Great question and addressing mould concerns requires collaboration between tenants and landlords.

Mould is a type of fungal growth that generates minuscule particles known as "spores." When inhaled by individuals with sensitivities or allergies to these spores, health issues may arise. These may manifest as nasal congestion, irritation of the eyes and skin, and in some cases, wheezing. In more severe instances, mould can exacerbate asthma symptoms in affected individuals. Hence, it is crucial to prevent the proliferation of mould and mildew.

Landlords, for starters, are mostly obligated to provide new tenants with a mould-free environment as part of upholding minimum standards, which vary by state and territory.

In Queensland, properties must be free from vermin, dampness, and mould, excluding cases caused by tenants. In New South Wales, adequate ventilation is required. South Australia mandates properties to be reasonably draught-proof, weatherproof, and free from mould or other irritants. Similarly, SA rental properties should be reasonably free from moisture or dampness. However, the Northern Territory and Australian Capital Territory have no specific regulations in place, while in Victoria, properties must be entirely mould-free – dependant on the building structure.

However, even if a property is vacant, not all mould is easily visible. Therefore, tenants should quickly notify their Raine & Horne Property Manager of any indications of mould or mildew, as well as any issues that might lead to the formation of these fungi, such as leaks in the roof, walls, pipes, or indoor plumbing. Additionally, poorly sealed windows and insufficient ventilation in bathrooms and kitchens can encourage the growth of mould. Upon receiving notification, the Property Manager will organise suitable tradespeople to investigate and resolve the issues.

Certain properties may be more prone to mould due to factors such as age, structural issues, location, or insufficient ventilation. In such cases, landlords are typically responsible for mould remediation.

Blocked roof gutters can exacerbate mould problems, particularly after severe weather conditions such as storms and heavy rainfall. Tenants should report blocked gutters to their landlords, who are responsible for clearing them. Failure to address this issue can lead to water overflow and subsequent mould growth, along with potentially costly structural damage.

Furthermore, tenants are responsible for removing surface mould to the best of their ability, as outlined in their tenancy agreement. Environmentally friendly cleaning solutions are available for this purpose, making mould removal safer and more effective than ever before.

For information about the property market in a suburb or town you’re considering for investment, reach out to your local Raine & Horne office without delay.

Yes, it’s possible to prepay deductions on your investment property before 30 June, as confirmed by my colleague Des Besanko. Des is the Managing Director of eight Raine & Horne offices across eight Raine & Horne offices spanning from Brisbane Central to Mackay in Central Queensland. Helpfully, Des is a Fellow of the Institute of Public Accountants (IPA).

That being said, Des suggests you must have the necessary paperwork to execute this process. We’ll delve into the specifics shortly. 

Typically, most landlords postpone claiming deductions for investment property expenses, such as repairing damaged roof tiles or replacing rusted gutters, until after 30 June. However, Des suggests a proactive approach, advocating for spreading these deductions throughout the year. Des advises utilising the ATO’s “pay as you go (PAYG) withholding variation” form, which is accessible on their website (https://www.ato.gov.au/forms-and-instructions/payg-withholding-variation-application). This form enables landlords to “bring forward” their tax deductions, whether weekly, fortnightly, or monthly, aligning with your payment frequency.

Landlords can complete this form either with the assistance of their accountant or independently, submitting it directly to the ATO. Given that specific questions or complexities are involved, seeking help from an accountant could be beneficial. 

Once submitted, the ATO will review the form and, if approved, notify your employer to adjust the tax amount they are taking from your pay packet accordingly.

According to Des, this underutilised tax strategy can alleviate a landlord’s holding costs. He says, “This strategy is particularly pertinent given the current financial climate, where the cost of living and interest rates are increasing, resulting in higher cash outflows. Therefore, this strategy presents one potential method of mitigating some of that financial strain and providing extra cash flow to landlords.”

Des also maintains very few investors know they can bring forward their deductions and urges all landlords to explore this strategy. However, if you’re unsure about the process involved, it’s always recommended to consult with your accountant or directly with the ATO for guidance.

If your current tenancy agreement is approaching its end and the tenants have expressed their intention to vacate, this presents a favourable opportunity to enhance the property’s tenant appeal.

Typically, the recommendations for improving the property remain consistent regardless of the season. However, for houses, it’s worth considering investing in improved insulation, especially during the colder months. Improved insulation can significantly benefit renters during winter by retaining heat for extended periods, reducing the need for excessive heater usage.

