Real insights to assist your property knowledge
- Show all categories
- Property Investment & Management
- Selling Your Home
- Market Updates
- Buying a Home
- Renovating & Presentation
- Consumer Advice
- RealWay Community
- Agent News
- Property Investment
- RealWay Home
- Living Discussions
- Smoke Alarms
- Topics of Interest
- Property Maintenance
- Renting
- Renovating
- Research
- Buying
- Management
- Selling
- Tips
Dec 7, 2022
Tips for managing your mortgage stress
Changes in markets, the cost of living and rising interest rates can put a strain on mortgages and increase the level of stress around day-to-day life activities. Rather than get into overwhelm with the additional load, there are steps that you can take to lighten some of the pressures of mortgage stress. If you are feeling additional pressure, it is a good idea to talk with your lender or financial advisor for solutions that will help to ensure that you are staying on top of your required payments. They will be able to offer a range of solutions based on your needs and affordability. Declutter the budget When was the last time that you sat down and took a look at your budget? Do you have a budget that details your income and expenditure or at least looks at what’s coming in versus what is going out? It is a great time to declutter that budget, put all the monthly expenses down and analyse where your money is going each month. You may find that you are paying for subscriptions or services that you no longer use or identify areas to tighten up spending habits. Renegotiate on utilities, insurance, and repayments When looking at your budget, you may find that you are spending larger amounts on utilities, insurance, and other repayments. It is wise to take the time to research other options available on the market to see that you are getting the best deal. The Australian Government has created a very useful website to easily check all available competition within the energy market and provides estimates on how much each company charges. You may find that in many cases, you can renegotiate interest rates on your loans with the bank, and plans with utility and insurance companies. It is also great to investigate government rebates that are available to see if you are eligible for assistance. Check your property value When was the last time that you checked in on the value of your property? Now might be a good time to check in with your real estate agent on the current market value for your property and talk with your bank about options. A sales agent will be able to appraise the property, provide comparables and give you an estimate of what the property may sell for in the current market conditions. This can give you a more informed decision of what your property is worth and help with making budget decisions both now and in the future. If you would like a free market appraisal of your home, contact our sales team who are happy to help.
May 29, 2022
Tips to save your energy budget this winter
Rising costs and tightening household budgets are front of mind as we head into the winter months and as the temperatures start to cool off, the increased use of appliances to heat our homes can contribute to the biting energy prices. To avoid the bill shock that can sometimes arrive in time with your next energy invoice, there are a few things that you can do to reduce energy consumption and the costs associated with it. Fix draughty areas Look at areas where draughts may be prevalent in your home, typically under doors and windows. Around 40% of heat from the home escapes from windows and if you are a homeowner you may consider investing in double glazing which can bump up the energy efficiency of your home and have the added benefit of reducing sound. If you are renting, many hardware stores have solutions for draught excluders around windows and doors. Thicker curtains can keep colder air at bay and thicker rugs over hardwood floors can provide a cost-effective insulation approach. Check the hot water Hot water usage can contribute a substantial amount to energy costs. Tips like adjusting the temperature as well as washing with cold water or ensuring that you are only washing full loads are key to reducing those energy outputs. Turn off appliances Appliances in standby mode, not in use can still use energy. Even your phone charger that is switched on at the wall and not in use is still generating power. If you are not using the appliance or going away, ensure that you are switching appliances off at the wall to reduce the energy consumption being used by those appliances. Price check your current plan There is a myriad of energy suppliers in the market now. Check your current electricity and gas bills to make sure that you are getting the best deal and negotiate to find the best solutions for you. The Australian Government has created a very useful website to easily check all available competition within the market and provides estimates on how much each company charges. This can be one of the most useful energy saving tips to follow through with. Swap your light globes Where possible, make the switch with your light globes to those that are the most energy-efficient for the types of light fittings that you have in your home. More energy-efficient bulbs use as much as 75% less electricity and have the added benefit of lasting longer, which means replacing less often. Making a few small changes in our living spaces and habits can assist with reducing those energy bills and adds to one less shock the next time you receive your electricity or gas bill. Have you checked your property for signs of mould lately? Recent weather conditions has caused mould to appear in all sorts of spaces it isn't normally seen.
