While a mid-50% clearance rate doesn’t suggest housing prices are set to bounce back, it does imply a closer fit between buyer and seller expectations and the improved auction success rate supports the reduced rate of decline in housing values across Sydney and Melbourne. Watch “Brisbane Housing Market Update | May 2019” on Vimeo:

The rate of property price decline continues to ease-Overall we are seeing further evidence that the worst of the housing market conditions might now be behind us. Hear all the national and state based insights here.

In this month’s housing marketing update, CoreLogic share that Australian dwelling values fell half a percent last month as the pace of home value declines continued to ease after moving through a recent low point in December last year when national dwelling values were falling at a much faster rate.  The latest figures take national housing values 7.2% lower over the past twelve months to be down 7.9% since peaking in September 2017.

The slowing of the rate of decline is attributable to an easing in the market downturn across Sydney and Melbourne where an improving trend in the rate of decline has been evident over the past three months.  In December last year, Sydney dwelling values were down -1.8%, with the pace of falls progressively moderating back to a month on month decline of 0.7% in April.  Similarly, Melbourne values were down -1.5% in December, with the rate of decline slowing to -0.6% in April.

Although the national rate of decline has improved, the geographical scope of falling values has broadened.  In April, dwelling values fell across every capital city apart from Canberra, while regional areas of Tasmania, Victoria and South Australia also avoided a fall.  The broad-based nature of weak housing market conditions highlights that tighter credit conditions are having a dampening effect across all markets.

Annually, national dwelling values were down -7.2%; the largest decline since the twelve months ending February 2009, which was associated with the Global Financial Crisis.

Overall we are seeing further evidence that the worst of the housing market conditions might now be behind us.  Values are still broadly declining, however the pace of decline has moderated since December last year and there are some tentative signs that credit flows have improved, albeit from a low base.

Considering that tighter credit conditions were one of the primary catalysts for the housing market downturn, any sign that credit availability is improving would be a welcome outcome for the housing market.

According to the Australian Bureau of Statistics, lending to households for dwellings, excluding refinancing was up 2.7% on a seasonally adjusted basis in February.  Additionally, a rise in CoreLogic valuation platform activity throughout March hints at a further improvement in housing finance, which will likely be reported in the next ABS release.

Another indicator of a subtle improvement in the housing market can be seen in auction clearance rates that are holding around the mid-to-low 50% range, albeit on low volumes relative to a year ago. The correlation between auction results and housing market conditions is strongest in Melbourne and Sydney where auctions comprise a larger proportion of selling activity.

While a mid-50% clearance rate doesn’t suggest housing prices are set to bounce back, it does imply a closer fit between buyer and seller expectations and the improved auction success rate supports the reduced rate of decline in housing values across Sydney and Melbourne.

Watch “Brisbane Housing Market Update | May 2019” on Vimeo: https://vimeo.com/335683099?ref=em-share

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Quarterly rents have increased across all capital cities, bar Sydney and Darwin.

At a glance:

  • CoreLogic has released its first Quarterly Rental Review for 2019, showing rents have risen by 1 per cent during the first three months of this year.
  • Sydney is the most expensive capital city to rent with a median weekly rent of $582 per week, while Perth is the cheapest at $385.
  • Quarterly rents have increased across all capital cities, bar Darwin and Sydney.

The first CoreLogic Quarterly Rental Review for 2019, which tracks median rents and rental yields across Australia, shows that national weekly rents have risen by 1 per cent during the first three months of the year.

“This seasonally strong first quarter has delivered the highest increase in weekly rents since the corresponding first quarter a year ago”, says Cameron Kusher, Research Analyst for CoreLogic. “Our regional housing markets are performing marginally better than the capital cities, many of which have been experiencing weaker rental market conditions in recent years due to excess housing supply and growing investor activity.”

“Quarterly rents have increased across all capital cities, bar Sydney and Darwin. Hobart is experiencing notable growth, with rents increasing by 3.6 per cent over the past quarter. However, with a median rent of $582 per week, Sydney remains Australia’s most expensive city for tenants by far.”

The Quarterly Rental Review also highlights a national increase in yields over the past three and 12 months. Gross rental yields for the first quarter are 4.10 per cent compared to 3.95 per cent in the previous quarter and 3.77 per cent a year ago. Darwin has the highest rental yield across the country with an annual median of 6 per cent.

Key findings – rents and yields

  • Nationally, rents increased by +1 per cent over the March quarter and by 0.4 per cent over the past 12 months. Combined capital city rents were 0.9 per cent higher than the December 2018 quarter but -0.1 per cent lower than the previous March quarter. This is the lowest annual change since CoreLogic started tracking rents in 2005. Regional rents were slightly stronger, with a 1.1 per cent increase over the quarter and a 1.8 per cent increase over the past year.
  • In the first quarter, rents climbed in all capital cities except for Darwin (-0.3 per cent). Hobart was by far the strongest performer, with a 3.6 per cent increase in rent over the past quarter, followed by Perth (+1.8 per cent) and Canberra (+1.5 per cent). Hobart also experienced the highest increase in rent over the past 12 months (+5.4 per cent) while at the other end of the scale the media rent in Darwin fell by -5.7 per cent.
  • Nationally, the median rent is $436 per week. The median rent across the capital cities is $465 per week, and $378 per week across the regionals.
  • Gross rental yields have increased from 3.8 per cent to 4.1 per cent nationally. Across the combined capitals, the average rental yield is 3.8 per cent (up from 3.5 per cent). Regional yields are far higher at 5.1 per cent, up from 4.9 per cent 12 months ago.

img_1498

 

