The Real Estate Institute of South Australia recently hosted a meeting attended by about 70 Property Managers who work in the south of Adelaide. Their comments about the state of the industry were very telling and worth repeating.
They all repeated what we have said previously that vacancy rates have increased but they also emphasised that lease breaks are now so much more common.
Today spelt the end of a long saga for a questionable property that we have managed. It was sad for us but also very instructive. A Property Manager’s opinion of a property should never affect the way the agency deals with that property; they should always do their very best for it. In the case of this property in question we agreed with the owner and liked the property but in the end the market said, NO!
In property management we naturally set out to get quality tenants and to mazimise the return on a property for a landlord but for this property there were too many obstacles.
Every house has pluses and minuses but the cemetery across the road added to all the other minuses to become the straw that broke the camel’s back.
Every election is preceded by uncertainty during the campaigning of the parties then life gradually settles down again to a slightly adjusted status quo. Real estate is one of those things in life that thrives in certainty.
During one of the longest election campaigns Australia has experience we at Adelaide South Property genuinely found it difficult to comment on all of the toing and froing on the different policies of the parties. There were daily changes on some policies that made it too complicated to explain only to find they might be reversed within the next 24 hours news cycle.
There was so much talk about changing the rules behind Capital Gains Tax concessions, Negative Gearing and Superannuation such that it would be surprising if the average person knew where they stood now. At the risk of being over simplistic basically nothing changed except for Superannuation.
Superannuation is one of those policies close to the heart of any investor which can only now be commented on with any confidence.
Quality tenants are becoming harder to find and are taking longer to find. One of our landlords with a quality 2 bedroom unit in Toorak Gardens, Adelaide, had to reduce their rent by $20 and it took 4 months before they got their ideal tenant! The market has not been so bad for years.
A Property Investment Seminar, WEDNESDAY 27th APRIL 2016, using the talents of a Financial Planner, Tax Accountant, Mortgage Broker and Investment & Development Experts.
We will show you some amazing Australia-wide market research that can put you in a position of strength that you never dreamed possible. Our main focus is education. We will not be spruiking properties for sale.
Investment seminars can be a dime a dozen but we believe that this will have something more to offer. What is at stake is your future; your financial well being and possibly your whole retirement. Continue reading
If you note that ‘Shui’ is pronounced ‘Sh way’ then the title of this article may start to
make sense as you read on.
Feng Shui is the 3,500 year old Chinese philosophy of harmonising the forces of wind and water with the environment which can include buildings, in fact Feng Shui literally means Wind-Water. It is said the often tortuous path followed by the Great Wall of China was determined by the old Feng Shui masters.
As a builder or architect or if you are just thinking about selling your home it’s not important whether or not you believe the principles of this philosophy but whether or not you wish to sell your home to people who do.
But it doesn’t have to be all or nothing … or tortuous.
GST INCREASE OFF THE TABLE – FOR NOW
There has been a lot of talk in recent months about a possible increase to the GST from 10% to 15% but with a backlash from the electorate and even a revolt of the Liberal back benchers Malcolm Turnbull finally announced in Parliament Question Time on 8 February that it was all but off the table.
The original idea was that the GST would be increased but personal and company tax would be reduced and low income earners would be compensated in other ways for the extra GST they would have to pay. But most of the electorate believes that the average person would end up paying more whilst the big end of town would get tax reductions. A Newspoll published in the Australian on 1 February found that 54% of voters were against raising the GST whilst only 37% were for.
This is the question someone asked me as I showed them through an empty house I had for sale!
It might sound reasonable, innocence, sensible, stupid or quirky but what it really shows is that without furniture a house can be anything and demonstrates graphically that most people find it difficult to visualise the potential of an empty canvas. What it means for Vendors and Real Estate Agents is that marketing a house has to accept this quirk as reality and he who fails to do so could be throwing money way.
Empty houses will sell but probably for many thousands of dollars less than if properly decorated.
With this in mind it makes the average cost of hiring a Property Stylist of about $1,500 money well spent.
Wendy O’Connor from Property Presentation Plus did another master work for our recent sale at Huntfield Heights. The before and after photos are very telling but they don’t give much of an indication of how much work went into this; all the discussions with the owners, the colour schemes & furniture options considered, advice on where to spend money and what not to spend on to create the WOW factor that got one of the highest prices in the area.
But have a look at the photos anyway and you might get a bit of an idea. Continue reading
BIG CHANGES COULD BE ON THE WAY
The Chinese stock market suspended trading on 4th January after suffering big losses that triggered automatic shutdown mechanisms setup by the Chinese government to steady the rapid devaluation of the Yuan. Then only 3 days later on 7th January it happened again with a 7% loss.
Stock markets around the world reacted with similar drops including a 2.3% drop on Wall Street and the Australian stock market lost $33 billion.
ADELAIDE SOUTH PROPERTY IS HERE
From the 1st November this company has been trading in the name of ADELAIDE SOUTH PROPERTY. The Lin Andrews Real Estate Morphett Vale franchise ended as we could no longer see any advantage for this company or its clients to continue in that association. We have therefore decided to go in a new direction which is of greater benefit to our landlords, tenants and vendors. Nevertheless the parent company of Danster Pty Ltd with ABN 80 113 334 797 is unchanged whilst the superficial trading veneer has undergone a makeover.
In our last Newsletter we said this is the next phase in our evolution however we emphasised the same staff members are still here and the way we do business remains the same but now we are sporting a renewed agenda.
The ultimate goal of real estate companies may vary in the detail but most see the measure of their success in the number of sales they have listed and the number of properties they have under management. Continue reading