A new report has revealed the number of Australian homes generating a resale profit has declined, with national resale gains the lowest they’ve been since October 2013.

According to CoreLogic’s quarterly Pain and Gain Report, 89.8 per cent of Australian homes sold throughout the second quarter to June 2018 (2Q18) enjoyed resale profit gains, totalling $15.7 billion.

However, national resale gains were down from 90.1 per cent on the previous quarter and 91.1 per cent over the second quarter of 2017. The share of retail gains over the quarter was the lowest it has been since October 2013.

Accordingly, over the June quarter, 10.2 per cent of residential properties resold at a price lower than the previous purchase price, with total realised gross resale losses of $469.4 million.

Across Australia’s capital cities, resale gains dropped to 90.6 per cent in the quarter to June 2018, falling from 91.3 per cent in the previous quarter and 92.7 per cent year-on-year. Resale gains in 2Q18 were the lowest they’ve been since March 2013.

Hobart and Canberra were the only two capital cities in which the share of resales at a loss was lower year-on-year.

According to the report, the majority of Australia’s $15.7 billion in resale profit was generated by Sydney (32.0 per cent) and Melbourne (27.4 per cent), which CoreLogic said reflected both the higher housing cost and strong property value growth in each city over recent years.

Sydney and Melbourne accounted for 11.2 per cent and 7.9 per cent of the total nationwide resale losses over the quarter.

Conversely, the proportion of houses resold at a profit across the combined regional markets was reported at 89.7 per cent in 2Q18, higher than the 89.5 per cent at the end of the previous quarter and the 89.6 per cent over the second quarter of 2017.

Reflecting on the data, CoreLogic head of research Tim Lawless noted, “Capital city properties being resold remain more likely to sell for a profit than those in regional markets, but over the past three months the gap has narrowed due to a decline in resales at a loss in regional markets and an increase across the combined capital cities.”

The research also revealed that houses were more likely to sell at a gross profit than units, with 91.5 per cent of houses and 85.2 per cent of units recording a gross profit resale.

However, both houses and units recorded a fall in profit-making resales over the quarter, with resale gains for houses down from 92.6 per cent year-on-year, and resale gains for units down from 87.3 per cent year-on-year.

“Houses consistently record a higher proportion of resales at a profit than units,” Mr Lawless continued.

“This may be attributed to the underlying land value of detached houses, which is a significant part of the overall value. But it’s also because unit markets can be more prone to oversupply than house markets.”

The research also found that investors were more likely to resell their properties at a loss than owner-occupiers. Over the second quarter of 2018, 9.8 per cent of owner-occupied properties sold at a loss compared with 10.1 per cent for investor-owned properties.

According to CoreLogic, over the June 2018 quarter, houses that resold at a loss had typically been owned for 6.6 years, while those resold at a profit had been owned for 9.2 years. In addition, units resold for a loss had typically been owned for 6.9 years while those resold for a profit had been owned for 7.8 years.

CoreLogic also reported that properties being resold at a loss in the major mining regions remained at heightened levels, with six regions linked to the resources sector recording at least 40 per cent of all resales at a loss over the quarter.

VIEW THE PAIN AND GAIN REPORT HERE Pain and gain report june qtr released september 2018 (002) by @GillandDebello #australia #brisbane https://www.slideshare.net/GillandDebello/pain-and-gain-report-june-qtr-released-september-2018-002 via @SlideShare

Brisbane is really displaying its resilience, partly thanks to having a sustainable growth rate over the past five to 10 years. We haven’t seen the same wealth creation effect as in Sydney and Melbourne, but the silver lining is we haven’t seen housing affordability deteriorate and now the housing market nationally is in a downturn but Brisbane isn’t showing that trend.

