In this edition: How long will it take for your prop-erty to rent? Common Traps With Rental Proper-ties That Can Cost Landlords Thou-sands Buying or Selling? Right Advice is Essential

July 2013

Meeting Your Obligations with Property Maintenance 10 Tax tips for Your Rental Proper-ty A Selection of Properties Recently Leased Quote Calendar of Events

Wow, the end of financial year

has arrived, and what a wet

start to the new year! We have

attached your end of financial

year statement as well as

your June monthly statements

here and hope this makes it

easier for your accountant.

Just a quick reminder: if you

need further copies of any of

your previous statements you

can download them anytime

from onlineagent.com.au. If

you'd like any assistance with

this please just let us know.

Plus if you need an appraisal on

your property to keep pace of

the yearly value please get in

contact and we will be more

than happy to arrange that for

you.

This week Helen enjoys a well

deserved week off with her fam-

ily while the rest of the team

holds the fort. We look forward

to her return next Monday. Of

course as she will be missed

but it's still all stations go at the

office.

I am looking forward to the

pleasure of spending a week

with my boys, relaxing and en-

joying them. We’re often so

busy with the renting and selling

of property that it's been won-

derful to revel in some quiet

time.

Wishing you health, wealth, and

a fabulous new (financial) year,

Christina

End of financial year statements and updates

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

How long will it take for your property to rent? That of course depends on the time of the year so here are the latest statistics for May.

BRISBANE STATISTICS The Market

Source: rentfind.com.au

Brisbane, QLD May 2013 Annual Change

Median Weekly Rent - House $399 2.3% increase

Median Weekly Rent - Unit/Apartment

$370 1.4% increase

Days on Market (Avg) 31.5 6.5 decrease

Days Vacant (Avg) 21.9 6.8 decrease

Common Traps With

Rental Properties That

Can Cost Landlords

Thousands

There are five common traps

investors can fall into when

renting their property to family,

friends or loved ones, accord-

ing to Terri Scheer Insurance.

The landlord insurance spe-

cialists warned that while it’s

great to have people you know

and trust in your property as

opposed to strangers, there

are a few things to look out for

to ensure your investment re-

mains profitable.

The first mistake investors

commonly make in this sce-

nario is not having a proper-

ty manager, says Terri

Scheer Insurance manager

Carolyn Majda.

"Some of the responsibilities

that landlords have, such as

chasing up late rental pay-

ments, can be awkward when

dealing with someone you

know well," Ms Majda said.

"Hiring a property manager to

professionally manage the

property can help to ensure

that your role as a landlord

doesn't damage your personal

relationship with your tenant.”

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

The second problem that Ms

Majda outlined was that inves-

tors can be too lenient when

rental payments fall behind.

"It can be easy to turn a blind

eye if a family member or

friend is late on their rent, or

promises that they will pay as

soon as they can," she said.

“However, if a tenant defaults

on rent, certain notices must

be issued. If the landlord is lat-

er required to make an insur-

ance claim, the claim may be

reduced if there was a delay in

sending the appropriate infor-

mation.”

Landlords also need to think

about how they will manage

financially if their rent is halt-

ed.

Thirdly, Ms Majda

said property inspections

are sometimes avoid-

ed before the tenant moves in

and every three to four months

while the tenant is occupying

the property.

"You may not feel it's neces-

sary to conduct regular proper-

ty inspections if you know the

person renting your property,"

she said.

"If a tenant is injured at the

property as a result of required

maintenance that is unbe-

known to the landlord, it could

potentially lead to a costly le-

gal liability claim."

The fourth mistake that inves-

tors commonly make is failing

to have a formal tenancy

agreement.

No matter how much you trust

your tenants, the terms set out

in a tenancy agreement can

help to resolve some disputes

that may arise regarding the

tenancy in the future.

Finally, investors some-

times don't see the need to

have landlord insurance in

such scenarios.

“Even the most trustworthy

tenant is able to damage a

property, whether accidental

or otherwise,” she said.

