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RBA lower the official cash rate

The RBA this week reduced the official cash rate by .25%. Weeks leading up to the RBA meeting suggested this may be the case and on 1/11 (Melbourne Cup day) it was announced.

We see this only as a possitive, it will entice buyers back into the market while also allowing first home buyers to also enter the market for the first time.

Most banks have now adjusted their rate accordingly so now may be a good time to check your existing mortgage and make sure you are getting the best possible deal.

Self managed super funds & rental renovations!

This month may see the decision by the Australian Taxation Office (ATO) to allow Self Managed Super Funds (SMSF) investors to renovate their investment properties through their Fund.

The money can’t be borrowed – it must be funded through the SMSF – and it can’t be used to change the fundamental use of the property, such as a house-to-apartment conversion.

It may increase the appeal of un-renovated properties, which tend to be less expensive that their renovated counterparts, with Australian Managed Super Funds investors taking a closer look at this market.

Whether this ruling does or doesn’t go through right now, it is recognition that people saving and planning for their financial future should have the opportunity to buy and improve an investment property’s value through renovations.

Buying real estate through SMSF is a growing trend in Australia according to ATO figures.

If a new ruling doesn’t come down this month, it is likely to stay on the ATO radar, and is yet another reason for investors to work with a real estate network that remains abreast of change and keeps them informed.

For more information visit the below links:

Self Manager Super Funds - ATO  

SMSFS - Propery Investment  

SMSF - IntellieChoice

Getting Ready for Summer

Our Top Recommendations!!

Ensuring that your asset continues to grow in value is what owning an investment property is all about. This is why ongoing and regular maintenance is absolutely imperative. Below are our top tips for pre-summer maintenance which will not only benefit your property/s long term condition but make for a positive and conducive relationship with your tenants. Your efforts in proactively maintaining your property to high standard in between seasons help us to ensure your tenants continue looking after your property to the same level. 

1. Service your air conditioning system/s

An air conditioner is a very tough piece of equipment. It is engineered to withstand heavy use & keep on running. This is great in most respects, but it can lead to complacency about maintenance. Like a car, air conditioners need regular tune-ups to run properly. Studies show that with regular tune-ups a unit will maintain up to 95% of its original efficiency. If you have a system with covers, ensure these are removed prior to summer!

2. Reticulation systems and Bores

Due to water restrictions and bans during winter, it is a good idea to check your bore and reticulation systems are running and programmed correctly. Sometimes when systems and/or bores aren’t used for long periods of time problems can arise, especially if they are quite old to start with. It’s advisable to have a professional check and reset it to ensure no problems during the summer, which can be both more costly and have long waiting lists.

3. Pool/spa health – how’s yours travelling?

Like reticulation, pools aren’t used much during the winter so it’s a good idea to have a health check done by a professional prior to summer. For those who include pool maintenance in their lease your contractor will do this for you. For those who don’t, having a health check done is a great best practice strategy that will help ensure your pool is well maintained and healthy over summer and save you money down the track as potential maintenance issues can be picked up and solved early on, before the summer price hikes.

4. Mulch/wood chip garden beds to aid in water retention & presentation 

This isn’t a maintenance tip as such, more a recommendation. Properties with quite involved gardens or garden beds may benefit from an annual prune/tidy up and fresh mulching. This prepares it for the dry summer we have. This isn’t an owner requirement (unless stipulated in your lease) however it provides you with peace of mind they are in good order and prepared for summer, as although it may be your tenants responsibility to maintain them, if they fail in this it can be a long way back. An annual garden tidy can be the good faith gesture that encourages your tenant to ensure they continue to look after them well.

5. Oil your deck and outdoor furniture

Unless your decking timber is painted or treated, it’s important to oil it every three to six months. Good oil will enhance the natural grain of the timber and make it look lustrous in the summer sunshine. If you have decking give your property manager a call to organise for it to be oiled.

LJH Leeming Licensee/Principal Wins Top Award!

Pauline Francis is announced as the Western Australian Telstra Business Woman of the Year 2011

(Commonwealth Bank Business Owner Category)

Congratulations to our exceptional Licensee Pauline Francis who was named winner of the 2011 Western Australian Commonwealth Bank Business Owner Award at the 2011 Telstra WA Business Women’s Awards last week.