#Property #Investor #Landlords #depreciation article of interest

Read my Sep 20 Newsletter ‘Good morning’ https://nzzl.us/UsHL48o

 

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Brisbane is really displaying its resilience, partly thanks to having a sustainable growth rate over the past five to 10 years. We haven’t seen the same wealth creation effect as in Sydney and Melbourne, but the silver lining is we haven’t seen housing affordability deteriorate and now the housing market nationally is in a downturn but Brisbane isn’t showing that trend.

img_20180913_115805843418898.jpgBrisbane housing market ‘doing a Bradbury’ with house and unit values set to rise – realestate.com.au
http://mvnt.us/m861440

New figures from property valuation firm SQM Research reveal rental vacancies in the Queensland capital fell for a sixth straight month in August to 2.8 per cent — down from 3.4 per cent a year ago._Rentals disappearing as Brisbane moves towards landlord’s market – realestate.com.au
http://mvnt.us/m861434

With a federal election around the corner, potential changes to negative gearing and capital gains tax concessions could be weighing on investor sentiment

Values increased in Brisbane (0.1%), Adelaide (0.5%), Hobart (0.1%) and Canberra (0.4%).

Brisbane Brisbane Brisbane Location Location Location

Posted in Australia, Brisbane, ECONOMY FINANCE BUSINESS LJGREALESTATE RENTALS PROPERTY SALES PROPERTY INVESTOR PROPERTY MANAGEMENT, family, Foreign Investment, LJ Gilland Real Estate Pty Ltd, ljgrealestate, Maintenance Renovating tips Construction Home Staging Property Sales Property Management Property Investor Builders Developers Rentals Sales Tenance, Negative Gearing, property investor, propertymanagement, Queensland, Real Estate, rentals, rentals sales, sales | Tagged , , , , , ,

Rental collection explained

FORTUNEBUILDERS
Rent Collection Explained
Sep 14, 3:00 AM
Key Takeaways

Investors should seek to establish a reliable system for rent collection to ensure the process runs smoothly and efficiently.
There are a number of ways to collect a rent payment. Be sure to find the process that works best for your business.
When it comes to rent debt collection, there are several avenues you can pursue to ensure rent is collected.
For many real estate investors, rent collection equals revenue, but for some it can also mean dealing with the hassle of a poorly executed rent collection process. Rent collection does not have to be stress inducing; if anything, it should be yet another streamlined aspect of your real estate investing business. Fortunately, there are a number of options available to investors and tenants to ensure the rent collection process runs as smoothly as possible. Keep reading to familiarize yourself with the different rent collecting options out there and find out which one is the best for your business.

Rent Collection 101
After you set up a tenant screening process and establish who will be renting your passive income property, it is a good idea to set up a structured system for collecting the rent. There are a variety of tools you can rely on, ranging from door-to-door collection to an online rent payment system. The perfect rent collection system will depend entirely on you and your tenants’ preferences.

If you decide to work with a property manager, they may have a system from previous experiences that can be adapted for your property. If you are new to investing, relying on their expertise may help simplify the rent collection process. Additionally, depending on how many properties or units you are renting, you may also be able to directly ask your tenants how they prefer paying rent. For example, if you rent a property to a single family you may find it easy to simply ask how they prefer to submit the rent each month.

Rent collection depends entirely on your preferences as an investor. There are a number of options, and it is crucial you identify which one works best for the way you want to manage your property and investing business. Remember, there is no “one size fits all” formula on how to collect rent from tenants. A good plan of action for investors looking to establish a system for rent collection is to survey the choices available to them, and decide based on their preferences. Here are a few options for collecting rent:

Collect cash in person from your tenants by going door to door once a month.
Have tenants mail or drop off their rent to you or your office once a month.
Set up automated clearing house payments (ACH), which is an online banking system that can be set up between bank accounts.
For tenants who aren’t comfortable paying rent online, you can set up a system called PayNearMe, which allows tenants to pay cash at a local store, after which the money will be sent to you.
There are also numerous services that will enable tenants to submit an online rent payment each month.
[ Thinking of buying a rental property? Get a FREE downloadable copy of our “Essential Contract Pack For Cashflow Real Estate Investors” ]

Cash Is King
One of the ways you can collect rent each month is by going door to door to pick up cash from your tenants. This will allow you to have all of your rent money at once, and can give you a reason to check up on your property from time to time to see how it’s performing. This option will work best for investors with a mid-to-low number of units, as it can become time consuming to go door to door to several units.

