CREATING WEALTH AND LIFESTYLE THROUGH

by Grant & Christina Penrose

Issue 19

Malice inTenant Land– Damage to

RentalPropertieson the Rise!

But is YourHome ActuallyReady To Fetch

Your DreamPrice?

Should You or Shouldn’t You? –The Pros and Cons ofSubdividing…

DON’T Do ItYourself WithAsbestos!

Five CostlyMistakes WhenPurchasingProperty!

Helping you understand Real Estate

PROFILE REAL ESTATE

A Successful Start to the Year!We recently attended the RE/MAX Annual AwardCelebrations. It was a great night out with the crew and atotal buzz to have our entire office officially recognised fortheir superb efforts. Sometimes trophies can seem like atoken, but for us they’re a symbol of everything we strive toachieve each year interms of chalking upexcellent sales recordsand giving the bestpossible service to ourclients. Please find to theright a picture of Grantand I with the award forthe office (check out thatshining star!).

Well 2012 has certainly started with a bang for us. The saleshave been pouring in with a fantastic February. The rentaldepartment has been really busy letting properties, as this isthe time of the year with the most turnover, and as suchthere have been lots of rent increases resulting in very happylandlords. Both the sales and rental teams are alsoexpanding with what seems like new team members joining

all the time! One of the awardswe received at the recentawards night was for being thetop recruitment office - we werethe office that grew the most insales agents for the year.Testament to the wonderfulpeople we have and thelongevity of their service I think!

Life at home has also been busy as usual with the boys allsettling into their routine (after the holidays) which hasstarted to include one night a week sleeping over at theirgrandparents. (We are so lucky and so are they!) It is greatfor Grant and I to get a night out together and tonight we’llgo to the movies with Jade so it will be just the three of uslike it was in the old days. Wonderful for us to have thisopportunity and of course the boys are ecstatic and arealways delighted to be going to their grandparents wherethere are dogs and horses and acres to explore.

We hope this finds youwell and happy. If we canhelp you in any way withproperty advice we wouldlove to. Please don’thesitate to contact usanytime.

Wishing you health,wealth and happiness

Christina Penrose

In this edition� A Successful Start to the Year!

� Should You or Shouldn’t You? – The Pros and Cons ofSubdividing.

� Protecting Your Legal Documents.

� Malice in Tenant Land– Damage to Rental Properties on theRise!

� You’ll Need the Paperwork to Prove it!

� Landlords Can Now Spend Fifty Dollars To Save Hundreds.

� DON’T Do It Yourself With Asbestos!

� Great News for Queensland Home Buyers: The QLD BuildingBoost Program has Been Extended.

� Buy Ready to Rent to Avoid Tenancy Headaches.

� Five Costly Mistakes When Purchasing Property!

� But is Your Home Actually Ready To Fetch Your DreamPrice?

� Make Your Move Easier

� How to Ensure Low to No Vacancy for Your Rental Property.

2 RE/MAX PROFILE REAL ESTATE creating wealth and lifestyle through property

Joshua & Daniel at Lone Pine

The boys making friends

Alexander with his kangaroo food

Pros of Subdividing:

• Maximising existing property.

• Creating two or more lots from one block.

• Turn one house into two or more houses (or townhouses)on one block.

• The more townhouses on the property, the bigger thedecrease in cost per unit, and hence the gap betweencost and profit increases.

• You’re able to borrow against the land titles you’vecreated.

• You create greater opportunity to sell and hold some unitswith multiple units.

• Increase your sole investment property into two, three orfour investment properties.

• Add substantial value to the existing value of the propertyby gaining development and subdivision approval.

• Greater capability to negotiate a better deal with the banksdue to the creation of more titles.

• By creating more titles and building more townhouses, theprofit on cost increases due to the economies of scale.

• When purchasing a property, you have the ability tonegotiate a long-term settlement (six months plus) whileobtaining council development approval, which will saveyou thousands of dollars on holding costs.

• More cost effective to subdivide than to buy new land, asyou’re using the existing land.

Cons of Subdividing

• Time consuming and complex.

• Requires patience.

• Requires existing cash liquidity for costs associated withplans and permits and deposit for project construction.

• Need to understand theprocess clearly orotherwise you’re headedfor a bad experience.

• Need to have a great teambehind you from planningexpertise to delivery ofproject which can takemany years to establish.

• Majority of cash is tied up in the development.

• It could take up to two years to see any money comingback to you from the sale of your development.

• Need to have a strong cash flow in order to support yourdevelopment and subdivision regardless of the scale of thedevelopment.

• Dealing with councils and tribunal and sorting out disputeswith objecting neighbours.

Source : Australian Property Investor Magazine (February 2012)

Should You or Shouldn’t You? The Pros and Cons of Subdividing…

What happens to your essential documents if yousuddenly have to evacuate your home?

