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PUBLISHER Century 21 Australia Pty Ltd
CONTRIBUTORS Tim Lawless Bradley Beer On The Move
EDITORIAL ENQUIRIES Century 21 Australia (02) 8295 0600
ADVERTISING ENQUIRIES Century 21 Australia (02) 8295 0600
DISCLAIMER
WELCOME TO THE
MAY 2020 ISSUE OF
C21 MARKET PULSE
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 CENTURY 21 Australia Pty Ltd website is 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. For more information on our Privacy Policy please refer to: www.century21.com.au/privacy
C O N T E N T S M A Y
FREQUENTLY ASKED QUESTIONS
02-03
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SMART TAX TIPS
Selling property during COVID-19.
Take action now for the financial year ahead.
Century 21 Australia
BMT Tax Depreciation, Bradley Beer
COVID-19 UPDATE
04
SET THE STAGE
Safety starts at home.
Six easy tips for staging your own home.
Century 21 Australia
Century 21 Australia
PROPERTY MARKET UPDATE
05
ENERGY MYTHS
Housing activity plummets while housing values
Energy saving myth busting.
stabilise in April.
On The Move
Corelogic Head of Research, Tim Lawless
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FREQUENTLY ASKED QUESTIONS
Selling property during
COVID-19
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The current COVID-19 situation has changed the way we can help you sell property. Therefore, we have compiled a list of frequently asked questions to help you during this time. Rest assured, at Century 21 it is business as usual, and we have already begun implementing greater technology to continue to help you with all of your property needs.
How has Coronavirus (COVID-19) impacted the state of the market? Although the general level of inquiry and transactions have slowed we
Can I still get my property appraised? Yes you can and we have varied ways for this to occur. One is just to email or text one of our agents
Century 21 Agents are committed
and they can return to you a report
to providing our clients with an
with an estimate of your homes
effective tailored marketing strategy
value based on a comparable market
regardless of the current market
report which could suffice or, if
conditions.
you wish, we are still able to offer market appraisals by attending your property and exercising the utmost care when it comes to hygiene and social distancing.
We as an organisation have adapted quickly and can confirm that genuine buyers and sellers are being brought together in ways which allow a safe non-contact transaction to occur.
We will ensure your property is given every opportunity to be seen by all potential buyers through a tailored marketing campaign. It is now more important than ever to
Alternatively, we are also able to
promote your property to a targeted
offer you a virtual consultation and
group of buyers and also showcase
an opinion of value without needing
as many features of your property
to physically visit your home. We
as possible. We have the expertise
can do this via Google Hangouts,
and the tools to facilitate this at
FaceTime, Zoom and various other
competitive pricing.
live streaming platforms.
have still seen a healthy amount of transactions occurring.
How do the current circumstances change the way my property would be marketed?
Are properties still selling?
Can buyers still inspect my property?
The quick answer is yes. Across our
Yes, and there are various ways for
national network we are seeing a
this to occur. While most states are
number of transactions occurring.
now easing restrictions on Open
Now more than ever it is imperative
Homes, we can also show your
that genuine buyers and sellers
property virtually through video call.
are introduced, and our process identifies those participants and
What should I do if I want to sell my property during this time? If you are considering selling, we are here to assist you. We are very well prepared to sell property throughout this period and will continue to provide an exceptional level of service, delivering the best possible result for each and every one of our clients.
allows us as a group to still transact sales and listings. We have adapted the way we operate and have adjusted many of our property campaigns to work effectively throughout this time.
How is paperwork signed remotely? We already use digital contracts to facilitate sales in a seamless manner and will continue to do so throughout this time.
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THINKING OF SELLING? We can help you, talk to us today or CLICK HERE to request an appraisal.
C OV I D - 1 9 U P DAT E
SAFETY STARTS AT HOME
Century 21 has your health and safety, as well as that of our people, as our top priority. We've changed some of our procedures for the current COVID-19 situation in order to allow us to continue, with caution, to help you buy, sell and rent property.
