march 13 - maryanne birch€¦ · murarrie n/a n/a n/a n/a n/a n/a n/a n/a n/a 365 395 420 450 570...

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March 2013 PROPERTY MANAGEMENT NEWS Refer a Friend and Receive 3 months Free Management Fees. If you know anyone who is unhappy with their current service, Send Them to Us and We Will Rebate Your Fees For 3 Months!! (Couldn’t resist this after all the Shenanigans in Canberra over the past month hehe) “My definition of a free society is a society where it is safe to be unpopular” – Adlai Stevenson An investment property is one that needs to serve your needs and create wealth for your future. A part of the investment life cycle sometimes involves having to sell. If you are thinking of selling, please consider these points. Let your property manager know your property manager should be the first to know once you have decided to sell. They have the relationship with your tenant and can arrange access and inspections for your selling agent. They are also able to arrange quotes and detailing to prepare your property for market. Consider an incentive – it is to your benefit that the property be presented at its best, and be available when inspections are necessary. This may involve some goodwill to your tenant like reducing the rent for a set period, providing a cleaner or yard maintenance. The fact that the property is on the market can create stress and upheaval for your tenant. If they are in a non fixed term lease, they know they may have to move in the near future. If they are in a fixed term lease, tenure is guaranteed to the tenant (unless they agree otherwise, which may involve a monetary form of compensation by negotiation). Fixed term tenancies can deter home occupiers – if you are contemplating selling, do not lock in a new fixed term agreement with your tenant. If a buyer requires vacant possession at settlement (which many do) this can put off a buyer who wishes to move in, or prove costly if you have to negotiate an early termination with a reluctant tenant. The best result for everyone concerned will be gained by working together to work out a ‘winwin’ scenario and bring the property to a sale with the best achievable outcome. What is a Bargain? Getting this much house and land in such a central location at the bottom range of entry level! That’s a bargain especially when it’s in the burgeoning suburb of Cannon Hill with its own special new local area plan –to take up the big expansion predicted for the area. Fabulous infrastructure and lifestyle developments have already started, so get in now while its still affordable!!!!!!! With Tax time fast approaching, this new legislation is one to be wary of if you are not residing in Australia. The Government has removed the 50% capital gains tax (CGT) discount for nonresidents on capital gains accrued after 8 th May 2012. The CGT discount will remain available for capital gains accrued prior to this time where non residents choose to obtain a market valuation of assets as at 8 th May 2012. If this affects you, we recommend that you contact your accountant to see if there is anything you should do to prepare for when you decide to sell your investment property. STOP PRESS!!!! Interest Rates Remain On Hold Again RBA announce Cash Rate remains unchanged at 3% at this months Reserve Bank meeting. NO SURPRISES THERE

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Page 1: March 13 - Maryanne Birch€¦ · Murarrie N/A N/A N/A N/A N/A N/A N/A N/A N/A 365 395 420 450 570 580 Norman Park 240 245 300 360 355 375 350 390 390 410 450 450 450 600 660 Tingalpa

March 2013

PROPERTY MANAGEMENT

NEWS  

Suburbs&

Flats& Houses&

1&bed& 2&bed& 2&bed& 3&bed& 4&bed&

10& 11& 12& 10& 11& 12& 10& 11& 12& 10& 11& 12& 10& 11& 12&

Balmoral 320 405 340 360 390 385 370 385 390 440 440 475 760 885 890 Bulimba 320 405 340 360 390 385 370 382 390 440 440 475 760 885 890 Cannon Hill 240 245 300 360 355 375 350 390 390 410 450 450 450 600 660 Camp Hill 220 230 230 330 350 350 325 400 385 410 420 420 510 530 570 Coorparoo 245 260 260 330 340 350 350 360 360 400 425 450 430 540 600 East Brisbane 310 310 325 430 440 470 355 385 415 450 495 495 545 660 650 Greenslopes 240 260 275 315 320 350 335 370 400 400 400 430 490 N/A 540 Hawthorne 320 405 340 360 390 385 370 385 390 440 440 475 760 885 890 Morningside 240 245 300 360 355 375 350 390 390 410 450 450 450 600 660 Murarrie N/A N/A N/A N/A N/A N/A N/A N/A N/A 365 395 420 450 570 580

Norman Park 240 245 300 360 355 375 350 390 390 410 450 450 450 600 660 Tingalpa N/A N/A 213 285 290 290 N/A 290 N/A 365 385 415 430 430 455 Woolloongabba 220 210 275 380 440 420 375 430 370 380 450 450 550 440 690 Wynnum 200 205 220 300 310 310 320 330 350 380 375 390 500 470 505

June 2012

PROPERTY MANAGEMENT

NEWS !

