Wednesday, August 26, 2009

What is the role of a real estate agent?



What is the role of a real estate agent?

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Agents understand that buying or selling property is as much a matter of the heart as the head. Drawing on their vast property expertise and knowledge of your area an agent will:
Provide a realistic indication of the value of your property.
Help you decide whether to list the property for sale, put the property out to tender or to auction.

  • Organise, attend and record prospective buyers at open for inspection days.

  • Manage enquiries about your property.

  • Provide access to more potential buyers via their own prospect database.

  • Handle sale negotiations on your behalf and strive to achieve the best possible result.
    Advise on and coordinate the marketing of your property, including preparation of flyers, floor plans and photography.

  • Prepare a professional advertising program for newspapers and online.

  • Prepare a Contract of Sale.

  • Provide guidance on conveyancing, legal and financial services.
www.realestate.com.au

Monday, August 24, 2009

Estate agents gear for bumper spring season

Real estate agents can look forward to a bumper spring selling season, statistics from RP data today revealed.
According to the property information provider, nearly 34,000 pre-listing reports, known as Comparative Market Analysis or CMAs, have been prepared by estate agents in the last two weeks, a 5 per cent rise on July’s pre-listings.
RP Data executive general manager David Williams said today’s data also represented a 36 per cent increase on this time last year.
“CMA activity has been trending upwards since the start of the year, signalling a dramatic increase in pre-listing activity and industry compliance,” Mr Williams said.
Other recent data releases from RP Data also point to healthy market conditions.
The national weighted average clearance rate is nudging 80 per cent and property values have increased by 4.5 per cent over the first half of 2009.

http://www.rebonline.com.au

Wednesday, August 19, 2009

Attention All Landlords Preparing for Tax Time!

What can you claim?
This year the Tax Office will be paying particular attention to investors with regards to:
1. Rental Properties
2. Dividends and Interest
3. Sales of Investments
4. Avoiding dodgy tax schemes
5. Savings for Retirement
It is important that you take the time to careful review your accounts and seek independent professional advice to assist you with preparing for tax time to avoid mistakes and costly fines.
Following is an overview of what can be claimed*. Remember, you need to have documentation to support all of your claims.
Advertising for a Tenant – This is a claimable expense if you have incurred advertising costs.
Body Corporate Fees – These are most commonly paid quarterly and cover the running costs of the building. It covers repairs, insurance, gardening, communal lighting, pest control, etc. This is a deductible expense.
Capital Works – This deduction is known as the “Special building write-off” and is based on the actual cost of construction to the owner. Building construction costs can be claimed and include engineering, drafting, architect fees, surveyor fees and excavation costs.
When a new owner is unable to determine the cost associated with building construction, an estimate can be provided by a qualified person such as a quantity surveyor.
Structural Improvements include extensions, alterations and improvements constructed after 26th February 1992.

Cleaning/Gardening – This is deductible and includes internal and external cleaning. Owners who do the cleaning themselves can only claim the cost of materials, not their own labour.

Commissions and Management Fees – Commissions and management fees are deductible and are usually charged as a percentage of the rent.

Depreciation – This is essentially a deduction for the cost of furniture, fixtures and fittings based on the asset’s effective life stipulation in the Depreciation Schedule. You can obtain a Depreciation Schedule from a suitably qualified person such as a quantity surveyor. This is often overlooked by property owners and can provide excellent tax deductions.
Example of depreciable assets:
· Air conditioning units (excluding ducts, pipes and vents)
· Lights, both fitted and freestanding, and including shades
· Removable floor coverings, rugs
· Garbage bins and compactors
· Window coverings
· Dishwashers
· Electronic security assets, intercoms
· Freestanding furniture
· Heaters, ceiling fans
· Hot water systems (including solar hot water heaters)
· Refrigerators, freezers, stoves, cook tops and range hoods
· Swimming pool filtration and cleaning systems
· Television sets, DVD players
· Washing machines, dryers.


Insurance – Insurance on building, contents, public liability and landlord insurance are deductible.

Interest – Interest on a loan to purchase, build, improve or repair a property is deductible. The purpose of the loan must be income-producing purposes.

Legal Expenses – These are generally incurred when a tenant defaults on rent and includes filing fees for the Small Claims Tribunal.
Office Supplies – This includes stationery, rent books, postage, and a percentage of computer costs can be deductible.
Pest Control – Pest control is deductible.

Rates – Rates, including council, water and sewerage, are deductible.

Repairs – Repairs are deductible subject to the following definition. “Repairing” is restoring or replacing the item to the condition it was in before it deteriorated without changing its essential character.
Any other repair, which improves the function or extends its life, may be considered an improvement rather than repair and is not an immediate deductible expense.

Travel – Travel is deductible if used for the collection of rent, repairs, inspections and preparing the property for new tenants.
Included are motor vehicle travel and airline travel as well as accommodation, car hire and meals. If the rental property is in a different town to the taxpayer’s residence, travel must be pro-rated to the actual number of days spent attending to the property.

