CREATING WEALTH AND LIFESTYLE THROUGH

by Grant & Christina Penrose

Issue 25

Finally, The Marketis on The Move!

24 Agents Selling Across Brisbane – LET US LOOK AFTER YOU!

How to Make Your Small Outdoor Space – MAGIC!

Property Rentals Brisbane

Landlord NumbersAre on the Rise…Along With BiggerTax Breaks!

Not Enough for the Deposit?3 Out-of-the-Box Ways toScore a Home of Your Own…

PROFILE REAL ESTATE

Welcome to our first newsletter for 2014.

It’s fair to say the market is “humming”, and all data thus farpoints to this being a bumper year in terms of propertygrowth and activity. We haven’t seen these marketconditions for years and the office is understandably filledwith excitement.

We’ve pulled together some great information for you in thisissue: the latest in property market information from REIQ,the Housing Industry Association, and Herron Todd White.There are some tips on fancying up small backyards,creative ways of pulling together a house deposit, and infoon tax breaks for investors.

February 2014 was a record sales month for the office: wesold over 40 properties, including 100% clearance on ourauctions. The other bit of exciting news is that we wereawarded the number 4 RE/MAX office in Australia for the2013 year! I’m so proud of the team and their achievements– it’s the culmination of years of hard work and dedication.Grant and I have been constantly high-fiving each other andwe can’t wipe the smiles off our faces.

Being awarded Number 4 Office is partly the result of ourteam’s around the clock dedication to the job – it’s beensuch a crazy busy year and (sigh) the days of workingschool hours only seems a long distant memory… Theresult is that we’re even more super-organised with our timeto ensure that we get to share as many precious momentswith Jade and the boys as we can. We count down the days

to our family holidays and have been sneaking away eachschool break to spend blissful days exploring beaches in theSouth East and Northern NSW coastlines.

Jade is working and busy in her young adult life andenjoying the freedom a car of her own brings (even if a littlenerve-wracking for us!) She often lines up for babysitting,which the boys adore and which offers us the rareopportunity to get out and about. The boys are loving theirsports, and are keen to be involved in any after schooloptions available for them – a win-win all round. One of theprerequisites for our holidays is to incorporate their twinpassions: bike riding and fishing!

Hope 2014 has been fantastic for you so far. I look forwardto seeing you out and about, and please don’t hesitate tocontact Grant or I if there’s any way we can help you.

Christina Penrose

We’re Off to a Great Start!

In this edition� Finally - The Market is on the Move!� How to Make Your Small Outdoor Space – Magic!� Not Enough for the Deposit? 3 Out-of-the-Box Ways to Score a Home of Your Own…� Property Rentals Brisbane� Landlord Numbers Are on the Rise… Along With Bigger Tax Breaks!� 24 Agents Selling Across Brisbane – Let Us Look After You!

2PROFILE REAL ESTATE

Please note we have revised our privacy policy. To view a copy please visit http://profilerealestate.com.au/privacy-policyShould you no longer like to receive mail from us please call or email us today on the contact details at the back of this magazine.

In line with what we have seen at RE/MAX Profile, the RealEstate Institute of Queensland (REIQ), Housing IndustryAssociation (HIA) and Herron Todd White - all report thatthings are looking up.

Looking over the last quarter (Oct-Dec), the REIQ’sQueensland Market Monitor signals “the Queenslandmarket is well into its next growth stage”.

“Over the December quarter, the Brisbane median houseprice increased 6 percent to $562,000…” The report revealshouse sales numbers in the $500,000 to $1,000,000 pricepoint were up about 20 per cent compared to the previousquarter. This is “typically an indicator that the confidence isreturning to the property market.” Paddington, New Farmand Indooroopilly were the three city-fringe suburbs thatrecorded the most property sales in excess of $1 millionover the quarter.

The report states, “the most recent figures show that inBrisbane, the average time it takes to sell a house hasreduced to 74 days, down from 87 a year ago with averagediscounting from list prices sitting at about 6 per centcompared to 7 per cent over the same period.”

It also says REIQ accredited agencies are reporting thatmany properties are now selling for their asking prices orabove with instances of multiple offers also increasing.

Finally - The Market is on the Move!

The National Outlook report from HIA suggests the housingindustry will be one of Australia’s ‘good news’ stories overthe next 12 months.

Herron Todd Whites March 2014 Month in Review andNational Property Market Report, also offered someencouraging comments:

“There continues to be excitement in our market for sellers.Just stopping in to check out an open home can result in ajoint experience amongst many. We appear to be in the first,qualitative stages of a moving market where listings are

getting bought up within very short time frames and there isa growing fear of missing out amongst potential purchasers.While we are still waiting for this to translate into solid valuegains across the broader market, there’s certainly energyamongst well priced property that’s closer into town.”

If you would like a copy of the full REIQ QueenslandMarket Monitor report, contact us today!

