Do I really need Landlord insurance?

November 18, 2011 Leave a comment

Not all tenantsare bad, but you do need to make sure you are covered
Guard against this sort of nightmare...
Guard against this sort of nightmare…

should something go wrong.

While most tenants take good care of the proper they are leasing, those that don’t may intentionally cause extensive damage. Intentional damage is not covered by many standard home insurance policies nor is the failure to pay rent.

The valuable common features of a Landlord Insurance policy include:

  • Malicious or intentional damage to the property by the tenant or their guests
  • Theft by the tenant or their guests
  • Loss of rent if the tenant defaults on their payments
  • Liability, including for a claim against you by the tenant, and
  • Legal expenses incurred in taking action against a tenant.

It’s important to remember that not all landlord protection policies are the same. Some, for instance, are designed to be used in addition to a typical home and contents or strata title policy while others are more comprehensive.

Some policies allow cover for the contents of the property. This is particularly important if you rent a partially or fully furnished property. Speak to your First National Property Manager and they will be able to help you find the right policy.

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Agents Should Rate In Energy Scheme

October 20, 2011 Leave a comment

First National Real Estate believes real estate agents have a role to play in any national mandatory disclosure energy efficient rating scheme, so long as it is the right role.

The proper policy and regulations need to be in place, and the appropriate people prescribed the role they are best suited to play.

A national and consistent approach is crucial to any future success of a scheme of this nature.  Current state-based schemes already produce inconsistent ratings and results due to software flaws or subjective interpretation of results often compounded by a lack of correlation between actual energy performance of houses and their star ratings.

The real solution to the mandatory disclosure issue lays with government and industry working together.

Government needs to get the scheme right and put it in place with appropriate support strategies, both in terms of financial resources and implementation, which means getting the regulations and policies passed, educating the general public on the benefits of energy efficiency ratings and funding ongoing research and development.

It then falls to real estate agents to promote the ratings through the marketing of the properties they have on their books to buyers and lessors.

The real question is how assessors are selected and trained and accredited.  It is important that they are independent of the real estate profession so no potential conflict of interest is perceived by consumers.

The First National Real Estate network is committed to environmentally efficient principles and prides itself on its green initiatives – it fully supports a national mandatory disclosure of energy efficient ratings scheme, as long as all players act in the interest of the environment.

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ATO Yet To Alter SMSF Rules For Renovations

October 17, 2011 1 Comment

The Australian Taxation Office (ATO) has yet to alter its intepretation of rules around using self-managed superannuation funds (SMSFs) to renovate property, despite recent reports that may suggest otherwise.

A recent First National Real Estate Burnie media release suggested that funds from within a SMSF could now be used to renovate properties.

Instead, First National Real Estate Burnie can confirm that the ATO has issued a draft ruling, and at this stage it’s just accepting comments on how it proposes to change its interpretation of the relevant SMSF rules.

The draft ruling can be obtained from the ATO website and comments are being accepted until October 28. A copy of the draft ruling can be obtained using the short link included below.

First National Real Estate property managers continue to prepare for the anticipated increase in interest in property from SMSF investors.

Draft ruling: http://bit.ly/nAJP3E

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Look beyond fees for effective management

October 13, 2011 Leave a comment

Nearly 150 of First National Real Estate’s property managers recently gathered in Melbourne for the network’s annual
Property Management Conference – ‘Network, Share, Evolve’.

The professional development forum was chiefly focused on issues affecting the efficient management of millions of
dollars of property investments nationally.

Because of changes to Australian tax law, investors can now borrow for the purposes of property investment and this has resulted in an exponential increase in the amount of property acquired by Self Managed Superannuation Funds (SMSFs). As a result, property managers must be prepared.

A recent tax ruling now allows trustees to use money in their fund to renovate property as well. That means property managers need to be equipped to guide landlords who own investments, as part of their SMSF, toward appropriate, cost effective renovations, using licensed tradespeople. First National Real Estate has taken steps to assure that its
property managers are aware of qualified specialists in the industry and can point customers towards a range of providers.

According to First National, most property investors spend too little time assessing the skills of their property manager and need to look beyond fees when choosing who will manage their investment portfolio.

Property Managers frequently manage real estate portfolios exceeding the value of most financial advisors yet rarely
receive such recognition.

The commitment required to effectively maintain properties, quality client relations, legislative compliance, and,
excellence in customer service is sometimes extra-ordinary or even super-human.

Yet, when choosing a property manager the network indicates that the majority of landlords and investors look only at
management fees, thinking that property management represents little more than the collection of rent.

Investors need to consider the systems and experience behind the agency that they are entrusting the management of their properties to.

Professionally qualified and trained property managers bring so much more to the equation than rent collection. You only need to experience one problem with a tenant to begin to understand the importance of a comprehensive appreciation of the laws governing tenancy. Paying a slightly higher fee for a more professional manager makes a huge difference, even without a problem tenancy.

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Warm Up Winter Buyers

June 28, 2011 Leave a comment

Selling your home is nerve-racking at best but there are some things a seller can do to maximise the value of their property, even when the weather is cold and things look a bit dull and gray.

The most important tip is to appoint a well-respected, reputable and trustworthy real estate agent because they have a duty to achieve the best price for their clients, keep their finger on the pulse of the market and  keep their clients educated and informed on current market trends.  

Agents are encouraged to think creatively and strategically to shorten the number of days properties are on the market and maximize the price of the property, including updating photography, being positive and upbeat, using all the marketing tools such as social media and networks, and making sure the seller sets the right price. 

