Tag Archives: renting

Why should you should consider renting?

Why should you should consider renting?When it comes to living in Australian property, purchasing with home loans seems to be the default choice. For many, there’s a general impression that renting property is some kind of short-term bridge between leaving your family and buying your first home.

But if you’ve had your eye on real estate news for the last few years, you’ll notice that purchasing real estate in Australia is getting increasingly difficult, particularly in certain capital cities.

While there are many great perks and benefits from owning property, there are also key advantages to renting that make it an appealing option.

Affordability

Affordability is a big factor for anyone. In this field, the case for renting seems to have the upper hand.

The Housing Industry Association reported in June that the National Affordability Index dropped by 2.9 per cent. Sydney and Melbourne saw the greatest decreases, at 6.9 and 9.1 per cent respectively. This demonstrates that housing prices are rising faster than people’s earnings.

While people with low interest home loans can still find ways to adapt and purchase property, it outlines just how comparatively affordable renting could be.

The deal with yields

The best way to observe this comparison is not just to examine rental rates, but to take a look at yields. Sure, rates can give you a snapshot into how much it’ll cost you per week, but this alone will not give you a holistic view.

Yield figures on the other hand, will show you how renting stacks up to buying property in the current market, which is the real contest here. This can be defined as the percentage of rental income to the home’s purchase price.

For instance, CoreLogic RP Data research notes that the median rental price for a Sydney house was $610 in July. This figure might seem high and have you consider buying instead.

However, figures reveal that Sydney’s rental yield was down 0.2 per cent over the quarter, and decreased by 0.6 per cent over the year to July. This shows that rental income were in fact lower than they should have been when considering property prices.

This is true for many of the other capital cities as well, and is a sign that renting could the far more affordable option in relativity to housing prices.

Stable rates

Another good reason to look at houses for rent is the fact that rates have been mostly stagnating. Australia’s combined capital cities experienced a 0.7 per cent decline in rates over the September quarter, with every single one recording negative change.

Melbourne has lead the charge in rental growth over the year, showing a 2.1 per cent rate increase in the year to September but clearly, this figure is hardly something to worry over.

With stable rates that are lower than property prices would have them, anyone who may struggle with mortgage repayments should consider renting instead.

What happens when your landlord decides to sell?

What happens when your landlord decides to sellWhen the owner of your rental property decides to sell, communication between you and you property manager becomes paramount.

The first and most important piece of advice is don’t panic.

The sale of a landlord’s investment property doesn’t necessarily mean you will have to move.

In fact, well-presented properties with a tenant and lease in place are usually more appealing to investors than homebuyers, so the chances are high that a new investor will buy the property and nothing will change from your perspective.

The first and most important thing is to cooperate with your property manager about access arrangements concerning inspections and photography.

Next, you might even like to talk to your property manager about advice on how you could buy the property. Many landlords jump at the opportunity to discuss a sale to a tenant.

Signing a new lease also improves investor appeal so you can ask about that too.

Landlords blind to the benefits of pets

Landlords blind to the benefits of petsFirst National Real Estate chief executive Ray Ellis says that with record low rental yields nationally, property investors should open their eyes to the benefits of renting their investment properties to tenants with pets that have good references.

‘Capital growth has far outpaced rental growth nationally and this has forced yields to record lows. Yet many investors refuse to consider applications from tenants with pets, despite research that shows some are willing to pay slightly more rent and that they tend to stay longer’ said Mr Ellis.

‘The reality is that when landlords agree to flag their rental property as Pet Friendly with First National Real Estate, the chances of getting their vacant property leased quickly grows exponentially’.

The Petcare Information Advisory Service (PIAS) indicates 66 per cent of Australian families have pets so the majority of our 23.13 million population values pet ownership. Yet just 2.1 million families or 9 per cent of the population are able to rent properties with their pet.

The challenge of finding rental properties where landlords will consider pets leads to some 65,000 pets being surrendered to the RSPCA on an annual basis. Unfortunately only some 22 per cent of animals surrendered are able to be re-homed.

