Welcome to the May 2010 edition of the [H]arringtons Property Management Newsletter.
Our Mission Statement
- To build a business where all employees, clients and customers feel part of “The Family”
- To provide the highest level of customer service and satisfaction in the industry.
- To treat all clients and customers with the dignity and respect they deserve.
- To ensure their property experience is one to be savoured.
- Loyalty
- To assist charitable organisations in their efforts to enhance the live of those less fortunate.
Street Parties
Do you remember the good old days when you knew your neighbour’s name, were happy to help baby-sit each others children, and felt comfortable asking to borrow sugar or flour? If you know your neighbours well, you are the minority. If you don’t know your neighbours, maybe it is time to get to know them. With the busy lives that we all seem to live, we sometimes don’t have time to build relationships with our neighbours. Getting to know your neighbours can greatly help in your day-to-day living. They can be a helping friend in times of need.
How you can benefit:
- A friendly and safer neighbourhood.
- Feed the animals when you are away.
- Keep an eye on your property when you are away.
- Pick the children up from school in times of need.
- Help baby-sit the children.
- Offer mates rates with work around the home. You may be amazed at just how diverse your neighbour’s jobs are. There could be plumbers, electricians, builders, landscapers and other professionals willing to give you a good deal.
It is easy to get started. Place an invitation in your neighbours’ letter-box inviting them to a street get- together for an afternoon BBQ. You can choose to have it at your home with a good outdoor area or meet at a local park.
5 Common Cover Ups
Following is a snapshot of the five common cover-ups on Archicentre's list of what to look for when purchasing property.
- Illegal building constructions - Estimated costs to repair: up to $100,000.
- Cracking - Estimated costs to repair: up to $50,000. Average $3000. Cover-up: internal walls patched and painted, external walls concealed behind plants and/or trellis.
- Termites and timber rot - Estimated costs to repair: up to $20,000. Average $5000. Cover-up: floors patched and hidden under carpets.
- Roof problems - Estimated costs to repair: up to $20,000. Cover-up: Rusty metal roofs painted and tiles patched.
- Rotten weatherboards, windows - Estimated costs to repair: up to $10,000.
It is highly recommended that prior to purchasing any property that you ensure that you invest in the services of a professional building inspector and pest-control company. For such a small outlay, it can save you thousands. SOURCE: Archicentre www.archicentre.com.au
First Home Buyer Numbers Plummet
Friday, 14 May 2010
The number of Queensland first home buyers has plummeted to their lowest level in six years, according to the Real Estate Institute of Queensland (REIQ).
The Australian Bureau of Statistics (ABS) March housing finance report shows first home owners now represent just 13 per cent of the market in Queensland, a lower percentage than in both New South Wales and Victoria where property prices are higher.
The number of Queensland first home buyers has also dropped a staggering 60 per cent since the same period last year when historically low interest rates and government financial incentives helped many into the market.
"These figures really show how much of a struggle it is for prospective home owners to get into the market in Queensland. With six rate increases since October, they are really back to where they started with declining housing affordability all but locking them out of the market," REIQ managing director Dan Molloy said.
"While stamp duty concessions are available to Queensland first home buyers, first-timers in New South Wales and Victoria are eligible for extra State-funded first home grants, something that is not available here."
The State Government has indicated it is considering extra funds for first home owners to buy in regional areas however that is just not an option for a lot of people.
"The reality is many young people want, and need, to live in South East Queensland due to the employment opportunities available here so they are faced with much higher property prices than first-timers in regional areas," he said.
As the Federal Budget did not offer any long-term solutions to tackle housing affordability, it is imperative that the Queensland Government address the issue in its Budget in June.
"More needs to be done to assist first home buyers otherwise we may end up with a generation of young people whose dream of home ownership will never be realised," Mr Molloy said.
Guidelines For Investing
As more than a million property investors around Australia will tell you, buying an investment property involves a great deal of forward planning, not unlike the purchase of a family home.
But while the decision to buy a home to live in is usually quite emotive, buying investment property should be solely based on rational and practical considerations.