Having to replace legal documents can be costly and, aboveall, time consuming. The best way to circumvent beingcaught in the lurch is to keep all your important legal paperstogether. A small, portable safe is ideal for this – so that youcan pick it up and run. Important documents include:

• Birth and marriage certificates

• Passports and citizenship papers

• Health records

• Wills

• Banking and credit card details

• Investment documents

• Insurance documents

• Computer back-upUSB or hard drive

• Mortgage papers(lodge house title witha solicitor or in a safe-deposit box)

If possible, scan copiesof all importantdocuments and storeon a USB.

Written By : Mary Costello

Source : www.domain.com.au (6 December 2011)

Protecting Your Legal Documents…

Grant & Christina Penrose www.propertysalesbrisbane.com 3Materials and articles in this publication are general comment, not advice. The information is believed to be accurateand reliable but no responsibility is taken for any opinions expressed or for errors or omissions. Readers should notact on the basis of the material without taking professional advice relating to their particular circumstances.

You’ll Need the Paperwork to Prove it!With the ATO increasing their audit activity all the time it is important to keep your tax receipts.

The ATO motto is: NO RECEIPT =NO DEDUCTION so you could becosting yourself thousands ofdollars by not keeping them.

Under the Australian system ofself-assessment it’s the individual’sobligation to have the correctdocumentation in relation to allclaims.

Keep receipts and all relevantdocumentation.

Be thorough.

4 RE/MAX PROFILE REAL ESTATE creating wealth and lifestyle through property

Malice in Tenant Land – Damage to RentalProperties on the Rise!Australia’s tenants are causing more damage to rentalproperties – but it’s not all malicious.

Terri Scheer Insurance figures show that accidental damageto rental properties is increasing at a higher rate thanmalicious damage claims.

We have found a 34% increase in the frequency of maliciousdamage claims paid over the past year.

The frequency of accidental damage claims increased by ahigher 46% over the same period.

The average size of malicious damage claims increased by3.6% over the past year, while the average size of accidentaldamage claims increased by a much higher 16%.

These figures challenge the stereotypes that exist in relationto rental property damage. There is a widely-heldmisconception that good tenants won’t cause damage.

The figures show that this is far from true. Even the besttenant can cause accidental damage to a property.

Accidental damage is caused by asudden and unexpected event. Thismight include a broken window orspilling red wine on the carpet.

It mayalso coverdamage caused by small children,but excludes gradual “wear andtear” that has been sustained overtime.

Malicious damage occurs when a tenant causes damage toa property out of spite or ill will.

This might include holes punched in walls, doors that havebeen kicked in, intentional damage to flooring or arson.

Despite accidental damage claims increasing at a higherrate, malicious damage remains a more common type ofclaim.

Terri Scheer’s figures also show theaverage value of individual maliciousdamage claims is 27% higher thanclaims for accidental damage.

Malicious damage is often more extensive than accidentaldamage and more likely to be spread over a number ofrooms.

Terri Scheer has paid claims as high as $40,000 to repairmalicious damage by tenants.

In addition, malicious damage claims are often accompaniedby claims for loss of rental income during the time it takesfor the damage to be repaired.

The figures can’t tell us why damage claims are increasing,however it might be the result of uncertain economic times.

When times are tough, tenants may be more inclined to takeout their frustrations on their rental properties.

This is why landlord insurance is so important to minimisethe impact of damage caused by tenants.

Regular property inspections can enable landlords to quicklyidentify if and when any damage to their property hadoccurred and potentially mitigate loss.

The sooner a landlord is aware of the damage, the soonerthey can prevent further damage occurring and lodge aninsurance claim.

It is also a good idea for landlords to appoint a propertymanager to oversee their rental property.

A property manager can help you to choose the righttenants and conduct regular inspections.

Tenants who have been careless with rentalproperties in the past may also be more likelyto seek rental properties that are not managedby a professional property manager.

Source : The Australian Real Estate Review (21 December 2011)

Materials and articles in this publication are general comment, not advice. The information is believed to be accurateand reliable but no responsibility is taken for any opinions expressed or for errors or omissions. Readers should not

act on the basis of the material without taking professional advice relating to their particular circumstances.

DON’T Do It Yourself With Asbestos!Home renovation is becoming almost a nationalpastime.

We recall the Australian Building Commission’s timelyreminder that do-it-yourself renovators should takeprecautions to prevent exposing themselves or their familiesto asbestos.

Asbestos was widely used in building materials from 1940 toas recently as the early 1980s. It comes in two forms:

• Firmly bound material, such as cement sheeting, roofshingles and imitation cladding

• Loosely bound material used in older types of insulationfor hot water pipes, domestic heaters and stoves, andceiling insulation.