Key findings – capital cities

  • Sydney remains Australia’s most expensive capital city market, with a median weekly rent of $582, despite a decline of -3.1 per cent over the past 12 months. While rents in Sydney remained the same as the previous month, they increased by 0.5 per cent over the past quarter. Sydney also has the lowest rental yields out of all capital cities, at 3.5 per cent over the past quarter.
  • Canberra reports a median rental cost of $550 per week, an increase of 1.5 per cent over the past quarter and 3.6 per cent over the past 12 months. Canberra is one of only two capital cities (alongside Darwin) to experience a drop in weekly rent over the past month (-0.1 per cent).
  • In Melbourne, rents are $454 a week – an increase of 1 per cent over the quarter and 2.1 per cent over the past 12 months. Melbourne also reported the greatest increase in rental yields out of all capital cities, with current rental yields being 3.6 per cent, compared to 3.1 per cent a year ago. Despite the rise in yields, Melbourne has the second lowest weekly rental yield out of all capital cities (after Sydney).
  • Brisbane rents are starting to climb again, with Brisbane now having a median weekly rent of $436.This is an increase of 0.8 per cent over the past quarter, and 1.4 per cent over the past 12 months.
  • Perth is the most affordable capital city to rent in with a median weekly rent of $385. However, it is showing signs of growth, achieving the second highest quarterly rate (after Hobart) with an increase of 1.8 per cent over the past 3 months. Over the past year, Perth rents have increased by 2.1 per cent.
  • Adelaide closely follows Perth to become the second most affordable capital city to rent a property in, with a median weekly rent of $386. Like Brisbane, it experienced a 0.8 per cent rise in rents over the March quarter. Over the past 12 months, rents in Adelaide have risen by 1.2 per cent. Gross rental yields have remained static over the year at 4.4 per cent.
  • Hobart reported the strongest growth in rents, up 3.6 per cent over the past quarter to $453 per week. Over the past year, rents have increased by 5.4 per cent. Hobart also reports the strongest growth over the past month, with a 1.6 per cent increase in weekly rent. Hobart also reported the second highest rental yield (after Darwin) of 5.1 per cent, which remained the same as 12 months ago.
  • Darwin has experienced the most significant decline in rent to achieve a median weekly rent of $458. This is down -0.3 per cent over the quarter and -5.7 per cent over the past year. In addition, Darwin also reports a drop of 0.2 per cent over the past month. However, at 6 per cent, Darwin has the highest gross rental yield out of all the capital cities (up 0.1 per cent on the past 12 months).

CoreLogic Research Analyst Cameron Kusher said the first quarter of 2019 had delivered the highest increase in weekly rents since the corresponding first quarter a year ago

“Our regional housing markets are performing marginally better than the capital cities, many of which have been experiencing weaker rental market conditions in recent years due to excess housing supply and growing investor activity,” he said.

“Quarterly rents have increased across all capital cities, bar Sydney and Darwin.

“However, with a median rent of $582 per week, Sydney remains Australia’s most expensive city for tenants by far.”

The Quarterly Rental Review also highlights a national increase in yields over the past three and 12 months.

Gross rental yields for the first quarter are 4.10 per cent compared to 3.95 per cent in the previous quarter and 3.77 per cent a year ago. Darwin has the highest rental yield across the country with an annual median of 6 per cent.

According to the ABS, total household assets were recorded at a value of $12.6 trillion at the end of 2018. Total household assets have fallen in value over both the September and December 2018 quarters taking household wealth -1.6% lower relative to June 2018. While the value of household assets have fallen by -1.6% over the past two quarters, liabilities have increased by 1.5% over the same period to reach $2.4 trillion. As a result of falling assets and rising liabilities, household net worth was recorded at $10.2 trillion, the lowest it has been since September 2017.

CK_001.png

 

Based on this data from the ABS, the Reserve Bank (RBA) calculates a number of household finance ratios.

The first metric detailed from the RBA are the ratios of household and housing debt to disposable income. As at December 2018, household debt was 189.6% of disposable income, a record high and up from 188.7% the previous quarter. Housing debt was also a record high 140.2% of disposable income and had risen from 139.5% the previous quarter.

CK_002.png

 

While debt levels are quite high, the ratios of asset value to disposable income are much higher. While that may be the case, it is important to understand that if asset values fall, the value of the debt typically doesn’t reduce at the same speed, which can lead to asset value erosion. As at December 2018, household assets were 927.9% of disposable incomes. This ratio has declined as property values have fallen, down from a peak of 962.1% in December 2017. Similarly the ratio of housing assets to disposable income is currently 495.3%, down from its peak of 529.7% in December 2017. The 495.3% figure is the lowest it has been since September 2016.

CK_003.png

 

As a result of a reduction in the ratio of assets to disposable income, the ratio of debt to assets is climbing. Total household debt is now 20.4% of household assets, the highest it has been since March 2016. Total housing debt is 28.3% of total housing assets, the highest it has been since September 2014. Again, this reflects the fact that asset values are falling as debt increases.

Despite generational low official interest rates, the measures of interest payments to disposable income have risen over recent quarters. This is likely reflective of lenders lifting interest rates independently of any adjustment to the cash rate by the RBA. Household interest payments represented 9.1% of household disposable income in December 2018, their highest share since September 2013. Housing interest payments accounted for 7.6% of household disposable income in December 2018, their highest share since March 2013. Despite the cash rate tracking at generational lows, households are paying a proportionally higher share of interest than they have in many years.

CK_004.png

 

With housing values falling and expected to keep falling, the ratio of assets to disposable incomes is likely to fall over the coming quarters. Although most households will likely remain in a position whereby the value of their assets is significantly higher than their debt, no doubt an increasing number of recent property purchasers will have higher levels of debt than the value of their asset. This is probably an area of most concern for the RBA. If this leads to reduced consumer expenditure an in-turn slower economic growth it may be a trigger for either lower official interest rates or changes to mortgage lending policies (or both). Furthermore, with household debt at record highs and households dedicating more of their income to servicing their debt at a time when interest rates are so low if household debt levels haven’t declined by the time interest rates rise it could create more challenges for households.

This data will be very important to focus on over the coming quarters.

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  • Open Planed kitchen/ dining and family area with ceiling fans and access to the backyard.
  • 4 Carpeted bedrooms with built-ins and ceiling fans.
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  • Main bathroom with separate bath and Toilet.
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Pets vs No Pets at your rental property

Tips for landlords renting to pet owners

Pet-friendly properties will appeal to more tenants and can achieve higher rents, but there’s more to consider than just the rental return.

  • Choose the right property and features – An apartment with a large outdoor area or a house with a big backyard will appeal more to pet owners. Durable flooring such as tiles is less likely to be damaged than polished floorboards or carpets.
  • Have a pet renting policy  Stipulate the number of pets allowed, acceptable animals or breeds, and any size limits.
  • Ask for a pet resume – Tenant are often happy to supply references from previous landlords or property managers. You may also wish to meet the pet beforehand.
  • Investigate strata bylaws – Some complexes may not allow animals, while others have rules about the type or size of pet and may require residents to register pets or ask for permission first.
  • Check your landlord insurance  Tenants are generally liable for damage caused by pets, apart from reasonable wear and tear, but it’s wise to check your insurance policy as well to find out exactly what is and isn’t covered.
  • Claim repairs at tax time  The cost of repairing reasonable wear and tear, such as refinishing floors and repainting walls, can be deducted from your rental income to minimise your tax bill.