It is important to mention that picking up large amounts of cash once per month can be risky. If you are picking up rent in cash at a designated time, people may become familiar with your routine which could lead to potentially dangerous consequences. Be cognizant of your surroundings and make sure you have a clear route in mind. As I said before, this option works best for investors with a low number of units or properties.

Drop Off Or Mail In
If the idea of picking up rent does not appeal to you, there is an obvious solution: have your tenants either mail in the monthly rent or drop it off to you. You can have them mail it to your home address or place of business, depending on which is more convenient for you. If you have a large number of tenants, this solution can enable you to have the rent brought directly to one place. Having tenants drop off or mail in their rent can save you time, which is often crucial for investors.

On the other hand, there is an argument for not disclosing your personal address to tenants. As a business owner, you need to determine the boundaries you are going to set between you and your tenants. If the idea of having rent mailed or brought to your home or office does not sound appealing to you, you can simply set up a business P.O. box in a neutral location. Additionally, you can clearly communicate to tenants that maintenance requests or other comments will not be handled during rent drop off times.

Automated Clearing House
An automated clearing house, also known as an ACH, is a rent collection service that allows banks to communicate and send or transfer money from one account to another. It can be thought of as using an e-check. For example, if you have automatic payments set up on your internet bill, chances are your provider is enrolled in some kind of automated clearing house processor. This system is convenient and efficient for landlords, as it allows money to be sent directly to the account they set up to receive payments.

There are some initial costs to setting up an ACH. In order to establish this system, you will need to go through your local bank or financial institution to set it up. There may be one-time or recurring fees involved in enrolling in the service. Investors seeking to make use of this system may want to consider who will be responsible for the recurring fees, whether it be the landlord, tenant or both. If you have a small number of units, a recurring monthly fee and charge per transaction may not make the most sense. However, for landlords and investors with mid to high number of units, this system can offer several perks.

“PayNearMe”
This is a lesser known option, but as an investor it is important to know all of the options available to you, and how to use them. PayNearMe is a service which allows tenants to bring cash into a local store, such as a convenience store, and pay their rent using a unique card. You can receive immediate notifications of rent being paid, and have the money deposited directly into your bank account. This outlet offers a lot of flexibility to tenants, as they will not be required to have a bank account or go through online payment options.

PayNearMe can provide options for tenants who are hesitant to rely on online rent collection or mailing in monthly rent. However, there is a small fee for using PayNearMe that tenants will be required to pay at the time of payment. For investors, transactions using the service are free, although there may be some set up costs similar to an ACH. This opportunity is perfect for investors who do not want to facilitate cash transactions; it is also a great system for those who want to receive a notification of rent payment immediately rather than waiting a few days for the mail or a personal delivery.

Online Rent Collection Services
Online rent collection is becoming an increasingly popular option for tenants and investors, and for good reason: it’s convenient. Paying rent online enables your tenants to submit their rent payments through an online platform, which will then be transferred to you. The reason so many investors rely on this system is because it eliminates the need to go door to door or deal with the potential hassle of collecting monthly rents yourself. Additionally, paying rent online is often convenient for tenants as well because of the simplicity of the process.

There are a number of online services you can work with to receive rent payments online, allowing you to shop around and find the platform that works best for you and your renters. Here are just a few of the online rent collection services that may appeal to you:

TurboTenant: This service is free for property managers and allows tenants to pay through an e-check. The money will be deposited straight into your account within two days.

RentPaidOnline: Through this portal, tenants can set up either a one time payment or recurring payments using an e-check, credit card or prepaid debit card. This system will also allow you to receive maintenance requests online.

