November Median Prices Update (Victoria, Australia)

Metropolitan and regional

This data release from the REIV compares sales over the 12 months ending 30 November 2011 with the preceding year.

	Nov 11	Nov 10	Annual change	Nov 06	5 year change
Metropolitan Houses Median	$550,000	$546,000	0.7%	$370,000	48.7%
Metropolitan Unit and Apartment Median	$460,000	$460,000	0.0%	$315,000	46.0%
Regional Victoria Houses Median	$315,000	$300,000	5.0%	$247,500	27.3%

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Starting Your Tenancy [what you need to know]

At the beginning of your tenancy, you need to:

• Carefully read and understand the tenancy agreement before you sign it
• Get the landlord or agent’s contact details
• Pay the bond if required
• Pay rent in advance if required
• Fill out and keep a copy of the ‘Condition Report’

Improved Facebook Site

If you are looking for a certain blog article we now have an indexed list on our Facebook site. Simply browse through the list of posts and click to read at your leisure. 

Our 'ask us' page has also been replicated on Facebook.  By doing this we hope to become a valuable resource for property investors, landlords and tenants with questions.  

• True Property Management on Facebook

• Indexed List of Blog Articles

• Your Questions

So, take a look and let me know what you think or the new, improved site.  Your feedback, comments and suggestions would be much appreciated.

Would You Rather be an Owner or a Landlord?

Most of our clients have come to the realisation that being an owner of rental property is far more fun than being a landlord.  An owner doesn’t have to make the hard and distasteful decisions that the landlord must make.  Like enforcing lease provisions, making the tenant pay on time and in some cases, evicting the tenant for breach of the lease.

If you are tired of being a landlord and want to explore the world of property ownership without the headaches and hassles, give us a call.  That’s what we do!

Have you made the change from landlord to owner?  We would love to hear from you ... share in the comments below why you made the change and how this has improved your property investment experience.

Tenancy Laws - How to Deal with Urgent Repairs

If you request urgent repairs the landlord or property agent must respond immediately.  The tenancy laws in Victoria, Australia state that:

 
Urgent repairs are: 

• a burst water service 
• a blocked or broken toilet system 
• a serious roof leak 
• a gas leak 
• a dangerous electrical fault 
• flooding or serious flood damage 
• serious storm or fire damage 
• a failure or breakdown of any essential service or appliance provided by your landlord or agent for hot water, water, cooking, heating, or laundering 

21 Tips to Ensure Your Home is Secure These Holidays

Leaving for the annual holidays, before you pack the car and head off for some well deserved relaxation - take some time to ensure your property is safe and secure in your absence.

1. Do not hide door keys under mats, rocks, flower pots or door ledges.  Leave your key with a trusted friend or neighbour.
2. Do not post on Facebook (Twitter etc) that you are heading away on holiday.  Burglars also know how to search Google.
3. Make sure that you lock all windows and doors, even if just leaving your home for a few minutes. Intruders only need a few seconds to ruin your day.

A Property Manager's Christmas

Don’t you just love it…Christmas time in property management-land.

Just hear those sleigh bells jingling,

ring ting tingling too

Come on, it's lovely weather

for a sleigh ride together with you

Call me Scrooge but as a property manager the thought of Christmas is one of dread!

QR Codes in Property Management - a new gizmo or real value?

Our website and branding is currently being redesigned and one of the topics to come up during this process is QR codes.  Q what codes I hear you ask!  Let me share what I have learnt and how I think this technology could be great for property management.

[Scenario] Driving past a property you like with a rental sign out front.  Would you rather see this...

5 Property Management Tips for Landlords

As any landlord knows, property management is seldom as it seems at a glance. Many homeowners who plan to let out their property assume that managing tenants and the property itself will be simple and straightforward, without understanding the huge amount of administration and effort that goes into the management of a property. For new landlords hoping to learn how to effectively manage their property in Melbourne, here are a few things to consider when letting out your property to prospective tenants:

The 'boomerang' generation - why young adults are moving back into the family home

It used to be that we looked after our elderly parents, often inviting them back into the family home rather than face the pro's and con's of retirement villages.  However it seems the trend has swung the other way with many young adults choosing to move back into the family home as they look to either save for their own house, finance extended education or ... are just happier to be living at home with the often more favourable dynamic of being treated as adults.