Moreover, integrating extra sustainable elements into a property proves to be a prudent investment approach, given that various surveys highlight millennials’ willingness to invest more in products with sustainable attributes. On a related note, optimising your lighting ahead of the winter’s shorter days is another strategy to contemplate. Consider switching to LED light bulbs, which provide enhanced brightness and usually have a longer lifespan compared to traditional globes.

If you have a fireplace, make sure to hire a chimney sweep. The worst scenario would be for your new tenants to start a fire only to have a blocked chimney fill the house with smoke.

Typically, enhancements to an investment property don’t need to cost an arm and leg. It might be as simple as giving the kitchen a facelift with new cupboards and fittings. 

If your budget allows, it could be worthwhile to enhance your property by investing in an air conditioner, especially if it gets really chilly in winter. Upgrading tatty carpets is another option to consider. Moreover, new carpet can help keep your home cosier during winter while potentially reducing your electricity expenses. Carpets also offer superior acoustics, creating a quieter environment compared to floorboards.

Improving the look of your bathroom or kitchen is crucial, as issues such as cracked tiles can give the impression of neglect towards the property. Replacing loose tiles is a simple yet effective way to enhance tenant appeal while conveying the right message about your care for the property.

Also, don’t forget to focus your improvement lens on outdoor areas such as balconies and gardens. Evaluate the state of these spaces and the building exterior, considering how they might influence the first impressions of those attending your open for inspections. If the exterior fails to mirror the property’s quality, this might put off some tenants. Consider potential improvements such as repairing broken windows or railings while presenting well-maintained lawns and gardens is a must. Ensure, at the very least, that any fallen autumn leaves are raked up.

Moreover, adding some plants to outdoor spaces, such as balconies, can create a more inviting atmosphere for the property.

For additional information regarding the property market in a suburb or town you are contemplating for investment, contact your local Raine & Horne office today. 

With Easter hopping madly towards us like hyperactive toddlers on a sugar rush, there are plenty of ways to ensure the only uninvited guest at your place is the one with floppy ears and a fluffy tail.

With the addition of school holidays and Anzac Day, many Australians are likely to opt to take a vacation this autumn. Regrettably, this opens the door for criminals to escalate the occurrence of felonies that already appear to be increasing.

Recent data from the Australian Bureau of Statistics reveals a notable increase in break-ins since the end of the pandemic. Approximately 2.0% of households (194,100) encountered a home invasion in 2021-22, marking a rise from the lowest recorded rate of 1.7% (171,600) in 2020-21[i]. This shift coincided with sustained periods of lockdowns and COVID-19 restrictions across Australia.

Protecting your belongings is crucial for homeowners and renters, especially as Easter approaches. Criminals do not discriminate between the two. As the holidays draw near, it’s wise to consider renter’s insurance to safeguard your possessions and mitigate potential losses from burglaries and other unexpected incidents.  

Tailored for tenants, the renter’s insurance shields against financial losses from theft, weather-related harm, or accidental loss. It extends protection to fixtures within the rental property, covering unintended damage. 

Renter’s insurance covers all items within your residence, such as furniture, carpets, rugs, clothing, jewellery, toys, and tools. However, it’s important to note that items in the pantry, including your stash of Easter eggs, can’t be insured – so take them or eat them!

Furthermore, fittings and fixtures are excluded from the coverage, and your car is not included in the protection offered by renter’s insurance.

Some insurers will put claim limits on expensive items such as jewellery, art, cameras, and other pricier items. If you have possessions that fall into these categories, listing and insuring them separately on your policy might be worth listing and insuring them separately. 

Like many other insurance types, renter’s insurance policies differ among insurers. Therefore, comparing policies to identify the coverage level that aligns best with your requirements is beneficial. Moreover, premiums are influenced by factors such as the perceived value of your belongings, the location of your rented property, the type of property, and the extent of home security measures in place.

Aside from securing renter’s insurance, security-conscious tenants can take a few straightforward measures before embarking on an Easter break. 

First, be sure to tell friendly neighbours about your holiday plans so they can keep watch on your property and grab any mail from your letterbox. Additionally, ask if they could possibly put your garbage bins out on collection day and bring them back in. 

The key is to give off the impression that your rental home is still inhabited during your vacation, aiming to discourage potential burglars and guarantee a happy autumn holiday season for yourself.