PayYourRent.com: Payments can be made through e-check or credit cards using this site, with an option for cash payments coming soon. What’s unique about PayYourRent.com is that it offers tenants the option to pay their rent over the phone, as well as online.

eRentPayment: Investors and property managers rely on this service for its wide variety of features. In addition to allowing online rent payments, it also can help you put tenant screenings, applications, maintenance requests and more on one platform.

Avail: Using avail allows you to set up rent due dates, late fees and security deposits online. The features also include reminder emails for tenants and recurring payment options.

Rentigo: For investors looking for a rent collection app, Rentigo is a great place to start. This platform accepts e-checks and cards from tenants, and funds will appear within two days of processing.

ClickPay: Yet another online rent collection tool, clickpay is straightforward and simple to use and accepts credit cards, e-checks and paper checks as payment.

The above list is not an exhaustive collection of options; however, it should give investors looking to rely on online rent collection payments a good jumping off point. As you shop around for an online rent collection platform, keep in mind the specific needs of your business. Do you want to be able to address maintenance requests online? Is it important to you that there is a communication portal for tenants? The best advice I can offer is to choose the system that is best for your business right now, and periodically reevaluate to ensure your needs are met.

How To Collect Unpaid Rent After Tenant Eviction
Rent debt collection is a topic that leaves a lot of passive income investors frustrated, and rightfully so. No one wants to deal with tenants who are continuously late on rent payments or refuse to pay. If you find yourself in a situation with renters who refuse to pay rent and have consequently been evicted, there are several things you can do to ensure you are paid the money you are owed.

The first and most obvious step is to deliver a late rent payment letter. This will formally let the tenant know money is due, as well as the past due date. You can also use the security deposit towards the missing rent. If you find yourself in the midst of a stickier situation or the security deposit does not cover the missing rent, you may have to escalate the situation by taking legal action. Depending on the state in which you live, you may have to go to a small claims or civil court.

When it comes to rent collection, investors should look for a system that is both efficient and streamlined. It should be user-friendly for both landlords and tenants, come with a transparent platform, and ease the monthly process of collecting rent. There are numerous options that can check these boxes, depending on the number of units you own. The best advice I can share is to evaluate your situation and communicate with your property manager or landlord (if you choose to work with one) to identify and implement the best rent collection protocol. As a real estate investor, rent collection should be a time you look forward to, not a time you dread.

What is your preferred method for rent collection? Did any of these tips help you reevaluate? Share your thoughts in the comments below.

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With a federal election around the corner, potential changes to negative gearing and capital gains tax concessions could be weighing on investor sentiment

Anyone directly or indirectly associated with housing finance has likely felt the pinch of heightened regulation and tighter credit policies. Mortgage brokers and lenders are the first industry participants that come to mind, however, the slowdown in lending activity has broader implications for a wide range of peripheral industries and revenue streams.

Less lending implies fewer home sales for real estate agents and developers, a reduction in building and pest inspections, less conveyancing for lawyers and a slump in stamp duty revenue for state governments. Generally, when people buy a home, they also splurge on household items such as appliances, white goods and home furnishings, so there is a strong relationship with household consumption. Less spending from households has direct implications for Australia’s economic prosperity, considering consumption comprises close to 60% of our gross domestic product.

CoreLogic Monthly Value of Housing Finance Commitments

The latest data from the Australian Bureau of Statistics shows the overall value of housing finance commitments was down 5.1% between July 2017 and July 2018. Since the peak in the value of housing finance in August last year, the value of commitments has reduced by 7.0%; a reduction of about $2.35 billion.

CoreLogic Monthly Value Of Housing Finance Investors

The decline has been most visible for investment loans where the value of lending is down 15.7% over the twelve months ending July ‘18 and almost 31% lower since peaking in April 2015. Owner occupier lending has held much firmer, actually rising 1.1% over the past twelve months (including refinanced loans) and only 1.0% lower than record highs. Clearly, those industry participants who are more exposed to investment channels have borne the brunt of the credit downturn.