How to Avoid Real Estate Scams

After reading an article on the Australian Securities and Investments site regarding Rob Dale's sentence for defrauding four investors out of 2 million dollars,  I spent time searching for tips on how to avoid real estate scams.  The following article by Kathryn Vercillo presents great advice:

Real estate investment scams are definitely a problem that many unfortunate people have run into. Real estate is worth a lot of money (even in these days when the real estate market isn’t exactly at its best). That always attracts fraudulent people and that’s why someone who is looking to invest in real estate may come across a problem with scams. There are definitely some things that you can do to protect yourself from scams when investing in real estate though. In fact, a lot of these things are basic and common sense things that you probably already know but can forget in the hasty excitement of buying a new home for investment. Let’s take a look at them so you can keep them in mind and avoid getting scammed.

Property Management is...

There have been many articles posted on the benefits of property management, the comparisons with self managed properties and how to find a property manager to suit your requirements.  The following definition captures what you have the right to expect for your monthly property management fees, anything less is not acceptable.

New Zealand - Family's House Carted Off on Truck After Loan Payments Missed

I came across this article on Google and thought it worth a share.  While it did happen back in May, it's the first time I've heard about the actual house being repossessed.

Family's house carted off on truck after loan payments missed

By Edward Gay 5:30 AM Tuesday May 17, 2011

 

A family's home was carried away on the back of a truck yesterday because they failed to meet the mortgage payments. 

9 Tips to Secure Your Rental Property This Holiday Season [protecting your rental property income]

Christmas is a busy time of year for the less desirable professions of our society.  Yes, it is time to discuss theft, burglary and vandalism - and minimising risk to your rental property income.

If your existing investment property is going to be untenanted over holidays or your tenants are leaving for their summer vacation there are precautions you can take.   If your property is still in the ‘construction’ stage, what has up to now been a busy building site with tradesmen in and out all day will soon resemble a ghost town as the workers take their annual hiatus. 

How to Deal With Non-Paying and Slow Paying Tenants

If you are looking at a property management agency to manage your rental investment, one of the first questions to ask is for details on their rental collection policy. 

At True Property Management, our rent collection policies are as follows:

Tenancy Laws - What To Do If You Think Your Rent Increase Is Too High

To find out about tenancy laws if you think your rent increase is too high, or looking at increasing the rent of your tenants contact Consumer Affairs Victoria for assistance.


You can request a rent assessment if you think a rent increase is too high or you are not receiving some or any of the services, facilities or other items that are part of the tenancy agreement.
 

A request for a rental assessment must be made in writing within 30 days of receiving a ‘Notice of Rent Increase to Tenant/s of Rented Premises’.

Tenancy Laws - What Are Your Rights as a Tenant?

Tenancy laws are there to protect your rights as a tenant. Do not sign anything unless you understand what it means. Never sign a blank form, even if it looks official. All official notices you give your landlord or agent must include their name, your signature and other details in some circumstances.

FAQ #3: Why Choose True Property Management for your Australian Real Estate Management?

In two words, Experience and Expertise.   When it comes to Australian Real Estate we have the background and the knowledge to manage your property to ensure maximum yield.

Our clients know that our people make the difference. Our business is owned and operated by the people who train, mentor and coach other property managers throughout Australia and have done so many years. If you have a residential rental property in Melbourne, there is no better choice than True Property Management. 

Property Management Realty in Melbourne – Looking Forward

Property management realty in Melbourne is changing with our city.  As our population increases our city is changing, with more high density apartments being built to meet the demand, investors often opting to purchase ‘off the plan’.  

 

By 2030, metropolitan Melbourne’s population is expected to increase by 620,000 households and by 925,000 people. Managing this increase will present substantial challenges for where and how we live. We face across-the-board changes that will alter our perception of what we want in housing, and the way the housing market develops. These include:

How Can a Property Management Agency Add Value to Your Investment Property?

There are two common approaches in renting your investment property, the Do It Yourself (DIY) approach or to hire a professional property management agency.  The DIY approach proves to be an appealing option for property investors, increasing your immediate cash flow when not paying the services of a property management agency.  However the true value of a seasoned professional property manager is worth their weight in gold, as they can add significant value to your investment.  Here's how:

FAQ #2: When you find an applicant for my property, how do you qualify them?

