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How profitable is your home

How profitable is your home?

At some stage, your home may well be too small or big for your needs. Or perhaps the size is right, but you want to live in a neighbourhood with better amenities or in a suburb with excellent schools for the kids. If you’re paying off a home loan for a house located in an area experiencing solid capital growth, you may even make a profit when you sell!

According to the most recent RP Data Pain and Gain report, 91 percent of all home re-sales during the second quarter earned a gross profit.

In fact, nearly one in three (30.5 percent) of home sellers at least doubled their purchase amount when re-selling! Referring to this bracket of sales, RP Data elaborated:

“The gross profit on these re-sales was $14.4 billion and the average gross profit per profit making transaction was $225,830.”

Are you living in a hot spot?

RP Data analysed re-sale statistics in states’ capital cities and regional areas. The area with the lowest proportion of re-sales that made a loss was Sydney (2.7 percent), followed by Perth (4.8 percent) and regional Northern Territory (6.4 percent).

In regional Western Australia, 43.4 percent of homes sold during the June quarter made a profit of 100 percent or greater, followed by Perth (40.3 percent), Melbourne (36.8 percent), Darwin (34.5 percent) and regional Northern Territory (33.9 percent).

So if you’re living in any of these locations, there’s a strong chance you could profit when you sell. But what about on a more local scale?

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Vacancy levels remain steady

Vacancy levels remain steady

The REIQ’s latest Residential Rental Survey, conducted at the end of September, reveals vacancy levels remain relatively steady across most parts of the state. According to the survey, only four of Queensland’s 16 major regions recorded a significant change in vacancy levels.

Ipswich and Logan recorded the largest change, with a drop of up to 1.4 percentage points – sending both of these regions into much tighter market conditions. Vacancy rates in Ipswich and Logan are now the lowest for the Greater Brisbane region.

The Brisbane City local government area (LGA) recorded a vacancy rate of 2.3 per cent, relatively unchanged since the end of June. Brisbane’s middle to outer suburbs (5 to 20km from the CBD) recorded a slight easing in vacancy levels, up 0.3 percentage points to 2 per cent at the end of September.

Based on the agencies surveyed, Brisbane’s inner suburbs recorded a vacancy level of 2.9 per cent, down from 3.4 per cent at the end of June.

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Going with the flow

Going with the flow

Owner-occupiers and investors alike often look for the same things when it comes to choosing a property. Amongst many attributes on your list should be access to good transport corridors and residents of Everton Park have got it pretty sweet on that front.

Proximity to transport corridors will influence changes in supply and demand for your property and that’s what drives property prices.

In human-speak; the closer you are to major roads (but not too close) that get you to places like the city fast, the more your property will generally be worth. And Everton Park ticks all the boxes when it comes to offering a quality and varied transport corridor to its residents.

So what exactly is a transport corridor? It sounds like something originally uttered in a bureaucratic meeting (which it quite possibly was) but is simply land that contains transportation like highways, railroads, or canals (we wish, but we’re not in Europe, so let’s stop right there).

Going with the flow

And let’s face it; most of us have places to go and things to do: like going to work and school, which necessitate the use of roads or public transport options. And we prefer to get there as quickly as possible …

Everton Park sits bang-in the middle of the Western Brisbane Transport Network Strategy, a vision to guide all levels of government in developing an integrated transport network that caters for walking, cycling, rail, bus, roads and freight.

Planning and work is well underway on a number of transport improvement projects that will specifically realise benefits for residents of Everton Park as well as for those planning on visiting Everton Park as a retail destination.

So with Government investment in the transport options servicing Everton Park, we anticipate a positive impact in supply and demand of housing. And we all know it is supply and demand that directly influences property prices.

With the Federal Government’s recent decision to increase petrol prices, it seems fair to say that the cost of using your car will increase. Accessibility to public transport just got that little bit more attractive for many.

Just as divided as the North-siders versus the South-siders is the bus versus train folk. For those train folk out there; don’t discount Everton Park. Increasingly service providers are working to improve the connectivity between bus and train services throughout Brisbane: Everton Park included, and depending on where you live, accessible train stations are a short walk, ride or drive away.

That said, the die-hard car users (and there are many for good reasons) will continue to need quality road options to get across and around this lovely city.

