In this edition: How Do You Bag the Best Tenants? Be Sure Not To Underinsure Changing Homes – Change the Locks! HOW DO BANKS VALUE PROPERTIES? IT'S ALL IN THE DETAIL – SMALL BUT IMPORTANT THINGS TO CHECK FOR WHEN BUYING A PROPERTY…

June 2012

MOULD… HOW IT AFFECTS YOU AND HOW TO SAFELY GET RID OF IT! A Selection of Properties Leased This Month Quote Calendar of Events

Better Get in Quick...

Things have quietened down from

a letting perspective which is usual

for this time of year. We're still get-

ting properties rented of course,

just not being swamped with peo-

ple or applications. Wherever pos-

sible, we advertise a property from

4-5 weeks prior to it becoming va-

cant and find that this works well in

terms of securing quicker lease

renewals. We actually start the

process 2-3 months prior to the

lease expiring and some of our

owners ask: why so early? Two

reasons: 1) if you want to ask your

tenant to vacate at the end of their

lease you as the owner must give

2 months notice for them to vacate.

2) To try and confirm the tenants'

intentions as soon as possible so

that we can advertise early enough

to try and find a tenant before they

vacate. It is important to note that

the tenant only has to give you 14

days notice if they wish to vacate

at the end of their lease. Hope that

all makes sense! If not, please

don’t hesitate to discuss it with us

personally and we be happy to ex-

plain further.

From a sales perspective, the of-

fice has been flying. Last month

the office was recognized as num-

ber 5 office for the RE/MAX group

nationally. So if you're thinking of

selling at some stage, we'd love to

help you and you can know you

are in great hands.

For those of you who are non resi-

dents a change announced in the

budget will likely effect you. I hope

to contact you all personally to up-

date you but in case I miss some-

one please be aware that the gov-

ernment announced they will be

removing the 50% Capital Gains

Tax discount from 8 May this year.

Please check with your accountant

for full details and if you would like

a market appraisal provided as of

this date we will, of course, be hap-

py to assist.

We are really appreciative of the

referrals we receive from our own-

ers and for owners of properties

we have been managing for 3

months or more, and there’s good

news! If you refer a friend to us we

will give you 2 months free man-

agement as a special thank you.

Wishing you health wealth and

prosperity

Christina

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

Be Sure Not To

Underinsure

Underinsurance is a serious

problem for Australian home

owners and is one of a num-

ber of features policyholders

should check regularly.

The Insurance Council of Aus-

tralia estimates that up to 70%

of Australians were under in-

sured.

One major insurance provider

(AAMI) suggests that the aver-

age level of underinsurance is

$85,000 whilst older Australian

homes were underinsured by

$131,000 on average.

How Do You Bag the

Best Tenants?

The secret to attracting the

right tenant is by making sure

your property is the right prop-

erty! And it’s all in the detail…

Following are some top tips to

make sure your property is

ready to perform:

Keep decoration simple

and décor very neutral.

Storage, wardrobe and

cupboard space are criti-

cal. Include free standing

wardrobes or pantries if

not built in.

Bathrooms need to be

workable and super

clean. Remove mould

and regrout if necessary

to give a fresh look.

Gardens should be easy

to care for or include gar-

den maintenance.

Ensure the property

looks, feels and smells

clean.

Changing Homes –

Change the Locks!

Whether you’re buying or rent-

ing it’s always a good idea to

have your locks changed as

soon as practical when you

move into a new premise.

Have landlord protection

insurance.

Use an agent as tenants

tend to prefer a middle

man.

Make sure the agent has

access to reales-

tate.com.au, do-

main.com.au and other

popular websites such

as: remax.com.au!

Here are some insurance tips

to ensure you avoid being un-

derinsured:

Review your insured val-

ue at least annually.

Building prices can rise

rapidly so make sure

your home can be re-

placed by the agreed in-

sured value.

When taking out a new

policy or reviewing an

existing one, make sure

you understand what fea-

tures your policy contains

and what the insurance

covers.

