A P R I L
M A R K E T
2 0 1 8
P U L S E
C21
PUBLISHER Century 21 Australia Pty Ltd
M A R K E T
Charles Tarbey Eliot Hastie Chris Gray
Bradley Beer
EDITORIAL ENQUIRIES P U L S E
C21
CONTRIBUTORS
Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600
WELCOME TO
THE APRIL 2018 ISSUE OF
C21 MARKET PULSE
DISCLAIMER We have in preparing this information used our best endeavours to ensure that the information contained therein is true and accurate, but accept no responsibility and disclaim all
liability in respect of any errors, inaccuracies
or misstatements contained herein. Prospective buyers and sellers should make their own
enquiries to verify the information contained herein. All information contained in the
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provided as a convenience to clients. All links
to property prices displayed on the website are current at the time of issue, but may change at any time and are subject to availability.
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CHAIRMAN STATEMENT
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FINDING THE RIGHT QUANTITY SURVEYOR
Will first home buyers create a soft landing for
Five questions you should ask your quantity
Century 21 Chairman, Charles Tarbey.
BMT Tax Depreciation, Bradley Beer.
surveyor.
the property market?
AS WE GROW, SO DOES OUR TEAM
08-09
04-05
TECH TO END RENTAL CASH BONDS
New staff to lead Century 21 through period of
World-first technology to end rental cash
Eliot Hastie, Journalist of Real Estate Business
Terri Scheer Landlord Insurance.
10-11
bonds.
growth.
(REB) Magazine.
UP YOUR HOME’S ‘WOW’ FACTOR RENOVATING YOUR PROPERTY
06-07
Inexpensive ways to up your home’s ‘wow’ factor.
Renovating your investment property. Your Empire CEO, Chris Gray.
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CHAIRMAN STATEMENT
WILL FIRST HOME BUYERS CREATE A SOFT LANDING FOR THE MARKET?
BY CHARLES TARBEY CHAIRMAN CENTURY 21 AUSTRALASIA
Trends across the March quarter showed that capital city home values were 0.9% lower over the quarter, while values across the regional markets tracked 1.1% higher. Interestingly, regional markets are now consistently outperforming the combined capitals, according to CoreLogic. Six of the eight capital cities
Leaving regional markets to the side
deposit under normal property
first quarter of 2018, ranging from
rising stock levels, falling property
and stagnant wage growth made
recorded a fall in values over the
a 1.8% drop in Sydney values to a 0.1% fall in Darwin.
At Century 21, we are noticing
substantial increases in stock levels compared to the same periods last
for a moment, the combination of
prices and tight lending conditions has many asking whether the
property market – after many years
of incredible growth – is in for a soft or hard landing.
year. Increasing stock levels can
To get a clue as to what the outcome
and that is what we are seeing across
to examine and watch the activity of
often equate to decreasing prices most capital cities.
may be, I believe it may be prudent the first home buyer segment.
market conditions, rising prices
the situation even more difficult for many hopeful market entrants. This issue created a dangerous
situation where some first home
buyers were using credit cards or
personal loans for deposits. Notably, the bank of ‘Mum and Dad’ became
the fifth largest home loan lender in Australia last year.
Increasing prices in regional areas is
In June last year, first home buyer
Recognising this issue, some
time and was a logical next step
many Australian states.
regulations to make it easier for
something we have forecast for some from the property boom that started in many major capital cities. The
new equity that is created around
capital cities often flows outwards in a wave like effect.
levels were at almost record lows in Despite low interest rates, sky high property prices in many markets were making it difficult for this
group to enter the property market. While it is difficult to save for a
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governments introduced new
this group to buy first homes. As
an example, from 1 July last year,
first home buyers in Australia’s two
most populous states no longer have to pay stamp duty when buying
properties below $650,000 in NSW and below $600,000 in Victoria.
These types of changes are likely having a dramatic impact on the activity and participation of this
group in the market; and at a time
when the market may need them the most.
ABS Data shows that the number of loans to first home buyers rose to a
housing market moving forward? So long as first home buyer interest continues to build, interest rates remain low and Governments
continue to incentivise this group
to buy property, first home buyers could play a key role in ensuring that property price growth only moderates or that the market experiences a ‘soft landing’.
five-year high in November, 2017,
I think it remains important for
owner-occupied home borrowings.
the challenges this group faces and
to account for 18 per cent of total Incredibly, in the last quarter of
2017, NAB analysis suggested that first home buyers accounted for
governments to continue to realise
look to do everything in their power to help first home buyers enter the property market.
almost two in five sales in new
Dropping the ball here could be
three in established markets.
the property market and even the
housing markets and around one in What does this all mean for the
detrimental to this group of people, wider economy.