So the verdict is this: with major focus on improving Everton Park’s traffic flow in, around and through the area, we think the impact on property prices can only be good.

Minimise tax on your investment property

Minimise tax on your investment property

It is no secret the property market has been hot over the past year. Sydney and Melbourne are in “boom” territory and the sunshine state is also giving Brisbane investors a warm feeling.

No wonder then that many investors, upgraders and baby boomers are cashing in on their nest eggs and selling for a profit while the good times roll on. After all, it was one of the world’s most famous investors, Warren Buffett, who said: “Buy in gloom, sell in boom.” Selling now could be a beautiful reward for years of hard work and sacrifice.

However, capital gains tax (CGT) can quickly eat into that attractive figure on the contract and make your cash payout much smaller than you originally thought.

The 10 best ways to minimise your tax when it comes to selling property.

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Australians the Richest in the World - Thanks to Our Homes

Australians the Richest in the World – Thanks to Our Homes

Yes folks it’s now official, Australians are the richest people in the world thanks to our homes, according to the latest annual study by Swiss investment bank Credit Suisse.

The median Australian adult was worth more than US$225,000 ($258,000), well ahead of second-place Belgians with a median value of US$173,000, according to the study.

The Italians, French and British followed, all worth around US$110,000.

Credit Suisse says Australians deserve their spot at number one because of the rapid accumulation of wealth, especially household property wealth, over the past 14 years.

Australians the Richest in the World - Thanks to Our Homes

“These are obviously remarkable figures for Australia,” Credit Suisse Private Bank chief investment strategist David McDonald said.

“We are well positioned globally in terms of wealth, as well as the spread of wealth.”

Credit Suisse also classified Australia as a “medium inequality” country, meaning that the richest 10 percent controlled between 50 percent and 60 percent of the country’s net wealth.

Story source: www.ninemsn.com.au

Most investors miss out on tax rebates

Most investors miss out on tax rebates

Even small items like smoke alarms and shower curtains can be claimed on rental properties.

Four out of every five property investors are missing out on potentially thousands of dollars in tax rebates, by forgetting to claim on everyday household items.

Shower curtains, smoke alarms, lawnmowers, roller-door motors, microwaves and garbage bins are among the dozens of minor objects in the average rental home that landlords routinely forget to claim depreciation on.

New research conducted by tax depreciation specialists BMT has revealed that figuring in these assets can increase the cash flow generated by a property by around 15 per cent.

“Property investors tend to focus on the larger-ticket depreciation items available, such as the structure of the house and large plant items in the house,” said BMT managing director Brad Beer.

Most investors miss out on tax rebates

“However it’s often the smaller items which can make a significant difference to an investor’s cash flow.”

Beer, who recommends investors engage a qualified quantity surveyor to create a deprecation schedule for their property, says investors can often name a few depreciable items, such as carpet, hot water systems and light fittings. “But a range of less obvious items, such as garbage bins, exhaust fans or smoke alarms, are often overlooked,” he says.

BMT conducted their survey among their 190 staff Australia-wide, asking them which items their clients found “very surprising” when told they could be depreciated or which they’d missed out in their DIY filing of depreciable items. The company has more than 8000 regular referrers to their business, including property professionals and accountants who recommend their services to property investors.

They found the most common assets never claimed for were items like garden sheds which have, on average, a depreciable value – the purchase price of the item minus its salvage value which can then be claimed for over its useful life – of around $855 and ceiling fans ($265) right down to smaller expenses like shower curtains ($30). Frequently missed were other assets like solar-powered generating systems ($5500), automatic window shutters ($800) and intercom systems ($745).

Story source: www.domain.com.au ; Story by Sue Williams

Open Home Inspection Times for Saturday 9th August

 

For Sale

9.30 to 10.00am   46 Hagman Street Stafford Heights

10.30 to 11.00am   7 Janssen Street McDowall

11.45 to 12.15pm   31 Hillary Drive Warner

Open Home Inspection Times for Saturday 2nd August

Houses For Sale

9.30 to 10.00am                15/38 Beneke Street Chermside

9.30 to 10.00am                800 Nudgee Road Northgate

10.30 to 11.00am              7 Janssen Street McDowall

10.30 to 11.00am              69 Hackman Street McDowall

11.30 to 12.00pm              94 Paramount Circuit McDowall

1.00 to 1.30pm                  31 Hillary Drive Warner

1.00 to 1.30pm                  11 Macnee Street McDowall

Turning a Home Into an Investment

Turning a Home Into an Investment

Turning your home into an investment

As life inevitably changes, a property may need to fulfil a variety of purposes. Evolving circumstances, like a new relationship, a baby or a job transfer can cause buyers to re-evaluate a purchase.

