Monthly Archives: March 2018

Brisbane Unit cycle has been characterised by record volumes of high-rise apartments

While Brisbane’s apartment market is generally discussed in negative terms, there is also much to be positive about here. It’s absolutely true that too much generic investor-targeted stock has been built, including 60 square metre apartments, or blocks built close … Continue reading

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ALGESTER – 2 BEDROOM IN A SMALL COMPLEX OF 3 FOR LEASE

***NBN READY*** 2 BEDROOM HOME IN COMPLEX OF 3 – UPDATED PHOTOS TO COME SOON! https://youtu.be/fiqFY9drd28 ALL PROPERTY ENQUIRIES ARE TO BE SUBMITTED THROUGH THE WEBSITE BY CLICKING “EMAIL AGENT” If applying for this property using 1Form, please email to admin@ljgrealestate.com.auContinue reading

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How Do Dwelling Values Compare Across Australia’s Capital Cities?

How Do Dwelling Values Compare Across Australia’s Capital Cities? Brisbane – the Sydney median house value is currently 96.9% higher, although the gap has reduced recently, the gap was previously this great in early 2003. The average premium for Sydney houses … Continue reading

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The Experts Maximise yields with granny flats (Part one) Bookmark and Share I’m hearing more and more about investors using granny flats to maximise their rental yields. This is an increasing trend occurring in New South Wales as a result of changes to the planning laws back in July 2009. The State Government made the changes to encourage greater supply of affordable housing in a climate of chronic undersupply. It was a clever move and a fantastic win-win idea. With every granny flat built, a new home is made available to tenants, generally at a lower price than an apartment – a big win for tenants. And because they cost very little to build, the yields on granny flats can be well over 10 per cent – so a big win for investors. The new laws made it easier to get approval for granny flats and they also allowed them to be rented out. Previously, granny flats were only allowed for a dependent relative such as a teenager, or obviously, a grandparent. While you can build a granny flat out the back of your home and rent it out positively geared, you can also add a granny flat to an existing investment property to increase the yield. In some cases, adding a granny flat can turn a negatively geared investment into a neutral or positive one overnight (as long as you can find a tenant and there can be issues with this, which I’ll get into later). Granny flats are also cheap to build. I’ve seen advertisements for granny flats, fully installed, for less than $70,000. Obviously, you’ll pay more depending on the size of the flat and how many rooms you put in it. Say you spent $80,000 and rented it out for $250 per week. That’s a remarkable 16 per cent yield. Of course, yields vary nationwide, so talk a local property manager about how much a granny flat in your area typically rents for to determine your potential income. You should also ask them how easy it is to rent them out. Unfortunately, the opportunity to rent out a granny flat is only available in NSW, Tasmania, the Northern Territory and, as of December last year, in the city of Fremantle, Perth. Tasmania and NT have more restrictions in place than NSW, such as the flat having to share connections to essential services with the main house. Here are the basic rules for granny flats in NSW. If you can meet these criteria, you’ll get approval very quickly through a private certifier or your local council: Your block size must be a minimum 450 square metres Your block must have a minimum 12-metre frontage You need a three-metre clearance between the flat and the back fence You need about a one-metre clearance between the flat and the side fence The floor area of the flat can’t exceed 60 square metres The floor area of the flat and the main residence can’t exceed local council restrictions The height restriction is 8.5 metres. Interested? If you do a quick Google search, you’ll find many companies specialising in granny flats. Check out some of the designs and you’ll be pleasantly surprised. Granny flats are no longer drab little cottages; there are plenty of stylish designs available that will appeal not only to you but also to your prospective tenants. Now, there are some risks. I had a chat to our head of network property management, Michael Connolly, who confirms they are seeing a few more clients renting out granny flats in areas where there are larger blocks of land, such as Sydney’s Western Suburbs and Northern Beaches. But he does have a few words of warning. Next week, Michael and I will fill you in on the pros and cons of using granny flats as an investment strategy. We’ll also tell you about our experiences in leasing houses with granny flats attached or on the same lot. Stay tuned and please write to us if you have a granny flat that you’re using for investment – we’d love to hear about your experience.

Posted in LJ Gilland Real Estate Pty Ltd

Purplebricks fined by Queensland Fair Trading over misleading fees

Real estate disruptor Purplebricks has been fined $20,000 fine by the Queensland Office of Fair Trading. It was over misleading customers about how it charges its fixed fees in agreements with clients between November 2016 and June 2017 that did not … Continue reading

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Forced sales for Queensland unit owners?

  As buildings age and the cost of maintaining those buildings increases, we are sometimes asked how a Body Corporate can agree to dissolve and sell the property to a developer.   This can be a tense time for each of the property owners … Continue reading

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