Which way for the Aussie dollar?

The Aussie dollar reached parity with the US greenback in October 2010 and has maintained its strength since. But how much longer can this run last?

“What goes up must come down” might be an essential feature of gravity, but many others believe the Aussie dollar is held to the same principal. The dollar reached parity with the US greenback last October – the first time since it was floated in 1983. Since then, the dollar has inched upwards nudging $US1.10 in early May. Continue reading Which way for the Aussie dollar?

Tax tips for savvy investors

It’s that time of year again, when thoughts turn to tax returns and receipts. But are you making the most of your tax benefits?

There can be numerous tax and other benefits associated with owning an investment property. The trick is to know what they are and how to make the most of them over the short and long term. But what are the key tax benefits available to investors? Continue reading Tax tips for savvy investors

RBA: Rate hike ‘necessary’ at some point

The central bank has again signalled that interest rates will increase “at some point” but says it will wait for more news on the state of the international economy and on Australia’s domestic demand.

The minutes of the Reserve Bank of Australia’s (RBA) June 7 board meeting, show the bank believes inflation is being moderated by a high Australian dollar and recent lowering labour costs.

But the bank warned that growth in the resources sector may cause a gradual pick-up in inflation. Continue reading RBA: Rate hike ‘necessary’ at some point

Claim depreciation or miss out on deductions

All properties will suffer from maintenance issues but these can be compensated for through tax deductions.
Wear and tear happens — but that doesn’t mean owners have to lose out.

Bathroom tiles chip and crack, hot-water systems break down and carpet can acquire indelible stains. Just a few signs of the wear and tear of everyday living that come with owning a house or apartment. But if maintenance issues are annoying for owner-occupiers, they can be doubly so for property investors. Continue reading Claim depreciation or miss out on deductions

The great power burial

In many new areas, powerlines are going underground. But if you live in an older area, would you fork out for the privilege?

A paper released last year by the Crawford School of Economics and Government at the Australian National University found that underground powerlines could increase a home’s value by 3 per cent. That doesn’t sound much, but on a $500,000 property, it equates to $15,000. Continue reading The great power burial

Home owners going backwards since the ’70s

Australia’s first home buyers are now six years older than four decades ago, with new research showing average borrowers wait until their thirties before taking on large amounts of debt.

Underscoring the nation’s problem with housing affordability, a new survey of home owners and aspiring first home buyers shows one in five first home buyers used more than 50 per cent of their income to service their debt. Continue reading Home owners going backwards since the ’70s

Rental market – Strike while the iron is hot!

How is the current rental market affecting property investors?

It’s a good question and the answer is highly encouraging.

It relates to the shortage of rental properties as highlighted in recent media articles and the fact that population growth is outstripping construction and investment.

As The Property Shop principal, Hugh Bateman agrees, this is not surprising, given that Australia’s resident population is expected to top 22,608,000 this month.

While that’s the big picture, Hugh is aware that investors want to know just how this situation is impacting locally in the rental market. Continue reading Rental market – Strike while the iron is hot!

A Landlord’s Guide to Renting

Your ideal tenant pays their rent on time, looks after your property and promptly notifies you about necessary repairs.

If you are managing your own rental property, there are things you can do to ensure a tenant meets your expectations. If you have engaged an estate agent, communicate these tips with them.

Provide the guide

You must give your tenant a copy of the New Tenant Checklist on or before the day they move in. This guide, available on the NSW Fair Trading website, informs your tenant of their rights and responsibilities.

Respond immediately to urgent repairs

Repairs are your responsibility – but the onus is on your tenant to notify you about any repairs before further damage occurs. You must respond immediately to your tenant’s request for urgent repairs.

When your tenant moves in, give them an urgent repair contact available to answer calls at any time. You should also consider providing the direct number of your electrician or plumber.

To prevent the need for repairs, create a manual for your property (similar to those found in hotel rooms) containing clear instructions on using the various amenities such as heaters, cooking appliances, and spa or swimming pool equipment.

Conduct regular inspections

Exercise your right to conduct regular inspections of your property, so you can identify problems and address them before it’s too late.

General inspections of premises (no more than 4 times per year) require at least 7 days written notice; or at a date and time agreed with your tenant.

Your tenant must keep your property reasonably clean, not cause any damage or nuisance, and not use it for illegal purposes. If you find your tenant is not meeting these requirements, send them a written notice to fix the problem.

Conducting regular inspections of your rental property can save you time and money.

Consumer Affairs Victoria recently inspected a property a tenant had vacated – 74 old tyres had been left behind in the back yard. The landlord had to pay $30 per tyre to have them removed. Had he exercised his rights to inspect the property earlier, he may have discovered what was happening long before the situation got out of hand.

Maintain smoke alarms

The residential tenancy agreement states that the landlord will install and maintain smoke alarms according to the standards in the Environmental Planning and Assessment Regulation 2000.

You should change the smoke alarm batteries at least once a year; it’s a good idea to co-ordinate this with your inspection of the property. For more information, visit changeyourbattery.com.au

How NSW Fair Trading can help

Find out more about the rights and responsibilities for you as landlord, and your tenant, plus all the forms you will need, at fairtrading.nsw.gov.au/Tenants_and_home_owners.html.

You can also contact them on 133 220.

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