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May 22, 2023
Understanding the value of your property
As real estate agents, we understand that valuing your property can be a daunting task. However, it’s crucial to have an accurate understanding of your property’s worth to make informed decisions about selling or refinancing your home. Let’s explore how a residential property is valued and the factors that can affect its valuation price. First and foremost, location plays a critical role in determining a property’s value. Homes in highly sought-after areas with access to transportation, schools, and shopping centres typically have higher values than those in less desirable neighbourhoods. The size of your property and land is another significant factor. Larger properties generally have higher values than smaller ones. The condition of your property is also essential, as well-maintained homes are more valuable than those that require repairs or upgrades. Additionally, amenities like a pool, garden, or garage can significantly impact your home’s value. And finally, market conditions must be considered. During a seller’s market, when demand outstrips supply, property values typically rise. Conversely, during a buyer’s market, when there are more homes for sale than buyers, property values may fall. As a homeowner, there are steps you can take to maximise your property’s value. Maintaining your property is key, and regular upkeep such as fixing leaks, repainting, and replacing outdated appliances can maintain or increase its value. Making upgrades and improvements like adding solar panels, installing air conditioning, or adding a new bathroom, can also help boost your property’s value. Finally, enhancing your home’s curb appeal, by improving landscaping, painting the exterior, or upgrading the front door, can also add significant value. It’s also important to understand the difference between a real estate valuation and a bank evaluation. A real estate valuation (often called an appraisal) is typically conducted to determine the market value of your property. This type of valuation is often requested by property owners who are considering selling their homes or by buyers who want to ensure they’re paying a fair price. A bank evaluation, on the other hand, is conducted by the bank to determine the market value of the property for loan purposes. Banks need to evaluate the risks involved in lending money, so their evaluation may be lower than the actual market value. Understanding the factors that influence your property’s valuation, maintaining and improving your home, and being aware of the differences between real estate and bank evaluations can help you make informed decisions when it comes to selling, refinancing, or applying for a loan. Our team are experts in properties and valuations and can offer you a no obligation-free valuation on your home. We can also help you with suggestions that will increase the value of your property if you are thinking about selling. Call us to organise your free home appraisal or for a discussion with any of your questions.
May 16, 2023
Why you should arrange a strata inspection report
Carrying out a due diligence on an apartment before you purchase, especially if you are choosing to use it for investment purposes is a wise expense to ensure that you are aware of any building concerns prior to making the final acquisition. A strata inspection report is useful. A strata inspection report will detail the history and the current state of the building including any information relating to both the residential and commercial aspects of the scheme. This report will outline the effectiveness of the management of the building. What exactly should a strata report contain? The financial status of the body corporate and building As an apartment owner, there are requirements to contribute toward strata levies which are allocated to maintain the building and common areas of the property. These levies will usually be allocated to items such as cleaning and gardening, any maintenance items and minor repairs that may need to be done. Should there be larger repairs and expenses, you may be asked to pay a special levy to contribute toward capital works if there are insufficient funds in savings to cover the costs. A healthy bank balance for a Body Corporate will mean that there is wiggle room should any capital works need to be carried out. It is also important to check that there is a Capital Works Fund included in the balance sheet and that this has a plan and funds for future work. Future building work and defects Check the report and ask questions around any defect work both historically and planned future events so that you are aware of the implications on future costs relating to capital work and on your future living conditions or those of tenants renting your investment. Should the tenant lose facilities during major renovations or defect work, this may also impact your income as you may be required to compensate the tenant or release them from lease obligations depending on the work to be done. Check off the by-laws A strata complex will have by-laws, which are a set of rules that are provided to all owners and tenants in relation to expectations of the building and common areas. The rules may include items like air conditioner use, washing on balconies, pets, noise, use of common areas, parking, visitors, smoking, renovations and short-term letting. Before you purchase, check these laws as they could impact your living expectations should one or more of the laws require a change to your lifestyle or needs. Outstanding disputes Disputes may have occurred between owner-occupiers or tenants and some may be ongoing. Minutes from committee meetings will outline any disputes and resolutions as well as upcoming tribunal matters should they progress. A good strata manager should be able to manage most disputes with the Body Corporate, any Property Managers and Tenants and be proactive around repairs and communication to resolve disputes before they escalate. When you are purchasing, ask our sales team for feedback on strata and they can provide you with further information on the key questions to ask or if you prefer, ask the questions for you. What to expect when buying an established apartment >>
Apr 27, 2023
Is it the right time to sell my investment property?