‘Because tenants understand how difficult it can be to rent a property with their pet, many are prepared to discuss the amount of rent they’ll pay. They often have references from previous real estate agents and landlords that make their application more attractive’ said Mr Ellis.

‘Our Property Managers can take additional steps to protect a landlord’s interests such as adding specific clauses to the lease, requiring annual steam cleaning of carpets, and in some states, negotiating a pet bond. Good tenants understand these are realistic trade-offs that help their landlord to feel more confident about their intentions’.

On any given day, about 5.7 per cent of First National Real Estate’s vacant rental properties are available through the network’s Pet Friendly Rental Search feature, with the most Pet Friendly states being Queensland and Tasmania – equally offering 12.5 per cent of vacancies as Pet Friendly. The network assisted Dr Emma Power’s University of Western Sydney 2013 research – Renting with Pets in Sydney – and has cooperated with the PIAS in the creation of educational booklets and the promotion of socially responsible pet ownership. It encourages landlords to discuss their concerns with Property Managers and weigh the merits of all applications.

What to do with your property when you retire

What-to-do-with-your-property-when-you-retireRetirement is the beginning of a whole new stage of your life. But long before you decide to leave the workplace behind, you should consider what retirement will mean for you and your property. Here are a list of points to think about before you cash that last cheque.

Downsizing?

By the time you are thinking about retirement, it’s likely that will have substantial equity in your home. You might even own the house outright. Selling the family home is one solution to free up some money. It can be invested in a whole range of things – from shares to term deposits, to superannuation. But before you put the house on the market, think about what assets this leaves you with.

Your pension payments often depend on how much these assets are worth, so if you decide to vend your property in favour of something smaller any money you have left over could be counted as income.

Alternatives

The prospect of leaving all those memories and friends behind may seem unappealing, but there are a number of alternatives to selling up. Instead, you might decide to stay put. You could adapt the house into a dual occupancy, in which case you can live in one half and sell or rent the other. There’s also the option of renting out some of the rooms – but this could have some implications for tax and pension payments, so make sure to seek financial advice before moving forward.

As well, think about doing some minor renovations – you may encounter health or mobility issues down the line, so making the home easier to navigate and keep up now will help keep your independence much longer. It could be as simple as an extra railing on the stairs or non-slip mats in the bathroom.

How to make your home more appealing for tenants

How-to-make-your-home-more-appealing-for-tenantsThe Real Estate Institute of New South Wales recently noted that while vacancy rates in their capital, Sydney, are stable, they also sit very low at 1.5 per cent in the inner city. However, not every city is able to experience this high level of tenant demand, which can make owning investment property a breeze. For example, South Eastern NSW now has vacancy rates of 5 per cent, which can make it a bit more difficult for property owners to make sure their homes are always tenanted.

This is a position that home owners anywhere can find themselves in, so let’s quickly look at some ways you can boost your home’s tenant appeal.

Set the stage

Attracting tenants is a similar process to selling your home permanently – only this time you have more criteria about who you let in! But to attract these people in the first place, staging is everything, just as in a regular sale.

It’s unlikely you will have many personal items about if its a rental, but previous tenants can leave items around – get rid of everything that might ruin that desirable blank canvas look for your home. Keeping the colour scheme neutral also allows people to envisage themselves there.

Carpet clean

It’s a tough job, but someone has to do it! Giving the carpet in your rental a thorough clean gives you an edge that others may not have. Because it often requires a professional clean to look new again, many people don’t undertake this step. Fresh carpet may mean fresh tenants!

Step up the curb

Grabbing the attention of tenants from the get-go is a must. This means cleanly cut lawns, perhaps a good flower bed, or if there is no green space, then a fresh coat of paint in eye-catching but neutral colours – think contrasts.

Get this together and you’ll ideally have tenants falling over themselves to get into your home!

