landlords' newsletter april 2014
DESCRIPTION
Landlords' Newsletter April 2014TRANSCRIPT
In this edition: How long will it take for your property to rent? Median Rents in Mining Areas Take a Dive Warning: The 5 Top Body Corporate Myths You Need to Know! Soaring Heights to Rock Bottom – Is Your Balcony Safe? Can’t Raise the Cash? The Good (and Bad) of Investing in Property with a Friend
April 2014
Get in Quick – Brisbane Tops the List for Rising House Prices in 2014! Capital City Rents Decline Cover Your Back – Why Entry Condition Reports are Essential! A Selection of Properties Recently Leased Quote Calendar of Events
It’s been a super busy first quar-
ter with lots of new business
coming our way. New rental list-
ings being chalked up on a daily
basis are a tribute to the great job
the team has been doing. Many
of our listings have come from
repeat business and word of
mouth referrals, along with lots of
leads from our sales team (who
know how fabulous they are!)
with sales booming also.
We have the wonderful Chris
McCall starting today – with loads
of experience and an absolute
commitment to exceeding land-
lord expectations, Chris will be
looking after the new business
side of our property management
division, freeing up Helen and
Lisa to focus exclusively on the
management and letting of prop-
erties.
Helen is looking forward to a
week off shortly (well-deserved
after the crazy pace of this year
to date), and to ensure all runs
smoothly we’ve employed a temp
to help out while she is away.
We hope you’ll be enjoying a
break over Easter. Our office will
be closed for the long weekend
and then we’ll be back in full
force ( yep, even the promise of
time off and unbridled chocolate
consumption can’t rival our addic-
tion to work ) on Tuesday the
22nd.
As ever, thanks so much for your
support and the wonderful testi-
monials you send in. It makes the
team’s day whenever they re-
ceive recognition from you for the
wonderful work they do!
Wishing you health, wealth and
happiness,
Christina
Team updates and Easter holiday schedule
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
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 February.
BRISBANE STATISTICS The Market
Source: rentfind.com.au
Brisbane, QLD February 2014 Annual Change
Median Weekly Rent - House $420 5.0% increase
Median Weekly Rent - Unit/Apartment
$390 2.6% increase
Days on Market (Avg) 26.6 0.3 decrease
Days Vacant (Avg) 14.8 0.3 decrease
Median Rents in Mining
Areas Take a Dive
Median weekly rents in Emer-
ald dropped by $170 over the
past year according to data
gleaned from bonds lodged
with the RTA in the December
quarter 2013.
In Emerald, median weekly
rent fell from $480 to $310 for
a 3 bedroom house, while rent
for a 2 bedroom unit de-
creased from $400 to $265
year on year.
There were also decreases in
Gladstone, where the median
rent for a 3 bedroom house
dropped from $500 (Dec qtr
2012) to $400 (Dec qtr 2013),
and for a 2 bedroom unit fell
from $410 to $330.
Mackay saw year on year
drops from $480 to $395 for a
3 bedroom house and from
$370 to $300 for a 2 bedroom
unit.
In Mount Isa, the median
weekly rent for a 3 bedroom
house dropped from $570 in
the December quarter 2012 to
$500 in the December quarter
2013.
Two bedroom unit median
weekly rent in Mount Isa fell
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
from $400 to $350 year on
year.
Meanwhile, median weekly
rents increased in the Surat
Basin area.
In Chinchilla, median rent for a
3 bedroom house increased
from $375 to $430 (2 bedroom
units rose from $350 to $400)
and in Dalby increased from
$300 to $320 ($210 to $235
for 2 bedroom units).
However, median weekly rent
for a 3 bedroom house in
Roma decreased from $450 to
$400 year on year.
At the Gold Coast, median
weekly rent rose $20 to $420
for a 3 bedroom house and
was up from $340 to $355 for
a 2 bedroom flat.
Median rents also rose in
Toowoomba, with an increase
from $290 to $300 for a 3 bed-
room house and from $225 to
$240 for a 2 bedroom unit.
Warning: The 5 Top
Body Corporate Myths
You Need to Know!
They’re Making Money Off Me!
The most commonly held myth
about body corporates is that the
body corporate is making money
off the lot owners.
Body corporates are not carrying
on a business. They’re not trad-
ing and they’re not offering ser-
vices. They are in fact expressly
restricted from carrying on any
sort of business activity.
They do lodge tax returns and in
most cases taxable income is
interest on monies held. That is
all. Collecting levies is not mak-
ing money; it’s recouping costs.
Yearly levies are calculated for
administrative funds by estimated
how much it’s going to cost to run
the body corporate in that year,
and then collecting that much.
