In this edition: How long will it take for your property to rent? Median Rents in Mining Areas Take a Dive Warning: The 5 Top Body Corporate Myths You Need to Know! Soaring Heights to Rock Bottom – Is Your Balcony Safe? Can’t Raise the Cash? The Good (and Bad) of Investing in Property with a Friend

April 2014

Get in Quick – Brisbane Tops the List for Rising House Prices in 2014! Capital City Rents Decline Cover Your Back – Why Entry Condition Reports are Essential! A Selection of Properties Recently Leased Quote Calendar of Events

It’s been a super busy first quar-

ter with lots of new business

coming our way. New rental list-

ings being chalked up on a daily

basis are a tribute to the great job

the team has been doing. Many

of our listings have come from

repeat business and word of

mouth referrals, along with lots of

leads from our sales team (who

know how fabulous they are!)

with sales booming also.

We have the wonderful Chris

McCall starting today – with loads

of experience and an absolute

commitment to exceeding land-

lord expectations, Chris will be

looking after the new business

side of our property management

division, freeing up Helen and

Lisa to focus exclusively on the

management and letting of prop-

erties.

Helen is looking forward to a

week off shortly (well-deserved

after the crazy pace of this year

to date), and to ensure all runs

smoothly we’ve employed a temp

to help out while she is away.

We hope you’ll be enjoying a

break over Easter. Our office will

be closed for the long weekend

and then we’ll be back in full

force ( yep, even the promise of

time off and unbridled chocolate

consumption can’t rival our addic-

tion to work ) on Tuesday the

22nd.

As ever, thanks so much for your

support and the wonderful testi-

monials you send in. It makes the

team’s day whenever they re-

ceive recognition from you for the

wonderful work they do!

Wishing you health, wealth and

happiness,

Christina

Team updates and Easter holiday schedule

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

How long will it take for your property to rent?

That of course depends on the time of the year so here are the latest statistics for February.

BRISBANE STATISTICS The Market

Source: rentfind.com.au

Brisbane, QLD February 2014 Annual Change

Median Weekly Rent - House $420 5.0% increase

Median Weekly Rent - Unit/Apartment

$390 2.6% increase

Days on Market (Avg) 26.6 0.3 decrease

Days Vacant (Avg) 14.8 0.3 decrease

Median Rents in Mining

Areas Take a Dive

Median weekly rents in Emer-

ald dropped by $170 over the

past year according to data

gleaned from bonds lodged

with the RTA in the December

quarter 2013.

In Emerald, median weekly

rent fell from $480 to $310 for

a 3 bedroom house, while rent

for a 2 bedroom unit de-

creased from $400 to $265

year on year.

There were also decreases in

Gladstone, where the median

rent for a 3 bedroom house

dropped from $500 (Dec qtr

2012) to $400 (Dec qtr 2013),

and for a 2 bedroom unit fell

from $410 to $330.

Mackay saw year on year

drops from $480 to $395 for a

3 bedroom house and from

$370 to $300 for a 2 bedroom

unit.

In Mount Isa, the median

weekly rent for a 3 bedroom

house dropped from $570 in

the December quarter 2012 to

$500 in the December quarter

2013.

Two bedroom unit median

weekly rent in Mount Isa fell

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

from $400 to $350 year on

year.

Meanwhile, median weekly

rents increased in the Surat

Basin area.

In Chinchilla, median rent for a

3 bedroom house increased

from $375 to $430 (2 bedroom

units rose from $350 to $400)

and in Dalby increased from

$300 to $320 ($210 to $235

for 2 bedroom units).

However, median weekly rent

for a 3 bedroom house in

Roma decreased from $450 to

$400 year on year.

At the Gold Coast, median

weekly rent rose $20 to $420

for a 3 bedroom house and

was up from $340 to $355 for

a 2 bedroom flat.

Median rents also rose in

Toowoomba, with an increase

from $290 to $300 for a 3 bed-

room house and from $225 to

$240 for a 2 bedroom unit.

Warning: The 5 Top

Body Corporate Myths

You Need to Know!

They’re Making Money Off Me!

The most commonly held myth

about body corporates is that the

body corporate is making money

off the lot owners.

Body corporates are not carrying

on a business. They’re not trad-

ing and they’re not offering ser-

vices. They are in fact expressly

restricted from carrying on any

sort of business activity.

They do lodge tax returns and in

most cases taxable income is

interest on monies held. That is

all. Collecting levies is not mak-

ing money; it’s recouping costs.

Yearly levies are calculated for

administrative funds by estimated

how much it’s going to cost to run

the body corporate in that year,

and then collecting that much.

Nothing else.