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It# has# been# relatively# quiet# on# the#Sales# front# this# month,# inspite# of#the# fact# that# we# currently# have# a#well# stocked# book# of# fairly# priced#listings.# # First# home#buyers# are#out#and#about# in#the#market#place,#but#they# are# difficult# to# pin# down,# and#very# price# aware.# Investors# are#

In#preparation# for# tax# time,# the#ATO#has#put# together# some# tips# to# help#investment# property# owners# correctly#claim# rental# property# deductions# this#year.# # Here# are# some# tips# to# avoid# a#follow#up#from#the#ATO.#Click#on#the#link.#

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around# too,# but# many# are#submitting# low# offers,# and# are#willing# to#walk# if# their# price# is# not#met.# # Another# interest# rate# drop#would# certainly# help# boost#confidence,# but# we# may# have# to#wait#until#later#in#the#year#for#this.#

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The#RTA#June#quarter#median#rents#report#has#now#been#released,#with#no#real#surprises.##We#have#compiled#a#condensed#version#including#some#of#our#main#areas,#which#shows#the#2010#–#2012#year#on#year#comparisons.##With#the#exception#of#a#couple#of#glaring#spikes#in#particular#categories#(these#are#usually#caused#by#a#bulk#supply#of#newly#released#stock#within#a#suburb#which#skews#the#local#area#trend)#there#is#a#consistant#thread#

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showing#an#approximate#10%#increase#in#rental#values#across#all#categories#since#2010.###

We#consider#these#factors#when#we#review#and#make#recommendations#for#rent#adjustments#on#our#management#properties.#We#also#use#these#statistics#to#help#tenants#understand#that#their#rent#increases#are#representative#of#fair#market#value.##See#the#attached#link#for#full#report.#RTA#Median#Rents.

#

Refer&a&Friend&and&Receive&3&months&Free&Management&Fees.&

If#you#know#anyone#who#is#unhappy#with#their#current#service,#Send#Them#to#Us#and#We#Will#Rebate#Your#Fees#For#3#Months!!#

(Couldn’t  resist  this  after  all  the  Shenanigans  in  Canberra  over  the  past  month  hehe)  

 

“My  definition  of  a  free  society  is  a  society  where  it  is  safe  to  be  unpopular”  –  Adlai  Stevenson  

 

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An  investment  property  is  one  that  needs  to  serve  your  needs  and  create  wealth  for  your  future.  A  part  of  the  investment  life  cycle  sometimes  involves  having  to  sell.  If  you  are  thinking  of  selling,  please  consider  these  points.    

Let  your  property  manager  know  –  your  property  manager  should  be  the  first  to  know  once  you  have  decided  to  sell.  They  have  the  relationship  with  your  tenant  and  can  arrange  access  and  inspections  for  your  selling  agent.  They  are  also  able  to  arrange  quotes    and  detailing  to  prepare  your  property  for  market.    

Consider  an  incentive  –  it  is  to  your  benefit  that  the  property  be  presented  at  its  best,  and  be  available  when  inspections  are  necessary.  This  may  involve  some  goodwill  to  your  tenant  like  reducing  the  rent  for  a  set  period,  providing  a  cleaner  or  yard  maintenance.    

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The  fact  that  the  property  is  on  the  market  can  create  stress  and  upheaval  for  your  tenant.  If  they  are  in  a  non-­‐fixed  term  lease,  they  know  they  may  have  to  move  in  the  near  future.  If  they  are  in  a  fixed  term  lease,  tenure  is  guaranteed  to  the  tenant  (unless  they  agree  otherwise,  which  may  involve  a  monetary  form  of  compensation  by  negotiation).  