There is no shortage of information and opinion about any real estate market and an abundance of advice on what the best options are in the market at the time. Investors frequently ask, when is it the right time to sell? If you are an investment property owner, there will be information relating to changes in legislation, potential tax benefits and dips and rises in the property market, all influenced by various local and world factors. What is the most important aspect to consider when choosing to sell your investment is your individual circumstances and the strategy that fits your goals, rather than moving with the crowd. Before making any decisions, analyse your investment plan and talk to your financial advisor about your current situation. They are likely to work through the numbers with you and advise if the conditions are right for you. One of the reasons that you choose to sell could be that the property expenses and cash flow have consistently been in negative territory and with rising interest rates and costs associated with running an investment, you may find that making ends meet has become more challenging. Your advisor can work through your finances with you and should you decide to keep the property, may recommend solutions like refinancing your current loans to source a better deal. Our property consultants can also assist, by providing a market appraisal of the property so that you can gauge where the current value lies prior to refinancing. The market is cyclical, and you may decide that with increases in prices achieved in your local area, that it is a great time to sell and invest in other strategies. Keep in mind that if there are considerable gains, you will be liable for capital gains tax after the sale. Not all markets are the same and there are often micro-markets. While some are increasing, others could be decreasing or prices stabilising. The same occurs for rental properties and increases in rents achieved will depend on demand. The best way to find out what is happening in your area is to speak with one of our property consultants who can provide you with an accurate update on recent sales and the trends that they are seeing. Being informed will give you an extra edge when thinking about whether it is the right time to sell your investment property.
Apr 3, 2023
Attracting good tenants for your investment property
Owning an investment property is a great way to build equity for your future whether that be planning for the short term or into retirement. One of the challenges to ensuring that your investment runs smoothly is finding a great tenant. A tenant that maintains a clean rental history and looks after the property can reduce any stress around your rental and will ensure that the tenancy ticks along smoothly. Retaining a good tenant ensures that you can minimise a loss in rental returns as the longer a property sits vacant, the more you lose in potential revenue. Meticulous tenancy screening It is part of the Property Managers role to ensure that they carry out thorough reference checking for all applicants on your property and will then communicate their suitability with you. They will also conduct regular routine inspections and provide feedback to you and the tenants where there are concerns that need to be addressed. A key aspect to finding good tenants is maintaining a property that is appealing and priced right to attract the best possible applicants who will take care of the property and pay rent on time. Perfect property presentation Property presentation is important and before renting your property, our property management team can walk through the home with you and provide recommendations on potential improvements that appeal to great tenants. You may need to consider a refresh of interiors like paint, carpet, and blinds or an update to appliances like dishwashers, air conditioners, dryers, and kitchen appliances. Many of these items are considered to have a life span of 10 years and updating these can give the property a new life and attract the best tenants. Depending on the age of the kitchens and bathrooms, it may be recommended to update these rooms. These more extensive works can take time and are a considerable investment. Knowing what is needed can help you plan for future renovations. Professional cleaning and maintenance Before showing the property to prospective tenants, ensure that it is clean and that the lawns and gardens are well maintained. This helps to create a benchmark at the start of the tenancy and ensures that the tenant is moving into a well-maintained home. If you prefer that the lawns and gardens are maintained to a particular standard, it is recommended that this is included with the tenancy as not everyone has a green thumb. As with any investment you need to consider expenses for day-to-day bills as well as repairs and maintenance costs. Contact our property management team who can provide recommendations and help you to find the best tenants for your investment.
