jasminechoiD E S I G N P O R T F O L I O

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Client:AMSL

Project:Magazine Ads

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To promote AMSL’s products with the use of strong laboratory images and catchy phrases.

National OutlookRate cut and lack of stock stimulates winter property prices

The Reserve Bank’s surprise move last month to slash interest rates to their lowest level on record – 2.75% – is expected to underpin the property market through the cooler months, says Angus Raine, CEO of leading property group, Raine & Horne.

“The 25 basis point cut in May was just the tonic the real estate market needed to encourage more buyers into the marketplace,” said Mr Raine. “The winter period is usually the time when the property market slows and it’s good to see the RBA exercised their prerogative to boost confidence and stimulate the property market.”

According to Mr Raine, the rate cut will go a long way to addressing underlying affordability issues that have deterred many buyers from purchasing a property. “Lower cash rates will give buyers a greater capacity to borrow,” said Mr Raine. “All four big banks have passed on the 0.25% rate cut in full, and some smaller lenders have even surpassed it by slicing their variable home loan rate by as much as 0.3%. This is great news for buyers and investors looking to secure a property.”

In addition, Mr Raine said the nation-wide shortage of listings will also positively impact on residential property prices over the winter period. “Australia is suffering from a gross undersupply of properties, as well as a 25% lull in historic sales volumes compared to pre-GFC levels. As a result, our agents are screaming out for listings,

so I urge homeowners looking to sell to capitalise on the combination of the housing shortage and improving buyer confidence.”

As an example of market positivity, auction clearance rates in Sydney and Melbourne are currently hovering above 70%, while green shoots of growth have been recorded in re-emerging markets such as the Gold Coast, where Raine & Horne Surfers Paradise has revealed sales volumes are up around 60%.

Despite dwelling values experiencing a slight stumble in April, a solid 2.8% first quarter gain in national dwelling values has reinforced a positive outlook for property prices. “When viewed in line with other metrics such as auction clearance rates, private treaty indicators and some improvement in housing finance demand, it is likely that the negative April result will be a blip along the path to recovery,” said Tim Lawless, director of Research at RP Data. “Overall, the housing market is in much better shape than it was a year ago.”

Dr Shane Oliver, Chief Economist at AMP, added that additional rate cuts could be on the cards to help further stimulate housing growth. “I expect the cash rate to fall to 2.5% in the next few months, but to get standard variable mortgage rates back to the lows of 2009 may require another cut again,” said Dr Oliver.

FAQThinking of building a property portfolio? Negative gearing can help!

Improving business and consumer confidence, job security and concerns about share market volatility are all triggers for buying a property investment to help you build wealth.

At the end of the day, a quality, well-located investment property is one of the best ways of creating long-term wealth, while our tax system even enables you to ‘negative gear’ the costs of owning it.

A rental home is said to be negatively geared when the ‘costs’ of maintaining it (mortgage interest, repairs and expenses such as council rates, strata management levies, property management and so on) outweigh the rental income generated by the property. This ‘loss’ is able to be offset against a salary, wage, dividend income, bank account interest and so on, to reduce an individual’s annual taxable income.

For tax advice about the benefits of owning a negatively-geared investment home, contact your accountant, while you can kick start your property research by talking with your local Raine & Horne agent.

Why is it important to claim depreciation on an investment property?

As an investment property ages, items and fittings start to wear out or ‘depreciate’. Fortunately, the Australian Tax Office (ATO) allows landlords to claim the impact of depreciation as a tax deduction, which could be worth many thousands of dollars annually depending on the size and scope of your investment property portfolio.

However, the truth of the matter is that almost 80% of landlords are missing out on thousands of dollars in depreciation, according to BMT Tax Depreciation. Often this is because landlords don’t have a depreciation report, which outlines the items that can be claimed.