We strive to provide you with the caliber of tenants that you want in your rental property. This includes:

• An interview with one of our highly experienced team members
• A 100 point identification check
• A detailed tenancy database search
• Verification from their current/former landlords/agents
• Verification of their employment
• Verification that they can afford the rent and all other monies payable under the tenancy agreement.

Victorian Homeowners' $300m Blow

An interesting article but the results are not at all surprising.

Numerous blocks of apartments have been built in the CBD, Docklands and Southbank precincts over recent years with a large number of the apartments being purchased by foreign off-the-plan speculative purchasers. During the past three years, many of these investors have been forced into selling due to the economic climate and a desire to rationalise assets. As Catherine Cashmore states quite correctly, high-rise developments will generally lose value before they gain value primarily due to the initial purchase prices paid being over-market at the time.

10 Years Ago - by REIV.com.au

A review of some market indicators shows that a lot has changed in the past decade.

 

In the June quarter this year the median Melbourne house price was $590,000, which is 103 per cent higher than the $291,000 recorded in the June quarter 2001.

 

A decade ago the stamp duty payable was $13,120, which is 132 per cent less than the $30,470 which was payable on the median house if purchased in the June quarter this year. Unlike a decade ago, first home buyers can now benefit from a 20 per cent reduction on this bill for most homes.

FAQ#1: Should I take out Landlord Protection Insurance?

Landlord protection insurance is vital for any professional investor and we strongly recommend you take out this cover. 

It can cover unforeseen circumstances like:

• Accidental damage or breakage
• Malicious damage or vandalism caused by tenants
• Deliberate or intentional damage caused by tenants
• Public Liability
• Loss of rental income
• Rent default and theft by tenants.

9 Reasons to Hire a Property Manager for your Investment Property

You invested in your first property. Should you manage the property yourself or hire a good property manager to handle your investment? It depends on what your skills and goals are.

Are your goals to be an property investor or simply the on-site owner? As the on-site owner you will be responsible for collecting the rent and repairing broken appliances. Your time will be devoted to the renters needs. The investor spends valuable time answering the needs of the tenants. On the other hand, if you hire a property manager, the investor could spend time finding and investing in more property.

5 Tips to Help Property Managers Complete Your Daily Tasks

One of the biggest challenges for property managers is staying on top of all the tasks they have to do in a given day. What with unit inspections, open homes, incoming and outgoing payments, resolving maintenance requests, signing leases, and responding to various queries, it’s all too easy to look at the clock at the end of the day and wonder where all the time went. Here are a few tips to help you maximise productivity in your day:

Organisation

Sometimes it can feel like there’s no time to actually get organised. But the truth of the matter is, no matter how time-pressed you are, investing in organisational time is almost always worth it in the long run. Time saved trying to locate paperwork, contact information, financial records on your computer, or any other number of other items adds up quickly. Creating a system of organization (the more automated the better) will allow you to perform all your duties in a more streamlined fashion … which ultimately results in a whole lot of time saved.

Tips to Keep a Tenant Sweet

This recent article posted by www.news.com.au reiterates how important it is in this current climate (note - important to keep your tenants happy in an economic climate!) to make sure your tenants are happy and looked after.  Whether you self-manage your rental properties or use a property manager , now is a good time to ask for an update on your property's tenants.  Are they well looked after, are there any maintenance issues the property manager may not be aware of, has there been any contact recently?

PROPERTY investors are receiving higher rents but, in a rare twist, vacancy rates are rising in most capital cities. 

 

It's a case of landlords recovering higher costs rather than pocketing profits, say real estate experts, who believe investors should do what they can to keep good tenants.

Unsure Whether to Use a Property Manager or Self Manage Your Rental Property?

Before making the decision about whether to manage your rental property yourself or hire a property manager, carefully weigh up the pros and cons of each option.

The Solo Approach

There is no question that a personal landlord approach requires significant involvement to be successful. As a landlord you need to approach every issue from a business perspective. This includes anticipating revenues and needs to maintain the property, including emergency and unplanned issues that will come up.  Do your homework when it comes to setting rent and subsequent reviews to ensure you are getting the best price for your investment.  You should also be aware of tenancy agreement legalities as they apply to your state.