Landlords who allow pets could boost their rental return by up to 30 per cent

Investors are always looking for ways to increase their rental return, but there’s one strategy that can boost rents by up to 30 per cent and it doesn’t involve renovating. 

In almost every capital city, median asking rents for pet-friendly apartments are higher than for homes that don’t allow pets, according to Domain Group data.That means landlords who allow pets could boost their rental return by simply checking a box.

Apartments advertised as pet-friendly are rarest in Melbourne, representing less than 3 per cent of all rentals, followed by Adelaide (6 per cent) and Sydney and Canberra (both 7 per cent).

Houses are more likely to be pet-friendly, but the proportion is still low in Melbourne (9 per cent) and Sydney (21 per cent). On the other hand, more than half of Greater Brisbane rental houses allow pets, while in Darwin, more than two-thirds are pet-friendly.

Sydney investors have the most to gain by allowing pets, according to the analysis of rental listings from the March 2019 quarter. Asking rents for apartments that allow pets are 11 per cent higher than those that don’t, which equates to $60 each week or $3120 per year.

With landlords in Sydney facing tougher competition as the rising supply of rental properties pushes down rents, allowing pets could provide investors with a point of difference and minimise the time a property remains on the rental market.

Sydney property manager and Property North Agency director Ben Benny said he always encouraged landlords to consider allowing pets to improve returns.

Related: How to prepare your home for a pet

“We definitely see an increase in rents when properties are pet-friendly,” he said. “Hands down it’s the biggest inquiry we get for any property.”

In Melbourne and Darwin, rents for pet-friendly units are 8 per cent higher, and in Adelaide and Brisbane there’s a 5 per cent difference in price.

Premium highest for rare rentals

In areas where pet-friendly rentals are least common, the premium is often higher. 

Less than 3 per cent of apartments in Sydney’s Canterbury-Bankstown area were advertised as pet friendly, but rents were 26 per cent higher, with landlords pocketing an extra $105 per week or $5460 per year. 

In the Liverpool and Fairfield areas, only one per cent of apartments are pet-friendly, and are advertised for 18 per cent more, costing tenants an extra $60 each week or $3120 per year.

It’s a similar situation in Melbourne’s inner city, where less than one per cent of units allow pets and rents are 30 per cent higher. That trend continues among apartments in the inner east, northern suburbs and bayside areas.

Although few rentals in Melbourne were advertised as pet-friendly, Lucas Real Estate senior property manager Emma Racky said this was relatively normal, and pets were often allowed on a case-by-case basis.

“People won’t be deterred from applying just because it doesn’t specifically say it’s pet-friendly,” she said. “It just depends on the owner’s preference. Some aren’t too fussed, but if it’s a new property, they’re worried about damage.” 

Restrictive landlords limit their tenant pool

In Brisbane, where pet-friendly rentals are much more common because tenants considered them part of the family.

In Brisbane, you reduce the pool of tenants if you say it’s not pet-friendly.

I love to give out a property which is pet-friendly because I know I’ll have a bigger pool of people coming through and the take-up is much faster.” In Sydney, the northern beaches has one of the highest concentrations of pet-friendly houses. More than one-third of rental houses are pet-friendly, and landlords who allow pets can expect rents to be 17 per cent higher.

Pet ownership is common among families renting houses there as trends were changing.

Over the past two or three years we’ve seen more of a shift towards younger couples, finding it more common for two-bedroom apartments.

Although property damage is a concern for many landlords, it was not the only issue. For strata buildings and apartments, the biggest concern is noise and upsetting other neighbors.

 

 

 

NO PETS

Allowing no pets at all will potentially reduce the pool of tenants who will want to rent your property.

On the upside though, having no pets obviously means there will be less wear and tear on the property in terms of damage to the property and potentially, odours in the property.

In our experience, around eight times out of ten the tenant will ask for a pet. It’s a common thing that happens throughout a tenancy.

PETS

At the start of a tenancy when being advertised, we always ask owners to consider listing a property as ‘pets upon application’ (this does not mean pets are a definite ‘yes’, it means that each application will be considered on its merits and each pet considered). Ultimately it is the owner’s decision on whether to allow pets.  The benefits of allowing pets is that it will open up your property to a much larger potential tenant pool, possibly decreasing vacancy time. The reality is the most pets and pet owners are not an issue, however, not all pets are created equal! Having a ‘pets on application’ approach coupled with a signed agreement from the tenant is a good step in providing the right to ‘veto’ any pets you do not consider appropriate and safeguarding your investment.

Over 85% of our properties are pet friendly, meaning we have more tenants looking at our properties and we have less vacancy.

According to Domain, owners who considered pets can also boost their rent returns by up to 30%!

In a nation where pets are family, great tenants with a pet can be worth their weight in gold. They tend to pay rent on time, look after the property really well and they stay for 2 to 3 years!

Everyone wins 🐶 🐱 🐦 🐰 🐟

https://www.domain.com.au/advice/landlords-who-allow-pets-could-boost-their-rental-return-by-up-to-30-per-cent-833532/

 

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Apartment listings soar as investors offload

AUSTRALIAN FINANCIAL REVIEW

Apartment listings soar as investors offload

Nila Sweeney · Jun 24, 12:00 AM

“The shift seemed to be concentrated in Sydney at the moment. Perhaps we are starting to see some investors choosing to offload their property because of the disruption in the rental market,” Dr Powell said.
“If landlords can’t weather this COVID-19 storm, can’t secure a tenant and can’t get that cashflow through this period, we could see an increase in apartments coming onto the market as investors try to sell up.”
Domain is majority-owned by Nine, publisher of The Australian Financial Review.
A surge in unemployment caused by the economic lockdown to slow the spread of the coronavirus has put pressure on many renters, and travel restrictions have slashed migrant numbers that help drive demand for properties. The contraction has also sent buyers out of the market.

Older listings pile up

To make matters worse, the number of older apartment listings has also started to pile up, pushing inventory up to risky levels.
An analysis by Select Residential Property head of research Jeremy Sheppard found the proportion of apartments that have been languishing on the market for more than 100 days jumped by 41.3 per cent in the Sydney CBD during the past three months.