Fixed  term  tenancies  can  deter  home  occupiers  –  if  you  are  contemplating  selling,  do  not  lock  in  a  new  fixed  term  agreement  with  your  tenant.  If  a  buyer  requires  vacant  possession  at  settlement  (which  many  do)  this  can  put  off  a  buyer  who  wishes  to  move  in,  or  prove  costly  if  you  have  to  negotiate  an  early  termination  with  a  reluctant  tenant.    

The  best  result  for  everyone  concerned  will  be  gained  by  working  together  to  work  out  a  ‘win-­‐win’  scenario  and  bring  the  property  to  a  sale  with  the  best  achievable  outcome.    

 

What   is   a   Bargain?   Getting   this  much  house   and   land   in   such   a   central  location   at   the  bottom   range  of   entry  level!   That’s   a   bargain   –   especially  when   it’s   in   the  burgeoning  suburb  of  Cannon   Hill   with   its   own   special   new  local   area   plan   –to   take   up   the   big  expansion   predicted   for   the   area.  Fabulous   infrastructure   and   lifestyle  developments  have  already  started,  so  get   in   now   while   its   still  affordable!!!!!!!    

With  Tax  time   fast  approaching,   this  new   legislation   is  one   to  be  wary  of   if  you  are  not  residing  in  Australia.  

The  Government  has   removed   the   50%  capital  gains   tax   (CGT)  discount   for  non-­‐residents  on  capital  gains  accrued  after  8th  May  2012.  The  CGT  discount  will  remain  available  for  capital  gains  accrued  prior  to  this  time  where  non-­‐residents  choose  to  obtain  a  market  valuation  of  assets  as  at  8th  May  2012.  If  this  affects  you,  we  recommend  that  you  contact  your  accountant   to  see   if  there  is  anything  you  should  do  to  prepare  for  when  you  decide  to  sell  your  investment  property.  

 

STOP  PRESS!!!!  Interest  Rates  Remain  On  Hold  Again  RBA  announce  Cash  Rate  remains  unchanged  at  3%  at  this  months  Reserve  Bank  meeting.  NO  SURPRISES  THERE  

Page 2: March 13 - Maryanne Birch€¦ · Murarrie N/A N/A N/A N/A N/A N/A N/A N/A N/A 365 395 420 450 570 580 Norman Park 240 245 300 360 355 375 350 390 390 410 450 450 450 600 660 Tingalpa

141 Riding Rd Hawthorne Q 4171 Ph: 07 3899 1888 Fax: 07 3395 7246 www.maryannebirch.com.au [email protected]

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sufficiently   interested   in   building  new  houses  or  apartments  to  market  to  the  first  home  buyer  segment.  

•  You   would   expect   low   interest  rates,   government   grants   and  improved   confidence   to   eventually  lead   to  more  homes  being  built.  But  the   timing   is   uncertain,   and   that  makes   it   difficult   for   builders   and  material  suppliers.  

•  It   is  hardly   rocket   science.   Interest  rates   are   stable,   the  Aussie   dollar   is  healthy   and   both   share   prices   and  home   prices   are   rising.   Add   in   the  absence   of   bad   news   from   abroad  and  lo  and  behold  Aussie  consumers  are   more   optimistic.   The   mistake  made   by   analysts   in   recent   months  has   been   to   expect   that   rate   cuts  would   lift   confidence.   But   with  depositors  outnumbering  borrowers,  the   best   news   for   consumers   of   all  types   is   for   interest   rates   to   be   left  on  hold.  Two  months  of  stable  rates  and   confidence   is   up   almost   10   per  cent……  

So,  What  are  the  implications?  

•  NSW  and  Queensland  will   need   to  re-­‐visit   decisions   to   change   first  home  owner  grant  schemes.    

•  Gen   Y   aren’t   as   keen   as   their  parents   were   on   buying   or   building  homes   with   many   preferring   to  travel   and   change   jobs   rather   than  being  stuck  paying  a  mortgage  for  30  years.   It   is   up   to   builders,   material  suppliers,   governments   and  policymakers   to   better   understand  the  changes  occurring  in  the  housing  market.  