Sinking fund levies are calculated

based on a Sinking Fund Fore-

cast estimating costs over the

next 10 to 15 years.

Body corporates don’t collect

more than they need. The com-

mittee that’s putting together

these budgets – are lot owners

and have as much interest in

keeping the levies low as any

other owner.

Fraud with body corporate funds

is not unheard of but it is very

rare. Many body corporates are

just expensive to run, mainly be-

cause they have expensive facili-

ties. In the body corporate world

you pay for what you get.

The Body Corporate Manager

Is In Charge

Part of the problem with the idea

the body corporate is making

In Brisbane, median weekly

rent rose slightly from $400 to

$410 for a 3 bedroom house

and from $390 to $395 for a 2

bedroom unit.

View complete median rent

data for the December quarter

2013 or search for media rents

by postcode.

Source : www.rta.qld.gov.au

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

money off the lot owners is con-

fusing the body corporate man-

ager (BCM) with the body corpo-

rate committee.

In most cases BCM’s are firms

that are making money off lot

owners. They do that by contract-

ing to body corporates to under-

take specific tasks of the commit-

tee. By hiring a BCM the commit-

tee, made up of volunteers, can

minimise the necessary hours to

be invested but still have the

body corporate managed well.

Effectively BCM’s are a cross be-

tween a secretary and an Ac-

countant rolled up in a great big

juicy roll of industry know-how.

They advise. They suggest even.

They do not make decisions.

Well, they will make decisions if

owners specifically appoint them

to do so, but, even then, they just

follow legislation. No BCM ever

really wants to find themselves in

charge.

Body Corporates Have Lots Of

Money

This one seems to be a favourite

of contractors and tradespeople.

Again, body corporates do not

trol what you can and can’t do

within the lot.

There will most likely be restric-

tions on what you can do. One of

the great benefits of body corpo-

rates is curb-side appeal, that

sameness that looks smart and

sophisticated. Any external

changes to a lot could interrupt

that look so they’re usually con-

trolled.

Other restrictions, things like

bans on hard flooring and reno-

vation policies will relate to mini-

mising noise and impact on other

lot owners.

Internal works may be restricted

due to load bearing walls and

windows and so on.

For the most part any changes,

inside or outside the lot, will need

to be approved by the committee.

So definitely read the by-laws.

You Can’t Tell Me What To Do

Again, I’ve got some bad news.

That doesn’t mean the body cor-

porate can hassle you about how

much salt you’re eating or wear-

trade or make money. Their

funds come directly from lot own-

ers in the form of levies.

It may seem like they have a lot

of money but what they really

have is a lot of cash. Cash

they’ve raised by levying the lot

owners. And those levies are

raised because the body corpo-

rate intends to spend that money.

All of it: even the sinking fund.

Some people may view a body

corporate as a company or a

business that can just trade out

of the problem but it’s really,

really not. It’s just a group of peo-

ple who are trying to maintain or

improve their investment.

Any increase in costs above

quoted works is for costs that

have not been budgeted for. On

a good day the budget can be

juggled to cover the cost. On a

bad day, lot owners will need to

dip into their pockets again.

I Can Do What I Like Within My

Lot

Actually, not really. One of the

things I tell everyone buying into

a body corporate situation is to

read the by-laws. They will con-

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

ing a short skirt, but they can tell

you how to act if you’re on com-

mon property.

Or even if you’re within your lot, if

what you’re doing within your lot

is breaching one of the by-laws.

The by-laws exist for a reason.

They’re rules put in place to let a

group of relative strangers all live

together without deteriorating into

a mindless free-for-all that leaves

everyone scarred for life.

The same with body corporate

legislation. Body corporates work

best when they’re populated with

people who follow rules. They

also attract people who have an

obsessive need to follow rules

and then point out to others that

they’re not following said rules.

Strange as it may sound this is

actually a good thing.

Body corporates are here to stay

and it benefits everyone who

owns and lives in one to disre-

gard myths and see them for the

investment vehicle that they are.

Written By: Lisa Rutland

Source : www.reiq.com.au

(15 January 2013)

Soaring Heights to Rock

Bottom – Is Your

Balcony Safe?

Summer may have just passed,

but many of us are lucky enough

to be able to enjoy the outside all

year round: at the beach, in the

garden or on the balcony.

If your favourite outdoor room is

a balcony, take time now to

check that it is in good repair.

Wooden balconies and decks are

often subject to water damage

and rot, and should they col-

lapse, can result in serious injury.

Furthermore, many of the timber

decks built in the sixties and sev-

enties were constructed with in-

appropriate timber that is now

rotting and becoming unsafe, es-

pecially when extra weight is

placed on them.

