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May 20, 2022
Managing mould removal in your home
Mould removal is a hot topic at the moment. Inclement weather conditions can cause havoc on the buildings that we call home and with large patches of rain and the humidity that can come with it, mould can at times follow affecting walls, ceilings, furnishings, and belongings. As the weather starts to cool and our homes become locked up for the winter months, reduced airflow and moisture from heaters, humidifiers and cooking can also encourage this pesky challenge to flourish. While there are at times potential building issues that can lead to mould growth in properties, generally a few cleaning, care and maintenance tips can assist with keeping it at bay and our homes healthy during the cooler months and beyond. Mould Treatment As soon as you notice mould, it is beneficial to take steps to remove it from the surfaces that it has affected. Without treatment, it is likely to get worse and will continue to return. Clean the area using mould cleaners or solutions of mild detergent or vinegar diluted in water. Tea tree oil mixtures are also popular for mould removal. Once cleaned make sure that surfaces are completely dry, and where possible air-dry affected items that have been cleaned in the sun. For areas that have been badly affected or in soft furnishing and fabrics, professional cleaning may be needed. Where required, professional mould cleaning companies can be employed to rectify the issue and restore the property. In some cases, if mould continues to return after cleaning it may indicate that there is a larger issue, and a building inspection with a qualified tradesperson to further investigate may be necessary to ascertain the cause of the mould and work out a plan for treatment and eradication. Mould Prevention Mould loves a healthy amount of moisture to help it grow and eliminating areas of dampness can assist in reducing the potential for it to take hold and cause damage to your home. Some areas to consider in the prevention of mould: Ensure that the property has good ventilation. Turn on exhaust fans, especially in wet areas where steam is produced such as bathrooms, laundries, and kitchens. Dehumidifiers can help to reduce humidity and where possible control the number of indoor plants and use of humidifiers. On warmer or drier days, open windows, and doors to allow for cross-flow ventilation and ensure that weep holes are clear and free from dust or debris. Repair any leaks, clean out gutters and check areas that potentially have rising damp are rectified with adequate sub-floor ventilation. Read more: Smoke Alarm legislation changed on 1 January 2022.
May 15, 2022
The pandemic property market
The property market has not been exempt from global changes that the COVID pandemic has caused. The two years since the pandemic have been tumultuous, but also lucrative for investors and the industry as a whole. Key points from a recent CoreLogic report provides a snapshot of the effects of the pandemic within the marketplace. Whether it was the economic and employment-based effects of city and state lockdowns, the introduction of government home-buying and building incentives and the increasing popularity of regional living and low-density housing, the era of COVID has left its legacy on the composition of buyers and dynamics of the housing market. Home values eclipse previous records, rising by 25 per cent Despite an initial dip for the property market during the pandemic, housing values rose 24.6 per cent between the end of March 2020 and February 2022. Cumulative change evidenced in the CoreLogic Home Value Index since the onset of COVID-19 shows a relatively small decline at the onset of COVID-19. For example, sales and listings volumes are far more affected than prices. Home values declined -2.1 per cent between April 2020 and September 2020, before soaring amid low-interest rates, high household savings, government grants and a sharp reduction in the supply of housing. By February 2022, CoreLogic estimated the total value of the residential real estate to be $9.8 trillion, up from $7.2 trillion at the onset of the pandemic. This is a significant change for the property market. Rents rose 11.8 per cent to record highs while gross yields fell to record lows Annual rent value growth throughout 2021 was at its highest level since 2008. Median advertised rents in Australia have increased from $30 per week to $470 per week. In New Zealand, that figure is closer to $530 for a four-bedroom home. For investors who have recently purchased long-term rental accommodation, rents may have increased due to higher purchasing prices. Through the pandemic, there has been a clear shift in rental preferences toward lower-density housing options, where the upwards pressure on rents has been more substantial. This trend has evolved over the past year, with rental affordability gradually deflecting more demand towards higher-density rental options, where the cost of renting is more affordable. Housing debt levels scale new heights However, gross rental yields have declined. This is because gross rental yields are a portion of the purchase price of a property — and purchase prices of properties have grown 24.6 per cent since March 2020, outpacing the 11.8 per cent rise in rents. As housing growth has started to slow, record-low gross rent yields appear to have begun stabilising. Although total outstanding credit reached over $2 trillion in January, data shows monthly new finance borrowed for the purchase of property continued to hit fresh record highs through January 2022, at $33.7 billion. High levels of housing debt, particularly where it has grown faster than incomes, create vulnerability in the economy. However, it is important to frame debt levels in the context of high asset values and relatively low-interest costs. Official data shows housing interest payments to income have fallen to their lowest levels since 1999 — and household debt has trended lower as a portion of housing values. CoreLogic prides itself on the most accurate real estate data in Australia. Smoke alarm legislation changed on January 1 2022
May 12, 2022
Smarter communities: why do we build them?
Smarter communities can be large or small and are ones where a successful hybrid of residential, commercial and community-focused features and amenities coexist. These smarter communities are essentially managed by industry experts in the fields of technology, sustainability practices, infrastructural development and individual/family wellbeing. Together, these elements enhance community cohesion. The creation of this cohesion ensures longevity and sustainability for its developments and lifestyle benefits for its residents. To build a smarter community is to adopt a big-picture outlook; melding affordability with investor/owner/renter appeal, state-of-the-art technology with user-friendly applications and design and interior trends that inspire a biophilic quality. As such, developers in the sector of smarter communities quite simply create happier residents. An industry working with a united vision, delivers intelligent solutions to create a better lifestyle for people living and investing in those communities. Strata and community management firms are driven by customer-centricity and innovation, developing communities and competing in a billion dollar industry. Somewhere near you, this type of community has been built Developed communities are diverse and extensive, covering small-to-medium residential and commercial blocks including townhouses and villas, shop lots and hotels, to large mixed-use high rises. Like smart homes in the era-of-connectivity, smart communities are a natural progression. Television advertisements for newly developed suburbs may have surprised viewers at first. Communities used to require time to develop organically and even though they still do this, applied thinking has changed the way that they can emerge. Development and marketing opportunities Opportunities abound for developers and real estate agents to embrace the challenges of building and marketing newly formed communities. Investing in a smarter community is at the forefront of long-term change for all industry proponents. If created to exact standards and marketed within an affordable price range, the sustainability focus and lifestyle benefits of properties within smarter communities invariably sell themselves.
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.