Mar 15, 2023
Are there risks with self-managing my property?
Owning a rental property is a great way to build your investment portfolio and diversify your assets as you plan your life into retirement. When you do purchase you will find the decision to either have the property managed or self-manage. Employing a property manager to take care of the intricacies of property rentals can remove potential stress from the day-to-day care of the property and tenant management while maximising your investment. Alternatively, you may have the time and the resources to self-manage the property. If this is a strategy that you choose, be aware of the risks and benefits around self-management. One of the financial benefits of self-management is there are no management fees charged from an agency. These fees can range from management fees to letting fees, leasing, representation at tribunal, advertising and marketing and other ancillary fees. You will also have a more hands-on approach with the management of the property as you will be dealing with the tenants, rental payments, and day-to-day maintenance. You will meet with and approve tenants and are required to build a relationship with them throughout the tenancy. While there are some benefits, it is worth weighing up the financial costs with the implications of self-managing, especially should things go wrong. Hiring a professional property manager can reduce stress and risk as they have the most up-to-date knowledge and training of the relevant acts and legislation surrounding rental properties. They are able to navigate any challenges that may rise with tenants including representation at tribunal and insurance claims if required. A property manager will manage the collection of rental funds and ensure that the tenants are paying their rent on time per the agreed schedule, and should they fall into arrears, will take the relevant action that is required. The time it takes to show tenants through properties, process applications, and prepare the required lease documents and condition reports add up and a property manager and their team can give you back these precious hours by including it as part of their service and fees package. Consider how much your time is worth and analyse the costs and risks that are associated with self-managing when weighing up your time and deciding whether to have the property managed by an agent. Your time is precious, and a property manager can help you get this time back, efficiently managing the process. They will also have a list of licensed and insured preferred suppliers that will attend your property and ensure that work is carried out to a satisfactory standard at a reasonable cost and help to mitigate any losses to you. If you would like to compare self-management to having your investment property professionally managed, contact our property management team to discuss how we can help.
Feb 27, 2023
Lawns and gardens maintenance, tenant or owner?
Owning a property that has lawns and gardens is a nice addition to your investment property. In terms of who is responsible for maintaining these areas, there are a few rules of thumb to go by. Tenant responsibility A tenant is responsible for areas such as regular mowing and edging. The frequency of this will depend on the season and how fast the lawns grow. In the warmer months, it could be expected that the tenant would need to mow fortnightly, while it may be left monthly in winter. They will also be responsible for the weeding of garden beds and lawns and are encouraged to fertilise the lawn regularly to maintain its health throughout the seasons during the tenancy. In drier months, you may offer to provide discounts on water usage to ensure that the lawns and gardens are kept in good order in line with potential water restrictions that may apply. Where possible, rainwater tanks and recycled water options are a great addition to the property and can get through these drier months. Tenants could also be expected to clear small branches, leaves and smaller objects that have fallen from trees and could fit into the green waste bin or go out with the council collections. Landlord responsibility Owners are responsible for carrying out larger lawns and gardens maintenance tasks at the property and the extent of this will depend on the range of the landscaping. Pruning of shrubs and trees as well as cutting back and clearing larger branches away from the house and fence line could be expected and planned for as part of a larger maintenance schedule. Staying on top of these can reduce the potential for property damage during storms and adverse weather conditions. Installing an irrigation system can support with watering of lawns and gardens, however any repairs to this need to be factored into the regular maintenance schedule as part of the owner’s costs. If there is a particular style in which you would like the landscaping maintained, it is worthwhile investing in gardeners to ensure that the lawns and gardens are to standard. Not everyone has a green thumb and if you would prefer to outsource the task, there are a range of trades available to take care of this responsibility and ensure that the lawns and gardens are cared for. Our property management team can assist in arranging the relevant trades.