On average, it takes 90 days to sell a property.
In the Melbourne CBD, the volume of older apartment listings rose by 16.3 per cent, taking the total of older stock to 307, while the Adelaide CBD rose by 40.3 per cent.
Suburbtrends.com director Kent Lardner said inventory in many apartment-dense suburbs such as Southbank in Melbourne has been building up as buyers pulled back.
Mr Lardner calculated Southbank has accumulated 11.8 months’ worth of apartment inventory, while Melbourne CBD has 10.08 months’ worth of stock.
A balanced market normally has six months’ worth of stock where there is no downward or upward pressure on prices.
“I often see a price fall of around 1 per cent for each month above the six months level,” Mr Lardner said.
“For example, if a market has 10 months of inventory, I expect to see around 4 per cent price falls on average each month until things come back into balance.
“That means Southbank could experience price drops of around 5 per cent per month and Melbourne CBD apartment prices could fall by up to 4 per cent per month until buyer volumes pick up and bring the inventory levels back to normal.”

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Docklands’ inventory is currently sitting at 9.27 months, East Perth at 8.87 months and Surfers Paradise at 8.2 months.
Sydney has 7.02 months of inventory while Perth has 6.99 months.

Sales volume fall

But vendors could be waiting even longer to make a sale as fewer buyers are choosing apartments.
A CoreLogic analysis showed apartment sales dropped 37.7 per cent in Sydney during the past three months to May, while Melbourne plunged by 38.9 per cent.
Apartment sales in Brisbane were 19.2 per cent lower, Perth fell by 36.9 per cent and Canberra dropped by 9.3 per cent.
“Apartment demand, particularly the investor-grade stock in Sydney city and the inner south as well as Melbourne and the inner regions, is likely to continue falling away over the coming months,” said CoreLogic’s analyst Eliza Owen.
“The risks in these markets is the pile-up of rental listings, which rose in these inner-city markets by about 50 per cent between mid-March and late May.
“The compressed rental yields that will result from this excess rental supply will deter investment activity.#propertymanager

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Rental stock 23-6-20

CoreLogic ‘rental stock on market’ data shows Sydney and Melbourne markets loosen over May

Eliza Owen

22 Jun 2020

Amid COVID-19, much attention has been given to weaker rental market conditions. But as with buying and selling property, market conditions vary substantially among regions. New data estimates from CoreLogic, calculating the portion of rental stock advertised, shows further variation in the performance of rental markets across different capital cities. 

The percentage of rental housing advertised rose over the month of May in Sydney and Melbourne, while declining across the rest of the capital city regions.

4.5% of the total rental stock across Sydney was advertised over May, up from 4.3% in April. The portion of stock advertised across Melbourne saw an even larger jump, from 3.2% of listings advertised in April, to 3.6% of properties over May.

While 3.6% may sound small, it represents a total rent listing uplift of more than 3,000 across Melbourne, up to about 27,000 properties for rent over the month. This corresponds to a rise in vacancies, and falling rental prices, particularly in inner-city Sydney and Melbourne. 

How is rental stock on market measured? 

The calculation of rental stock on market is derived by dividing total rental listings in a month by the estimated rental stock in an area. 

An increase in the portion of stock on market suggests higher vacancies and a looser rental market, which would coincide with falling rent prices. However, it could also be a function of a change in the ‘denominator’ – ie, the size of the rental market is reduced while listings are steady. 

CoreLogic has a ‘static’ estimate of the portion of properties that are rented. To get a dynamic indication of rental stock, the portion of dwellings estimated to be rentals was interpolated between the rental tenure reported at the 2016 census, and the latest CoreLogic imputation of the portion of rental stock. So it assumes there is a linear movement in the portion of rental properties from 2016 to 2020.

A summary of the rental stock on market is presented below. 

 

Why is stock piling up in Sydney and Melbourne and not elsewhere?

One of the big drivers of demand for rental accommodation is overseas migration. Most people that come to Australia from overseas, whether they are a skilled migrant, a temporary visa visitor or a refugee, will rent when they first come to Australia.

ABS data on migration suggests that Sydney and Melbourne received over 70,000 net overseas migrants over 2018-19, which is far higher than the other capital cities. This may be why an increasing amount of properties across the cities are sitting vacant.

Another factor contributing to less rental demand could relate to the predominance of Sydney and Melbourne for foreign student numbers. With foreign student numbers falling by close to 100% compared with a year ago, along with domestic students largely studying from home, rental demand from tertiary students has been depleted.

New South Wales and Victoria have also seen, by far, the largest number of investors relative to other states. According to ABS housing finance data, almost two thirds (65%) of investment loans over the past ten months were in Australia’s two largest states. Investor activity contributes to rental supply.

When paired with the large number of units that have been built over the past few years, many of which are rentals, and it’s clear that rental supply has increased more in Sydney and Melbourne relative to the other cities. Higher supply levels against a backdrop of weaker demand is a recipe for lower rents.

The steady level of advertised stock across the ACT came amid very little change to advertised stock levels and total rental stock levels. Declines in the rate of advertised rental stock in May across other cities were all due to a decline in the total listings count over the month.

In some areas, this could be a continuation of steady market conditions. The advertised stock levels suggest that rental markets have been gradually tightening in the lead up to COVID-19. Perth in particular saw the portion of advertised stock decline over 200 basis points in the year to May, as both total rent listings, and the number of total rental properties declined. It may be the case that investors withdrawing from the market, where the property was sitting vacant for a long time, has helped to tighten rental conditions.

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Are you entitled to the $25K grant by govt?

LJ Gilland Real Estate: ARE YOU ELIGIBLE?Australian Government HomeBuilder… https://ljgilland.blogspot.com/2020/06/are-you-eligibleaustralian-government.html?spref=tw

Posted in Australia, Brisbane, COVID-19, ECONOMIC OUTLOOK, ECONOMY FINANCE BUSINESS LJGREALESTATE RENTALS PROPERTY SALES PROPERTY INVESTOR PROPERTY MANAGEMENT, Empowerment, family, finance, Foreign Investment, LJ Gilland Real Estate Pty Ltd, ljgrealestate, maintenance & roofing, Maintenance Renovating tips Construction Home Staging Property Sales Property Management Property Investor Builders Developers Rentals Sales Tenance, MT ISA, Negative Gearing, NRAS, property investor, propertymanagement, Queensland, Real Estate, RENTAL LAWS, rentals, rentals sales, spanish Argentina Korea India United Kingdom USA Asia Japan Hong Kong | Tagged , , , , , , , , ,

Quantum to pay $700k for misleading property investors. Quantum Housing has been ordered to pay $700,000 in penalties after the Federal Court found it made false or misleading representations relating to the National Rental Affordability Scheme (NRAS)

Quantum Housing has been ordered to pay $700,000 in penalties after the Federal Court found it made false or misleading representations relating to the National Rental Affordability Scheme (NRAS)

Quantum, which ceased trading in December 2019 and is in liquidation, has been given the order after the court found that between February 2017 and July 2018 it sent a series of misleading letters and emails to at least 450 investors who had rental dwellings participating in the NRAS scheme.