Reduced face-to-face interaction
Best practices to ensure great personal hygiene
In addition to phone calls, Century
Our staff have all been briefed
21 is well equipped technologically
about best practices for personal
to service you and your property
hygiene and are diligently
through video conferencing, online
following instructions from Health
apps and a variety of industry tools.
Organisations as well as state and national government. We are
Stringent vetting of inspection attendees and distancing measures to anyone who
Australians are currently facing
has recently
the recent challenge presented
returned from
by the Coronavirus (COVID-19)
overseas
outbreak. While we do not yet have
travel within
all the answers, it is important to
14 days,
understand how these changes
or who
might affect you and your property.
may be
Here at Century 21 we have implemented cautionary procedures to ensure the safety of not only our staff, but that of our vendors and buyer community. Please rest assured that it is business as usual and we will dedicate the same level of care, expertise and professionalism that you have come to know. Here are some of the alterations we have made to accommodate the well-being of all:
displaying flu-like
and also providing sanitiser where possible. We are facing unprecedented
We may refuse entry As you are no doubt aware, all
regularly washing our hands
times and our priority is to keep everyone safe
“...it is business as usual and we will dedicate the same level of care, expertise and professionalism that you have come to know.�
and healthy, and up-to-date on property matters to ensure your goals are achieved. Our team is across all the required health
symptoms
practices and will
common to that
always act in the best
of Coronavirus
interests of your property.
(COVID-19). Inspections in a virtual/digital format may still take place, with physical inspections that maintain safe social distances thereafter. We may also ask that a declaration be signed by tenants and buyers confirming that they are well and have not recently travelled before granting entry.
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Click here to search for a local Century 21 agent
P R O P E R T Y M A R K E T U P DAT E
HOUSING ACTIVITY PLUMMETS WHILE HOUSING VALUES STABILISE IN APRIL Australian housing values have not seen any evidence of a material decline in April, despite a sharp drop in market activity and a severe weakening in consumer sentiment. Although most regions recorded a rise in home values through April, the national monthly pace of growth more than halved, dropping from 0.7% in March to 0.3%. The April result was the smallest month on
BY T I M L AW L E S S , CO R E LO G I C H E A D O F R E S E A R C H
were implemented and consumer
the downturn in foreign students,
sentiment started to plummet.”
stretched housing affordability
The capital city markets generally showed a weaker performance relative to the regional markets, with the combined capital cities
the national index was down 0.2%. CoreLogic head of research Tim Lawless
region to record a decline in home
combined regional markets.
values over the month, down 0.1%.
The sharpest reversal in growth conditions can be seen in Melbourne, where values nudged into negative territory through April, down 0.3%. Sydney values remained positive, rising 0.4% over the month. To provide some context,
“Despite the weakening in housing market conditions, some cities have outperformed the six-month average pace of change.”
housing values were generally slightly positive over the month, the trend has clearly weakened since mid-to-late March, when social distancing policies
lower rents.”
with a 0.5% rise across the
March saw both cities
said, “Although
back of rising vacancy rates and
Hobart was the only other major
since June last year, when
are likely to reduce further on the
index up 0.2% in April compared
the six months prior to
month movement
and already low rental yields that
averaging a monthly growth rate around 1.7%. According to Mr Lawless, Australia’s largest cities have a higher level of downside risk. “Sydney and
Melbourne arguably show a higher risk profile relative to other markets due to their large exposure to overseas migration as a source of housing demand, along with greater exposure to
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Explaining the drop in Hobart values, Mr Lawless said, “Hobart has the most exposure of any capital city, at least proportionally, to the industry sectors most heavily impacted by COVID-19 in terms of employment, with 12.7% of the workforce employed within accommodation & food services, and arts & recreation services sectors.” Despite the weakening in housing market conditions, some cities have outperformed the six-month average pace of change. Perth (+0.2%), Adelaide (+0.4%) and Darwin (+1.7%) outperformed their six month average pace of growth in April, demonstrating some resilience to weaker conditions.
