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Raine & Horne Mollymook Ulladulla Milton is a full service real estate agency with a reputation for expertise and a commitment to excellence. We take the management of your investment property seriously and believe our proactive approach is what sets us apart from our competitors. The consistent growth of our business is due to our proven track record of providing owners with service in which they have 100% confidence that their property is being well cared for.
Our focus is to maximise your return on investment and our trained staff with a hands on approach, together with our fine-tuned systems and cutting edge technology, will guarantee your peace of mind throughout your property investment journey. We are committed to providing a level of service unmatched in the industry and will communicate with you regularly about all the important matters relating to the leasing and management of your rental property.
Our team is highly trained in all facets of property management including constantly changing legislation
We believe communication is an integral part of our service to you and we will ensure you are involved in all decisions regarding your property
We have invested in various systems and technologies to ensure we deliver the best results for our customers
Our Property Managers understand market conditions and how this will impact the rental yield of your investment
Our local knowledge is backed by our collective strength and the comprehensive resources offered to our Property Managers by the Raine & Horne network
Properties under managements across the network
New tenants moved into their new Raine & Horne managed properties
Property Managers ready to support you through your property investment journey
For young Australians who want to enter the property market but can’t afford to buy a home in their desired location, ‘rentvesting’ offers a fantastic solution. This strategy is particularly valuable now, as property prices in Australia have risen 8% over the last financial year[i] while rent prices have stabilised[ii].
How rentvesting works
Rentvesting involves renting a property in the area where you want to live while investing in property elsewhere. This approach allows you to get onto the property ladder at reasonable cost by purchasing an investment property in a less expensive location while living in your preferred area.
For instance, if you want to live in Sydney, Melbourne, or Brisbane but lack sufficient savings for a deposit, you could rent a property in the capital city of your choosing while using your savings for a home loan deposit to purchase an investment property in a more affordable city, such as Darwin or Hobart, or a regional growth hub such as Wagga Wagga in NSW or Queensland’s Townsville. Properties in these alternative locations might also generate higher rental yields. According to the latest data from CoreLogic, the median price for an apartment in Sydney is around $855,468, with a gross yield of 4.0%. In Darwin, the median apartment price is $363,748, with a yield of 7.5%.
You can rent the Darwin investment property to tenants, using the rental income to cover the mortgage repayments and other associated costs. Buying an investment property in a more affordable location will mean lower mortgage costs, enabling the rental income to cover more of the loan repayments.
Over time, it may be possible to build up enough equity in the rental property to purchase another investment or to sell it and use the proceeds to buy a home in, or closer to your preferred location.
In NSW, Wagga Wagga, Bathurst, Orange, and Tamworth are good options for rentvestors seeking a first property. In Victoria, Ballarat and Bendigo tick plenty of boxes. In Queensland, coastal regions such as the Sunshine Coast, Gold Coast, Townsville, and Cairns are appealing to rentvestors.
Advantages of rentvesting
Flexibility: Rentvesting allows you to live wherever you want while building wealth through a quality, well-located property investment. A rentvesting strategy also offers flexibility, making moving easier if circumstances change, such as getting a new job in a new town or region.
Affordability: Purchasing an investment property in a more affordable location allows you to enter the property market sooner than if you were trying to buy a home in a more expensive area.
Tax benefits: Owning an investment property may come with tax benefits, such as the ability to claim deductions on expenses related to the property.
However, as you won’t live in the property, you will generally miss out on first-home buyer grants and stamp duty breaks. It’s essential to do your sums with the help of an accountant before committing to a rentvesting strategy.
Is rentvesting right for you?
Rentvesting can be a sensible way to enter the property market, especially for those who want to live in a more expensive area but can’t afford to buy there. By carefully considering the costs and benefits of rentvesting and working with a trusted and experienced real estate agent such as Raine & Horne, you can determine if this strategy is right for you.
[i] https://www.corelogic.com.au/news-research/news/2024/australian-homeowners-gain-$59k-wealth-boost-from-rising-housing-values-in-fy24
[ii] https://www.domain.com.au/news/rents-are-still-rising-across-australia-but-at-a-slower-pace-1298897/
As the flaming Olympic cauldron lights up the “magnifique” Paris skyline, the Brisbane property market is already blazing with excitement for the 2032 Olympics. Experts predict a massive 50% increase in property prices ahead of the global event, capturing the attention of investors and homeowners alike.