With the 30 June deadline for the end of the 2012/13 tax year fast approaching, BMT is offering every Raine & Horne landlord a reduced fee to bring their depreciation schedules up-to-date. Usually BMT charges $715 including GST for a depreciation schedule, but will charge Raine & Horne landlords just $655 including GST. And don’t forget – the fee associated with the preparation of a tax depreciation report is 100% tax deductible.

Contact BMT on 1300 728 726 or bmtqs.com.au and please note this offer is available to Raine & Horne landlords Australia-wide.

The NSW Government’s recently-released white

paper, ‘A new planning system for NSW’, plans to

slash the development applications process to 25

days or fewer – a move that has been applauded

by Angus Raine, CEO of Raine & Horne.

“According to the white paper, the strict proposals

include maintaining the existing 10-day

complying development assessment track for

smaller applications such as new homes and

home extensions,” said Mr Raine, who for more

than a decade has called on the NSW Government

to reduce housing development red tape. “At

present, the government estimates that new

homes are taking an average of 64 days to assess,

with home alterations taking 58 days.

“We all know of horror stories of drawn-out

development applications, so any proposal

that can reduce the procedural speed bumps,

while also addressing affordability and the

investor drain to other states, has the thumbs

up from me.”

Andrew Sorensen, Principal of Raine & Horne

Charmhaven, on the Central Coast, said any

decision to speed up the approval process will

kick-start demand for new homes in the region.

“Charmhaven is just 44 minutes to Wahroonga,

making the region a virtual commuter-belt suburb

of Sydney,” said Mr Sorensen. “So it’s a logical

step to free up planning red tape to facilitate

housing growth in the Wyong Shire, which in

turn can help address the housing shortages in

the capital.

“There are large parcels of land at The Entrance,

for example, which are ripe for development,

while any changes in the rules and regulations

that enable people to split larger blocks would

also be worth considering. Currently splitting

blocks is costly and the bureaucratic hoops

just don’t make it worth the effort,” added

Mr Sorensen.

Lisa Surian, Director of Raine & Horne Parramatta,

said any proposal to reduce planning red tape will

create more choice for home buyers in Sydney’s

west. “We saw the impact changing the rules for

granny flats had a few years ago, which enabled

councils to approve these developments in just 10

days,” said Ms Surian. “It’s fair to expect that any

changes to the laws for building new homes and

renovations will prove a boon for the Parramatta

real estate market.”

Raine & Horne Parramatta recently sold at

auction an ex-Housing Commission property

at 19 Symonds Street, Parramatta. “The property

attracted 50 groups through at the open home,

with many potential buyers telling us that the

council red tape involved in renovating the

property was an excuse not to bid,” said

Ms Surian.

NSW

Local OutlookNSW government proposes planning laws to fast-track new developments

Local Outlook: NSW government proposes planning laws to fast-track new developments

FAQ: Your property questions answered by our experts

June 2013: Snapshot

TerraineYour guide to navigating the property market

National Outlook: Rate cut and lack of stock stimulates winter property prices

At its meeting just after Easter, the Reserve Bank of Australia decided to leave the cash rate unchanged at 3%.

“This represented the third time in 2013 that rates were left on hold, while the current rate is the lowest since the peak of the Global Financial Crisis in September 2009,” said Angus Raine, CEO of Raine & Horne.

RBA Governor Glenn Stevens nominated a number of reasons for leaving rates on hold, including forecasts of below average global growth. “While Europe remains in recession, the United States is experiencing a moderate expansion and growth in China has stabilised at a fairly robust pace,” said Mr Stevens.

Mr Stevens added that on the local real estate front, “Recent information suggests that moderate growth in private consumption spending is occurring, while dwelling investment is slowly increasing, with rising dwelling prices and high rental yields.”

This is supported by statistics from the RP Data – Rismark Home Value Index Release, which reported that property values across the combined capital cities of Australia recorded a 2.8% rise over the March quarter, taking the cumulative capital gain to 4.7% since the market bottomed in May last year.

