PRDnationwide Penrith Publication - Issue Five
SOLD: $1.1M SOLD IN JUST TWO WEEKS
PENRITH’S property market is so hyperactive that even prestige properties at the top end are selling before they get to auction. PRDnationwide research shows that over two years the combined average days on market has dropped from 106 to only 29 while combined average sales prices have gone from 5.3% below asking to 5.6% above asking price! Details P.3
In this issue of Property News: • To Decorate Or Not When Selling • $1.1m Sale Underscores Market Strength • Landlord Traps
www.prd.net.au
(02) 4732 3711
LETTER FROM THE PRINCIPAL Dear Readers, Every year we get asked by property owners whether they should sell in the lead-up to Christmas or wait until the New Year. Our answer is always a definitive - Sell Now! Quite apart from the fact that people do treat themselves to more than socks and hankies, i.e. they buy houses, it is also a fact that buyers are out and about more during the Christmas-New Year period than any other time of the year. 2014 so far has been an enormous year for real estate sales and we are fully expecting it to go out with a bang, particularly now that the Reserve Bank has again held the interest rate at its 60 year record low and seems happy to continue down this path for the immediate future. Kind regards,
Darren Latty Managing Director 0414 620 532
379 High Street, PENRITH NSW 2750 phone:
(02) 4732 3711
fax:
(02) 4732 3283
email: web: Disclaimer
reception@prd.net.au www.prd.net.au
Notice: Neither Darren Latty, PRDnationwide Penrith, nor Newsletter House Pty Ltd, nor the publishers and editors of articles in this issue, accept any form of liability, be it contractual, tortious or otherwise, for the contents of this newsletter or for any consequences arising from its use or any reliance placed upon it. All the information contained in this publication has been provided to us by various parties. We do not accept any responsibility to any person for its accuracy and do no more than pass it on. All interested parties should make and rely upon their own inquiries in order to determine whether or not this information is in fact accurate. ©Newsletter House Pty Ltd 2012 Ph: 02 4954 2100 www.newsletterhouse.com
If your property is for sale, is it OK to decorate it for Christmas? It’s a question that many people ask themselves, especially those who like to make an all-out effort with the tree and tinsel in the festive season. It is, of course, quite natural that you and your family will still want the pleasure of decorating your property, especially as it will probably be the last time you spend Christmas there.
When you’re on the market should you deck the halls? But in the interests of securing a buyer for your property, it’s advisable to tone down those decorations as much as possible. When you’re selling your property, it should look uncluttered. As well as enhancing its appearance, the absence of clutter helps prospective purchasers to imagine their own furniture and other possessions in that position which, in turn, makes them more open to the idea of buying it. If you set up an enormous Christmas tree and lots of decorations, this can distract people from other features and will also make the space seem smaller than it is. Therefore, while it’s quite all right to have some reminders of the Christmas season on show, make sure you keep them small and tasteful. A small tree on a sideboard or placed discreetly on a table in a corner of the room will still convey the festive spirit without dominating the room. It’s a good idea, too, not to have heaps of wrapped gifts on display in the pre-Christmas season. This could have the effect of making the property seem very personal to you, which could prevent people from seeing it as theirs. By keeping your decorations to a minimum in this way, you can still enjoy Christmas and possibly help yourself to make a sale as well. And you can celebrate to your heart’s content n ex t year in your new property!
Homes Selling Faster, For More In Penrith
PRDnationwide Penrith’s Daniel Latty proved the truth of the research recently with the $1.1m pre-auction sale of a prestigious six bedroom Claremont Meadows before going to auction. “This was a home in a market where the median price is just $475,000, yet the interest in this home was phenomenal from day one,” Daniel said.
“On the first open day we broke the record for the number of groups to inspect a property with 50 going through the home. “During the course of the Open Days process a total of more than 130 groups inspected the property.” Daniel said that historically it can be difficult to create competition for high end homes, but this is just not the case in the current market. 22 Doncaster Avenue, Claremont Meadows sits on a fully landscaped 1000 sq.m block and is oversized in all aspects with six bedrooms, three bathrooms and 12-car, basement garage with high ceilings and numerous secure areas. A builder’s dream home, it features a theatre room, enclosed alfresco living spaces, a massive gourmet kitchen with a butler’s pantry, a rumpus room, home office and huge bathrooms. As you would expect, there is a custom in ground swimming pool with water feature. Daniel said that the interest from qualified buyers was huge and he was taken aback by the sheer numbers.
“The quick sale proves the truth of the market research and particularly shows that the market’s strength in this area is consistent at all price levels. “As a result of this sale alone we have significantly added to our already strong database of buyers who are currently active in the million dollar market and we are actively seeking new listings to meet this demand,” he said. “Anyone even remotely considering selling, no matter what market segment they see themselves in, should contact us sooner rather than later.
Daniel Latty sold this home for $1.1m before the auction and needs more homes to sell.
Selling your property just became easier If you would like to sell your property without the stress then call our property people on (02) 4732 3711 and the rest is easy!
Darren Latty Managing Director 0414 620 532
Daniel Latty Residential Sales Manager 0417 047 458
Sharon Richards Sales Administrator (02) 4761 6204
Sophie Armond Marketing Coordinator 0490 461 317
Zain Allam Project Marketing 0410 329 298
Nathan Todd Buyer Manager 0437 609 290
How to get it right as a new landlord Avoid these mistakes: To succeed as a property investor, you need to avoid certain pitfalls Mistakes made by some new landlords include: Treating it as a hobby The best investors remain unemotional about their properties. If you drive past each week to check the roses, perhaps you need to consciously distance yourself from the property.
Making friends with tenants It’s not easy to serve an arrears notice on someone with whom you have a close relationship. The same applies to rent increases and bond claims.
Thinking of it as home
Not having a depreciation schedule A depreciation schedule is the inventory of items that can be depreciated to claim a tax deduction. By investing a few hundred dollars to have a schedule prepared you can save thousands of dollars in tax.
Not increasing rents regularly A small, regular rent increase is much better than a large, infrequent one that shocks the tenant so much they move out. As long as the increase is reasonable you should have no problems with your tenant.
properties in interest only loans until they eliminate non-tax deductable debt.
Forgetting the bigger picture
Using the wrong accountant Good accountants who understand property are worth their weight in gold. Such an accountant can advise you as to how to structure your property portfolio around your plans.
Good investment opportunities can be missed if investors judge properties by their own needs. For example, you may choose not to live in an apartment with no parking, but one close to public transport may be a great investment.
In the excitement of buying your ďŹ rst property, you may forget the bigger picture of building a portfolio. Remember, the greater your equity and rental returns, generally the more you can borrow towards that portfolio.
Neglecting the property
Paying down in the wrong order
Failing to use an experienced property manager
Improvements such as a coat of paint or necessary repairs can make a big difference to the value of your property and increase the rental yield substantially.
It can be tax effective to pay down non-tax deductible debts (such as home loans) before a tax deductible investment debt. Most investors have their investment
For a couple of dollars a day a property manager can save you thousands by ensuring your vacancy rate is low and your property obtains the highest possible rent.
Rex Ellison Director Property Management 0418 201 114
Natalie De Chellis Business Development Manager 0420 371 107
Marnie Fawns Account Manager (02) 4761 6221
If you would like help renting your investment property, call us on (02) 4732 3711 and see how easy it can be with expert advice!
Stacey Haughton Property Manager 0432 548 838