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At the same time, I believe it
remains important for first home buyers to recognise that heat is
coming out of many markets and they should look to be savvy, not
emotional, buyers. This means doing their research, defining a clear
purchasing budget and ensuring that they take into account the potential for rising interest rates.
In the end, all market participants want a stable, sustainable and
strong market. First home buyers are starting to get busy and will play a major role in making this happen.
AS WE GROW, SO DOES OUR TEAM
NEW STAFF TO LEAD CENTURY 21 THROUGH PERIOD OF GROWTH Seven new staff members are joining the Century 21 corporate office to steer it through its next strategic growth cycle. The new staff members will join the Australasian corporate office and will not only manage growth but
also support new franchise owners. Real estate veteran David Baliviera
has been appointed the new regional director of service and training for Australia and New Zealand.
Mr Baliviera brings with him 35 years of experience in a varied
career where he has been an agent, auctioneer, trainer and member of
the Real Estate Institute of Victoria. Amie Stickler, who has extensive management experience, joins
CENTURY 21 as the operations
manager where she will be working in the national network.
Lara Kilborn has been appointed
to a national business and training support role, after over 20 years’
BY ELIOT HASTIE, JOURNALIST, REAL ESTATE BUSINESS
Ms Kilborn has been operating
Chairman and owner of CENTURY
business for over 14 years and has
said of the new appointments: “It
her own training and consulting
previously worked in the franchise sector.
Returning to CENTURY 21 is
21 Australasia Charles Tarbey
is wonderful to have new team members of such calibre and
experience join our network.
Whitney Sutton, who started
“We believe these strategic
Queensland and who will be in
service offering in several ways and
her career with the network in
a national business training and support role.
Isaac Goodland, who brings 18 years of experience to the network, will be taking on a national network development role.
Gabriella Finelli joins the real estate sector for the first time in a national business training and support role.
appointments will enhance our
during a period where the network has attracted some incredible
talented and credentialed sales staff and new franchise owners.”
CENTURY 21, which boasts over
100,000 staff in 78 countries, has
opened new offices in New Zealand,
Queensland, Victoria and New South Wales over the past six months.
Ms Finelli has previously been
the national educator for a global brand, from which she developed
and implemented training programs nationwide.
Internally, Amanda Hall will move from her current position of New South Wales area manager to a national orientation position.
experience as a trainer and marketer.
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The story Several new hires to lead CENTURY 21 through period of growth first appeared on Real Estate Business (REB). Article Link: https://www.realestatebusiness.com.au/ breaking-news/17028-several-new-hires-to-leadcentury-21-through-period-of-growth
Pictured above: David Baliviera Regional Director Service/Training
Pictured above: Amie Stickler National Operations Manager
Pictured above: Lara Kilborn National Business/Training Support
Pictured above: Whitney Sutton National Business/Training Support
Pictured above: Isaac Goodland National Network Development
Pictured above: Gabriella Finelli National Business/Training Support
Pictured above: Amanda Hall National Orientations Manager
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RENOVATING YOUR PROPERTY
RENOVATING YOUR INVESTMENT PROPERTY Renovating can be an extremely successful way to instantly maximise the value of any second-hand investment property. Not only can renovating contribute to a property’s capital growth, but the instant additional equity that
comes from renovating can be used
BY CHRIS GRAY, YOUR EMPIRE CEO
a property’s overall value requires
and with the right advice, you can
if the tiler you’ve chosen has quoted
equity in the first year alone. It can
expert knowledge. How do you know the right price? Will your bathroom
and kitchen really take two weeks as promised – or will it drag out to two months, losing you potential rent
for weeks that you haven’t planned
for? Should you always go with the cheapest quote?
make tens of thousands of dollars in be as simple as new paint and new
carpet, or it can be as complex as a complete refurbishment.
HIRE A PROJECT MANAGER Hiring a project manager to
to help fund any negative cash
oversee larger-scale renovations
a concerted effort to upgrade
think you can save thousands by
can be very worthwhile. You might
flow. Even in a flat market, making your property will also prevent
maintenance for years to come,
giving you a passive, trouble-free investment.