Click here to read the full article
SMART TAX TIPS
TAKE ACTION NOW FOR THE FINANCIAL YEAR AHEAD BY BRADLEY BEER, B M T TA X D E P R E C I AT I O N
For most people, a new financial year means time to prepare an income tax return.
HERE ARE FIVE SMART TAX TIPS FOR THIS NEW FINANCIAL YEAR:
2. MAKE SURE YOU’RE CLAIMING ALL THE DEDUCTIONS YOU’RE ENTITLED TO
1. SPEAK TO YOUR FINANCIAL ADVISOR
As a property investor you’re
some extra tax) and then forget
If you haven’t spoken to your financial advisor in a while, make
depreciation.
about it until next tax time rolls around.
this financial year the time to do so.
For property investors, it has added
They’ll be able to assist in
meaning. It’s a great time to take
reviewing the performance of your
stock of how your investment is
investments and advise on whether
performing and set some things in
you should set new goals or adjust
place to ensure you’re in an even
your current investment strategy.
better position next tax time.
It’s also a great way to get a holistic
They’ll lodge their return, hopefully get a refund (or maybe have to pay
view of your finances, which can be hard to do on your own.
entitled to a range of tax deductions, one of which is
Considering depreciation often sees residential investors get an average of $5,000-10,000 in deductions in the first financial year alone, it’s important to take advantage of these deductions if you want success as an investor. Combined with all the other deductions you’re entitled to for your investment property, such as
A good accountant or financial advisor will also ensure you’re
repairs and property management fees, these deductions really do
claiming everything you’re entitled
add up and shouldn’t be overlooked.
to as an investor. Speaking of
Visit BMT’s tax depreciation
which....
calculator for an estimate of the deductions you may be entitled to.
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3. BE SMART WITH RENOVATIONS
4. KEEP ACCURATE RECORDS AND RECEIPTS
Are you planning on renovating
Your accountant would have told
your investment property in some
you time and time again to keep
There’s no doubt that the best part
form this coming year?
receipts of things you need to
of tax time is getting a tidy tax
claim. This advice still stands.
return.
it and realise that the assets you
One exception to this is if you’re
While it’s tempting to put that
choose can maximise future
ordering a tax depreciation
extra cash towards a holiday, a car
deductions.
schedule from BMT. In this case
or even put it into your savings, as
you don’t need receipts for work
an investor you should consider if
completed or new assets installed
there are better ways you can use
– this is what our site inspections
this extra cash.
If so, you should be smart about
Selecting which assets to replace during a renovation can make a difference to future deductions. This is because each asset’s rate of
are for.
5. CONSIDER HOW YOU CAN RE-INVEST YOUR TAX RETURN
For example, you could choose
depreciation is calculated based on
Accurate record keeping is
to reinvest this in shares, put
its individual effective life.
essential for investors – it’s a good
it towards a deposit on a new
idea to jot down conversations
investment property to grow your
you’ve had and agreements you’ve
portfolio, or use to it renovate or
made with your property manager
update your existing investment
or with your tenant if you self-
property, which could result in a
manage your property.
higher weekly rent and increase the
For example, deductions available in the first full year depreciation claim for carpets, floating timber floors and tiles differ. You can use BMT’s depreciation rate finder to calculate the effective life and depreciation rate for various plant and equipment assets. Furthermore, if you’re planning a renovation this year, you should contact a specialist quantity
This is particularly important for
overall value of the property.
owners of holiday rentals, who need to have accurate records of exactly how many days their property was available for rent in the past year to make legal claims.
surveyor before starting work. This is important during the removal or demolition of any existing structure or fixture onsite that would have been eligible to claim deductions for depreciation (division 40) or capital works deduction (division 43). These removed and scrapped assets could entitle the owner to additional claims. An updated tax depreciation schedule may be required after a renovation to capture all newly installed plant
ABOUT THE CONTRIBUTOR
and equipment assets or
Article provided by BMT Tax Depreciation. Bradley
capital works expenditure.
Beer (B. Con. Mgt, AAIQS, MRICS, AVAA) is the Chief Executive Officer of BMT Tax Depreciation. Please contact 1300 728 726 or visit www.bmtqs.com.au for an Australia-wide service.