Being underinsured can cause

financial heartache – never

take your policy for granted.

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

theory, would allow them time

to conduct the appropriate re-

search, and secondly – as we

noted back in November –

rental return should determine

value, not what a previous

buyer paid.

If you require finance to com-

plete the purchase of a dwell-

ing, all financiers seek a valua-

tion to ascertain the value of

the property that is being of-

fered as security for the loan.

Licensed valuers must base

their opinion on hard evidence

and take legal responsibility

for any information they pro-

vide.

Australia’s four major banks

have a panel of valuers who

are assigned to value a partic-

ular property through a pro-

cess called “Valuation Ex-

change” (Valex).

Smaller financiers often use

the same valuers as the “big

four”, although there are many

valuers who are not part of the

Valex system.

To assess a property’s value,

a valuer must inspect the

property, record details on the

number and type of rooms,

along with fixtures, fittings and

any improvements. A proper-

ty’s unique attributes will also

be taken into account, such

as:

Location

building structure and its

condition

standard of presentation

and fit-out

standard of fixtures, fit-

tings and facilities

zoning and whether and

planning restrictions ap-

ply

The valuer combines these

attributes together with recent

comparable sales in the sur-

rounding area and prevailing

market conditions to produce a

valuation report. Several pho-

tographs must also be taken to

support their findings.

The identification of appropri-

ate comparable sales is often

the most contentious issue,

This eliminates any concerns

that others may have a key

and access to your home and

its contents. Let’s face it: you

will never know if a relative or

cleaner may still have a key!

Remember, when renting you

will need to seek permission

from the agent or landlord

PRIOR to changing the locks

and a full set of keys will have

to be left with the agent or

HOW DO BANKS VALUE

PROPERTIES?

The difference between the

price paid by the buyer and

the bank valuation is often

high – over 20% – and the dif-

ferential is spreading.

When asked about this situa-

tion, I replied that the solution

should be a relatively simple

one.

Firstly, bank valuers should be

paid more – they carry the

risk, not the bank – and this, in

especially in relation to new

apartments purchased “off-the

-plan”. There are a number of

reasons for this, as detailed

below.

Comparable sales should

be recent (less than six

months’ old).

This is problematic when the

number of sales is low

(perhaps because of a limited

supply of dwellings for sale) or

because of economic fac-

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

as comparable sales. This is

based around the mistaken

belief that a developer sale

does not represent the “true

market“. In some locations

– especially where there is

no sales history for dwelling

types such as a new subdivi-

sion in a green-field area –

or where sales volumes are

lower than usual – this leads

to valuations that do not truly

reflect a property’s worth.

However, the Australia and

New Zealand Valuation and

Property Standards state that

where the property to be val-

ued is within a new develop-

ment and is being purchased

from the developer, sales from

other comparable develop-

ments should be considered

as a cross-reference.

In our view, this means deve-

loper sales in other projects

can be used as sales evidence

to support a valuation.

Valuers usually do not

use sales made to interstate

and overseas buyers as

comparative sales, based

tors. The number of dwelling

sales last year in Brisbane,

for example, was well below

historical averages as a result

of the January 2011

flood. This has meant that

identifying the required num-

ber of comparable sales has

become that much harder.

Sufficient analysis of al-

leged comparative sales

must occur so that family

transfers and distressed

sales are not shown as mar-

ket transactions.For exam-

ple, one of our developer

clients arranged for one of

its newly-completed apart-

ments to be valued by sev-

eral valuers independent of

the banks. The first valua-

tion came in at $720,000.

The second at $730,000 and

the third at $595,000! Why

was the third valuation so

low? Because the valuer in

question had erroneously

based the valuation on a

“distressed sale” in a nearby

project. Such sales are con-

sidered to be inconsistent

with the concept of ‘Market

Value’ as defined in the Aus-

tralia and New Zealand Val-

uation and Property Stand-

ards.

Banks and their valuers

are reluctant to use develop-

er sales (either made “off-

the-plan” or after comple-

tion) in competing projects

again on a mistaken belief

that non-local buyers are un-

educated and pay higher

prices than local buyers.

