re/max profile landlords' newsletter may 2014
DESCRIPTION
RE/MAX Profile Landlords' Newsletter May 2014Landlords' Newsletter May 2014TRANSCRIPT
In this edition: How long will it take for your property to rent? Tenancy Application Forms Essential Tips for First Time Property Investors Rents down
May 2014
Interstate Investors Eye Brisbane Claim the Cash Now or Later… How to Choose the Best Strategy for YOUR Investment! A Selection of Properties Recently Leased Quote Calendar of Events
They say that autumn is a bitter sweet
season, and while we farewell the won-
derful Chelsea as she prepares to have
a baby and move away from Brisbane,
we welcome Haleigh as she steps into
Chelsea's position. A loyal, reliable and
efficient team member, Chelsea will be
much missed even as we wish her well
and celebrate this special new chapter in
her life. We feel incredibly blessed that
the super-capable Haleigh, who has
been with us several months and with
RE/MAX for seven years, has been
working closely with Chelsea for the past
few months to ensure a smooth transi-
tion in assuming the trust account man-
agement role and keeping everything
running seamlessly.
Chris McCall has now been with us a
month and has been doing a fabulous
job increasing our communications and
reporting to landlords during the letting
process and look after new business
enquiries. This, along with the appoint-
ment of Julie Francis-Fahey, another
Senior Property Manager who we also
welcomed to the team this month, will
reduce the workload for Helen (whose
hours have gotten a little crazy as a con-
sequence of attracting lots of new busi-
ness) and allow our business to continue
to grow while still offering great individual
service to each and every one of our
landlords and tenants. We have attached
profiles for Chris, Helen and Julie to give
you a clearer picture of the experience
and service each specifically offers.
We will always welcome any feedback
and suggestions you have for how we
can improve our services and keep eve-
rything moving forward ( email chris-
[email protected]) and even
more especially because we believe we
have the right people to lift the service
we provide to another level again and
are keen to do so! You now also have a
choice of property manager available so
please feel free to let me know if you
have a particular preference to stay with
Helen as your manager or would be
happy to work with Julie in moving for-
ward.
With the end of the financial year going
to be here before we know it we would
encourage you to look at your tax posi-
tion and consider if it would be beneficial
to do any maintenance or improvements
before June 30th and let us know as
soon as possible, so we can help organ-
ise services for your property before the
last minute rush!
Wishing you health wealth and happi-
ness,
Christina
Welcoming autumn with new team members
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 March.
BRISBANE STATISTICS The Market
Source: rentfind.com.au
Brisbane, QLD March 2014 Annual Change
Median Weekly Rent - House $415 5.1% increase
Median Weekly Rent - Unit/Apartment
$390 2.6% increase
Days on Market (Avg) 26.6 3.7 decrease
Days Vacant (Avg) 14.9 4.1 decrease
Tenancy Application
Forms
Our agency has a strict tenancy
application process.
All applicants must complete our
best practice application form (a
copy is available upon request)
and provide 100 point identifica-
tion, proof of income, personal
references and proof of previous
living arrangements. We also
check the tenant details against a
national tenancy default data-
base.
We verify the applicant‟s details
as part of application processing
process and discuss all tenancy
applications with you. What we
are seeking from the tenant on
your behalf is sound evidence of
the following;
The applicants‟ ability to pay
the rent for the property; and
The applicants‟ ability to care
for the property.
Please note that the RTRA Act
allows for a minor (a person un-
der the age of 18) to apply for a
property in their own right. Of
course, as with all applicants, mi-
nors would be assessed the
same ways as adults and appro-
priate and sufficient evidence of
meeting the criterion mentioned
above will be taken into consid-
eration.