According to recent data from PropTrack[i], Brisbane’s property prices are already on a remarkable trajectory, growing at an annual rate of 14.14%. This impressive growth places Brisbane third on the national podium, behind Perth, which leads with a gold medal-winning 22.52% yearly increase, and Adelaide, which follows at 14.61%.
Market activity on the rise
The Queensland market is buzzing with activity as appraisals have surged by almost 14% since April, according to the latest data from Raine & Horne. This uptick indicates a strong interest from property owners looking to capitalise on the current favourable conditions. “Simultaneously, the number of buyers has increased by 15% over the same period, underscoring the heightened demand in the Brisbane market,” said Angus Raine, Executive Chairman, Raine & Horne.
This surge in market activity can be attributed to several factors, according to Angus. “The 2032 Olympics have undoubtedly fuelled optimism, as major infrastructure projects and global attention are expected to boost Brisbane’s economy and attractiveness.”
Angus adds that with perpetual attention focused on the southern capitals of Sydney and Melbourne, it is now time for Brisbane to shine in the run-up to the 2032 Olympics. "Moreover, now is the time to act if you're a homebuyer or investor because Brisbane is very affordable compared to the southern capitals. For example, a two-bedroom, two-bathroom apartment in Pyrmont within a javelin throw of the Sydney CBD will sell for around $900,000. A similar two-bedroom, two-bathroom apartment in Brisbane would cost between $520,000 and $550,000.
Infrastructure developments and economic impact
The Olympics are expected to bring substantial infrastructure developments to Brisbane, including transportation upgrades, new sporting facilities, and improved public amenities. Critical venue infrastructure, for example, is being funded by the Australian and Queensland Governments under the Brisbane 2032 Olympic and Paralympic Games Intergovernmental Agreement. This $7.1 billion venue infrastructure program will transform some of Queensland’s most significant venues and precincts[ii].
Gary Hassett, Queensland State Manager, Raine & Horne said, “These enhancements are not only geared toward the Olympic Games but are also aimed at long-term urban development.”
A prime example is the Olympic Park precinct, the most notable landmark to emerge post-Sydney 2000 Games, which sprung from a recast industrial wasteland. Despite facing challenges after the Games, the Park precinct, about 13 kilometres west of Sydney, has become renowned for its vibrant collection of world-class sports, entertainment, and business facilities. Hosting 230 businesses, Olympic Park accommodates a daily community of approximately 21,600 people and attracts over 14 million visitors annually. The 2030 master plan that aims to revitalise the Park’s legacy aims for zero carbon emissions and is anticipated to create more than 30,000 jobs[iii].
Gary adds, “Infrastructure projects linked to the Games are likely to enhance Brisbane’s liveability and appeal, making it an even more attractive destination for both domestic and international buyers and drive up demand for residential real estate.”
Increased tourism, job creation, and international exposure are among the other benefits that can drive sustained growth in the property market. “Brisbane is poised to leverage these advantages, with the property sector already showing signs of benefiting from the 2032 Games,” Gary concluded.
For a free and no-obligation appraisal of your property, reach out to your local Raine & Horne agent today to discover the true value of your property.
[i] https://www.proptrack.com.au/home-price-index/
[ii] https://www.statedevelopment.qld.gov.au/industry/brisbane-2032
[iii] https://olympics.com/ioc/news/sydney-2000-20-years-on-sydney-s-olympic-legacy-brings-comfort-and-hope-in-turbulent-times
This is a great question, especially with the news that rent prices across Australia are no longer rising at break-neck speed. The recent data from Domain[i] brings a ray of hope, revealing that affordability issues and a rise in the supply of rentals have produced improved market conditions for renters across most capital cities.
This news not only provides a positive outlook for tenants seeking greener pastures but also assures them of a smoother transition, provided they follow the necessary steps to ensure their existing bond is paid in full.
To ensure you can recoup your bond in full, read through the entry report you received from your property manager at the start of the tenancy. This report will show you the property’s condition when you moved in and what repairs and patch-ups might be required. For example, is there some damage you’ve caused to the gyprock walls or some stains on carpets that weren’t there before you moved in? Perhaps there are some nasty scuff marks on the skirting boards or a broken window? If required, you or a tradesperson must attend to these marks and repairs at your expense to ensure you get the bond repaid in full.
This level of rigour must also be applied to external areas, meaning pools and surroundings should be glistening and gardens and lawns presented in ship-shape order.