Pauline overcame the effects of the global financial crisis on Perth’s property market to be ranked in the top one per cent of the national LJ Hooker network. Managing twenty property management and sales staff, she was the first WA woman to be admitted to the LJ Hooker Board of Admirals international network in its 81-year history. LJH Admirals are a select group of high achievers chosen to drive growth for the LJ Hooker network.This year, she and her husband Darryl were also named the network’s Franchise Owner’s of the Year for WA.

Pauline was one of only 16 finalists chosen from hundreds of nominees for this year's Telstra WA Business Women’s awards. All Western Australian winners will proceed to the national finals of the Telstra Business Women’s Awards which will be held in Melbourne on the 18th of November.

Over the last few years she has been recognised amongst her peers and within the industry for her unwavering dedication to improving Property Management systems and best practice procedures, not only for her own team in Leeming but throughout the wider LJ Hooker network state-wide and nationally. 

With Pauline currently away, BDM Emma Trezise accepted the award on her behalf last Tuesday at the Hyatt Hotel and said in her speech, “good leader’s make people feel that they’re at the very heart of things.Everyone feels that he or she makes a difference to the success of the organisation.  Pauline is this leader and we are very proud to work alongside such an inspiring woman both as colleagues and as friends”

The awards are in their seventeenth year, and aim to shine the light on leaders in business who, “inspire, connect and achieve so much”.

Proud Children - Nathan & Terri Francis

 Business Development Manager - Emma Trezise 

Accepting Pauline's Award on her behalf

Selling Style Checklist

Make an entrance - Front Yard

• Add interest to your doorway with potted plants
• Pave a pathway to your front door
• Spruce up your front door with a coat of paint
• Consider improving privacy by adding a low wall at the front of your house
• If your hallway is narrow and dark paint it a light colour and add a broad floor runner to make it seem wider
• Invest in a new front door mat

Living Style - Lounge Room

• Use neutral colours in your living space
• Use receding colours like blues and greens to make the small space seem larger
• Find a focus in your room.  If you don't have a natural focus, add a feature wall
• Ensure your carpets are cleaned and marked or damaged timber floors are re-sanded and polished
• Layout your living area to show how you live there

The Room That Sells - Kitchens

• Fix the floor by lifting old lino and replacing it with new lino, polished floorboards or tiles
• If your bench tops are scratched or stained, replace them with new laminate bench tops - it is not that expensive
• New cupboard and drawer handles will add life to an old kitchen
• A fresh coat of paint will cover cooking splatters and add life to a drab kitchen
• Kitchen clutter must be cleared

Soak Up a Sale - Bathroom

• Your bathroom must be spotless and tiles clean
• Fix or replace cracked basins, toilets or tubs
• Air your bathroom before inspections - bad smells are a buyer turn off!
• Add a little luxury with plump towels, handmade soaps, a plant or flowers and some boutique bath products
• If your bathroom is small maximise space by putting the towel rail behind the door

Sleeping In Style

• Reduce the amount of furniture in small bedrooms to give the impression of space
• Storage is important - consider adding built-in wardrobes
• Add a little luxury with fresh linen, puffed pillows and extra cushions
• Dimmer switches create atmosphere in a bedroom
• De-personalise your bedroom but add little touches like candles and perfume bottles

Step Outside - Backyard

• Trim your lawns and weed your garden beds
• Define your garden bed borders, edge
• Add a focal point
• Give the illusion of space in a courtyard by using large pavers
• Introduce colour with pots of whatever is in flower

Finishing Touches

• Ensure all areas have been dusted, vacuumed and place new light globes in all rooms
• Add colour to neutral rooms through accessories
• Keep window treatments simple
• Disguise small windows by hanging curtains from the top of the wall rather than the top of the window
• Add elegance by extending your curtain drop so it pillows on the floor
• Don't go overboard with patterned accessories as they create a cluttered feeling
• Keep surfaces clear and clutter free

PAYG Variations

Extra Money in Your Pocket Weekly!

An often overlooked way in which Investors can improve their weekly cash flow is through a pay as you go (PAYG) variation. The PAYG system is a method of tax collection that was introduced in July 2000 to replace previous versions of the same system, such as pay as you earn (PAYE).

PAYG instalments are a system for paying instalments towards your expected tax liability on your business and investment income for the current income year.

A PAYG variation is an application to the ATO requesting that your employer reduce your weekly/fortnightly tax payments to reflect set deductions like depreciation on a rental property. In essence it is a way of decreasing the amount of tax you pay each fortnight to help with your week to week cash flow. Rather than a tax return at the end of the financial year, it is equivalent to receiving small portions of your return each week.