Sources: REIQ Queensland Market Monitor (OCT-DEC), HousingIndustry Association’s National Outlook Report, Herron Todd WhiteMarch 2014 Month in Review and National Property Market Report

LGA HOUSES UNITS LAND

Brisbane City 6.0% 2.0% 5.4%

Ipswich City 4.4% -7.8% 3.0%

Logan City 3.0% 5.7% -20.6%

Moreton Bay 7.7% -0.3% 13.6%

Redland City 3.5% 3.4% 25.0%

Gold Coast City 1.7% 1.5% -1.3%

Sunshine Coast 3.6% 6.3% 2.7%

MEDIAN SALE PRICE QUARTERLY MOVEMENTS

3PROFILE REAL ESTATE

Don't let the size of your backyard prevent youfrom turning your outdoor space into asensational garden. Ann McKeon fromGreenlife at Masters shares 5 expert tips tomaking the most of your space.

With more and more of us living in an urbanenvironment, it's important to make themost of our outdoor spaces to create anenjoyable and functional area, and theperfect getaway from the everyday.

1. First decide what the area is going to beused for, whether that's an entertainer'sparadise, a tranquil retreat or a kids’ playarea. This will help you plan and decide howto use the space and what plants to fill itwith. Ask yourself questions such as: will Ineed shade, privacy or plenty of sun? Thenchoose products which are both functionaland beautiful - a pretty vine which bears fruitor a shade plant which can double up as aprivacy screen.

2. If you're re-vamping your outdoor space, it'sa good idea to de-clutter first. Only keep theplants, pots and furniture which contribute

towards making your space the perfectoutdoor sanctuary, and don't cram things inas it will only make your space look smaller.

3. If using paving within a small backyard, besure to keep the design simple and free ofstrong geometrical designs which can oftenmake a space seem smaller.

4. Wall pots and hanging baskets are perfectfor apartment balconies. They take uplimited space and can transform a dull wallor area into a vibrant centrepiece.Alternatively, terraced shelving holding anarray of plant pots is also an effective use ofspace.

5. Remember that it doesn't take a lot to builda beautiful outdoor space - it's aboutchoosing the right things. A few sticks ofbamboo in a glazed pot will have a smallfootprint but will also add a touch of "rusticoutdoors" to your space.

Source : Life @ Home (August 2013)

How to Make Your Small Outdoor Space – Magic!

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As the only real estate office in Bardon weproudly support the community. Keep up withthe latest community events and news onhttps://www.facebook.com/bardonliving

PROFILE REAL ESTATE

For many, renting a property is a stop-gap solution on thepathway to the bigger dream of owning a home. And whilerenting provides a certain flexibility and potentiallyaffordability, the lure of home ownership appears as strongas ever it was.

How far would you go to own your own home? The optionof home ownership is not as unrealistic as it once wasthanks to improving affordability. These days renting can infact be more costly than repaying a mortgage in somecases. At present, this stellar combination of low interestrates, housing affordability and a market on the bounce-back presents a very exciting opportunity for first home

buyers. But what happens ifyou’re short on the deposit?Or perhaps the bank isn’twilling to give you a go justyet. Short of selling all of yourworldly possessions, orgiving up on the idea entirely,here are some alternativeways of entering theproperty market.

Sharing the loadCo-buying – also known as shared ownership, jointownership or co-ownership – is when two or more peopledecide to spread the financial burden and buy a propertytogether. More and more often, parents are buying with theirchildren, siblings are buying together, as are friends,extended family members, even colleagues. By pooling yourresources, you can afford somewhere bigger, better andsooner than you could alone. For those entering theinvestment market, the obvious advantages include thereduction in capital required and other associated costsinvolved in buying a property. Better locations can alsobecome more accessible due to the reduced risk.

However, just like a shared tenancy, it’s important toremember that a mortgage mate, a co-buyer or a co-investor is in essence, a partner. As such, there aresignificant legal and financial obligations to consider andplenty of due diligence is called for. Before you jump in, besure that everyone involved has the same intentions andgoals. Short vs. long term ownership, owner-occupied vs.tenanted – you get the picture. And most importantly withco-ownership, it’s vital that all parties have a legally prepareddocument – such as a Deed of Trust – when entering into aco-buying arrangement.

Getting a ‘leg up’Be honest, it wouldn’t be the first time we’ve had to ask theparents for a lending hand. Lucky for us, baby boomerparents are increasingly helping their kids into the propertymarket. Creative ways they are giving their children a “legup” include co-buying where the parent(s) provide the equityand the children take responsibility for paying the debt.

Get a GuaranteeThe other arrangement is by way of a guarantee. Thetraditional bank guarantee has been replaced by a productthat allows a parent to guarantee an amount to supplementthe borrower’s deposit. The size of the guarantee can belimited to a specific amount which protects the parent fromlosing their home should the child default on the loan.

Remembering that purchasing property is a long-termcommitment with ongoing costs, it is also a fantastic way tosecure a long-term future. So whether you decide on co-ownership, parental support or a good old fashioned ebaybonanza, it sure would be nice to have something to callyour very own.

Written By : Amanda HaackSource : www.reiq.com.au (4 July 2013)

Not Enough for the Deposit?

5

3 Out-of-the-BoxWays to Score aHome of YourOwn…

PROFILE REAL ESTATE

The Market

Property Rentals Brisbane

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“Helen, I just wanted to drop you a line to thank you for everythingyou have done with the property over the past couple of months.