According to Rismark’s Ben Skilbeck, a review of housing credit aggregates also indicates that the investor segment of the housing market is showing greater responsiveness to the low interest rate environment than the

owner occupier segment. “Credit growth for the 12 months to end February was 3.9% in the owner occupied segment compared to the investor segment at 5.6%,” he added.

“With gross capital city unit rental yields now at 4.9 per cent, and a number of short term fixed rate loans also being offered at these levels, it’s not surprising to see investors responding to these conditions more quickly than owner occupiers.”

Meanwhile, a curb on real estate ownership in China could also be great news for Australian property investors, according to Angus Raine. In March, the Chinese government announced a series of proposed restraints on real estate speculation, including stricter enforcement of capital gains tax on home sale profits and the imposition of higher deposits for the purchase of second homes. “Turning the screws on property speculation appears to be aimed at limiting a potential asset bubble in China,” said Mr Raine. “The potential upshot is that cashed up Chinese nationals will look to foreign real estate markets, which will surely mean more money flowing into Australian real estate markets in capital cities such as Sydney, Melbourne, Brisbane, Darwin and Perth.”

The move by the Chinese government comes hot on the heels of the introduction of the ‘Significant Investor Visa’, which accelerates migrant visas for foreigners who invest more than $5 million in approved investments in Australia.

National OutlookReserve bank leaves rates on hold as investors lead charge into real estate

My investment property has been vacant for a long time. What can I do to improve my chances of finding a tenant?

If similar properties in your area are renting faster than yours, there may be some factors about your investment which are deterring applicants.

For example, if you are advertising the property but not receiving many enquiries, then the issue is probably the rental price. Today, savvy tenants can easily make property comparisons from what they see on the internet and if your property is $30 more than a similar style of property in the same block, tenants are likely to prefer that property over yours.

But price may not be the only issue. If you are getting good enquiry but no applications, then the property itself may be the problem. Consider these factors: cleanliness, privacy and security. Tenants want them all and doing simple things such as adding a coat of fresh paint, and new carpets or new locks, are all investments that will help attract applications to your property and reduce vacancy times.

Should I get a tax depreciation schedule?

As an investment property ages, items and fittings start to wear out or ‘depreciate’. Fortunately, the Australian Tax Office (ATO) allows investors to claim the impact of depreciation as a tax deduction via a depreciation schedule.

A depreciation schedule is a report, generated by quantity surveyor, which outlines what items can be claimed. These items can include a percentage of the total value of the carpets, window blinds, stoves and even light fittings in the property depending on their age.

For newer residential properties built after 1987, investors can also claim on their depreciation schedule an amount equivalent to 2.5% p.a. of the original construction cost of the building itself. You can claim this deduction for up to 40 years.

With the 30 June deadline for the end of the 2012/13 tax year fast approaching, it’s not too late to organise a depreciation schedule for your investment property. It only needs to be done once and will set you back between $600 and $800. Moreover, the cost associated with the preparation of a tax depreciation report is 100% tax deductible.

FAQ

Lower interest rates, robust rental returns and low vacancies are combining to fuel a surge in investor activity across many real estate markets in NSW, according to leading property group Raine & Horne.

In Sydney’s Inner West, Tony Andreacchio, Principal of Raine & Horne Ashfield, estimates the investor renaissance has pushed property prices up in Ashfield by 10% since last year. “Investors have switched from units to houses and many have been keen to purchase homes above the $1-million dollar mark,” said Mr Andreacchio.

He added, “Many investors are purchasing properties with the prospects of long-term capital gain and strong rental yields via their self-managed super funds.” A case in point is a four bedroom art-deco duplex in Ashfield, recently sold by Raine & Horne Ashfield to a self-managed super fund for $1.1 million. “There are two dwellings attached to this title and the investor is achieving approximately $550 per week for each dwelling,” said Mr Andreacchio.

