PRDnationwide Penrith Publication - Issue Eight
ACREAGE IN DEMAND IT’S ON AGAIN ...
BIG BACKYARD SALE
PRDnationwide Penrith is experiencing a high, unprecedented demand for acreage properties throughout the area and is seeking more such properties. The agency’s Managing Director, Darren Latty, said that such properties are selling quickly, usually for well above vendor expectations as a result of the record low cost of mortgage debt. “In today’s market, with interest rates at record lows, more and more buyers are prepared to spend to chase their property dream,” Darren said.
DETAILS P.2 In this issue of Property News: • Register Now For The Next Big Backyard Sale • More Acreage Properties Needed • Time For Investors To Look At Tax Valuations
CONTINUED P.3
www.prd.net.au
(02) 4732 3711
LETTER FROM THE PRINCIPAL
BACKYARD SALE A HUGE SUCCESS
Dear Readers, It may be just the start of winter, but anyone thinking of selling in Spring really needs to start planning now. Spring is traditionally the peak selling period and it may seem a long way off, but that’s a good thing as there is time to get your home ready so it will show to the best advantage. We are more than happy to go through the home with you, provide a market estimate and give you some tips on the things you need to do to improve your bottom line. Many people are often surprised at how little effort and expense is required to maximise their profit. We are more than happy to take the journey with you. Give us a call today. Kind regards,
Darren Latty Managing Director 0414 620 532
379 High Street, PENRITH NSW 2750 phone:
(02) 4732 3711
fax:
(02) 4732 3283
email:
reception@prd.net.au
web: Disclaimer
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
PRDnationwide Penrith’s unique May 31 auction of properties suitable for granny flats was so successful that another is already being planned. Billed as The Big Backyard Sale, and held in partnership with Ian Cubitt’s Classic Home Improvements and Cooley Auctions, it saw seven out of eight properties sold on the day. More than 70 people attended the night with another large group following the auction in real time and bidding online via bidsonline. One property, at 2 Karuah Rd, Penrith, received more than 30 bids. Another, at 19 Piper Close, Kingswood, sold for $101,000 above the reserve price. Ian Cubitt’s Classic Home Improvements had conducted a feasibility study on each of the properties being offered and a summary of these was available for potential buyers. The event was held at the Granny Flat and Studio display home at 152 Russell St, Emu Plains, a venue that allowed participants to get a real feel for the types of buildings allowed since the NSW Government relaxed planning regulations to eliminate the need for council approval for a two bedroom backyard granny flat on a complying site. Jason Vella, whose Kingswood home sold for $600,000, was delighted with the night. “The price that my property reached was overwhelming. I did not expect it to reach the price that it did,” he said. “This would have not been possible without the team from PRDnationwide Penrith.
Planning Now Underway For Another Sale “I thought that the campaign was a huge success from the way it was advertised to the communication that PRD gave me to the lead up of the auction. “Both Darren and Daniel acted in the most professional way keeping me updated throughout the whole process. “I thought that selling at the auction would give me the best chance of getting the best price. I couldn’t be happier in what PRD have done with the sale of my property,” he said. Stephen Adams, the vendor of 38 Arakoon Avenue, Penrith, was just as delighted: “The big backyard auction was a huge success for me personally. “Even though the day was a little overcast I felt that the venue, the auctioneer and sales personnel at PRDnationwide helped to obtain the best of results. “I have dealt with Daniel Latty for a number of years and his advice for this auction was spot on,” Stephen said. The next Big Backyard Sale is taking place on 12th July, to find out more visit www.bigbackyardsale.com.au.