However, there is one glitch – very few property owners know how to achieve these results without any stress. Here’s my advice:
“Very few property owners know how to achieve these results without any stress. ”
managing the project yourself, but this comes with risks. A project
manager can prevent arguments when there are several parties
doing different pieces of the same
job. Not only can a good project
manager take responsibility for
costings and timings, but they can mediate between contractors and
tradespeople, pushing them into gear if they appear to be lagging. They
DO YOUR RESEARCH
can also take care of drawing plans,
It’s easy enough to sand the
P L A N C A R E F U L LY
negotiate with councils for approval,
and call yourself a renovator, but
Renovations require careful
the renovation to ensure the final
floorboards, paint some bedrooms knowing exactly what you need to
do to improve a space and increase
planning and execution. If the
renovations are carried out correctly
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as well as manage all aspects of
product is complete to perfection. While the project manager can
be anyone from an architect,
much a decent clean can increase
professional property investor or
simple re-carpeting job can cost
interior designer or builder, to a
renovator, ultimately they need to be experienced, trustworthy and have
a team of reliable tradespeople they can call on.
KNOW HOW TO ADD VALUE WITH LITTLE OUTLAY If you’re looking to boost the price of your property but don’t want to
the appeal of a home. Likewise, a
as little as $5000 while adding as
much as $10–$20,000 to a property’s value. Finally, instead of adding a
whole new kitchen, why not consider changing the kitchen cupboard
doors and replacing old light fittings, switches and sockets. The aspect of
any home is important and, if a room is well-lit, it can instantly lift the feeling of a dated room.
ABOUT THE CONTRIBUTOR Chris Gray is CEO of Your Empire, a buyer’s agency which builds property portfolios for time-poor people – searching, negotiating,
take on a large renovation project,
renovating and managing property on their behalf. Chris’s team buys 1-2 properties a week
there are several small-scale
and often spends $5m+ a year renovating
improvements you can do yourself to
on others’ behalf, providing a unique insight
instantly lift the value of your home.
into market conditions and buyer and seller
The main thing to remember when
sentiment. Chris hosts “Your Property Empire’
renovating, however, is to know
each Friday on Sky News Business channel, where he interviews various heads of property
what can add value to your property
research companies and major industry figures.
without overcapitalising. Why
Chris is a qualified accountant, buyer’s agent
not try cleaning and painting the
and mortgage broker. For more information visit
inside and outside of your home, for
www.yourempire.com.au, www.chrisgray.com.
instance. A fresh coat of paint can
au and follow Chris on Twitter:
out interiors, and it’s impressive how
https://www.yourempire.com.au/
@ChrisGrayEmpire.
make a world of difference to worn-
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FINDING THE RIGHT QUANTITY SURVEYOR
FIVE QUESTIONS YOU SHOULD ASK YOUR QUANTITY SURVEYOR Are you an investor who’s heard about the benefits of depreciation and have decided to start claiming? That’s great news for your investment Claiming depreciation will help you
maximise the cash return from your investment property. As a non-cash deduction, depreciation is a quick win for investors and requires
minimal effort on the owner’s end. But before organising a quantity surveyor to prepare your tax
depreciation schedule, it’s important to note that not all quantity
surveyors are created equal, and some due diligence is usually
required before forging ahead.
BY BRADLEY BEER, BMT TAX DEPRECIATION
WHAT INDUSTRY QUALIFICATIONS DO YOU HAVE? AND ARE YOU A REGISTERED QUANTITY SURVEYOR?
DO YOU SPECIALISE IN TAX DEPRECIATION?
When choosing a quantity surveyor,
on to maintain detailed knowledge
members of the Australian Institute
Office (ATO) Tax Rulings relating to
AIQS is an industry body that assists
This difference is reflected in a
depreciation specialist can be relied of all current Australian Taxation
of Quantity Surveyors (AIQS). The
depreciation.
its members to maintain compliance with industry regulations and
Australian Standards ensuring a high quality of service.
property investors’ bottom line.
Because of their in-depth industry knowledge, a specialist quantity surveyor can help their clients
In addition to being accredited by
claim more deductions, pay less tax
check that the firm are registered
investment.
Board (TPB). The TPB is the
IS MY PROPERTY TOO OLD?
the AIQS, it is also important to
tax agents with the Tax Practitioners national body responsible for the
registration and regulation of tax
investment property, you should do
the Tax Agents Services Act 2009
with a quantity surveyor.
be registered tax agents to complete
property manager to manage your
agents ensuring compliance with
the same when choosing to work
(TASA). Quantity surveyors need to
deductions, here are five questions
in tax depreciation. Only a tax
it is important to check that they are
Just like you would seek the best
To help ensure you get maximum
Not all quantity surveyors specialise
tax depreciation schedules for investment properties.
and see a greater return on their
Legislation from the ATO states that Since changes to claiming depreciation on second-hand residential properties were
introduced following the 2017
federal budget*, many investors now wonder if they’re still able to claim depreciation for their investment properties.
you should be asking your potential quantity surveyor.