Structures that pose most risk

are those that rely on timber

beams for support, although any

balcony or raised deck, whether it

is timber, concrete or features

steel supports, should be

checked out regularly for safety.

Some warning signs include –

Rusting bolts and brackets

Holes or cuts in the balcony

floor surface or balustrades

where water might get in

The balcony moves when

walked on

Damp spots or stains

where the balcony joins the

main part of the building

Rust stains and cracks,

particularly near joints and

corners

Shaky handrails and balus-

trades

Balustrades where damp

spots or stains can be seen

on the cladding

If warning signs are evident, or if

you have any doubt, you should

seek advice from a qualified ex-

pert as soon as possible.

Here are some tips for safer bal-

conies:

Hardwood is the strongest

choice for decking timber.

Often hardwood is hard to

treat but its natural durabil-

ity means that it will stand

the test of time. It is recom-

mended that hardwood be

seasoned (usually kiln-

dried).

Compressed sheeting is a

synthetic option that is du-

rable, cost-effective and

waterproof. The sheeting

can be covered with any

finishing material.

Ventilation for supporting

bearers and joints is (or at

least should be) provided

by minimum ground clear-

ance. Where the walls be-

low the deck are enclosed,

sub-floor ventilators must

be also be provided.

Additionally, the ground clear-

ance must be increased where

the deck/floor is to be con-

structed in a termite prone area.

These requirements are regu-

lated in the Building Code of Aus-

tralia.

Source: Echo News (6 March 2014)

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

market can seem almost impossi-

ble for the would-be property in-

vestor. But does that mean you

should share the cost with a

friend?

Friendship can be a funny thing.

When it works it can be both ful-

filling and fun, but when it falls

apart it can turn your life upside

down.

Now imagine your investment

portfolio is financially intertwined

with that friendship. What then?

Co-ownership, that is buying an

investment property and sharing

the cost with a friend, can be of

prolific benefit, especially given

the escalating cost of property

and rising cost of living.

Pooling your resources with an-

other also assists with any addi-

tional and ongoing costs associ-

ated with investment properties

like rates, repairs and any nega-

tively geared mortgage gaps.

So if you are limited by a single

income and want to get into the

market, have trouble getting fi-

nance, or think it would be easier

to make payments with an invest-

ment partner, then sharing the

burden can be a good way to get

started - as long as you know the

relationship isn't going to break

down.

Source: Your Investment Property

Get in Quick – Brisbane

Tops the List for Rising

House Prices in 2014!

Brisbane looks set to top the list

for rising house prices across

Australia in 2014, according to

the National Australia Bank

(NAB) Quarterly Residential

Property Survey.

The survey of Australian property

professionals highlights key pre-

dictions for the housing industry

in 2014–15, including rising

prices for lower-and top-end

properties, owner-occupiers

dominating the housing market,

and strong demand for inner-city

housing and low-rise apartments.

In keeping with Brisbane’s lead,

the top suburbs that are forecast

to outperform in the housing mar-

ket this year include Bulimba:,

New Farm and West End, along

with the regions of Caboolture,

the Gold Coast and Toowoomba.

The average capital-city house

price is expected to rise 6 per

cent in the year to end of 2014.

According to NAB, this is the re-

sult of low interest rates, im-

Can’t Raise the Cash?

The Good (and Bad) of

Investing in Property

with a Friend

Unless you can access existing

equity, or happen to be a super-

star at saving, breaking into the

proved affordability, population

growth, longstanding supply is-

sues and foreign buying activity.

House prices in Perth are set to

rise modestly in 2014 by 2.7 per

cent and the top suburbs that are

likely to experience growth in-

clude: Maylands, South Lake and

Subiaco, along with the nearby

city of Mandurah. The survey re-

veals middle/outer-ring houses

will remain the most sought after

and demand is expected to in-

crease further.

Melbourne is expected to be

among the best performers in the

country with a 3.2 per cent rise in

house prices. Inner-city housing

and low-rise apartments in sub-

urbs such as Cheltenham, Frank-

ston, Glen Iris, Hastings, Rich-

mond and Toorak will drive de-

mand and boost the housing

market.

Meanwhile, in Sydney, house

price gains will rise 3 per cent

and the best-performing suburbs

will be: Darlinghurst, Dulwich Hill,

Marrickville and Potts Point,

along with Blacktown, Liverpool

and Penrith in Greater Western

Sydney.

S o u r c e : h t t p : / /

www.propertyoz.com.au/

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

Capital City Rents

Decline

Despite a decline in the national

vacancy rate, asking rents for

houses across Australia’s capital

cities have fallen.