“Uninsured landlords really

need to think about how they

would manage financially if

they were faced with thou-

sands of dollars worth of dam-

age to their rental property, or

were unable to re-let their

property while repairs were

being made.”

Source : Smart Property Invest-

ment (21 June 2013)

Buying or Selling? Right

Advice is Essential

Conveyancing is the legal

transfer of a property’s title

from the seller to the buyer. It

is important that buyers re-

search who they wish to use

for conveyancing when they

have a Contract of Sale on a

property.

The REIQ recommends the

use of a qualified solicitor to

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

the best possible price and

contractual terms for the sell-

er. The agent will receive a

commission from the seller

when the property is sold.

A solicitor will advise on the

fairness of the proposed con-

tract and whether or not to

sign the contract as it stands.

A solicitor may also suggest

the inclusion of special condi-

tions in the contract.

The REIQ always recom-

mends that buyers contact the

Queensland Law Society for

details of qualified solicitors to

conduct the conveyancing for

their property purchase.

Written By : Pamela Bennett

(REIQ Chairman)

Source : www.reiq.com.au (28

May 2013)

undertake the conveyancing

process.

Using a solicitor is important

as they understand the laws

and procedures involved with

facilitating a property transfer

including, payment of stamp

duty, conducting searches and

attending to mortgage related

matters. Using a solicitor who

understands the process pro-

vides peace of mind when

making what may be the larg-

est single financial transaction

of your life.

Costs associated with convey-

ancing include title searches,

transfer duty, registration fees

and solicitor’s professional

fees.

Searches undertaken as part

of the conveyancing process

will usually include zoning,

rates and outgoings and body

corporates record searches

where the property is a unit.

Local government searches

have become important in the

conveyancing process to de-

termine how an area will de-

velop in the years to come.

They ensure major changes

like new freeways and major

road upgrades are not planned

for the backyard of the proper-

ty you are purchasing.

Searches for zoning and titles

can also determine whether

the property has any re-

strictions such as adverse

planning, demolition orders,

outstanding taxes or encum-

brances on the title (for exam-

ple, easements or caveats).

Most of these searches are

standard in the conveyancing

process but are often over-

looked when buyers elect to

do the conveyancing them-

selves.

It is important to understand

the different roles that real es-

tate agents and solicitors play

in a residential real estate

transaction.

A real estate agent, as the

agent of the seller not the buy-

er, is responsible for obtaining

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

Meeting Your

Obligations with

Property Maintenance

Lessors are encouraged to be

aware of their health and safe-

ty obligations when it comes to

the repair and maintenance of

a rental property, in light of re-

cent high profile cases.

In 2010, the death of an infant

at a rental property in Central

Queensland highlighted the

need for lessors to be aware

and act on their safety obliga-

tions.

RTA General Manager Fergus

Smith said lessors should con-

sider having a procedure in

place for when they are asked

to undertake repairs at their

rental property.

"Lessors can meet their safety

obligations by undertaking a

few simple but important

steps," Mr Smith said.

"Ensure you have the property

regularly inspected, respond

quickly to requests for repairs,

and keep a record of mainte-

nance requests and the date

and details of the repairs or

actions that were taken."

Mr Smith said the lessor/agent

is responsible for keeping the

property in good condition and

fit for the tenant/resident to live

in.

The tenant/resident is respon-

sible for looking after the prop-

erty/room and keeping it clean

and free from damage as well

as notifying the lessor of any

maintenance concerns.

Find out who is responsible

for specific household repairs.

Next month Open house will

feature a story on emergency

repairs.

The RTA will host a webinar

on property maintenance and

repairs soon. Keep an eye on

the Education and out-

reach page for details.

Source : rta.qld.gov.au (5 June

2013)

10 Tax tips for Your

Rental Property

Over 1.8 million people

claimed more than $38.5 bil-

lion in rental deductions in

their tax return last year. With

June 30 rapidly approaching, it

is time to do some urgent tax

planning. Here are some ex-

cellent tips for you to action

and maximise your tax refund

from your rental property this

year.