Discrimination Law
Queensland Discrimination law
states that it is unlawful to dis-
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
criminate against people with the
following attributes;
The Anti-Discrimination Act
1991 says that it is against the
law to discriminate against
people because of their:
➤family responsibilities
➤sexuality
➤gender identity
➤sex (whether they are female
or male)
➤relationship or parental status
(whether they are married, single,
widowed, divorced, separated or
living with someone as if they
were married (defacto, including
same sex de facto), and whether
they have children or not)
➤race
➤age (whether they are young or
old)
➤impairment (whether they have
or have had a physical, intellec-
tual, psychiatric or mental disabil-
ity, injury or illness, including
whether they are HIV+, or use a
guide dog, wheelchair or some
other remedial device)
➤religious belief or activity
➤political belief or activity
➤trade union activity
➤lawful sexual activity (a lawfully
employed sex worker)
You can request a special term
that tenants are to keep the pet/s
outside only or if you allow pets
to be inside this can occur. Also a
special term will be added to the
tenancy agreement to require
tenants to carry out pest control
for fleas upon ending the ten-
ancy.
➤pregnancy or breastfeeding
➤association with or relation to
someone who has any of these
listed attributes or personal char-
acteristics
Whilst we understand that your
investment is your property, it is
against the law for our agency to
accept illegal instructions based
on the above attributes. It is how-
ever not unlawful to state how
many people you wish to live at
your property, whether you allow
smoking or if you allow pets
(unless a guide dog) in the prop-
erty. This will be discussed fur-
ther with you upon signing of the
management agreement to ob-
tain your instructions in this re-
gard. Illegal instructions cannot
be accepted.
Pets
As a landlord, you have the right
to accept or refuse pets at your
investment property. If your prop-
erty is a house with suitable fenc-
ing, it is recommended that con-
sideration be given to allow a pet
at the property, as this type of
property may attract people with
pets therefore broadening your
options in the market place and
making your property more ap-
pealing to many.
Essential Tips for First
Time Property Investors
Financial independence is some-
thing we all dream about, espe-
cially in today‟s often challenging
and uncertain economic environ-
ment.
Sadly, many of us do not have,
and will not have sufficient assets
when we retire and hence won‟t
have sufficient income to help
provide for a decent standard of
l i v i n g .
Thankfully, there are strategies
we can adopt that will help build
these all important income earn-
ing assets, and one of them
is residential property invest-
m e n t .
If done correctly, property invest-
ment can provide both cash flow
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Rents down
Rents are rising for houses; flat for attached dwellings & already falling
for some apartments.
Annual rent changes in Brisbane last year were: a drop of $10 per
week for 1-bed apartments (-3%); -$10 per week for 3-bed apartments
(-2%); No change for 2-bed attached & 2-bed houses; an increase of
$5 per week for 3-bed attached (1%); + $10 per week for 3-bed houses
(3%) & + $15 per week for 4-bed houses (3%).
Already high volumes of new apartment supply are forcing rents
down. Tenants can afford more rent – as our recent Brisbane Market
Outlook Report suggests – but currently they have ample choice.
Source: matusikmissive.com.au
April 2, 2014
Outlook: Brisbane—Part 2
and capital gains thereby provid-
ing an ongoing income stream
and a welcome cash lump sum
when the property is eventually
s o l d .
Peter Boehm, Consulting Fi-
nance Editor with onthe-
house.com.au, has an extensive
knowledge and understanding of
the consumer finance, home loan
and property sectors in Australia.
He has written several articles to
help explain the pros and cons of
property investment along with a
series of articles containing must
k n o w t i p s .
His recent article Top 10
‘Essential Tips for First Time
Property Investors‟, guides first
timers along the road to financial
independence. Tips include doing
things such as:
Setting clear financial objec-
tives
Treating your property invest-
ment as a business
Seeking help
Researching the market
Being patient and investing
sensibly
As a property investor, it is bene-
ficial to get all the advice, data
and analysis and help on offer.
T o r e a d m o r e a b o u t
the Essential Tips for First
Time Property Investors,
please click here.
