoing strategising, proactive planning,research,andregularmarketreviews.
10 Mistakes To Avoid When Selling
Preparing to sell a home can be time-consuming, overwhelming, and a big decision to make. However, avoiding these 10 common mistakes can make the processsmootherandmoreprofitable.
1. Overpricing the Home: Emotional attachment can lead to setting an unrealistic price. Research market trendsandconsiderprofessionalappraisals.
2. Neglecting Curb Appeal: First impressions matter. A tidy lawn, fresh paint, and inviting entryways can significantlyboostbuyerinterest.
3. Ignoring Necessary Repairs: Small issues (leaky taps, carpet stains, paint chips, and cracked tiles) can make buyers think there are bigger hidden problems. Fixthembeforelisting.
4. Failing to Stage the Home: Cluttered or empty spaces make it harder for buyers to visualise living in thehome Simplestagingcanmakeabigdifference
5. Poor Quality Online Listing: The online listing is a buyer’s first impression of the home It is a must to have professional photos, a video highlighting the featuresoftheproperty,andafloorplan
6. Being Unavailable for Showings: Flexibility is key. Restricting viewing times can lead to missed opportunitiesforseriousbuyers.
7. Not Marketing Effectively: Relying only on one platform or an agent’s website may limit exposure. Use social media, virtual tours, and multiple listing services.
8. Hiding Major Issues: Dishonesty about structural or legal problems can lead to failed deals or lawsuits. Transparencyisthebestpolicy.
9. Letting Emotions Take Over Negotiations: Buyers may criticise aspects of the home. Stay objectiveandfocusonthedeal,notpersonalfeelings.
10. Skipping the Closing Details: Failing to prepare for closing costs, paperwork, or final inspections can causedelaysorevenafailedsale
We are here to support and assist you if you need expertadviceinpreparingyourhomeforsale
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Our family agency is the longest serving agency on the Central Coast Originally founded in 1924 by Clyde & Doug McLachlan after returning from the trenches in France in WW1 They quickly gained a reputation for honest dealings with clients That reputation has been carried on in our agency today and is the hallmark foundations on what we have built our business on for the last 100 years.
The key difference of McLachlan Partners is our team. We have the most experienced, trustworthy and reliable team of Agents and Property Managers on the Central Coast.
We would be more than happy to help you with all of your property needs.
Bruce McLachlan Principal