•  If   developers   or   investors   build  homes   for   the   first   home   buyer  segment   they   will   need   to   do   their  homework   very   well   to   ensure   the  right   type  of   homes   are   built  where  buyers  actually  want  to  live.  

•  There   is   no   pressing   need   for   the  Reserve  Bank  to  cut  rates  at  present.  

Another  Glorious  Insult  from  the  Past:  

 "He  has  never  been  known  to  use  a  word  

that  might  send  a  reader  to  the  dictionary.  

"William  Faulkner  about  Ernest  Hemingway

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Consumer  confidence;  Housing  Finance  

•  Home  loans  down:  The  number  of  new  owner-­‐occupier  housing  loans  fell  by  1.5  per  cent  in  January,  the  fourth  straight  decline.  The  number  of  loans  stands  at  16-­‐month  lows.  

•  First  home  buyers:  In  January,  14.9  per   cent   of   loans  were   taken  up  by  first   home   buyers.   In   NSW   there  were   just   773   first   home   buyers   in  the   month,   the   lowest   level   in   31  years  of  records.  

•  Consumer   sentiment:   The  Westpac/Melbourne   Institute   index  of  consumer  confidence   rose  by  2.0  per   cent   to   27-­‐month   highs   in  March.    

•  Banks   in   favour,   but   shares   up:   In  the  March  quarter,  34.0  per  cent  of  consumers   believe   that   the   wisest  place  for  new  savings  is  in  the  bank.  But  the  biggest  improver  was  shares  with  8.6  per   cent  believing   that   the  best   place   for   new   savings   was   to  invest  it  in  the  sharemarket,  up  from  6.4   per   cent   in   the   December  quarter.    

What  does  it  all  mean?  

•  In   theory,   the   switch   in   eligibility  of   first   home   buyer   grants   from  existing   properties   to   new   homes  made   sense.   The   idea   was   to  encourage   building   of   new  properties.   In   practice,   it   hasn’t  worked  –  at  least  not  yet.  First  home  buyers  have  shown  a  lack  of  interest  in   building   their   first   home,  preferring   to   rent   or   buy   an  established  property.  

•   In   part   it   is   a   timing   effect   –   the  new  homes   (houses   or   apartments)  must   be   planned   and   built.   And   if  first   home   buyers   don’t   elect   to  build   new   homes   themselves,   they  must  rely  on  investors  or  developers  to   do   so.   The   question   is   whether  investors   or   developers   are  

Auction Results

SUMMARY AUCTION

RESULTS REPORT for all suburbs in QLD from March 1, 13 to March 31, 13

TOTAL SOLD 484 40.8% TOTAL PASSED IN 638 53.8% TOTAL WITHDRAWN 64 5.4% TOTAL NO. OF AUCTIONS: 1186 100%

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The   Australian   stockmarket   has  recorded   encouraging   growth   over  December   2012   and   January   2013  following   improved   news   regarding  the   international   economy.   The   US  economy  continues  to  consolidate  its  recent  modest  improvement  and  has  managed   to   effectively   address  significant   issues   regarding   national  fiscal   policy   settings.   The   Chinese  economy   is   also   back   on   track  recording   strong   and   rising   growth  over  the  December  quarter.  

The   prospects   for   Australia’s  resources   sector   remain   robust  particularly   given   recent   strong   rises  in   iron   ore   prices   driving   high   levels  of  exports.  

Unemployment   levels   however  remain  a  key  determinant  of  housing  market   activity.   It   is   no   coincidence  that   regions   with   the   lowest  unemployment   rates   have   the   best  performing   housing   markets.   Latest  ABS   data   for   December   reports  Western   Australian   unemployment  at   4.3   percent,   New   South  Wales  at  5.1   percent,   Victoria   at   5.6   percent,  Queensland  rising  to  6.2  percent  and  South  Australia  at  5.7  percent.  

Source:   Craig   James,   Chief  Economist,  CommSec