There is a cost benefit to managing your own rental properties as there are no property management fees, however you do need to weigh up your own cost (time, consultants etc) to ensure that you are actually making savings.

REIV run Australasian Real Estate Institutes' Auctioneering Championship won by Kiwi

The art of auctioneering is not a new one.  The Romans used auctions to liquidate the assets of debtors whose property had been confiscated and one of the most significant historical auctions occurred in the year 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard.

A good auctioneer will get you the best possible price for your property on auction day and the recent championships held in Melbourne last night reflected the high level of skills our auctioneers have to offer.  The following article by www.rebonline.com.au covers the event.

6 Ways to Make Choosing Your Next Rental Home Easier

Moving costs a lot of money, time, and effort; so if renting, it’s crucial to find the right place for you and your family.  The Internet is a great resource and has numerous rental property websites with a wide range of houses and flats to rent. You can also check your local paper for listings or give your local property management company a call for advice and listings.

1. Finding the right property to rent online should not be too much of a chore. If you know what you want in, then you’ll quickly find the right house or flat for you. Decide whether it’s wiser for you (if you’re living alone) or your family to live in a managed apartment, a house, or a flat.  
2. When looking for a house to rent or a flat to rent, one of the things to decide on is the location you prefer. The rule of thumb for this is to find a place that is accessible to your office, your children’s school, and other establishments that you go to regularly.  When you choose such an accessible property, you’ll get to save on time and fuel, and effort, too. 

How to Rent Your Property Quickly and Attract Your Ideal Tenant

First impressions count when looking to secure the best tenant in the shortest amount of time for a Melbourne landlord.

Before you even start to list your rental property, identify the type of tenant you are looking to attract.

• There are tenants on a limited income who will not mind if the property is not in first class condition. 
• There are tenants looking for a well maintained, tidy family home close to schools and shops. 
• There are tenants who prefer low maintenance homes on small sections with modern features throughout. 
• There are tenants looking for a trendy apartment close to cafes, bars and business sectors.

Once you have identified your ideal tenant, you can then determine what budget to allocate in order to bring your property up to the standard required.

Tenancy Application: Help is not on the way

When you receive a tenancy application for a property, what are you looking for? Reasons why this applicant should be accepted as a tenant or reasons why you should not accept the application?

It’s an interesting conundrum and one that most property managers don’t even consider.

When you look at most tenancy application forms, they provide details of the applicant’s current and former places of residence; current and former employment details; personal and business references; plus additional information regarding the number of occupants, children, pets, vehicle details, banking information, income, etc. etc.

As far as tenancy history, in a previous life we could run a tenancy database check to find out the good, the bad and the ugly but in Victoria today, we can only find out the bad and the ugly and even then, with extremely limited information.

Are Today's Youth Using Family Homes to Get On The Property Ladder?

The Herald Sun posted an interesting article today about the growing popularity of family equity loans, enabling today's youth to get their feet on the property ladder.

YOUNG battlers are resorting to unconventional ways to break into Melbourne's housing market. 

 

A growing number of parents are using their own homes as security so their children don't have to stump up a deposit.

Others are buying with friends and family, renting out a room or buying an investment property to make a start.

Aussie Carnegie mortgage broker Mark Daly said family equity loans, which can allow applicants to borrow the entire value of a home and avoid costly mortgage insurance, were becoming more popular with younger cash-strapped buyers.

Finding the Right Tenant for Your Rental Property is Essential

All landlords face the prospect of choosing suitable tenants for their rental property at some time or another, and there are important steps involved in this process in order to reduce potential rent arrears and damage to the property.

1. Run an effective marketing program. Market the property at a reasonable market rent reflecting demand in the local area and ensure the property is well presented in order to attract as many quality tenants as possible—higher demand will potentially command higher rents. If your property appeals to a wide variety of people you are more likely to receive a greater number of inquiries.

Million Dollar Home Sales Continue to Fall Away

Premium housing markets around Australia are leading the downturn with home values across the most expensive segments of the capital city housing markets down by 5.6% over the 12 months to June compared with a 1.2% fall at the most affordable end of the market and a 1.5% fall across the ‘middle’ priced suburbs.  The drops, which are based on the RP Data-Rismark Stratified Hedonic Home Value index (yes… a bit of a mouthful), come after premium housing markets recorded higher than average gains during 2009 and 2010.