CoreLogic Investors As A Percentage

Investors now comprise only 41% of overall mortgage demand, down from a record high of nearly 55% in May 2015. On average, over the past ten years, investors have comprised approximately 45% of mortgage demand, highlighting that investment concentration has been tracking below the decade average since November last year.

Over a longer period, say the last 30 years, investment levels have averaged much lower, averaging just 37% of the overall value of housing finance; a reminder that the past decade is a high benchmark for investment activity.

The value of investment lending has trended lower across every state and territory over the past year, except Tasmania where the value of investment lending was up 16.3% between July 2017 and July 2018.

Despite the trend towards less investment, the states where investment has been the most concentrated, New South Wales and Victoria, continue to show the highest share of investment lending based on value. Investors still comprise almost 49% of lending in New South Wales and almost 41% in Victoria, well above the long term average. Considering the short to medium term prospects for capital gains in these states is relatively low and rental yields remain close to the record lows, the concentration of investment activity in these states doesn’t make much sense.

In all likelihood, we will continue to see investment activity trending lower, especially in New South Wales and Victoria due to mortgage rate premiums for investors, tighter lending criteria, low rental yields and soft prospects for capital gains. Additionally, with a federal election around the corner, potential changes to negative gearing and capital gains tax concessions could be weighing on investor sentiment.

CoreLogic State By State
The last month of winter saw the housing market correction deepen, with dwelling values falling across five of Australia’s eight capital cities. CoreLogic’s national index was down three-tenths of a per cent over the month taking the cumulative decline since values peaked in September last year to 2.2%..https://youtu.be/C0MRUPcSXl4

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Self-managed super fund debt rise coincides with interest rate increase and property price fall – ABC News (Australian Broadcasting Corporation)

Self-managed super fund debt rise coincides with interest rate increase and property price fall – ABC News (Australian Broadcasting Corporation)
— Read on mobile.abc.net.au/news/2018-09-14/self-managed-super-fund-debt-is-rising-rapidly/10244520

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Values increased in Brisbane (0.1%), Adelaide (0.5%), Hobart (0.1%) and Canberra (0.4%).

The latest CoreLogic home value index results show the slowdown in the national market has become more broadly based with the majority of capital city regions recording a fall in dwelling values.  In this week’s Pulse we look at how value changes have tracked over the quarter and year across capital city SA4 regions.

Over the three months to August 2018, combined capital city dwelling values fell by -1.2%. Throughout the individual capital cities, falls were recorded over the three months in: Sydney (-1.2%), Melbourne (-2.0%), Perth (-1.9%) and Darwin (-0.7%) while values increased in Brisbane (0.1%), Adelaide (0.5%), Hobart (0.1%) and Canberra (0.4%).

When digging a little deeper into the data and analysing value changes across the sub-regions (based on SA4 regions) of the capital cities, it is clear that values are drifting lower across most areas. Of the 46 capital city sub-regions (note that Hobart, Darwin and Canberra are each comprised of a single SA4 region) only 13 have recorded an increase in values over the period with all others recording a fall.

Looking at the data, five SA4 regions of Brisbane and three SA4 regions of Adelaide recorded value increases over the quarter. Even though values are falling across the Sydney metro area, North Sydney and Hornsby and City and Inner South have recorded moderate value increases over the quarter. Not one region of Melbourne has recorded an increase in values over the past three months.

Of the 33 SA4 regions in which values fell over the past three months, Melbourne-Inner East (-3.7%), Mandurah (-3.3%) and Blacktown (-3.0%) recorded the largest falls at a rate of 1.0%/month or more.

Over the three month period, dwelling values in Melbourne fell by -2.0% and the North West region of the city recorded the most moderate value fall of -1.0%.  Similarly in Perth, values were 1.9% lower over the quarter and the South West region recorded the most moderate quarterly fall, down -1.1%.