You must also remove all your belongings from the rental before the property manager conducts their exit inspection. Likewise, if you leave a rubbish heap on the front curb, don’t expect to get your bond back until the trash is gone. The good news is that many councils offer several free pickups yearly. Also, if you’ve been renting a house, put the rubbish out. If you can’t do it yourself, ask a neighbour to help.
As part of your exit strategy, and if you have the budget for it, consider commissioning the assistance of a cleaner to help return the property to the condition you initially found it in. This not only ensures a full bond refund but also reflects your responsible and considerate approach as a tenant. Typically, your Raine & Horne property manager can recommend a cleaner. Better still, going with the property manager’s preferred cleaner will give you a much better chance of claiming a bond refund in full. If the cleaner botches the job, the property manager will ask them to come back and address the problems. Using a cleaner means also one less job for you when moving house.
Also, be sure to return all the keys and other gadgets, such as garage door remotes, to the property manager on time and pay any outstanding rent or invoices. If you take all these steps, there should be no problem in reclaiming your bond in full. Also, don’t forget that if you or a removalist cause any damage while moving out, it could jeopardise getting your bond back in full. So be sure to consider hiring professional removalists.
Remember, your local Raine & Horne Property Manager is always there to guide and support you. Don’t hesitate to contact them for tips on ensuring you get your bond paid back in full. Their expertise and advice can be invaluable in this process.
[i] https://www.domain.com.au/news/rents-are-still-rising-across-australia-but-at-a-slower-pace-1298897/
This is a timely question, as recent national rental vacancy figures show positive signs for renters.
The latest PropTrack Market Insight Report[i] reveals a significant shift in the national rental market. The national vacancy rate, a key indicator for renters, rose to 1.3% in May, marking a notable increase of 0.08 percentage points from the previous month. This data suggests a more favourable environment for potential renters. Notably, Canberra recorded the highest vacancy rate at 1.76%, while Adelaide had the lowest at 1.03%, making it the most challenging city in Australia to find a rental.
It’s not just the national market that’s shifting. Local markets are also showing signs of change. For instance, according to SQM, in Sydney’s popular Inner West region, vacancy rates have risen to 1.5% from a 2024 low of 1% in February. Similarly, inner-city Brisbane has seen an increase, with vacancy rates now at 1.4%, up from 1.2% in February.
Due to slightly higher vacancy rates and increased stock, rental prices are stabilising. This trend is typical in winter, making it an excellent time to consider moving into a first rental or finding new accommodation. Additionally, fewer people move rentals in winter, leading to lower enquiries. However, the winter market conditions don’t mean you can simply rock up to an open home and expect to be immediately handed the keys to a rental property.
Securing a suitable rental property requires a rental application that ticks all the boxes. Your application must prove to landlords and property managers that you’re the best candidate, capable of paying rent and maintaining the property as outlined in the tenancy agreement. Your application will still have competition, so it must stand out. Include pay slips to verify income and references from previous property managers or employers to show you can take responsibility for looking after the property.
If you lack rental history, don’t worry. If you’re moving from your own home, you can use a sales agent’s reference, while first-time tenants can use employer references or ask mum and dad to be guarantors. Bringing parents to inspections can also be beneficial. For tenants with rental history issues, transparency is critical. Acknowledging past problems upfront increases the chances of approval.
To find a rental property you’re interested in, contact your local Raine & Horne office today for more information.
[i] https://www.realestate.com.au/news/good-and-bad-news-for-renters-as-both-vacancies-and-prices-increase/
Being a landlord offers plenty of opportunities for tax deductions, but it also means facing more expenses and extra responsibilities.
The key to managing these property expenses effectively is to claim them correctly, ensuring nothing is missed, especially as the financial year draws to a close.
To achieve this goal, understanding the difference between rental property depreciation and claiming expense deductions can improve your tax liabilities and keep the tax man onside.
For example, the Australian Taxation Office (ATO) closely scrutinises claims for repairs and renovations. The costs of repairs to, say, a sun deck due to tenant damage are tax-deductible and can be claimed in this tax year.
However, if the work results in an improvement or the replacement of the sun deck, it is considered a capital expense. In such cases, you can only claim some of that asset’s depreciation (the gradual wear and tear), not the entire cost in the year the money for the improvement was spent.
That said, depreciation and rental property expenses are tax-deductible, reducing your taxable income and lowering your annual tax bill. Expenses are deducted in the financial year they are paid and include:
Interest repayments on a mortgage for the investment property
Insurance
Property management fees
Maintenance and repair costs
Council rates
Strata fees
Conversely, depreciation is a non-cash deduction for the natural wear and tear of the property and its assets over time. This deduction doesn’t require actual expenditure to claim.