Eliminating Apartment Pests

Eliminating apartment pests can be a long and aggravating process depending on the level of infestation and what is used to get rid of the pests. The most commonly reported apartment pests are cockroaches, mice and spiders. Each require a different approach when attempting to rid your apartment of them because each need specific chemicals that are meant to kill them and prevent re-infestation. Generally, over the counter products will only reduce the amount of pests that you see, but do nothing to attack the actual source of the infestation. A pre-purchase building inspection will provide you with immediate knowledge of how serious your pest problem is, along with the proper method needed to eliminate whatever creature is invading your apartment.

Cockroaches are the most difficult pests to eradicate from a dwelling, mainly because all these insects need to survive is moisture. In addition, they breed quickly and have a tough outer skin which efficiently protects them. This is why cockroaches need to be eliminated by effectively rendering females unable to breed. With a pre-purchase building inspection you will find out exactly where these roaches are hiding, how many you are dealing with, and how to kill them as swiftly as possible.

Attempting to eliminate pests with do it yourself kits will only prolong the infestation and may even make it worse. If you suspect you have a pest problem, we suggest you call professionals to eliminate the source.

Allowable Grounds for Termination of a Tenancy

Following is an exert from the Victoria Residential Tenancies Act and applies to this state.  View the complete document for more information regarding tenancies.

When can a tenancy agreement be terminated?
 

Sect. 216  Termination of tenancy agreement

A tenancy does not automatically end at the expiration of the fixed term tenancy agreement. It only ends when one party gives notice to the other of the termination in accordance with the provisions of the Act or when determined by VCAT.

Sect. 217 Termination by agreement

A tenancy agreement may be terminated by agreement of both the landlord and tenant.

How Do We Market Your Property?

Once you have signed the Management Agreement authorizing True to act on your behalf, we market your property in the following manner: 

Internet: The use of the Internet by prospective tenants to locate a suitable property to lease nationally, accounts for over 95% of properties leased.

Your property is immediately listed on the following websites with comprehensive copy and at least 5 images thereby maximizing coverage to any prospective tenant using the Internet to locate a rental property.

Two More Real Estate Scams For Agents To Be Aware Of

Real estate agents in Western Australia have been targeted by overseas scams.

In one case an agent was made an offer on a property from a buyer in China and an Offer and Acceptance form was completed. After the agent requested a deposit of $10,000 be paid, what appeared to be a bank draft of $250,000 was received from the buyer. 

The agent contacted the bank from which the draft was apparently drawn and it was discovered that it was forged. Had the agent not discovered the deposit was fraudulent, it is assumed that the scammer would have requested a refund of the $240,000 they had over paid. 

Taskforce Investigates Real Estate Scam (Western Australia)

We were forwarded the following article yesterday and thought it something you should all be aware of.

A joint taskforce comprising investigators from Consumer Protection, WA Police Major Fraud Squad and representatives of Landgate is investigating a reported real estate scam.
 

A couple returning from overseas have advised authorities that their property has been sold without their knowledge or consent and a joint investigation has been launched.

The previous owners were living and working overseas at the time and didn’t discover the property had been sold until they recently returned to Perth to inspect the property.

Victoria Property Market Snapshot

July 2011


A guide to Victoria's best and worst suburbs according to market growth.

Melbourne's fastest growing suburbs (house):

Preparing Your Rental Property For Your Next Tenant

By nature, tenants are more likely to care for a property if it is presented in a clean, neat, and tidy manner. The preparation you put into getting your property ready for rental will also result in making it more appealing to prospective tenants.

A well-presented rental property also gives the impression that they will have a landlord or property manager who cares about the property.  Someone they are able to approach if the tenant has problems or maintenance which needs to be dealt with quickly.

Here are some tips to ensure you get the best tenants possible, as quickly as possible:

Why Landlords Should Consider Allowing Pets

We don't normally post other people's blogs but had to post this one for the photo alone!

The current economic recession has led to higher vacancy rates across the country. To cope with these extraordinary times, many landlords have turned to alternative solutions in an attempt to attract tenants. Once considered almost taboo, many landlords are beginning to allow tenants with pets to occupy their properties. Working the verbiage into a residential lease agreement to allow different types of pets has some undeniable incentives.