Feb 15, 2023
Rentvesting, is it the right strategy for you?
In more recent times the rise of rentvesting has provided options for those who would like to get onto the property ladder while still living in their area of choice. Purchasing in an area that shows signs of long-term growth and a good rental yield can help in starting a property portfolio while renting in a different suburb that may be closer to work, schools, or amenities. Why rentvest? Rentvesting means that while you cannot afford the property prices where you want to live, you can still get on the property ladder. You may be at a stage in your life cycle where you need to be close to schools, have relocated for work or there are lifestyle choices that are appealing to you. Just because you are renting in one area, doesn’t mean that you can’t begin your own wealth creation and investment options while building a strategy towards your retirement. Researching areas of higher yield can provide insight into potential growth areas and options to begin your journey. Your bank can talk with you about your borrowing power and will consider potential rental returns during your assessment. While you are renting, you will also reduce costs to maintain the property you rent as this becomes the landlord’s responsibility. Potential negatives of a rentvestment strategy Building your property portfolio can provide dividends for the future however there are some downsides to this approach. You will lose any exemptions that exist for primary dwellings and capital gains tax and any profit made when you sell the property at a later date will be subject to this tax. Renting where you want to live will also mean that you have less control over any longer-term outcomes as your tenancy will depend on the needs of your current landlord. They may need to carry out work on the property or decide to sell depending on their circumstances. If you do not research your areas thoroughly, you may find that you are paying additional funds toward a mortgage over your investment as well as any rent increases adding more pressure to your cost of living. This can leave you suitably out of pocket and speaking with a financial advisor about the best approach for you and your situation can be worthwhile. If you are in the market to purchase your first or subsequent investments or are a rentvestor looking for a new home, contact our property management and sales team to talk about your options.
Feb 1, 2023
Landlord insurance needs a health-check
One of the factors of owning an investment property is ensuring that you have a good landlord insurance policy in place, especially at the times of year when there is potential for an increase in incidents. While many companies will offer landlord insurance, not all are created equal, and it is wise to look around and select a policy that is right for you and your circumstances. Once you have that policy in place, carrying out a health check annually to check that it still meets your needs is worthwhile to guarantee you are covered. Aside from rent arrears cover, accidents and incidents can occur to the tenants, property or visitors. Taking out the right policy is a sound investment in protecting you and your asset. Rent arrears cover Check the conditions of your policy around the requirements for rent arrears cover. Some policies require that a fixed-term lease agreement must be in place, and it is imperative that this is communicated with your property manager. Some policies will also require the equivalent of the weeks or several weeks’ rent as an excess and knowing this prior to purchasing the policy can save you in the long run. Others may require a flat rate on claims. Locks and devices requirements As a landlord, there is a duty of care to ensure that all door and window locks are functional and secure. If these are not the case and the tenant has a break-in, any policy they hold may be void and as a landlord, you may be required to mitigate the loss. In addition to a tenant’s loss, there could also be damage to the property, in which case your insurer may not cover the repairs if the property did not have adequate security in place. Accidents and injuries cover The tenants are responsible for any damage that they may cause to the property, as are their guests however accidents do happen, and a good policy will protect the ‘what if’s’ of potential accidental damage that may occur. Sound insurance policies will also contain a public liability portion to cover the tenant and any of their guests for any injuries that may be sustained due to an accident at the property, especially if as a landlord you have not maintained the property to a sound and secure standard. Fire safety requirements as part of your insurance policy You are required to ensure that all fire safety devices like smoke alarms are working on the property prior to and during a tenancy. There are third-party companies who can also assist with annual checks on your behalf. Failing to have the correct fire safety installed and in working order could mean that your investment is not protected should a fire occur, and you may find yourself out-of-pocket significant costs. If you would like to know more about health checking your current investment insurance, speak with our property management team to work out what is right for you.