CoreLogic_Change in values three months to Aug18

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Very Grateful 😊

Takes care of you like a family member – 18 Jul 2018

Linda and Carlos have been our agents for the past 10 years. They handled the property management and sales of each of our properties with care and attention to detail. We always had excellent tenants and our sales went through smoothly.

Linda Debello’s reply – 19 Jul 2018

Thank you sincerely from Linda, Carlos, Hazel, Paula and Team for your Review. We truly appreciate your kind words and wish always to stay in touch with you and your family. Cheers

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Hi Jackson

It was our pleasure helping you get settled to Berry Street, Spring Hill. We are sure you will enjoy many happy years in residence and hope that you will contact the Team at LJ Gilland Real Estate Group if we can be of service to you, Jackson, and any of your friends. Cheers LindaandCarlos Debello

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Overall Satisfaction

Best agent

#FIVE #STAR Buyer Review – Recommended by Jackson952

22 July 2018

Made the whole process of purchasing extremely easy.
Went above and beyond to explain everything about the property to me.
Thanks!

Market Knowledge #FIVE #STARS

Communication Skills #FIVE #STARS

Credibility #FIVE #STARS

Negotiation Skills #FIVE #STARS

https://youtu.be/Y8sYqkydgY0

Best Regards

Linda 姬琳达珍 and Carlos Debello (LREA)

琳达姬琳达珍Debello LREA – LJ Gilland Real Estate Pty Ltd

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Wonderful service and excellent outcomes across the board – 25 Feb 2018

Linda and Carlos have been a pleasure to work with during the 10 years they managed our investment property, including the eventual sale. Engaging and personable, Linda and Carlos are always professional and consistently provide excellent, attentive service. I love the way they keep everyone informed in a timely manner and always seek the best outcomes for all parties involved. It’s been a wonderful association and I couldn’t be more enthusiastic about recommending their services.

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Very helpful – 25 Feb 2018

Carlos was very helpful along the way. Thank you!

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Units offer affordable options for many looking to enter the housing market for the first time, down size or simply own a pad close to a city centre.

I analysed the CoreLogic Settlement Risk data to show the potential number of new units set to be completed over the coming years and just how the numbers look.

Over the next 12 months, an additional 94,471 new units will be completed nationally.

This figure represents a 3.5% uplift in total unit supply. Over the next 24 months, the unit supply uplift is expected to be much greater at 251,751 units which is an increase of 9.3% on current supply.

Across the Greater Capital City Statistical Areas (GCCSA), Sydney (76,977) and Melbourne (78,689) are expected to see the greatest increase in unit supply over the next two years.

While the number of unit new units due for settlement is much lower in Brisbane and Adelaide, these two cities are expected to see the greatest percentage increase in new unit supply over the next two years, with CoreLogic data suggesting an uplift of 18.4% and 12.5% respectively.

The top 25 SA3 regions are expected to record the greatest number of new unit settlements over the next two years, Brisbane Inner is expecting an additional 9,732 units over the next two years which translates to an increase in overall unit supply of 29.7%.

Melbourne City is expected to see an 8.1% increase in unit supply over the next two years with an additional 8,040 units while Sydney Inner City is set to add an additional 7,202 units, an uplift of 6.1%.

The top 25 list is dominated by regions of Melbourne which account for 12 of the 25 regions listed while Sydney accounts for nine, Brisbane three and Perth one.

The main difference across the capital cities is that Sydney’s supply of units is set to increase across geographically diverse areas along transport spines while most other cities are seeing the supply increase exclusively within inner city areas.

Over the past five years we’ve seen a significant increase in overall unit supply.

At the same time, housing market conditions have deteriorated over the past year, particularly in Sydney and Melbourne, with dwelling values falling and rental growth slowing.

In the face of weakening housing market conditions, both of these cities retain a high volume of unit stock to be completed. As the new supply comes on line over the coming years, it is anticipated that this could lead to further

Cameron Kusher is a research analyst for CoreLogic

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