RE/MAX Profile Landlords' Newsletter April 2015
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Transcript of RE/MAX Profile Landlords' Newsletter April 2015
In this edition: How long will it take for your property to rent? Legal impediments and rental property Invest for Your Child’s Future!
April 2015
Save on All the Hard Work— Declutter or Furnish with Photography! A Selection of Properties Recently Leased Quote Calendar of Events
Dear Landlord,
We are in pre Easter world here at
RE/MAX Profile after our office has been
overwhelmed with colouring-in entries from
our local Rainworth Primary school. What
a wonderful community we live in here at
Bardon. If you have a chance over the
Easter break and live locally you should
pop past our office to see the wonderful
artwork. I am very grateful for the
generous efforts of Grant & Christina our
principals who have given hundreds of
chocolate eggs to all entrants with the
winner receiving a 10kg block of
chocolate.
This week and next are short weeks and
we remind you that our office is closed
from Good Friday to Easter Monday
reopening on Tuesday 7th April. Over the
break should you have any queries or
emergencies please contact me on my
details below. I will be checking my emails
over the break but would like to give the
Easter holidays and our latest rental updates
other Property Managers in our team a
well deserved break with their families.
I have had several discussions with
Landlords since I last wrote to you
regarding the current rental market.
January to March is dominant months for
re-letting. Until this year. We have record
low interest rates and for the first time a lot
of stock with less 'good' tenants
looking. What does this mean to
you? Look after your good tenants.
Secure long term leases, at least 12
months recommended with a 6 month
prenegotiated increase and be competitive
with your rental price should you have a
vacating tenant or current vacant
property. It's often better to reduce $10
per week rather than keep vacant in most
cases. To compensate the market change
this year, we have opened up our
inspection times to include early mornings
and evening appointments view
prospective tenant viewing. This is proving
to be popular and ensuring our owners
properties are moved quickly with minimal
vacancy.
Many new to investing may not realise all
the benefits you can claim especially
with June 30 fast approaching. If you
"Have a home loan? 5 minutes could save
you 5 years in repayments. Call Josh now
on 0432 989 866 for your free home loan
health check."
Happy Easter to all of you. May the
Easter bunny find you. Stay safe if you
are going away. Disbursement dates for
April are 15/4 and 1/5.
Best Regards,
Belinda Johnston
General Manager—Property Management
0429 544 159
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 March.
BRISBANE STATISTICS The Market
Source: rentfind.com.au
Legal impediments and
rental property
All rooms, gardens sheds or
decks etc. should be approved by
the appropriate authorities.
For example the Building Code of
Queensland states the following;
A garage is classified in the BCA
(Building Code of Australia) as
(1) The lessor must ensure
t h e r e i s n o l e g a l
impediment to occupation
of the premises by the
tenant as a residence for
the term of the tenancy.
(2) Subsection (1) applies only
to legal impediments the
lessor knew about, or ought
reasonably to have known
about, when entering into
the agreement.
Source:
realestateexcellence.com.au
non-inhabitable building. To use
or convert a garage to a
habitable room, building approval
is required and will have to
comply with the standards
outlined in the BCA Volume 2.
For e.g. a minimum room height
is 2.4m for a habitable room.
This also extends of course to all
facets of the property having
appropriate approvals and if
app l i cab le loca l counc i l
registration and approval.
The RTRA Act (Qld) sets out that
the lessor must ensure that there
is no legal impediment to the
property.
181 Legal impediments to
occupation as residence
Brisbane, QLD March 2015 Annual Change
Median Weekly Rent - House $ 420 1.2% increase
Median Weekly Rent - Unit/Apartment $ 390 0%
Days on Market (Avg) 29.5 2.9% increase
Days Vacant (Avg) 16.8 1.9% increase
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
Invest for Your Child’s
Future!
How property depreciation
claims can help your family
now and later…
People choose to invest in
property for a number of different
reasons. Owning bricks and
mortar has always been a dream
that most Australian’s aspire to.
But as property prices continue to
rise and the market grows
increasingly harder for today’s
younger generation to get their
foot onto the ladder, many
parents may be thinking of
investing in property now with the
idea that their purchase will be an
asset for their child’s future.
What many investors remain
unaware of when purchasing an
investment property are the
benefits of claiming depreciation.
According to the Managing
D i r e c t o r o f B M T T a x
Depreciation, Bradley Beer, 80%
of investors still fail to claim the
m a x i m u m d e p r e c i a t i o n
entitlements available to them.
it? The Australian Taxation Office
(ATO) allows the owner of any
income producing property to
claim depreciation due to the
wear and tear of a building
structure and the plant and
equipment assets contained
within the property over time.
All investment property owners
can claim depreciation, however
higher depreciation deductions
are usually available on newer
properties. Owners of new
properties are eligible to claim
the full deduction on the entire
cost of the building structure over
forty years, while the owners of
properties which are not brand
new can claim the remaining
years.