Nothing else.
Sinking fund levies are calculated
based on a Sinking Fund Fore-
cast estimating costs over the
next 10 to 15 years.
Body corporates don’t collect
more than they need. The com-
mittee that’s putting together
these budgets – are lot owners
and have as much interest in
keeping the levies low as any
other owner.
Fraud with body corporate funds
is not unheard of but it is very
rare. Many body corporates are
just expensive to run, mainly be-
cause they have expensive facili-
ties. In the body corporate world
you pay for what you get.
The Body Corporate Manager
Is In Charge
Part of the problem with the idea
the body corporate is making
In Brisbane, median weekly
rent rose slightly from $400 to
$410 for a 3 bedroom house
and from $390 to $395 for a 2
bedroom unit.
View complete median rent
data for the December quarter
2013 or search for media rents
by postcode.
Source : www.rta.qld.gov.au
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
money off the lot owners is con-
fusing the body corporate man-
ager (BCM) with the body corpo-
rate committee.
In most cases BCM’s are firms
that are making money off lot
owners. They do that by contract-
ing to body corporates to under-
take specific tasks of the commit-
tee. By hiring a BCM the commit-
tee, made up of volunteers, can
minimise the necessary hours to
be invested but still have the
body corporate managed well.
Effectively BCM’s are a cross be-
tween a secretary and an Ac-
countant rolled up in a great big
juicy roll of industry know-how.
They advise. They suggest even.
They do not make decisions.
Well, they will make decisions if
owners specifically appoint them
to do so, but, even then, they just
follow legislation. No BCM ever
really wants to find themselves in
charge.
Body Corporates Have Lots Of
Money
This one seems to be a favourite
of contractors and tradespeople.
Again, body corporates do not
trol what you can and can’t do
within the lot.
There will most likely be restric-
tions on what you can do. One of
the great benefits of body corpo-
rates is curb-side appeal, that
sameness that looks smart and
sophisticated. Any external
changes to a lot could interrupt
that look so they’re usually con-
trolled.
Other restrictions, things like
bans on hard flooring and reno-
vation policies will relate to mini-
mising noise and impact on other
lot owners.
Internal works may be restricted
due to load bearing walls and
windows and so on.
For the most part any changes,
inside or outside the lot, will need
to be approved by the committee.
So definitely read the by-laws.
You Can’t Tell Me What To Do
Again, I’ve got some bad news.
That doesn’t mean the body cor-
porate can hassle you about how
much salt you’re eating or wear-
trade or make money. Their
funds come directly from lot own-
ers in the form of levies.
It may seem like they have a lot
of money but what they really
have is a lot of cash. Cash
they’ve raised by levying the lot
owners. And those levies are
raised because the body corpo-
rate intends to spend that money.
All of it: even the sinking fund.
Some people may view a body
corporate as a company or a
business that can just trade out
of the problem but it’s really,
really not. It’s just a group of peo-
ple who are trying to maintain or
improve their investment.
Any increase in costs above
quoted works is for costs that
have not been budgeted for. On
a good day the budget can be
juggled to cover the cost. On a
bad day, lot owners will need to
dip into their pockets again.
I Can Do What I Like Within My
Lot
Actually, not really. One of the
things I tell everyone buying into
a body corporate situation is to
read the by-laws. They will con-
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
ing a short skirt, but they can tell
you how to act if you’re on com-
mon property.
Or even if you’re within your lot, if
what you’re doing within your lot
is breaching one of the by-laws.
The by-laws exist for a reason.
They’re rules put in place to let a
group of relative strangers all live
together without deteriorating into
a mindless free-for-all that leaves
everyone scarred for life.
The same with body corporate
legislation. Body corporates work
best when they’re populated with
people who follow rules. They
also attract people who have an
obsessive need to follow rules
and then point out to others that
they’re not following said rules.
Strange as it may sound this is
actually a good thing.
Body corporates are here to stay
and it benefits everyone who
owns and lives in one to disre-
gard myths and see them for the
investment vehicle that they are.
Written By: Lisa Rutland
Source : www.reiq.com.au
(15 January 2013)
Soaring Heights to Rock
Bottom – Is Your
Balcony Safe?
Summer may have just passed,
but many of us are lucky enough
to be able to enjoy the outside all
year round: at the beach, in the
garden or on the balcony.
If your favourite outdoor room is
a balcony, take time now to
check that it is in good repair.
Wooden balconies and decks are
often subject to water damage
and rot, and should they col-
lapse, can result in serious injury.
Furthermore, many of the timber
decks built in the sixties and sev-
enties were constructed with in-
appropriate timber that is now
rotting and becoming unsafe, es-
pecially when extra weight is
placed on them.