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The bottom line is that it is
year projection of all available
what depreciation deductions are
for easy understanding.
always worth enquiring about available.
Even if your property was purchased second-hand after this date, it
is likely there will still be some
deductions available, whether it’s in
the form of capital works deductions, previous renovations or newly
deductions, and a glossary of terms The quantity surveyor should also be able to provide Excel and CSV
schedule files for accountants and owners for easy importing into
compatible accounting software.
*Under new legislation outlined in the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017 passed by
Furthermore, if your property is
Parliament on 15th November 2017,
your quantity surveyor should be
a second-hand residential property
report, as this often results in higher
longer be able to claim depreciation
owned by more than one party,
investors who exchange contracts on
able to provide you with a split
after 7:30pm on 9th May 2017 will no
deductions earlier.
on previously used plant and
WHAT’S INCLUDED IN YOUR TAX DEPRECIATION SCHEDULES?
DO YOU OUTSOURCE ANY OF YOUR WORK?
deductions on plant and equipment
Some tax depreciation companies
purchased prior to this date and those
Your tax depreciation schedule
will outsource parts of the process of
who purchase a brand new property
needs to be comprehensive and ATO
preparing a schedule to contractors
will still be able to claim depreciation
compliant. This helps you claim
or external quantity surveyors and
as they were previously. To learn more
maximum deductions and also
site inspectors. While not technically
visit www.bmtqs.com.au/budget-2017
covers you in the event of an audit
incorrect or bad practice, this can
or read BMT’s comprehensive White
from the ATO.
be an inconvenience service wise
Paper document at www.bmtqs.com.
and may lead to a greater chance of
au/2017-budget-whitepaper
are working on the one schedule.
To obtain a free estimate of the
installed plant and equipment assets. Now more than ever it’s important
to maximise the deductions you are legally entitled to.
As an example of what should be
included in a schedule, a BMT Tax Depreciation Schedule contains a one page overview of total
deductions, the prime cost and
equipment assets. Investors can claim assets they purchase and directly
incur the expense for. Investors who
errors occurring, if several parties Please note that BMT do not
outsource any of their operations.
deductions available for any
investment property, contact the expert team at BMT Tax
diminishing value methods for
Depreciation on 1300 728 726.
plant and equipment assets, a forty
ABOUT THE CONTRIBUTOR Article provided by BMT Tax Depreciation. Bradley Beer is the CEO of BMT Tax Depreciation. Please contact 1300 728 726 for an Australia-wide service. https://www.bmtqs.com.au/
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TECH TO END RENTAL CASH BONDS
WORLD-FIRST TECHNOLOGY TO END RENTAL CASH BONDS A world-first technology will make renting more accessible to trustworthy Australians. Fintech company Traity has launched Trustbond, powered by leading
landlord insurance specialist Terri Scheer.
Trustbond helps tenants to rent a
home and provide security to their landlord without freezing their savings in a rental bond.
It helps landlords to determine a
person’s suitability as a tenant whilst providing landlords with the same
BY TERRI SCHEER INSURANCE
For example, a traditional cash bond
“Trustbond recognises a person’s
With Trustbond, the tenant might
money back in tenants’ pockets to
might require a tenant to pay $2000. pay a much smaller fee of around
$250 for the term of the lease that
still covers their landlord for $2000, freeing up $1750 for the tenant.
The inspiration for Trustbond came from Traity CEO Juan Cartagena
and his own experience of renting property.
As a new resident of the United States with no local rental or
employment history, landlords were
requesting rental cash bonds of up to $14,000.
level of protection as a traditional cash bond.
Traity measures trustworthiness using online data including
networks, ratings and reviews from
Facebook, Twitter, LinkedIn, Airbnb, eBay and Uber to determine a tenant’s TrustScore.
Once eligibility has been established, the tenant pays an upfront fee that is a percentage of what a conventional rental bond would cost.
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digital profile as an asset, putting
spend on the things that matter to
them,” Traity Country Manager, Will Soutar, said.
“It allows people who may have an unconventional working life, such as freelancing, or who have no
rental history, greater access to the property rental market.