Source: onthehouse.com.au
April 2014
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Interstate Investors Eye
Brisbane
Property investors are expected
to shift their focus from the capi-
tal cities of Sydney and Mel-
bourne this year and instead look
more seriously at Brisbane,
where the affordability proposi-
tion is vastly improved.
But just how much cheaper is
Brisbane in comparison to its In-
terstate rivals?
According to Place Advisory Di-
rector Lachlan Walker with Bris-
bane‟s median apartment price
sitting at $383,000, the apartment
market in the Sunshine State‟s
capital is some 26 per cent more
affordable than Melbourne, which
has a median price of $481,000
and 45 per cent cheaper than
Sydney, where the median price
is $557,000.
“In Brisbane, one-bedroom apart-
ments, situated just one kilometre
from the CBD, are available from
$339,000 and they max out at
around $500,000 for premium
stock, while in Sydney the same
type of apartment would start at
around $500,000,” he said.
“A median price disparity of this
magnitude has not been seen
between these cities since 2004.”
According to RP Data, the price
differential between the east
coast capitals of Brisbane, Syd-
ney and Melbourne is just as pro-
nounced for houses, with Bris-
bane almost 60 per cent cheaper
than Sydney.
Brisbane‟s median price is
$480,000, while Melbourne‟s is
$610,000 and Sydney‟s is
$765,000. Perth, incidentally, is
also 15 per cent more expensive
than Brisbane, with the median
house price sitting at $540,000.
Meanwhile, the RP Data figures
also show that 76 per cent of
house sales in Brisbane are un-
der $600,000, while in Melbourne
the same statistic is 62 per cent
and in Sydney it‟s 44 percent.
Mr Walker said the value proposi-
tion for Brisbane was providing
investors with a rare opportunity
to not only snap up a property for
a significantly cheaper price, but
also to capitalise on upcoming
capital growth.
“Brisbane is extremely affordable,
with high yields and substantial
investment in infrastructure creat-
ing a long term buying opportu-
nity,” he said.
“There is no doubt that there will
be some value growth in Bris-
bane real estate this year, with
higher demand leading to price
growth.
“Sydney and Melbourne have
already seen considerable
growth, with double-digit price
increases over the past year, but
this growth is now set to slow,
with the focus shifting to Brisbane
as the next key growth area for
Australia.”
Mr Walker added that Brisbane
was generally 12 to 18 months
behind Sydney in the property
cycle and with Sydney having run
hot last year, it was now Bris-
bane‟s turn, with the city likely to
actually lead growth in the capital
cities over 2014.
According to Mr Walker, Sydney
and Melbourne were usually
thought of as Australia‟s most
stylish and cosmopolitan – and
consequently, desirable – areas,
thanks o their flourishing enter-
tainment, cultural and restaurant
scenes, as well as efficient public
transport systems.
“For these reasons, these capital
cities are both extremely popular
places to visit and live, and this
has translated into investment,
particularly from overseas,” he
said.
“But Brisbane, traditionally seen
as the big country town to the
north, is finally gaining ground on
its interstate cousins in areas that
they have long dominated – that
is, in the social, cultural and
transport realms.”
Brisbane‟s up and coming enter-
tainment and restaurant scene
was recently documented on a
national scale in January this
year, when the city was awarded
the title of Australia‟s „Hippest
City‟ by Lonely Planet, thanks to
its edgy arts scene, pumping
nightlife and great coffee and res-
taurants.
“The city is also currently under-
going massive redevelopment of
several of its prominent entertain-
ment precincts including the
CBD, South Bank, West End and
Fortitude Valley,” Mr Walker said.
“The future infrastructure projects
planned for Brisbane, including a
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
$5 billion underground bus and
train proposal, aims to make the
city more accessible and reduce
heavy future traffic congestion.”
Source: reiq.com
REIQ Journal, April 2014
depreciation value available over
the life of a property. However,
the two methods use different
formulas to calculate deprecia-
tion deductions, achieving differ-
ent short and long term cash flow
positions for the property inves-
tor.