Asbestos in your home is not necessarily a health risk.However, when it is broken, cracked or disturbed in activities(such as renovating) that produce dust or fibres, it can beinhaled and potentially cause fatal lung diseases.

It is therefore of the utmost importancethat asbestos-cement products in homesbe removed and disposed of safely andlegally, by qualified professionals.

Asbestos waste can only be disposed of at a licensedlandfill. It is illegal to re-use, recycle or `dump’ asbestosproducts, or put them in domestic garbage bins.

The importing of asbestos and asbestos-containingmaterials is now banned in Australia.

The Building Commission recommends the followingprecautions to reduce asbestos exposure:

• If your home was built between 1940 and 1980 and youintend to renovate, check to see if you have asbestosbefore starting.

• If you suspect that you have asbestos or requireinformation, contact your Environmental Health Officer atyour local council.

• It is recommended that a licensed asbestos removalistremove loosely bound asbestos. Even for firmly boundasbestos, it may be difficult to follow the prescribed safetyprecautions yourself, so use an expert.

• Have the work overseen by a Registered BuildingPractitioner who will always work in accordance withasbestos safety practices or will have a licensed asbestosremovalist do the work, when required.

• Information on waste disposal sites that accept asbestosis also available from the Environmental ProtectionAuthority.

Source : Quartile Property Network (5 August 2011)

Lessors can take advantage of the Queensland Government’s ClimateSmart Home Service,which helps Queenslanders tackle their increasing energy costs.

For a $50 fee, lessors can take advantage of the ClimateSmart Home Servicein their rental properties.

An electrician will visit the property to install a wireless power monitor, up to 5 power-savinglight globes (CFLs), and where appropriate a power- and water-saving showerhead as well asadjustment to the hot water system’s heating temperature.

The service is designed to help people to save money on their electricity bills.

More than 300,000 Queensland homes have now signed up to theClimateSmart Home Service which is continuing to help homes save bundles on their power bills.

Jennifer from Eatons Hill is making great bill savings from the service.

“We are making sure at the end of day before we go to bed everything is turned off. We are findingthe stand-by eliminator especially useful for this, or when we’re going out for long periods of time, it’sjust one button to press,” Jennifer said.

To book a service, visit the ClimateSmart website or phone 133 600. Services are available from 7amto 7pm, Monday to Saturday.

Tenants should seek their lessor’s permission before booking the ClimateSmart service.

Source : RTA Newsletter (October – November 2011)

Landlords Can Now Spend Fifty Dollars To SaveHundreds…

Grant & Christina Penrose www.propertysalesbrisbane.com 5Materials and articles in this publication are general comment, not advice. The information is believed to be accurateand reliable but no responsibility is taken for any opinions expressed or for errors or omissions. Readers should notact on the basis of the material without taking professional advice relating to their particular circumstances.

First-time property investors should be sure to buyproperty that is not only suitable but also ready torent.

Often first-time investors buy solely on price rather thanevaluating the property’s tenancy opportunities.

Investors are much better off purchasing a property that isready to rent even if it is a little more expensive, as thisminimises vacancy factors and provides a better returnoverall.

Tips on what should be included in your property to makesure it’s ready to lease include:

• Fully fenced rear gardens

• Carpets where necessary

• Flyscreens

• Screen security doors

• Keyed window locks

• Clothes line

• Gardens and landscaping

• Driveways

• Letterbox

• TV antenna

• Insulation

• Heating/cooling

A tenant will expect these items and should you purchasea new property without these items, your tenant will morethan likely ask you to include them.

Feel free to contact us for all your property investmentneeds on 3510 5222.

Buy Ready to Rent to Avoid Tenancy Headaches…

Everyone wants to purchase their dream propertywhether to live in or for investment.

Here are five costly mistakes you can and should avoid.

1. Buying Sight Unseen – You should NEVER purchaseproperty that you haven’t seen. If buying off the plan besure to understand the site and what will be included andmost importantly visit the site prior to signing anything.

2. Over-reliance on Agents – Make sure you understandwhat services your agent will carry out for you. Thisapplies whether you are buying, selling or have employeda managing agent for your investment.

3. Choose Partners Wisely – When entering a joint ventureensure that all parties understand the purpose of theventure. Decide how funds are handled and what exitstrategies are in place.

4. Lack of Research – Alwayscarry out proper research. What is selling in the area? How much? What agents aremost active?

5. Real Estate Is Long-term –Always purchase property forthe long-term. Understand that if the market drops it will regainthose losses over time.

Five Costly Mistakes When Purchasing Property!

Home buyers looking for a property in Queensland have been given anadded bonus following the government’s decision to extend the state’s$10,000 Building Boost program.

“Any initiative which helps the Queensland property market is always welcomed andthe extension of the boost until 30 April will likely assist hundreds of extra buyersinto a new home,” Real Estate Institute of Queensland CEO Anton Kardash said.

