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Dec 15, 2022
What Do I Need To Know About The Changes To Tenancy Laws In 2022
Ensure you understand your landlord & tenant obligations post the October 2022 changes. As of the 1st of October 2022 new tenancy laws have come into effect, here's what you need to know as either a landlord or a tenant. Landlords: Ending a tenancy agreement As of the 1st of October 2022 managing parties (landlords and their representatives) have more reasons available to specify for ending a tenancy, and they are no longer able to end a tenancy without providing a specific reason. For a fixed term tenancy, this reason might be the completion of the fixed term agreement, however for periodic tenancy agreements a specific reason under the act must be given. You can read more about managed parties ending a tenancy agreement in this RTA Factsheet. Tenants with pets As of the 1st of October 2022 the legislation in relation to tenants and their pets have changed with new legislation specifically related to reasons in which landlords are able to refuse pets at a property. You can access more information with regard to the process to be followed when a tenant requests to have a pet on the premises via this RTA fact sheet. Repair orders As of the 1st of October 2022 the legislation in relation to repair orders has been amended. Tenants now have the right to apply for a repair order via the Queensland Civil and Administrative Tribunal (QCAT) in order to ensure that the managing party takes action to address required repairs. This RTA fact sheet contains the information you’ll need in relation to repair orders. Tenants: Ending a tenancy agreement As of the 1st of October 2022 tenants have more reasons available to specify for ending a tenancy agreement. This RTA fact sheet offers a valuable resource for tenants with regard to understanding the reasons available to end a tenancy agreement and the necessary forms/process required. Tenants with pets As of the 1st of October 2022 the legislation in relation to tenants and their pets have changed with new legislation specifically related to reasons in which landlords are able to refuse pets at a property. As a tenant you must seek approval to keep a pet on the property, failure to do so is a significant breach, however reasons why a landlord can decline your request have now been made more fair - you can access more information with regard to the process to be followed when requesting to have a pet on the premises via this RTA fact sheet. Repair orders As of the 1st of October 2022 the legislation in relation to repair orders has been amended. Tenants now have the right to apply for a repair order via the Queensland Civil and Administrative Tribunal (QCAT) in order to ensure that the managing party takes action to address required repairs. This RTA fact sheet contains the information you’ll need in relation to repair orders. For a full breakdown of all changes and resources related to the changes that took effect as of the 1st of October 2022, the RTA is your best resource, alternatively you can reach out directly to the Property Management Team at Southern Downs Realty to discuss your specific queries.
Oct 6, 2022
How To Choose The Right Investment Property
Property investment opportunities in the Warwick region. Location Choosing a great location for your investment property is really important. Not only do you want this property to experience growth in its long term value, you want to ensure that it is easy to keep tenanted with tenants you want living in your house. So what are the best ways to identify a suitable location? Look for growth areas: Areas that are currently undergoing gentrification can offer great opportunities for investment. Traditionally these areas have had less than desirable reputations, however, owner occupiers are now moving in and the suburb is changing. Look out for the ripple effect. Perhaps you have noticed a suburb that has recently experienced significant growth, so significant, you can no longer afford to buy there. The chances are that neighbouring suburbs are still playing catch up, if this is the case, you may be in with the opportunity to buy in a neighbouring suburb just before it experiences its own growth. Investigate supply & demand. If the suburb that you are interested in buying in has strong demand, but no further opportunity for new properties to be built (high demand / limited supply) then this could be a good opportunity to purchase a property where you’ll see strong growth in value due to high demand. Are there any large infrastructure projects currently underway? Oftentimes when significant infrastructure is underway this drives demand for housing from workers involved in the project. INVEST WHERE YOU KNOW Oftentimes you are already familiar with the good and not-so-good suburbs near to you. You know where the good school catchments are, you know where there are new bougie bakeries and cafes. You know where there is growth and opportunity. Don’t underestimate your own insider knowledge! LOW VACANCY RATES Do some research on suburbs that have low vacancy rates. Where is there currently a high demand for rentals and why? Which particular properties are most in demand? Answering these questions can help you to identify a region with great potential, and can help you to identify… The right property You’ve done your research as to which suburbs and regions offer the most potential for growth. And which suburbs have low vacancy rates. You also have a pretty good idea as to who is looking for rental properties in this area. So how do you identify the right property? PROPERTY TYPE First and foremost you need to identify the right type of