The court found Quantum had pressured investors to terminate their arrangements with their existing property managers and instead use property managers approved or recommended by Quantum. The group failed to tell investors that it had commercial links with the property managers it recommended and told some investors that their existing property manager “had not properly managed their property’s compliance with the NRAS, when this was not true”, according to a statement provided by the ACCC.

“Quantum admitted that it falsely represented that property managers must meet accreditation guidelines issued by Quantum, and that investors who failed to appoint an approved property manager were in default of their agreement with Quantum and risked losing their NRAS incentives,” the statement explained.

“The Court also ordered Quantum’s director, Cheryl Howe to pay $50,000 in penalties for being knowingly concerned in Quantum’s breaches of the Australian Consumer Law. Ms Howe was also disqualified from managing a corporation for three years.”

Commenting on the decision, ACCC chair Rod Sims called the conduct a “blatant, planned and deliberate” effort to trick investors into switching from their preferred property managers.

“The penalties ordered against Quantum and Ms Howe serve as a warning that making false or misleading statements will result in serious consequences not just for the company involved but also any executive or employee found to be knowingly concerned in the conduct,” Mr Sims said.

 

Posted in Australia, Brisbane, china, COVID-19, ECONOMIC OUTLOOK, ECONOMY FINANCE BUSINESS LJGREALESTATE RENTALS PROPERTY SALES PROPERTY INVESTOR PROPERTY MANAGEMENT, Empowerment, family, finance, LJ Gilland Real Estate Pty Ltd, ljgrealestate, maintenance & roofing, Maintenance Renovating tips Construction Home Staging Property Sales Property Management Property Investor Builders Developers Rentals Sales Tenance, MT ISA, Negative Gearing, NRAS, property investor, propertymanagement, Queensland, Real Estate, RENTAL LAWS, rentals, rentals sales, sales, spanish Argentina Korea India United Kingdom USA Asia Japan Hong Kong | Tagged , , , , , , , ,

The details of the government’s home renovation package have been announced. The ‘HomeBuilder’ scheme (yes, really) will offer some Australians $25,000 to assist in building or substantially renovating a home, to enable what the government calls a “tradie-led recovery”. “If you’ve been putting off that renovation or new build, the extra $25,000 we’re putting on the table along with record low interest rates means now’s the time to get started,” said Scott Morrison. The scheme will be means-tested for singles who earned up to $125,000 in the previous financial year, and couples who earned up to $200,000

Australians will be offered $25,000 to build or substantially renovate a home in a bid to boost the flagging construction industry, which has hit the wall following a coronavirus-induced economic downturn.

The Morrison government will on Thursday reveal its $688 million HomeBuilder program designed to spark a “tradie-led recovery”, which will offer one-off cash payments to eligible owner-occupiers and first home buyers from July 4 to December 31 to entice investment in the sector.

Construction of a new home or substantial renovation must be contracted to commence within three months of the contract date to avoid causing a blowout in house prices.

Figures from the Australian Bureau of Statistics released on Wednesday highlighted the issues facing the building sector.

Building approvals fell by 1.8 per cent in April after a 2.6 per cent drop in March.

Over the past year, 174,719 homes were approved by councils for construction, more than 22 per cent down on the average of the past 10 years.

Alterations and additions tumbled by 13.2 per cent in April, the biggest drop in three years, while commercial building approvals dropped by almost 12 per cent.

Prime Minister Scott Morrison said the investment wasn’t just about helping Australians bring their dream home to life, but supporting the more than one million builders, painters, plumbers and electricians across the country.

“This is about targeted taxpayer support for a limited time using existing systems to ensure the money gets used how it should by families looking for that bit of extra help to make significant investments themselves,” Mr Morrison said.

“If you’ve been putting off that renovation or new build, the extra $25,000 we’re putting on the table along with record low interest rates means now’s the time to get started.”

The scheme will means-tested for singles who earned up to $125,000 in the previous financial year, and couples who earned up to $200,000 between them.

They must enter into a building contract between July and December 2020 to either build a new home as a principal place of residence valued up to $750,000 including land.

Those planning to substantially renovate their existing home as a principal place of residence, can access the grants for renovations valued at between $150,000 and $750,000 with the home not valued at more than $1.5 million before the renovation.

HomeBuilder cannot be for used for additions to the property that are unconnected to the principle place of residence such as swimming pools, tennis courts, outdoor spas and saunas, sheds or garages.

Owner-builders and those seeking to build a new home or renovate an existing home as an investment property will be ineligible for scheme.

Housing Industry Association managing director Graham Wolfe said the incentive was the largest direct contribution to households an Australian government had ever made and will ensure concrete slabs would be poured in the second half of the year, helping the sector avoid the predicted significant contraction in new home building activity.

“This incentive will support hundreds of thousands of workers across the residential building industry,” Mr Wolfe said. “It will help home builders and trade contractors along with their staff and suppliers.”

The scheme will complement existing state and territory first home owner grant programs, stamp duty concessions and other grant schemes, as well as the Commonwealth’s First Home Loan Deposit Scheme and First Home Super Saver Scheme.

Housing Minister Michael Sukkar said residential construction was vital to Australia’s economy, with dwelling investment worth more than $100 billion or around 5 per cent of our economic output each year.

Posted in LJ Gilland Real Estate Pty Ltd

Quarterly housing report shows affordability improved

Queensland

  • Housing affordability improved with the proportion of income required to meet home loan repayments decreasing to 30.4 per cent
  • Rental affordability improved over the quarter with the proportion of the median family income required to meet the median rent decreasing to 22 per cent 
  • The number of loans to first home buyers in Queensland decreased to 5,419, a decrease of 5.9 per cent over the quarter but an increase of 20.8 per cent compared to the same quarter of 2019. 
  • Of all Australian first home buyers over the quarter, 20 per cent were from Queensland while the proportion of first home buyers in the state’s owner-occupier market was 34.1% 
  • The average loan size to first home buyers increased to $374,036, an increase of 3.4 per cent during the quarter and an increase of 12.9 per cent compared to the March quarter 2019. 
  • The number of loans decreased in Queensland to 15,911, a decrease of 11.1 per cent over the quarter but an increase of 5.4 per cent compared to the March quarter of the previous year. 
  • The average loan size increased to $414,154, an increase of 0.4 per cent during the quarter

Source: REIA

The REIA’s quarterly report gives a snapshot of the housing industry showing a slight improvement before the effects of Coronavirus.