It's not easy when a tenant drops behind in rent and we reallyappreciated that you kept on top of the situation.

When we changed our minds about the timing of coming toBrisbane, you had the property listed for rent the same afternoon andmanaged to have 2 applications in the first week.

And ... you managed to increase the rent also, which is exactly whatwe were needing with our mortgage repayments.

So I just wanted to drop a line to thank you as we really appreciatethe efforts you have put in.”

– Michelle Bridgford

What our clients say:

Brisbane Feb 2012 Feb 2013 Feb 2014

Median Weekly Rent - House $395 $400 1.3% $420 5.0%

Median Weekly Rent -Unit/Apartment $370 $380 2.7% $390 2.6%

Days on Market (Avg) 26.9 26.3 0.6 26.6 0.3

Days Vacant (Avg) 15.1 14.5 0.6 14.8 0.3

Recently Rented

Kenmore Hills $775 per week 4 bed - 2 bath - 2 car accommodation

Red Hill $365 per week 2 bed - 1 bath - 1 car accommodation

Sinnamon Park $1800 per week 5 bed - 3 bath - 3 car accommodation

Bardon $820 per week3 bed - 3 bath - 3 car accommodation

We’ll look after the professional photos for FREEif you list your property for rent with us before the end of April 2014.

Call our property management team today on 3510 5222; you’ll be glad you did.

LET US TAKE CARE OF YOUR INVESTMENT PROPERTY

PROFILE REAL ESTATE

The latest ATOpublication TaxationStatistics* shows thatthe number ofAustralians "with aninterest in" aninvestment propertyhas been steadily onthe rise in recent years. Having an interest in a propertymeans that it is either solely, jointly, or part owned.

The latest complete taxation statistics - for the 2010-11financial year - were released by the ATO at the end of thefirst quarter of 2013 (not all the data is in by the end of Juneor even October of any given year, so it takes a while tocrunch the final numbers). The data shows that by the endof October 2011, 7.8% of Australians owned at least oneinvestment property.

The average tax deduction claimed in relation to investmentproperty was $23,000 per landlord for the 2010-11 year.This represents an 18% increase on such claims from theprevious year.

Negative gearing of property still seems to be the perennialfavourite source of getting a tax break on propertyinvestment. Tax deductions claimed for interest costs inrelation to investment property jumped 23.5% from theprevious year, to reach around $22.7 billion. For 2010-11(and the year before), rental deductions were greater thanrental income, resulting in overall negative net rental income.Of individuals declaring net rental income, 80.6% claimedrental interest deductions.

Other allowable rental property deductions also rose, from$12.8 billion to $14.0 billion. These deductions include suchitems like legal costs related to borrowings, accountant andconsultant fees, management costs, council rates,advertising for tenants and depreciation.

Most of Australia's 1.76 million landlords (72.8%) had aninterest in just one investment property by the end of the2011 financial year, with less than 1% of them owning morethan six properties. This represents an increase in landlordnumbers of around 62,000 from the previous year (and doesnot include properties held in the name of a superannuationfund).

People earning between $37,000 and $80,000 representedthe largest group of taxpayers who held propertyinvestments, with this group claiming $3.6 billion in losses.

*Taxation Statistics is compiled by the ATO in consultationwith the Australian Bureau of Statistics, the Department ofTreasury and a number of academic and professionalbodies. The publication is only released sometime after theyear of income to which it relates. This allows the ATO toensure it includes details from late lodgments of returns andactivity statements.

Source : Taxpayers Australia Inc (July 2013)

Want FREE “do it yourself” instructions for showingoff your home so buyers will fall in love with it andpay your dream price?

Visit our facebook page: www.facebook.com/howtosellyourhomeforadreampriceinrecordtimeor order a copy of our book from our website www.propertysalesbrisbane.com/our-book/ or simply callor sms free book to 0418 747 997 with your email address today

Landlord Numbers Are on the Rise… Along With Bigger Tax Breaks!

7

Seduce yourBUYER with thehome of theirdreams!

record time!sell

BY GRANT & CHRISTINA PENROSE

How to your home for adream price in

PROFILE REAL ESTATE

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.

PO Box 388, Paddington QLD 4064Office phone: 07 3510 5256www.propertysalesbrisbane.comChristina 0418 737 327 christinapenrose@remax.com.auGrant 0418 747 997 grantpenrose@remax.com.au

A team of 24 Award Winning Agents SellingAcross Brisbane – Let Us Look After You!

NUMBER 4 RE/MAX OFFICE IN AUSTRALIA 2013

Aileen Tilley

Elliott Dean

Jonzun Lee

Kerryn O’Leary

Robert Dean

Alan Campbell

Grant Penrose

Juana Bernado

Liza McKilliam

Rod Westerhuis

Arthur Kapeleris

Maryanne Munro

Ryan Smith

Ben Mak

Prue Greenwood

Sam Sherman

Cayne Hyde

Randolf Wirkus

Stephen Pahl

Christina Penrose

Jocelyn Frost

Kerry Ryan

Rob Hyde

Sue Barnes

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