Property Management Update February 15
Market moderating but 2015 outlook positive
Real estate really is one of the most secure investments over the long term, and many consumers see it as a path to financial security. It’s therefore no wonder that so many Australians strive to own a home, and often an investment or holiday property as well. Most of us assume that the value of our real estate will increase, but the length of time a property is held has a lot to do with whether you’ll make a profit or loss. According to a recent Core Logic RP Data report, the average length of ownership for loss-making properties in 2014 was 5.7 years,
versus 9.9 years for real estate that sold at a gross profit. The good news is that the report highlights more than 90 per cent of properties make a profit when they are resold, and the average gain is $223,870. For those of us who bought real estate before 2008, our property values have, generally speaking, at least doubled. However, the effects of the GFC on property markets mean than just 4.1 per cent of people buying after 2008 have seen similar results. If you want to see your home’s value double, then the statistics show
you will likely need to hold onto it for 16.8 years.
leverage existing equity and expand their property portfolios.
First National Real Estate anticipates that the 2015 property market will continue to offer excellent investment opportunities although the market is showing signs of slowing down.
Firstnational.com.au offers a wealth of advice about property investment and the major stages of property ownership in life’s real estate journey.
It’s therefore important to consider the changing rate of prices growth this year and how this will affect your home’s or investment property's value, if you’re thinking of selling. While many market commentators anticipate prices will continue to rise this year, depending on where you are in Australia, the pace of growth may be constrained by growing affordability issues and concerns about unemployment. The markets appear to have factored in an RBA rate cut by April, but Australia’s big four banks are playing this down. Whatever happens, interest rates will remain at historic lows throughout 2015. This means many property investors are well positioned to
As a member of Australia’s leading national real estate network, we help Australians buy their first home or investment property every day of the week. We always welcome the opportunity to share our experience, so, if you have a question about real estate, give one of our property managers or sales agents a call, or visit our website to explore its free resources. We're keen to help you grow your property investment portfolio and add value to your existing investments. Call in for a chat at any stage and we can talk about how we can help you achieve your 2015 property goals.
4 Piper St, Parafield Gardens
BIG BEDROOMS & EXTENSIVE OUTDOOR ENTERTAINING AREA! • • • • • • •
3 Bedrooms Spacious living room Updated Kitchen Ducted Evap Air conditioning Verandah patio entertaining area Carport plus garage Easy care gardens $285 per week $1710 bond
chance you'll see solid capital gains over time. If you plan in advance & buy a home long before you retire, you may see some significant steady value gains that allow you to sell for a tidy profit as you retire.
Investing for retirement With the Council of the Ageing welcoming the Government 's decision to keep financial advice regulations, now could be a great time to look into property investment for your retirement years. It is a great way to build equity, and offers a number of different ways in which you can benefit. Here are just a few ways that real estate investment for retirement could work for you! Slow and steady wins the race The story of the tortoise and the hare will not apply to every piece of real estate, but it can! Property is not a particularly volatile investment, so as long as you do your research & take on sound advice from the likes of agents & financial planners, there is every
Positive gearing to have you cheering Another way that buying a rental property can benefit you is through making it positively geared. This means setting the rent that tenants pay above your mortgage repayments, so you earn profits. While you will pay tax on this, it keeps you afloat. Keeping it in the negative The alternative is negative gearing, where your rent doesn't cover your mortgage costs. This comes with its own tax write-off benefits, but means you have to have more capital put aside to cover the shortfall in the short term. The other side of this is you may be able to achieve some great windfalls in the long term! More at firstnational.com.au
KLEMZIG 24b Thistle Ave 3 bed 1 bath 1 car $315 pw MAWSON LAKES 28 Coventry Cres 3 bed 2 bath 1 car $365 pw MAWSON LAKES 1 Lord Howe Cres 4 bed 2 bath 2 car $450 pw SALISBURY 17 Carey St 3 bed 1 bath 0 car $275 pw SALISBURY 14/66 Festival Crt 2 bed 1 bath 1 car $180 pw
Do you have another investment property we don’t manage? Ask us why you should consolidate your portfolio with Taylor’s First National.
Renting your home; Long-term vs Short-term leases
Whether it's a holiday home on the coast or an inner-city apartment in a state capital, one issue you'll need to figure out as the owner of an investment property is whether to use longterm or short-term leases when renting out your home. Short-term Rental properties that feature short-term leases are typically popular in areas with high transient populations. For instance, when a family is taking a holiday, their only options are essentially hotels or rental properties. A fully furnished property with a shortterm lease can provide
you with steady cash flow if it's located in a popular area during a busy time of season. Even longer leases that are still on the short side, such as those that last three months, can provide you with benefits. As many landlords have found, sometimes having the wrong tenant can be more trouble than it's worth. With short-term leases, you don't necessarily have to worry about being stuck with a troublesome renter. Long-term What long-term leases may lack in the delivery of higher rental yields, they can more than make up for in
security and steady income. As the owner of an investment property, the longer your home sits empty, the more money you're losing out on. And since you'll likely be paying off a loan for the property, this can quickly interfere with your finances. Long-term leases will practically guarantee that your property is bringing in money for a significant amount of time.
Additionally, if you find yourself with a highquality tenant - one who always pays rent on time and takes care of the property chances are you'll want to hang on to him or her for as long as possible. In the end, deciding between the two options comes down to the type of property you own, where it's located and what type of investment you're hoping to make.
Dog owners better tenants?
Landlords are often hesitant about allowing their property managers to accept applications from tenants with pets. The belief tends to be that dogs, in particular, will damage their property. However, the
experience is generally the opposite. Tenants with pets will sometimes pay a premium and they're also less inclined to move so frequently, simply because it can be difficult for them to find the next pet friendly landlord.
Statistics show that children are more often the source of damage but nobody could imagine
banning families from renting. Good pet references are the key to a happy tenancy experience.
Property Management Taylorâ€™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.
Tim Schwarz 0448 884 599
PARA HILLS 44 Rialto Ave Attractive 3 bedroom home with birs, well equipped kitchen, meals/family, formal living, gas heating and ducted cooling, double sliding doors lead to a verandah / patio outdoor entertaining area, fenced in ground swimming pool, dual driveways, a carport and garage, tenanted till end of July at $300 per week
Gavin Armstrong 0408 802 350 $285,000
Published on Feb 27, 2015