1. Initial repairs

A common mistake is to claim

initial repairs or capital im-

provements as an immediate

deduction. Initial repairs to rec-

tify damage, defects or deteri-

oration that existed at the time

of purchasing a property are

generally considered capital in

nature and not deductible,

even if you carried them out to

make the property suitable for

renting. Depreciation could be

claimed on this expenditure as

a capital works deduction over

40 years.

2. Prepay interest

If you are expecting that you

will have a lower income next

www.propertyrentalsbrisbane.com FREE Information Guide For Landlords & Tenants

year (due to factors such as

maternity leave or redundan-

cy) then why not prepay inter-

est for up to 12 months in ad-

vance before year end on your

rental property and reduce

your higher income this year.

3. Depreciation schedule

If your investment property

was built after 18 July 1985

then it is definitely worthwhile

organising a depreciation

schedule from a quantity sur-

veyor. You should be able to

recoup their fee in your first

tax return as deductions can

be in the thousands each year.

4. Travel to see your proper-

ty

The old wives’ tale of claiming

two trips per year is hogwash.

You can claim as many trips

as you like so long as the pur-

pose of the trip is to genuinely

inspect the property and you

don’t tag a family holiday onto

it.

5. PAYG Withholding Varia-

tion

Negatively gearing a property

and struggled with cash flow

over the last 12 months? Don’t

want to wait all year for a juicy

refund again next year? Then

why not arrange a “mini-tax

return” called a PAYG With-

holding Variation Application

and have less tax taken out of

each pay packet.

6. Foreign investment prop-

erties

The ATO is also cracking

down on taxpayers with prop-

erties overseas as they get

more data each year from oth-

er tax jurisdictions. Make sure

that you disclose any income

that you receive as you are

taxed on worldwide income as

an Australian tax resident.

These properties can be po-

tentially “negatively geared” as

you can claim deductions such

as interest, repairs, rates and

insurance on these properties.

7. Keep your receipts

Each year the ATO makes

contact with many thousands

of taxpayers with rental prop-

erties. With the ATO increas-

ing their audit activity this year

yet again it is important that

you can explain and justify

your claim. The ATO motto is

no receipt = no deduction so

you could be costing yourself

$$$ by not keeping those

dockets!

8. Minimise capital gains tax

(CGT)

If you are trying to sell your

property and about crystallis-

ing a nice capital gain or two

then consider exchanging con-

tracts after 1 July to defer tax

for another year. And remem-

ber that if you hold your invest-

ment property for more than

12 months you reduce CGT by

half.

9. Get a great accountant

Avoid paying too much in tax

or leaving yourself to a visit

from the taxman. Great ac-

countants are like surveyors ...

they know where the bounda-

ries are. And their fees are tax

deductible!

10. Just do it!

You now have got some great

tax tips, it’s time to take action.

Times are tough so every dol-

lar saved counts.

This information is of a general

nature only and does not con-

stitute professional advice.

You must seek professional

advice in relation to your par-

ticular circumstances before

acting

This information has been

sourced from

www.spionline.com.au as at 1st

July 2013.

Author Adrian Rafferty

15 July Mid Month Accounting 3 August End of Month Accounting

A Selection of Properties Recently Leased

Bardon House $520p.w.

3 bed, 2 bath, 1 car accommodation

Quote

“Vision without action is daydream. Action without vision is nightmare”

-- Japanese Proverb

Hamilton Unit $360 p.w.

1 bed, 1 bath, 1 car accommodation

RE/MAX Profile Real Estate 141 Boundary Road TEL 07 3510 5221 FAX 07 3876 5544

www.profilerealestate.com.au Bardon QLD 4065 TEL 07 3510 5227 Helen helenbryan@remax.com.au

www.propertyrentalsbrisbane.com PO Box 388, Paddington, 4064 Chelsea profileassist@remax.com.au

Errors & Omissions: These details have been prepared by us on information we have obtained and while we trust it to be correct, is not guaranteed by us and you should rely on your own enquiries.

Spring Hill Unit $535 p.w.

2 bed, 2 bath, 2 car accommodation

Calendar of Events