Structures that pose most risk
are those that rely on timber
beams for support, although any
balcony or raised deck, whether it
is timber, concrete or features
steel supports, should be
checked out regularly for safety.
Some warning signs include –
Rusting bolts and brackets
Holes or cuts in the balcony
floor surface or balustrades
where water might get in
The balcony moves when
walked on
Damp spots or stains
where the balcony joins the
main part of the building
Rust stains and cracks,
particularly near joints and
corners
Shaky handrails and balus-
trades
Balustrades where damp
spots or stains can be seen
on the cladding
If warning signs are evident, or if
you have any doubt, you should
seek advice from a qualified ex-
pert as soon as possible.
Here are some tips for safer bal-
conies:
Hardwood is the strongest
choice for decking timber.
Often hardwood is hard to
treat but its natural durabil-
ity means that it will stand
the test of time. It is recom-
mended that hardwood be
seasoned (usually kiln-
dried).
Compressed sheeting is a
synthetic option that is du-
rable, cost-effective and
waterproof. The sheeting
can be covered with any
finishing material.
Ventilation for supporting
bearers and joints is (or at
least should be) provided
by minimum ground clear-
ance. Where the walls be-
low the deck are enclosed,
sub-floor ventilators must
be also be provided.
Additionally, the ground clear-
ance must be increased where
the deck/floor is to be con-
structed in a termite prone area.
These requirements are regu-
lated in the Building Code of Aus-
tralia.
Source: Echo News (6 March 2014)
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
market can seem almost impossi-
ble for the would-be property in-
vestor. But does that mean you
should share the cost with a
friend?
Friendship can be a funny thing.
When it works it can be both ful-
filling and fun, but when it falls
apart it can turn your life upside
down.
Now imagine your investment
portfolio is financially intertwined
with that friendship. What then?
Co-ownership, that is buying an
investment property and sharing
the cost with a friend, can be of
prolific benefit, especially given
the escalating cost of property
and rising cost of living.
Pooling your resources with an-
other also assists with any addi-
tional and ongoing costs associ-
ated with investment properties
like rates, repairs and any nega-
tively geared mortgage gaps.
So if you are limited by a single
income and want to get into the
market, have trouble getting fi-
nance, or think it would be easier
to make payments with an invest-
ment partner, then sharing the
burden can be a good way to get
started - as long as you know the
relationship isn't going to break
down.
Source: Your Investment Property
Get in Quick – Brisbane
Tops the List for Rising
House Prices in 2014!
Brisbane looks set to top the list
for rising house prices across
Australia in 2014, according to
the National Australia Bank
(NAB) Quarterly Residential
Property Survey.
The survey of Australian property
professionals highlights key pre-
dictions for the housing industry
in 2014–15, including rising
prices for lower-and top-end
properties, owner-occupiers
dominating the housing market,
and strong demand for inner-city
housing and low-rise apartments.
In keeping with Brisbane’s lead,
the top suburbs that are forecast
to outperform in the housing mar-
ket this year include Bulimba:,
New Farm and West End, along
with the regions of Caboolture,
the Gold Coast and Toowoomba.
The average capital-city house
price is expected to rise 6 per
cent in the year to end of 2014.
According to NAB, this is the re-
sult of low interest rates, im-
Can’t Raise the Cash?
The Good (and Bad) of
Investing in Property
with a Friend
Unless you can access existing
equity, or happen to be a super-
star at saving, breaking into the
proved affordability, population
growth, longstanding supply is-
sues and foreign buying activity.
House prices in Perth are set to
rise modestly in 2014 by 2.7 per
cent and the top suburbs that are
likely to experience growth in-
clude: Maylands, South Lake and
Subiaco, along with the nearby
city of Mandurah. The survey re-
veals middle/outer-ring houses
will remain the most sought after
and demand is expected to in-
crease further.
Melbourne is expected to be
among the best performers in the
country with a 3.2 per cent rise in
house prices. Inner-city housing
and low-rise apartments in sub-
urbs such as Cheltenham, Frank-
ston, Glen Iris, Hastings, Rich-
mond and Toorak will drive de-
mand and boost the housing
market.
Meanwhile, in Sydney, house
price gains will rise 3 per cent
and the best-performing suburbs
will be: Darlinghurst, Dulwich Hill,
Marrickville and Potts Point,
along with Blacktown, Liverpool
and Penrith in Greater Western
Sydney.
S o u r c e : h t t p : / /
www.propertyoz.com.au/
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Capital City Rents
Decline
Despite a decline in the national
vacancy rate, asking rents for
houses across Australia’s capital
cities have fallen.