Acreage properties attracting huge numbers of buyers Seven offers, all above the asking price, recently saw a five acre, Cranebrook property under contract within a week of being listed. It’s a result PRDnationwide Penrith’s Darren Latty believes his team will have no trouble duplicating with the right properties to sell. “The more astute, cashed up buyers have come to realise that on a dollar per square metre basis, acreage can represent real value in the current market,” Darren said. “Naturally, there’s a limited supply of such properties and that means premium prices are being paid.” The agency’s latest sale saw 15 Tadmore Crescent, Cranebrook, fought over by buyers in a very hectic sales week. Seven offers were received, all above the $1.3m price guide. Marketed as a Hidden Gem, the four bedroom, two bathroom property is surrounded by crown land and sits on 5.2 level, arable acres. The four bedroom residence is in immaculate condition with a large formal lounge, separate dining and a lovely open plan family room with sliding door access to the covered entertainment area and near new in ground pool. The property has a 175m frontage.
An outdoor entertaining area and near new inground pool were just the start of a long list of features that made this Cranebrook acreage good value.
There is an electric gate for the residents and huge double gates with a wide drive leading to 19x10m machinery shed with 2x4.8m rollers doors at each end plus a massive carport to the side. For the horse enthusiast there are 17 stables plus 12 miniature horse yards, all with electric fencing. A round yard and training wheel add to the many impressive features.
“When you look at the prices currently being paid for three bedroom homes on 500m2 blocks in the inner western suburbs, it is little wonder Penrith generally is popular. The market’s current enchantment with acreage properties is understandable,” Darren said. He added that owners of such land holdings will be delighted when his team provides estimate of their market value.
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 Manager 0490 461 317
Zain Allam Project Marketing 0410 329 298
Nathan Todd Buyer Manager 0437 609 290
Matt O’Farrell Listing Agent 0430 716 040
Rebecca Perkins Buyer Manager 0414 247 323
Now’s the time to start the ball rolling so that your property report can be completed well in time for the end of the financial year. Whether your investment property is a residential or holiday rental, your real estate agent has the expertise to prepare the reports that are essential if you’re to keep your money rather than sharing it with the Tax Man. Depreciation is a cost you claim on your investment property for the general ‘wear and tear’ of your property. There are two types of property depreciation allowances available: Plant and Equipment refers to items within the building like ovens, dishwashers, carpet, light fittings, blinds etc. Each item has its own rate of depreciation. Building Allowance refers to construction costs of the building itself, such as concrete and brickwork. It only applies to buildings or improvements made after July 18 1985. Both these costs can be offset against your assessable income.
Plant and Equipment
This can be quite complex to calculate. Each item has its own rate of depreciation such as blinds that could have a rate of 20% for 5 years while ovens could have 10% rate for 10 years. But before you even go down the dollars and cents path you need to address the nuts and bolts, enlisting your agent to prepare a report on the items in your property. The more time you allow for this the better, as the agent will need to organise access and a property inspection with the tenant at a time that suits both parties.
Building Allowance
Rex Ellison Director Property Management 0418 201 114
TIME FOR THAT TAX VALUATION
If you know the cost of construction for the entire building or renovations, the tax rates are as follows: • If the building was constructed/renovated between July 18, 1985 and September 15, 1987, depreciation is calculated as 4% of the building cost for 25 years. • If the building was constructed after September 15, 1987, you can claim depreciation of capital works for building and landscaping at a rate of 2.5% for 40 years. Hence, most properties constructed before 1985, cannot claim building allowance unless renovations were made.
Property Depreciation Calculator
The best way to calculate your property depreciation allowance is to have a Quantity Surveyor create a schedule for you. This schedule provides you with your allowances for the next 10-20 years so you only need to obtain it once, if no internal or external changes occur. You can also use a Tax Depreciation Calculator or call your real estate agent to discuss deductions available to you. The allowances indicated on the calculator are estimates only for properties you are about to purchase. The amount indicated would be an estimate of the amount you can deduct. Always check with your accountant as to what deductions you are entitled to and how depreciation will affect your investment property and particular financial situation.
Natalie De Chellis Business Development Manager 0420 371 107
Marnie Fawns Account Manager (02) 4761 6221
Stacey Haughton Property Manager 0432 548 838
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!
Sarah Hosking Leasing Agent 0439 726 878