The flexibility this gives the Investor, combined with depreciation deductions identified by your Quantity Surveyor, can be of great help in managing investments and mortgage repayments.

Let's consider a hypothetical situation:

You have just purchased an investment property. If you were to take your potential tax return, including the extra deductions gained from your investment property, and divide it by 52 weeks, this would give you the approximate amount your tax is reduced by per week - creating the extra cash flow.

A Quantity Surveyor makes it even easier for you when you consider the extra tax deductions they are able to identify for an investment property. Talk to your accountant about PAYG variations and increase your weekly cash flow!

Tips for First Home Buyers!

Do your homework!!

• Obtain pre-approved finance for a loan so you know exactly how much you can spend before you even begin your search. Having a pre-approved loan means you will be ready to act immediately once you find the right property and there will be less chance of someone else beating you to it. Make sure you have your pre-approval in writing from your lender.

• You may have fallen in love with a property but be sure to do your research before getting too attached or making an offer. Important factors to consider when determining what you are prepared to pay include the position of the property, the size (how much property are you getting for your money), the condition and if any upgrades are necessary and future capital growth potential.

• Understanding the real estate market you want to buy in is the key to successful buying. Before making any final decisions, seek professional advice from somebody that has nothing to gain from you buying the property. Websites like www.apm.com.au, www.rpdata.com.au, www.ljhooker.com.au, www.realestate.com.au offer fantastic resources when researching the property market.

• Understanding the practicalities of buying a home and the sales process prior to making an offer or bidding at an auction can also help your chances of finding the right property sooner. It is a good idea to read up on how auctions work and tips on bidding, the same goes for making an offer on a property for sale, It is also worthwhile speaking to friends and family members about their home buying experiences.

• Creating a list of all the properties you have seen helps to keep track of what you’ve looked at, the features of each property and the asking price. Noting down everything from the number of bedrooms, parking, condition, agent’s details, asking price plus services and facilities in the area will help to paint a clear picture of each property. This is also a good way to compare the pros and cons of each property and what you may need to compromise on.

Email me at etrezise.leeming@ljh.com.au for a property comparison form! This will help you keep track of the properties you have viewed and their pro’s and con’s.

$200 Voucher for Acclaimed Rock Pool Bar & Grill

We want to hear from you!!

Tell us in 25 words or less what you would like the Real Estate industry to improve on most and why!

Ideas, feedback and opinions are what we are looking for!!  Sales or Property Management!!

All entries will automatically go into the draw to win a $200 Gift Voucher for the acclaimed Rock Pool Bar and Grill at Burswood Entertainment Complex.

Neil Perry's unique steakhouse combines an impressive dining room and informed service, with a superb menu showcasing the finest and freshest Australian produce!!

To enter:   Add us as a friend on FACEBOOK

 LJ Hooker Leeming Facebook Page

Then post your suggestion on our page!!  

Entries Close:   Wednesday 28^th September

Winner Drawn:  Friday 30^th September

For more information visit......

LJH Leeming Blog

Rock Pool Bar & Grill Website

Come and see your property!

Many landlords do not realise that it is well within their rights to attend routine inspections undertaken at their property.  Many clients that move to us from other agents have not been aware of this and in some cases have actually been told the exact opposite!

We recommend all of our landlords exercise there right to attend an inspection at least once a year as although we provide them with detailed quarterly inspection reports with accompanying photos, nothing provides the same clarity as seeing things with your own eyes.

It is quite common for our property managers to alert owners to small maintenance items in successive reports, however as we all know a small problem can over time become  a big problem if approval for repair is not given in a reasonable time.

Seeing your property annually can help to ensure small items are attended to and can also help to further alert you to areas that may need attention in the future. It can also provide you with peace of mind that your property is being well looked after.

The law states very clearly that owners must allow for ‘fair wear and tear’ when leasing property. This is one the more difficult areas for property managers to handle & manage fairly.

Annually viewing your property helps to keep you up to date with the wear and tear on your property. This is especially important for landlords who have long term tenants (3+ years in a property) as we must allow for more wear and tear than would  possibly be acceptable for a shorter tenancy. 

The age of the home also plays a large part in determining what ‘acceptable wear and tear’ is, as well as the condition the home was in when your tenant originally took possession. 

Written By Emma Trezise - Business Development Manager LJH Leeming