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SET THE STAGE
SIX EASY TIPS FOR STAGING YOUR OWN HOME There's no question that staging your dĂŠcor is advantageous when you're trying to sell your home. The strategic editing and placement of your furnishings
3.
away from walls (a technique known
DEEP CLEAN
as "floating") to create groupings
Everything must be groomed,
that are tied together visually with
sparkling and odour-free inside and
area rugs.
out. That includes making sure all your windows are clean inside and out as this will allow all your hard work to sparkle brighter than ever!
friendliness and cheer by
boosting its appeal. Fortunately,
selectively adding new flowers,
conducting your own staging need
potted plants, attractive seating
not be complex by following a few
and welcome mats outside,
easy guidelines:
perhaps fresh flowers and bowls of fruit inside.
PRIORITISE BY ROOM 6.
You'll get the most visual impact by staging your living room, master
OPTIMISE LIGHT
Add brighter light bulbs, pull back
bedrooms, kitchen and extra
or remove curtains, clean windows
bedroom(s), in that order.
2.
ACCESSORISE INSIDE AND OUT
Create an atmosphere of airiness,
can be enormously important to
1.
5.
and clean (or perhaps update) light fi xtures to add to the overall
DE-CLUTTER
Cleaning will be easier after you pack away at least 90 percent of your own dĂŠcor and personal
impression of positivity.
4.
DIVIDE AND CONQUER
artifacts. Your goal is to create a
Plan to remove about half your
minimally decorated space buyers
furniture to give the impression
can imagine moving in to.
of optimal space. If it's all unpresentable, use stylish rental pieces or fake "pop-up furniture" for showings. Tip: Wherever possible, move display furniture
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Moving?
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Electricity
Gas
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NBN / Broadband
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Insurance
ENERGY MYTHS
ENERGY SAVING MYTH BUSTING BY ON THE MOVE We all know saving energy is good for your hip pocket and the environment, but the question is, what do you actually have to do to be energy efficient? Here are five of the most persistent energy-saving myths floating around today.
Energy-rated appliances always help you save. Contrary to what you might think, buying an appliance with a high energy rating won’t automatically save you more on energy. The truth is, you can compromise your appliance’s energy-reducing features if you use it the wrong way. Plus, if you install it incorrectly, position it in a less than optimal place, or fail to maintain it, your energy-rated appliance could end up costing as much if not more to run. Follow the manufacturer’s instructions and maintain it as directed.
Electrical space heaters are better than the thermostat. While you might think using electrical space heaters in one or two spaces is better than heating the whole house or office, those electric heaters consume a significant amount of power. In a lot of cases, you’d probably be better off setting the thermostat to a moderate setting and putting on an extra layer of clothing.
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New homes are always energy efficient. The energy-efficiency rating of a home depends on its design and not its age. Newer homes, if not well designed, can be more energy-intensive than older homes. If you’re buying a new house, don’t assume it’s going to be energy efficient. Look to the design and features to work out how your home rates on energy efficiency.
Max the thermostat to heat your home faster. Setting the thermostat to the maximum temperature or a higher temperature won’t heat your spaces any faster than if you set it to your usual setting. It takes the same amount of time to heat your house whether you turn it to a higher temperature or a moderate one. So the next time you’re tempted to max your thermostat on a freezing day, don’t. Set it to your ideal temperature instead.
Hand washing dishes saves more energy than the dishwasher. Dishwashers are actually more energy-efficient than hand washing. They use less water and therefore less energy (if you wash with hot water). In addition, you’ll probably end up with cleaner plates with your dishwasher, since studies have found dishwashers clean dishes more effectively.
While the jury may still be out on some energy saving tips, On the Move offers a guaranteed time saving tip - take the stress out of
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gas, phone, internet, pay TV and insurance.
your utility connections. In a single
Since 2004 On The Move has partnered with Real
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6 services arranged. Then you can focus your energy on more interesting things!
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their customers a convenient and seamless move-in, lights-on experience. https://www.onthemove.com.au/