It is like the calm before the storm as the REIA Housing Affordability Report for the March quarter shows a marginal improvement across the country to housing affordability.

It also shows the proportion of income required to meet loan repayments decreased by 0.1 percentage points to 34.7 per cent over the quarter. 

REIA president Adrian Kelly analyses the snapshot of the property industry across Australia.

At a Glance:

  • Proportion of income required to meet loan repayments decreased by 0.1 percentage points to 34.7 per cent
  • With the exception of Victoria, Tasmania and Western Australia, housing affordability improved across the states and territories
  • Rental affordability improved in the March quarter with the proportion of income required to meet rent payments decreasing to 23.5 per cent by 0.1 per cent

“With the exception of Victoria, Tasmania and Western Australia, housing affordability improved across the states and territories with the Australian Capital Territory having the largest improvement 1.1 percentage points,” said Mr Kelly. 

Source: REIA

“Rental affordability improved in the March quarter with the proportion of income required to meet rent payments decreasing to 23.5 per cent, a decrease of 0.1 percentage points over the quarter. 

“Rental affordability improved in Queensland, Western Australia and the Northern Territory, but declined in New South Wales, Victoria, South Australia, Tasmania and the Australian Capital Territory.” 

When it comes to loans the total number has declined compared to the December quarter of the previous year. 

“This is not unusual for the first quarter of the calendar year, however there was a 4.2 per cent increase on the number of new loans from the same quarter of 2019,” said Mr Kelly. 

“The number of first home buyers decreased to 27,082, a decrease of 10.7 per cent during the quarter but an increase of 23.1 per cent compared to the March quarter 2019. 

“With the introduction of the First Home Buyer Deposit scheme on 1 January we expect that share of first home buyers will continue to grow.” 

The report shows the number of first home buyers decreased in all states and territories over the March quarter with the largest decrease in the Australian Capital Territory (-22.2 per cent).  

Compared to the corresponding quarter 2019, the number of first home buyers increased in all states and territories, with the largest increase in the Australian Capital Territory (57.6%). 

Mr Kelly advises the true nature of the impacts of Coronavirus on housing affordability will be reflected in the next quarterly report.

Source: REIA

State by State

NSW

  • Housing affordability improved with the proportion of income required to meet loan repayments decreasing to 42.5 per cent
  • Proportion of income required to meet loan repayments 7.8 percentage points higher than the nation’s average
  • Rental affordability declined marginally with the proportion of income required to meet median rents increasing to 27.5 per cent 
  • Loans to first home buyers decreased to 6,622 a decrease of 11 per cent over the quarter but an increase of 33.3% compared to the March quarter 2019 
  • 24.5 per cent of first home buyers were from New South Wales while first home buyers make up 32.9% of the state’s owner-occupier market
  • The average loan to first home buyers increased to $502,552 
  • The number of dwelling loans decreased to 20,105, a decrease of 17.5 per cent over the quarter but an increase of 8.5 per cent compared to the March quarter 2019 
  • The average loan size increased to $595,315, an increase of 0.4% over the quarter and an increase of 22.2% compared to the corresponding quarter of 2019. 

Source: REIA

Victoria 

  • Housing affordability declined in Victoria with proportion of family income devoted to meeting average loan repayments increasing to 37.5 per cent 
  • Rental affordability in Victoria declined over the quarter with the proportion of income required to meet median rent increasing to 23 per cent 
  • The number of loans to first home buyers in Victoria decreased to 8,624, a decrease of 16 per cent 
  • Of the total number of first home buyers that purchased during the March quarter, 31.8 per cent were from Victoria 
  • The average loan to first home buyers was $437,871, an increase of 2.3 per cent over the quarter and an increase of 14 per cent compared to the March quarter 2019.
  • The total number of loans decreased to 21,396, a decrease of 15.8 per cent during the quarter but an increase of 4.3 per cent compared to the March quarter 2019. 
  • The average loan size was $514,741 over the quarter, an increase of 4.1 per cent and an increase of 18.8 per cent when compared to the corresponding quarter 2019. 

Source: REIA

Queensland

  • Housing affordability improved with the proportion of income required to meet home loan repayments decreasing to 30.4 per cent
  • Rental affordability improved over the quarter with the proportion of the median family income required to meet the median rent decreasing to 22 per cent 
  • The number of loans to first home buyers in Queensland decreased to 5,419, a decrease of 5.9 per cent over the quarter but an increase of 20.8 per cent compared to the same quarter of 2019. 
  • Of all Australian first home buyers over the quarter, 20 per cent were from Queensland while the proportion of first home buyers in the state’s owner-occupier market was 34.1% 
  • The average loan size to first home buyers increased to $374,036, an increase of 3.4 per cent during the quarter and an increase of 12.9 per cent compared to the March quarter 2019. 
  • The number of loans decreased in Queensland to 15,911, a decrease of 11.1 per cent over the quarter but an increase of 5.4 per cent compared to the March quarter of the previous year. 
  • The average loan size increased to $414,154, an increase of 0.4 per cent during the quarter

Source: REIA

South Australia

  • Housing affordability in South Australia improved with the proportion of income required to meet monthly loan repayments decreasing to 27.9 per cent 
  • Rental affordability declined over the quarter with the proportion of income required to meet rent payments increasing to 22.5 per cent 
  • Number of loans to first home buyers in South Australia decreased to 1,493, a decrease of 10.5 per cent over the quarter 
  • Of all Australian first home buyers over the quarter, 5.5 per cent were from South Australia while the proportion of first home buyers in the state’s owner-occupier market was 25.9 per cent
  • The average loan size to first home buyers increased to $334,226, an increase of 1.4 per cent over the quarter and an increase of 8.2 per cent when compared to a year earlier. 
  • The total number of loans decreased to 5,764, a decrease of 11.5 per cent over the quarter and a decrease of 4.5 per cent compared to the March quarter 2019. 
  • The average loan size increased to $358,171, an increase of 0.8 per cent over the quarter  

Source: REIA

Western Australia 

  • Housing affordability in Western Australia declined with the proportion of income required to meet loan repayments increasing to 25 per cent
  • Rental affordability improved with the proportion of family income required to meet the median rent decreasing to 16.6 per cent 
  • The number of first home buyers decreased to 3,547 in the March quarter, a decrease of 2.3 per cent over the quarter 
  • Of all Australian first home buyers over the quarter, 13.1 per cnet were from Western Australia while the proportion of first home buyers in the state’s owner-occupier market was 45.9 per cent 
  • The average loan to first home buyers increased to $353,115, an increase of 2.2 per cent over the quarter and an increase of 9.1 per cent when compared to the March quarter 2019 
  • The total number of loans in Western Australia decreased to 7,733, a decrease of 6.7 per cent over the quarter but an increase of 4.3 per cent compared to the March quarter 2019. 
  • The average loan size increased to $406,246, an increase of 2 per cent over the quarter and an increase of 10.3 per cent compared to the March quarter 2019. 
  • Western Australia’s average loan size is 16.4 per cent lower than the national average. 