New figures from SQM Research
reveal the capital city average
asking rent declined by 0.7 per
cent for houses, but rose by 1.2
per cent for units in the 12
months to February 2014.
Canberra and Perth recorded the
steepest declines, with the na-
tional capital experiencing a 7.6
per cent decrease in asking rents
for houses and a 5.5 per cent de-
cline for units. Perth’s asking rent
for houses dropped by 10.7 per
cent and units dropped by 7.4 per
cent.
SQM Research’s managing di-
rector Louis Christopher said
Canberra’s decline can be ex-
plained simply: government job
cuts in the city have seen an exo-
dus of residents from the area.
Perth’s negative result could be
attributed to the downturn in the
mining boom and the corre-
sponding decrease in demand for
rental dwellings.
Sydney was the standout per-
former with a 2.3 per cent in-
crease in asking rents for houses
and a 3.6 per cent increase in
asking rents for units on a yearly
basis.
Mr Christopher said the results
were a mixed bag for investors.
“Overall rental conditions contin-
ued to modestly favour landlords
over the course of the month. It
has been some time since we
recorded a definitive decline in
vacancies in what could be a sign
that excess stock seen in Mel-
bourne is starting to be occupied.
Meanwhile the sharp falls in rents
for Perth are in line with the rising
vacancies being recorded there
and are a manifestation of a
rather rapid decline in demand
for accommodation,” he said.
The national vacancy rate
dropped from 2.2 per cent in
January to 2.1 per cent in Febru-
ary.
Source: smar tproper ty invest-
ment.com.au
Cover Your Back – Why
Entry Condition Reports
are Essential!
Preparing an Entry Condi-
tion Report can seem like
just another task on the long
list of lessor/agent require-
ments at the start of every
tenancy.
But completing the report is a
good opportunity to carefully
check the condition of the
property – including stairs,
decks and verandahs – to
identify any repair and mainte-
nance issues before they be-
come a problem.
Completing the Entry Condi-
tion Report is a good opportu-
nity to check the condition of
the property, including stairs,
decks and verandahs
The Entry Condition Report
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
the tenant or lessor/agent to
complete each of these steps
within the given timeframe is
a n o f f e n c e u n d e r
the Residential Tenancies and
Rooming Accommodation
Act 2008 (the Act).
It can be a good idea for either
party to take dated photos or
videos recording the condition
of the place at the start of the
tenancy as this can help to
minimise the risk of disagree-
ment about the state of the
property later in the tenancy.
Disputes about the standard of
the premises before the tenant
moves in should be dealt with
at the start of the tenancy –
addressing these concerns at
the end of the tenancy is often
a more complicated process.
It’s a good idea for all parties
to keep a copy of the Entry
Cond i t ion Repor t and
the lessor/agent must keep a
copy of the form for at least a
year after the tenancy agree-
ment ends.
Source: www.rta.qld.gov.au
(Form 1a) is the official record
of the state of the rental prop-
erty when a tenancy begins
and it may be used as evi-
dence in a dispute about the
bond or the condition of the
property at the end of the ten-
ancy agreement. The report
can help support a lessor/
agent’s claim for compensa-
tion if the property has been
damaged beyond normal fair
wear and tear, and it can pro-
tect a tenant from unsubstanti-
ated claims.
On or before the tenancy’s
start date, the lessor/agent
must prepare the report, mark-
ing each item as clean, work-
ing or undamaged, as appro-
priate. The lessor/agent
should note any additional
items, sign the report, and give
a copy to the tenant.
The tenant then has 3 days to
add their own comments, sign
the report and return it to
the lessor/agent, who then has
14 days to provide the tenant
with a copy of the final report
which has been signed by
both parties. Failure of either
16 April Mid Month Accounting 18 April Good Friday (Office Closed) 20 April Easter Sunday (Office Closed) 21 April Good Monday (Office Closed) 25 April Anzac Day (Office Closed) 1 May End of Month Accounting
A Selection of Properties Recently Leased
Kelvin Grove House $470p.w.
3 bed, 1 bath, 2 car accommodation
Quote
“If you want to make your dreams come true, the first thing you have to
do is wake up.”
—J.M. Power
Spring Hill House $995 p.w.
4 bed, 2 bath, 2 car accommodation
RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5221 FAX 07 3876 5544
www.profilerealestate.com.au Bardon QLD 4065 TEL 07 3510 5227 Helen [email protected]
www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Chelsea [email protected]
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.
Indooroopilly House $730 p.w.
3 bed, 2 bath, 2 car accommodation
Calendar of Events