Therefore it may be ideal to buy a primary residence that can be rented out and converted into an investment.

An investment property that has a strong rental yield is always underpinned by the qualities that made it a desirable owner-occupied home in the first place, according to agents.

Swimming pools and verdant gardens, as well as decorative exterior finishes, can marginally boost the rental value, but at the same time add enormously to the cost of upkeep, he said.

Turning a Home Into an Investment

The combination of capital growth and solid rental return is the Holy Grail of acquiring a home that will later be a rental investment

A position near schools, shops, doctor surgeries and public transport, as well as a property that is easy to maintain, is a recipe for a good rental return.

But perhaps the most important factor – and the least known – is that two bedrooms, no more, no less, will attract the right sort of renter. It’s the real estate baby bear equivalent in the Goldilocks story – two bedrooms are just right.

Three bedrooms often attract groups of young singles and one beders are limiting in their appeal.

However, two bedrooms will attract young professionals and couples who require room for a study or are planning to have a baby, and therefore tend to be long-term renters who look after the property.

Story source: www.domain.com.au

Off-the-plan or out-of-your mind

Off-the-plan or out-of-your mind?

Buying property off-the-plan, if done well, can be the beginning of a profitable journey for investors and owner-occupiers alike. And that means you too, first-home owner.

If executed well, buying off-the-plan can reap substantial rewards. And by ‘executed well’ we mean: consider market timing, do your research, make peace with your nerves and get a really good lawyer to help navigate the complex contract you’re about to cradle.

Increasingly, it’s not just investors who buy off-the-plan, with owner occupiers also seeing the up-side of buying tomorrow’s investment at today’s price.

So, let’s look at some of the factors that influence an off-the-plan purchase:

1.       Market timing

There’s no shortage of data showing that people are increasingly moving away from rural areas and concentrating in big cities. With land prices what they are and undeveloped land a scarcity in city areas, the only way is up. Literally. People are increasingly living in medium density housing (shop-talk for apartments). And it’s these types of more dense living options that are often marketed off-the plan, as well as being the residence of choice for inner-city dwellers. Of course, no discussion on market timing would be complete without looking at the how the real estate market is performing too. This will obviously influence your decision greatly.

2.       Do your research

The risks associated with off-the-plan purchases going pear-shaped are there. Google it, you’re sure to find some horror stories. But with thorough research you can buy from a trusted developer with a proven track record. In short, reputable developers tend to make fewer mistakes. And where possible, try to inspect properties that the developer has completed so you can gauge the quality of the workmanship.

Off-the-plan or out-of-your mind

3.       Make peace with your nerves

At the end of the day, the logic of buying an off the plan property is similar to other investments. You need to weigh the pros and cons as they apply to your life and circumstances. You will also need to understand your level of appetite for taking risks and your ability to mitigate them; because buying off the plan means that you are buying something you can neither see nor touch. You are essentially buying a promise.

4.       Get a good lawyer, But …

Get intimate with the contract. Seriously. If you’re going to do this right, and your research is showing up mostly green lights, then the contract is king (or queen). And it’s possibly your back door if things go wrong. Don’t hand this responsibility to your lawyer – a good property lawyer is still vital to this process – but you are the one making the transaction. And you are the one that needs to fully understand all possible areas of risk and what your next move might be in all given circumstances.

Buying off-the-plan is not for the faint-hearted. It’s not for the impulsive type. And nor is it for those who think ‘due diligence’ would make a great name for a character in a romance novel.

There’s a lot of good procedural-type information out there. Information that will help you to understand the process and pros and cons of buying off-the-plan. Get online and educate yourself.

Still, with all that said, buying off-the-plan can be a complex and a sometimes risky path to financial nirvana, but clearly you’d be out of your mind not to consider it an option if you’re looking for property, when so many have gone before you and come out the other end satisfied.