Investors are also making their presence felt in Sydney’s North West, according to Damian Hickey, Principal of Raine & Horne Castle Hill. “Since the New Year, homes priced between $600,000 and $670,000 have increased by 3% to 5%,” revealed Mr Hickey. “We are seeing investors bidding well at auction, drawn by Castle Hill’s good selection of schools, great shopping and the prospects of the North West rail link.” To illustrate, Raine & Horne Castle Hill recently sold a three bedroom apartment at 29/8-14 Mercer Street, Castle Hill for $585,000, which was rented within seven days for $575 a week. “This popular property sold within two weeks, and with Castle Hill also a hotspot for tenants, we are having no problems filling vacant rental properties,” added Mr Hickey.

Meanwhile, investors are also discovering there’s a steady stream of tenants in regional centres such as Dubbo, Tamworth, Armidale and Mudgee. According to the Real Estate Institute of NSW, rental vacancy rates in Dubbo and Mudgee are the lowest in the State, at just 1.1%. Scott Fittler, Sales Consultant for Raine & Horne Mudgee, said strong tenant demand has been fuelled by expansion of mines such as the Wilpinjong, Moolarben and Ulan West coal mines, approximately 40km north-east of Mudgee. “Investors considering a regional investment will find strong returns and low vacancy rates in Mudgee. The highest demand is for medium- to long-term rentals and we are entertaining a number of enquiries from local and interstate investors.”

For instance, Mr Fittler sold a modern four bedroom brick home at 60 Oporto Road, Mudgee, to a local investor for $373,000. “This investor bought the home with the goal of maximising the rental return. They are currently receiving $420 per week in rent for the property,” said Mr Fittler.

NSW RoundupInvestor demand pushes up property prices in NSW

NSW Roundup: Investor demand pushes up property prices in NSW

FAQ: Raine & Horne answers your investment and property management questions

NSWInvestorYour investment property news source

May / June 2013: Snapshot

National Outlook: Reserve bank leaves rates on hold as investors lead charge into real estate

Client:Raine & Horne

Project:Monthly Newsletters Bi-Monthly Newsletters

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Create and deliver monthly updates on properties and the property market through print and web platforms. This includes choosing engaging images to suit the articles provided by the client.

Client:O’Brien Palmer

Project:Roll-Up Banner

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Roll-Up banner to promote the company’s services following their branding guidelines.

Theme: Dress up in your best (let your inner glama-diva-rock-star-movie-star-

nutty come out and play!) Full bu�et and alcohol provided.

Partners are welcomed. Prizes for the best dressed.

DATE: Saturday, 15th December 2012.

TIME: 7:00 pm – 12:00 pm midnight.

VENUE: Chalk Hotel, 735 Stanley Street, Woolloongabba QLD 4102.

RSVP: With Julie at reception by 7th December 2012, julie.stokes@terex.com

Blue & Bling

Welcome to this year’s Genie Christmas party!

Client:Genie

Project:2012 Christmas Party Invite

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A fun Christmas invitation for Genie in 2012 - engaging the participants with a ‘ticket’ idea.

Client:UTS Hip-Hop Society

Project:Dance Timetable Poster

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A female and male version to target both genders.

webdesign

Client:Real Asset Connect

Project:Website Design

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Web service to find or register properties.

Client:Tattoo Studio Hunter

Project:Website Design

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A service that allows people to search nearby tattoo studios and artists.

Client:Lomondo

Project:Website Design

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Minimal and clean e-commerce website.

logodesign

Client:Real Asset Connect

Project:Logo Design

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A service that connects people with properties.

Client:Mantello Painters

Project:Logo Design

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Simple typographical logo that refl ects the service they provide.

Client:Demex Contracting

Project:Logo Design

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Strong and bold typographical logo, where the ‘M’ represents an excavator.

uidesign

Client:Raine & Horne

Project:App Interface Design

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Internal form app for staff only.

The application allows the corporate office to create dynamic questionnaires and automatically process the returned data into Raine and Horne’s enterprise system.

Client:Modknights

Project:App Interface Design

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Internal app for staff only. Modknights is a team of RSA Hosts in various licensed venues in Sydney. With this app, staff members would use it to track and record their observations during their shifts.