“However, while our property market is starting to show signs of recovery, theremoval of the principal place of residence concession on stamp duty last year

continues to act as a deterrent to many buyers ofboth established and new homes,” he said.

The $10,000 Queensland Building Boost is available to buyers or builders of newQueensland homes under $600,000 who sign a residential contract on or before 30 April2012.

Source : Real Estate Business Bulletin (16 January 2012)

Great News for Queensland Home Buyers: The QLDBuilding Boost Program has Been Extended…

Materials and articles in this publication are general comment, not advice. The information is believed to be accurateand reliable but no responsibility is taken for any opinions expressed or for errors or omissions. Readers should not

act on the basis of the material without taking professional advice relating to their particular circumstances.6 RE/MAX PROFILE REAL ESTATE creating wealth and lifestyle through property

One of the key factors in maximising your rentalreturns is minimising your vacancy factor.

Your vacancy factor is the period of time per annum thatyour investment property is vacant. By minimising yourvacancy factor you can increase the annual rental return,thereby making your investment more effective.

Often landlords seek higher rental amounts and theirproperty sits vacant for a few weeks whilst a tenant isfound. These weeks of vacancy are costly and are rarelyoffset by the small increase in weekly rent once a tenant issecured.

Tips for minimising your vacancy factor include:

• Secure and offer long-termleases

• Ask market value rent

• Maintain premises so that thetenant is comfortable

• Be flexible in negotiations

• Tend to repair requestspromptly in order to keep good relations with the tenant.

Contact us for all your property investment needs.

But is Your Home Actually Ready To Fetch Your Dream Price?Obtaining a good price for your home is everybody’sgoal when selling.

But obtaining your dream price is even better. The questionis: “Is your home ready to fetch your dream price?”

Preparing your home for sale is important. Presentation,making sure your home looks and feels smart is importantwhen seeking your dream price.

Tips for preparing your home for a dream price include:

1. Finish all DIY projects. Before placing your home on themarket make sure all your handyman projects arecomplete.

2. Lawns and gardens. Make sure yourlawns and gardens present well. Trimovergrown shrubs and plants, repair anyworn lawns, keep your garden hosesstored out of sight.

3. Driveway and entrance. First impressions count, ensureyour driveway and paths are clean (free of oil stains etc).

4. Furnish to sell. Minimise your furnishings and considerhiring appropriate furnishings from a specialist company.

5. De-clutter. Remove any clutter,unused toys, kitchen appliances,clothing etc.

6. Bright and breezy. Open yourhome up. Lots of natural lightenhance the emotional appeal of your home.

Please feel free to check out our book “How to Sell Your Home in Record Time for a Dream Price” for additional tips. To get your FREE copy justcall or SMS us with ‘free book and your postal address’ and we will send you a copy straight away or logon to ourwebsite http://propertysalesbrisbane.com/our-book/ and order a copy there.

If you are consideringselling and want yourdream price please don’thesitate to contact us on0418 747 997.

Make Your Move Easier…Moving home is rarely “fun” and generally entails a lotof hard work and precision planning.

Often in midst of the excitement we can overlook the “littlethings” that can make a move so much easier. Here is achecklist of tips to make your move easier.

1. De-clutter and clean out before you pack.

2. Mark boxes clearly as to what room they are going to.

3. Prepare a box of essentials which should include:a. Toiletriesb. Towelsc. Toilet paper

d. Spare light bulbse. Remote controls (often misplaced)f. Screwdriver (always handy)

4. Make sure youressential servicesare connected.Electricity, gas,telephone.

5. Notify insurancecompany.

How to Ensure Low to No Vacancy for Your Rental Property…

Materials and articles in this publication are general comment, not advice. The information is believed to be accurateand reliable but no responsibility is taken for any opinions expressed or for errors or omissions. Readers should notact on the basis of the material without taking professional advice relating to their particular circumstances.

Grant & Christina Penrose www.propertysalesbrisbane.com 7

8

PROFILE REAL ESTATE

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Materials and articles in this publication are general comment, not advice. The information is believed to be accurate and reliable but no responsibility is taken for any opinions expressed or for errors or omissions. Readers should not act on the basis of the material without taking professional advice relating to their particular circumstances.

P: 07 3510 5256 M: 0418 747 997E: grantpenrose@remax.com.au christinapenrose@remax.com.auA: PO Box 388, Paddington QLD 4064W: www.propertysalesbrisbane.com

Selling? Order a Free Book Today.Call us or SMS “Free Book” with your name and address to 0418 747 997, or go to www.propertysalesbrisbane.com/our-book and we will rush you a copy. Seduce yourBUYER with thehome of theirdreams!

record time!

sell

BY GRANT & CHRISTINA PENROSE

How to

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