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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
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