- See more at: http://www.firstnational.com.au/media/australian-real-estate-blog/2015/January/How-to-make-your-home-more-appealing-for-tenants#sthash.dGEvympv.dpuf

First time renting? Here’s what you should know

First-time-renting-Heres-what-you-should-knowIf you’ve never rented before, it can seem like there’s a big learning curve. However, it’s important to keep on top of things – once you sign a lease, you take on many responsibilities to the landlord and the home. Whether you’re renting a house or apartment there’s lots of room for mistakes, but understanding the basic rules of renting can make your first time a positive learning experience for the future.

Know your stuff

Being aware of your rights and responsibilities as a tenant is one of the most important things when you’re renting. You don’t want to find yourself in any sticky situations further along the track, so understanding all the obligations contained in the tenancy agreement is crucial. If the lease says no pets, you’ll need to remember that when you have an urge later on to adopt a kitten.

That being said, there is often room for negotiation on certain issues so don’t be afraid to ask for advice if there is anything in the lease agreement you don’t understand – showing initiative and speaking up will help you learn and show the landlord or property manager that you are a responsible tenant.

Keep it together

One way to keep the relationship between you and the landlord as pleasant as possible is to make sure you stay on top of those day-to-day chores around the property. Basic duties like changing light bulbs and housekeeping are more than likely to fall on you, but these things vary from lease to lease. Double check the tenancy agreement, and always err on the side of caution and ask the agent or landlord if you’re unsure.

Before you move in, make sure the property is in a reasonable condition – you don’t want to be blamed for any damage that was already there! Photos are a great way to keep track. Keep these in case the landlord objects to returning your bond at the end of your tenancy. As well, make sure you keep important documents safe, and write down everything that happens between you and the landlord.

Be on time

Lastly, planning for deadlines and payment dates will avoid any unnecessary conflict with your landlord, real estate agent, or housemates. Never stop paying rent, even if the landlord doesn’t seem to be holding up his or her end – the consequences could be disastrous for you.

How to make yourself an ideal tenant

How-to-make-yourself-an-ideal-tenantIn today’s highly competitive property market, renting remains a popular option for many people. As a result, you’ll need to show your prospective landlord that you’re the type of tenant they are after.

Whether you’re renting for the first time or looking to move from an existing property, making the right first impression is essential.

Here are some top tips for moving yourself to the top of the list, which should help you secure the rental property of your dreams.

Be professional

If you ever get the opportunity to meet your prospective landlord, it pays to be professional. After all, they will want to know their investment is in safe hands.

This doesn’t mean you shouldn’t show any personality – strike the perfect balance, make the right impression and you can’t go far wrong.

Offer references

Many landlords will request references for their tenants, so it’s a good idea to get yours in order before you make a tenancy application.

This shows that you’re well-prepared and trustworthy – two traits that will stand you in good stead for getting the property you have your eye on.

Ask questions

Most people will have a whole host of questions they want to ask when they view a rental property for the first time, so make sure you’re not afraid to put yours forward.

This will show that you’re generally interested in the apartment, unit or house and that it’s not simply another one to tick off your list – even if in reality it is!

Be prepared

Would-be landlords could ask you any range of questions, which is why you’ll need to make sure you’re prepared to answer them.

Common queries include your employment history, where you’ve lived in the past and other data-specific information. Having all the details stored to memory can simplify the rental process.

3 things every landlord should know

3-things-every-landlord-should-knowRenting out a property? It can sometimes seem like the tide is against you, but don’t fret. The exact laws will vary, but as a landlord you have a number of general rights and responsibilities that you should be aware of. Here are three of the most important things to remember.

1. Taking bond

Bond is your No. 1 safeguard against any damage to your rental property. You should take a bond from your tenants at the beginning of a lease as a security deposit, and it generally gets lodged with a government agency to be held on your behalf. In the case that the tenant breaks your agreement, you can make a claim to take some or all of the bond. This usually applies to major damage, not just your everyday wear-and-tear scenarios, so have a clear idea of what damage was or wasn’t there before the tenant moves in.

2. Doing repairs

Your tenants are usually responsible for keeping the property clean and tidy, but it depends on what’s outlined in the tenancy agreement. Be aware of any legislation and regulations surrounding your responsibilities as a landlord because they can vary. In any case, the property should meet all health and safety laws, and be sure to respond to any major issues like electrical mishaps or leaking taps immediately – otherwise you could end up with a large repair bill or in front of a disputes tribunal.