Source: REIA

Tasmania 

  • Housing affordability declined with the proportion of income required to meet home loan repayments increasing to 29.6 per cent 
  • Rental affordability declined over the quarter with the proportion of income required to meet median rents increasing to 30.5 per cent 
  • The number of first home buyers in Tasmania decreased to 564, a decrease of 0.5 per cent over the quarter but an increase of 11.9 per cent compared to the same quarter of the previous year 
  • Of all Australian first home buyers over the quarter, 2.1 per cent were from Tasmania while the proportion of first home buyers in the state’s owner-occupier market was 32.6 per cent 
  • The average loan to first home buyers increased to $302,128, an increase of 3.6 per cent over the quarter and an increase of 6.2 per cent compared to the March quarter 2019. 
  • The total number of new loans for dwellings in Tasmania decreased to 1,732, a decrease of 8.3 per cent over the quarter and a decrease of 16 per cent compared to the corresponding quarter 2019 
  • The average loan size increased to $343,649, an increase of 2.8 per cent over the quarter and an increase of 21 per cent compared to the same time last year 

Source: REIA

Northern Territory 

  • Housing affordability improved with the proportion of income required to meet loan repayments decreasing to 20.2 per cent 
  • Rental affordability improved with the proportion of income required to meet the median rent decreasing to 20.6 per cent 
  • The number of loans to first home buyers decreased to 200, a decrease of 8.7 per cent 
  • Of all Australian first home buyers over the quarter, 0.7 per cent were from the Northern Territory while the proportion of first home buyers in the Territory’s owner-occupier market was 44.9 per cent 
  • The average loan size to first home buyers increased to $366,500, an increase of 7.3 per cent over the quarter and an increase of 5 per cent compared to the March quarter 2019.
  • The number of new loans decreased to 445, a decrease of 15.1 per cent over the quarter 
  • The average loan size decreased to $346,517, a decrease of 2.6 per cent over the quarter 

Source: REIA

Australian Capital Territory 

  • Housing affordability improved with the proportion of income required to meet home loan repayments decreasing to 21.2 per cent 
  • Rental affordability declined with the proportion of income required to meet the median rent increasing to 19 per cent 
  • The number of loans to first home buyers decreased to 613, a decrease of 22.2 per cent 
  • Of all Australian first home buyers over the quarter, 2.3 per cent were from the Australian Capital Territory while the proportion of first home buyers in the Territory’s owner-occupier market was 32.6 per cent 
  • The average loan for first home buyers increased to $446,330, an increase of 4.8 per cent over the quarter and an increase of 14.8 per cent compared to the corresponding quarter 2019.  
  • The number of loans in the Australian Capital Territory decreased to 1,883, a decrease of 20.9 per cent over the quarter but an increase of 20.9 per cent compared to the March quarter 2019. 
  • The average loan size decreased to $458,471, a decrease of 3.8 per cent over the quarter but an increase of 6.8 per cent compared to the March quarter 2019. 

Source: REIA

Similar to this:

Housing affordability improves while rental affordability declines: report

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Stamp duty plan required to boost confidence

In the race to reach the post-COVID-19 recovery stage as quickly as possible, the necessity is to bring confidence back, writes Mathew Tiller.

However, at a time when everyone is hanging on announcements, commitments and timelines from politicians and regulatory officials, it’s important that the communication is clear, transparent and detailed in order to boost confidence. Recent discussions surrounding changes to stamp duty have not been one such communication.

Over recent weeks, the federal Treasurer, RBA governor and NSW Treasurer have all discussed the need to overhaul the tax system and singled out stamp duty as the tax most in their sight. As evident by the course of supportive voices, for more than a decade, everyone agrees that stamp duty is a highly inefficient tax which needs abolishing. However, while the sentiment in the most recent discussions is positive, the lack of detail has had the opposite effect and led to a decline in buyer confidence.

Real estate agents have now reported increasing and disruptive frustration in buyer activity tied directly to potential changes to stamp duty. The main concern being that if a buyer purchases a home now, they will lose out on any savings from potential stamp duty changes, so they’re hesitant to decide to buy now or later, whenever that may be.

Therefore, it’s important that the government quickly, and in a detailed manner, release their proposal to wind back or repeal stamp duty, to ensure buyers that are looking to get into the market now can proceed with certainty and with a clear understanding about how tax changes will affect their purchase. 

Stamp duty around the country

Stamp duty on a $900,000 home
VIC$49,070
NT$44,550
SA$43,330
WA$37,466
NSW$35,990
TAS$35,685
ACT$34,200
QLD$26,350

 Why is stamp duty a dampener for real estate markets and the economy?

Put simply, stamp duty adds additional and unnecessary cost to property transactions. At a time when affordability has become a big societal issue, governments need to be looking at solutions to make buying a home more affordable.

COVID-19 has seen an increase in people working from home, so more may now take look more closely at where they want to live and work from. This means there could be greater migration to more affordable regional centres. However, the transactional costs of buying a new house may prove to be a barrier to doing this. Stamp duty increases the transactional costs and therefore limits the mobility of workers; that is, it stops people from moving elsewhere because the cost of buying a new house outweighs the benefit of the move.

In addition to moving for work, it also stops households from selling and buying a home to suit their changing circumstances. This means that a growing family may decide to stay in an apartment that doesn’t suit their changing needs or it may see a retiree remain in a large house as opposed to downsizing to a more suitable townhouse or apartment.

Why is stamp duty important for governments?

Governments have been reluctant to change or reduce stamp duty to the large proportion of revenue it generates, accounting for almost 25 per cent of revenue in some states. However, while governments like the largeness of stamp duty revenue, the level of revenue can fluctuate a lot from year to year, depending on the strength of the housing market, and this makes it hard for them to budget, plan and forecast. 