The Australian Taxation Office is increasingly using data matching to check on claims made by taxpayers. However, the ATO does make mistakes. Since the Australian Taxation System works under “self-assessment”, it is up to you to be able to substantiate and prove you are entitled to any claims you make. The best way to do this is to organise your receipts for your rental property so you get everything to which you are legally entitled. ■


* This is a summary of important items that can be claimed and is not a full comprehensive list.

Tuesday, August 18, 2009

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Monday, August 17, 2009

PROPERTY PRICES RISE

Resilient housing market bucks overseas trends!
___________________________________________

Indications of stabilisation in the Australian residential housing market as strong. The first quarter of 2009 saw Australian home prices increase. This is exciting news for the property market, which is buckling the dramatic downward trend seen in many overseas markets.

An April report release by RPDATA (
http://www.rpdata.com.au/ ) saw house and flat prices rise by 1.6 percent in the March quarter, with the growth occuring in February at 0.9 percent and March at 0.6 percent.
The positive outcome followed modest 3 percent falls in value of capitial city homes during 2008. largely due to mortgage rates peaking at 9.6 percent in August.
Improved housing affordability has been the main driver behind the price increases. According to the RP Data's director of Research, Tim Lawless, while the boost to the First Home Owner Grant (FHOG) certainly sparked demand , and the supply of available properties has been low, the dramatic drop in interest rates has been the key factor.

The first homebuyer sector represents less than 30 percent of all property sales, while the 3 percent interest rate as at May 2009 is the lowest offical cash rate seen for 49 years. As a result, the ratio of total household interest payments to disposable income has fallen rapidaly from 15 percent to 10 percent according to Christopher Joye, Managing Director of Rismark International.
Both Sydney and Melbourne achieved growth of 2.4 percent in Median house prices, while Darwin home values grew by 2.8 percent. Sydney's median rose to $514,695 while Melbourne's rose to $426,423.

Melbourne also recorded the shortest average time on the market for houses, with the average home selling in 41 Days, 14 Days less than the national average of 55 Days. Brisbane enjoyed modest growth in the first three months of the year, with Median house values up by 1.4 percent.


The figures highlight the importance of keeping a close eye on the facts and maintaining an objective and balanced perspective amdist the deluge of negativity that is bombarding are airwaves.

Sunday, July 19, 2009

House Hunting the Easy Way!



Trying to find the right house to buy or rent can be a frustrating,
time-consuming affair. At fi rst, looking for a new home can be fun,
but as time passes and you become foot-weary inspecting one
home after another it can become a tedious chore.

However, Jim Byrne Real Estate has an easy way to fi nd you the
ideal home, one that will fi t the bill and facilitate finding the home
you want.
A search facility called Premium Tracker, which has been designed
by experts, has been set up on Jim Byrne Real Estate’s website that
enables purchasers to look for a home on the web. The facility offers
purchasers a far wider range of search criteria than other similar
sites.
Buyers can enter any one of a number of details that will enable
them to locate a home. For example they can specify how many
bedrooms and bathrooms they want, or how many car spaces, and
whether or not they want a lock-up garage or a carport.
Among other things, purchasers can specify the price range, which
suburb or suburbs they are interested in and whether they are selling
a home and whether or not they need fi nance.
The agency’s Principal, Jim Byrne, told Property News that one
problem facing both purchasers and tenants when they were looking
for a new home was the huge amount of choices facing them.
“Some people fi nd it daunting to face such a bewildering array of
properties. Rather than scroll through an endless number of homes


on some sites we give them the opportunity to key in those aspects
of the property they believe are most important. Then they can review
only those dwellings they know will suit them,” Jim said.
“When they’ve entered their search criteria, as well as looking at
properties already listed, they can be sent an email or SMS advising
them when a suitable home is put on the market.”
Asked for his opinion of the state of the market, Jim applauded the
Federal Government’s decision to extend the First Home Owners Boost
(FHOB) and said the decision would not just help fi rst homebuyers but
strengthen the market across the board.
“We strongly believe the grants have not only reinforced the lower
end of the market but also other sectors. The fact that houses in the
cheaper bracket have held their prices and in some cases actually
risen has seen a fl ow on effect, with many properties in the mid-range
also holding up well,” Jim said.
The First Home Owner Grant (FHOG) scheme initially paid a grant
of $7,000 to eligible fi rst homeowners but late last year the Federal
Government announced a First Home Owner Boost (FHOB). It doubled
the grant to $14,000 for those buying an established home and
trebled it to $21,000 for those buying a new home or building their
fi rst home.
The boost was set to expire at the end of June but in the May
Budget the Federal Government announced it was extending it for
another six months. The grants will continue as they are until 30
September and then from October until December will be reduced
from $14,000 to $10,500 for established homes and from $21,000
to $14,000 for newly constructed homes.
If you are buying, selling or leasing remember the team at Jim
Byrne Real Estate comprises experts with many years experience in
real estate. They can guide you about the best way to approach the
market and if you are a fi rst homebuyer they can also advise you
about which benefi ts you are entitled to.
In Victoria, the State Government is also making a contribution to
the First Home Owners Grants.
In regional Victoria the First Home Owners Grant for a newly
constucted home can be upto $36,500 but only for a limited time.
To find out more or visit the State Revenue Office Website –
www.sro.vic.gov.au