"Investors have to remember that where a family home is a purchase from the heart, an investment property is very much a purchase from the head," REIQ managing director Dan Molloy said.
"It is a business decision and like any business decision it must be underpinned by a well researched business plan.
"Property has been, and always will be, a good financial investment as long as people take the necessary steps to ensure they don’t get caught out."
However, unless investors have done all their homework, they may find themselves stuck with an investment property that cannot be rented due to poor location or demographic factors. As a result, they may wind up having to sell it for less than they paid.
To minimise the risk of being lumbered with a bad investment the REIQ recommends buyers do their homework and research the area they intend investing in.
"Try to ensure that the rental market is strong in the area you purchase property in.
"The REIQ produces a quarterly research publication called Queensland Market Monitor which contains very useful information about the local market, including vacancy rates and median weekly rents," Mr Molloy said.
Not only does a buyer need to know what price they can expect to pay but they also need to be aware of what sort of return they can expect from their investment.
Discuss your financial situation with an accountant or qualified financial advisor and ensure that your situation will allow for possible increases in interest rates or a period of time when the property may be vacant and without a tenant.
A good tip is to check the properties for sale online. Find properties with similar features and compare their prices.
"There will, of course, be some properties that are worth more than others because of certain attributes, such as proximity to water or public transport," Mr Molloy said.
"But this simple research should prove a valuable guide to determining what is on the market, and at what price."
The sorts of factors important to most tenants include: being close to public transport, having access to community infrastructure such as State schools, shopping centres and medical facilities.
The student accommodation market is an important consideration for many property investors and, to tap into this segment, investors should focus on the suburbs within five kilometres of a major tertiary institution.
Ensuring you buy the right property not only makes it easier to rent out, but also makes it easier to sell if the need arises.
Wanted - Executive Homes
Our Corproate Relocation Division is searching for the following types of properties for our executive customers:
Paddington Area - 4 bedroom, 2 bathroom, study, 2 car remote controlled garage, in-ground pool, executive home, minimum 12 month lease with option to extend for another 12 months $1500 - 1800pw
Indooroopilly Area - 4 bedroom, 2 bathroom, 2 car remote controlled garage, in-ground pool, executive home, minimum 12 month lease with option to extend for another 12 months $1600pw
Hawthorne/Bulimba/East Brisbane - 3 bedroom, 2 bathroom, media room, 2 car remote controlled garage, jetty, in-ground pool, city views or river views, minimum 12 - 16 month lease up to $1800pw.
Our customers are pre-qualified and are serious about finding homes for their families to move into when they arrive from overseas. Please contact Tracie Harrington on 0405 540 646 if you know of any properties that may suit these clients. We can supply references from our current/recent clients who have experienced the services our Executive Division provide.
Selling
If you are thinking of selling your investment property or if you are just curious to see what your property is worth then please contact our office enquiries@harringtonsrealty.com.au.
Our sales team will be able to assist you with all of your sales requirements 07 3217 9259.
Buying
If you are thinking of additing to your investment portfolio please call our office, to register your requirements, our team will start looking for property on your behalf.
We have several of our clients who are selling their investment properties at the moment, the sale can be much easier when you know the history of the current tenants and when an investor is selling direct to another investor.
You do not have to worry about moving the tenants out or paying their moving costs to have them vacate earlier.
Recent Case Studies
Finance
A good girlfriend recently called me asking for advice, her mortgage repayments had increased so dramatically that she thought that she was going to have to sell her property. She had not slept in days, was crying and was at her wits end. She thought she would have to pack up her family, get her children out of school they had only been at for 2 years and move back to New Zealand. She was desperate.
I told her she should call our recommended mortgage brokers and they might be able to assist her.
Well they did! They had her property revalued, borrowed another 2 years worth of repayments which they advised her she should place in her mortgage account so it could cover the repayments. She was over the moon!
She could now concentrate on securing a job with a higher salary and this would give her family the time they needed to re-organise their finances and best of all, no uprooting of the kids from their home, schools and country.