What are the options for reducing, or even replacing, stamp duty?

There are two major solutions put forward by economists to replace stamp duty. The first is a broader-based land tax, which would mean that all land (property) owners would share the tax burden by paying a set amount of tax based on the value of their land each year. This would ensure that a government would receive a steady, reliable and consistent level of revenue each year.

The second solution put forward by economists is increasing the rate of the GST and/or broadening the basket of goods which the GST covers. This increase in GST revenue can then be shared out to the states for reducing, or even deleting, stamp duty.

Stamp duty is an issue that has been recognised, discussed and debated for decades. It’s time to stop kicking the can down the road. Thought bubbles, talking about reform, announcing that you would like to scrap stamp duty is all good and well, but without detailed plans and timelines, it only causes confusion, reducing confidence in Australia’s property markets.

Posted in LJ Gilland Real Estate Pty Ltd

New Queensland regulations for electronic signing and remote witnessing of important documents

On 22 May 2020, Queensland amended1 certain emergency regulations2 to permit amongst other things:

  1. electronic signing of affidavits and statutory declarations; and
  2. witnessing of such documents and the taking of oaths via audio visual link.

These welcome reforms were introduced in recognition of the fact that ‘the making, signing and witnessing of these important documents and the taking of oaths has been impeded by the COVID-19 emergency, including the requirements for social distancing and in some cases the requirement for individuals to be in self-isolation‘.3

Summary of reforms

In summary, for affidavits and declarations:

  1. if made, signed or witnessed in the traditional manner, then nothing has changed;
  2. they may instead be made in electronic form and be signed electronically if you comply with part 4 of the amended regulations;
  3. physical presence is no longer required for the purposes of making, signing or witnessing if:
    1. the relevant people are present by audio visual link;
    2. the oath or affirmation is administered by a special witness (relevantly this continues to include an Australian legal practitioner); and
    3. the making, signing or witnessing is in accordance with part 4; and
  4. the requirement to hold a bible and for the person administering the oath to say certain words is not applicable for affidavits or regulations made, signed or witnessed in accordance with this regulation.

There is scope to use a substitute signatory for the signing of a document in the physical presence of a witness, however it is anticipated this would be rare and a last resort. There is also provision for affidavits by counterpart.

Electronic signing

There is a definition of ‘electronically sign’ which is essentially taken from the Electronic Transactions (Queensland) Act 2001, so should not present any particular difficulties.

Fortunately the regulation does not prescribe any particular form of technology – affording a degree of flexibility. In this regard, the explanatory notes record that electronic signing can occur through methods such as:

  1. the use of electronic platforms which allow electronic signing of documents (such as Docusign);
  2. copying and pasting an image of a handwritten signature; or
  3. applying a digital signature to the document (e.g. using Adobe).

Witnessing via audio visual link

If witnessing via audio visual link, the person administering the oath or affirmation must be a special witness (as noted above, this includes an Australian legal practitioner).

Further, under part 4 of the regulations:

  1. the audio visual link must enable the witness to be satisfied in real time, by the sounds and images made by the link, that the signatory is signing the document;
  2. the witness must be satisfied the signatory freely and voluntarily signed the document;
  3. the witness must take reasonable steps to verify the identity of the signatory and that the name of the signatory matches the name of the signatory on the document; and
  4. the witness has to confirm the document by being satisfied that it is the document that was signed or a true copy, must confirm it as soon as practicable after witnessing it, and after confirming it must then give it or a true copy to the ‘relevant person’ – ie for an affidavit/declaration to the person who made it or a person to whom that person directs (in practice, that may simply be the lawyers for the party for whom the affidavit is made).

Formalities

There appears to have been concerns raised in some quarters about these arrangements and, in particular, about the risks of removing the requirement for physical presence. As a consequence, a number of safeguards were introduced, including:

  1. the requirement for special witness (mentioned above), on the basis that they were thought more likely to have access to and be familiar with using audio visual links, they have obligations to protect confidentiality, and were thought to have appropriate training or experience to assure themselves that the document they witness is the same as the document that the signatory signed and that the signatory is making the document freely and voluntarily; and
  2. the requirement for a special clause in the document acknowledging that it was made, signed and witnessed in accordance with the regulation, making statements as to truth, and expressly acknowledging that a person who provides a false matter commits an offence.

Sunset or sunrise?

These reforms mean that, even with social distancing requirements in place, important documents can continue to be made, and the scope for delays in proceedings is reduced. However they can also provide long sought-after benefits in terms of efficiency and cost-effectiveness.

At this stage, the regulation (having been made under the COVID-19 Emergency Response Act 2020) will expire on 31 December 2020. In the meantime, it is hoped that practitioners, clients and the courts will experience the benefits of these reforms such that they will become a permanent feature of modern day litigation.

1 See the Justice Legislation (COVID-19 Emergency Response—Wills and Enduring Documents) Amendment Regulation 2020
2 See the Justice Legislation (COVID-19 Emergency Response—Wills and Enduring Documents) Regulation 2020
3 See the explanatory notes.

This article may provide CPD/CLE/CIP points through your relevant industry organisation.

Posted in LJ Gilland Real Estate Pty Ltd

Which rental properties will be most affected by COVID-19? & FREQUENTLY ASKED TAX QUESTIONS FOR RENTAL PROPERTIES AFFECTED BY COVID-19

Which rental properties will be most affected by COVID-19? & FREQUENTLY ASKED TAX QUESTIONS FOR RENTAL PROPERTIES AFFECTED BY COVID-19

http://www.ljgrealestate.com.au/index.php?lan=ch

Most commentators are predicting that rents will drop in the coming months due to less tenant demand and more supply.

According to Domain figures, the number of rentals hitting the market was up 18 per cent in early April compared with the same period last year.

So, will this apply across all rental markets, and which rental markets will be most affected?

Tourist hotspots

Areas like Port Douglas, Gold Coast, Sunshine Coast have long been a hotspot for Airbnb and short-stay accommodation servicing a short and medium-term international market.

Typically some of Australia’s strongest rental markets, now the areas are experiencing an oversupply. The exodus of tourists coupled with the short-term rental ban has forced landlords to seek longer-term tenants.

Many rental properties are vacant, forcing landlords to discount their rent to attract tenants.
While the good news is that this situation is temporary, the bad news is we don’t yet know when…

View original post 1,314 more words

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