New figures from SQM Research

reveal the capital city average

asking rent declined by 0.7 per

cent for houses, but rose by 1.2

per cent for units in the 12

months to February 2014.

Canberra and Perth recorded the

steepest declines, with the na-

tional capital experiencing a 7.6

per cent decrease in asking rents

for houses and a 5.5 per cent de-

cline for units. Perth’s asking rent

for houses dropped by 10.7 per

cent and units dropped by 7.4 per

cent.

SQM Research’s managing di-

rector Louis Christopher said

Canberra’s decline can be ex-

plained simply: government job

cuts in the city have seen an exo-

dus of residents from the area.

Perth’s negative result could be

attributed to the downturn in the

mining boom and the corre-

sponding decrease in demand for

rental dwellings.

Sydney was the standout per-

former with a 2.3 per cent in-

crease in asking rents for houses

and a 3.6 per cent increase in

asking rents for units on a yearly

basis.

Mr Christopher said the results

were a mixed bag for investors.

“Overall rental conditions contin-

ued to modestly favour landlords

over the course of the month. It

has been some time since we

recorded a definitive decline in

vacancies in what could be a sign

that excess stock seen in Mel-

bourne is starting to be occupied.

Meanwhile the sharp falls in rents

for Perth are in line with the rising

vacancies being recorded there

and are a manifestation of a

rather rapid decline in demand

for accommodation,” he said.

The national vacancy rate

dropped from 2.2 per cent in

January to 2.1 per cent in Febru-

ary.

Source: smar tproper ty invest-

ment.com.au

Cover Your Back – Why

Entry Condition Reports

are Essential!

Preparing an Entry Condi-

tion Report can seem like

just another task on the long

list of lessor/agent require-

ments at the start of every

tenancy.

But completing the report is a

good opportunity to carefully

check the condition of the

property – including stairs,

decks and verandahs – to

identify any repair and mainte-

nance issues before they be-

come a problem.

Completing the Entry Condi-

tion Report is a good opportu-

nity to check the condition of

the property, including stairs,

decks and verandahs

The Entry Condition Report

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

the tenant or lessor/agent to

complete each of these steps

within the given timeframe is

a n o f f e n c e u n d e r

the Residential Tenancies and

Rooming Accommodation

Act 2008 (the Act).

It can be a good idea for either

party to take dated photos or

videos recording the condition

of the place at the start of the

tenancy as this can help to

minimise the risk of disagree-

ment about the state of the

property later in the tenancy.

Disputes about the standard of

the premises before the tenant

moves in should be dealt with

at the start of the tenancy –

addressing these concerns at

the end of the tenancy is often

a more complicated process.

It’s a good idea for all parties

to keep a copy of the Entry

Cond i t ion Repor t and

the lessor/agent must keep a

copy of the form for at least a

year after the tenancy agree-

ment ends.

Source: www.rta.qld.gov.au

(Form 1a) is the official record

of the state of the rental prop-

erty when a tenancy begins

and it may be used as evi-

dence in a dispute about the

bond or the condition of the

property at the end of the ten-

ancy agreement. The report

can help support a lessor/

agent’s claim for compensa-

tion if the property has been

damaged beyond normal fair

wear and tear, and it can pro-

tect a tenant from unsubstanti-

ated claims.

On or before the tenancy’s

start date, the lessor/agent

must prepare the report, mark-

ing each item as clean, work-

ing or undamaged, as appro-

priate. The lessor/agent

should note any additional

items, sign the report, and give

a copy to the tenant.

The tenant then has 3 days to

add their own comments, sign

the report and return it to

the lessor/agent, who then has

14 days to provide the tenant

with a copy of the final report

which has been signed by

both parties. Failure of either

16 April Mid Month Accounting 18 April Good Friday (Office Closed) 20 April Easter Sunday (Office Closed) 21 April Good Monday (Office Closed) 25 April Anzac Day (Office Closed) 1 May End of Month Accounting

A Selection of Properties Recently Leased

Kelvin Grove House $470p.w.

3 bed, 1 bath, 2 car accommodation

Quote

“If you want to make your dreams come true, the first thing you have to

do is wake up.”

—J.M. Power

Spring Hill House $995 p.w.

4 bed, 2 bath, 2 car accommodation

RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5221 FAX 07 3876 5544

www.profilerealestate.com.au Bardon QLD 4065 TEL 07 3510 5227 Helen helenbryan@remax.com.au

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Chelsea profileassist@remax.com.au

Errors & Omissions: These details have been prepared by us on information we have obtained and while we trust it to be correct, is not guaranteed by us and you should rely on your own enquiries.

Indooroopilly House $730 p.w.

3 bed, 2 bath, 2 car accommodation

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