May 6, 2022
Don’t forget to organise a depreciation schedule
The end of the financial year can be a busy time for property investors, that’s why BMT Tax depreciation are here to remind you of the benefits of arranging a depreciation schedule before 30 June. What is depreciation? Depreciation is the natural wear and tear of a building and the assets within it over time. The Australian Taxation office (ATO) allows owners of income-producing properties to claim depreciation as a tax deduction. There are two types of depreciation. Capital works (Division 43) is claimed on the building’s structure and items that are permanently fixed to the property. And plant and equipment (Division 40) are items which are easily removable from the property or are mechanical in nature. Depreciation is a non-cash deduction, meaning an investor doesn’t need to spend any money to be eligible to make a claim. Because of this, depreciation deductions are frequently overlooked. Failing to claim depreciation can mean missing out on thousands of dollars. During FY 2021/22, BMT found investors an average first year deduction of almost $9,000. Claim the cost of your schedule straight away To maximise deductions and claim all eligible assets, you should organise a tax depreciation schedule as soon after you purchase a property as you can. A BMT depreciation schedule has a one-off cost that lasts the life of the property (forty years) and will ensure all claims are maximised and are fully ATO compliant. The cost of the depreciation schedule is 100 per cent tax deductible, and if you order a depreciation schedule before 30 June you can claim the fee straight back that financial year. This also reduces the risk of forgetting to claim the depreciation schedule’s fee as a deduction in the following financial year. Partial year claims You don’t have to have owned a property for a full financial year before claiming depreciation deductions. You can claim depreciation if you have owned a property for a short time before the end of the financial year, even if that is weeks or days. The depreciation value of the assets will be calculated by how long the property has been owned. For instance, if the property has been owned and rented out for a period of three months, the owner is eligible for 25 percent of the yearly deductions. Receive payments regularly using Pay as You Go (PAYG) By arranging a depreciation schedule sooner, you can access additional cash flow throughout the year by incorporating a PAYG withholding variation. With the help of your accountant, submitting a PAYG withholding variation will estimate your expected tax return for the financial year, allowing your employer to take less tax out of your wages. It’s important to speak with your specialist quantity surveyor to organise a tax depreciation schedule before submitting a PAYG withholding variation as this information will be used to help accurately estimate your tax return. You will still need to visit your accountant at the end of the financial year so they can calculate the actual amount of tax liability. Claim missed deductions It is always advisable to stay on top of your finances by claiming deductions in the same applicable year, as delaying your claim will only add extra confusion and stress to your next tax return. However, if previous depreciation deductions weren’t claimed, the ATO allows you to recover missed payments from past financial years by adjusting your tax return. This is useful for investors who were previously unaware of depreciation deductions. Obtaining your tax depreciation schedule before June 30 is important if you want to maximise your returns and keep your finances on track. To find out how you can organise a depreciation schedule before 30 June contact the tax depreciation experts BMT on 1300 726 728 or Request a Quote. Article supplied by BMT Tax. Bradley Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation. Please contact 1300 728 726 or visit bmtqs.com.au for Australia-wide service. Also: Smoke Alarm Legislation changed Jan 1 2022
May 6, 2022
Smart homes: If these walls could talk
What is a smart-home? Not very long ago these words didn't have much meaning to us. Buildings used to be inanimate structures — but no longer. The advent of conversation-friendly buildings injects life into the membranes of homes (present and future). In terms of possible developments in technology, 5G will enable an era of connectivity like never before from autonomous driving, tactile internet, immersive technologies and next-generation IoT (internet of things) applications. The internet of things describes physical objects that are embedded with sensors, processing ability, software and other technologies that connect and exchange data with other devices and systems over the internet or other communications networks. This is also true of the built environment, which is increasingly helping its users to connect smartly, efficiently and more productively. Smart homes can warm the air temperature before you get home and remind you to get milk. The rise of conversation-friendly buildings As society transforms, powerful trends are reshaping businesses; driving new technologies, shifting our needs and changing human behaviour. Global think-tank FutureScope explores the complex journey from innovation to commercial success on a global scale. Even as far back as 2010, FutureScope reported that architects using sound-mapping software developed at Cardiff University in Wales could see the noisy hot spots where conversations in a room might become unintelligible. By altering room shapes and materials, they will be able to make meeting spaces, open-plan offices, and even cafes more compatible for conversations. The construction of smart buildings, technology-based structures that improve efficiency, helps to achieve objectives that benefit both the user and the environment. Sharing and integrating data between building systems enables the value of the combined smart homes to be greater than the sum of its parts. The reality On a broad scale, these smart-building aims have been realised at the National Grid in the UK (to improve the utilisation of buildings within the estate) and at the University of Technology Sydney (to synchronise air conditioning with a room-booking platform). Next-generation technology and artificial intelligence are also being utilised in our homes via pre-programmable applications and platforms (from self-locking and opening mechanisms to robotics-based domestic aids, including AI wardrobe choice assistance and grocery shopping reminders). When used smartly and wisely, advancing the breadth of technologies such as these frees up invaluable time and ultimately enhances our quality of life. Smart homes and smart buildings are now part of our society's landscape. One of the original smart home technologies - the smoke alarm - has recently changed had a legislation change.