In Queensland, clause

27c of the sales contract re-

quires all agents to list how

much commission they

charge. Valuers – on in-

struction from mortgage in-

surers and banks – often re-

duce the purchase price by

the amount the agent is paid

in excess of the standard

Queensland sale fee of

2.5%. This is based around

the belief that the developer

is increasing the purchase

price by anything higher

than the standard REIQ

commission. Our under-

standing is that this clause

only applies in Queensland.

Again, as we wrote a few

months ago….the distribution

of costs should have no bear-

ing on the end value of a prod-

uct.

Finally, remember that you as

a buyer can challenge a valua-

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

tion if it appears too low.

In particular, keep in mind that

comparable sales evidence

needs to be “like for like” as far

as possible, especially insofar

as proximity (to a railway sta-

tion for example) or height

above ground, view, aspect,

ceiling height, facilities and so

on.

Furthermore, valuers can uti-

lise a much wider range of da-

ta than just comparable sales

in any valuation report.

Source : Michael Yardney Property

Update (2 March 2012)

IT'S ALL IN THE DETAIL –

SMALL BUT IMPORTANT

THINGS TO CHECK FOR

WHEN BUYING A

PROPERTY…

When inspecting a property

that you are interested in po-

tentially purchasing, it is not

uncommon to focus on promi-

nent aspects such as room

size, aesthetic style, the num-

ber of bedrooms and bath-

rooms, and layout.

While these are important and

will certainly influence your ini-

tial impressions of a property

and whether it is suitable for

your requirements, there are

also a variety of smaller fac-

tors that are often overlooked.

Although not as obvious, these

can affect your day to day ac-

tivities at home and may re-

quire a little bit of preparation

to ensure a comfortable move.

For example, I have heard of

numerous cases where people

who have moved into new

homes are confronted with is-

sues such as power points

that are located in inconven-

ient areas, disrupting the

planned positioning of furniture

and requiring the purchase of

extension cords, or kitchens

that don't give aspiring chefs

enough bench space to pre-

pare decadent meals.

While certainly not deal break-

ers, elements such as these

are still important and can im-

pact your enjoyment in your

new home or may just require

extra preparation when mov-

ing. As such, you may like to

consider the following aspects

when inspecting a property of

interest:

the number and location of

power points;

The size of designated

storage spaces - e.g. linen

and kitchen cupboards:

The location of telephone

and television connections;

The amount of bench and

preparation space in the

kitchen;

Functionality of doors, cup-

boards, windows;

The area's reception (for

televisions, radios, etc);

The amount of light that

enters a property at various

points of the day;

Loading docks and service lift

access in apartment buildings.

At the end of the day, many of

the above issues (and others

that arise) can be rectified

easily and are unlikely to dis-

suade you from buying your

ideal property. However by

knowing what to look out for,

you will be better positioned to

plan and prepare for your

move, avoiding potentially

frustrating situations.

Source : Life @ Home (17 March

2012)

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

contacts.

'While mould is everywhere

and we breathe in spores with

every breath, it’s when the

concentration builds that it can

start to play havoc with our

health.'

Dr Peter Dingle, environmental

scientist and presenter of the

SBS show Is Your House Kill-

ing You?, says that in the US

mould is now being referred to

as the 'asbestos of the new

generation'.

'The effects of moulds and

dampness on the respiratory

health of children are compa-

rable to the effect of passive

smoking and include other ef-

fects such as asthma and

chronic bronchitis,' he says.

'Mould exposure is associated

with catching more colds,

more infections in the lower

respiratory system and irrita-

tion of skin, eyes, fever and

headache. In severe cases, it

can cause death.'

Are you allergic?

Moulds are common allergens,

with an estimated 40 per cent

of people having some sensi-

tivity to breathing in mould

spores. These are the micro-

scopic 'seeds' which mould

MOULD… HOW IT AF-

FECTS YOU AND HOW

TO SAFELY GET RID OF

IT!