For additional tips for safeguarding your rental home this Easter holiday season, contact your local Raine & Horne office today. 

https://www.abs.gov.au/media-centre/media-releases/break-ins-increase-after-record-low

Over the years, a perpetual debate has centred around investing in residential property versus shares. While opinions vary, both investments exhibit distinct characteristics and can diversify your investment portfolio. 

For starters, informed observers generally agree that property and shares offer comparable returns over an investment cycle of at least ten years, often achieving annual gross returns of 8 – 10%.

However, on a risk-weighted basis, residential property tends to outperform shares, primarily due to the lower volatility of the bricks and mortar market. Unlike the share market, which experiences daily price fluctuations due to constant buying and selling, the property market is characterised by greater stability. The transparency of share prices, influenced by factors such as company performance, external political and economic conditions, and the lack of investor control over these variables, contributes to the higher volatility of shares.

The uncertainties and frequent swings in the stock market have prompted a shift among self-funded retirees, self-managed superannuation funds, and individual investors towards less risky alternatives, such as residential property.

Residential real estate returns have even defied higher interest rates over the past year or so, with average values across the nation up by more than 8% and 12.8% when you add returns from rents, according to the latest from CoreLogic[i]. Drilling down, the results are best in Perth, where values are up 16.7% (total returns 22.2%) and Brisbane, where values increased by 14.8% and total returns by 19.5%.

Moreover, the increases in values and total returns during this period can partly be attributed to a shortage of long-term rental accommodation and heightened rental demand.

Furthermore, Australia is presently facing a significant housing scarcity, as data shows a 2.1% decrease in home starts for the 2023-24 period, totalling around 170,100. This figure must catch up to 200,000 homes required annually to accommodate population growth. This shortage has contributed to rising house prices and rental rates. Therefore, with consumer confidence on the rise and financial markets predicting interest rate cuts by mid-year, history suggests that the current climate presents an opportune time for residential real estate as an investment option.

However, it would help to consider consulting with your financial advisor before deciding on your upcoming investment strategy.

For additional information regarding the property market in a suburb or town you are contemplating for investment, contact your local Raine & Horne office today. 

https://www.corelogic.com.au/__data/assets/pdf_file/0012/21207/CoreLogic-HVI-FEB-2024-FINAL-wCPI.pdf

https://masterbuilders.com.au/housing-accord-targets-within-reach/

It’s easy to assume home buying should be your first step on the property ladder. But there’s a lot to be said for making your first property a rental investment.

Here’s what to consider.

• Vacancy rates Australia-wide are at a tiny 1.1%*

Today’s super-tight rental market means your rental property should have no trouble attracting tenants. It lets you earn rent from day one –that’s extra income to pay your mortgage!

• Pick from a wider range of locations

Buying as an investor means you can choose to buy anywhere including interstate. This can open up opportunities to buy in more affordable locations that are better suited to your budget.

• Rental income + tax savings = more cash

As an investor you can expect to receive rental income as well as generous tax savings. In 2023, rents climbed by 8.3% according to CoreLogic, while property investors often enjoy valuable tax deductions through ‘negative gearing’. That’s where the ongoing property costs outweigh the rental income you receive. This creates an annual loss that can be offset against your regular wage or salary, potentially delivering substantial yearly tax savings.

• Your mortgage interest is tax deductible

What’s not to love about claiming mortgage interest on tax? It can make an investment property a lot more affordable than buying as an owner occupier (in which case property costs are not usually tax deductible). That said, be sure to speak with your tax professional to know which property costs you may be able to claim on tax.

• You won’t be eligible for first home buyer support schemes

Buying your first property as an investor means you won’t be eligible for first home buyer support schemes. However, the likelihood is that the ongoing tax savings of negative gearing will far outweigh the one-off support offered to eligible first home buyers.

• You need to plan where you’ll live

Buying as an investor gives you a head start on the property ladder so you can benefit from upticks in values. But you’ll still need somewhere to live. That may mean living at home for longer or rentvesting. Either way, check that your personal cash flow can handle the financial demands of property ownership.

The bottom line is that making your first property a rental investment can be a cost-effective (and tax-friendly) way to get started in the housing market. A well-chosen rental property can help you grow equity – a resource that can help you buy a home to live in at a later stage, often without the need to stump up a cash deposit.