Apr 29, 2022
Apartment living and the benefits of buying into it...
It’s fair to say that the national housing market is steadily peaking this year, hot on the heels of unprecedented price hikes in 2021. How is this affecting apartments? 2022 is signalling a turnaround in the unit rental markets and unit price growth could outperform that of houses, according to the SQM Housing Boom and Bust Report 2022. “With houses being overvalued, apartments are relatively affordable and are expected to be in greater demand from an expected rise in net migration from interstate and overseas with many borders now open,” says Louis Christopher, the managing director of SQM Research. In addition to the resurgence in apartment living that is trending in industry circles this year, there is another benefit of owning or investing in an apartment. That is the appeal of low-maintenance lifestyles. Remember the joy of cleaning gutters? Or mowing the lawn on a hot afternoon at your family home? Unlike a house that requires regular maintenance, apartments are a far cry from your weekend being replaced by a never-ending list of chores. Your apartment list might only be a fraction of what it once was, but it’s still vitally important for your property’s long-term value not to neglect regular checks. Maintenance diary helps to track ongoing needs Create a maintenance diary so most of the work can be completed on one day of the month, freeing up the rest of your time for what you prefer. It’s recommended, for example, that painting should be refreshed every five to eight years. And it’s best for longevity if three coats are applied to each repainting project. The good news is that apartments are generally more compact (i.e. manageable) than a full-sized house and thus are designed to halve the painting time. Carpet cleaning is another, together with window cleaning and ensuring your window furnishings and flyscreens remain in good order. Balconies are one of the biggest sources of leaks, so keeping yours tidy can prevent major issues in the longer term. If the budget is tight, consider defraying costs by pooling resources with neighbours and booking tradies for consecutive jobs. Who knows? You may even gain a discount. Checklist for buying apartments The Apartment Buyers and Owners education kit, produced by the Australian Apartment Advocacy, is a great place to start when considering an apartment for investment or personal lifestyle choice. The kit covers what questions to ask when looking to buy, information about the sales contract, a pre-settlement checklist, details about defects and how your rights are protected. Greg Watson CEO RealWay Australia
Apr 6, 2022
It's Tax Time. How Did COVID Affect your Net Worth?
It's Tax Time! If you're like me, tax time can be one of those times of the year which can go either way. A great refund can get you excited for a new financial year and a tax bill can get you down a little bit. Those two feelings kind of sum up the last year in the Real Estate market. It has been a few years of change for the Queensland Property Market. From the initial slowdown caused by COVID in the market and the fear of property, price crashes as we came out of the first lockdowns, through to a surprising resurgence in the market with fast sales and price growth over the last six months. The lack of properties for sale, low-interest rates, and government grants have been the biggest drivers of price growth. The shake-up to people’s lifestyles caused by the lockdowns and restrictions has also been driving the demand from buyers seeking a more suitable home in this brave new world we now live in. The RealWay team has ridden the property wave over the last financial year. We are seeing properties exceeding the prices paid in the 2014/2015 boom and even units are now moving quickly and for good prices. What's In Store for us Next? Will the prices keep going up? Will they plateau and stay steady? Is the bubble going to burst and property prices crash? The looming federal election for May 2022, the inevitable interest rate increases, and the banks tightening up lending will all surely have some negative impact. On the flip side when the borders reopen and immigration & tourism ramp back up, we would expect to see some positive effects on the economy and property pricing. So, what does it all mean for your property? Good news or bad news... What is your True Net Worth? It’s hard to know where your properties sit unless you watch the market every day. Lucky for you that's exactly what we do – every day we are appraising property, selling homes, and just giving people good honest advice. While we don’t have a crystal ball to predict the future, we do have our finger on the pulse and can accurately price your property in the current market. Did you Buy an Investment? If you have bought an investment property this year, then you should make sure that you claim any depreciation that you can. Your tax adviser will be the best place to get specific advice about your personal situation, but BMT Tax Depreciation Quantity Surveyors can prepare a depreciation schedule for your accountant to use. For more on how to increase rental income and deductions you can Read More Here or you could talk to our property experts. Get in Touch for Free Advice! Why not start your new tax year by being informed about what your home is worth? Give us a call, send us an email or a text and if you want to see how your home has weathered the storm of 2020/21, we are more than happy to help. We work weekends and after hours, it’s never a big issue and it only takes 15 - 20 minutes to get a quick update on price. Greg Watson CEO RealWay Australia