Mould thrives in damp and hu-

mid conditions, in places

which are not well ventilated.

These conditions have been

exacerbated this past summer

along Australia’s eastern sea-

board due to La Niña, a

weather phenomenon which

brings excessive rain.

Sydney, for example, has rec-

orded its wettest summer for

more than a decade.

Queensland building biologist

Pauline Ferguson says she

has been run off her feet since

the 2011 Queensland floods

and now the recent very wet

summer.

She stresses the importance

of not letting mould grow un-

checked in your home.

'It’s toxic and can cause ill-

ness,' Ferguson says. 'It will

exacerbate existing illnesses

such as asthma or allergies

and slows healing of wounds.

It damages the physical struc-

ture of your home or building

and contaminates anything it

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

colonies produce and one col-

ony can produce millions a

day, which are then expelled

into the air.

But growing research into

mould has found its impact on

health is far more wide reach-

ing than just triggering asthma

attacks, respiratory irritation,

runny noses and allergic reac-

tions.

A 2007 US study found a link

between damp, mouldy homes

and depression, while Harvard

University researchers found

babies growing up in damp

homes where mould and mil-

dew are present develop more

respiratory illnesses such as

pneumonia, croup and bron-

chitis.

Forget cleaners

Supermarket aisles are filled

with cleaning products which

profess to kill 99.9 per cent of

germs and mould. But Fergu-

son says any chemical which

could permanently kill house-

hold mould would be too high

in toxic concentrations for safe

human habitation.

'Mould is like cat hair - you can

kill it as much as you like, but

unless you remove [the

source], it will still be there,

and it will still make you

sneeze and get sick,' Fergu-

son says.

She recommends removing

basic mould with a concoction

made with seven parts natural-

ly brewed vinegar and three

parts water applied with a mi-

crofibre cloth.

If mould is entrenched, she re-

commends professional help.

'According to mycologists

[scientists who study mould],

98 per cent of the effective re-

moval of mould is mechani-

cal - that is, physical action,

with cloths, vacuum cleaners,

brushes and high-pressure

cleaners,” she says.

Shannon Lush, co-author of

Household Wisdom (ABC

Books), urges people to avoid

using chemicals such as

bleach or ammonia because

they won’t work against mould.

'Bleach merely bleaches

mould so you can’t see it, but

it’s still there,' she says. 'It

doesn’t kill the root system

and the mould will grow back

in weeks.'

She says a formulation of oil of

cloves and water is the best

way to remove mould once

and for all. 'No matter what the

bottles of chemicals say, they

will not kill mould and the

problem will get worse.'

Stopping the bloom

Shannon Lush has these tips

for killing and preventing

mould.

To kill mould on hard sur-

faces, fabrics and uphol-

stery: A quarter teaspoon

oil of cloves (available at

pharmacies and super-

markets) mixed with one

litre of water, then lightly

sprayed on to the mould.

To kill mould on leather:

A quarter teaspoon oil of

cloves mixed with 250ml

baby oil. Apply two drops

and wipe over leather.

To prevent mould in cup-

boards: Hang six sticks

of chalk tied with a ribbon

in the cupboard to ab-

sorb moisture. When

they become damp, hang

them outside to dry, then

reuse.

To prevent mould on

books: Lay a line of chalk

sticks behind the books

to absorb the moisture.

Source : The Courier Mail (18 Febru-

ary 2012)

11 June PUBLIC HOLIDAY (OFFICE CLOSED)

15 June Mid Month Accounting 02 July End of Month Accounting

A Selection of Properties Leased This Month

Indooroopilly Townhouse $475 p.w.

3 bed, 2 bath, 2 car accommodation

Quote

"If fear is cultivated it will become stronger, if faith is cultivated it

will achieve mas-tery."

- - John Paul Jones

Herston House $670 p.w.

3 bed, 1 bath, 1 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 Nikki profilerentals@remax.com.au

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Helen helenbryan@remax.com.au

Marcia profilerentals2@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.

Brisbane City Unit $535 p.w.

1 bed, 1 bath, 0 car accommodation

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