“A traditional bond is a large sum
that is tied up for the duration of the lease. Trustbond allows tenants to
pay a relatively small fee upfront to
cover the protection their landlord
a high TrustScore are eligible,” Ms
“In addition to the financial
“Trustbond gives landlords and
for tenants to show who they really
and review tenants. This encourages
requires.
incentives, Trustbond is a better way are. It’s a way to build stronger relationships between tenants,
landlords and property managers based on trust.”
Terri Scheer Insurance Executive Manager, Ms Carolyn Parrella,
said there were key incentives for
landlords to choose tenants who are eligible for Trustbond.
“Trustbond is based on the premise that good online citizens will also
be good tenants. Only tenants with
Parrella said.
property managers the ability to rate tenants to be responsible and
motivates them to take care of their
landlord’s property, in order to keep their TrustScore high.
“These benefits can be achieved with the same level of protection as a conventional cash bond.
“Trustbond covers the same breaches of a tenancy agreement including
unpaid rent, damage, broken leases
“Owning a rental property is a
significant investment. We want to take the stress out of investing for landlords, support tenants to feel
trusted and remove barriers to entry for renting. Trustbond will do just that.”
Trustbond is being launched in South Australia and will roll out to other states in the coming months.
In time, Traity plans to donate
one in 30 products to people who
have experienced domestic abuse, to help them move into safer accommodation.
and associated costs, without the need to go to a tribunal.
HOW TO START A TRUSTBOND Go to www.trustbond.com: • Prove you are a trustworthy tenant by building your reputation profile
• Replace the cash bond with a Trustbond • Share the Trustbond with your real estate agent or landlord for their agreement
• Use your cash for when you need it most. Visit www.trustbond.com to check your TrustScore and Trustbond eligibility.
ABOUT THE CONTRIBUTOR The information contained in this article is intended to be of a general nature only. Terri Scheer does not accept any legal responsibility for any loss incurred as a result of reliance upon it. Insurance issued by Vero Insurance. Read the Product Disclosure Statement before buying this insurance and consider whether it is right for you. Contact Terri Scheer on 1800 804 016 or visit our website at www.terrischeer.com.au for a copy. https://www.terrischeer.com.au/
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UP YOUR HOME’S ‘WOW’ FACTOR
INEXPENSIVE WAYS TO UP YOUR HOME’S ‘WOW’ FACTOR When selling a home, it is important to remember that not everybody sees your property the way you do. The reality is that some buyers need to be shown the possibilities that exist within a home, inspiring them to imagine themselves living there. In many cases, all it takes is a few simple changes that may position
your home as a place where many
different prospective buyers could be happy.
THE USE OF COLOUR Firstly, the use of the colour white
has the potential to make a marked
painting outrageously bright feature
trick that may work well is to choose
colour throughout your house
to the main function of the room, a
walls, but rather adding pops of
to brighten up living spaces and create an aesthetically pleasing
environment. Things such as flowers, cushions and candles in bright
colours can be inexpensively used to make your home feel up-to-date and modern.
“Minor changes can make such big differences and they don’t have to cost you a fortune”
This helps buyers to see the room in
its primary role, while also allowing them to visualise how their own furniture could be arranged.
also be nice to keep a few touches of ‘home’ as well. Such touches could
include things like plush towels in the bathrooms, fresh hand towels in the kitchen, fluffed up pillows
on beds and even fresh flowers on
the main dining table. The aim
here is to make your house feel like
a home, without actually looking too Relatively minor changes can make such big differences and they don’t
AVOID OVERCROWDING
have to cost you a fortune. These
It may be wise to avoid crowding
In addition to white, a few splashes
rooms with furniture. In the
go astray either. This doesn’t mean
more spacious a room will look. A
of colour here and there may not
with minimal ancillary furniture.
‘lived in’.
using white can create a feeling of
a blank canvas.
arrange this piece as the area’s focus
excessive personal clutter, it can
If your walls need to be painted,
showing off a room as somewhat of
bed in a bedroom for example, and
Whilst it is advisable to remove
difference in any room of the house.
space and freshness, whilst also
one piece of furniture that relates
majority of cases, the less clutter, the
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techniques and many others can be used to enhance your home’s
appeal to prospective buyers, thus
enhancing the prospect of achieving a desirable price for your home.
LOOKING FOR STANDOUT SERVICE? WE HAVE YOU COVERED. Century 21 may be the world’s largest real estate franchise, but our focus is on being the very best. With state-of-the-art technologies and leading industry resources at our fingertips, we have you covered this Autumn. Call us today: 1300 24 21 21
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