3. Should I stay or should I go?

You might own the property, but this isn’t license to come and go whenever you please. Respect your tenants’ privacy and personal items and your relationship should stay pleasant – a happy tenant equals a happy rental - but keep in mind both you and your tenants have distinct responsibilities to each other. You might have the right to enter the property every now and again, but it’s polite (and generally obligatory) to inform tenants when you are going to drop by for a routine inspection or to fix something.

Abiding by the general rules of renting will help to avoid problems, as well as making the experience a lot more enjoyable – for both you and your tenants!

3 reasons to ditch the rental for your own home

x_0_0_0_14100690_300Being a tenant is a reality for most Australians at some point or another in their lives. From the early days of picking flatmates to settling down and finding the perfect apartment or home to rent, you may be a tenant for some time.

However, the time often comes when you wonder whether home ownership is a better option. Sure, you’ll need to take responsibility for regular maintenance and repairs, plus you’ll need to keep on top of your mortgage repayments. That said, the freedom that comes with owning your own home and building up equity in this significant asset can be rewarding.

Buying a home is not a decision to make lightly, so consider all your options carefully and be sure to take a careful analysis of your finances. Here are three reasons why it might be time to ditch the rental.

Use the First Home Owner Grant

Australia’s First Home Owner Grant scheme helps individuals purchase their first property.

It’s a financial incentive that helps mitigate the impact of GST on home ownership, by providing a one-off grant to those who meet the eligibility criteria, explains the federal government.

The amount provided varies from state to state, so have a chat with your local real estate agent or lender about the options available to you.

Benefit from capital growth

You might adore your current suburb, but there’s no harm in investigating nearby suburbs if you’re thinking about buying.

That’s because capital growth projections vary from suburb to suburb, city to city and state to state.

If an area has large-scale infrastructure projects in the pipeline and has experienced favourable capital growth in recent months, it could be a good idea to buy. You could benefit from future capital growth, allowing you to tap into your equity in future years to renovate, upgrade or even buy an investment property. If you’re a tenant, you don’t reap the benefits of capital growth.

Create your ideal home

Sure, you can decorate a rental property with furniture, rugs and colourful vases.

However, painting the walls, renovating the kitchen and sometimes even hanging artwork is a no-no if you’re a tenant rather than a homeowner.

If you’ve got a particular idea about the design aesthetic for your home or are a keen on a spot of DIY, you’ll have a lot more freedom to decorate your own house as you please, compared to living in a rental.

Make the right impression at a rental inspection

Top-tips-for-presenting-yourself-at-a-rental-inspectionRental properties are in high demand at the moment, which is why it’s so important to ensure you make a good impression when you attend an inspection.

After all, a landlord will want to make sure they can trust you to keep their investment in good condition and make your payments on time.

Here are some top tips to get you started and hopefully help you secure the rental property you’ve got your eye on.

Presentation

How you present yourself to your would-be landlord is important, so think carefully about how neatly you’re turned out.

It might not be a good idea to attend in a sweaty gym kit or your dirty work clothes – but then again you don’t have to go to the other extreme of being suited and booted. Just make sure you look presentable!

Be yourself

It’s essential to be yourself when you attend an inspection. This will help the landlord or property manager make the right decision based on their requirements.

Avoid making up stories and anecdotes to make yourself appear more likeable. If you’re not chosen then don’t take it personally – your dream rental could be just around the corner.

Show respect

A landlord is likely to have put a large amount of money into their property investment, so it’s essential to show it some respect.

Just small gestures like wiping your feet when you enter the front door can all help make a positive impression.

Show an interest

If you’re seriously considering renting a property, make sure you show an interest in it. Your landlord might not be good at reading subliminal signals, so be vocal about your enthusiasm.

Asking questions will show you’re genuinely interested and also give you the opportunity to learn more about the property you could potentially be living in.