Here are a few things sellers can easily undertake and afford to present their properties in the best possible light: 

  • Paint a few feature walls to create visual impact.  Consider using the services of an interior decorator for a quick consultation and some ideas.
  • Add a few personal touches like family photos and memorabilia around the place to give that ‘homey’ feel
  • Keep lights on during inspections to add an interesting touch and make sure curtains, shutters and blinds are open – letting in as much natural light as possible as well as make rooms feel much more spacious.
  • Make sure everything is clean including windows, both inside and out and light fittings.
  • Place some flowers in vases to liven things up a bit, and even consider spraying some perfume around (but not too much!)
  • Turn on heaters so that the temperature inside the home is comfortable, inviting the buyer to linger longer, especially on cold days. 

Another key tip is that sellers should always try to keep in mind who they are selling to, just like any other product that is for sale. 

At the end of the day, sellers should put themselves in the place of the buyer, think about what would they look for and make sure their home delivers as best as it can. That’s what First National Real Estate does – they think of their clients and put them first, because that’s what they would like if they were clients.

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Girl Power Shouldn’t Be Turned Off

October 26, 2010 Leave a comment

Women are an increasing force to be reckoned with, but it seems more than one in four real estate agents continue to ignore them in the home buying process.

Research conducted on behalf of First National Real Estate by Newspoll shows almost 26 per cent of women surveyed felt real estate agents took more notice of their partners/spouses.

This needs to stop.  It is discriminatory, bad business practice and not good for the industry overall.

Statistics show the number of women planning to purchase property on their own has more than doubled in the last two years alone.  Their growing numbers and level of importance in the home buying process makes them a key demographic group that should be at the forefront of everything a real estate agent does – from the way they market a property, to the ‘inclusive’ nature of conversations with prospective buyers.

The survey, conducted by Newspoll, interviewed 1200 women from around Australia, across all age groups, and found that the older women got, they more they felt they were not being considered, or listened to by real estate agents.

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Elect for a New Lease on Property Life

August 24, 2010 3 Comments

Regardless of who wins the Federal Election later this week, now is the ideal time for those interested in investing in property to get on the bandwagon.  Strong rental yields coupled with good buying conditions are creating a perfect market for would-be investors to build their wealth through property.

There are many advantages to investing in property and at the start of a new financial year, when people’s minds are on tax, investors should look at capitalizing on the tax advantages in particular.  Property as an investment is also an excellent vehicle for generating income and capital gains and it is relatively low risk. There are a lot of ways for people to take the first step on the property investment ladder, such as buying with family, friends or work colleagues – it’s just a matter of being a little more creative and strategic in their thinking.

Investors are once again claiming the market space being vacated by first home buyers whose numbers are beginning to level out. So, now is the time to capitalize on market conditions before investor activity returns to normal levels and competition begins to heat up again. Existing home owners could consider using equity they have in their own home, or other investment properties.

 Over the last 12 months, rental yields have strengthened, vacancy rates have remained tight and there is an ongoing supply shortage in the face of strong and growing demand, especially as increasing interest rates erode housing affordability.

This general trend in the rental market is expected to continue for some time, and certainly for as long as neither party plans to do anything to effectively manage the supply versus demand equation. Regardless of the political outcome, property will remain a strong contender for the investment dollar.

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First National Promotes A Will To Succeed

April 21, 2010 Leave a comment

First National Real Estate Burnie, Deanne Lamprey says under the recently introduced Intestacy Laws millions of Australians risk cheating their loved ones out of a fortune in property, if they neglect to implement the right type of asset protection. 

“Around 5 million Australians are currently without a will which means if they are part of a blended or molded family, the intended inheritors may find themselves out in the cold due to recent amendments to the Success Amendment (Intestacy) Bill 2009,” Deanne said. 

The legislative changes were driven by changes in our society, where families have become more complex, due mainly to the high number of divorces, second marriages and new de-factor relationships. 

Simply breaking up an estate on someone’s death and distributing it among surviving family does not necessarily provide the best outcomes for the family. 

Under the new legislation, spouses or partners of people who have not made Wills, will receive 100 per cent of their estate upon death and children will not benefit. 

So, in today’s increasing numbers of blended and molded families, this does not bode well for a lot of people and has the potential to leave a lot of distraught, unhappy family members behind, potentially resulting in hugely expensive and protracted court cases where no-one comes out a winner.

Having worked in the area for a number of years First National Real Estate Burnie,  has forged strong relationships with local financial planners who are able to help their clients with appropriate advice and support to ensure they have a Will to Succeed, where their legacy is left to the people they want.

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Can Renting Be Better Than Buying?

March 23, 2010 Leave a comment

Rent or Buy?

Current market conditions, coupled with growing concerns over housing affordability, are causing uncertainty for home buyers who are wondering whether they should continue to rent or commit to buying their own home. 

It all comes down to what suits individual’s personal and financial situations best. Renters and buyers should consider which will be best for their net wealth and cashflow over their lifetime and seek good professional advice.
 
Renting offers great flexibility, is often a cheaper alternative to buying, especially in the inner city areas particularly favoured by Gen Y-ers who want that urban lifestyle close to where they work and monthly rental payments will usually be less than a mortgage repayment for a comparable property along with maintenance costs, repairs, rates and insurance bills which are the responsibility of the property owner. 

However, buying a property means you are able to put your own personal stamp on the property or make it reflect your individual style and design preferences, and eventually you will own your own property and no longer need to find monthly repayments. 

With advice and assistance from a real estate agent, who has the necessary knowledge, experience and skills to understand the market, its trends and its weaknesses and opportunities, the right decision can be made.

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