The ATO does prov ide
restrictions when it comes to
claiming capital works deductions
based on a p r oper t y ’ s
construction date, so it is
important to check with a
specialist Quantity Surveyor what
deductions will apply. But even if
a p r o p e r t y c o m m e n c e d
construction prior to the ATO
legislated date of the 15th of
In a recent study of the
deductions property investors
claimed in the 2011-2012 income
year, BMT found that the average
capital works claim of $2,029 and
$1,139 for plant and equipment
depreciation made (a total
average claim of $3,168) was
well below the typical claim BMT
found for residential investors
who request a BMT Tax
Depreciation Schedule.
“Data collected from tens and
thousands o f BMT Tax
D e p r e c i a t i o n S c h e d u l e s
s u g g es t e d t h e av e r a g e
depreciation claim should be
around $10,100 in the first full
financial year and $7,350 per
year on average over the first ten
years of owning a property,” said
Brad.
It’s these sorts of figures which
show just how worthwhile it can
be for investors of any income
producing property to enquire
a b o u t t h e d e p r e c i a t i o n
deductions for their investment
property.
So what is depreciation, and how
do investor’s go about claiming
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
over time and investors can only choose one method. If the parents are
purchasing a property with the idea they will sell it when their child is
older, they may want to choose the diminishing value method which
claims depreciation of assets over a shorter time. Parent’s investing in
property who wish to hold onto it as more of a longer term investment
and who might prefer to receive more constant deductions over time,
may on the other hand choose the prime cost method of depreciation.
Discussing which depreciation method applies to an individual
investment strategy with an Accountant is also recommended.
Case study
Janet and Warren purchased a new $500,000 apartment one year ago
and planned to rent the property for fifteen years as an investment for
their children’s future.
They rented the property for $490 per week and received a total
income of $25,480 per annum. Expenses for their property including
interest, rates, property management fees, repairs and maintenance
costs totalled to $30,838.
Towards the end of the first year of owning the property, Janet and
Warren’s annual after tax outlay amounted to $3,376 or $65 per week.
After hearing about the depreciation benefits available from their
investment property, Warren contacted BMT Tax Depreciation and
found out that he could claim $14,800 in depreciation in the first year
claim alone. Below is a summary showing the cash flow both before
and after depreciation was claimed.
September 1987, these buildings
will often have been updated
over time. Any structural
renovations completed, even
those completed by a previous
owner of a property may also be
depreciable for the owner.
When it comes to depreciating
assets, there are no date
restrictions. It is the condition and
quality of each item which
contributes to the depreciable
amount. On average 15% of the
total construction cost of a
residential property is made up of
plant and equipment items such
as carpet, hot water systems,
blinds, garbage bins, mechanical
exhausts and door closers.
It is also important for parents
thinking of investing in property
for their child’s future to note that
when a specialist Quantity
Surveyor applies depreciation to
assets, there are two alternative
methods which can be applied.
These are the diminishing value
and the prime cost methods of
depreciation.
Each method claims the
depreciation of assets differently
www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants
By taking advantage of tax depreciation and making a depreciation
claim, Janet and Warren were able to turn their loss into an income of
$40 per week or $2,100 within the first year of holding the property
alone.
The above scenario can work on any type of investment property, be it
a new or old apartment or a new or old house. The below table outlines
some of the real deductions BMT Tax Depreciation has found for their
clients:
For more information about claiming depreciation on an investment
property, investor’s can contact BMT Tax Depreciation and speak with
one of their friendly staff on 1300 728 726.
Article provided by BMT Tax Depreciation.
Bradley Beer (B. Con. Mgt, AAIQS, MRICS) is the Managing Director of BMT
Tax Depreciation.
Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia wide
service.
Save on All the Hard
Work— Declutter or
Furnish with
Photography!
It’s now possible to declutter and
refurnish a property on the
market, thanks to developments
in photography.
W i t h m o s t p r o s p e c t i v e
purchasers and tenants turning
to the internet for initial searches
real estate photographers are
now offering a range of difference
services, including altering
images for specific times of day,
aer ia l shots, 360-degree
photographs and video tours.
The newest edition to the
technology means you can
remove mess and furniture to
dec lu t t e r t he ho m e o r
alternatively, add virtual furniture
into an empty property, giving
purchasers or renters the vision
of a home, rather than an empty
room.
Source: REINSW Journal, March
2015
3rd April Good Friday-Office Close 4th April Black Saturday-Office Close 6th April Easter Monday-Office Close 15th April Mid Month Accounting 25th April ANZAC Day-Office Close 1st May End of Month Accounting
A Selection of Properties Recently Leased
Moggill House $1,200 p.w.
5 bed, 3 bath, 7 car accommodation
Quote
“Perfection is not attainable, but if we chase perfection we can catch
excellence”.
—Vince Lombardi
Sinnamon Park House $750 p.w.
4 bed, 2 bath, 2 car accommodation
RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5222 FAX 07 3876 5544
www.profilerealestate.com.au Bardon QLD 4065 Belinda [email protected]
www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen [email protected]
Lisa [email protected]
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.
South Brisbane Apartment $480 p.w.
2 bed, 1 bath, 1 car accommodation
Calendar of Events