Remember, if the mortgage strain is getting to you, there are options, it is just a matter of knowing what options are available to you in your personal circumstances.
If you would like to know more about this or any other case study please contact our office on 32179259 or enquries@harringtonsrealty.com.au.
Landlord Insurance
An old client of ours needed to make a claim on their landlord insurance for several items that the tenants had damaged in the property.
The owner went to make a claim from his landlord insurance policy only to find out that he had to pay $500 excess for each individual item that he wanted to claim. It was very disappointing to discover that out of the total that he wanted to claim, the owner would only receive about $13 in actual insurance cover, therefore not making it worthwhile to claim.
Please ensure that if the time comes to make a claim using your landlords insurance that the policy that you have will actually work for you. We have had several instances where non-landlord specific insurance policies are worthless to our clients. Please read the fine print and understand how the claim would work in your specific circumstances.
If you would like to find out more about landlord insurance please contact our office on 32179259 or enquiries@harringtonsrealty.com.au
Another Investment Property?
Did you know that we now manage properties from Cairns to Ipswich and to the Gold Coast?
Consolidating your investment properties to the one agency can make the financial management & communication process easy and stream-lined. If you have another property and would like our agency to assist you with the transfer process to take away the stress of changing agents, we would be more than happy to do so while ensuring that your tenants are not disrupted.
We also offer incentives to clients who wish to consolidate their investment portfolios. Please contact us today on 07 3217 9259 or e-mail tracie@harringtonsrealty.com.au to see how we can assist you further.
ACT for Kids
Harringtons Property Management are working very closely with ACT for Kids was previously known as the Abused Child Trust and was to raise funds for their fantastic work. The next time you visit our office, you will see our donation box on our front counter, we are very grateful for any change you can spare.
Alternatively, if you're wondering how to minimise your tax as the end of financial year looms, you're in a great position to help abused and neglected children by making a tax deductible donation to ACT for Kids.
It's a win-win situation. Not only will you beat the 'tax man' by reducing your assessable income, you'll also feel good knowing you're bringing some hope to the lives of many children affected by abuse and neglect. You can support a particular ACT for Kids program or event, be a winning bidder at their upcoming Art Show, or simply make a donation either online or by calling them on 1300 228 000. Not only will you get a tax break, you'll also help us mend little hearts.
A special thank you to our tenants who have been very generous already. To find out about the work that ACT for Kids is doing, or to donate online please visit www.actforkids.com.au.
$2 Donation
As part of our fund raising efforts, I would like to ask all of my clients, tenants and contractors to contribute $2 from their rental income at the end of each month, or a once off contribution of $24 per annum. If you are interested in supporting this fantastic cause in this way please download the donation form and e-mail Tracie on tracie@harringtonsrealty.com.au.
It may seem like a small amount individually but if we all join forces to donate only $2 per month it will be a big help to kids who need it most!
Office News
Ian Betts
Please help me to welcome Ian Betts to the Harringtons Family. Ian is assisting our office with development and growth of the business, you will be seeing a improvements and additional benefits in the coming weeks & months. You can already see that Ian has assisted with the development of our sales team.
Ian brings over 20 years of property knowledge with him, he is fully licenced and has operated and owned several real estate agencies over the years. We look forward to seeing what other benefits Ian can bring to your property experience. Ian can be contacted on ian@harringtonsrealty.com.au or 07 3217 9259.
Tejna Pranlal
We would also like to welcome Tejna to a full time role within our Property Management Team. Tejna has been working with our office for many months now in a casual position however she is finishing her university degree within the next 2 weeks and and will now be able to dedicate 5 days a week to the office.
Tejna has completed her full real estate agents licence and is a very detailed property manager who has been carrying out all of our periodic and open home inspections. Tejna will be working from Tuesday to Saturday and can be contacted on tejna@harringtonsrealty.com.au or at the office on 07 3217 9259.
Feedback
If you would like to talk to anyone within the office please feel free to contact us on 07 3217 9259 or via e-mail enquiries@harringtonsrealty.com.au.