property for the demographic who are driving the demand in the suburb you have identified. In order to do that, you need to identify the demographic driving demand. Is it retirees who have liquidated their assets and are looking to live in luxury, closer to town before they have to move into aged care? Is it families who need to live within the suburb in order to access a particular school or to leverage great local amenities for children? Once you know exactly who it is that you will want to rent your home, you can start to think about the sorts of things they would want from a home. Retirees might want fewer steps, and less maintenance (small or no garden) and perhaps less bedrooms. Families will likely want a dedicated master with ensuite, at least 3 bedrooms and perhaps a second living area that can be leveraged as a playroom/kids lounge. IDENTIFYING OPPORTUNITY What small improvements can you offer to help entice your ideal tenant (security/dishwasher etc)? If there are small and inexpensive additions or changes that you can make to a property to add value and desirability, this makes the property more desirable, but also offers the potential to drive up the value of the property when the additions are more substantial. Is this property still going to be desirable in 10 or 20 years time? If the property you are considering has long term appeal, it is likely to be a better investment. Period properties, or properties with larger blocks than standard properties in the area are great examples of properties that will maintain their appeal into the future. OTHER CONSIDERATIONS Choose a low-maintenance property. Tenants will rarely care for your home like you would. Huge gardens requiring lots of upkeep will often quickly fall into disrepair. A home with a large timber deck with no roof will regularly need refinishing, natural stone floors will need regular sealing, carpets will need regular replacing, all things which will drive up your expenses and eat into your profits. Fast turnaround from purchase to rental is important. The longer that you are paying a mortgage with no tenants in place, the deeper into negative return you fall. Ensuring that you can quickly undertake any necessary repairs and renovations once settlement occurs so you can get tenants in place as soon as possible is of vital importance. Be strategic Buy a property that would appeal to owner occupiers (their desire to purchase similar property will drive up the value of your property). Don’t buy an investment property for an inflated price - ensure that market factors aren’t causing a temporarily inflated value. Consider the land to asset ratio of the property. Increasing land values are what are most likely to drive up long term property value. So if the land accounts for a larger portion of the value of a property it is likely to see greater long term growth in value. Buying in an area that historically has strong capital growth, will mean it is more likely to continue to have strong capital growth. Ensure that you don’t buy an investment property when past growth has been industry dependent (oil, gas, mining, fisheries, railways) all have a limited lifespan, so buying an investment long term that is dependent on an industry that you have no control over is risky. Look for a property where you are able to accelerate growth in value via renovation. Work with the right team to help you succeed. Find a trusted real estate agent to help you identify the properties within your chosen region with the greatest potential, leverage a great mortgage broker and ensure that your loan setup will work for you, and most importantly, ensure that you have a trusted property manager who will look after your property as if it were their own. Is Warwick a good place to purchase an investment property? The short answer is yes. HOMES IN WARWICK According to propertyvalue.com.au the median property value in Warwick increased by in excess of 20% in the last 12 months (almost 5 times the national average). However, despite this increase the median property price is $160k (33%) less than the national average. When we look at rental returns, the median rent in Warwick is $340 per week, which is only 14% less than the national average. Demonstrating strong rental returns on competitively priced properties. [caption id="attachment_9860120" align="aligncenter" width="981"] https://www.propertyvalue.com.au/suburb/warwick-4370-qld Accessed: 3.12pm 05/10/2022[/caption] UNITS IN WARWICK When compared to the National average, units in Warwick don’t look like a great investment, as a matter of fact, if we look at the median price change, we can see that in the last 12 months the median has slightly decreased - as prices have remained steady. However, with a median sale price of $250k, units in Warwick are an affordable investment, and with Warwick units delivering a median gross yield (the annualised median rent, divided by the median sale price for the suburb (last 12 months) displayed as a percentage) of 5.2% which is over .5 of a percent higher than the national average, these units are offering a strong return on initial investment. [caption id="attachment_9860119" align="aligncenter" width="974"] https://www.propertyvalue.com.au/suburb/warwick-4370-qld Accessed: 3.12pm 05/10/2022[/caption] If you are looking to buy an investment property in Warwick or the Southern Downs, the team from Southern Downs Realty would be more than happy to assist you with the whole process. Our sales team can help you identify the best available property for you, and we can ensure that our property management team gets your investment off to a wonderful start, with their diligent attention to detail, and superior managerial skills.