Australian Commission of Audit Video News - Budget is looking like hell

Shared by Chris Snell, Property Manager, Rental Success Blog
The Australian Commission of Audit has handed down its report to the Australian Government. There are some fundamental flaws in the current levels of expenditure and the options available to claw back some of the debt and reduce the continuing escalation of expense does involve some tough love for the Federal Treasurer Joe Hockey. The pressure will now fall on all Members of Parliament to gauge the public sentiment and lobby within the party rooms to resolve a safe strategy on Budget Night in less than two weeks. View the brief video of the status of play at this time.

#Australia Politics Live: Joe Hockey releases Commission of Audit report http://t.co/6LldDC6NgP via @smh
— Chris (@rentalsuccessAU) May 1, 2014

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Mining Boom Cools and Vacancy Rate Booms in Western Australia

1 in 5 vacancies due to broken leases 
According to an interview between the Residential Property Manager Online News, Tenants are leaving the rental market in droves as low interest rates and affordability present a true buyer’s market in Western Australia. Speaking to Residential Property Manager, president of the Real Estate Institute of Western Australia (REIWA) David Airey said the rental market was undergoing a period of pain. “Things are definitely slow, we’ve had a big increase in vacancies across the state due to the downturn of the mining boom," he said. “The rental market is also suffering from tenants vacating properties in record numbers.” According to data gathered by REIWA, 20 per cent of all vacancies on the market are as a result of a broken lease, with the previous tenant becoming a first home buyer. The tenancy lease data gathered by REIWA is derived exclusively from members of the association and allows property managers to specify why the lease was broken. “We currently have a vacancy rate of 3.8 per cent, which means there are 4,500 properties available, an increase of 100 per cent from last year,” Mr Airey said. But Mr Airey said the market was due for a correction after booming for years. “We’ve had three years of extraordinary growth and owners are still enjoying good results from their investments, but I am expecting more pain before things begin to stabilise,” he said. Artcile written by Written by Steven Cross on Friday, 21 March 2014 http://goo.gl/omsdez shared by Chris Snell, Property Manager, Rental Success Blog

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You might have been hearing about how the current economy is making real estate a buyer's market, but do you know how to use this to your advantage? Professional property managers and rental property companies do specialise in assisting investors and home owners rent out their property. Before you can start finding your tenant you need to know how to buy a rental property in the right place and space. This article has advice on how to approach buying real estate in a logical manner that will make sure you get what you want at a price you can afford.

Tips On Making Money With Rental Properties

Buying Rental Properties

1. Find a location of rental properties you want to invest in that are surrounded by local amenities such as parks and malls. In a large city, a property near public transportation is especially profitable. The more things to do that are close to the rental property will draw in more potential tenants and allow you to turn a profit quicker than a rental property that is in the middle of nowhere.


2. Understand the setup of the utilities in rental properties. If you are considering a multiple unit rental property, it is important to pay attention to the way that the utilities and heating system have been set-up. Take note of the number of gas, water and electric meters either inside or outside of the home to determine how many services are connected to the property. If there is only one connection, be aware that you will most likely need to include utility costs in the rent payments. You might also want to make a call to the local zoning commission, so that you know if there would need to be any major changes to the utility services. There could be significant costs involved in splitting or combining services and you will want to know this in advance.


3. Learn how to attract good tenants. If you are going to purchase rental properties it is absolutely imperative that you carefully market your units in such a way that attracts the best tenants possible. Marketing is important and you should pay careful attention to how other owners are marketing their properties, particularly those with low vacancy rates.


4. When purchasing real estate to use for rental properties be sure to do a careful assessment of the neighborhood. Look at the cars parked in the street. Old cars can tell you a lot about the neighborhood in which the property is located. Trash on the sidewalk or worn down houses can tell you that the neighborhood is less than great and at what level you can expect to rent the property.


5. Look for rental properties in student areas. A college or university neighborhood is a great place to look for a rental property to purchase. In most cases, the vacancy rate will be minimal, and most of the time students pre-pay their rent for the semester or even the entire year. The one drawback is that some students only want 3 month leases; however, if you form a relationship with the school's housing office, you will most likely have no problem at all finding tenants.

Research potential properties before purchasing them. If you are considering a rental property, evaluate the following features before signing the closing documents.

One of these is sustainability. How is the condition of the property and how much upkeep will it require in the future?

The second thing to consider is the location. Especially with property that you plan to rent, location can make all the difference. You need to ensure that your tenants can get to where they need to go and that the property is near commonly used retailers and service providers.

The third thing to consider is the median income of the property's area. This will not be the same as the physical location. You want to remember that any low rent area will be worse than any high rent area. You should also keep in mind that concerns about location are not as high a priority for high rent areas. Locational issues do become more of a factor in areas with a lower rent.

This article will help you take advantage of the current buyer's market in real estate. Make sure you follow the tips to get the best out of your real estate buying experience. You can get what you want, at the price you want, with the benefits that buyers can get with the state of the economy.

For more tips on making money with rental properties, please click this link

Article Source: http://EzineArticles.com/?expert=Sam_E_Watson
Blog Posted by Chris Snell, Property Manager Australia, Rental Success Blog

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Buying A House Or An Apartment?

Buyers Guide .... Buying a House or Buying an Apartment? 

When you are looking to rent our your home or when you are looking to buy an investment property there are significant differences to take into consideration the differences for their use as a rental property.

Everybody thinks a 2 bedroom unit is the perfect investment property model to buy. However you might be misled. This might be investor suicide to think that your 2 bedroom flat is going to rent out easily but nobody told you about the 75 other similar properties in the same suburb or city street being promoted for lease at a cheaper price to you. You are at risk of sitting vacant and on the market for a long time.

If you are doing some research ahead of your purchase for your investment property then you are wise to take into consideration the competition within the rental market place you might well find that there is a shortage or a particular property type and a subsequent consumer demand. It might mean that you actually end up purchasing a 2 or 3 bedroom house on a small block of land, or a 3 bedroom two story townhouse.

Click above to claim a free report on the Costly Mistakes Landlords Make

Speak to a local property manager or a leasing agent specialist in the the areas that you are interested in. Too many people only talk to a property manager about the cheapest property management fees and the best property management agencies factor. However I argue that you should be interview your property management office during your buying process. Buying an investment property should not be rushed and should not be something you buy like you would buy a property to occupy for yourself.

Remember that most sales people are exactly that! They are not going to spend much time on matters related to property management, leasing out your property, choosing the right investment property to purchase, and nor will they spend much time discussing rental property vacancy rates. Wishing You Rental Success!

Written by Chris Snell, Property Manager, Rental Success Australia Blog

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Reserve Bank holds the Cash Rate 4 February 2014 - CommSec Economic Insight

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