Mar 12, 2022
The Upsides of Downsizing
The thought of exchanging the maintenance of a larger home for a hassle-free future full of travel, friends, and newfound freedom is a common aspirant for downsizers on the move. Given the ideal replacement residence, more than half of Australians aged over 55 are open to downsizing opportunities, according to Australian Housing and Urban Research and similar sources. Once the reality of the children growing up and leaving the family home starts to wear off, there are many compelling reasons favouring the move to a smaller abode. The average Australian homeowner buys three to four properties in their lifetime. Traditionally, they trade up from their first home to a more substantial residence, often upgrading and then downsizing upon retirement. Financial incentives Incentives are in place to maintain this market cycle, with downsizing provisions enabling people over the age of 65 to sell their home and put an extra $300,000 in super. But firstly factor in selling and buying costs (including moving) and talk to your financial advisor about how it could affect age-pension entitlements by boosting your assets outside the home. Positive mindset More than anything, downsizing requires a shift in mindset and the need to separate your wants from your needs. Just like saving for your first home, it’s important to maintain a budget. Decluttering is an essential component of the downsizing transition. Review your belongings on a room-by-room basis and decide what to keep, discard, donate or sell. Embrace the space Given the reduced space at your new address, measure your furniture to ensure it fits the space and try to use one statement piece in each room. It’s also vital to make the most of storage where you find it – and there’s no shortage of potential solutions under beds, in cupboards, and in wardrobes. Also, mount your TV on the wall, make the most of Wi-Fi technology, and utilise multi-purpose furnishings where you can. Once you’ve settled into your new, streamlined space, embracing the downsizing adventure will be a joy as you embark on the next phase of your life. Consult your RealWay local expert to explore downsizing investment options in your region.
Jan 17, 2022
Don't Ignore Smoke Alarm Changes in Qld - Jan 22
For dwellings being sold, leased or an existing lease renewed Existing landlord’s and tenant’s obligations continue from 1 January 2017. Property sellers must continue to lodge a Form 24 stating the requirements of the legislation have been met. See New Smoke Alarm Legislation for more details. From 1 January 2022 All homes or units being sold or leased, or existing leases renewed, will require hardwired photoelectric, interconnected smoke alarms. Non-removable 10-year battery smoke alarms can be installed in place. Smoke alarms in the dwelling must: be photoelectric (AS3786-2014); and not also contain an ionisation sensor; and Be hardwired to the mains power supply, if currently hardwired. Otherwise, smoke alarms can be either hardwired or powered by a non-removable 10 yr battery or a combination of both. be interconnected with every other smoke alarm in the dwelling so all activate together. The legislation requires smoke alarms must be installed in the following locations: on each storey in each bedroom if there is no hallway, between the bedroom and other parts of the storey; and if there are no bedrooms on a storey, at least one smoke alarm must be installed in the most likely path of travel to exit the dwelling. The obligations on property sellers are triggered by the date the initial sale contract is signed. When a contract of sale is signed after 1 January 2022 , the seller is obligated to upgrade the dwelling to the updated interconnected domestic smoke alarm standard prior to the dwelling being transferred. The property seller must declare on a “form 24” to the buyer as part of the transfer process that this obligation has been discharged. How it could cost you more than a $1000? Failure to comply with the new legislation means a property being sold allows the buyer to claim 0.15% of the purchase price prior to settlement. So on a property sale of $900,000, this would mean they are entitled to claim $1350. So make sure you have installed all the necessary smoke alarms well before settlement so this does not become an issue for you. For more information on what is required please check the Queensland Fire Service Fact Sheets - Click here