Claiming an expense
Rental property expenses are straightforward to claim. You deduct them from your taxable income, and the claims usually require receipts as proof of the work or service. Your accountant can calculate these deductions during tax preparation.
Claiming depreciation
Claiming property depreciation involves additional steps, including “capital works deductions” and “plant and equipment depreciation”. Capital works deductions cover the structural components of the building, such as roofs, walls, and staircases. These are calculated at a rate of 2.5% for up to forty years. On the other hand, plant and equipment depreciation includes mechanical and removable assets such as blinds, carpets, and smoke alarms. These assets are deducted based on their effective life, either as immediate deductions or through a low-value pool.
The best way to claim depreciation is by having a tax depreciation schedule prepared by a specialist quantity surveyor, like BMT. According to BMT’s research, about 80% of property investors still fail to utilise depreciation deductions fully[i]. This schedule lasts the property’s lifetime, and the fee is 100% tax-deductible before June 30. Your accountant will use this schedule to determine your annual depreciation deductions.
Property investors can maximise their tax benefits and manage cash flow more effectively by understanding the differences between depreciation and expense deductions, and by correctly claiming these deductions for owning and maintaining an investment property.
Contact your local Raine & Horne office today for more information about the investment property market in your suburb or town.
[i] https://www.bmtqs.com.au/bmt-insider/tax-depreciation-facts/
Some events only happen once a year: Christmas, Easter, grand finals, and, of course, the accountant’s Yuletide—the End of the Financial Year (EOFY) on 30 June. But just like last-minute gift shopping, it’s never too late to maximise the tax benefits of owning an investment property before the clock strikes midnight on 1 July 2024.
To prepare for tax time, landlords can take the following steps:
1. Understand tax deductions: To maximise your tax return, ensure you claim common expenses such as property management fees, advertising fees, renters’ insurance, council and water rates, bookkeeping fees, cleaning costs at the end of a tenancy, gardening and maintenance fees. To accelerate these claims, ensure all your receipts and bank statements are well-organised.
2. Enlist professional help: Consider hiring a tax professional or accountant to assist with tax preparation and ensure you claim all applicable deductions. These accounting services are also tax-deductible in the same year you pay for them.
3. Claiming interest on your loan: One of the significant perks of property investment is the ability to claim the interest charged on your home loan—or a portion of it—as a deduction. To streamline tax time, ensure you file all loan statements, as they clearly show the accrued interest. Remember, you can only claim interest when the property was leased and generated a rental income.
4. Get a depreciation schedule: A depreciation schedule is a detailed report that allows you to claim deductions for the natural wear and tear on an investment property, including all fixtures, fittings, and the building structure itself. Having a depreciation schedule is crucial for maximising your return on investment. On average, clients of depreciation specialist BMT find nearly $9,000 in deductions in the first full financial year after obtaining a schedule. While a depreciation schedule can cost around $700, it is fully tax-deductible. So, ordering and paying for a depreciation schedule before 30 June allows investors to claim the fee back in the current financial year.
However, making tax time claims is not all rivers of gold, and landlords must exercise caution. The accounting body CPA[i] has issued a warning, noting that with millions of returns and tens of billions of dollars at stake, the Australian Taxation Office (ATO) will closely scrutinise tax returns.
The ATO employs data-driven profiles based on factors such as employment type and financial investments to identify potential discrepancies. If your claims appear disproportionate compared to typical property investments like yours, you might be required to provide additional evidence to support them. Therefore, CPA Australia advises Australians to be meticulous with their tax returns, ensuring all earnings are declared and deductions are well-documented. Anything unusual may draw the ATO’s scrutiny.
When it comes to rental property claims, the ATO focuses on owners who make claims for renovations as repairs. Repairs to the property due to tenant wear and tear or damage are tax deductible. However, if the work results in an improvement rather than just repairing damage or results in the replacement of an asset, the expenses will be capital in nature, and you can only claim a depreciation expense, not for the entire cost in the year it was spent.
Finally, don’t let the ATO’s spotlight dim your EOFY spirits. By knowing your obligations and filing all related loan statements and expenses with help from your accountant, you can maximise the tax benefits of owning a quality, well-located investment property.
[i] https://www.cpaaustralia.com.au/about-cpa-australia/media/media-releases/is-your-number-up-this-tax-time