Legislation allows property inves-
tors who use the diminishing
value method to increase the
rate an asset depreciates at,
therefore increasing deductions
sooner. This method calculates
the depreciation based upon the
reduced written down value re-
maining so the deduction dimin-
ishes over time. The prime cost
method uses a lower percentage
rate of depreciation and results in
a consistent deduction per year,
spreading the deductions out
more evenly over time.
To investigate how the outcome
varies over a five, ten and fifteen
year period for both methods, a
sample of BMT Tax Depreciation
Schedules was analysed for
properties which contained as-
sets totalling $33,000 in value.
The following plant and equip-
ment table shows a comparison
of the depreciation claimed over
time, as they accumulate and in
five year blocks.
Claim the Cash Now
or Later… How to
Choose the Best
Strategy for YOUR
Investment!
The Australian Taxation Office
(ATO) allows investors to choose
between two methods of claiming
depreciation on the fixtures and
fittings within their investment
properties. These are the dimin-
ishing value and the prime cost
methods of depreciation.
Every property investor is likely
to have a different investment
strategy, so it is important for
them to understand how their
choice between the two different
methods of claiming depreciation
will affect their cash flow.
The diminishing value and prime
cost methods both claim the total
The analysis found that investors who chose the diminishing value
method had claimed 67% of the depreciation available in the first five
years. By comparison, 42% of the depreciation available had been
claimed by investors who chose the prime cost method over the same
period.
At the ten year period, investors who chose the diminishing value
method had claimed 91% of the deductions available, while investors
who chose the prime cost method had only claimed 84% of the total
deductions available.
After fifteen years investors using each method had claimed almost all
the deductions available, with 98% of deductions claimed using the di-
minishing value method and 99% using the prime cost method. The
remaining depreciation claim of $521 for the diminishing value method
or $212 from the prime cost method after fifteen years would be
claimed over the balance of the life of the property.
As the example shows, investors who choose the diminishing value
method claim greater depreciation deductions in the earlier years of
owning the property. From the sample we can see $21,991 in deprecia-
tion deductions were claimed using this method by comparison to
$13,912 using the prime cost method in the first five years. If an inves-
tor is only planning on holding a property for a shorter period of time,
they wish to build their investment portfolio quickly or they want to save
quickly to budget for a renovation to the property, this method might be
their preference.
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Alternatively, those who prefer to
claim deductions at a more con-
stant rate over a longer period of
time may choose the prime cost
method of depreciation. As can
be seen in the sample, those who
chose this method would be able
to claim higher deductions in the
eleven to fifteen year period,
where the total claim using the
prime cost method was $5,026
compared with only $2,305 using
the diminishing value method.
A property investor can only use
one method to claim depreciation
deductions. Once an investor
chooses the depreciation method
used for an asset, it cannot be
changed. It is recommended that
investors discuss which method
best suits their individual situation
with an Accountant and to con-
sult with a Quantity Surveyor who
will find the highest possible de-
ductions for each of the two
methods.
To see the alternative formula,
scan this QR code or visit
bmtqs.com.au/formulas
Article Provided by BMT Tax De-
preciation.
Bradley Beer (B. Con. Mgt, AAIQS,
MRICS) is the Managing Director
of BMT Tax Depreciation. Please
contact 1300 728 726 or
visit www.bmtqs.com.au for an
Australia-wide service.
15 May Mid Month Accounting 2 June End of Month Accounting
A Selection of Properties Recently Leased
Greenslopes House $460p.w.
3 bed, 1 bath, 1 car accommodation
Quote
“Happiness is the absence of the striving for happiness.”
—Zhuangzi
Indooroopilly House $650 p.w.
4 bed, 3 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 Chris [email protected]
www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen [email protected]
Julie [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.
Herston Townhouse $480 p.w.
3 bed, 2 bath, 1 car accommodation
Calendar of Events